March 12, 1997
To Our Shareholders:
I am pleased to present the January 31, 1997 Semi-Annual Report for the Great
Hall Prime, U.S. Government and Tax-Free Money Market Funds. This report
contains a statement of each Funds's financial condition as of January 31,
1997, 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.
Short-term interest rates stayed within a rather narrow range during this
period. The Federal Reserve made no changes in monetary policy, reflecting its
satisfaction with the current state of the economy. Inflation continues to run
at approximately 3% and real economic growth remains moderate. Because of the
stability in rates of money market instruments, the yields on the Great Hall
Money Market Funds remained quite stable.
Each of these Funds is managed in accordance with the stringent standards
required by the SEC for money market funds. We manage 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 $3.4 billion. This growth has benefited our shareholders
because it 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 principles and high degree of care that you
have come to expect from us.
Sincerely,
/s/ J. Scott Spiker
Chief Executive Officer
Great Hall Investment Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1997
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),
(identified cost $2,870,583,275;
$174,055,903 and $398,805,746,
respectively).................. $2,870,583,275 $174,055,903 $398,805,746
Cash in bank on
demand deposit................. 11,010 26,018 123,248
Accrued interest receivable...... 9,096,817 719,635 2,533,159
- -------------------------------------------------------------------------------
Total assets..................... 2,879,691,102 174,801,556 401,462,153
- -------------------------------------------------------------------------------
Liabilities:
Payable for investment
securities purchased........... 14,973,900 2,000,021 2,149,701
Accrued investment
advisory fee................... 1,141,141 66,311 180,193
Other accrued expenses........... 231,868 65,499 77,601
- -------------------------------------------------------------------------------
Total liabilities................ 16,346,909 2,131,831 2,407,495
- -------------------------------------------------------------------------------
Net assets applicable to
outstanding capital stock...... $2,863,344,193 $172,669,725 $399,054,658
- -------------------------------------------------------------------------------
Represented by:
Capital stock -- authorized
100 billion shares of $.01
par value for each Fund,
outstanding 2,863,344,193;
172,669,725 and 399,054,658
shares, respectively........... $28,633,442 $1,726,697 $3,990,547
Additional paid-in capital....... 2,834,710,751 170,943,028 395,064,111
- -------------------------------------------------------------------------------
Total -- representing net
assets applicable
to outstanding
capital stock.............. $2,863,344,193 $172,669,725 $399,054,658
- -------------------------------------------------------------------------------
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, 1997
Prime U.S. Government Tax-Free
Money Money Money
(unaudited) Market Fund Market Fund Market Fund
- -------------------------------------------------------------------------------
Income:
Interest.......................... $74,350,801 $4,304,366 $7,043,850
Expenses (note 4):
Investment advisory fee........... 6,388,591 368,300 986,134
Custodian, accounting and
transfer agent fees............. 198,000 26,405 21,000
Sub-accounting transfer
agent fees...................... 1,470,000 34,608 52,557
Reports to shareholders.......... 277,763 5,500 16,000
Amortization of
organization costs.............. 8,549 4,578 5,285
Directors' fees.................. 5,250 5,250 5,250
Audit and legal fees............. -- 6,500 13,400
Registration fees................ 255,000 27,363 41,870
Administrative................... 9,000 300 4,800
Other expenses................... 27,627 797 12,117
- -------------------------------------------------------------------------------
Total expenses.................... 8,639,780 479,601 1,158,413
- -------------------------------------------------------------------------------
Investment income -- net.......... 65,711,021 3,824,765 5,885,437
- -------------------------------------------------------------------------------
Net increase in net assets
resulting from operations........ $65,711,021 $3,824,765 $5,885,437
- -------------------------------------------------------------------------------
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
1/31/97 7/31/96 1/31/97 7/31/96 1/31/97 7/31/96
(unaudited) (unaudited) (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations:
Investment income,
net..................... $65,711,021 $94,637,073 $3,824,765 $6,521,362 $5,885,437 $11,649,531
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations......... 65,711,021 94,637,073 3,824,765 6,521,362 5,885,437 11,649,531
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Investment income
-- net................ (65,711,021) (94,637,073) (3,824,765) (6,521,362) (5,885,437) (11,649,531)
Net realized gains...... -- -- -- -- -- (378,871)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders............ (65,711,021) (94,637,073) (3,824,765) (6,521,362) (5,885,437) (12,028,402)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions
at net asset value of
$1.00 per share:
Proceeds from
sales................. 920,810,827 1,205,825,019 98,905,766 174,595,563 255,158,751 358,435,430
Shares issued for
reinvestment of
distributions......... 65,711,021 94,637,073 3,824,765 6,521,362 5,885,437 12,028,402
Payment for shares
redeemed.............. (528,633,572) (493,931,322) (76,745,960) (156,680,720) (221,142,762) (374,204,795)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net
assets from capital
share transactions...... 457,888,276 806,530,770 25,984,571 24,436,205 39,901,426 (3,740,963)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets............. 457,888,276 806,530,770 25,984,571 24,436,205 39,901,426 (4,119,834)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of period................. 2,405,455,917 1,598,925,147 146,685,154 122,248,949 359,153,232 363,273,066
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end
of period................. $2,863,344,193 $2,405,455,917 $172,669,725 $146,685,154 $399,054,658 $359,153,232
- ------------------------------------------------------------------------------------------------------------------------------------
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 three funds; 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.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
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 were amortized over 60
months on a straight-line basis through October, 1996.
<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, 1996
to January 31, 1997 were as follows:
Purchases Sales Proceeds
---------------------------------------------------------------------------
Prime Money Market Fund............... $7,386,931,410 $6,926,480,166
U.S. Government Money Market Fund..... 3,466,923,837 3,439,213,000
Tax-Free Money Market Fund............ 588,691,382 551,791,768
4. Fees and Expenses
The Company has entered into an investment advisory and management
agreement with Interra Advisory Services, Inc. (IAS), formerly IFG Asset
Management Services, Inc., under which IAS manages each fund's assets and
furnishes related office facilities, equipment, research and personnel.
The agreement requires each fund to pay IAS 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 $12 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 expenses, legal, auditing and accounting services,
organizational costs, insurance, interest and other miscellaneous expenses.
Legal fees and expenses of $21,155 for the period ended January 31, 1997
were paid to a law firm of which the secretary of the funds is a partner.
<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 ended Year ended Year ended Year ended Year ended
1/31/97 7/31/96 7/31/95 7/31/94 7/31/93
(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 0.05 0.03 0.03
Distributions to shareholders
from investment income............ (0.03) (0.05) (0.05) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period...... $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Total return........................ 2.5% 5.0% 4.9% 2.8% 2.7%
Net assets at end
of period (000s omitted).......... $2,863,344 $2,405,456 $1,598,925 $1,029,775 $861,670
Ratio of expenses to
average daily net assets**........ 0.64%* 0.70% 0.77% 0.80% 0.78%
Ratio of net investment
income to average
daily net assets**................ 4.85%* 4.93% 4.93% 2.81% 2.68%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
** Various fund fees and expenses were voluntarily waived or absorbed by IAS
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 and 0.82%/2.64% for the year ended July 31, 1993.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. Financial Highlights (continued)
<TABLE>
U.S. Government Money Market Fund
- --------------------------------------------------------------------------------------------------------------
Six-month
period ended Year ended Year ended Year ended Year ended
1/31/97 7/31/96 7/31/95 7/31/94 7/31/93
(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 0.05 0.05 0.03 0.03
Distributions to shareholders
from investment income............ (0.02) (0.05) (0.05) (0.03) (0.03)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period...... $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Total return........................ 2.4% 4.9% 4.8% 2.7% 2.6%
Net assets at end
of period (000s omitted).......... $172,670 $146,685 $122,249 $56,815 $66,558
Ratio of expenses to
average daily net assets.......... 0.60%* 0.65% 0.73% 0.78% 0.79%
Ratio of net investment
income to average
daily net assets.................. 4.80%* 4.87% 4.94% 2.73% 2.57%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. Financial Highlights (continued)
<TABLE>
Tax-Free Money Market Fund
- --------------------------------------------------------------------------------------------------------------
Six-month
period ended Year ended Year ended Year ended Year ended
1/31/97 7/31/96 7/31/95 7/31/94 7/31/93
(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 0.03 0.02 0.02
Distributions to shareholders
from investment income............ (0.02) (0.03) (0.03) (0.02) (0.02)
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period...... $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------
Total return........................ 1.5% 3.0% 3.1% 2.0% 2.1%
Net assets at end
of period (000s omitted).......... $399,055 $359,153 $363,273 $275,278 $209,469
Ratio of expenses to
average daily net assets.......... 0.59%* 0.59% 0.60% 0.65% 0.67%
Ratio of net investment
income to average
daily net assets.................. 2.98%* 3.03% 3.14% 1.98% 2.09%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1997
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Commercial Paper & Other Corporate Obligations (93.13%):
- -------------------------------------------------------------------------------
Agricultural Products (1.04%)
Cargill Inc., 5.30%, 4/11/97 $20,000,000 $19,796,833
Cargill Financial Services, Inc., 5.63%, 3/4/97 10,000,000 (d) 9,951,562
-----------
29,748,395
-----------
Banks - Domestic (14.18%)
Allegheny University Hospital,
5.45%-5.48%, 2/18/97, LOC PNC Bank 25,000,000 24,935,518
Bank of America, NT & SA,
5.28%-5.40%, 2/26/97-4/21/97 30,000,000 29,945,000
Bankers Trust Company,
5.27%-5.81%, 3/25/97-1/8/98 61,600,000 (e) 61,466,254
Boatmen's Bank of St. Louis, 5.50%, 6/17/97 10,000,000 (e) 10,000,000
First Bank, Minneapolis, N.A.,
5.28%-5.30%, 3/11/97-10/24/97 20,000,00 (e) 19,965,712
First National Bank of Chicago,
5.47%-6.05%, 5/27/97-6/13/97 7,000,000 7,016,864
Formosa Plastics USA, 5.34%-5.42%,
3/13/97-4/9/97, LOC Bank of America 20,600,000 20,436,781
Morgan Guaranty Trust Company,
5.37%-5.40%, 2/4/97-11/14/97 59,000,000 (e) 58,991,448
National Bank of Detroit, 5.64%, 7/15/97 4,300,000 4,300,762
NationsBank, N.A., (Carolinas),
Bankers Acceptance, 5.36%, 7/9/97 9,000,000 8,788,280
Norwest Corporation,
5.28%-5.75%, 3/5/97-11/15/97 24,000,000 23,939,780
PNC Bank, N.A., 5.34%, 11/25/97 5,000,000 (e) 4,997,622
Regions Bank, 5.36%-5.45%, 2/14/97-5/19/97 64,000,000 63,995,965
Suntrust Bank, Atlanta, Bankers Acceptance,
5.29%-5.32%, 2/5/97-3/10/97 40,000,000 39,878,888
Wachovia Bank, North Carolina,
5.76%-5.85%, 4/14/97 7,400,000 (e) 7,401,676
Wachovia Bank of Georgia, N.A.,
Bankers Acceptance, 5.32, 2/28/97 20,000,000 19,920,200
-----------
405,980,750
-----------
Banks - Other (21.13%)
ABN - AMRO, 5.39%-5.72%, 3/18/97-12/23/97 20,000,000 19,992,141
Accor S.A., 5.33%-5.36%, 3/11/97-4/23/97
LOC Banque Nationale De Paris 60,000,000 59,465,139
Banca Serfin SA, 5.30%, 2/6/97,
LOC Barclays Bank 15,000,000 14,988,958
Banco Nacional De Mexico,
5.34%, 2/25/97, LOC Barclay Bank 10,000,000 9,964,400
Bank of Nova Scotia,
5.37%-5.41%, 2/12/97-4/21/97 60,000,000 59,845,613
Barclay Bank, 5.35%, 3/17/97 15,000,000 15,000,277
Canadian Imperial Bank of Commerce,
5.38%, 2/3/97 15,000,000 15,000,008
COFCO Capital Corporation,
5.36%, 3/10/97, LOC Credit Suisse 10,000,000 9,944,911
Commed Fuel Co., Inc.
5.32%, 2/7/97, LOC CIBC 20,994,000 20,919,652
5.32%-5.40%, 2/13/97-4/14/97,
LOC Credit Suisse 14,059,000 14,046,534
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)
Daewoo International,
5.36%, 3/12/97, LOC Credit Suisse $10,000,000 $9,941,933
Deutsche Bank, 5.39%-5.70%, 2/3/97-4/28/97 52,000,000 52,000,963
Dresdner Bank, 5.37%, 3/25/97 23,000,000 23,005,659
Formosa Plastics Corporation USA,
5.33%-5.35%, 3/14/97-4/16/97,
LOC ABN - AMRO Bank 30,000,000 29,743,987
Galicia Buenos Aires Funding Corp.,
5.35%, 2/18/97, LOC Dresdner Bank AG 10,000,000 9,974,736
JMG Funding Inc.,
5.34%, 2/13/97, LOC Societe Generale 13,167,000 13,143,563
National Westminister Bank,
5.38%-5.52%, 2/24/97-7/1/97 45,000,000 45,001,020
Petroleo Brasiliero,
5.32%, 4/1/97, LOC Barclays Bank 20,000,000 19,825,622
Rabobank Nederland NY, 5.54%, 12/4/97 14,700,000 14,698,817
Royal Bank of Canada,
5.53%-5.55%, 2/10/97-8/13/97 25,700,000 25,682,623
Sinochem American, Inc., 5.35%-5.43%,
2/14/97-5/2/97, LOC Credit Suisse 22,800,000 22,609,352
Societe Generale,
5.85%-6.12%, 4/15/97-6/10/97 13,000,000 12,998,267
Southwest Student Services Corp.,
5.40%, 2/20/97, LOC Dresdner Bank NY 10,832,000 10,801,129
Sunkyung American Inc., 5.39%-5.44%,
2/10/97-3/18/97, LOC Credit Suisse 15,000,000 14,952,525
Swiss Bank Corp., 5.54%, 3/19/97 14,000,000 14,002,750
Toronto Dominion Holdings, Inc.,
5.26%-5.34%, 3/27/97-4/14/97 48,000,000 47,539,007
-----------
605,089,586
-----------
Business Machines (1.07%)
Pitney Bowes Credit Inc., 5.59%, 3/3/97 10,000,000 9,953,458
Xerox Corporation, 5.30%, 2/7/97 20,600,000 20,581,804
-----------
30,535,262
-----------
Conglomerates (5.03%)
American Brands, 5.29%-5.38%, 2/11/97-4/10/97 56,079,000 (d) 55,816,538
CPC International, 5.30%, 3/13/97 20,000,000 (d) 19,882,222
Pacific Dunlop Holdings, Inc.,
5.31%-5.38%, 2/18/97-4/30/97 65,118,000 (d) 64,612,715
Phillip Morris Companies, Inc.,
5.65%-5.81%, 3/15/97-6/15/97 3,828,000 3,855,704
-----------
144,167,179
-----------
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):
- -------------------------------------------------------------------------------
Drugs & Cosmetics (1.97%)
Bayer Corporation, 5.33%, 2/12/97 $16,600,000 $16,572,965
Pfizer Inc., 5.30%, 3/12/97 20,000,000 19,885,167
Warner Lambert Co., 5.29%, 2/26/97 20,000,000 19,926,528
-----------
56,384,660
-----------
Financial - Auto (2.00%)
Ford Motor Credit Corporation,
5.30%-5.93%, 3/11/97-12/1/97 30,000,000 29,915,611
Toyota Motor Credit Corporation,
5.27%-5.28%, 2/12/97-2/26/97 27,500,000 27,424,938
-----------
57,340,549
-----------
Financial - Diversified Business (12.04%)
American General Finance Corporation,
5.34%-5.85%, 3/12/97-11/15/97 35,700,000 35,486,397
Associates Corporation of North America,
5.55%-6.00%, 6/13/97-6/15/97 11,375,000 11,490,144
Avco Financial Services,
5.29%-5.88%, 3/6/97-11/17/97 13,250,000 (e) 13,216,264
Beneficial Corporation,
5.23%-6.28%, 2/25/97-11/17/97 68,400,000 68,318,111
CIT Group Holdings, 5.55%-5.72%, 7/1/97 4,450,000 4,504,669
General Electric Capital Corporation,
5.34%-5.35%, 5/20/97-6/17/97 40,000,000 39,275,378
Household Finance Company,
5.24%-5.84%, 2/24/97-1/27/98 42,900,000 (e) 42,949,111
Merrill Lynch & Co.,
5.35%-5.61%, 4/4/97-10/16/97 39,000,000 (e) 38,635,029
Morgan Stanley & Company,
5.32%-5.90%, 2/10/97-4/25/97 51,975,000 (e) 51,701,294
Norwest Corporation, 5.54%, 5/1/97 1,800,000 1,815,860
Transamerica Finance Corporation,
5.30%-5.77%, 3/10/97-8/15/97 37,550,000 37,377,281
-----------
344,769,537
-----------
Financial - Diversified Business, Asset-Backed (22.14%)
Asset Securitization Coop. Corporation,
5.33%-5.38%, 2/25/97-4/7/97 46,925,000 (d) 46,623,041
Barton Capital Corporation,
5.32%-5.40%, 2/20/97-4/18/97 37,299,000 (d) 37,040,907
Delaware Funding Corporation,
5.33%-5.38%, 2/7/97-4/3/97 60,624,000 (d) 60,326,500
Falcon Asset Securitization,
5.32%-5.52%, 2/18/97-4/22/97 73,660,000 (d) 73,207,357
Fleet Funding Corporation,
5.32%-5.40%, 2/13/97-3/5/97 40,000,000 (d) 39,867,861
Monte Rosa Capital Corporation,
5.30%-5.45%, 2/12/97-3/7/97 31,555,000 31,446,629
Preferred Receivables Funding Corporation,
5.30%-5.40%, 2/4/97-3/25/97 70,525,000 70,284,192
Receivables Capital Corporation,
5.33%-5.37%, 2/7/97-5/1/97 65,382,000 (d) 65,052,947
Redwood Receivables Corporation,
5.32%-5.35%, 3/5/97-3/28/97 55,218,000 54,838,279
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, Asset-Backed (continued)
Retailer Funding Corporation, 5.35%, 3/13/97 $20,899,000 $20,774,767
Triple A One Funding,
5.33%-5.40%, 2/10/97-2/27/97 55,197,000 (d) 55,053,887
Triple A One Plus Funding Corporation,
5.40%, 2/13/97 10,000,000 (d) 9,982,000
Windmill Funding Corporation,
5.32%-5.40%, 2/6/97-3/18/97 69,738,000 (d) 69,513,730
-----------
634,012,097
-----------
Food & Beverage (1.48%)
Campbell Soup Company, 5.29%, 3/3/97 12,550,000 12,494,675
HJ Heinz Company, 5.30%, 3/11/97 17,000,000 16,904,895
Kellogg Company, 5.62%, 7/15/97 5,000,000 5,006,184
PepsiCo Incorporated, 5.96%, 5/15/97 1,000,000 1,002,448
Sysco Corporation, 5.45%, 2/25/97 7,000,000 6,974,567
-----------
42,382,769
-----------
Metals & Mining (0.51%)
Aluminum Company of America, 5.40%, 2/20/97 14,600,000 14,558,390
-----------
Municipals (4.22%)
Arapahoe County, CO Series A,
5.75%-6.00%, 11/1/10-11/1/13,
LOC Banque Nationale De Paris 6,430,000 (b) 6,430,000
Bedford County Virginia Industrial
Development Authority
5.50%, 12/1/25,
LOC Canadian Imperial Bank of Commerce 15,000,000 (b) 15,000,000
5.50%, 12/1/25, LOC Societe Generale 8,000,000 (b) 8,000,000
City of Palmdale,
CA Community Redevelopment, 5.82%, 11/15/97 10,000,000 10,069,340
MetroCrest Hospital Authority,
5.48%, 3/3/97, LOC Bank of New York 10,000,000 9,954,951
New York City, New York G.O.,
5.50%-5.55%, 2/4/97-8/1/15, FGIC Insured 37,145,000 (b) 37,145,000
Oakland Alameda County Stadium, 5.44%, 3/7/97,
LOC Canadian Imperial Bank of Commerce 9,900,000 9,900,000
Siouxland Regional Cancer Center,
5.74%, 12/1/14, MBIA Insured 4,375,000 (b) 4,375,000
West Baton Rouge Ind. Dev.
(Dow Chemical Co.), 5.39%-5.50%, 11/1/25 20,000,000 (b) 20,000,000
-----------
120,874,291
-----------
Oil Services (0.77%)
Mobil Australia, 5.32%, 2/3/97 20,000,000 (d) 19,994,089
Texaco Capital Corp., 5.82%, 11/15/97 2,000,000 2,047,932
-----------
22,042,021
-----------
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):
- -------------------------------------------------------------------------------
Printing & Publishing (0.42%)
Donnelley (R.R.) & Sons Co., 5.28%, 2/25/97 $12,000,000 $11,957,760
-----------
Restaurants & Lodging (0.07%)
McDonalds Corporation, 5.81%, 2/18/97 2,000,000 2,002,818
-----------
Retail Stores (0.11%)
Dillard Department Stores, 5.80%, 9/15/97 3,000,000 3,067,963
-----------
Utilities - Electric (3.20%)
Baltimore Gas & Electric Company,
5.27%-5.89%, 2/27/97-7/2/97 23,000,000 22,968,816
Carolina Power & Light,
5.30%-5.38%, 2/20/97-3/11/97 37,045,000 36,905,353
Duke Power Company, 5.64%, 8/12/97 2,060,000 2,059,793
Northern States Power, 5.28%, 2/7/97 10,000,000 9,991,200
Southern California Edison,
5.33%-5.42%, 3/3/97-4/4/97 20,000,000 19,839,725
-----------
91,764,887
-----------
Utilities - Telephone (1.75%)
Bellsouth Capital Funding,
5.29%-5.33%, 2/3/97-2/6/97 38,050,000 38,028,645
Bellsouth Telecommunications, 5.50%, 2/11/97 12,000,000 11,981,667
-----------
50,010,312
- -------------------------------------------------------------------------------
Total Commercial Paper & Other
Corporate Obligations (cost: $2,666,689,226) $2,666,689,226
- -------------------------------------------------------------------------------
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 (7.12%):
- -------------------------------------------------------------------------------
Downey Savings & Loan Assoc.,
5.35%, 4/14/97, LOC Fed. Home Loan Bank $15,000,000 $14,839,500
Federal Farm Credit Bank,
5.29%-5.58%, 3/17/97-10/1/97 55,000,000 (e) 54,993,182
Federal Home Loan Bank,
5.48%-5.84%, 3/20/97-12/16/97 19,500,000 (e) 19,492,623
Federal National Mortgage Association,
5.21%-5.71%, 4/17/97-11/10/97 65,000,000 (e) 65,096,029
Federal National Mortgage Corp.,
5.40%, 12/3/97 10,000,000 9,994,299
Private Export Funding Corp., 5.78%, 4/30/97 5,000,000 5,027,385
Secondary Market Services,
5.32%-5.40%, 2/5/97-2/24/97,
LOC Student Loan Marketing Assoc. 34,500,000 34,451,031
- -------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $203,894,049) $203,894,049
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $2,870,583,275) (c) $2,870,583,275
- -------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) Securities are valued in accordance with procedures described in note 2 to
the financial statements.
(b) All or a portion consists of securities with interest rates that vary to
reflect current market conditions; rate shown is the effective rate on
January 31, 1997. 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) All or a portion consists of 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) All or a portion consists of short-term securities with interest rates
that reset at set intervals at rates that are based on specific market
indices. Rate shown is the effective rate on January 31, 1997.
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1997
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Government & Agencies Securities (100.80%):
- -------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corporation Notes (28.53%)
5.21%-6.04%, 2/10/97-12/3/97 $49,500,000 (c) $49,266,640
Federal National
Mortgage Association Notes (25.70%)
5.21%-5.56%, 2/12/97-9/12/97 44,590,000 (c) 44,376,944
Federal Home Loan Bank Notes (19.52%)
5.22%-5.98%, 2/3/97-12/16/97 33,710,000 33,701,944
Federal Farm Credit Bank Notes (22.27%)
5.29%-5.71%, 2/3/97-2/3/98 38,450,000 (c) 38,447,588
Student Loan Marketing Association Notes (1.30%)
5.44%-5.82%, 2/14/97-1/21/98 2,250,000 (c) 2,250,743
U.S. Treasury Notes (3.48%)
5.53%-5.71%, 3/31/97-4/30/97 6,000,000 6,012,044
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $174,055,903) (b) $174,055,903
- -------------------------------------------------------------------------------
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) All or a portion of the balance consists of securities with interest rates
that reset at set intervals at rates that are based on specific market
indices. Rate shown is the effective rate on January 31, 1997.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1997
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Alabama (0.25%)
Baldwin County Board of Ed. School Warrants
Series C, 3.92%, 6/1/97, FSA Insured $1,000,000 $1,003,758
-----------
Arizona (0.20%)
Board of Regents Refunding Rev. Series 1992,
3.80%, 6/1/97, FGIC Insured 800,000 803,561
-----------
Arkansas (0.25%)
Development Finance Authority
Correction Facility Revenue,
3.65%, 10/1/97, MBIA Insured 1,000,000 1,000,000
-----------
California (2.74%)
Los Angeles Regional Airports
Improvement Corp. Lease Revenue
Series E, 3.65%, 12/1/24,
LOC Wachovia Bank of Georgia 300,000 (b) 300,000
Series 1984E, 3.65%, 12/1/24,
LOC Wachovia Bank of Georgia 300,000 (b) 300,000
School Cash Reserve Prog. Auth.
1995 Pool Bond Series A, 4.02%, 7/2/97 10,300,000 10,334,330
-----------
10,934,330
-----------
Colorado (4.17%)
Adams County Family Housing Revenue
(Hunters Cove Project) Series 1985A,
3.70%, 1/15/14, LOC GECC 7,500,000 (b) 7,500,000
Arapahoe County (Dove Valley Metropolitan
District) Series 1996B, 3.90%, 11/1/97,
LOC Banque National De Paris 820,000 820,000
Denver City & County, 5.00%, 10/1/97 1,000,000 1,007,402
Eagle County Revenue Bonds Series 1995,
3.60%, 10/1/35, LOC Nationsbank Texas N.A. 6,000,000 (b) 6,000,000
Greenwood Metro District G.O.,
4.50%, 12/1/97, MBIA Insured 1,310,000 1,320,585
-----------
16,647,987
-----------
District of Columbia (0.28%)
Washington D.C. G.O. Series A-4, 3.70%,
10/1/07, LOC Toronto Dominion Bank 1,100,000 (b) 1,100,000
-----------
Florida (7.30%)
City of Orlando, 3.50%, 3/6/97 2,100,000 2,100,000
Dade County School Board
Certificates of Participation Series A,
3.70%, 5/1/97, AMBAC Insured 1,685,000 1,685,000
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)
- -------------------------------------------------------------------------------
Florida (continued)
Housing Finance Authority MFHR Bonds
(Oaks-Orange Park),
3.55%, 7/1/07, LOC Chemical Bank $2,580,000 (b) $2,580,000
Jacksonville Electric Authority
3.45%-3.50%, 3/3/97-4/4/97 9,400,000 9,400,000
Series 3A, 3.60%, 4/1/97 1,360,000 1,387,371
Series E, 3.50%, 4/4/97 900,000 900,000
Orange County Cap. Improvement Notes,
3.55%, 2/6/97-5/6/97 10,000,000 10,000,000
Palm Bay, 3.60%, 3/1/97, MBIA Insured 1,065,000 1,064,918
-----------
29,117,289
-----------
Georgia (1.26%)
Clayton County MFHR Series 1990
(Kings Arena Apartment), 3.55%,
1/1/21, FSA Insured 2,215,000 (b) 2,215,000
State of Georgia G.O., 3.82%, 5/1/97 2,750,001 2,824,580
-----------
5,039,580
-----------
Hawaii (2.51%)
Honolulu City & County,
3.45%-3.55%, 2/7/97-4/4/97 10,000,000 10,000,000
-----------
Idaho (0.50%)
State Health Facilities Authority Revenue
(St. Luke's Regional Medical Center),
3.70%, 5/1/22, LOC Credit Suisse 2,000,000 (b) 2,000,000
-----------
Illinois (17.72%)
City of Springfield Community Improvement Revenue
Bonds Series 1985, (Realing Restoration Project),
3.80%, 12/1/15 3,300,000 (b) 3,300,000
City of Springfield MFHR
(OT Center Limited Project), 3.75%, 12/1/15 7,700,000 (b) 7,700,000
Development Finance Authority
(A.E. Stanley Manufacturing), 3.50%, 12/1/05,
LOC Union Bank of Switzerland 1,600,000 (b) 1,600,000
Development Finance Authority Series 1995
(Latin School of Chicago), 3.60%, 6/1/30,
LOC Bank of America 13,900,000 (b) 13,900,000
Education Facilities Authority
Demand Revenue Bonds,
3.50%, 12/1/25,
LOC First National Bank of Chicago 2,900,000 (b) 2,900,000
Series 1985B, 3.50%, 11/1/15,
LOC First National Bank of Chicago 7,300,000 (b) 7,300,000
Health Facilities Authority Demand Revenue Bonds
Alexian Brothers Medical Center,
3.50%, 3/10/97, MBIA Insured 3,350,000 3,350,000
University of Chicago Clinics,
7.60%-8.00%, 8/1/05, MBIA Insured 3,655,000 (b) 3,803,368
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)
Health Facilities Authority
Healthcorp Affiliates Series 1990,
3.70%, 11/1/20, LOC Rabobank Nederland $3,400,000 (b) $3,400,000
Joliet Regional Port District IDR Bonds,
3.75%, 7/15/03 13,695,000 (b) 13,695,000
Lake County Community School District #60,
3.65%, 12/1/97, FSA Insured 1,000,000 1,024,611
Peoria G.O. Series A,
3.60%, 12/15/97, FGIC Insured 1,290,000 1,299,701
State Sales Tax Revenue
Series C, 3.80%, 6/15/15 2,000,000 (b) 2,061,413
Series D, 3.73%, 6/15/09 1,000,000 (b) 1,033,610
Series E, 3.60%, 6/15/15 1,000,000 (b) 1,035,996
State Toll Highway Authority Revenue Bonds,
Series 1993B, 3.50%, 1/1/10, MBIA Insured 3,300,000 (b) 3,300,000
-----------
70,703,699
-----------
Indiana (3.48%)
Health Facilities Financing Authority
(Capital Access Designated Pool Program)
3.50%, 12/1/02-1/1/12, LOC Comerica Bank 9,880,000 (b) 9,880,000
State Hospital Equipment
Finance Authority Revenue
Series 1985A, 3.50%, 12/1/15, MBIA Insured 4,000,000 (b) 4,000,000
-----------
13,880,000
-----------
Iowa (4.38%)
Des Moines HFA (Small Business Loan Program),
3.70%, 5/1/97, LOC Federal Home Loan Bank 6,635,000 6,635,000
Higher Education Loan Authority
Revenue Private College Facilities
3.60%, 8/1/97, MBIA Insured 1,015,000 1,018,164
Mount Vernon Private College Project (Cornell)
Series 1985, 3.50%, 10/1/15,
LOC First Bank Minneapolis, NA 3,200,000 (b) 3,200,000
Polk County Hospital Revenue Bonds,
3.55%, 12/1/05, MBIA Insured 5,640,000 (b) 5,640,000
State School Corporation Series 1996A,
3.90%, 6/27/97, Capital Guaranty Insured 1,000,000 1,003,269
-----------
17,496,433
-----------
Kansas (5.54%)
City of Burlington PCR
3.45%-3.60%, 2/5/97-2/19/97,
LOC Toronto Dominion Bank 15,900,000 15,900,000
3.55%, 9/1/15, LOC Societe Generale 4,000,000 (b) 4,000,000
State Development Finance Authority
Health Facilities Revenue,
(St. Lukes Shawnee Mission)
5.00%, 11/15/97, MBIA Insured 2,190,000 2,213,399
-----------
22,113,399
-----------
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)
- -------------------------------------------------------------------------------
Louisiana (1.45%)
Rapides Parish PCR
(Central Louisiana Electric Co. Project),
3.45%, 7/1/18, LOC Swiss Bank $1,000,000 (b) $1,000,000
State Public Facilities Authority,
3.50%, 2/6/97 3,000,000 3,000,000
West Baton Rouge Industrial District #3,
3.50%, 2/5/97 1,800,000 1,800,000
-----------
5,800,000
-----------
Maryland (3.80%)
Anne Arundal County
(Baltimore Gas & Electric), 3.60%, 4/2/97 9,000,000 9,000,000
Montgomery County Housing Opportunity,
3.65%, 11/1/07, LOC GECC 2,000,000 (b) 2,000,000
Montgomery County Public Improvement
Series A-1, 3.80%, 7/1/07,
Capital Guaranty Insured 2,100,000 (b) 2,100,000
State of Maryland G.O., 3.50%, 10/15/97 2,010,000 (b) 2,052,047
-----------
15,152,047
-----------
Massachusetts (1.14%)
Boston Hospital Revenues,
3.47%, 8/15/97, FHA Insured 1,000,000 1,017,229
Commonwealth of Massachusetts G.O. Series 1990B,
3.60%, 12/1/97, LOC National Westminster 1,000,000 (b) 1,000,000
State Income Tax Fiscal Recovery Loan Bonds
Series 1990A, 3.90%, 6/1/97, FGIC Insured 2,500,000 2,531,873
-----------
4,549,102
-----------
Michigan (0.27%)
School District of Ypsilanti G.O.,
3.70%, 5/1/97, FGIC Insured 1,075,000 1,074,847
-----------
Minnesota (1.45%)
Duluth Independent School Series A,
(School District Credit Enhancement Program),
3.90%, 9/30/97 1,000,000 1,000,633
State Housing Finance Agency SFMR
Series 1986A, 3.70%-3.85%, 8/1/11 2,475,000 (b) 2,475,000
State Tax Certs. of Indebtedness Series A,
(School District Credit Enhancement Program),
3.95%, 8/19/97 2,300,000 2,306,633
-----------
5,782,266
-----------
Missouri (0.45%)
State Environmental Improvement
& Energy Resource Authority PCR
(Monsanto Corporation), 3.60%, 2/1/09 1,800,000 (b) 1,800,000
-----------
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)
- -------------------------------------------------------------------------------
Montana (2.28%)
State Health Facilities Authority Revenue Bonds
Series A, 3.55%, 12/1/15, FGIC Insured $9,105,000 (b) $9,105,000
-----------
Nebraska (2.41%)
Investment Finance Auth. Hospital Rev. Bonds,
3.55%, 12/1/15, FGIC Insured 4,100,000 (b) 4,100,000
Lincoln Electric System, 3.50%, 3/7/97 3,500,000 3,500,000
Omaha Public Power District Electric Revenue,
3.68%, 2/1/98 2,000,000 2,033,339
-----------
9,633,339
-----------
Nevada (1.29%)
Clark County Airport System Refunding
Revenue Notes Series 1993A,
3.50%, 7/1/12, MBIA Insured 5,140,000 (b) 5,140,000
-----------
New Jersey (2.36%)
Economic Development Authority,
3.76%, 12/1/04, LOC Credit Suisse 1,200,000 (b) 1,200,000
Tax and Revenue Anticipation Notes
3.50%, 2/4/97-2/11/97 8,200,000 8,200,000
-----------
9,400,000
-----------
New Mexico (1.13%)
City of Albuquerque Revenue Bonds,
3.55%, 7/1/22, LOC CIBC 4,500,000 (b) 4,500,000
-----------
New York (2.95%)
Averill Park School District,
3.75%, 6/15/97, FSA Insured 1,180,000 1,184,765
New York City G.O.
3.75%, 10/1/20, FGIC Insured 4,500,000 (b) 4,500,000
Series 94-B, 3.75%, 8/15/19,
LOC Dai Ichi Kangyo Bank 1,800,000 (b) 1,800,000
Series 1987C, 3.60%, 2/1/97, FGIC Insured 1,000,000 1,000,000
New York City Water Finance Authority
3.75%-3.85%, 6/15/97-6/15/25, FGIC Insured 2,800,000 (b) 2,805,880
Series C, 3.65%, 6/15/23, FGIC Insured 500,000 (b) 500,000
-----------
11,790,645
-----------
North Carolina (0.38%)
Education Facilities Finance Agency Rev.
(Bowman Gray School of Medicine),
3.55%, 9/1/20, LOC Wachovia Bank 1,500,000 (b) 1,500,000
-----------
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)
- -------------------------------------------------------------------------------
North Dakota (1.21%)
State Housing Finance Agency SFMR,
3.70%, 1/1/16 $4,845,000 (b) $4,845,000
-----------
Ohio (1.28%)
Air Quality Development Authority PCR,
3.40%, 2/21/97, FGIC Insured 3,000,000 3,000,000
Akron Sewer System Revenue Bonds Series 1996,
3.80%, 12/1/97, MBIA Insured 1,000,000 1,009,654
State Public Facilities Comm. Higher Education,
3.73%, 5/1/97, AMBAC Insured 1,100,000 1,106,596
-----------
5,116,250
-----------
Oklahoma (0.25%)
Garfield County Industrial Authority PCR,
3.50%, 1/1/25 1,000,000 (b) 1,000,000
-----------
Pennsylvania (9.17%)
Beaver County IDA Pollution
Control Revenue Bonds
3.40%-3.50%, 2/18/97-3/10/97,
LOC Swiss Bank 10,000,000 10,000,000
Lehigh County IDA
(Allegheny Electric Coop.) Series 1985,
3.50%, 12/1/15, LOC Rabobank Nederland 3,000,000 (b) 3,000,000
Philadelphia IDA Series 1986
(Charter Hospital Project),
3.55%, 1/1/01, LOC Bankers Trust Co. 6,175,000 (b) 6,175,000
Quakertown Hospital Authority,
3.55%, 7/1/05, LOC PNC Bank 16,400,000 (b) 16,400,000
Water and Sewer System Revenue Sub.
Series 1995B, 3.62%, 9/1/97, FSA Insured 1,000,000 1,002,120
-----------
36,577,120
-----------
South Carolina (0.58%)
Florence County Hospital Revenue
(McLeod Regional Medical Center)
Series 1985A, 3.50%, 11/1/15, FGIC Insured 2,300,000 (b) 2,300,000
-----------
Tennessee (3.36%)
Clarksville Public Building Authority Revenue
Series 1990, 3.50%, 7/1/13, MBIA Insured 3,042,000 (b) 3,042,000
Shelby County Public Improvement
Series 1989A, 3.75%, 8/1/09 1,000,000 (b) 1,032,901
State of Tennessee G.O. Series A, 5.00%, 5/1/97 5,660,000 5,676,043
Stewart County Bond Anticipation Notes G.O.,
3.63%, 2/15/97 3,650,000 3,651,581
-----------
13,402,525
-----------
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 (4.21%)
Arlington Independent School District
Capital Appreciation Refunding Bonds,
3.67%, 8/15/97, MBIA Insured $1,250,000 $1,225,857
Austin Municipal Multiplier Refunding
Series 1985, 3.95%, 9/1/97 2,085,000 2,038,530
First Colony Municipal Utility
District #4 Refunding,
4.00%, 4/1/97, MBIA Insured 325,000 322,944
Harris County Health Facilities
Development Corp. Hospital Revenue,
3.80%, 10/1/17 1,500,001 (b) 1,579,526
Lone Star Airport Improvement,
3.65%, 12/1/14, LOC Royal Bank of Canada 1,000,000 (b) 1,000,000
Nueces River Authority PCR Series 1985,
3.70%, 12/01/99, LOC Bank of Nova Scotia 4,000,000 (b) 4,000,000
Pine Tree Independent School
District Refunding, 3.85%, 2/15/97 620,000 619,114
State Tax Revenue Anticipation Notes
Series 1996, 3.90%, 8/29/97 6,000,000 6,027,250
-----------
16,813,221
-----------
Utah (3.31%)
State Board of Regents Student Loan Revenue Bonds
Series B, 3.65%, 11/1/00, AMBAC Insured 13,200,000 (b) 13,200,000
-----------
Washington (0.03%)
State Health Care Facilities Authority Revenue
Series A, 3.70%, 1/1/18,
LOC Morgan Guaranty Trust 100,000 (b) 100,000
-----------
Wisconsin (1.47%)
Housing and Economic Development Authority
Home Ownership Revenue Bonds, 3.75%, 3/1/97 3,350,000 3,350,000
Madison Metro School District Capital
Improvement Notes G.O., 3.65%, 4/1/97 1,525,000 1,530,691
Milwaukee Area Technical College G.O.
Series B., 3.85%, 6/1/97 1,000,000 1,003,657
-----------
5,884,348
-----------
Wyoming (3.13%)
Gillette, Campbell County,
3.30%, 3/3/97, LOC Deutsche Bank 1,000,000 1,000,000
Lincoln County PCR
Series 1984A, 3.65%, 11/1/14, Exxon Project 2,000,000 (b) 2,000,000
Series 1984B, 3.65%, 11/1/14, Exxon Project 1,900,000 (b) 1,900,000
Series 1984C, 3.65%, 11/1/14, Exxon Project 1,100,000 (b) 1,100,000
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, 3.70%, 07/1/14,
LOC Societe Generale $4,800,000 (b) $4,800,000
Series 1984B, 3.70%, 07/1/14,
LOC Societe Generale 1,700,000 (b) 1,700,000
-----------
12,500,000
- -------------------------------------------------------------------------------
Total Investments in Securities (cost: $398,805,746) (d) $398,805,746
- -------------------------------------------------------------------------------
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, 1997. 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:
AMBAC - American Municipal Bond Association
Corporation
CIBC - Canadian Imperial Bank of Commerce
FGIC - Financial Guaranty Insurance Corporation
FHA - Federal Housing Administration
FSA - Financial Security Assurance Corporation
GECC - General Electric Capital Corporation
G.O. - General Obligation
HFA - Housing Finance Authority
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
SFMR - Single Family Mortgage Revenue
(d) Also represents cost for federal income tax purposes.
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-fourth day of
March, 1997.
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
