March 6, 1998
To Our Shareholders:
I am pleased to present the January 31, 1998 Semi-Annual Report for the Great
Hall Prime, U.S. Government, Tax-Free, and Institutional Prime Money Market
Funds. This report contains a statement of each Fund's financial condition as
of January 31, 1998, 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.
I am also pleased to report that the U.S. Government Fund has been assigned a
rating of Aaa by Moody's Investors Service, which is their highest rating for a
money market fund.
Short-term interest rates stayed within a rather narrow range during this
period, rising slightly in late November and December, and then returning to
their previous levels. The Federal Reserve made no changes in monetary policy,
reflecting its satisfaction with the current state of the domestic economy.
The economy grew at a brisk pace while unemployment fell to 20 year lows.
Remarkably, inflation actually declined during the year to approximately 2%.
International investors poured money into the U.S. security markets late in
1997, as they sought a safe haven from the Asian financial crisis. This helped
keep U.S. interest rates from rising despite the strong economy. Because of
the stability in rates of money market instruments, the yields on the Great
Hall Money Market Funds remained quite stable during the six-month period.
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 $4.3 billion.
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,
J. Scott Spiker Raye Kanzenbach
Chief Executive Officer Chief Investment Officer
Great Hall Investment Funds, Inc. Great Hall Investments Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1998
<TABLE>
Institutional
Prime U.S. Government Tax-Free Prime
Money Money Money Money
(unaudited) Market Fund Market Fund Market Fund Market Fund
- --------------------------------------------------------------------------------------------------------
<s) <C> <C> <C> <C>
Assets:
Investments in securities
at market value (note 2),
(identified cost $3,510,362,001;
$228,119,789; $438,866,900 and
$108,787,753, respectively........ $3,510,362,001 $228,119,789 $438,866,900 $108,787,753
Cash in bank on demand deposit...... 248,856 3,830 217,716 2,958
Accrued interest receivable......... 13,476,806 869,510 2,807,192 494,989
Organization costs (note 2)......... -- -- -- 7,601
Receivable for investment
securities sold................... -- -- 3,310,777 --
- --------------------------------------------------------------------------------------------------------
Total assets........................ 3,524,087,663 228,993,129 445,202,585 109,293,301
- --------------------------------------------------------------------------------------------------------
Liabilities:
Payable for investment
securities purchased.............. -- -- 2,000,000 5,077,734
Accrued investment advisory fee..... 1,301,703 80,685 186,315 18,963
Other accrued expenses.............. 459,716 63,992 62,378 41,545
- --------------------------------------------------------------------------------------------------------
Total liabilities................... 1,761,419 144,677 2,248,693 5,138,242
- --------------------------------------------------------------------------------------------------------
Net assets applicable to
outstanding capital stock......... $3,522,326,244 $228,848,452 $442,953,892 $104,155,059
- --------------------------------------------------------------------------------------------------------
Represented by:
Capital stock - authorized 100
billion shares of $.01 par value
for each Fund, outstanding
3,522,326,244; 228,848,452;
442,953,892 and 104,155,059
shares, respectively.............. $35,223,262 $2,288,485 $4,429,539 $1,041,551
Additional paid-in capital.......... 3,487,102,982 226,559,967 438,524,353 103,113,508
- --------------------------------------------------------------------------------------------------------
Total - representing net assets
applicable to outstanding
capital stock................... $3,522,326,244 $228,848,452 $442,953,892 $104,155,059
- --------------------------------------------------------------------------------------------------------
Net asset value per share
of outstanding capital stock...... $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF OPERATIONS
Six-months ended January 31, 1998
<TABLE>
Institutional
Prime U.S. Government Tax-Free Prime
Money Money Money Money
(unaudited) Market Fund Market Fund Market Fund Market Fund
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income:
Interest...................... $95,457,283 $5,941,268 $8,263,516 $1,765,649
- -----------------------------------------------------------------------------------------------
Expenses (note 4):
Investment advisory fee....... 7,669,244 472,264 1,118,815 77,328
Custodian, accounting and
transfer agent fees......... 139,000 29,550 42,000 16,947
Sub-accounting fees........... 1,685,000 45,000 51,000 820
Reports to shareholders....... 550,564 14,500 10,089 1,900
Amortization of
organization costs.......... -- -- -- 816
Directors' fees............... 6,000 6,000 6,000 4,000
Audit and legal fees.......... 15,000 11,500 7,250 6,500
Registration fees............. 633,317 15,900 55,300 33,750
Administrative................ 26,500 2,800 2,750 1,000
Other expenses................ 37,000 26,339 4,629 2,796
- -----------------------------------------------------------------------------------------------
Total expenses.................. 10,761,625 623,853 1,297,833 145,857
Less expenses voluntarily
waived or absorbed
by Advisor.................... -- -- -- (28,050)
- -----------------------------------------------------------------------------------------------
Total net expenses.............. 10,761,625 623,853 1,297,833 117,807
- -----------------------------------------------------------------------------------------------
Investment income -- net........ 84,695,658 5,317,415 6,965,683 1,647,842
- -----------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations..... $84,695,658 $5,317,415 $6,965,683 $1,647,842
- -----------------------------------------------------------------------------------------------
* Period from August 11, 1997 (commencement of operations) to January 31, 1998.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Prime U.S. Government
Money Market Fund Money Market Fund
- --------------------------------------------------------------------------------------------------
Six-month Year Six-month Year
period ended Ended period ended Ended
1/31/98 7/31/97 1/31/98 7/31/97
(unaudited) (unaudited)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Investment income, net.... $84,695,658 $139,170,560 $5,317,415 $8,454,406
- --------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations........... 84,695,658 139,170,560 5,317,415 8,454,406
- --------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Investment income
-- net.................. (84,695,658) (139,170,560) (5,317,415) (8,454,406)
- --------------------------------------------------------------------------------------------------
Total distributions
to shareholders.......... (84,695,658) (139,170,560) (5,317,415) (8,454,406)
- --------------------------------------------------------------------------------------------------
Capital share transactions
at net asset value of
$1.00 per share:
Proceeds from sales..... 1,404,980,428 1,741,550,277 185,540,345 220,284,955
Shares issued for
reinvestment of
distributions......... 84,695,658 139,170,560 5,317,415 8,454,406
Payment for
shares redeemed....... (1,097,203,827) (1,156,322,769) (144,164,803) (193,269,020)
- --------------------------------------------------------------------------------------------------
Increase in net
assets from capital
share transactions....... 392,472,259 724,398,068 46,692,957 35,470,341
- -------------------------------------------------------------------------------------------------
Total increase
in net assets............. 392,472,259 724,398,068 46,692,957 35,470,341
- -------------------------------------------------------------------------------------------------
Net assets at
beginning of period....... 3,129,853,985 2,405,455,917 182,155,495 146,685,154
- -------------------------------------------------------------------------------------------------
Net assets at
end of period............. $3,522,326,244 $3,129,853,985 $228,848,452 $182,155,495
- -------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Tax-Free Institutional Prime
Money Market Fund Money Market Fund
- --------------------------------------------------------------------------------------------------
Six-month Year Six-month Year
period ended Ended period ended Ended
1/31/98 7/31/97 1/31/98 7/31/97
(unaudited) (unaudited)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Investment income, net.... $6,965,683 $12,139,464 $1,647,842 --
- --------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations........... 6,965,683 12,139,464 1,647,842 --
- --------------------------------------------------------------------------------------------------
Distributions to
shareholders from:
Investment income
-- net.................. (6,965,683) (12,139,464) (1,647,842) --
- --------------------------------------------------------------------------------------------------
Total distributions
to shareholders.......... (6,965,683) (12,139,464) (1,647,842) --
- --------------------------------------------------------------------------------------------------
Capital share transactions
at net asset value of
$1.00 per share:
Proceeds from sales..... 261,276,716 541,367,559 211,139,095 --
Shares issued for
reinvestment of
distributions......... 6,965,683 12,139,464 1,647,842 --
Payment for
shares redeemed....... (248,028,916) (489,919,846) (108,631,878) --
- --------------------------------------------------------------------------------------------------
Increase in net
assets from capital
share transactions....... 20,213,483 63,587,177 104,155,059 --
- --------------------------------------------------------------------------------------------------
Total increase
in net assets............. 20,213,483 63,587,177 104,155,059 --
- --------------------------------------------------------------------------------------------------
Net assets at
beginning of period....... 422,740,409 359,153,232 -- --
- --------------------------------------------------------------------------------------------------
Net assets at
end of period............. $442,953,892 $422,740,409 $104,155,059 --
- --------------------------------------------------------------------------------------------------
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 four funds; Prime, U.S. Government, Tax-Free and the Institutional
Prime Money Market Funds (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 Institutional Prime Money Market Fund. These
costs are being amortized over 60 months on a straight-line basis.
<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, 1997
to January 31, 1998 were as follows:
Purchases Sales Proceeds
---------------------------------------------------------------------------
Prime Money Market Fund................. $9,403,854,438 $9,011,006,126
U.S. Government Money Market Fund....... 3,670,246,848 3,623,361,895
Tax-Free Money Market Fund.............. 540,110,179 522,185,916
Institutional Prime Money Market Fund... 792,314,798 683,527,045
4. Fees and Expenses
The Company has entered into an investment advisory and management
agreement with Insight Investment Management (IIM), formerly Interra
Advisory Services, Inc., under which IIM manages each fund's assets and
furnishes related office facilities, equipment, research and personnel.
The agreement requires each fund to pay IIM 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. The fee for the Institutional Prime Money
Market Fund is equal to an annual rate of 0.25% of net assets. IIM
voluntarily waived a portion of the advisory fees for the Institutional
Prime Money Market Fund for the current period.
Each of the four funds has also entered into sub-accounting agreements with
affiliate Dain Rauscher Incorporated (DRI) where the firm performs
various transfer and dividend disbursing agent services. The fee, which is
paid monthly to DRI 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Legal fees and expenses of $23,402 for the period ended January 31, 1998
were paid to a law firm of which the secretary of the funds is a partner.
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
1/31/98 7/31/97 7/31/96 7/31/95 7/31/94
(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 0.05 0.03
Distributions to shareholders
from investment income............ (0.03) (0.05) (0.05) (0.05) (0.03)
--------------------------------------------------------------------------------------------------------------
Net asset
value, end of period.............. $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------------------------------
Total return....................... 2.6% 4.9% 5.0% 4.9% 2.8%
Net assets at end
of period (000s omitted).......... $3,522,326 $3,129,854 $2,405,456 $1,598,925 $1,029,775
Ratio of expenses to
average daily net assets**........ 0.64%* 0.64% 0.70% 0.77% 0.80%
Ratio of net investment
income to average
daily net assets** 5.07%* 4.90% 4.93% 4.93% 2.81%
--------------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
** Various fund fees and expenses were voluntarily waived or absorbed by
IIM for the Prime Money Market Fund during the period 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.
<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
1/31/98 7/31/97 7/31/96 7/31/95 7/31/94
(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 0.05 0.03
Distributions to shareholders
from investment income............ (0.03) (0.05) (0.05) (0.05) (0.03)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period..... $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------------------------------
Total return....................... 2.5% 4.8% 4.9% 4.8% 2.7%
Net assets at end
of period (000s omitted).......... $228,848 $182,155 $146,685 $122,249 $56,815
Ratio of expenses to
average daily net assets.......... 0.59%* 0.60% 0.65% 0.73% 0.78%
Ratio of net investment
income to average
daily net assets.................. 5.01%* 4.85% 4.87% 4.94% 2.73%
--------------------------------------------------------------------------------------------------------------
</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
1/31/98 7/31/97 7/31/96 7/31/95 7/31/94
(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 0.03 0.02
Distributions to shareholders
from investment income............ (0.02) (0.03) (0.03) (0.03) (0.02)
--------------------------------------------------------------------------------------------------------------
Net asset value, end of period..... $1.00 $1.00 $1.00 $1.00 $1.00
--------------------------------------------------------------------------------------------------------------
Total return....................... 1.6% 3.0% 3.0% 3.1% 2.0%
Net assets at end
of period (000s omitted).......... $442,954 $422,740 $359,153 $363,273 $275,278
Ratio of expenses to
average daily net assets.......... 0.58%* 0.58% 0.59% 0.60% 0.65%
Ratio of net investment
income to average
daily net assets.................. 3.11%* 3.02% 3.03% 3.14% 1.98%
--------------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. Financial Highlights (continued)
Institutional Prime Money Market Fund
---------------------------------------------------------------------------
Period from
August 11, 1997* to
January 31, 1998
(unaudited)
---------------------------------------------------------------------------
Net asset value, beginning of period............................ $1.00
---------------------------------------------------------------------------
Income from investment operations............................... 0.03
Distributions to shareholders from investment income............ (0.03)
---------------------------------------------------------------------------
Net asset value, end of period.................................. $1.00
Net assets at end of period (000s omitted)...................... $104,155
Ratio of expenses to average daily net assets................... 0.38%**
Ratio of net investment income to average daily net assets...... 5.33%**
---------------------------------------------------------------------------
* Commencement of operations.
** Adjusted to an annual basis. Various fund fees and expenses were
voluntarily waived or absorbed by IIM for the Institutional Prime Money
Market Fund during the period ended January 31, 1998. Had the Fund
paid all expenses, the ratio of expenses and net investment income to
average daily net assets would have been 0.47%/5.24% for the period
ended January 31, 1998.
<PAGE>
PRIME MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1998
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Percentages of each investment category relate to total net assets.)
Commercial Paper & Other Corporate Obligations (99.37%):
- -------------------------------------------------------------------------------
Agricultural Products (0.71%)
Archer Daniels Midland Company, 5.70%, 3/5/98 $25,000,000 $24,873,333
------------
Banks - Domestic (16.57%)
AES Hawaii, Inc.,
5.44%, 3/20/98, LOC Bank of America 16,373,000 16,256,715
Bank of America, 5.50%-6.00%, 4/29/98-10/22/98 35,000,000 34,993,113
Bank of New York, 5.80%, 3/3/98 15,000,000 14,999,410
Bankers Trust Company,
5.69%-5.97%, 8/7/98-1/8/99 45,000,000 44,991,662
Bank One Columbus N.A., 5.68%, 5/18/98 20,000,000 (d) 19,996,667
Comerica Bank of Detroit, 5.75%-6.00%,
5/12/98-10/27/98 61,350,000 (d) 61,374,818
Commed Fuel Company, Inc., 5.44%-5.70%,
2/13/98-4/24/98, LOC First Chicago 24,130,000 23,988,369
First Bank, Minneapolis, N.A., 5.52%, 6/1/98 10,000,000 (d) 9,998,392
First National Bank of Chicago, 5.62%, 4/6/98 24,700,000 24,701,732
Fifth Third Bank, Cincinnati,
5.47%-5.49%, 3/16/98-3/24/98 50,000,000 50,000,000
Formosa Plastics USA,
5.50%, 6/4/98, LOC Bank of America 7,300,000 7,162,821
Key Bank N.A., Cleveland, 5.89%, 3/11/98 20,000,000 19,999,184
Morgan (J.P.) and Company, 5.44%, 3/17/98 30,000,000 29,800,533
Nations Bank, 5.50%-5.66%, 3/11/98-5/26/98 73,600,000 73,599,954
Norwest Corporation,
5.69%-5.73%, 2/2/98-2/20/98 30,000,000 29,952,267
PNC Bank, N.A., 5.55%-5.72%, 4/7/98-6/5/98 35,000,000 (d) 35,001,681
Suntrust Bank, 5.47%-5.54%, 2/4/98-4/13/98 35,000,000 34,993,075
Wachovia Bank, 5.48%-5.55%, 3/19/98-4/8/98 51,900,000 51,900,486
------------
583,710,879
------------
Banks - Other (19.16%)
ABN - AMRO, 5.81%-6.03%, 3/10/98-6/11/98 25,000,000 (d) 24,999,893
Accor S.A., 5.42%-5.60%, 2/5/98-4/8/98,
LOC Banque Nationale De Paris 29,700,000 29,495,231
Banca Serfin SA, 5.74%,
2/26/98, LOC Barclays Bank 10,000,000 9,960,139
Banco Nacional De Mexico, 5.47%-5.48%,
3/13/98-3/23/98, LOC Barclays Bank 26,150,000 25,969,599
Bank of Nova Scotia,
5.50%-5.93%, 4/27/98-10/1/98 44,700,000 44,675,256
Banque National De Paris,
5.47%-5.58%, 3/9/98-4/8/98 29,500,000 29,350,556
Barclays Bank, 5.87%, 8/25/98 18,000,000 17,986,825
Canadian Imperial Bank of Commerce,
5.76%-5.79%, 2/3/98-2/27/98 25,000,000 24,999,866
Cemex S.A., 5.70%, 2/18/98, LOC Credit Suisse 15,000,000 14,959,625
Deutsche Bank,
5.40%-5.98%, 4/8/98-9/15/98 63,300,000 62,906,092
Formosa Plastics USA, 5.42%-5.55%,
3/17/98-5/7/98, LOC ABN - AMRO Bank 47,300,000 46,874,460
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)
JMG Funding Inc., 5.51%,
3/2/98, LOC Societe Generale $12,977,000 $12,919,400
National Westminister Bank, 5.69%, 7/6/98 31,500,000 31,510,435
Pemex Capital, Inc., 5.43%-5.70%,
4/22/98-5/14/98, LOC Societe Generale 18,900,000 18,849,128
Pemex Capital, Inc.,
5.70%, 2/18/98, LOC Swiss Bank 18,200,000 17,948,536
Petroleo Brasiliero,
5.57%, 3/16/98, LOC Barclays Bank 20,000,000 19,866,939
Rabobank Nederland NY,
5.54%-5.97%, 2/4/98-4/6/98 65,000,000 65,004,416
Royal Bank of Canada,
6.05%-6.24%, 3/24/98-4/6/98 15,000,000 14,998,324
Sinochem American, Inc., 5.50%-5.71%,
3/6/98-3/12/98, LOC Credit Suisse 23,000,000 22,868,752
Societe Generale, 5.80%, 2/11/98 25,000,000 25,000,000
Sunkyung American Inc., 5.64%-5.76%,
2/3/98-3/13/98, LOC Credit Suisse 25,000,000 24,931,300
Swiss Bank Corporation,
5.67%-5.74%, 2/17/98-4/2/98 45,000,000 45,002,503
Toronto Dominion Holdings, Inc.,
5.43%-5.67%, 3/10/98-5/4/98 44,275,000 43,820,991
------------
674,898,266
------------
Chemicals (1.29%)
Henkel Corporation,
5.43%-5.45%, 3/23/98-4/17/98 46,000,000 (c) 45,564,755
------------
Conglomerates (1.67%)
Pacific Dunlop Holdings, Inc.,
5.73%-5.75%, 3/2/98-3/5/98 49,000,000 (c) 48,764,031
Pacific Dunlop Limited, 5.80%, 2/19/98 10,000,000 (c) 9,971,000
------------
58,735,031
------------
Drugs and Cosmetics (1.97%)
American Home Products Corporation,
5.72%-5.73%, 2/20/98-3/10/98 36,000,000 (c) 35,845,396
Bayer Corporation, 5.72%, 2/17/98 33,690,000 (c) 33,604,353
------------
69,449,749
------------
Electronics (0.28%)
Vermont American Corporation,
5.47%, 3/10/98, Guaranty: Emerson Electric 10,066,000 (c) 10,009,410
------------
Financial - Auto (2.27%)
Ford Motor Credit Corporation,
5.51%-6.25%, 2/26/98-4/10/98 33,800,000 33,494,807
Toyota Motor Credit Corporation,
5.42%-5.75%, 2/18/98-4/10/98 46,600,000 46,367,158
------------
79,861,965
------------
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 (16.55%)
American General Finance Corporation,
5.43%-5.75%, 2/20/98-4/27/98 $50,495,000 $50,191,513
Associates Corporation of North America,
5.46%-5.88%, 2/10/98-9/1/98 47,295,000 47,007,110
Avco Financial Services,
5.71%-6.33%, 3/23/98-5/1/98 29,925,000 (d) 29,719,673
Beneficial Corporation,
5.55%-5.72%, 2/15/98-11/30/98 65,505,000 65,241,903
CIT Group Holdings,
5.45%-6.17%, 2/12/98-5/5/98 74,490,000 (d) 74,161,876
Commercial Credit Corporation,
5.43%-5.74%, 2/2/98-4/9/98 67,800,000 67,429,898
General Electric Capital Corporation,
5.43%-5.75%, 2/2/98-4/21/98 45,000,000 44,607,661
Household Finance Company,
5.68%-6.00%, 2/17/98-9/4/98 47,000,000 (d) 46,919,682
Merrill Lynch & Co.,
5.49%-5.82%, 2/6/98-8/3/98 65,000,000 (d) 65,003,937
Morgan (J.P.) and Company,
5.42%-5.75%, 2/3/98-4/8/98 24,531,000 24,392,360
Morgan Stanley Dean Witter Discover,
5.47%-5.62%, 3/6/98-1/15/99 50,940,000 (d) 50,917,272
Norwest Corporation, 5.47%, 3/11/98 7,460,000 7,416,927
U.S. Bancorp, 5.46%, 4/29/98 10,000,000 9,868,050
------------
582,877,862
------------
Financial - Diversified Business, Asset-Backed (20.79%)
Asset Securitization Coop. Corporation,
5.45%-5.75%, 2/19/98-3/6/98 42,000,000 (c) 41,829,658
Barton Capital Corporation,
5.47%-5.81%, 2/2/98-3/31/98 58,778,000 (c) 58,565,881
Delaware Funding Corporation,
5.44%-5.70%, 2/12/98-4/24/98 68,728,000 (c) 68,255,114
Edison Asset Securitization,
5.47%-5.52%, 2/23/98-3/18/98 56,526,000 (c) 56,241,893
Falcon Asset Securitization,
5.43%-5.48%, 3/13/98-3/23/98 42,985,000 (c) 42,683,877
Fleet Funding Corporation,
5.45%-5.78%, 2/5/98-3/12/98 46,851,000 (c) 46,683,172
Matterhorn Capital Corporation, 5.77%, 2/13/98 44,854,000 44,767,482
Monte Rosa Capital Corporation,
5.50%-5.85%, 2/13/98-3/2/98 40,405,000 (c) 40,281,743
Preferred Receivables Funding Corporation,
5.49%-5.80%, 2/10/98-3/3/98 74,700,000 (c) 74,510,169
Receivables Capital Corporation,
5.49%-5.79%, 2/5/98-3/4/98 72,950,000 (c) 72,738,230
Redwood Receivables Corporation,
5.55%-5.85%, 2/2/98-2/24/98 60,291,000 (c) 60,184,762
Triple A One Funding,
5.50%-5.80%, 2/6/98-3/10/98 70,531,000 (c) 70,367,368
Windmill Funding Corporation,
5.43%-5.80%, 2/11/98-4/14/98 55,628,000 (c) 55,335,838
------------
732,445,187
------------
Financial - Utilities (2.13%)
Nat'l Rural Utilities Coop. Finance
Corporation, 5.42%-5.70%, 2/5/98-4/17/98 75,390,000 75,004,655
------------
Food & Beverage (5.05%)
Diageo Capital, 5.47%-5.48%, 2/25/98-3/27/98 45,000,000 (c) 44,722,558
General Mills, Inc., 5.90%, 12/15/98 5,000,000 5,107,710
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):
- -------------------------------------------------------------------------------
Food & Beverage (continued)
HJ Heinz Company, 5.74%-5.75%, 2/11/98-2/12/98 $35,000,000 $34,941,757
Grand Metropolitan Capital Corp., 5.70%, 3/4/98 15,000,000 14,926,375
PepsiCo Incorporated, 5.81%, 7/1/98 3,500,000 3,494,673
Sysco Corporation, 5.63%-5.72%, 2/3/98-3/4/98 75,000,000 74,787,058
------------
177,980,131
------------
Forest Products (0.56%)
Kimberly-Clark Corporation, 5.43%, 3/26/98 20,000,000 (c) 19,840,117
------------
Household Products (0.87%)
Clorox Company, 5.42%, 4/16/98 10,000,000 9,888,589
Colgate-Palmolive Company Corporate,
6.15%, 2/16/98 3,300,000 3,300,635
Sherwin-Williams Co.,
5.42%-5.47%, 3/4/98-3/9/98 17,500,000 (c) 17,410,173
------------
30,599,397
------------
Municipals (3.38%)
Allegheny County, PA Sanitary Authority
Sewer Revenue Bonds Series A,
6.20%, 6/1/98, MBIA Insured 2,000,000 2,004,700
Bedford County Virginia
Industrial Development Authority
5.90%, 3/3/98, LOC Canadian Imperial
Bank of Commerce 15,000,000 15,000,000
5.90%, 3/3/98, LOC Societe Generale 8,000,000 8,000,000
Kansas City Sewer Revenue Service Series 1997B,
5.85%, 5/1/98, FGIC Insured 905,000 904,872
MetroCrest Hospital Authority Series 1989,
5.45%, 2/3/98, LOC Bank of NY 15,300,000 15,295,208
New York City, New York G.O.
Series 1994H7, 5.78%, 2/4/98, FGIC Insured 10,450,000 10,450,000
Series 1993B, 5.86%, 2/3/98, FGIC Insured 9,000,000 9,000,000
Oakland Alameda County Coliseum,
5.85%, 2/4/98, LOC CIBC 14,150,000 14,150,000
West Baton Rouge Industrial District #3
(Dow Chemical Co.), 5.58%-5.87%,
3/9/98-5/12/98 44,300,000 44,300,000
------------
119,104,780
------------
Oil Services (0.14%)
Texaco Capital Corporation, 5.90%, 7/20/98 5,000,000 4,986,371
------------
Printing & Publishing (3.09%)
Donnelley (R.R.) & Sons Co.,
5.42%-5.70%, 2/10/98-3/16/98 26,340,000 (c) 26,245,211
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 (continued)
McGraw-Hill, Incorporated,
5.66%-5.69%, 2/10/98-3/19/98 $42,600,000 $42,434,727
Pearson Inc., 5.42%-5.44%, 4/13/98-4/21/98 40,750,000 40,286,006
------------
108,965,944
------------
Retail Stores (0.57%)
Nordstrom Credit Corporation, 5.50%, 2/27/98 20,000,000 19,920,556
------------
Utilities - Electric (1.25%)
Baltimore Gas & Electric Company, 5.81%, 9/1/98 34,000,000 (d) 34,000,000
Florida Power Corp., 5.43%, 2/25/98 10,000,000 9,963,800
------------
43,963,800
------------
Utilities - Telephone (1.06%)
Ameritech Capital Funding, Inc., 5.72%, 2/10/98 13,500,000 (c) 13,480,695
Bell Atlantic Financial Services, 5.91%, 9/1/98 10,000,000 9,964,510
BellSouth Telecommunications, 5.72%, 2/25/98 14,100,000 14,046,232
------------
37,491,437
- -------------------------------------------------------------------------------
Total Commercial Paper &
Other Corporate Obligations (cost: $3,500,283,625) $3,500,283,625
- -------------------------------------------------------------------------------
Government & Agencies Securities (0.29%):
- -------------------------------------------------------------------------------
Private Export Funding Corporation,
5.80%, 2/2/98 10,080,000 10,078,376
- -------------------------------------------------------------------------------
Total Government &
Agencies Securities (cost: $10,078,376) $10,078,376
- -------------------------------------------------------------------------------
Total Investment in Securities
(cost: $3,510,362,001) (b) $3,510,362,001
- -------------------------------------------------------------------------------
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 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.
(d) 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, 1998.
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1998
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
Government & Agencies Securities (89.63%):
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation (25.95%)
5.35%-5.65%, 2/5/98-4/28/98 $59,615,000 (c) $59,384,707
Federal National Mortgage Association (23.98%)
5.32%-5.85%, 2/5/98-9/28/98 55,045,000 54,874,821
Federal Home Loan Bank (20.27%)
5.25%-5.82%, 2/10/98-10/23/98 46,630,000 46,381,895
Federal Farm Credit Bank (16.38%)
5.46%-5.73%, 2/2/98-7/1/98 37,550,000 (c) 37,482,113
Student Loan Marketing Association (2.18%)
5.43%, 2/5/98 5,000,000 (c) 4,999,976
Tennessee Valley Authority (0.87%)
5.59%, 2/13/98 2,000,000 1,996,277
- -------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $205,119,789) $205,119,789
- -------------------------------------------------------------------------------
Repurchase Agreements (10.05%):
- -------------------------------------------------------------------------------
First Chicago, 5.57%, acquired 1/30/98 and
due 2/2/98 with accrued interest of $7,432
(collateralized by $16,013,757 U.S. Treasury
Note, 9.13%, 5/15/99) 16,013,000 16,013,000
First Chicago, 5.57%, acquired 1/30/98 and
due 2/2/98 with accrued interest of $3,243
(collateralized by $9,633,000 U.S. Treasury
Strip, 9.13%, 8/15/03) 6,987,000 6,987,000
- -------------------------------------------------------------------------------
Total Repurchase Agreements (cost: $23,000,000) $23,000,000
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $228,119,789) (b) $228,119,789
- -------------------------------------------------------------------------------
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, 1998.
<PAGE>
TAX-FREE MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1998
Principal Market
Name of Issuer (c) Amount Value (a)
- -------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets)
Arkansas (1.13%)
Fayetteville Public Facilities Board
(Butterfield Trail Village Project),
3.65%, 9/1/27, LOC Dresdner Bank $5,000,000 (b) $5,000,000
------------
California (2.85%)
Los Angeles Regional Airports
Improvement Corp. Lease Revenue,
3.70%, 12/1/24, LOC Wachovia Bank of Georgia 700,000 (b) 700,000
3.70%, 12/1/25, LOC Societe Generale 1,900,000 (b) 1,900,000
Schools Cash Reserve Program Authority,
3.85%, 7/2/98, AMBAC Insured 8,000,000 8,028,661
State Revenue Anticipation Notes, 3.82%, 6/30/98 2,000,000 2,005,382
------------
12,634,043
------------
Colorado (4.23%)
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, 4.05%, 11/1/25,
LOC Banque National De Paris 4,950,000 (b) 4,950,000
Boulder, Larimer & Weld Counties,
3.95%, 12/15/98, FGIC Insured 857,962 829,370
Health Fac. Authority, (Visiting Nurses),
3.70%, 7/1/22, LOC Norwest Bank, MN 2,200,000 (b) 2,200,000
Interstate South Metro District,
4.05%, 11/1/98, LOC Banque National De Paris 3,275,000 3,275,000
------------
18,754,370
------------
District of Columbia (0.34%)
District of Columbia G.O.,
3.80%, 6/1/98, MBIA Insured 1,500,000 1,513,592
------------
Florida (0.25%)
Dade County Revenue Capital Appreciation
Bonds, 3.82%, 2/1/98, MBIA Insured 1,125,000 1,125,000
------------
Georgia (0.97%)
Clayton County MFHR Series 1990
(Kings Arena Apartment),
3.50%, 1/1/21, FSA Insured 2,215,000 (b) 2,215,000
Fulton County Residential Home Care,
3.65%, 1/1/18, LOC Rabobank Nederland 2,100,000 (b) 2,100,000
------------
4,315,000
------------
Hawaii (0.63%)
Honolulu City & County, 3.70%, 4/6/98,
LOC Canadian Imperial Bank of Commerce 2,800,000 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)
- -------------------------------------------------------------------------------
Idaho (1.77%)
State Health Facilities Authority Revenue
(St. Luke's Regional Medical Center),
3.70%, 5/1/22, LOC Credit Suisse $7,825,000 (b) $7,825,000
------------
Illinois (14.73%)
City of Springfield Community
Improvement Revenue Bonds Series 1985,
(Realing Restoration Project), 3.75%, 12/1/15 3,200,000 (b) 3,200,000
City of Springfield MFHR
(OT Center Limited Project), 3.75%, 12/1/15 7,700,000 (b) 7,700,000
Chicago O'Hare International Airport,
3.55%, 1/1/15, LOC Societe Generale 3,300,000 (b) 3,300,000
Cook County G.O., 3.85%, 11/15/98, FGIC Insured 1,000,000 1,008,722
Development Finance Authority Revenue
(Latin School of Chicago), 3.50%, 6/1/30,
LOC Bank of America 13,700,000 (b) 13,700,000
Development Finance Authority
(A.E. Stanley Manufacturing), 3.50%,
12/1/05, LOC Union Bank of Switzerland 1,600,000 (b) 1,600,000
Education Facilities Authority Demand
Revenue Bonds (Cultural Pool Program), 3.50%,
12/1/25, LOC First National Bank of Chicago 1,730,000 (b) 1,730,000
Health Facilities Authority (Children's Memorial
Hospital Project), Series 1985B, 3.50%,
11/1/15, LOC First National Bank of Chicago 10,600,000 (b) 10,600,000
Health Facilities Authority,
3.50%, 4/8/98, MBIA Insured 2,100,000 2,100,000
Health Facilities Authority Healthcorp
Affiliates, Series 1990, 3.70%, 11/1/20,
LOC Rabobank Nederland 995,000 (b) 995,000
Joliet Regional Port District IDR Bonds
(Dow Chemical), 3.75%, 7/15/03 11,840,000 (b) 11,840,000
Metropolitan Pier & Exposition Authority,
3.70%, 12/15/98, AMBAC Insured 2,945,000 2,852,580
State Sales Tax Revenue, 3.80%, 6/15/98,
Escrowed in Governments 4,475,000 4,624,565
------------
65,250,867
------------
Indiana (0.70%)
Health Facilities Financing Authority Hospital
Revenue Bonds, Series 1990,
3.55%, 11/1/20, LOC NBD Bank 2,000,000 (b) 2,000,000
Health Facilities Financing Authority
(Capital Access Designated Pool Program),
3.55%, 8/1/06-12/1/17, LOC Comerica Bank 800,000 (b) 800,000
Health Facilities Financing Authority
(St Anthony Medical Center), 3.50%,
12/1/02-12/1/14, LOC Robobank Nederland 300,000 (b) 300,000
------------
3,100,000
------------
Iowa (2.91%)
Mount Vernon Private College Project
(Cornell) Series 1985, 3.85%, 10/1/15,
LOC First Bank Minneapolis, NA 3,100,000 (b) 3,100,000
Polk County Hospital Revenue Bonds,
3.50%, 12/1/05, MBIA Insured 4,790,000 (b) 4,790,000
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)
- -------------------------------------------------------------------------------
Iowa (continued)
State School Corporation
(Iowa Cash Anticipation Program), 3.80%-4.25%,
6/26/98-1/28/99, FSA Insured $5,000,000 $5,021,404
------------
12,911,404
------------
Kansas (1.99%)
City of Burlington PCR, 3.60%,
2/12/98-3/3/98, LOC Societe Generale 8,800,000 8,800,000
------------
Kentucky (0.18%)
University of Kentucky Revenues,
3.85%, 5/1/98, AMBAC Insured 800,000 801,234
------------
Louisiana (3.80%)
New Orleans Sewer Service Revenue,
3.94%, 6/1/98, FGIC Insured 800,000 802,648
Public Facilities Authority Hospital Revenue,
3.60%, 3/4/98, FSA Insured 10,000,000 10,000,000
West Baton Rouge Industrial District #3
(Dow Chemical), 3.75%, 3/2/98 6,050,000 6,050,000
------------
16,852,648
------------
Maryland (3.68%)
Anne Arundal County
(Baltimore Gas & Electric), 3.85%, 2/4/98 2,200,000 2,200,000
Montgomery County Housing Opportunity,
3.70%, 11/1/07, LOC GECC 12,000,000 (b) 12,000,000
Montgomery County Public Improvement Series A-1,
3.70%, 7/1/07, LOC First Chicago 2,100,000 (b) 2,100,000
------------
16,300,000
------------
Michigan (2.26%)
Farmington Hills Hospital Revenue,
3.70%, 2/15/16, MBIA Insured 100,000 (b) 100,000
State Strategic Fund PCR
(Dow Chemical), 3.75%, 3/2/98 1,400,000 1,400,000
State Underground Storage Tank
Finance Assurance Authority,
3.80%, 2/5/98, LOC CIBC 8,500,000 8,500,000
------------
10,000,000
------------
Minnesota (4.38%)
City of Cohasset (MN Power & Light Project),
3.65%, 6/1/13-6/1/20, LOC ABN AMRO 4,080,000 (b) 4,080,000
Duluth Hospital Revenue (St. Lukes Hospital),
3.77%, 5/1/98, Escrowed in Governments 1,050,000 1,083,890
Minneapolis/St. Paul State Housing
& Redevelopment Authority,
3.70%, 8/15/25, FSA Insured 1,100,000 (b) 1,100,000
State Housing & Redevelopment Authority of
St. Paul, (Science Museum of MN Project), 3.50%,
5/1/27, LOC First Bank Minneapolis, NA 5,165,000 (b) 5,165,000
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)
- -------------------------------------------------------------------------------
Minnesota (continued)
State of Minnesota G.O., Various
Purpose Refunding Bonds, 3.74%, 8/1/98 $3,790,000 $3,845,908
State School Districts Tax Aid
Anticipation Borrowing Programs,
3.65%-3.80%, 8/13/98-2/9/99 4,140,000 4,140,000
------------
19,414,798
------------
Mississippi (0.73%)
State Lease Revenue,
3.80%, 4/15/98, AMBAC Insured 3,200,000 3,212,159
------------
Missouri (1.20%)
State Environmental Improvement & Energy Resource
Authority PCR, 3.50%-3.95%, 2/2/98-6/1/98,
LOC Union Bank of Switzerland 3,500,000 3,500,632
State Environmental Improvement & Energy Resource
Authority PCR, (Monsanto Corporation),
3.65%, 2/1/09 1,800,000 (b) 1,800,000
------------
5,300,632
------------
Montana (2.06%)
State Health Facilities Authority Revenue Bonds
(Health Care Pooled Loan Program), Series A,
3.50%, 12/1/15, FGIC Insured 9,105,000 (b) 9,105,000
------------
Nebraska (1.38%)
Investment Finance Authority Hospital Rev. Bonds,
3.50%, 12/1/15, FGIC Insured 4,100,000 (b) 4,100,000
Public Power District Electric Revenue,
3.68%, 2/1/98 2,000,000 2,000,000
------------
6,100,000
------------
Nevada (2.96%)
Clark County Airport System Refunding Revenue Notes,
Series A, 3.50%, 7/1/12, MBIA Insured 6,600,000 (b) 6,600,000
Series A, 3.50%, 7/1/25,
LOC Toronto Dominion Bank 6,532,000 (b) 6,532,000
------------
13,132,000
------------
New Jersey (0.56%)
EDA Revenue Bonds (Performing Arts Center Project),
3.74%, 6/15/98, AMBAC Insured 1,250,000 1,268,067
EDA (Volvo America Corp.),
3.74%, 12/1/04, LOC Credit Suisse 1,200,000 (b) 1,200,000
------------
2,468,067
------------
New Mexico (0.25%)
City of Albuquerque Revenue Bonds,
3.50%, 7/1/14, LOC CIBC 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)
- -------------------------------------------------------------------------------
New York (3.85%)
New York City G.O.,
3.90%, 8/1/17, LOC Morgan Guaranty $2,115,000 (b) $2,115,000
3.65%-3.90%, 8/1/16-8/15/18, AMBAC Insured 3,100,000 (b) 3,100,000
NYC Water Finance Authority, 3.65%-3.90%,
6/15/22-6/15/25, FGIC Insured 6,200,000 (b) 6,200,000
State Energy Research & Development Authority,
3.45%, 8/15/15, AMBAC Insured 4,500,000 (b) 4,500,000
State Tollway Authority Hwy./Bridge Fund,
3.71%, 4/1/98, AMBAC Insured 1,135,000 1,137,304
------------
17,052,304
------------
North Carolina (0.35%)
New Hanover, 3.85%, 12/1/98, MBIA Insured 740,000 739,691
Wake County Med. Care Commission Hosp. Rev.,
3.90%, 10/1/98, MBIA Insured 820,000 820,517
------------
1,560,208
------------
North Dakota (1.01%)
State Housing Finance Agency SFMR,
3.85%, 7/1/98 4,460,000 4,460,000
------------
Ohio (1.47%)
Air Quality Development Authority PCR,
3.75%, 2/9/98, FGIC Insured 2,500,000 2,500,000
Water Development Authority PCR
(Cleveland Electric Illuminating Co.),
3.40%, 3/10/98, FGIC Insured 4,000,000 4,000,000
------------
6,500,000
------------
Oklahoma (0.23%)
Garfield County Industrial Authority PCR, 3.60%,
1/1/25, Guaranty: Oklahoma Gas & Electric 1,000,000 (b) 1,000,000
------------
Pennsylvania (6.21%)
Allegheny County Industrial Development Authority,
3.65%-3.85%, 2/4/98-2/9/98, LOC Dresdner Bank 5,200,000 5,200,000
Allegheny County Industrial Development
Authority, (Longwood at Oakmont Inc. Project),
3.65%, 7/1/27, LOC Dresdner Bank 200,000 (b) 200,000
Delaware County PCR, 3.70%, 2/4/98, FGIC Insured 800,000 800,000
Delaware Valley Finance Authority,
3.65%, 8/1/16, LOC Credit Suisse 2,000,000 (b) 2,000,000
Lehigh County IDA (Allegheny Electric Coop.)
Series 1985, 3.60%, 12/1/15,
LOC Rabobank Nederland 2,900,000 (b) 2,900,000
Quakertown Hospital Authority,
3.60%, 7/1/05, LOC PNC Bank 16,400,000 (b) 16,400,000
------------
27,500,000
------------
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)
- -------------------------------------------------------------------------------
South Dakota (0.87%)
Housing Development Authority
(Homeownership Mortgage),
Series A, 3.80%, 5/1/98 $3,860,000 $3,860,000
------------
South Carolina (5.64%)
Berkeley County PCR Revenue, 3.50%,
12/1/08, LOC Royal Bank of Canada 10,725,000 (b) 10,725,000
York County (Duke Power Company),
3.55%-3.75%, 2/2/98-4/8/98 14,250,000 14,250,000
------------
24,975,000
------------
Tennessee (0.41%)
Shelby County Public Improvement
Series 1989A, 3.87%, 8/1/98,
Prerefunded and Escrowed in Governments 3,910,000 1,829,638
------------
Texas (11.58%)
Allen Independent School District,
3.75%, 2/15/98, PSF Guarantee 1,065,000 1,065,385
Brazos River Harbor Navagation District
(Dow Chemical), 3.75%, 3/2/98 1,000,000 1,000,000
City of Austin, 3.70%-3.80%,
2/6/98-3/9/98, LOC Morgan Guaranty 13,705,000 13,705,000
City of Carrollton,
3.82%, 8/15/98, Escrowed in Governments 2,000,000 2,027,290
Coastal Bend Health Facilities Development Corp.,
(Incarnate World Health Systems),
3.55%, 8/15/27, LOC First Chicago 1,625,000 (b) 1,625,000
Cypress-Fairbanks Independent School District,
Capital Appreciation Bonds,
3.76%, 2/1/98, PSF Guarantee 3,140,000 3,140,000
Goose Creek Consolidated Independent School
District, Capital Appreciation Bonds,
3.75%, 2/15/98, PSF Guarantee 1,200,000 1,198,330
Harris County Health Facilities Development Corp.,
3.65%, 6/1/24, MBIA Insured 4,900,000 (b) 4,900,000
Lone Star Airport Improvement, 3.70%, 12/1/14,
LOC Royal Bank of Canada 2,100,000 (b) 2,100,000
North Central Health Facilities Development Corp.,
(Baylor Medical Center), 3.75%, 5/15/98 1,000,000 1,031,653
Nueces River Authority PCR Series 1985
(Reynolds Metals Co. Project),
3.75%, 12/01/99, LOC Bank of Nova Scotia 6,500,000 (b) 6,500,000
San Antonio Electric & Gas Revenues
Series 1988, 3.73%, 2/1/98 1,900,000 1,938,000
State Tax Revenue Anticipation Notes
Series 1996, 3.84%, 8/31/98 7,000,000 7,035,283
Tarrant County Housing Finance Corporation,
Multi-Family Housing - Single Family Apartments
Project, LOC Suntrust Bank, 3.70%, 11/1/17 4,025,000 (b) 4,025,000
------------
51,290,941
------------
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)
- -------------------------------------------------------------------------------
Utah (5.62%)
Intermountain Power Agency (UT Power Supply),
3.55%-3.65%, 2/11/98-6/8/98, LOC Swiss Bank $11,700,000 $11,700,000
State Board of Regents Student Loan Revenue
Bonds, Series B, 3.55%, 11/1/00, AMBAC Insured 13,200,000 (b) 13,200,000
------------
24,900,000
------------
Virginia (0.23%)
State Transportation Board
Contract Revenue, 3.70%, 3/1/98 1,000,000 1,023,046
------------
Washington (0.97%)
King County School District,
3.95%, 12/1/98, AMBAC Insured 1,435,000 (b) 1,439,031
State Health Care Facilities
Authority Revenue, Series A,
3.70%, 1/1/18, LOC Morgan Guaranty Trust 1,285,000 (b) 1,285,000
State of Washington G.O., (Motor Vehicle Fuel
Tax), 3.70%, 3/1/98, Escrowed in Governments 1,550,000 1,554,905
------------
4,278,936
------------
West Virginia (0.20%)
State Hospital Finance Authority,
3.85%, 8/1/98, FSA Insured 875,000 874,569
------------
Wisconsin (0.94%)
Health and Educational Facilities Authority
(Wheaton Franciscan), 3.75%, 8/15/98,
Escrowed in Governments 3,000,000 3,128,250
State of Wisconsin G.O., 3.77%, 5/1/98 1,000,000 1,018,194
------------
4,146,444
------------
Wyoming (3.57%)
Converse County PCR,
3.80%, 3/5/98, LOC Deutsche Bank 2,800,000 2,800,000
Gillette, Campbell Cnty PCR, 3.55%-3.80%,
2/10/98-3/5/98, LOC Deutsche Bank 5,400,000 5,400,000
Lincoln County PCR, 3.65%,
11/1/14, Exxon Project 800,000 (b) 800,000
Sweetwater County PCR,
3.55%-3.80%, 2/5/98-4/9/98,
LOC Union Bank of Switzerland 6,800,000 6,800,000
------------
15,800,000
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $438,866,900) (d) $438,866,900
- -------------------------------------------------------------------------------
See accompanying notes to investments in securities.
<PAGE>
TAX-FREE 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, 1998. 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
EDA - Economic Development Authority
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance Corporation
GECC - General Electric Capital Corporation
G.O. - General Obligation
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
PSF - Texas Permanent School Fund
SFMR - Single Family Mortgage Revenue
(d) Also represents cost for federal income tax purposes.
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
Investments in Securities (unaudited)
January 31, 1998
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Paper & Other Corporate Obligations (104.45%):
- -------------------------------------------------------------------------------
Agricultural Products (1.91%)
Archer Daniels Midland Company, 5.70%, 3/5/98 $2,000,000 $1,989,867
------------
Banks - Domestic (5.91%)
Bankers Trust Company, 5.58%, 3/11/98 100,000 (d) 99,411
Comerica Bank of Detroit, 5.86%, 5/12/98 2,000,000 2,004,463
Formosa Plastics USA,
5.50%, 6/4/98, LOC Bank of America 2,700,000 2,649,262
NationsBank N.A., 5.50%, 5/26/98 1,400,000 1,400,000
------------
6,153,136
------------
Banks - Other (10.78%)
Commed Fuel Company, Inc.,
5.75%, 2/13/98, LOC CIBC 1,675,000 1,671,790
Dresdner Bank, 5.81%, 3/13/98 1,000,000 999,895
National Westminster Bank, 5.69%, 7/6/98 3,500,000 3,501,159
Royal Bank of Canada, 5.42%, 4/1/98 3,600,000 3,568,022
Sinochem American, Inc.,
5.50%, 3/12/98, LOC Credit Suisse 1,500,000 1,491,063
------------
11,231,929
------------
Business Machines (2.36%)
Xerox Credit Corporation,
5.44%-5.84%, 3/3/98-4/1/98 2,465,000 (c) 2,460,192
------------
Conglomerates (4.01%)
Pacific Dunlop Holdings, Inc., 5.73%, 3/2/98 4,200,000 (c) 4,180,647
------------
Drugs and Cosmetics (3.82%)
Pfizer Inc., 5.50%, 3/9/98 4,000,000 3,978,000
------------
Electronics (0.82%)
Emerson Electric Company, 5.42%, 2/26/98 860,000 856,763
------------
Financial - Auto (2.88%)
Ford Motor Credit Corporation, 5.72%, 2/12/98 3,000,000 3,002,640
------------
See accompanying notes to investments in securities.
<PAGE>
INSTITUTIONAL 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 (18.36%)
Associates Corporation of North America,
5.87%, 9/1/98 $3,000,000 $2,993,250
Beneficial Corporation, 5.85%, 2/15/98 4,000,000 4,004,388
General Electric Capital Corporation,
5.45%-5.50%, 2/17/98-3/11/98 4,500,000 4,474,443
Merrill Lynch & Co., 5.57%, 2/27/98-3/16/98 2,200,000 (d) 2,188,649
Morgan (J.P.) and Company, 5.50%, 4/6/98 3,500,000 3,465,778
Morgan Stanley & Company, 5.68%, 3/2/99 2,000,000 (d) 1,998,659
------------
19,125,167
------------
Financial - Diversified Business, Asset-Backed (13.58%)
Barton Capital Corporation, 5.57%, 3/16/98 1,500,000 (c) 1,490,020
Fleet Funding Corporation, 5.78%, 2/5/98 2,450,000 (c) 2,448,427
Monte Rosa Capital Corporation, 5.78%, 2/13/98 2,600,000 (c) 2,594,991
Receivables Capital Corporation, 5.76%, 2/5/98 550,000 (c) 549,646
Redwood Receivables Corporation, 5.50%, 2/23/98 3,800,000 3,787,228
Triple A One Funding, 5.50%, 3/10/98 1,500,000 (c) 1,491,521
Windmill Funding Corporation, 5.47%, 4/24/98 1,800,000 (c) 1,777,573
------------
14,139,406
------------
Food & Beverage (5.44%)
Grand Metropolitan Capital Corp., 5.70%,3/4/98 4,200,000 4,179,385
HJ Heinz Company, 5.44%, 3/10/98 1,500,000 1,491,613
------------
5,670,998
------------
Household Products (6.38%)
Colgate-Palmolive Company, 5.42%, 3/4/98 2,750,000 2,737,165
Gillette Company, 5.58%, 2/2/98 3,910,000 3,909,394
------------
6,646,559
------------
Printing & Publishing (8.31%)
Gannett Company, 5.58%, 2/2/98 4,700,000 (c) 4,699,272
Pearson, Inc. 5.42%, 4/9/98 4,000,000 3,959,651
------------
8,658,923
------------
Retail Stores (3.83%)
Nordstrom Credit Corporation, 5.50%, 2/27/98 4,000,000 3,984,111
------------
See accompanying notes to investments in securities.
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
Investments in Securities (continued)
Principal Market
Name of Issuer Amount Value (a)
- -------------------------------------------------------------------------------
Commercial Paper & Other Corporate Obligations (continued):
- -------------------------------------------------------------------------------
Utilities - Electric (11.61%)
Carolina Power & Light, 5.44, 2/13/98 $3,800,000 $3,793,109
Northern States Power, 5.42%, 3/12/98 4,500,000 4,473,577
Pacific Gas and Electric, 5.85%,11/12/98 700,000 710,309
Southern California Edison,
5.42%-5.60%, 3/17/98-12/15/98 3,130,000 3,113,493
------------
12,090,488
------------
Utilities - Telephone (4.43%)
BellSouth Capital Funding, 5.45%, 3/3/98 4,640,000 4,618,927
- -------------------------------------------------------------------------------
Total Investment in Securities (cost: $108,787,753) (b) $108,787,753
- -------------------------------------------------------------------------------
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 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.
(d) 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, 1998.
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SIGNATURE 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 thirteenth day of March,
1998
Great Hall Investment Funds, Inc.
---------------------------------
Julie K. Getchell J. Scott Spiker
Witness: --------------------- By: ---------------------
Julie K. Getchell J. Scott Spiker
Chief Financial Officer Chief Executive Officer
