March 15, 1996
LOGO
To Our Shareholders:
I am pleased to present the January 31, 1996 Semi-Annual Report for the Great
Hall Prime, U.S. Government and Tax-Free Money Market Funds. This report
contains a statement of each Fund's financial condition as of January 31, 1996,
which includes a detailed listing of the portfolio investments, and a statement
of each Fund's operations and changes in net assets for the six month period.
During this period the Federal Reserve reduced short-term interest rates twice
by a total of one half of 1 percent. The Federal Reserve is attempting to
modestly stimulate the economy, whose growth slowed significantly during 1995
The very low inflation rate of the last couple of years has allowed the Federal
Reserve to make these cuts without jeopardizing its goal of price stability.
Because of the short maturities of the investments in the money market funds,
the yields on the Great Hall Money Market Funds declined with the changes in
Federal Reserve policy.
Each of these Funds is managed in accordance with the stringent standards
required by the SEC for money market funds. We managed these Funds to meet the
objectives of prudent investment management, safety of principal, and
liquidity. By emphasizing thorough credit analysis, we have produced
competitive yields without using risky derivatives or other yield-enhancing
devices that would increase the risk of these Funds. This conservative
investment policy has kept the confidence of investors and has helped the Funds
grow to a record $2.5 billion. This growth has benefited our shareholders
because the declining fee schedule has reduced the expense ratio per dollar
invested in the Funds.
Thank you for your continued confidence in us. We will continue to manage
these Funds using the conservative principals and high degree of care that you
have come to expect from us.
Sincerely,
J. Scott Spiker
Chief Executive Officer
Great Hall Investment Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1996
Prime U.S. Government Tax-Free
Money Money Money
(unaudited) Market Fund Market Fund Market Fund
- -------------------------------------------------------------------------------
Assets:
Investments in securities
at market value (note 2),
including repurchase agreements
of $23,600,000; $4,800,000 and $0
respectively (identified cost
$1,933,156,497; $134,157,775 and
$398,215,468 respectively).... $1,933,156,497 $134,157,775 $398,215,468
Cash in bank on
demand deposit................ 137,464 127,511 4,238,019
Organization costs (note 2).... 25,647 13,729 15,857
Accrued interest receivable.... 7,523,101 534,811 2,814,490
Receivable for investment
securities sold............... -- -- 2,680,000
- -------------------------------------------------------------------------------
Total assets................... 1,940,842,709 134,833,826 407,963,834
- -------------------------------------------------------------------------------
Liabilities:
Payable for investment
securities purchased.......... -- -- 2,928,190
Accrued investment
advisory fee.................. 813,399 51,942 167,516
Other accrued expenses......... 835,375 69,665 59,419
- -------------------------------------------------------------------------------
Total liabilities.............. 1,648,774 121,607 3,155,125
- -------------------------------------------------------------------------------
Net assets applicable to
outstanding capital stock..... $1,939,193,935 $134,712,219 $404,808,709
- -------------------------------------------------------------------------------
Represented by:
Capital stock - authorized
100 billion shares of $.01
par value for each Fund,
outstanding 1,939,193,935;
134,712,219 and 404,808,709
shares, respectively.......... $19,391,939 $1,347,122 $4,048,087
Additional paid-in capital..... 1,919,801,996 133,365,097 400,760,622
- -------------------------------------------------------------------------------
Total - representing net
assets applicable
to outstanding
capital stock.............. $1,939,193,935 $134,712,219 $404,808,709
- -------------------------------------------------------------------------------
Net asset value per share
of outstanding capital stock... $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF OPERATIONS
Six months ended January 31, 1996
Prime U.S. Government Tax-Free
Money Money Money
(unaudited) Market Fund Market Fund Market Fund
- -------------------------------------------------------------------------------
Income:
Interest......................... $51,520,673 $3,577,435 $7,198,901
- -------------------------------------------------------------------------------
Expenses (note 4):
Investment advisory fee........... 4,444,006 300,329 956,461
Custodian, accounting and
transfer agent fees............. 237,000 14,000 17,737
Sub-accounting transfer
agent fees...................... 810,725 19,750 37,700
Reports to shareholders.......... 320,000 10,627 12,100
Amortization of
organization costs.............. 17,098 9,154 10,570
Directors' fees.................. 4,500 4,500 4,500
Audit and legal fees............. 75,000 12,500 9,000
Registration fees................ 406,758 43,209 65,722
Administrative................... 51,000 4,000 7,000
Other expenses................... 65,764 5,410 7,837
- -------------------------------------------------------------------------------
Total expenses.................... 6,431,851 423,479 1,128,627
- -------------------------------------------------------------------------------
Investment income - net........... 45,088,822 3,153,956 6,070,274
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations........ $45,088,822 $3,153,956 $6,070,274
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Prime U.S. Government Tax-Free
Money Market Fund Money Market Fund Money Market Fund
- --------------------------------------------------------------------------------------------------------------------------
Six-month Year Six-month Year Six-month Year
period ended Ended period ended Ended period ended Ended
1/31/96 7/31/95 1/31/96 7/31/95 1/31/96 7/31/95
(unaudited) (unaudited) (unaudited)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Investment income,
net................... $45,088,822 $61,075,339 $3,153,956 $4,116,351 $6,070,274 $9,545,242
Net realized gain
on investments........ -- -- -- -- -- 378,871
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from
operations............ 45,088,822 61,075,339 3,153,956 4,116,351 6,070,274 9,924,113
- --------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Investment income --
net.................. (45,088,822) (61,075,339) (3,153,956) (4,116,351) (6,070,274) (9,545,242)
Accumulated net
realized gains....... -- -- -- -- -- (378,871)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions
to shareholders....... (45,088,822) (61,075,339) (3,153,956) (4,116,351) (6,449,145) (9,545,242)
- --------------------------------------------------------------------------------------------------------------------------
Capital share transactions
at net asset value of
$1.00 per share:
Proceeds from
sales............... 483,351,760 913,133,182 89,644,173 209,369,746 203,959,317 361,116,594
Shares issued for
reinvestment of
distributions....... 45,088,822 61,075,339 3,153,956 4,116,351 6,449,145 9,545,242
Payment for shares
redeemed............ (188,171,794) (405,058,503) (80,334,859) (148,052,036) (168,493,948) (283,045,576)
- --------------------------------------------------------------------------------------------------------------------------
Increase in net assets
from capital share
transactions......... 340,268,788 569,150,018 12,463,270 65,434,061 41,914,514 87,616,260
- --------------------------------------------------------------------------------------------------------------------------
Total increase
in net assets......... 340,268,788 569,150,018 12,463,270 65,434,061 41,535,643 87,995,131
- --------------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of period............. 1,598,925,147 1,029,775,129 122,248,949 56,814,888 363,273,066 275,277,935
- --------------------------------------------------------------------------------------------------------------------------
Net assets at end
of period............. $1,939,193,935 $1,598,925,147 $134,712,219 $122,248,949 $404,808,709 $363,273,066
- --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization
Great Hall Investment Funds, Inc. (the Company) was incorporated on June
24, 1991 and is registered under the Investment Company Act of 1940 (as
amended) as an open-end management investment company and presently
includes a series of five funds including Prime Money Market Fund, U.S.
Government Money Market Fund and Tax-Free Money Market Fund (the funds).
The Company's articles of incorporation permit the board of directors to
create additional funds in the future.
2. Summary of Significant Accounting Policies
The significant accounting policies followed by the funds are as follows:
Investments in Securities
Pursuant to Rule 2a-7 of the Investment Company Act of 1940 (as amended),
securities are valued at amortized cost, which approximates market value,
in order to maintain a constant net asset value of $1 per share.
Security transactions are accounted for on the date the securities are
purchased or sold. Interest income, including amortization of discount and
premium, is accrued daily.
Federal Taxes
The funds' policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to shareholders. Therefore, no income tax
provision is required. Each fund is treated as a separate entity for
federal income tax purposes. In addition, on a calendar-year basis, each
fund intends to distribute substantially all of its net investment income
and realized gains, if any, to avoid the payment of any federal excise
taxes.
Distribution to Shareholders
Distribution to shareholders from net investment income are declared daily
and paid monthly through reinvestment in additional shares of the funds at
net asset value or payable in cash.
Organization Costs
Organization expenses were incurred in connection with the start-up and
initial registration of the funds. These costs are being amortized over 60
months on a straight-line basis. If any or all of the shares representing
initial capital of the funds is redeemed by any holder thereof prior to the
end of the amortization period, the proceeds will be reduced by the
unamortized organizational expense balance in the same proportion as the
number of shares redeemed bears to the number of initial shares outstanding
immediately preceding the redemption.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
Repurchase Agreements
Securities pledged as collateral for repurchase agreements are held by the
funds' custodian bank until maturity of the repurchase agreement.
Procedures for all agreements ensure that the daily market value of the
collateral is in excess of the repurchase agreement in the event of
default.
3. Investment Security Transactions
Cost of purchases and proceeds from sales of securities from August 1, 1995
to January 31, 1996 were as follows:
Purchases Sales Proceeds
---------------------------------------------------------------------------
Prime Money Market Fund................ $5,727,257,038 $5,388,512,338
U.S. Government Money Market Fund...... 1,200,031,828 1,187,674,100
Tax-Free Money Market Fund............. 721,476,296 681,940,600
4. Fees and Expenses
The Company has entered into an investment advisory and management
agreement with IFG Asset Management Services, Inc. (AMS), under which AMS
manages each fund's assets and furnishes related office facilities,
equipment, research and personnel. The agreement requires each fund to pay
AMS a monthly fee based upon average daily net assets. The fee for the
Prime Money Market Fund is equal to an annual rate of 0.55% of the first
$700 million in net assets and then decreasing in reduced percentages to
0.40% of net assets in excess of $2 billion. The fee for the U.S.
Government Money Market Fund is equal to an annual rate of 0.50% of the
first $100 million in net assets and then decreasing in reduced percentages
to 0.35% of net assets in excess of $300 million. The fee for the Tax-Free
Money Market Fund is equal to an annual rate of 0.50% of net assets.
Each of the three funds has also entered into sub-accounting agreements
with affiliates Dain Bosworth Incorporated (DBI) and Rauscher Pierce
Refsnes, Inc. (RPR) where each firm performs various transfer and dividend
disbursing agent services. The fee, which is paid monthly to DBI and RPR
for providing such service, is equal to an annual rate of $9.00 per
shareholder account plus certain out-of-pocket expenses. Effective
February 14, 1996, the sub-accounting fee was increased to an annual rate
of $12.00 per shareholder account plus certain out-of-pocket expenses.
In addition to the investment advisory and management fee and the
shareholder account servicing fee, each fund is responsible for paying most
other operating expenses including outside directors' fees and expenses,
custodian fees, registration fees, printing and shareholder reports,
transfer agent fees and expense, legal, auditing and accounting services,
organizational costs, insurance, interest and other miscellaneous expenses.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights
Per share data for a share of capital stock outstanding throughout each
period and selected information for the period are as follows:
<TABLE>
Prime Money
Market Fund
------------------------------------------------------------------------------------------------------
Six-month Period from
period ended Year ended Year ended Year ended 11/1/91
1/31/96 7/31/95 7/31/94 7/31/93 to 7/31/92
(unaudited)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............. $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Income from
investment operations........... 0.03 0.05 0.03 0.03 0.03
Distributions to shareholders
from investment income.......... (0.03) (0.05) (0.03) (0.03) (0.03)
------------------------------------------------------------------------------------------------------
Net asset value, end of period... $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Total return..................... 2.6% 4.9% 2.8% 2.7% 2.9%
Net assets at end
of period (000s omitted)........ $1,939,194 $1,598,925 $1,029,775 $861,670 $834,743
Ratio of expenses to
average daily net assets**...... 0.73%* 0.77% 0.80% 0.78% 0.71%*
Ratio of net investment income
to average daily net assets**... 5.13%* 4.93% 2.81% 2.68% 3.63%*
------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
** Various fund fees and expenses were voluntarily waived or absorbed by
AMS for the Prime Money Market Fund during the periods prior to 1995.
Had the Fund paid all expenses, the ratio of expenses and net
investment income to average daily net assets would have been
0.81%/2.80% for the year ended July 31, 1994, 0.82%/2.64% for the year
ended July 31, 1993, and 0.79%/3.55% for the period ended July 31,
1992.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights (continued)
<TABLE>
U.S. Government Money Market Fund
------------------------------------------------------------------------------------------------------
Six-month Period from
period ended Year ended Year ended Year ended 11/1/91
1/31/96 7/31/95 7/31/94 7/31/93 to 7/31/92
(unaudited)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............. $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Income from
investment operations........... 0.03 0.05 0.03 0.03 0.03
Distributions to shareholders
from investment income.......... (0.03) (0.05) (0.03) (0.03) (0.03)
------------------------------------------------------------------------------------------------------
Net asset value, end of period... $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Total return..................... 2.5% 4.8% 2.7% 2.6% 2.6%
Net assets at end
of period (000s omitted)........ $134,712 $122,249 $56,815 $66,558 $60,834
Ratio of expenses to
average daily net assets**...... 0.68%* 0.73% 0.78% 0.79% 0.76%*
Ratio of net investment income
to average daily net assets**...... 5.06%* 4.94% 2.73% 2.57% 3.47%*
------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
** Various fund fees and expenses were voluntarily waived or absorbed by
AMS for the U.S. Government Money Market Fund during the period ended
July 31, 1992. Had the Fund paid all expenses, the ratio of expenses
and net investment income to average daily net assets would have been
0.79%/3.44% for the period.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Financial Highlights (continued)
<TABLE>
Tax-Free Money Market Fund
------------------------------------------------------------------------------------------------------
Six-month Period from
period ended Year ended Year ended Year ended 11/1/91
1/31/96 7/31/95 7/31/94 7/31/93 to 7/31/92
(unaudited)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period............. $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Income from
investment operations........... 0.02 0.03 0.02 0.02 0.02
Distributions to shareholders
from investment income.......... (0.02) (0.03) (0.02) (0.02) (0.02)
------------------------------------------------------------------------------------------------------
Net asset value, end of period... $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------------------
Total return..................... 1.6% 3.1% 2.0% 2.1% 2.2%
Net assets at end
of period (000s omitted)........ $404,809 $363,273 $275,278 $209,469 $187,205
Ratio of expenses to
average daily net assets**...... 0.59%* 0.60% 0.65% 0.67% 0.62%*
Ratio of net investment income
to average daily net assets**... 3.18%* 3.14% 1.98% 2.09% 2.81%
------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
** Various fund fees and expenses were voluntarily waived or absorbed by
AMS for the Tax-Free Money Market Fund during the period ended July 31,
1992. Had the Fund paid all expenses, the ratio of expenses and net
investment income to average daily net assets would have been
0.65%/2.78% for the period.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1996
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Commercial Paper & Other Corporate Obligations (89.68%):
- -------------------------------------------------------------------------------
Agricultural Products (1.29%)
Cargill Inc., 5.40%, 3/27/96 $10,000,000 $9,917,500
Cargill Financial Services, Inc.,
5.62%, 3/18/96 15,200,000 (d) 15,093,781
-----------
25,011,281
-----------
Banks - Domestic (11.52%)
AES Barbers Point, Inc., 5.67%,
2/9/96, LOC Bank of America 10,000,000 9,987,400
Bank of America, 5.74%, 2/9/96 10,000,000 10,000,000
Bank of America, Bankers Acceptance
5.35%, 4/30/96 7,000,000 6,907,415
5.38%, 3/28/96 5,000,000 4,958,155
Chemical Bank, Bankers Acceptance
5.52%, 3/29/96 7,350,000 7,285,761
5.28%, 5/20/96-5/21/96 6,250,000 6,149,819
Comerica Bank, Detroit
5.78%, 9/3/96 10,000,000 9,991,450
5.33%, 4/12/96 10,000,000 (e) 9,998,633
Commed Fuel Co., Inc., 5.57%, 3/8/96,
LOC First National Bank of Chicago 7,859,000 7,815,225
First Bank, Minneapolis, N.A., 5.65%, 2/6/96 3,000,000 2,997,646
First Bank National Association, 5.58%, 4/12/96 10,000,000 (f) 10,000,000
First National Bank of Chicago,
Bankers Acceptance, 5.35%, 4/2/96 7,500,000 7,432,010
Midwest Commercial Paper, Inc., 5.40%, 4/17/96,
LOC First Bank, Minneapolis, N.A. 4,500,000 4,448,700
National Bank of Detroit
5.45%, 4/3/96 15,000,000 14,999,236
5.47%, 3/4/96 15,000,000 14,999,714
Nations Bank, N.A. (Carolinas), 5.42%, 4/8/96 9,000,000 9,000,000
Nations Bank, Texas
5.52%, 6/3/96 6,000,000 6,000,000
5.41%, 4/12/96 18,000,000 18,000,000
Norwest Corporation
5.60%, 2/22/96 15,000,000 14,951,000
5.42%, 3/15/96 20,000,000 19,870,522
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Banks - Domestic (continued)
Wachovia Bank, North Carolina
5.39%, 4/18/96 $17,000,000 $17,000,000
5.56%, 5/31/96 5,000,000 (f) 5,000,000
Wachovia Bank of Georgia, N.A.,
Bankers Acceptance, 5.35, 3/19/96 5,747,975 5,707,827
-----------
223,500,513
-----------
Banks - Other (18.28%)
ABN - AMRO
5.35%, 4/9/96 16,000,000 15,838,311
5.22%, 6/10/96 4,500,000 4,415,175
ABN - AMRO North America Finance, Inc.
5.25%, 5/20/96 8,000,000 7,872,833
5.69%, 2/5/96 10,000,000 9,993,678
Accor S.A.
5.69%, 2/15/96, LOC Banque Nationale De Paris 7,000,000 6,984,511
5.65%, 2/21/96, LOC Banque Nationale De Paris 10,000,000 9,968,611
Bank of Nova Scotia
6.60%, 4/3/96 20,000,000 20,022,815
5.70%, 2/1/96 5,000,000 (d) 5,000,000
5.35%, 3/25/96 15,000,000 (d) 14,881,854
Banque Nationale De Paris
5.43%, 4/4/96 10,000,000 10,000,690
5.42%, 3/4/96 10,000,000 10,000,236
Deutsche Bank, 5.38%, 4/18/96 20,000,000 20,013,330
Enterprise Capital Funding Corporation, 5.55%,
2/16/96, LOC Swiss Bank 8,000,000 (d) 7,981,500
FPL Fuels, Inc., 5.35%, 4/1/96,
LOC Barclays Bank 19,171,000 19,000,059
National Westminster Bank, 5.71%, 2/16/96 15,000,000 14,999,932
Pemex Capital, Inc.
5.45%, 3/6/96, LOC Credit Suisse 10,000,000 9,948,528
5.66%, 2/6/96, LOC Swiss Bank 23,000,000 22,981,864
5.35%, 4/16/96, LOC Swiss Bank 5,000,000 4,944,271
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Banks - Other (continued)
Royal Bank of Canada
5.20%, 6/6/96 $10,000,000 $9,818,000
5.77%, 2/9/96 11,000,000 10,999,916
5.33%, 6/3/96 20,000,000 20,001,126
Sinochem American, Inc.
5.37%, 3/22/96, LOC Credit Suisse 10,000,000 9,925,417
5.73%, 2/2/96, LOC Credit Suisse 6,700,000 6,698,934
5.37%, 3/29/96, LOC Credit Suisse 5,000,000 4,957,487
Societe Generale
5.42%, 3/4/96 5,000,000 5,000,354
5.40%, 4/5/96 10,000,000 10,000,176
5.71%, 3/4/96 10,000,000 10,000,175
Southwest Gas Corporation
5.65%, 2/23/96, LOC Union Bank of Switzerland 15,000,000 14,948,208
5.68%, 2/6/96, LOC Union Bank of Switzerland 5,537,000 5,532,632
Toronto Dominion Holdings, Inc.
5.65%, 2/26/96 10,000,000 9,960,764
5.40%, 3/11/96 15,000,000 14,912,250
5.38%, 4/1/96 7,000,000 6,937,233
-----------
354,540,870
-----------
Business Machines (1.00%)
Xerox Credit Corporation, 5.65%, 2/12/96 5,500,000 5,490,505
Xerox Corporation, 5.40%, 3/8/96 14,000,000 13,924,400
-----------
19,414,905
-----------
Chemicals (2.10%)
Monsanto Company
5.37%, 3/11/96 14,200,000 (d) 14,117,392
5.10%, 5/30/96 10,000,000 9,831,417
5.15%, 5/7/96 6,650,000 6,558,673
5.37%, 3/25/96 10,210,000 10,129,281
-----------
40,636,763
-----------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Conglomerates (4.18%)
American Brands, 5.27%, 4/23/96 $15,000,000 (d) $14,819,942
Pacific Dunlop Holdings, Inc.
5.50%, 3/29/96 4,422,000 (d) 4,383,492
5.53%, 3/22/96 13,000,000 (d) 12,900,153
5.68%, 2/14/96 8,000,000 (d) 7,983,591
5.70%, 2/22/96-2/23/96 24,000,000 (d) 23,920,125
Phillip Morris Companies, Inc.
7.00%, 3/8/96 2,000,000 2,002,984
5.76%, 7/1/96-12/1/96 12,220,000 12,452,052
5.91%, 9/24/96 2,620,000 2,650,768
-----------
81,113,107
-----------
Drugs & Cosmetics (0.52%)
Eli Lilly & Company, 5.70%, 2/7/96 10,000,000 9,990,500
-----------
Financial - Auto (2.94%)
Ford Motor Credit Corporation
6.81%, 5/1/96 500,000 503,713
6.60%, 5/1/96 1,000,000 1,005,450
5.86%, 10/7/96 300,000 (g) 300,313
6.00%, 10/1/96 3,420,000 3,463,123
5.91%, 3/15/96 1,300,000 1,304,342
6.08%, 6/17/96 1,000,000 (g) 1,000,888
5.86%, 6/20/96 1,000,000 1,012,211
5.85%, 5/3/96 1,100,000 1,110,851
5.79%, 12/1/96 2,000,000 2,035,112
5.57%, 3/1/96 12,000,000 11,946,157
5.40%, 4/10/96 10,000,000 9,896,500
6.18%, 5/10/96 1,550,000 (g) 1,551,008
Toyota Motor Credit Corporation
5.45%, 2/20/96 12,000,000 11,965,483
5.34%, 3/22/96 10,000,000 9,925,833
-----------
57,020,984
-----------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Financial - Diversified Business (28.53%)
American General Finance Corporation
5.54%, 2/16/96 $20,000,000 $19,953,833
5.52%, 4/3/96 10,000,000 9,904,933
5.88%, 6/15/96 1,000,000 996,890
6.47%, 3/5/96 2,000,000 2,004,937
Ameritech Capital Corporation, 5.55%, 2/12/96 5,000,000 (d) 4,991,521
Asset Securitization Coop. Corporation
5.35%, 4/24/96 15,000,000 (d) 14,814,979
5.40%, 3/20/96 10,000,000 (d) 9,928,000
5.33%, 4/3/96 15,000,000 (d) 14,862,308
Associates Corporation of North America
6.00%, 2/1/96 1,000,000 1,000,000
6.90%, 3/1/96 1,750,000 1,753,277
5.42%, 10/15/96 2,000,000 2,028,125
5.37%, 1/15/97 3,100,000 3,142,690
7.50%, 2/15/96 300,000 299,674
5.44%, 11/30/96 1,700,000 1,688,917
Avco Financial Services
5.69%, 2/2/96 15,000,000 14,997,629
5.28%, 11/15/96 1,000,000 1,016,726
5.68%, 2/12/96 5,000,000 4,991,322
5.33%, 3/26/96 10,000,000 9,919,900
5.34%, 3/27/96 6,000,000 5,951,050
Barton Capital Corporation
5.78%, 2/5/96 7,000,000 (d) 6,995,504
5.63%, 2/29/96 15,000,000 (d) 14,934,317
5.78%, 2/8/96 11,289,000 (d) 11,276,312
5.41%, 3/22/96 7,000,000 (d) 6,947,403
Beneficial Corporation
5.43%, 4/1/96 20,000,000 19,819,000
6.63%, 2/7/96 2,000,000 2,000,889
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Financial - Diversified Business (continued)
CIT Group Holdings
5.70%, 2/9/96 $10,000,000 $9,987,333
5.41%, 3/14/96 20,000,000 19,873,767
7.55%, 2/15/96 1,828,000 1,829,642
6.67%, 3/15/96 1,125,000 1,122,567
Falcon Asset Securitization
5.70%, 2/2/96 5,000,000 (d) 4,999,208
5.65%, 2/8/96 8,075,000 (d) 8,066,129
Fleet Funding Corporation
5.42%, 3/7/96 18,000,000 (d) 17,905,150
5.70%, 2/15/96 25,311,000 (d) 25,254,894
General Electric Capital Corporation
6.13%, 2/16/96 15,000,000 (h) 14,999,840
5.95%, 5/1/96 9,995,000 10,058,289
Household Finance Company
5.90%, 2/15/96 5,000,000 5,006,408
5.41%, 8/15/96 1,000,000 (e) 999,468
Merrill Lynch & Co.
5.69%, 10/30/96 10,000,000 (g) 10,000,000
6.74%, 3/18/96 3,500,000 3,500,686
5.55%, 6/24/96 2,500,000 2,492,125
5.78%, 12/15/96 2,200,000 2,194,035
5.79%, 9/19/96 10,000,000 (I) 9,999,369
5.61%, 10/9/96 2,500,000 (f) 2,500,311
5.92%, 7/1/96 10,000,000 (I) 10,000,000
Morgan Stanley & Company
6.08%, 2/10/97 1,000,000 (g) 1,001,795
5.45%, 3/25/96 15,000,000 14,879,646
5.42%, 3/29/96 10,000,000 9,914,183
5.55%, 2/26/96 8,000,000 7,969,167
5.75%, 1/20/97 1,000,000 (g) 1,001,676
Preferred Receivables Funding Corporation,
5.28%, 4/25/96 20,000,000 19,753,600
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Financial - Diversified Business (continued)
Receivables Capital Corporation
5.26%, 4/29/96 $9,000,000 (d) $8,884,280
5.66%, 2/20/96 5,500,000 (d) 5,483,570
5.37%, 4/12/96 23,000,000 (d) 22,756,411
5.40%, 4/19/96 5,000,000 (d) 4,941,500
5.35%, 4/16/96 7,000,000 (d) 6,921,979
Transamerica Finance Corporation
5.40%, 4/4/96-4/12/96 17,500,000 17,324,425
5.68%, 2/23/96 10,000,000 9,965,289
5.38%, 3/28/96 10,000,000 9,916,311
5.44%, 3/8/96 3,000,000 2,983,680
Triple A One Funding, 5.33%, 4/9/96 14,461,000 14,315,410
Triple A One Plus
Funding Corporation, 5.68%, 2/12/96 16,515,000 16,486,198
Windmill Funding Corporation
5.27%, 4/26/96 10,000,000 (d) 9,875,570
5.48%, 2/26/96 7,049,000 (d) 7,022,175
5.43%, 3/14/96 15,000,000 (d) 14,904,975
-----------
553,311,197
-----------
Food & Beverage (4.19%)
CPC International
5.63%, 3/22/96 7,600,000 (d) 7,540,572
5.30%, 5/9/96 6,000,000 (d) 5,913,434
5.22%, 6/11/96 20,000,000 (d) 19,620,100
PepsiCo Incorporated, 5.38%, 3/4/96 8,500,000 (d) 8,459,351
Sara Lee Corporation, 5.36%, 3/27/96 20,000,000 19,836,222
Sysco Corporation
5.67%, 2/5/96 10,000,000 9,993,700
5.41%, 3/12/96 10,000,000 9,939,889
-----------
81,303,268
-----------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Household Products (0.46%)
Colgate-Palmolive, 5.60%, 3/8/96 $8,000,000 $7,955,200
Gillette Company, 5.85%, 8/15/96 1,000,000 994,281
-----------
8,949,481
-----------
Medical and Health Care (0.05%)
Becton Dickinson & Co., 5.88%, 6/1/96 1,000,000 1,007,905
-----------
Municipals (4.53%):
Bedford County Virginia Industrial Development Authority
5.85%, 12/1/25, LOC Canadian Imperial
Bank of Commerce 15,000,000 (b) 15,000,000
5.85%, 12/1/25, LOC Societe Generale 8,000,000 (b) 8,000,000
New York City, New York G.O.
5.95%, 8/15/22, General Electric
Capital Corp. Insured 10,000,000 (b) 10,000,000
5.75%, 8/15/22, General Electric
Capital Corp. Insured 15,430,000 (b) 15,430,000
Oakland Alameda County Stadium, CA
5.68%, 3/1/96,
LOC Canadian Imperial Bank of Commerce 10,000,000 10,000,000
5.54%, 3/19/96,
LOC Canadian Imperial Bank of Commerce 5,000,000 5,000,000
Siouxland Regional Cancer Center, IA, 5.74%,
12/1/14, Municipal Bond
Insurance Association Insured 4,500,000 (b) 4,500,000
West Baton Rouge, LA, Ind. Dev. (Dow Chemical Co.)
5.82%, 11/1/25 10,000,000 (b) 10,000,000
5.67%, 11/1/25 10,000,000 (b) 10,000,000
-----------
87,930,000
-----------
Oil Services (1.83%)
Exxon Capital Corporation
6.50%, 2/14/96 15,000,000 15,006,278
6.53%, 4/15/96 12,000,000 12,042,064
Texaco Capital Corp., 5.73%, 11/15/96 8,170,000 8,371,137
-----------
35,419,479
-----------
Printing & Publishing (0.91%)
McGraw-Hill, Inc.
5.50%, 4/11/96 7,700,000 7,617,653
5.67%, 2/21/96 10,000,000 9,968,500
-----------
17,586,153
-----------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Retail Stores (1.25%)
Dillard Department Stores, 5.90%, 6/15/96 $6,150,000 $6,206,541
J.C. Penney Funding, Inc., 5.58%, 3/14/96 5,000,000 4,967,450
Nordstrom Credit Corp., 5.63%, 2/7/96 13,000,000 12,987,802
-----------
24,161,793
-----------
Trucking (0.31%)
United Parcel Service of America, 5.43%, 3/1/96 6,000,000 5,973,755
-----------
Utilities - Electric (1.85%)
Baltimore Gas & Electric Company
5.44%, 2/5/96 3,000,000 2,998,187
5.37%, 3/7/96 16,000,000 15,916,467
Carolina Power & Light, 5.70%, 12/27/96 1,000,000 1,019,067
Southern California Edison, 5.24%, 6/10/96 6,000,000 5,886,467
Union Electric Company, 5.50%, 2/7/96 10,000,000 9,990,833
-----------
35,811,021
-----------
Utilities - Telephone (3.94%)
American Telephone & Telegraph Company
5.42%, 4/9/96 4,600,000 (d) 4,552,906
5.26%, 6/10/96 10,000,000 (d) 9,810,056
5.62%, 4/19/96 1,000,000 (h) 1,000,217
Ameritech Capital Funding
5.53%, 2/20/96 15,000,000 (d) 14,956,221
5.34%, 3/18/96 9,200,000 (d) 9,137,225
5.58%, 2/26/96 10,000,000 (d) 9,961,250
Bellsouth Telecommunications, 5.65%, 2/13/96 15,000,000 14,971,750
Southwestern Bell Telephone, 5.55%, 6/1/96 905,000 912,891
Southwestern Bell Capital Corporation
5.85%, 8/23/96 5,000,000 5,055,558
5.33%, 3/4/96 6,000,000 (d) 5,971,573
-----------
76,329,647
- -------------------------------------------------------------------------------
Total Commercial Paper & Other
Corporate Obligations (cost: $1,739,012,622) $1,739,012,622
- -------------------------------------------------------------------------------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Government & Agencies Securities (8.79%)
- -------------------------------------------------------------------------------
Downey Savings & Loan Assoc., 5.23%, 4/22/96,
LOC Federal Home Loan Bank $10,000,000 $9,882,325
Federal Farm Credit Bank
5.45%, 2/7/96 10,000,000 9,990,700
5.29%, 12/2/96 10,000,000 (j) 9,996,734
5.54%, 2/22/96 9,000,000 (k) 8,998,559
Federal Home Loan Mortgage Corp.
5.78%, 5/13/96 5,000,000 5,005,592
5.60%, 2/8/96 25,000,000 24,972,865
Federal National Mortgage Association
5.23%, 4/12/96 5,000,000 4,948,426
6.55%, 3/1/96 5,000,000 4,992,432
6.54%, 3/27/96 4,000,000 3,999,530
5.80%, 2/28/96 2,000,000 2,001,296
5.76%, 9/27/96 20,000,000 (h) 20,000,000
New Hampshire Higher Education Loan Corp.,
5.72%, 2/13/96, LOC Student Loan
Marketing Association 13,878,000 13,851,539
Private Export Funding Corp., 5.16%, 1/31/97 3,000,000 3,072,855
Secondary Market Services
5.37%, 3/13/96,
LOC Student Loan Marketing Assoc. 9,275,000 9,218,276
5.42%, 3/5/96,
LOC Student Loan Marketing Assoc. 32,499,000 32,337,474
Student Loan Marketing Association
5.31%, 7/19/96 5,000,000 (e) 4,998,882
5.54%, 11/27/96 2,275,000 (e) 2,276,390
- -------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $170,543,875) $170,543,875
- -------------------------------------------------------------------------------
Repurchase Agreement (1.22%):
- -------------------------------------------------------------------------------
First Chicago, 5.83%, acquired 1/31/96
and due 2/1/96 with accrued interest of
$3,822 (collateralized by $24,087,147 U.S.
Treasury Notes, 6.88%, 3/31/97)
(cost: $23,600,000) 23,600,000 23,600,000
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $1,933,156,497) (c) $1,933,156,497
- -------------------------------------------------------------------------------
See accompanying notes to investments in securities.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (continued)
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on January 31, 1996. The maturity date shown
represents final maturity. However, for purposes of Rule 2a-7, maturity
is the next interest rate reset date at which time the security can be put
back to the issuer.
(c) Also represents cost for federal income tax purposes.
(d) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under section 4(2) of the Securities Act of 1933,
as amended, and may be sold only to dealers in that program or other
"accredited investors." These securities have been determined to be
liquid under guidelines established by the Board of Directors.
(e) Interest rate resets weekly based on 3 month Treasury Bill plus a select
number of basis points.
(f) Interest rate resets monthly based on 1 month LIBOR plus or minus a select
number of basis points.
(g) Interest rate resets quarterly based on 3 month LIBOR plus a select number
of basis points.
(h) Interest rate resets daily based on Federal Funds effective rate plus a
select number of basis points.
(i) Interest rate resets quarterly based on 3 month LIBOR less a select number
of basis points.
(j) Interest rate resets monthly based on 3 month Treasury Bill plus a select
number of basis points.
(k) Interest rate resets quarterly based on 3 month Treasury Bill plus select
number of basis points.
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1996
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Federal Home Loan Mortgage Corporation Notes (23.70%)
5.24%, 4/1/96 $3,200,000 $3,172,053
5.30%, 3/26/96 2,300,000 2,281,715
5.27%, 4/4/96 3,700,000 3,665,877
5.33%, 3/4/96 3,800,000 3,781,996
5.30%, 3/25/96 1,040,000 1,031,885
5.30%, 3/13/96 3,960,000 3,936,097
5.57%, 2/6/96 2,000,000 1,998,454
5.44%, 2/14/96 2,000,000 1,996,071
5.55%, 2/1/96 2,467,000 2,467,000
5.55%, 2/5/96 2,500,000 2,498,458
5.55%, 2/16/96 2,000,000 1,995,375
5.50%, 2/26/96 1,500,000 1,494,271
5.60%, 2/8/96 122,000 121,868
5.15%, 4/30/96 1,500,000 1,480,902
-----------
31,922,022
-----------
Federal National Mortgage Corporation Notes (23.77%)
5.33%, 3/12/96 3,000,000 2,982,233
5.18%, 5/7/96 2,000,000 1,972,373
5.30%, 3/28/96 2,000,000 1,983,511
5.08%, 5/2/96 2,000,000 1,974,318
5.56%, 2/12/96 2,000,000 1,996,602
5.49%, 3/8/96 2,400,000 2,386,824
5.53%, 2/20/96 2,000,000 1,994,163
5.41%, 2/29/96 1,500,000 1,493,688
5.51%, 2/28/96 1,110,000 1,105,413
5.55%, 2/2/96 3,990,000 3,989,387
6.54%, 3/27/96 1,120,000 1,119,911
5.80%, 2/28/96 1,045,000 1,045,677
5.76%, 9/27/96 3,000,000 (c) 3,000,000
5.33%, 3/12/96 5,000,000 4,970,389
-----------
32,014,489
-----------
See accompanying notes to investments in securities.
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Federal Farm Credit Bank Notes (20.83%)
4.25%, 4/22/96 $1,000,000 $996,943
5.65%, 5/24/96 6,000,000 (d) 5,999,814
5.42%, 4/17/96 1,000,000 1,001,804
6.50%, 4/1/96 1,000,000 1,001,353
5.32%, 4/1/96 2,550,000 2,549,643
5.32%, 3/1/96 3,000,000 2,987,143
5.45%, 2/7/96 1,000,000 999,092
5.29%, 12/2/96 5,000,000 (e) 4,998,367
5.65%, 8/12/96 5,000,000 (d) 4,998,951
5.53%, 3/22/96 2,550,000 2,530,415
-----------
28,063,525
-----------
Federal Home Loan Bank Notes (15.88%)
5.31%, 3/28/96 1,800,000 1,785,132
5.57%, 2/7/96 2,100,000 2,098,051
5.35%, 5/28/96 1,000,000 997,345
5.68%, 6/3/96 5,000,000 (d) 5,000,164
5.36%, 3/25/96 500,000 501,894
5.39%, 5/27/96 1,000,000 1,008,766
6.79%, 2/15/96 500,000 500,100
5.30%, 3/8/96 1,280,000 1,273,216
5.23%, 4/11/96 4,000,000 3,959,322
5.45%, 2/2/96 780,000 779,882
5.38%, 12/16/96 1,000,000 993,276
5.45%, 2/5/96 2,500,000 2,498,486
-----------
21,395,634
-----------
Student Loan Marketing Association Notes (5.20%)
6.49%, 2/21/96 1,000,000 1,000,227
5.54%, 11/27/96 200,000 (f) 200,084
5.31%, 7/19/96 2,600,000 (f) 2,599,363
5.59%, 2/14/97 950,000 (f) 951,017
5.61%, 8/22/96 2,250,000 (f) 2,252,780
-----------
7,003,471
-----------
See accompanying notes to investments in securities.
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Tennessee Valley Authority (6.65%)
5.08%, 5/3/96 $2,000,000 $1,974,036
5.37%, 2/20/96 5,000,000 4,985,829
5.54%, 2/5/96 2,000,000 1,998,769
-----------
8,958,634
- -------------------------------------------------------------------------------
Repurchase Agreement (3.56%)
- -------------------------------------------------------------------------------
First Chicago, 5.83%, acquired 01/31/96
and due 02/01/96 with accrued interest
of $777 (collateralized by $4,898,904
U.S. Treasury Bill, 6.88%, 03/31/97)
(cost: $4,800,000) 4,800,000 4,800,000
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $134,157,775) (b) $134,157,775
- -------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Also represents cost for federal income tax purposes.
(c) Interest rate resets daily based on Federal Funds effective rate plus a
select number of basis points.
(d) Interest rate resets quarterly based on 3 month Treasury Bill plus a
select number of basis points.
(e) Interest rate resets monthly based on 3 month Treasury Bill plus a select
number of basis points.
(f) Interest rate resets weekly based on 3 month Treasury Bill plus a select
number of basis points.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1996
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Alaska (0.79%)
Anchorage G.O. School Refunding, 3.80%,
10/1/96, FGIC Insured $1,585,000 $1,583,918
North Slope Boro Capital Appreciation Refunding
Series 1, 3.60%, 6/30/96, MBIA Insured 1,655,000 1,630,861
-----------
3,214,779
-----------
Arizona (1.04%)
Maricopa County PCR Series 1994B, 3.70%,
5/1/29, LOC Morgan Guaranty Trust 4,200,000 (b) 4,200,000
-----------
California (3.22%)
Los Angeles Regional Airports Improvement
Corp. Lease Revenue Series 1985, 3.75%,
12/1/25, LOC Societe Generale 300,000 (b) 300,000
Series 1984D, 3.75%, 12/1/24,
LOC Wachovia Bank of Georgia 500,000 (b) 500,000
Series A, 3.75%, 12/1/24,
LOC Wachovia Bank of Georgia 700,000 (b) 700,000
Series B, 3.75%, 12/1/24,
LOC Wachovia Bank of Georgia 100,000 (b) 100,000
Series L, 3.75%, 12/1/24,
LOC Wachovia Bank of Georgia 400,000 (b) 400,000
School Cash Reserve Program Authority
1995 Pool Bond Series A, 3.75%, 7/3/96 11,000,000 11,041,247
-----------
13,041,247
-----------
Colorado (4.32%)
Adams County Family Housing Revenue
(Hunters Cove Project) Series 1985A,
3.65%, 1/15/14, LOC GECC 7,500,000 (b) 7,500,000
Eagle County Revenue Bonds Series 1995,
3.20%, 10/1/35, LOC Nationsbank Texas N.A. 6,000,000 (b) 6,000,000
Health Facilities Authority Revenue
(Sisters of Charity Health), 3.10%, 5/15/25,
LOC Toronto Dominion Bank 4,000,000 (b) 4,000,000
-----------
17,500,000
-----------
Delaware (0.25%)
State of Delaware G.O. Series A, 3.55%, 3/1/96 1,000,000 1,000,810
-----------
District of Columbia (2.27%)
Washington D.C. G.O.
Series A-1, 3.85%, 10/1/07,
LOC National Westminster 2,900,000 (b) 2,900,000
Series A-2, 3.85%, 10/1/07,
LOC Bank of Nova Scotia 600,000 (b) 600,000
Series A-3, 3.85%, 10/1/07,
LOC Toronto Dominion Bank 2,800,000 (b) 2,800,000
-----------
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
District of Columbia (continued)
Series A-4, 3.85%, 10/1/07,
LOC Toronto Dominion Bank $1,200,000 (b) $1,200,000
Series A-5, 3.85%, 10/1/07,
LOC Bank of Nova Scotia 100,000 (b) 100,000
Series A-6, 3.85%, 10/1/07,
LOC National Westminster 1,600,000 (b) 1,600,000
-----------
9,200,000
-----------
Florida (5.35%)
City of Orlando, 3.45%, 2/15/96 7,400,000 7,400,000
City of Orlando Capital Improvement Notes,
3.60%, 3/7/96 2,100,000 2,100,000
Housing Finance Authority MFHR Bonds
(Oaks-Orange Park), 3.21%, 7/1/07,
LOC Chemical Bank 2,640,000 (b) 2,640,000
Jacksonville Electric Authority
(Electric System Notes), 3.45%, 2/6/96 1,000,000 1,000,000
Jacksonville Electric Authority
(Electric System Notes), 3.40%, 2/16/96 3,500,000 3,500,000
Jacksonville Electric Authority
(Electric System Notes), 3.40%, 2/14/96,
LOC Credit Suisse 5,000,000 5,000,000
-----------
21,640,000
-----------
Georgia (1.96%)
Clayton County Housing Authority
Multi-Family Revenue Bonds Series 1990,
3.10%, 1/1/21, FSA Insured 2,215,000 (b) 2,215,000
Cobb County Marietta Water Authority
Revenue Bonds, 3.60%, 11/1/96 1,000,000 1,021,720
College Park Business & Industrial
Development Authority Series 1985, 3.70%,
08/01/15, LOC Bank of Nova Scotia 4,700,000 (b) 4,700,000
-----------
7,936,720
-----------
Hawaii (3.11%)
Honolulu City & County
3.20%, 2/5/96,
LOC Canadian Imperial Bank of Commerce 2,500,000 2,500,000
3.50%, 3/8/96,
LOC Canadian Imperial Bank of Commerce 2,500,000 2,500,000
3.35%, 2/2/96,
LOC Canadian Imperial Bank of Commerce 2,600,000 2,600,000
3.40%, 2/16/96,
LOC Canadian Imperial Bank of Commerce 5,000,000 5,000,000
-----------
12,600,000
-----------
Illinois (9.14%)
City of Springfield Community Improvement
Revenue Bonds (Realing Restoration Project)
Series 1985, 3.50%, 12/1/15 3,400,000 (b) 3,400,000
City of Springfield MFHR
(OT Center Limited Project), 3.45%, 12/1/15 7,700,000 (b) 7,700,000
Development Finance Authority
(A.E. Stanley Manufacturing), 3.05%, 12/1/05,
LOC Union Bank of Switzerland 1,600,000 (b) 1,600,000
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Illinois (continued)
Development Finance Authority
(Latin School of Chicago), 4.00%, 6/1/30,
LOC Bank of America $5,000,000 (b) $5,000,000
Education Facilities Authority
Demand Revenue Bonds, 3.25%, 12/1/25,
LOC First National Bank of Chicago 1,100,000 (b) 1,100,000
Health Facilities Authority Demand Revenue Bonds
Series 1985B, 3.30%, 11/1/15,
LOC First National Bank of Chicago 7,400,000 (b) 7,400,000
Series 1985B, 3.30%, 1/1/16,
LOC First National Bank of Chicago 1,500,000 (b) 1,500,000
State Toll Highway Authority Revenue Bonds
Series 1993B, 3.05%, 1/1/10, MBIA Insured 3,300,000 (b) 3,300,000
State Revenue Anticipation Certificates
3.50%, 6/10/96 1,000,000 1,003,300
4.50%, 5/10/96 5,000,000 5,009,882
-----------
37,013,182
-----------
Indiana (1.16%)
Hospital Equipment Finance Authority Revenue
Series 1985A, 3.30%, 12/1/15, MBIA Insured 4,700,000 (b) 4,700,000
-----------
Iowa (5.74%)
Cedar Rapids Hospital Facilities Revenue,
3.75%, 8/15/96, FGIC Insured 1,000,000 1,004,151
Chillicothe PCR Bonds Series B, 3.85%,
3/1/00, LOC Swiss Bank 1,000,000 (b) 1,000,000
Iowa School Corporation (Iowa Cash Anticipation Notes)
Series 1995-1996A, 3.85%, 6/28/96,
Capital Guaranty Insured 5,000,000 5,017,509
Series 1995-1996B, 3.75%, 2/1/96,
Capital Guaranty Insured 1,500,000 1,500,000
Series 1995-1996B, 3.40%, 1/30/97,
Capital Guaranty Insured 1,000,000 1,008,190
Le Claire Electric Revenue
Series 1986, 3.80%, 9/1/26 4,815,000 (b) 4,823,522
Series 1986B, 4.10%, 9/1/26 250,000 (b) 250,027
Mount Vernon Private College Project (Cornell)
Series 1985, 3.45%, 10/1/15,
LOC First Bank Minneapolis, NA 2,200,000 (b) 2,200,000
Polk County Hospital Revenue Bonds,
3.10%, 12/1/05, MBIA Insured 6,425,000 (b) 6,425,000
-----------
23,228,399
-----------
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Kansas (1.93%)
City of Burlington PCR
Series 1985B, 3.25%, 9/1/15,
LOC Societe Generale $1,500,000 (b) $1,500,000
Series 1985B, 3.20%, 9/1/15,
LOC Societe Generale 4,000,000 (b) 4,000,000
Series 1985A, 3.20%, 9/1/15,
LOC Toronto Dominion 2,300,000 (b) 2,300,000
-----------
7,800,000
-----------
Louisiana (0.25%)
Rapides Parish PCR (Central Louisiana
Electric Co. Project), 3.05%, 7/1/18,
LOC Swiss Bank 1,000,000 (b) 1,000,000
-----------
Maine (1.42%)
State of Maine G.O.
Tax Anticipation Notes, 4.50%, 6/28/96 5,750,000 5,766,887
-----------
Maryland (3.24%)
Anne Arundal County (Baltimore Gas & Electric),
3.55%, 6/1/13 9,000,000 (b) 9,000,000
Montgomery County Housing Opportunity,
3.35%, 11/1/07, LOC GECC 2,000,000 (b) 2,000,000
Montgomery County Public Improvement
Series A-1, 3.40%, 7/1/07 2,100,000 (b) 2,100,000
-----------
13,100,000
-----------
Michigan (2.14%)
Kalamazoo HFA, 3.40%, 6/1/96,
LOC National Bank of Detroit 7,650,000 (b) 7,650,000
State Strategic Fund PCR
(Dow Chemical Company), 3.30%, 8/1/03 1,000,000 (b) 1,000,000
-----------
8,650,000
-----------
Minnesota (4.95%)
Beltrami County Environmental Control Revenue Bond
Series 1991, 3.50%, 12/01/21,
LOC Union Bank of Switzerland 600,000 (b) 600,000
Duluth G.O. Series 1995B, 4.50%, 9/30/96 5,000,000 5,017,361
Minneapolis CDA, 3.20%, 6/15/06,
LOC First Bank Minneapolis, NA 3,000,000 (b) 3,000,000
St. Paul Housing & Redevelopment Authority,
3.80%, 9/1/96, AMBAC Insured 2,000,000 1,997,139
State Housing Finance Agency SFMR
Series 1986A, 3.55%, 8/1/11 1,920,000 (b) 1,920,000
State of Minnesota G.O.
Refunding, 3.45%, 8/1/96 1,450,000 1,476,579
State of Minnesota G.O.
Series 1986, 3.45%, 8/1/96 1,000,000 1,017,248
Southern MN Municipal Power Agency,
3.15%, 2/26/96 5,000,000 5,000,000
-----------
20,028,327
-----------
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Missouri (1.18%)
Independence Water Utility Revenue
Series 1986, 3.40%, 11/1/06,
LOC National Westminster $2,000,000 (b) $2,000,000
Kansas City Municipal Assistance Corp.
Revenue Capital Appreciation Series A, 4.00%,
10/15/96, AMBAC Insured 985,000 958,138
State Environmental Improvement & Energy
Resource Authority PCR (Monsanto Corporation),
3.15%, 2/1/09 1,800,000 (b) 1,800,000
-----------
4,758,138
-----------
Montana (1.48%)
State Health Facilities Authority Revenue Bonds
Series A, 3.20%, 12/1/15, FGIC Insured 6,000,000 (b) 6,000,000
-----------
Nebraska (2.20%)
City of Lincoln Electric System Notes,
3.35%, 3/12/96 4,000,000 4,000,000
Investment Fin. Auth. Hosp. Rev. Bonds,
3.10%, 12/1/15, FGIC Insured 4,900,000 (b) 4,900,000
-----------
8,900,000
-----------
Nevada (3.49%)
Clark County Airport System Refunding Revenue Notes
Series 1993A, 3.15%, 7/1/12, MBIA Insured 12,650,000 (b) 12,650,000
Sparks G.O., 3.75%, 9/1/96, FGIC Insured 1,490,000 1,489,957
-----------
14,139,957
-----------
New Jersey (2.22%)
Economic Development Authority,
3.56%, 12/1/04, LOC Credit Suisse 1,200,000 (b) 1,200,000
State HFA Mortgage Revenue Bonds Series A,
3.80%, 4/1/12 7,770,000 (b) 7,770,000
-----------
8,970,000
-----------
New York (0.02%)
New York City Water Finance Authority,
3.50%, 6/15/23, FGIC Insured 100,000 (b) 100,000
-----------
North Carolina (0.37%)
Education Fac. Fin. Agency Rev.
(Bowman Gray School of Medicine),
3.10%, 9/1/20, LOC Wachovia Bank 1,500,000 (b) 1,500,000
-----------
North Dakota (1.39%)
State Housing Finance Agency SFMR,
3.80%, 1/1/16 5,630,000 (b) 5,630,000
-----------
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Ohio (0.45%)
Columbus G.O. Series D, 3.85%, 9/15/96 $1,815,000 $1,815,000
-----------
Oklahoma (0.25%)
Garfield County Ind. Auth. PCR
(OK Gas & Electric), 3.35%, 1/1/25 1,000,000 (b) 1,000,000
-----------
Pennsylvania (6.01%)
Allegheny County Hospital
(St. Francis Medical Center), 3.80%, 6/1/96 1,000,000 1,033,764
Beaver County IDA Pollution Control Revenue Bonds
Series 1995, 3.20%, 10/01/29, LOC Swiss Bank 12,000,000 (b) 12,000,000
Lehigh County IDA (Allegheny Electric Coop.)
Series 1985, 3.25%, 12/1/15,
LOC Rabobank Nederland 3,000,000 (b) 3,000,000
Quakertown Hospital Authority,
3.10%, 7/1/05, LOC PNC Bank 8,300,000 (b) 8,300,000
-----------
24,333,764
-----------
Rhode Island (0.25%)
State Tax Anticipation Notes, 4.50%, 6/28/96,
LOC Union Bank of Switzerland 1,000,000 1,002,676
-----------
South Carolina (0.57%)
Florence County Hospital Revenue
(McLeod Regional Medical Center) Series 1985A,
3.20%, 11/1/15, FGIC Insured 2,300,000 (b) 2,300,000
-----------
Tennesse (1.71%)
Clarksville Public Building Authority Revenue
Series 1990, 3.05%, 7/1/13, MBIA Insured 3,242,000 (b) 3,242,000
Stewart County Bond Anticipation Notes G.O.,
3.63%, 2/15/97 3,650,000 3,692,906
-----------
6,934,906
-----------
Texas (8.00%)
Brazoria County PCR (Dow Chemical Company),
3.30%, 10/1/99 3,900,000 (b) 3,900,000
Brownsville Utility System Revenue Priority Refunding
Series B, 3.45%, 9/1/96, FGIC Insured 1,000,000 1,042,645
Dallas County G.O. Series A, 7.40%, 7/10/96 2,680,000 2,721,057
Grand Prairie HFA (GECC), 3.10%, 6/1/10 1,800,000 (b) 1,800,000
Grand Prairie Hsg. Fin. Corp. MFHR (GECC),
3.10%, 6/1/10 6,700,000 (b) 6,700,000
Harris County Flood Control District Series 1987A,
3.85%, 5/1/96 1,380,000 1,391,468
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Texas (continued)
Lower Neches Valley Auth. PCR
(Chevron USA Inc.), 3.75%, 2/15/17 $5,000,000 (b) $5,000,000
Nueces River Authority PCR Series 1985,
3.70%, 12/01/99, LOC Bank of Nova Scotia 1,400,000 (b) 1,400,000
State Public Finance Authority Series 1993A,
3.30%, 3/5/96 3,600,000 3,600,000
State Public Finance Authority Series 1993A,
3.20%, 4/2/96 1,800,000 1,800,000
State Tax Revenue Anticipation Notes Series 1995A,
4.04%, 8/30/96 3,000,000 3,011,825
-----------
32,366,995
-----------
Utah (2.54%)
State Board of Regents Student Loan Revenue Bonds
Series B, 3.10%, 11/1/00, AMBAC Insured 10,300,000 (b) 10,300,000
-----------
Washington (6.56%)
Port of Anacortes IDR (Texaco Project),
3.40%, 6/15/19 15,000,000 (b) 15,000,000
Seattle Municipal Light & Power Revenue,
3.50%, 5/1/96 4,000,000 4,003,237
State G.O. Refunding Series R 1994A,
3.45%, 8/1/96 1,975,000 1,977,345
State Health Care Facilities Authority Revenue
(Fred Hutchinson Cancer Center), 3.85%,
1/1/18, LOC Morgan Guaranty Trust 5,595,000 (b) 5,595,000
-----------
26,575,582
-----------
West Virginia (0.93%)
Hospital Finance Authority, 7.20%, 6/1/96 1,000,000 1,030,616
State Housing Development Fund Series A-1,
3.85%, 5/1/14 2,735,000 (b) 2,735,000
-----------
3,765,616
-----------
Wisconsin (0.49%)
Oshkosh Area School District G.O. Bans,
3.40%, 12/13/96 2,000,000 2,002,483
-----------
Wyoming (5.98%)
Converse County PCR Ser. 1988 (Pacificorp), 3.50%, 1/1/14,
LOC Deutsche Bank 3,700,000 (b) 3,700,000
Gillette, Campbell Cnty. PCR Ser. 1988
3.55%, 1/1/18, LOC Deutsche Bank 3,100,000 (b) 3,100,000
3.35%, 1/1/14, LOC Deutsche Bank 2,800,000 (b) 2,800,000
Lincoln County PCR (Exxon Corporation)
Series 1984B, 3.50%, 11/01/14 1,800,000 (b) 1,800,000
Series 1984C, 3.50%, 11/01/14 600,000 (b) 600,000
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Wyoming (continued)
Platte County PCR
Series 1984A, 3.60%, 07/01/14,
LOC Societe Generale $3,500,000 (b) $3,500,000
Series 1984B, 3.60%, 07/01/14,
LOC Societe Generale 1,700,000 (b) 1,700,000
Sweetwater County Pollution Control Revenue
3.55%, 1/1/17, LOC Union Bank of Switzerland 2,000,000 (b) 2,000,000
3.20%, 1/1/17, LOC Union Bank of Switzerland 5,000,000 (b) 5,000,000
-----------
24,200,000
- -------------------------------------------------------------------------------
Total Investments in Securities (cost: $398,215,468) (d) $398,215,468
- -------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on January 31, 1996. The maturity date shown
represents final maturity. However, for purposes of Rule 2a-7, maturity
is the next interest rate reset date at which time the security can be put
back to the issuer.
(c) Portfolio abbreviations:
CDA - Community Development Agency
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
HFA - Housing Finance Authority
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
SFMR - Single Family Mortgage Revenue
LOC - Letter of Credit
G.O. - General Obligation
GECC - General Electric Capital Corporation
AMBAC - American Municipal Bond Association
Corporation
FGIC - Financial Guaranty Insurance Corporation
MBIA - Municipal Bond Insurance Association
FSA - Financial Security Assurance Corporation
(d) Also represents cost for federal income tax purposes.
<PAGE>
March 15, 1996
LOGO
To Our Shareholders:
I am pleased to present the January 31, 1996 Semi-Annual Report of the Great
Hall National Tax-Exempt Fund and Great Hall Minnesota Insured Tax-Exempt Fund.
This report contains a statement of each Fund's financial condition as of
January 31, 1996, which includes a detailed schedule of each Fund's investment
portfolio, and a statement of each Fund's operations and changes in net assets
for the six month period.
During this six month period bond prices generally rose as interest rates
declined. The economic environment of sluggish growth and low inflation was
very favorable for bonds. These factors prompted the Federal Reserve to lower
short-term interest rates by one quarter of 1% in both December of 1995 and
January of 1996. Uncertainty about the economy also lessened bond investors'
fears of future inflation, which helped bond prices move higher.
The prices of the Great Hall Tax-Exempt Bond Funds rose with the overall
improvement in the bond market. The yields of long maturity tax-exempt bonds
remained unusually high compared to the yields of taxable bonds. This is
presumably due to continued concern about possible changes in the federal tax
code which would reduce the advantage of tax-exempt securities. Both Funds
have continued to meet their objectives of providing a high level of current
income exempt from federal income taxes. Neither Fund has ever used risky
derivatives nor leverage to boost their yields.
On behalf of the Great Hall Investment Funds, I thank you for your continued
support.
Sincerely,
J. Scott Spiker
Chief Executive Officer
Great Hall Investment Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1996
Minnesota
National Insured
Tax-Exempt Tax-Exempt
(unaudited) Fund Fund
- -------------------------------------------------------------------------------
Assets:
Investments in securities at market value
(note 2), identified cost $62,133,280 and
$26,462,894, respectively......................... $64,250,584 $27,343,084
Cash in bank on demand deposit..................... 203,213 50,607
Receivable for fund shares sold.................... 42,014 --
Accrued interest receivable........................ 1,113,107 521,561
- -------------------------------------------------------------------------------
Total assets....................................... 65,608,918 27,915,252
- -------------------------------------------------------------------------------
Liabilities:
Cash portion of dividends payable to shareholders.. 174,495 30,784
Payable for fund shares redeemed................... 84,911 63,569
Accrued investment advisory fee.................... 27,649 5,327
Accrued distribution fee........................... 21,938 9,464
Other accrued expenses............................. 22,710 35,396
- -------------------------------------------------------------------------------
Total liabilities.................................. 331,703 144,540
- -------------------------------------------------------------------------------
Net assets applicable to
outstanding capital stock......................... $65,277,215 $27,770,712
- -------------------------------------------------------------------------------
Represented by:
Capital stock - authorized 10 billion shares of
$.01 par value for each Fund, outstanding
6,290,040 and 2,711,743 shares, respectively..... $62,900 $27,117
Additional paid-in capital........................ 63,116,920 27,498,582
Accumulated net realized losses on
investments (note 2)............................. (19,909) (635,177)
Unrealized appreciation of investments............ 2,117,304 880,190
- -------------------------------------------------------------------------------
Total - representing net assets applicable to
outstanding capital stock...................... $65,277,215 $27,770,712
- -------------------------------------------------------------------------------
Net asset value per share
of outstanding capital stock..................... $10.38 $10.24
- -------------------------------------------------------------------------------
See accompanying notes to investments in securities.
<PAGE>
STATEMENTS OF OPERATIONS
Six months ended January 31, 1996
Minnesota
National Insured
Tax-Exempt Tax-Exempt
(unaudited) Fund Fund
- -------------------------------------------------------------------------------
Interest.......................................... $2,299,221 $797,025
- -------------------------------------------------------------------------------
Expenses (note 5):
Investment advisory fee1.......................... 164,629 70,510
Distribution fee.................................. 98,778 42,305
Custodian, accounting and transfer agent fees..... 20,861 14,100
Reports to shareholders........................... 5,106 8,780
Directors' fees................................... 3,000 3,000
Audit and legal fees.............................. 11,916 22,324
Registration fees................................. -- 1,350
Insurance fees.................................... 500 5,600
Other expenses.................................... 1,000 3,394
- -------------------------------------------------------------------------------
Total expenses...................................... 305,790 171,363
Less expenses voluntarily waived or
absorbed by Advisor................................. (38,945) (56,679)
- -------------------------------------------------------------------------------
Total net expenses.................................. 266,845 114,684
- -------------------------------------------------------------------------------
Investment income - net............................. 2,032,376 682,341
- -------------------------------------------------------------------------------
Realized and unrealized gains/(losses) on investments:
Net realized gain (loss) on investments (note 3).. 216,685 (18,669)
Net change in unrealized appreciation or
depreciation of investments...................... 1,886,041 936,999
- -------------------------------------------------------------------------------
Net gain on investments............................. 2,102,726 918,330
- -------------------------------------------------------------------------------
Net increase in net
assets resulting from operations................... $4,135,102 $1,600,671
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
National Minnesota Insured
Tax-Exempt Fund Tax-Exempt Fund
- -------------------------------------------------------------------------------
Six month Year Six month Year
period ended Ended period ended Ended
1/31/96 7/31/95 1/31/96 7/31/95
(unaudited) (unaudited)
- -------------------------------------------------------------------------------
Operations:
Investment income - net.. $2,032,376 $4,417,173 $682,341 $1,571,421
Net realized gain (loss)
on investments.......... 216,685 868,133 (18,669) (616,795)
Net change in unrealized
appreciation or depreciation
of investments.......... 1,886,041 (592,387) 936,999 728,206
- -------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations.............. 4,135,102 4,692,919 1,600,671 1,682,832
- -------------------------------------------------------------------------------
Distributions to shareholders from:
Investment income - net.. (2,032,376) (4,417,173) (682,341) (1,571,421)
Accumulated net
realized gains.......... (804,858) (308,935) -- (293,106)
- -------------------------------------------------------------------------------
Total distributions
to shareholders......... (2,837,234) (4,726,108) (682,341) (1,864,527)
- -------------------------------------------------------------------------------
Capital share transactions (note 4):
Proceeds from sales
(note 5)................ 1,495,112 3,529,401 790,394 633,943
Shares issued for reinvest-
ment of distributions... 1,544,993 2,501,190 453,266 1,145,781
Payment for shares
redeemed................ (5,418,010) (11,812,598) (3,026,013) (10,071,324)
- -------------------------------------------------------------------------------
Decrease in net assets
from capital share
transactions............ (2,377,905) (5,782,007) (1,782,353) (8,291,600)
- -------------------------------------------------------------------------------
Total decrease
in net assets............. (1,080,037) (5,815,196) (864,023) (8,473,295)
- -------------------------------------------------------------------------------
Net assets at
beginning of period....... 66,357,252 72,172,448 28,634,735 37,108,030
- -------------------------------------------------------------------------------
Net assets at
end of period............. $65,277,215 $66,357,252 $27,770,712 $28,634,735
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization
Great Hall Investment Funds, Inc. (the Company) was incorporated on June
24, 1991 and is registered under the Investment Company Act of 1940 (as
amended) as an open-end management investment company and presently
includes a series of five funds, including National Tax-Exempt Fund and
Minnesota Insured Tax-Exempt Fund (the funds), which are classified as non-
diversified funds. The Company's articles of incorporation permit the
board of directors to create additional funds in the future.
2. Summary of Significant Accounting Policies
The significant accounting policies followed by the funds are as follows:
Investments in Securities
The values of fixed-income securities are provided by an independent
pricing service. When market quotations are not readily available,
securities are valued at fair value as determined in good faith by the
Board of Directors. Short-term securities are valued at amortized cost
which approximates market value.
Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses are calculated on the
identified cost basis. Interest income, including amortization of premium
and original issue discount, is accrued daily and is computed on a level
yield basis. For the Minnesota Insured Tax-Exempt Fund, portfolio
insurance expense is recognized over the premium period, and the cost of
secondary market insurance, if any, is capitalized to the cost basis of the
underlying security. For the six month period ended January 31, 1996
portfolio insurance expense was $2,385.
The Minnesota Insured Tax-Exempt Fund concentrates its investments in a
single state and, therefore, may have more risk related to the economic
conditions of the respective state than a fund that has broader
geographical diversification.
Securities Purchased on a When-Issued Basis
Delivery and payment for securities which have been purchased on a forward
commitment or when-issued basis can take place a month or more after the
transaction date. During this period, such securities are subject to
market fluctuations and the fund maintains, in a segregated account with
its custodian, assets with a market value equal to the amount of its
purchase commitments.
Federal Taxes
The funds' policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to shareholders. Therefore, no income tax
provision is required. Each fund within the Company will be treated as a
separate entity for federal income tax purposes. In addition, on a
calendar basis, each fund intends to distribute substantially all of its
taxable net investment income and realized gains, if any, to avoid the
payment of any federal excise taxes.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
2. Summary of Significant Accounting Policies (continued)
Net investment income and net realized gains (losses) may differ for
financial statement and tax purposes. The character of distributions made
during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes.
Also, due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the year that the income or the
realized gains (losses) were recorded by the funds.
For federal income tax purposes, capital loss carryovers were $616,795 for
the Minnesota Insured Tax-Exempt Fund at July 31, 1995, which if not offset
by subsequent capital gains, will expire in 2003 and 2004. It is unlikely
the Board of Directors will authorize a distribution of any net realized
capital gains until the available capital loss carryovers have been offset
or expired.
Distributions to Shareholders
Distributions to shareholders from net investment income are declared daily
and payable monthly in cash or reinvested in additional shares.
Distributions from net realized gains, if any, will be made on an annual
basis for the funds.
3. Investment Security Transactions
For the six month period ended January 31, 1996, purchases of securities
and proceeds from sales, other than temporary investments in short-term
securities, aggregated $0 and $6,134,845 for National Tax-Exempt Fund and
$0 and $1,342,789 for Minnesota Insured Tax-Exempt Fund.
4. Capital Share Transactions
Transactions in shares of each Fund for the six month period ended January
31, 1996 and year ended July 31, 1995 are as follows:
National Minnesota Insured
Tax-Exempt Tax-Exempt
Fund Fund
- ------------------------------------------------------------------------------
1996:
Sold..................................... 145,199 77,788
Issued for reinvested distributions...... 149,417 44,778
Redeemed................................. (526,539) (300,781)
- ------------------------------------------------------------------------------
Decrease................................. (231,923) (178,215)
- ------------------------------------------------------------------------------
1995:
Sold..................................... 354,203 64,766
Issued for reinvested distributions...... 250,761 120,193
Redeemed................................. (1,182,858) (1,060,778)
- ------------------------------------------------------------------------------
Decrease................................. (577,894) (875,819)
- ------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. Fees and Expenses
The funds have entered into an investment advisory and management agreement
with IFG Asset Management Services, Inc. (AMS), under which AMS manages
each fund's assets and furnishes related office facilities, equipment,
research and personnel. The agreement requires each fund to pay AMS a
monthly fee based on average daily net assets. The fee for each fund is
equal to an annual rate of 0.50% of average daily net assets.
Each fund also pays affiliates Dain Bosworth Incorporated (DBI) and
Rauscher Pierce Refsnes, Inc. (RPR) a monthly fee for expenses incurred in
the distribution and promotion of the funds' shares. The monthly fee is
limited to a maximum of 1/12 of 0.30% of average daily net assets for each
fund. However, DBI and RPR voluntarily limited the reimbursement fee to
0.182% of average daily net assets for the six month period ended January
31, 1996 for both the National Tax-Exempt and Minnesota Insured Tax-Exempt
funds. Total distribution fees waived for the six month period ended
January 31, 1996 were $38,945 and $16,679 for National Tax-Exempt Fund and
Minnesota Insured Tax-Exempt Fund, respectively.
In addition to the investment advisory fee and the distribution fee, each
fund is responsible for paying most other operating expenses including
outside directors' fees and expenses, custodian fees, registration fees,
printing and shareholder reports, transfer agent fees and expenses, legal,
auditing and accounting services, organization costs, insurance, interest
and other miscellaneous expenses. For the six month period ended January
31, 1996, total fees and expenses including the distribution fee were
further voluntarily limited to an annual rate of 0.81% of average daily net
assets for both the National Tax-Exempt and Minnesota Insured Tax-Exempt
funds.
Sales charges paid to affiliated brokers for distributing the funds' shares
were $39,848 for National Tax-Exempt Fund and $19,290 for Minnesota Insured
Tax-Exempt Fund for the six month period ended January 31, 1996.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
6. Financial Highlights
Per share data for a share of capital stock outstanding throughout each
period and selected information for the period is as follows:
<TABLE>
Six Months Ended
January 31, 1996
NATIONAL TAX-EXEMPT FUND (unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period................. $10.17 $10.17 $10.50 $10.22 $9.65 $9.63
- ------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income.............. 0.320 0.648 0.624 0.652 0.703 0.697
Realized and unrealized gains
(losses) on investments, net...... 0.338 0.045 (0.313) 0.280 0.570 0.020
- ------------------------------------------------------------------------------------------------------------
Total from investment operations..... 0.658 0.693 0.311 0.932 1.273 0.717
- ------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From investment income............. (0.320) (0.648) (0.624) (0.652) (0.703) (0.697)
From accumulated
net realized gains................ (0.128) (0.045) (0.017) -- -- --
- ------------------------------------------------------------------------------------------------------------
Total distributions to shareholders.. (0.448) (0.693) (0.641) (0.652) (0.703) (0.697)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period....... $10.38 $10.17 $10.17 $10.50 $10.22 $9.65
- ------------------------------------------------------------------------------------------------------------
Total return**....................... 6.56% 7.16% 2.99% 9.45% 13.84% 7.76%
Net assets at end
of period (000s omitted)............ $65,277 $66,357 $72,172 $58,048 $43,166 $46,812
Ratio of expenses to average
daily net assets*................... 0.81%*** 0.79% 0.91% 1.01% 0.84% 0.96%
Ratio of net investment income
to average daily net assets*........ 6.17%*** 6.45% 5.98% 6.32% 7.15% 7.26%
Portfolio turnover rate
(excluding short-term securities).. 0.00% 8.45% 27.88% 16.36% 14.50% 13.52%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
* Various fund fees and expenses were voluntarily waived or absorbed during
the periods referred to above. Had the fund paid all expenses, the ratios
of expenses and net investment income to average daily net assets would
have been as follows: 0.93%/6.05% for the six month period ended January
31, 1996, 0.90%/6.34% in 1995, 1.01%/5.88% in 1994, 1.24%/6.09% in 1993,
1.14%/6.85% in 1992, and 1.26%/6.96% in 1991.
** Total return does not reflect payments of a sales charge.
*** Adjusted to an annual basis.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
6. Financial Highlights (continued)
<TABLE>
Six Months Ended
Minnesota Insured January 31, 1996
Tax-Exempt Fund (unaudited) Year ended July 31
- ------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period................. $9.91 $9.85 $10.52 $10.29 $9.74 $9.60
- ------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income.............. 0.245 0.494 0.502 0.560 0.604 0.623
Realized and unrealized gains
(losses) on investments, net...... 0.330 0.157 (0.465) 0.230 0.550 0.140
- ------------------------------------------------------------------------------------------------------------
Total from investment operations..... 0.575 0.651 0.037 0.790 1.154 0.763
- ------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
From investment income............. (0.245) (0.494) (0.502) (0.560) (0.604) (0.623)
From accumulated
net realized gains................ -- (0.097) (0.205) -- -- --
- ------------------------------------------------------------------------------------------------------------
Total distributions to shareholders.. (0.245) (0.591) (0.707) (0.560) (0.604) (0.623)
- ------------------------------------------------------------------------------------------------------------
Net asset value, end of period....... $10.24 $9.91 $9.85 $10.52 $10.29 $9.74
- ------------------------------------------------------------------------------------------------------------
Total return**....................... 5.86% 7.00% 0.21% 7.95% 12.41% 8.27%
Net assets at end
of period (000s omitted)............ $27,771 $28,635 $37,108 $29,899 $23,009 $21,486
Ratio of expenses to
average daily net assets*........... 0.81%*** 0.81% 0.80% 0.76% 0.61% 0.46%
Ratio of net investment income
to average daily net assets*........ 4.84%*** 5.12% 4.86% 5.44% 6.11% 6.45%
Portfolio turnover rate (excluding
short-term securities).............. 0.00% 3.44% 42.40% 20.12% 5.60% 1.25%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
* Various fund fees and expenses were voluntarily waived or absorbed during
the periods referred to above. Had the fund paid all expenses, the ratios
of expenses and net investment income to average daily net assets would
have been as follows: 1.22%/4.43% for the six month period ended January
31, 1996, 1.16%/4.77% in 1995, 1.00%/4.66% in 1994, 1.15%/5.05% in 1993,
1.16%/5.56% in 1992, and 1.22%/5.69% in 1991.
** Total return does not reflect payments of a sales charge.
*** Adjusted to an annual basis.
<PAGE>
NATIONAL TAX-EXEMPT FUND
Investments in Securities (unaudited)
January 31, 1996
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Municipal Bonds (93.98%):
- -------------------------------------------------------------------------------
Alabama (7.92%)
Etowah County Refunding Warrants, 8.50%, 11/01/10 $800,000 $883,772
Orange Beach General Obligation, 6.25%, 10/01/13 1,500,000 1,505,269
Moundville Industrial Development, 6.75%, 12/01/11 1,500,000 1,550,481
Upper Bear Creek Water & Sewer, 6.25%, 08/01/15 1,250,000 1,230,646
---------
5,170,168
---------
Arizona (0.83%)
Prescott Valley Improvement District, 7.90%, 01/01/12 500,000 542,843
---------
Colorado (8.32%)
Arapahoe Water & Sanitation District,
9.13%, 12/01/98-12/01/08 500,000 551,648
Arapahoe Water & Sanitation District, 9.25%, 12/01/98 210,000 242,091
Colorado Technical Center Metropolitan District,
9.75%, 06/01/09 620,000 672,538
Mesa County Single Family Mortgage,
8.88%, 12/01/10 305,000 315,658
Mountain Village Metropolitan District,
8.10%, 12/01/11 1,000,000 1,074,603
Panorama Metropolitan District, 9.00%, 12/01/09 750,000 801,621
Piney Creek Metropolitan District, 8.50%, 12/01/14 600,000 620,573
Westminster Shaw Heights Basin Special,
7.50%, 12/01/07 350,000 351,829
Winter Park West Water & Sanitation District,
9.25%, 12/01/06 250,000 259,864
Winter Park West Water & Sanitation District,
9.75%, 12/01/05 525,000 538,096
---------
5,428,521
Florida (1.03%) ---------
Sarasota County Industrial Development,
8.75%, 05/01/11 665,000 671,893
---------
Illinois (13.08%)
Bedford Park Revenue Refunding, 8.00%, 12/01/04 1,200,000 1,289,335
Illinois Development Finance Authority,
7.00%, 03/01/06 400,000 389,010
Illinois Development Finance Authority,
7.20%, 03/01/07-03/01/08 800,000 787,630
Illinois Development Finance Authority,
7.38%, 11/15/11 1,100,000 1,217,351
Illinois Health Facilities Authority,
8.10%, 11/15/14 1,000,000 1,075,887
Niles Park District Series A, 6.65%, 12/01/14 860,000 905,029
See accompanying notes to financial statements.
<PAGE>
NATIONAL TAX-EXEMPT FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Municipal Bonds (continued):
- -------------------------------------------------------------------------------
Illinois (continued)
Romeoville Series A Utilities, 7.80%, 01/01/11 $1,000,000 $1,050,996
Streamwood Special Service Area #3, 8.38%, 01/01/09 1,000,000 1,046,731
West Chicago Tax Increment Revenue, 7.38%, 12/01/12 720,000 774,653
---------
8,536,622
---------
Indiana (2.81%)
Indianapolis Economic Development, 7.25%, 10/01/10 700,000 751,536
Fishers Economic Development Revenue,
8.38%, 09/01/14 1,000,000 1,083,283
---------
1,834,819
---------
Kansas (0.20%)
Johnson City First Mortgage Revenue, 7.40%, 10/01/08 125,000 133,700
---------
Maine (1.58%)
Yarmouth Pollution Control Revenue, 6.75%, 06/01/02 1,025,000 1,032,164
---------
Michigan (3.28%)
Troy Economic Development Corporation,
6.75%, 10/01/12 1,500,000 1,606,386
Bad Axe Water Supply & Sewer Disposal,
8.25%, 12/01/07 500,000 532,831
---------
2,139,217
---------
Minnesota (2.89%)
Fergus Falls Health Care Facilities, 6.50%, 09/01/18 750,000 766,978
Alexandria Health Care Facilities, 8.75%, 08/01/21 500,000 566,057
Spring Park Health Care Facilities, 8.25%, 08/01/11 500,000 555,790
---------
1,888,825
---------
Missouri (8.62%)
Saint Louis County Industrial Development,
7.50%, 06/01/16 1,500,000 1,502,526
Clarence Cannon Wholesale Water Commission,
5.75%, 05/15/13 1,500,000 1,448,889
Franklin County Public Water Supply District,
7.38%, 12/01/18 1,255,000 1,346,316
Marion County Nursing Home, 7.00%, 08/01/13 1,050,000 1,095,090
Platte City Waterworks & Sewer,
7.75%, 04/01/08-04/01/09 220,000 230,849
---------
5,623,670
---------
Nebraska (2.70%)
Douglas County Zoo Facility, 6.00%, 06/01/03 1,750,000 1,763,627
---------
See accompanying notes to financial statements.
<PAGE>
NATIONAL TAX-EXEMPT FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Municipal Bonds (continued):
- -------------------------------------------------------------------------------
New Mexico (1.17%)
Rio Grande Natural Gas Association, 6.13%, 07/01/13 $750,000 $762,450
---------
North Carolina (2.23%)
Eastern Municipal Power Agency, 5.50%, 1/01/21 1,500,000 1,454,443
---------
Oklahoma (9.73%)
Chelsea Gas Authority, 7.30%, 07/01/19 700,000 715,807
Chelsea Gas Authority, 7.25%, 07/01/13 600,000 622,591
Shattuck Hospital Authority,
6.50%, 01/01/98-07/01/02 390,000 381,817
Clinton Public Works Authority, 6.25%, 01/01/14 1,725,000 1,719,366
Oklahoma City Public Property Authority,
8.30%, 10/01/16 1,000,000 1,103,479
Anadarko Public Works Authority, 7.00%, 10/01/12 1,000,000 1,045,636
Heavener Utilities Authority, 6.50%, 10/01/09 750,000 764,458
---------
6,353,154
---------
Pennsylvania (14.40%)
Adamstown Borough Authority Sewer, 9.00%, 10/01/97 500,000 544,104
Adamstown Borough Authority Sewer, 6.25%, 10/01/17 905,000 915,327
Butler General Obligation, 6.88%, 03/01/23 950,000 954,671
Chester General Obligation, 9.50%, 12/01/97 70,000 70,627
Easton Area Joint Sewer Authority, 6.20%, 04/01/09 1,000,000 1,009,673
Elizabeth Borough Municipal Authority Sewer,
7.15%, 01/01/21 500,000 522,655
Hopewell Township Beaver County Sewer,
6.00%, 11/01/13 1,215,000 1,176,241
Lehigh County General Purpose, 8.75%, 11/01/14 750,000 726,410
Neville Township General Obligation, 5.90%, 11/01/12 500,000 481,429
Neville Township General Obligation, 6.00%, 11/01/18 615,000 584,249
New Kensington Municipal Sewer, 7.50%, 10/01/11 1,000,000 1,043,282
State Higher Educational Facilities Authority
Revenue, 6.75%, 05/01/12 1,300,000 1,373,956
---------
9,402,624
---------
See accompanying notes to financial statements.
<PAGE>
NATIONAL TAX-EXEMPT FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Municipal Bonds (continued):
- -------------------------------------------------------------------------------
South Dakota (4.22%)
Health & Educational Facilities, 7.25%, 09/01/13 $1,125,000 $1,046,972
Health & Educational Facilities, 7.00%, 04/01/10 1,000,000 1,026,182
Lead Lease Revenue, 8.88%, 10/01/18 590,000 681,138
---------
2,754,292
---------
Tennessee (1.61%)
Newbern Individual Development, 7.90%,
3/01/00 1,000,000 1,049,422
---------
Texas (3.18%)
Denton County Health Facilities, 7.50%, 08/15/15 1,000,000 1,042,088
Wharton Housing Development Corp.,
8.00%, 02/01/03-02/01/10 1,025,000 1,035,342
---------
2,077,430
---------
Washington (1.35%)
State Housing Finance Commission,
8.25%, 07/01/02-07/01/12 845,000 879,122
---------
Wisconsin (0.96%)
La Crosse Nursing Home Facilities, 9.25%, 07/01/17 600,000 627,242
---------
West Virginia (1.21%)
Ohio County Building Commission, 9.63%, 01/01/13 775,000 792,821
---------
Wyoming (0.66%)
Green River Sweetwater County, 8.50%, 12/01/07 400,000 431,515
- -------------------------------------------------------------------------------
Total Municipal Securities (cost: $59,233,280) $61,350,584
- -------------------------------------------------------------------------------
See accompanying notes to financial statements.
<PAGE>
NATIONAL TAX-EXEMPT FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Short-Term Securities (4.44%):
- -------------------------------------------------------------------------------
Los Angeles Regional Airport Improvement Corp.,
3.75%, 12/01/25, LOC Societe Generale $400,000 (b) $400,000
Los Angeles, CA Regional Airports Series E,
3.75%, 12/01/24, LOC Wachovia Bank of Georgia 200,000 (b) 200,000
New York City Water Finance Authority,
3.50%, 6/15/22 1,200,000 (b) 1,200,000
New York City, New York G.O.,
3.80%, 10/01/21-10/01/22 1,100,000 (b) 1,100,000
- -------------------------------------------------------------------------------
Total Short-Term Securities (cost: $2,900,000) $2,900,000
- -------------------------------------------------------------------------------
Total Investments in Securities (cost: $62,133,280) (d) $64,250,584
- -------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Maturity date shown represents final maturity. However, the security can
be put back to the issuer on the next interest rate reset date. Interest
rate shown is effective rate on January 31, 1996.
(c) Investments in bonds, by rating category as a percentage of total bonds,
are as follows:
(Unaudited)
Rating 1/31/96
---------- -----------
AAA 2%
AA 1
A 9
BBB and below 15
Non-rated 73
-----------
Total 100%
-----------
(d) At January 31, 1996, also represents the cost of securities for federal
income tax purposes. The approximate aggregate gross unrealized
appreciation and depreciation of investments in securities based on this
cost were:
Gross unrealized appreciation $2,355,942
Gross unrealized depreciation (238,638)
-----------
Net unrealized appreciation $2,117,304
-----------
<PAGE>
MINNESOTA INSURED TAX-EXEMPT FUND
Investments in Securities (unaudited)
January 31, 1996
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Municipal Bonds (97.02%):
- -------------------------------------------------------------------------------
Anoka Hennepin Independent School #11,
5.00%, 02/01/09 (FGIC) $1,030,000 $1,014,532
Anoka Hennepin Independent School #11,
5.10%, 02/01/11 (FGIC) 1,000,000 986,602
Becker Wastewater Treatment Facility,
5.95%, 02/01/14 (MBIA) 500,000 526,090
Brainerd Independent School District #181,
5.90%, 02/01/15 (CGIC) 1,000,000 1,040,033
Cass Lake Independent School District #115,
5.00%, 02/01/16 (FSA) 545,000 519,818
Dover & Eyota Independent School District #533,
5.25%, 02/01/14 (AMBAC) 1,000,000 990,814
Duluth Economic Development Authority, 6.00%,
02/15/20 (Connie Lee) 1,300,000 1,330,042
Duluth Independent School District #709,
5.20%, 02/01/11 (MBIA) 1,000,000 991,782
Lakeville Independent School District #194,
5.40%, 02/01/13 (FGIC) 1,100,000 1,103,909
Marshall Utility Revenue, 5.25%,
01/01/10-01/01/11 (CGIC) 625,000 627,164
Mpls. & St. Paul Housing & Redevelopment,
5.00%, 11/15/13 (AMBAC) 1,050,000 968,410
Mpls. & St. Paul Housing & Redevelopment,
7.40%, 08/15/05 (MBIA) 600,000 686,638
Minneapolis Health Care Facility,
5.30%, 11/15/08 (MBIA) 500,000 506,821
Minneapolis Tax Increment Revenue Refunding,
7.00%, 03/01/03 (MBIA) 1,140,000 1,207,192
Minnetonka Multifamily Revenue Housing,
7.50%, 12/01/17-12/01/27 (MBIA) 900,000 (e) 970,870
Mora General Obligation, 5.13%,
02/01/11 (AMBAC) 750,000 745,347
Mora Series A Waste Water Facilities,
6.85%, 02/01/00 (AMBAC) 510,000 561,457
Northern Minnesota Municipal Power Agency,
5.90%, 01/01/08 (AMBAC) 700,000 756,210
Northern Minnesota Municipal Power Agency,
6.13%, 01/01/20 (AMBAC) 500,000 524,463
Oakdale Refunding, 7.60%, 02/01/01 (MBIA) 50,000 50,000
Perham Independent School District #549,
5.25%, 02/01/10 (CGIC) 265,000 265,461
Perham Independent School District #549,
5.30%, 02/01/11 (CGIC) 295,000 294,094
Robbinsdale Hospital Revenue Series B,
5.30%, 05/15/06-05/15/07 (AMBAC) 1,185,000 1,219,017
Robbinsdale Hospital Revenue Series A,
5.45%, 05/15/13 (AMBAC) 1,000,000 1,008,615
Robbinsdale Hospital Revenue Series A,
5.30%, 05/15/07 (AMBAC) 150,000 154,095
St. Cloud Hospital Facilities Revenue Refunding,
6.75%, 07/01/11 (AMBAC) 400,000 434,384
St. Cloud Nursing Home Revenue Bonds, 5.35%,
10/01/16 (AMBAC) 145,000 141,101
St. Louis Park Multifamily Rent Housing Revenue,
7.38%, 12/01/28 (MBIA) 300,000 (e) 320,540
St. Paul Sewer Revenue, 5.60%, 12/01/08 (AMBAC) 2,000,000 2,077,740
Shakopee Public Utilities Commission,
5.60%, 08/01/18 (AMBAC) 750,000 755,474
Southern Minnesota Municipal Power Agency,
5.75%, 01/01/18 (MBIA) 1,000,000 1,025,882
State Housing Finance Agency,
8.50%, 02/01/17 (MBIA) 65,000 (e) 68,354
See accompanying notes to financial statements.
<PAGE>
MINNESOTA INSURED TAX-EXEMPT FUND
Investments in Securities (continued)
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
Municipal Bonds (continued)
- -------------------------------------------------------------------------------
State Housing Finance Agency,
7.25%, 07/01/06 (MBIA) $170,000 (e) $175,115
State Housing Finance Agency,
8.38%, 02/01/15 (MBIA) 80,000 (e) 82,470
State Housing Finance Agency,
9.50%, 02/01/17 (MBIA) 380,000 (e) 391,400
Waconia Independent School District #110,
5.15%, 02/01/08 (CGIC) 600,000 605,087
Warroad Independent School District #690,
6.85%, 02/01/13 (AMBAC) 500,000 550,448
Western Minnesota Municipal Power Agency,
6.88%, 01/01/09 (MBIA) 300,000 312,558
Wright County Refunding, 5.70%, 12/01/09 (CGIC) 900,000 953,055
- -------------------------------------------------------------------------------
Total Municipal Bonds (cost: $26,062,894) $26,943,084
- -------------------------------------------------------------------------------
Short-Term Securities (1.44%):
New York City, New York General Obligation,
3.80%, 10/01/21 400,000 (b) 400,000
- -------------------------------------------------------------------------------
Total Short-Term Securities (cost: $400,000) $400,000
- -------------------------------------------------------------------------------
Total Investments in Securities (cost: $26,462,894) (d) $27,343,084
- -------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) Maturity date shown represents final maturity. However, the security can
be put back to the issuer on the next interest rate reset date. Interest
rate shown is effective rate on January 31, 1996.
(c) The following abbreviations are used in portfolio descriptions to identify
the insurer of the issuer:
AMBAC - American Municipal Bond Association Corporation
CGIC - Capital Guaranty Insurance Corporation
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance Corporation
MBIA - Municipal Bond Insurance Association
(d) At January 31, 1996, also represents the cost of securities for federal
income tax purposes. The approximate aggregate gross unrealized
appreciation and depreciation of investments in securities based on this
cost were:
Gross unrealized appreciation $962,415
Gross unrealized depreciation (82,225)
---------
Net unrealized appreciation $880,190
---------
(e) Identifies issue covered under portfolio insurance policy purchased by
the Fund.
<PAGE>
LOGO
This report is signed on behalf of the registrant (or depositor or trustee) in
the City of Minneapolis and State of Minnesota on the twenty-eighth day of
March, 1996.
Great Hall Investment Funds, Inc.
Witness: Julie K.Getchell By: J. Scott Spiker
Julie K. Getchell J. Scott Spiker
Chief Financial Officer Chief Executive Officer
