March 5, 1999
[LOGO] GREAT HALL INVESTMENT FUNDS, INC.
To Our Shareholders:
I am pleased to present the January 31, 1999 Semi-Annual Report for the Great
Hall Prime, U.S. Government, Tax-Free, Institutional Prime, and Institutional
Tax Free Money Market Funds. This report contains a statement of each Fund's
financial condition as of January 31, 1999, 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 declined by about 0.75% last fall, and have remained
quite stable since. The Federal Reserve reduced the fed funds rate (the rate at
which banks lend each other money overnight) three times between August and
November of 1998. These reductions totaled 0.75%. The Fed made these cuts in
response to the international financial turmoil that began in Asia, spread to
Russia, and threatened to spread to much of the rest of the world. Many foreign
central banks made similar cuts in interest rates in order to improve worldwide
liquidity. This policy seems to have worked because the global financial crisis
has abated and the U.S. economy is growing rapidly. Unemployment has fallen to
20-year lows, and inflation dropped to 1.6% for 1998.
The Fed's reduction of the fed funds rate caused interest rates on money market
instruments to decline. This resulted in a decline in yields on the Great Hall
Money Market Funds.
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 $5.5 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,
/s/ Raye Kanzenbach
Raye Kanzenbach
Chief Investment Officer
Great Hall Investment Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
(UNAUDITED) MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
=============================================================================================================================
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities at market
value (note 2), identified cost
$4,421,223,260; $257,200,027;
$515,525,648; $282,731,180;
and $64,010,110, respectively ......... $ 4,421,223,260 $ 257,200,027 $ 515,525,648 $ 282,731,180 $ 64,010,110
Cash in bank on demand deposit ......... 13,325 3,374 45,259 8,810 7,938
Accrued interest receivable ............ 18,128,931 966,004 2,577,377 1,291,274 301,733
Organization costs (note 2) ............ -- -- -- 5,934 --
- -----------------------------------------------------------------------------------------------------------------------------
Total assets ........................... 4,439,365,516 258,169,405 518,148,284 284,037,198 64,319,781
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment securities
purchased ............................. 24,990,351 -- 5,920,883 10,142,334 1,442,270
Accrued investment advisory fee ........ 1,491,656 89,411 197,846 53,852 --
Other accrued expenses ................. 1,220,436 112,112 88,405 147,671 20,900
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities ...................... 27,702,443 201,523 6,207,134 10,343,857 1,463,170
- -----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding
capital stock ......................... $ 4,411,663,073 $ 257,967,882 $ 511,941,150 $ 273,693,341 $ 62,856,611
=============================================================================================================================
REPRESENTED BY:
Capital stock - authorized 100
billion shares of $.01 par value
for each Fund, outstanding
4,411,663,073; 257,967,882;
511,941,150; 273,693,341 and
62,856,611 shares, respectively ....... $ 44,116,631 $ 2,579,679 $ 5,119,412 $ 2,736,933 $ 628,566
Additional paid-in capital ............. 4,367,546,442 255,388,203 506,821,738 270,956,408 62,228,045
- -----------------------------------------------------------------------------------------------------------------------------
Total - representing net assets
applicable to outstanding
capital stock ...................... $ 4,411,663,073 $ 257,967,882 $ 511,941,150 $ 273,693,341 $ 62,856,611
=============================================================================================================================
Net asset value per share of
outstanding capital stock ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=============================================================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
2
<PAGE>
STATEMENTS OF OPERATIONS
SIX-MONTHS ENDED JANUARY 31, 1999
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
(UNAUDITED) MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND*
====================================================================================================================
<S> <C> <C> <C> <C> <C>
INCOME:
Interest ............................... $131,445,607 $7,097,963 $9,008,135 $6,606,707 $ 416,891
- --------------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Investment advisory fee ................ 10,667,693 590,472 1,342,187 305,619 32,978
Custodian, accounting and
transfer agent fees .................. 125,000 21,600 37,700 11,650 --
Sub-accounting fees .................... 2,375,000 69,400 61,900 2,000 200
Reports to shareholders ................ 557,000 13,750 13,300 2,800 100
Amortization of organization costs ..... -- -- -- 848 --
Directors' fees ........................ 3,199 3,199 3,199 4,498 --
Audit and legal fees ................... 46,500 20,000 23,000 14,500 --
Registration fees ...................... 372,471 48,144 77,732 115,213 12,842
Administrative ......................... 20,500 1,600 1,800 4,200 --
Other expenses ......................... 58,934 14,815 2,926 1,549 7,820
- --------------------------------------------------------------------------------------------------------------------
Total expenses .......................... 14,226,297 782,980 1,563,744 462,877 53,940
Less expenses voluntarily waived or
absorbed by Advisor .................... -- -- -- -- (32,978)
- --------------------------------------------------------------------------------------------------------------------
Total net expenses ...................... 14,226,297 782,980 1,563,744 462,877 20,962
- --------------------------------------------------------------------------------------------------------------------
Investment income -- net ................ 117,219,310 6,314,983 7,444,391 6,143,830 395,929
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations ........................ $117,219,310 $6,314,983 $7,444,391 $6,143,830 $ 395,929
====================================================================================================================
</TABLE>
* Period from September 23, 1998 (commencement of operations) to January 31,
1999.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT
MONEY MARKET FUND MONEY MARKET FUND
===========================================================================
Six-month Six-month
period ended Year period ended Year
Jan. 31, 1999 Ended Jan. 31, 1999 Ended
(unaudited) July 31, 1998 (unaudited) July 31, 1998
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations:
Investment income, net ..................... $ 117,219,310 $ 196,120,553 $ 6,314,983 $ 10,786,378
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations ............................ 117,219,310 196,120,553 6,314,983 10,786,378
- -------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from:
Investment income -- net .................. (117,219,310) (196,120,553) (6,314,983) (10,786,378)
- -------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ........ (117,219,310) (196,120,553) (6,314,983) (10,786,378)
- -------------------------------------------------------------------------------------------------------------------------
Capital share transactions at net asset
value of $1.00 per share:
Proceeds from sales ..................... 1,765,558,775 5,231,760,076 201,962,249 295,197,283
Shares issued for reinvestment
of distributions ....................... 117,219,310 196,120,553 6,314,983 10,786,378
Payment for shares redeemed ............. (2,315,466,727) (3,713,382,899) (179,238,834) (259,209,672)
- -------------------------------------------------------------------------------------------------------------------------
Increase/(decrease) in net assets from
capital share transactions ................. (432,688,642) 1,714,497,730 29,038,398 46,773,989
- -------------------------------------------------------------------------------------------------------------------------
Total increase/(decrease) in net assets ..... (432,688,642) 1,714,497,730 29,038,398 46,773,989
- -------------------------------------------------------------------------------------------------------------------------
Net assets at beginning of period ........... 4,844,351,715 3,129,853,985 228,929,484 182,155,495
- -------------------------------------------------------------------------------------------------------------------------
Net assets at end of period ................. $ 4,411,663,073 $ 4,844,351,715 $ 257,967,882 $ 228,929,484
=========================================================================================================================
</TABLE>
* Commencement of operations.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL
TAX-FREE INSTITUTIONAL PRIME TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
====================================================================================================
SIX-MONTH SIX-MONTH PERIOD FROM
PERIOD ENDED YEAR PERIOD ENDED PERIOD FROM SEPT. 23, 1998*
JAN. 31, 1999 ENDED JAN. 31, 1999 AUG. 11, 1997* TO TO JAN. 31, 1999
(UNAUDITED) JULY 31, 1998 (UNAUDITED) JULY 31, 1998 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 7,444,391 $ 14,463,281 $ 6,143,830 $ 5,595,853 $ 395,929
- ----------------------------------------------------------------------------------------------------
7,444,391 14,463,281 6,143,830 5,595,853 395,929
- ----------------------------------------------------------------------------------------------------
(7,444,391) (14,463,281) (6,143,830) (5,595,853) (395,929)
- ----------------------------------------------------------------------------------------------------
(7,444,391) (14,463,281) (6,143,830) (5,595,853) (395,929)
- ----------------------------------------------------------------------------------------------------
247,320,229 599,371,172 401,361,190 439,240,574 96,083,956
7,444,391 14,463,281 6,143,830 5,595,853 395,929
(288,672,136) (490,726,196) (347,596,889) (231,051,217) (33,623,274)
- ----------------------------------------------------------------------------------------------------
(33,907,516) 123,108,257 59,908,131 213,785,210 62,856,611
- ----------------------------------------------------------------------------------------------------
(33,907,516) 123,108,257 59,908,131 213,785,210 62,856,611
- ----------------------------------------------------------------------------------------------------
545,848,666 422,740,409 213,785,210 -- --
- ----------------------------------------------------------------------------------------------------
$ 511,941,150 $ 545,848,666 $ 273,693,341 $ 213,785,210 $ 62,856,611
====================================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<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 five
funds; Prime, U.S. Government, Tax-Free, Institutional Prime, and the
Institutional Tax-Free 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 both Institutional Prime and Institutional Tax-Free
Money Market Funds. The Institutional Prime organizational expenses are being
amortized over 60 months while the Institutional Tax-Free organizational
expenses were expensed during the period.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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, 1998
to January 31, 1999 (September 23, 1998 to January 31, 1999 for Institutional
Tax-Free Money Market Fund) were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES PROCEEDS
==============================================================================================
<S> <C> <C>
Prime Money Market Fund ........................... $40,001,409,810 $40,411,291,338
U.S. Government Money Market Fund ................. 4,147,262,397 4,118,007,894
Tax-Free Money Market Fund ........................ 535,061,502 563,831,562
Institutional Prime Money Market Fund ............. 2,260,861,447 2,191,026,382
Institutional Tax-Free Money Market Fund .......... 109,461,079 45,450,969
</TABLE>
4. FEES AND EXPENSES
The Company has entered into an investment advisory and management agreement
with Insight Investment Management (IIM), 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 fees for both the Institutional Prime and
Institutional Tax-Free Money Market Funds are equal to an annual rate of
0.25% of net assets. IIM voluntarily waived a portion of the advisory fees
for the Institutional Tax-Free Money Market Fund for the current period.
Each of the five 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 $18
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 $24,493 for the period ended January 31, 1999 were
paid to a law firm of which the Secretary of the funds is a partner.
7
<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>
<CAPTION>
PRIME MONEY MARKET FUND
==========================================================================================================================
Six-month
period ended
January 31, 1999 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
- -------------------------------------------------------------------------------------------------------------------------
<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 0.05 0.05
Distributions to shareholders from
investment income .................. (0.02) (0.05) (0.05) (0.05) (0.05)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of peroid ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------------------------------------------------------------------------------------------------
Total return ......................... 2.4% 5.0% 4.9% 5.0% 4.9%
Net assets at end of
period (000s omitted) .............. $4,411,663 $4,844,352 $3,129,854 $2,405,456 $1,598,925
Ratio of expenses to
average daily net assets ........... 0.59%* 0.63% 0.64% 0.70% 0.77%
Ratio of net investment income
to average daily net assets ........ 4.84%* 5.04% 4.90% 4.93% 4.93%
==========================================================================================================================
</TABLE>
* Adjusted to an annual basis.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
===========================================================================================================================
Six-month
period ended
January 31, 1999 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
- --------------------------------------------------------------------------------------------------------------------------
<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 0.05 0.05
Distributions to shareholders from
investment income ................... (0.02) (0.05) (0.05) (0.05) (0.05)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return ......................... 2.4% 5.0% 4.8% 4.9% 4.8%
Net assets at end of period
(000s omitted) ...................... $257,968 $228,929 $182,155 $146,685 $122,249
Ratio of expenses to average
daily net assets .................... 0.58%* 0.59% 0.60% 0.65% 0.73%
Ratio of net investment income to
average daily net assets ............ 4.68%* 4.98% 4.85% 4.87% 4.94%
===========================================================================================================================
</TABLE>
* Adjusted to an annual basis.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
===========================================================================================================================
Six-month
period ended
January 31, 1999 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1998 July 31, 1997 July 31, 1996 July 31, 1995
- ---------------------------------------------------------------------------------------------------------------------------
<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 ............... 0.01 0.03 0.03 0.03 0.03
Distributions to shareholders from
investment income ................... (0.01) (0.03) (0.03) (0.03) (0.03)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------
Total return ......................... 1.4% 3.1% 3.0% 3.0% 3.1%
Net assets at end of period
(000s omitted) ...................... $511,941 $545,849 $422,740 $359,153 $363,273
Ratio of expenses to average
daily net assets .................... 0.58%* 0.58% 0.58% 0.59% 0.60%
Ratio of net investment income to
average daily net assets ............ 2.77%* 3.05% 3.02% 3.03% 3.14%
===========================================================================================================================
</TABLE>
* Adjusted to an annual basis.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME MONEY MARKET FUND
==========================================================================================================
Six-month Period from
period ended August 11, 1997*
January 31, 1999 to
(unaudited) July 31, 1998
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period ......................... $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------
Income from investment operations ............................ 0.03 0.05
Distributions to shareholders from investment income ......... (0.03) (0.05)
- ----------------------------------------------------------------------------------------------------------
Net asset value, end of period ............................... $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------
Total return ................................................. 2.5% 5.2%
Net assets at end of period (000s omitted) ................... $273,693 $213,785
Ratio of expenses to average daily net assets** .............. 0.38% 0.39%
Ratio of net investment income to average
daily net assets** ......................................... 5.03% 5.27%
==========================================================================================================
</TABLE>
* 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 July 31, 1998. Had the Fund paid all
expenses, the ratio of expenses and net investment income to average daily
net assets would have been 0.42%/5.24% for the period ended July 31, 1998.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
================================================================================================
Period from
September 23, 1998*
to January 31, 1999
(unaudited)
- ------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period ................................. $ 1.00
- ------------------------------------------------------------------------------------------------
Income from investment operations .................................... 0.01
Distributions to shareholders from investment income ................. (0.01)
- ------------------------------------------------------------------------------------------------
Net asset value, end of period ....................................... $ 1.00
- ------------------------------------------------------------------------------------------------
Total return ......................................................... 1.3%
Net assets at end of period (000s omitted) ........................... $62,857
Ratio of expenses to average daily net assets** ...................... 0.16%
Ratio of net investment income to average daily net assets** ......... 3.00%
================================================================================================
</TABLE>
* Commencement of operations.
** Adjusted to an annual basis. Various fund fees and expenses were
voluntarily waived or absorbed by IIM for the Institutional Tax-Free Money
Market Fund during the period ended January 31, 1999. Had the Fund paid
all expenses, the ratio of expenses and net investment income to average
daily net assets would have been 0.41%/2.75% for the period ended January
31, 1999.
12
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
===================================================================================================================
(Percentages of each investment category relate to total net assets.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (99.76%):
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AGRICULTURAL PRODUCTS (1.58%)
Archer Daniels Midland Company, 4.77%-5.20%, 2/18/99-5/4/99 $ 70,000,000 $ 69,543,683
--------------
BANKS - DOMESTIC (14.90%)
Bankers Trust Company, 5.84%, 4/30/99 10,000,000 9,998,616
Branch Banking & Trust Company, 5.25%, 10/8/99 10,000,000 10,043,074
COFCO Capital Corporation, 5.12%, 3/22/99, LOC Bank of America 10,460,000 10,387,105
Commed Fuel Company, Inc., 5.15%, 2/22/99,
LOC First National Bank of Chicago 16,063,000 16,014,745
First National Bank of Chicago, 5.24%-5.72%, 2/8/99-4/1/99 52,500,000 52,498,606
First Tennessee Bank, 4.84%-4.90%, 3/12/99-4/26/99 98,100,000 98,099,696
First Union National Bank, Charlotte, 4.99%-5.42%, 10/21/99-11/10/99 64,700,000 (c) 64,700,000
Key Bank N.A., Cleveland, 4.89%-5.23%, 9/23/99-2/18/00 50,000,000 (c) 50,005,374
LaSalle Bank, Chicago, 4.94%-5.01%, 5/4/99-2/1/00 49,600,000 49,590,351
Morgan Guaranty Trust, 4.90%, 5/14/99 30,000,000 30,000,000
NationsBank, 4.84%-5.07%, 4/23/99-5/19/99 50,000,000 50,000,000
Old Kent Bank, 4.89%-5.14%, 2/22/99-8/17/99 70,000,000 70,000,000
PNC Bank N.A., 4.95%, 8/3/99 50,000,000 (c) 49,983,308
Regionsbank N.A., Birmingham, 4.84%-4.87%, 3/22/99-8/18/99 61,100,000 61,100,000
U.S. Bank N.A., Minneapolis, 4.93%, 4/8/99 34,890,000 34,890,000
--------------
657,310,875
--------------
BANKS - OTHER (19.03%)
ABN-AMRO, 5.01%-5.63%, 3/12/99-11/17/99 53,250,000 53,244,043
Abbey National North America, 4.79%, 4/15/99 40,000,000 39,611,478
Abbey National Treasury Services, 4.82%, 7/20/99 30,000,000 (c) 29,988,782
Banco Bradesco SA, 5.12%, 2/17/99, LOC Barclays Bank 25,000,000 24,943,111
Bank of Nova Scotia, 4.93%-5.65%, 2/17/99-4/12/99 83,000,000 82,997,748
Banque National de Paris, 4.85%-5.64%, 3/19/99-7/12/99 79,700,000 79,699,712
Barclays Bank, 5.65%, 3/2/99 10,000,000 9,999,657
Canadian Imperial Bank of Commerce, 5.03%-5.05%, 4/27/99-1/27/00 70,000,000 70,349,360
Deutsche Bank, 4.84%-5.82%, 4/12/99-5/3/99 54,500,000 54,502,219
Formosa Plastics USA, 4.85%-5.17%, 2/12/99-3/12/99, LOC ABN-AMRO 40,000,000 39,893,131
JMG Funding Inc., 4.81%-4.85%, 2/26/99-4/29/99, LOC Societe Generale 31,945,000 31,672,285
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
13
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
======================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BANKS - OTHER (CONTINUED)
National Westminster Bank, 5.02%-5.70%, 3/30/99-1/10/00 $ 75,000,000 $ 74,982,783
Presbyterian Healthcare Services, 4.87%, 3/10/99,
LOC Toronto-Dominion Bank 24,000,000 23,879,874
Rabobank Nederland, 4.98%, 1/10/00 25,000,000 24,990,936
Royal Bank of Canada, 5.05%-5.65%, 4/14/99-7/9/99 54,250,000 54,246,569
Societe Generale, 4.96%-5.76%, 3/23/99-4/16/99 41,200,000 41,198,274
Swiss Bank Corporation, 5.63%-5.72%, 3/24/99-4/5/99 34,500,000 34,496,068
Toronto Dominion Holdings, Inc., 5.00%-5.08%, 5/13/99-1/5/00 68,600,000 68,593,972
--------------
839,290,002
--------------
BUSINESS MACHINES (0.16%)
Pitney Bowes Credit Corporation, 4.77%, 2/1/99 7,205,000 7,205,000
--------------
CHEMICALS (3.71%)
Air Products and Chemicals, Inc., 4.85%, 3/31/99-6/28/99 41,300,000 40,685,922
Dow Chemical Company, 4.77%, 2/1/99 40,000,000 40,000,000
Dupont (E.I.) deNemours & Co., 5.04%, 2/2/99 18,000,000 17,997,480
Henkel Corporation, 4.74%-5.00%, 4/1/99-7/20/99 35,610,000 (c) 35,056,591
PPG Industries, 4.87%, 2/4/99 30,000,000 29,987,825
--------------
163,727,818
--------------
CONGLOMERATES (2.05%)
Diageo Capital PLC, 4.85%-5.05%, 2/1/99-4/9/99 90,532,000 (c) 90,212,956
--------------
DRUGS AND COSMETICS (0.79%)
A.C. Acquisition Holding Company, 4.85%-5.05%, 2/3/99-3/11/99
Guaranty: American Home Products 35,000,000 34,893,403
--------------
ELECTRONICS (0.21%),
Vermont American Corporation, 4.82%, 3/3/99, Guaranty: Emerson Electric 9,100,000 (c) 9,063,449
--------------
ENTERTAINMENT (0.99%)
Carnival (U.K.) PLC, 5.50%, 2/5/99 43,800,000 43,774,000
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
14
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
=====================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL - AUTO (3.11%)
Ford Motor Credit Corporation, 4.80%-4.85%, 4/7/99-4/13/99 $ 50,675,000 $ 50,217,047
General Motors Acceptance Corporation, 4.79%-4.95%, 3/4/99-7/6/99 64,810,000 (d) 64,597,452
Toyota Motor Credit Corporation, 4.77%, 4/12/99 22,580,000 22,370,571
--------------
137,185,070
--------------
FINANCIAL - AVIATION (1.40%)
International Lease Finance Corporation, 4.78%-5.12%, 2/2/99-5/6/99 62,000,000 61,616,753
--------------
FINANCIAL - DIVERSIFIED BUSINESS (16.13%)
American General Finance Corporation, 4.81%-5.05%, 2/24/99-3/12/99 65,390,000 65,127,068
Associates Corporation of North America, 4.79%-5.28%, 2/1/99-9/1/99 95,655,000 95,771,217
CIT Group Holdings, 5.04%, 1/14/00 30,000,000 (d) 29,976,183
Commercial Credit Corporation, 4.83%-5.07%, 2/1/99-3/11/99 65,000,000 64,806,800
General Electric Capital Corporation, 4.86%-4.99%, 3/16/99-4/20/99 50,800,000 50,375,934
Goldman Sachs, 4.90%-5.15%, 3/1/99-1/13/00 74,040,000 73,834,159
Household Finance Company/Beneficial Corporation, 4.80%-5.21%,
3/18/99-5/4/99 95,000,000 (d) 94,280,883
Merrill Lynch & Co., 5.03%-5.68%, 2/11/99-10/18/99 100,000,000 (d) 99,971,778
Morgan (J.P.) and Company, 4.78%-5.10%, 2/8/99-5/20/99 38,000,000 (d) 37,836,361
Morgan Stanley Dean Witter Discover, 5.14%-5.31%, 2/5/99-7/19/99 25,000,000 (d) 25,031,905
Wells Fargo & Company, 4.83%-5.14%, 2/25/99-3/31/99 75,000,000 74,496,628
--------------
711,508,916
--------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (22.24%)
Asset Securitization Coop. Corporation, 4.80%-4.85%, 3/10/99-4/15/99 79,000,000 (c) 78,340,049
Barton Capital Corporation, 4.83%-5.33%, 2/9/99-3/26/99 74,817,000 (c) 74,541,280
Delaware Funding Corporation, 4.81%-5.25%, 2/16/99-4/27/99 69,888,000 (c) 69,442,960
Edison Asset Securitization, 4.81%-5.35%, 2/12/99-4/30/99 90,401,000 (c) 89,688,121
Falcon Asset Securitization, 4.83%-5.37%, 2/8/99-3/22/99 98,455,000 (c) 98,074,275
Monte Rosa Capital Corporation, 4.88%-5.43%, 2/10/99-3/12/99 109,307,000 (c) 109,012,003
Preferred Receivables Funding Corporation, 4.87%-5.31%, 2/2/99-3/16/99 99,650,000 (c) 99,373,837
Receivables Capital Corporation, 4.82%-5.31%, 2/2/99-3/5/99 97,156,000 (c) 96,967,861
Redwood Receivables Corporation, 4.90%-5.25%, 2/11/99-3/2/99 48,327,000 (c) 48,210,909
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
15
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (CONTINUED)
Triple A One Funding, 4.85%-4.87%, 2/1/99-3/19/99 $ 96,584,000 (c) $ 96,260,648
Variable Funding Capital Corporation, 4.90%, 3/8/99 20,000,000 (c) 19,904,722
Windmill Funding Corporation, 4.85%-5.25%, 2/23/99-3/18/99 102,017,000 (c) 101,538,890
--------------
981,355,555
--------------
HOUSEHOLD PRODUCTS (1.13%)
Fortune Brands, Inc., 4.81%-4.85%, 2/19/99-2/26/99 50,000,000 (c) 49,860,594
--------------
MANUFACTURING (1.82%)
Caterpillar Financial Services Inc., 4.80%-5.25%, 2/1/99-3/23/99 80,700,000 80,327,860
--------------
METALS AND MINING (0.99%)
Aluminum Company of America, 4.86%-5.10%, 2/11/99-3/19/99 44,000,000 43,841,800
--------------
MUNICIPALS (1.36%):
New York City G.O.,
5.25%-5.28%, 2/9/99-2/10/99, FGIC Insured 27,755,000 27,755,000
Parish of West Baton Rouge Industrial District #3,
5.32%, 2/18/99, Guaranty: Dow Chemical 28,000,000 28,000,000
State of Connecticut G.O. 5.79%, 8/1/99 4,400,000 4,397,070
--------------
60,152,070
--------------
OIL SERVICES (2.21%)
American Petrofina Holding Company, 4.82%, 4/9/99 29,000,000 (c) 28,739,854
Mobil Australia Finance Company, 5.08%, 2/8/99 19,111,000 19,092,123
Petrofina Delaware, 5.18%, 2/24/99 20,000,000 19,933,811
Texaco Inc., 4.80%, 3/1/99 30,000,000 29,888,000
--------------
97,653,788
--------------
RETAIL STORES (1.70%)
J.C. Penney Funding Inc., 5.00%-5.14%, 2/5/99-4/22/99 75,550,000 (c) 75,210,780
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
16
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
========================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (0.56%)
BellSouth Telecommunications, 4.81%, 3/24/99 $ 25,000,000 $ 24,829,646
--------------
UTILITIES - ELECTRIC (2.22%)
Baltimore Gas & Electric Company, 5.18%, 9/1/99 34,000,000 (d) 34,000,000
Carolina Power & Light, 4.72%-4.80%, 2/25/99-4/19/99 34,235,000 33,992,812
Southern California Edison, 4.81%, 3/17/99 27,000,000 26,841,270
Tampa Electric Company, 4.80%, 2/10/99 3,000,000 (c) 2,996,400
--------------
97,830,482
--------------
UTILITIES - FINANCIAL (1.47%)
National Rural Utilities Cooperative Finance Corporation,
5.00%-5.12%, 2/3/99-3/11/99 65,000,000 64,829,431
- ------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $4,401,223,931) $4,401,223,931
- ------------------------------------------------------------------------------------------------------------------------
GOVERNMENT & AGENCIES SECURITIES (0.45%):
- ------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 4.76%, 2/26/99 20,000,000 (d) 19,999,329
- ------------------------------------------------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $19,999,329) $ 19,999,329
- ------------------------------------------------------------------------------------------------------------------------
Total Investment in Securities (cost: $4,421,223,260) (b) $4,421,223,260
========================================================================================================================
</TABLE>
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, 1999.
17
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
==========================================================================================================================
(Percentages of each investment category relate to total net assets.)
GOVERNMENT & AGENCIES SECURITIES (92.73%):
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (37.68%)
4.75%-5.54%, 2/2/99-1/27/00 $ 97,579,000 $ 97,207,468
FEDERAL HOME LOAN MORTGAGE CORPORATION (30.00%)
4.70%-5.62%, 2/10/99-8/27/99 77,649,000 (c) 77,410,925
FEDERAL HOME LOAN BANK (20.45%)
4.74%-5.62%, 2/5/99-4/7/99 52,855,000 (c) 52,743,841
FEDERAL FARM CREDIT BANK (3.82%)
4.72%-5.06%, 3/1/99-6/1/99 9,850,000 (c) 9,847,985
STUDENT LOAN MARKETING ASSOCIATION (0.78%)
4.61%, 2/22/99 2,000,000 (c) 1,999,808
- --------------------------------------------------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $239,210,027) (b) $239,210,027
- --------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (6.97%)
- --------------------------------------------------------------------------------------------------------------------------
Merrill Lynch, 4.70%, acquired 1/29/99 and due 2/1/99 with accrued interest of
$7,046 (collateralized by $18,351,000 Federal Home Loan Bank Note,
4.66%, 10/15/01) (cost: $17,990,000) 17,990,000 17,990,000
- --------------------------------------------------------------------------------------------------------------------------
Total Investment in Securities (cost: $257,200,027) (b) $257,200,027
==========================================================================================================================
</TABLE>
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, 1999.
18
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=========================================================================================================================
(Percentages of each investment category relate to total net assets.)
<S> <C> <C>
ALASKA (1.54%)
Anchorage Alaska Water Revenue, 3.50%, 8/1/99, FSA Insured $ 1,000,000 $ 1,004,829
North Slope Borough, 3.12%, 6/30/99, MBIA Insured 7,000,000 6,896,344
------------
7,901,173
------------
ARIZONA (0.72%)
Maricopa County PCR (El Paso Elect), 2.75%, 12/1/14, LOC Barclays Bank 2,100,000 (b) 2,100,000
Scottsdale Arizona IDA Hospital, 3.24%, 9/1/99, AMBAC Insured 1,560,000 1,586,560
------------
3,686,560
------------
ARKANSAS (0.39%)
Fayetteville Arkansas Public Facility Board (Butterfield Trail Project)
2.75%, 9/1/27, LOC Dresdner Bank 2,000,000 (b) 2,000,000
------------
CALIFORNIA (0.53%)
Los Angeles Regional Airports Improvement Corp. Lease Revenue
3.25%, 12/1/24, LOC Wachovia Bank of Georgia 200,000 (b) 200,000
3.25%, 12/1/25, LOC Societe Generale 500,000 (b) 500,000
School Cash Reserve Program Authority Series A,
3.74%, 7/2/99, AMBAC Insured 2,000,000 2,006,057
------------
2,706,057
------------
COLORADO (4.40%)
Adams County Family Housing Revenue (Hunters Cove Project)
Series 1985A, 2.95%, 1/15/14, LOC GECC 7,500,000 (b) 7,500,000
Aurora Centretech Metro District, 3.40%, 12/1/99, LOC Banque
National de Paris 1,000,000 1,000,000
Central Platte Valley Metro District, 3.55%, 10/1/99, MBIA Insured 1,000,000 999,993
Denver City & County MFHR (Parliament Apartments),
2.95%, 6/1/06, LOC GECC 2,200,000 (b) 2,200,000
Dove Valley Metro District, 3.38%, 11/1/99, LOC Banque National de Paris 4,925,000 4,925,000
Health Facilities Authority Revenue (Visiting Nurses),
3.25%, 7/1/22, LOC Norwest Bank 1,090,000 (b) 1,090,000
Interstate South Metro District, 3.38%, 11/1/99, LOC Banque National de Paris 3,270,000 3,270,000
SBC Metro District, 3.35%, 12/1/99, LOC U.S. Bank 1,555,000 1,555,000
------------
22,539,993
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
19
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
==========================================================================================================================
<S> <C> <C>
DELAWARE (0.94%)
Delaware Valley Regional Finance Authority, 2.70%, 12/1/20, LOC Credit Suisse $ 1,200,000 (b) $ 1,200,000
New Castle County Development Authority, 2.30%, 8/15/20,
LOC First Union National Bank 3,607,500 (b) 3,607,500
------------
4,807,500
------------
FLORIDA (1.94%)
Hillsborough County Florida Utility, 3.12%, 8/1/99, MBIA Insured 2,000,000 1,970,334
West Orange Memorial Hospital, 2.95%-3.00%, 2/18/99-3/11/99,
LOC Rabobank Nederland 7,950,000 7,950,000
------------
9,920,334
------------
GEORGIA (3.10%)
Dougherty County School District Sales Tax Bonds Series 1998 (Board of
Education Intercept Program, 3.65%, 3/1/99 1,500,000 1,500,000
Fulton County Residential Home Care, 2.75%, 1/1/18, LOC Rabobank
Nederland 9,700,000 (b) 9,700,000
Hapeville Development Authority, 3.20%, 11/1/15, LOC Deutsche Bank 3,700,000 (b) 3,700,000
State of Georgia G.O., 3.85%, 4/1/99, Escrowed in Governments 955,000 979,079
------------
15,879,079
------------
HAWAII (1.37%)
State of Hawaii G.O., 2.43%, 4/1/13, MBIA Insured 7,000,000 (b) 7,000,000
------------
ILLINOIS (10.93%)
Chicago G.O., 3.55%, 2/4/99, LOC Morgan Guaranty 3,000,000 2,999,973
Chicago O'Hare International Airport, 2.75%, 1/1/15, LOC Societe Generale 3,200,000 (b) 3,200,000
City of Springfield Community Improvement Revenue Bonds Series 1985, (Realty
Restoration Project), 2.95%, 12/1/15, Overcollateralized in U.S.
Governments 3,100,000 (b) 3,100,000
City of Springfield MFHR (OT Center Limited Project), 7,700,000 (b) 7,700,000
2.95%, 12/1/15, Overcollateralized in U.S. Governments
Cook County Community College #508, 3.15%, 12/1/99, MBIA Insured 1,000,000 1,033,645
Development Finance Authority (A.E. Stanley Manufacturing),
2.70%, 12/1/05, LOC Union Bank of Switzerland 1,600,000 (b) 1,600,000
Health Facilities Authority (Children's Memorial Hospital Project),
Series 1985B, 2.70%, 11/1/15, LOC First National Bank of Chicago 10,400,000 (b) 10,400,000
Health Facilities Authority, 2.40%, 2/11/99-3/10/99, MBIA Insured 4,970,000 4,970,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
20
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
==========================================================================================================================
<S> <C> <C>
ILLINOIS (CONTINUED)
Health Facilities Authority Revenue,
(Lutheran Health Systems), 3.75%, 4/1/99, Prerefunded $ 1,750,000 $ 1,794,745
(Hospital Sisters Services), 3.44%, 6/1/99, MBIA Insured 2,500,000 2,520,573
3.25%, 11/1/20, LOC Rabobank Nederland 6,660,000 (b) 6,660,000
Joliet Regional Port District IDR Bonds, 3.25%, 7/15/03, Guaranty:
Dow Chemical 8,795,000 (b) 8,795,000
Northwest Suburban Municipal Joint Action Water Agency,
(Water Supply System Revenue), 3.82%, 5/1/99, MBIA Insured 1,200,000 1,204,490
------------
55,978,426
------------
INDIANA (3.69%)
Health Facilities Financing Authority Hospital Revenue Bonds Series 1990,
2.65%, 11/1/20, LOC National Bank of Detroit 2,000,000 (b) 2,000,000
Health Facilities Financing Authority, 2.70%, 1/1/22, LOC First Chicago 1,600,000 (b) 1,600,000
Health Facilities Financing Authority (Capital Access Designated Pool Program)
2.75%, 12/1/02-4/1/13, LOC Comerica Bank 14,675,000 (b) 14,675,000
Health Facilities Financing Authority (St. Anthony Medical Center)
2.70%, 12/1/14-12/1/17, LOC Rabobank Nederland 300,000 (b) 300,000
Hospital Equipment Finance Authority, 2.75%, 12/1/15, MBIA Insured 300,000 (b) 300,000
------------
18,875,000
------------
IOWA (4.78%)
Financial Authority Revenue (Burlington Medical Center),
2.80%, 6/1/27, FSA Insured 17,900,000 (b) 17,900,000
Higher Education Loan Authority Revenue (Palmer Chiropractic),
2.85%, 4/1/27, LOC Firstar Bank N.A. 3,595,000 (b) 3,595,000
Mount Vernon Private College Project (Cornell) Series 1985,
2.25%, 10/1/15, LOC U.S. Bank 3,000,000 (b) 3,000,000
------------
24,495,000
------------
KANSAS (0.51%)
Kansas City IDR, 2.85%, 8/1/15, LOC Credit Suisse 2,000,000 (b) 2,000,000
State Development Finance Authority Health Facilities Revenue, (Stormont Vail
Healthcare) 2.80%, 11/15/23, MBIA Insured 600,000 (b) 600,000
------------
2,600,000
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
21
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=========================================================================================================================
<S> <C> <C>
KENTUCKY (0.55%)
Economic Development Finance Authority (Baptist Healthcare),
3.05%, 8/15/99, MBIA Insured $ 1,800,000 $ 1,808,941
State Property and Buildings Community Revenue, 3.05%, 9/1/99 1,000,000 1,006,211
------------
2,815,152
------------
LOUISIANA (2.64%)
Parish of East Baton Rouge, 2.85%, 11/1/19, Guaranty: Exxon Corporation 3,200,000 (b) 3,200,000
Public Facility Authority (Kenner Hotel), 2.85%, 12/1/15, LOC Deutsche Bank 6,600,000 (b) 6,600,000
Plaquemines Port Harbor and Terminal, 3.60%, 3/15/99, LOC Morgan Guaranty 2,500,000 2,499,427
St. Tammany School District No. 12, 3.68%, 3/1/99, FSA Insured 1,235,000 1,237,861
------------
13,537,288
------------
MARYLAND (4.18%)
Anne Arundel County Port Facilities Revenue,
3.20%-3.40%, 2/11/99-2/24/99, Guaranty: Baltimore Gas & Electric 6,200,000 6,200,000
Montgomery County Housing Opportunity, 2.75%, 11/1/07, LOC GECC 15,200,000 (b) 15,200,000
------------
21,400,000
------------
MASSACHUSETTS (0.35%)
City of Grafton G.O., 3.70%, 2/15/99, MBIA Insured 765,000 765,656
State of Massachusetts G.O., 3.73%, 4/1/99, Prerefunded 1,000,000 1,025,647
------------
1,791,303
------------
MICHIGAN (0.91%)
Delta County Economic Development Authority, 2.85%, 12/1/23,
LOC Bank of Nova Scotia 3,800,000 (b) 3,800,000
Grand Blanc Community Schools G.O., 3.75%, 5/1/99 840,000 843,476
------------
4,643,476
------------
MINNESOTA (2.13%)
Beltrami County Environmental, 3.20%, 12/1/21, LOC United Bank of Switzerland 100,000 (b) 100,000
City of Cohasset (MN Power & Light Project), 2.75%, 6/1/20, LOC ABN-AMRO 200,000 (b) 200,000
City of Duluth Tax Increment Revenue, 2.65%, 9/1/10, LOC Wachovia Bank 500,000 (b) 500,000
Minneapolis/St. Paul State Housing & Redevelopment Authority,
2.80%, 8/15/25, FSA Insured 4,000,000 (b) 4,000,000
St. Paul Housing and Redevelopment Authority (Science Museum of MN
Project), 2.70%-2.90%, 5/1/27, LOC U.S. Bank 6,100,000 (b) 6,100,000
------------
10,900,000
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
22
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=====================================================================================================================
<S> <C> <C>
MISSISSIPPI (0.45%)
State Highway Revenue Series #39, 3.10%, 2/1/00, Prerefunded $ 2,359,720 $ 2,288,150
------------
MISSOURI (4.80%)
Independence IDA (Groves & Graceland), 2.75%, 11/1/27,
LOC Credit Local de France 9,300,000 (b) 9,300,000
State Environmental Improvement & Energy Resource Authority PCR,
3.75%, 6/15/99, LOC Union Bank of Switzerland 4,200,000 4,200,000
State Health and Education Facilities Authority Revenue Series A
(Christian Health Services Project), 2.70%, 11/1/19, LOC Morgan Guaranty 1,000,000 (b) 1,000,000
State Health and Education Facilities Authority Revenue
(Kirkwood School District), 3.65%, 9/13/99 2,375,000 2,383,403
State Health and Education Facilities Authority Revenue
(St. Francis Medical Center), 2.75%, 6/1/26, LOC Credit Local de France 7,700,000 (b) 7,700,000
------------
24,583,403
------------
MONTANA (1.78%)
State Health Facilities Authority Revenue Bonds
Series A, 2.70%, 12/1/15, FGIC Insured 9,105,000 (b) 9,105,000
------------
NEVADA (0.59%)
Clark County Airport System Refunding Revenue Notes,
2.65%, 7/1/25, LOC United Bank of Switzerland 3,000,000 (b) 3,000,000
------------
NEW JERSEY (0.68%)
Economic Development Authority Revenue Bonds,
2.75%, 5/1/01, Guaranty: Dow Chemical 1,500,000 (b) 1,500,000
Economic Development Authority (Volvo American Corp.),
2.29%, 12/1/04, LOC Credit Suisse 1,200,000 (b) 1,200,000
Passaic County Utilities Authority Revenue Bonds,
3.50%, 3/1/99, MBIA Insured 775,000 772,936
------------
3,472,936
------------
NEW YORK (4.81%)
Campbell-Savona Central School District, 3.80%, 6/15/99, MBIA Insured 845,000 847,109
New York City G.O.
2.85%-3.30%, 8/1/18-8/15/19, LOC Morgan Guaranty 2,870,000 (b) 2,870,000
2.85%, 8/15/18, AMBAC Insured 1,700,000 (b) 1,700,000
3.30%, 10/01/22, FGIC Insured 600,000 (b) 600,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
23
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=========================================================================================================================
<S> <C> <C>
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority,
2.85%, 6/15/24, FGIC Insured $ 2,200,000 (b) $ 2,200,000
New York City Water Finance Authority, 2.85%, 6/15/23, FGIC Insured 3,250,000 (b) 3,250,000
New York City Health and Hospital (Health Systems),
2.50%, 2/15/26, LOC Morgan Guaranty 4,300,000 (b) 4,300,000
New York City Housing Development MFHR Series 1997A, 2.45%, 11/15/19,
(Federal National Mortgage Association Collateral Agreement) 4,700,000 (b) 4,700,000
State Dorm Authority Revenue, 3.80%, 2/15/99, AMBAC Insured 1,000,000 1,000,350
St. Lawrence County IDA (Reynolds Metals Project),
2.85%, 12/1/07, LOC Bank of Nova Scotia 3,145,000 (b) 3,145,000
------------
24,612,459
------------
NORTH CAROLINA (1.33%)
State Medical Center Commission Revenues (Carol Woods Project),
3.25%, 4/1/21, LOC NationsBank 6,800,000 (b) 6,800,000
------------
NORTH DAKOTA (0.60%)
State Housing Finance Agency, 3.20%, 7/1/99 3,075,000 3,075,000
------------
OHIO (2.72%)
Warren County Ohio Health Care Facility (Otterbein Homes),
2.60%, 7/1/23, LOC Fifth Third Bank 8,800,000 (b) 8,800,000
Miami County Hospital Facilities Refunding and Improvement,
(Upper Valley Medical Center), 3.80%, 5/15/99, MBIA Insured 1,125,000 1,128,699
Sandusky Bond Anticipation Notes, 3.68%, 7/29/99 4,000,000 4,008,368
------------
13,937,067
------------
OKLAHOMA (0.20%)
Garfield County Industrial Authority PCR, 2.95%, 1/1/25,
Guaranty: Oklahoma Gas & Electric 1,000,000 (b) 1,000,000
------------
PENNSYLVANIA (7.58%)
Allegheny County Industrial Development Authority,
2.40%, 7/1/27, LOC Dresdner Bank 1,400,000 (b) 1,400,000
(Longwood at Oakmont Inc. Project), 3.30%, 7/1/27, LOC Dresdner Bank 1,500,000 (b) 1,500,000
Beaver County IDA Pollution Control Revenue Bonds
2.90%-3.00%, 2/12/99-4/8/99, LOC United Bank of Switzerland 14,600,000 14,600,000
Delaware Valley Regional Finance Authority, 2.70%, 8/1/16, LOC Credit Suisse 1,800,000 (b) 1,800,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
24
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=======================================================================================================================
<S> <C> <C>
PENNSYLVANIA (CONTINUED)
Lehigh County IDA (Allegheny Electric Coop.) Series 1985,
3.05%, 12/1/15, LOC Rabobank Nederland $ 2,800,000 (b) $ 2,800,000
Philadelphia Water and Wastewater Revenue, 3.05%, 8/1/99, AMBAC Insured 1,000,000 1,004,831
Quakertown Hospital Authority, 2.90%, 7/1/05, LOC PNC Bank 15,700,000 (b) 15,700,000
------------
38,804,831
------------
SOUTH CAROLINA (4.58%)
Berkeley County PCR Revenue, 2.80%, 12/1/08, LOC Royal Bank of Canada 10,725,000 (b) 10,725,000
York County PCR, 2.45%-3.10%, 2/9/99-6/10/99, Guaranty: Duke Power
Company 12,700,000 12,700,000
------------
23,425,000
------------
SOUTH DAKOTA (0.30%)
Housing Development Authority (Homeownership Mortgage), 3.25%, 5/1/99 1,530,000 1,530,000
------------
TENNESSEE (2.36%)
Montgomery County Public Building Authority, 3.20%, 7/1/15, LOC
NationsBank 5,700,000 (b) 5,700,000
Nashville and Davidson County Health and Education Facility,
2.70%, 8/1/18, LOC NationsBank 6,400,000 (b) 6,400,000
------------
12,100,000
------------
TEXAS (6.74%)
Amarillo Independent School District, 3.75%, 2/1/99, Texas PSF guaranteed 1,555,000 1,555,000
Austin Independent School District, 3.54%, 8/1/99, Texas PSF guaranteed 1,000,000 1,012,866
Brownsville Utility System Revenue Bond, 3.58%, 9/1/99, AMBAC Insured 1,000,000 1,008,004
Clint Independent School District, 3.65%, 3/1/99, Texas PSF guaranteed 825,000 825,000
Cypress-Fairbanks Independent School District, 3.70%, 2/1/99, 1,075,000 1,075,000
Texas PSF Guaranteed
Dallas County Mental Health Center Facility Revenue Bond,
3.30%, 9/1/99, FSA Insured 1,025,000 1,036,589
Goose Creek Consolidated Independent School District
Capital Appreciation Bonds, 3.68%, 2/15/99, Texas PSF guaranteed 1,200,000 1,198,361
Harris County Health Facilities Development Corp. Hospital Revenue,
3.28%-3.48%, 10/1/99, MBIA Insured 8,675,000 8,483,067
Lone Star Airport Improvement, 2.80%, 12/1/14, LOC Royal Bank of Canada 1,100,000 (b) 1,100,000
North East Independent School District, 3.15%, 2/1/00 Texas PSF guaranteed 2,150,000 2,230,580
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
25
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
======================================================================================================================
<S> <C> <C>
TEXAS (CONTINUED)
Nueces River Authority PCR (Reynolds Metals Co. Project),
3.25%, 12/01/99, LOC Bank of Nova Scotia $ 7,300,000 $ 7,300,000
Pharr-San Juan-Alamo Independent School District G.O., 3.75%, 2/1/99,
Texas PSF guaranteed 1,545,000 1,545,000
San Antonio Electric and Gas Revenue Refunding Improvement,
3.75%, 2/1/99, Prerefunded 2,100,000 2,131,500
Tarrant County Housing Finance Corporation, MFHR - Single
Family Apartments Project, 2.80%, 11/1/17, LOC Suntrust Bank 4,025,000 (b) 4,025,000
------------
34,525,967
------------
UTAH (3.75%)
Intermountain Power Agency, 2.95%, 3/10/99, LOC Bank of America 2,500,000 2,500,000
Intermountain Power Agency, 3.00%, 3/18/99, AMBAC Insured 3,500,000 3,500,000
State Board of Regents Student Loan Revenue Bonds
Series B, 2.70%, 11/1/00, AMBAC Insured 13,200,000 (b) 13,200,000
------------
19,200,000
------------
WASHINGTON (4.00%)
City of Federal Way G.O., 3.82%, 6/1/99, AMBAC Insured 1,200,000 1,204,500
State of Washington G.O., (Motor Vehicle Fuel Tax),
3.80%, 3/1/99, Escrowed in Governments 750,000 751,937
State Health Care Facilities Authority, 2.80%, 1/1/18, LOC Morgan Guaranty 3,420,000 (b) 3,420,000
State Health Care Facilities Authority (Fred Hutchinson
Cancer Center), 3.25%, 1/1/23, LOC Morgan Guaranty 4,850,000 (b) 4,850,000
State Housing Finance Commission, 3.25%, 7/1/11-1/1/21, LOC U.S. Bank 10,260,000 (b) 10,260,000
------------
20,486,437
------------
WEST VIRGINIA (0.20%)
Weirton Hospital Building, 3.10%, 12/1/99, AMBAC Insured 1,000,000 1,017,839
------------
WISCONSIN (1.31%)
La Crosse IDA (Dairyland Power Cooperative), 3.20%, 9/1/14, AMBAC Insured 400,000 (b) 400,000
City of Madison G.O., 3.70%, 5/1/99 2,280,000 2,281,888
State Health and Educational Facilities Authority, 2.85%, 10/1/26,
LOC Firstar Bank 1,000,000 (b) 1,000,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
26
<PAGE>
TAX-FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=====================================================================================================================
<S> <C> <C>
WISCONSIN (CONTINUED)
State of Wisconsin G.O., 3.78%, 5/1/99 $ 3,000,000 $ 3,003,330
------------
6,685,218
------------
WYOMING (6.33%)
Converse County PCR, 3.80%, 2/3/99-2/5/99, LOC Deutsche Bank 6,400,000 6,400,000
Gillette Campbell County, 3.00%-3.40%, 2/5/99-2/10/99, LOC Deutsche Bank 5,600,000 5,600,000
Lincoln County PCR, 2.85%, 11/1/14, Guaranty: Exxon Corporation 14,800,000 (b) 14,800,000
Platte County PCR, 3.20%, 7/1/14, LOC National Rural
Utilities Cooperative Finance Corporation 2,400,000 (b) 2,400,000
Sweetwater County PCR,
3.05%, 2/10/99, LOC Union Bank of Switzerland 3,200,000 3,200,000
------------
32,400,000
- ---------------------------------------------------------------------------------------------------------------------
Total Investments in Securities (cost: $515,525,648) (d) $515,525,648
=====================================================================================================================
</TABLE>
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, 1999. 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
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance Corporation
G.O. - General Obligation
GECC - General Electric Capital Corporation
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 - Permanent School Fund
(d) Also represents cost for federal income tax purposes.
27
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
================================================================================================================
(Percentages of each investment category relate to total net assets.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (97.45%):
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BANKS - DOMESTIC (22.51%)
Aes Hawaii Inc., 5.05%, 3/5/99, LOC NationsBank N.A. $ 3,950,000 $ 3,932,268
Chase Manhattan Bank/Chemical Bank, 5.62%, 11/02/99 5,000,000 5,014,611
First National Bank of Chicago, 4.84%-5.75%, 4/1/99-5/10/99 12,470,000 12,469,809
First Union National Bank, Charlotte, 5.42%, 11/10/99 5,300,000 (d) 5,300,000
Key Bank N.A., Cleveland, 5.23%, 2/18/00 10,000,000 (d) 10,005,051
NationsBank, 5.07%, 5/19/99 5,000,000 5,000,000
Old Kent Bank, 5.14%, 3/29/99 10,000,000 10,000,000
Regionsbank N.A., Birmingham, 4.87%, 8/18/99 9,900,000 9,900,000
------------
61,621,739
------------
BANKS - OTHER (18.74%)
ABN-AMRO, 5.63%, 3/12/99 250,000 249,960
Banco Bradesco S.A., 5.25%-5.36%, 2/18/99-2/19/99, LOC Barclays Bank 13,425,000 13,389,754
Banque National de Paris, 4.94%, 7/12/99 6,300,000 6,300,000
Cemex S.A., 5.26%, 2/10/99, LOC Credit Suisse 12,000,000 11,984,220
Deutsche Bank, 5.71%-5.73%, 4/15/99-4/16/99 2,500,000 2,499,486
Royal Bank of Canada, 5.05%-5.65%, 4/14/99-7/9/99 5,250,000 5,250,015
Sinochem American, Inc., 5.20%, 2/25/99, LOC ABN-AMRO 9,445,000 9,412,257
Societe Generale, 5.76%, 4/16/99 1,500,000 1,499,942
Swiss Bank Corporation, 5.65%, 3/24/99 700,000 699,876
------------
51,285,510
------------
CHEMICALS (4.59%)
Air Products and Chemicals, Inc., 5.00%, 12/15/99 1,300,000 1,310,852
Dow Chemical, 4.77%, 2/1/99 3,025,000 3,025,000
Dupont (E.I.) deNemours & Co., 5.15%, 2/11/99 8,240,000 8,228,212
------------
12,564,064
------------
CONGLOMERATES (3.15%)
Diageo Capital PLC, 5.03%-5.15%, 2/9/99-3/25/99 8,675,000 (c) 8,634,466
------------
DRUGS AND COSMETICS (3.71%)
A.C. Acquisition Holding Company, 5.03%, 3/12/99,
Guaranty: American Home Products 9,295,001 (c) 9,244,351
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
28
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
=================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DRUGS AND COSMETICS (CONTINUED)
Eli Lilly & Company, 5.27%, 2/16/99 $ 900,000 $ 900,542
------------
10,144,893
------------
ENTERTAINMENT (1.90%)
Carnival (U.K.) PLC, 5.50%, 2/5/99 5,205,000 5,201,981
------------
FINANCIAL - AUTO (5.80%)
General Motors Acceptance Corporation, 4.79%, 4/15/99 14,000,000 13,864,017
Toyota Motor Credit Corporation, 4.91%, 9/23/99 2,000,000 (d) 1,999,525
------------
15,863,542
------------
FINANCIAL - AVIATION (3.64%)
International Lease Finance Corporation, 5.04%, 2/22/99 10,000,000 9,970,600
------------
FINANCIAL - DIVERSIFIED BUSINESS (17.21%)
Associates Corporation of North America, 5.10%-5.36%, 5/15/99-9/17/99 2,500,000 2,516,669
Barton Capital Corporation, 4.84%-5.41%, 2/10/99-3/9/99 13,215,000 (c) 13,179,689
General Electric Capital Corporation, 5.48%, 2/11/99 9,240,000 9,225,935
Goldman Sachs, 5.10%, 3/9/99 1,125,000 1,119,263
Household Finance Corporation, 5.11%, 10/12/99 5,000,000 (d) 4,998,341
Morgan (J.P.) and Company, 4.97%, 4/5/99 2,000,000 (d) 1,999,899
Morgan Stanley Dean Witter Discover, 4.88%-5.64%, 3/2/99-3/1/00 13,000,000 (d) 13,055,495
Norwest Financial, 5.35%, 8/1/99 1,000,000 1,002,891
------------
47,098,182
------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (8.15%)
Asset Securitization Coop. Corporation, 5.18%, 2/18/99 10,000,000 9,975,539
Delaware Funding Corporation, 5.15%, 3/3/99 3,000,000 (c) 2,987,125
Falcon Asset Securitization, 5.37%, 2/8/99 6,500,000 (c) 6,493,213
Preferred Receivables Funding Corporation, 4.88%, 2/2/99 2,855,000 (c) 2,854,574
------------
22,310,451
------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
29
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER AMOUNT VALUE (a)
===================================================================================================================
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED):
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOOD AND BEVERAGE (0.92%)
Sara Lee Corporation, 4.77%-5.35%, 2/1/99-9/9/99 $ 2,500,000 $ 2,507,750
------------
MANUFACTURING (0.60%)
Caterpillar Financial Services Inc., 4.85%, 2/1/99 1,655,000 (c) 1,655,000
------------
PRINTING & PUBLISHING (1.82%)
McGraw-Hill Companies, Inc., 5.50%, 2/17/99 5,000,000 4,988,889
------------
UTILITIES - ELECTRIC (4.71%)
Baltimore Gas and Electric Company, 5.20%, 3/15/99 4,000,000 (d) 4,000,174
Carolina Power & Light, 5.20%, 2/26/99 7,405,000 7,378,260
Duke Energy Company, 4.90%, 4/1/99 1,500,000 1,506,058
------------
12,884,492
- -------------------------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $266,731,559) $266,731,559
- -------------------------------------------------------------------------------------------------------------------
GOVERNMENT & AGENCIES SECURITIES (5.85%):
- -------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 4.76%-4.90%, 2/26/99-1/14/00 16,000,000 (d) 15,999,621
- -------------------------------------------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $15,999,621) $ 15,999,621
- -------------------------------------------------------------------------------------------------------------------
Total Investment in Securities (cost: $282,731,180) (b) $282,731,180
===================================================================================================================
</TABLE>
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, 1999.
30
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUE (c) AMOUNT VALUE (a)
========================================================================================================================
(Percentages of each investment category relate to total net assets.)
<S> <C> <C>
ALASKA (1.02%):
North Slope Borough, 3.12%, 6/30/99, MBIA Insured $ 650,000 $ 641,819
-----------
CALIFORNIA (3.98%)
Los Angeles Regional Airports Improvement Corp. Lease Revenue
3.25%, 12/1/24, LOC Wachovia Bank of Georgia 1,100,000 (b) 1,100,000
3.25%, 12/1/25, LOC Societe Generale 1,000,000 (b) 1,000,000
Pollution Control Finance Authority Series 1986A, 3.20%, 2/28/08,
Guaranty: Southern California Edison 400,000 (b) 400,000
-----------
2,500,000
-----------
COLORADO (1.59%)
Health Facilities Authority Revenue (Visiting Nurses), 3.25%, 7/1/22,
LOC Norwest Bank 1,000,000 (b) 1,000,000
-----------
DELAWARE (1.91%)
Delaware Valley Regional Finance Authority, 2.70%, 12/1/20, LOC Credit Suisse 1,200,000 (b) 1,200,000
-----------
FLORIDA (4.91%)
Hillsborough County Florida Utility, 3.12%, 8/1/99, MBIA Insured 1,000,000 984,630
Palm Beach County MFHR (Mahogany), 2.65%, 11/1/07, LOC Credit Suisse 1,100,000 (b) 1,100,000
West Orange Memorial Hospital, 2.95%, 3/11/99, LOC Rabobank Nederland 1,000,000 1,000,000
-----------
3,084,630
-----------
GEORGIA (3.98%)
Burke County Development Authority PCR (Oglethorpe Power Corporation),
2.65%, 1/1/16, FGIC Insured 900,000 (b) 900,000
Hapeville Development Authority, 3.20%, 11/1/15, LOC Deutsche Bank 1,600,000 (b) 1,600,000
-----------
2,500,000
-----------
ILLINOIS (9.97%)
Education Facility Authority (Cultural Pool Program), 2.70%, 12/1/25,
LOC First National Bank of Chicago 1,515,000 (b) 1,515,000
Health Facilities Authority Revenue, 3.20%, 11/1/20, LOC Rabobank Nederland 1,035,000 (b) 1,035,000
Joliet Regional Port District IDR Bonds, 3.25%, 7/15/03,
Guaranty: Dow Chemical 2,700,000 (b) 2,700,000
Sangamon County School District #7.6, 3.17%, 6/1/99, MBIA Insured 1,000,000 1,014,313
-----------
6,264,313
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
31
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
==========================================================================================================================
<S> <C> <C>
INDIANA (4.89%)
Health Facilities Financing Authority, 2.70%, 1/1/22, LOC First Chicago $ 1,000,000 (b) $ 1,000,000
Health Facilities Financing Authority (Capital Access Designated Pool Program),
2.75%, 12/1/02-1/1/12, LOC Comerica Bank 2,075,000 (b) 2,075,000
-----------
3,075,000
-----------
IOWA (2.70%)
Financial Authority Revenue (Burlington Medical Center), 2.80%, 6/1/27,
FSA Insured 1,700,000 (b) 1,700,000
-----------
LOUISIANA (2.07%)
Parish of East Baton Rouge, 3.20%, 11/1/19, Guaranty: Exxon Corporation 1,300,000 (b) 1,300,000
-----------
MARYLAND (9.89%)
Anne Arundel County Port Facilities Revenue, 3.80%, 2/9/99,
Guaranty: Baltimore Gas & Electric 1,200,000 1,200,000
Montgomery County Housing Opportunity, 2.75%, 11/1/07, LOC GECC 5,000,000 (b) 5,000,000
-----------
6,200,000
-----------
MICHIGAN (3.98%)
Grand Rapids Water Supply, 2.60%, 1/1/20, FGIC Insured 2,500,000 (b) 2,500,000
-----------
MINNESOTA (6.87%)
Beltrami County Environmental, 3.20%, 12/1/21,
LOC United Bank of Switzerland 200,000 (b) 200,000
City of Duluth Tax Increment Revenue, 2.65%, 9/1/10, LOC Wachovia Bank 700,000 (b) 700,000
City of Duluth Economic Authority, 3.30%, 6/1/19, LOC Credit Local de France 1,500,000 (b) 1,500,000
City of Mendota Heights MFHR, 2.70%, 11/1/16, LOC Norwest Bank 500,000 (b) 500,000
City of Minneapolis Unlimited Tax G.O., 3.25%, 12/1/99 595,000 595,000
Public Facilities Authority (Water Pollution Control Revenue Bond),
3.15%, 3/1/99 825,000 (b) 822,997
-----------
4,317,997
-----------
MISSISSIPPI (0.73%)
State Highway Revenue Series #39, 3.10%, 2/1/00, Prerefunded 471,944 457,640
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
32
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
======================================================================================================================
<S> <C> <C>
MISSOURI (3.98%)
State Environmental Improvement and Energy Resource Authority PCR, 3.75%,
3/10/99, LOC United Bank of Switzerland $ 1,000,000 $ 1,000,000
State Health and Education Facilities Authority Revenue Series A (Christian
Health Services Project), 2.70%, 11/1/19, LOC Morgan Guaranty 1,500,000 (b) 1,500,000
------------
2,500,000
------------
NEVADA (2.07%)
Clark County Airport System Refunding Revenue Notes 2.65%,
7/1/12, MBIA Insured 1,300,000 (b) 1,300,000
------------
NEW MEXICO (1.59%)
City of Albuquerque, 2.70%, 7/1/22 LOC Canadian Imperial Bank of Commerce 1,000,000 (b) 1,000,000
------------
NEW YORK (4.85%)
New York City G.O. 3.20%, 8/1/17, LOC Morgan Guaranty 700,000 (b) 700,000
New York City Industrial Development Obligation Series 1988 (Peninsula
Hospital Center Project), 3.15%, 12/1/13, LOC Chase Manhattan Bank 1,000,000 (b) 1,000,000
Westchester County IDA Civic Facility, 3.15%, 10/1/28,
LOC Chase Manhattan Bank 1,350,000 (b) 1,350,000
------------
3,050,000
------------
NORTH CAROLINA (3.34%)
State Medical Care Commission Hospital Revenue Bonds, 3.25%,
10/1/13, LOC NationsBank 2,100,000 (b) 2,100,000
------------
OHIO (2.07%)
Warren County Ohio Health Care Facility (Otterbein Homes), 2.60%, 7/1/23,
LOC Fifth Third Bank 1,300,000 (b) 1,300,000
------------
OREGON (0.81%)
Tri-County Trans Dist, 3.05%, 8/1/99, AMBAC Insured 500,000 509,002
------------
PENNSYLVANIA (2.23%)
Allegheny County Hospital (Health Center Development), 3.00%, 2/11/99,
LOC PNC Bank 500,000 500,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
33
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
=======================================================================================================================
<S> <C> <C>
PENNSYLVANIA (CONTINUED)
Allegheny County Industrial Development Authority, (Longwood at Oakmont
Inc. Project), 3.30%, 7/1/27, LOC Dresdner Bank $ 100,000 (b) $ 100,000
Quakertown Hospital Authority, 2.90%, 7/1/05, LOC PNC Bank 800,000 (b) 800,000
-----------
1,400,000
-----------
SOUTH CAROLINA (1.59%)
York County PCR, 2.80%, 6/10/99, Guaranty: Duke Power Company 1,000,000 1,000,000
-----------
TENNESSEE (3.82%)
Nashville and Davidson County Health and Education Facility,
2.70%, 10/1/26, LOC Bank of America 800,000 (b) 800,000
2.70%, 8/1/18, LOC NationsBank 1,600,000 (b) 1,600,000
-----------
2,400,000
-----------
TEXAS (8.06%)
Harris County Housing Finance MFHR, 3.32%, 9/1/99,
LOC Bank of Nova Scotia 230,000 232,977
Northside Texas Independent School District, 3.13%-3.40%, 2/15/99-2/1/00,
Permanent School Fund Guaranteed 2,435,000 2,506,986
Nueces River Authority PCR (Reynolds Metals Co. Project), 3.25%, 12/01/99,
LOC Bank of Nova Scotia 2,325,000 2,325,000
-----------
5,064,962
-----------
UTAH (0.48%)
State Board of Regents Student Loan Revenue Bonds Series B, 2.70%, 11/1/00,
AMBAC Insured 300,000 (b) 300,000
-----------
VERMONT (1.68%)
State G.O., 3.12%, 2/1/00, Prerefunded 1,000,000 1,054,747
-----------
WASHINGTON (2.37%)
State Health Care Facilities Authority (Fred Hutchinson Cancer Center), 3.25%,
1/1/18-1/1/23, LOC Morgan Guaranty 390,000 (b) 390,000
State Housing Finance Commission, 3.25%, 1/1/21, LOC U.S. Bancorp 1,100,000 (b) 1,100,000
-----------
1,490,000
-----------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
34
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL MARKET
NAME OF ISSUER (c) AMOUNT VALUE (a)
===================================================================================================================
<S> <C> <C>
WISCONSIN (0.16%)
La Crosse IDA (Dairyland Power Cooperative), 3.20%, 2/1/15, AMBAC Insured $ 100,000 (b) $ 100,000
-----------
WYOMING (4.30%)
Gillette Campbell County, 3.00%, 2/5/99, LOC Deutsche Bank 800,000 800,000
Lincoln County PCR, 2.85%, 11/1/14, Guaranty: Exxon Corporation 200,000 (b) 200,000
Platte County PCR, 3.20%, 7/1/14, LOC Societe Generale 1,700,000 (b) 1,700,000
-----------
2,700,000
- -------------------------------------------------------------------------------------------------------------------
Total Investments in Securities (cost: $64,010,110) (d) $64,010,110
===================================================================================================================
</TABLE>
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, 1999. 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
FGIC - Financial Guaranty Insurance Corporation
FSA - Financial Security Assurance Corporation
G.O. - General Obligation
GECC - General Electric Capital Corporation
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
(d) Also represents cost for federal income tax purposes.
35
<PAGE>
GREAT HALL INVESTMENT FUNDS, INC. [GRAPHIC]
60 SOUTH SIXTH STREET GREAT HALL
MINNEAPOLIS, MN 55402 INVESTMENT FUNDS, INC.
(800) 934-6674
SEMI-ANNUAL REPORT
PRIME MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-FREE MONEY MARKET FUND
INSTITUTIONAL PRIME MONEY MARKET FUND
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
[LOGO] GREAT HALL INVESTMENT FUNDS, INC.
JANUARY 31, 1999
99-41-020 (March)
This report is signed on behalf of the registrant (or depositor or trustee) in
the City of Minneapolis and State of Minnesota on the seventeenth day of
March, 1999
Great Hall Investment Funds, Inc.
---------------------------------
Witness: /s/ Julie K. Getchell By: /s/ J. Scott Spiker
----------------------------- -----------------------------
Julie K. Getchell J. Scott Spiker
President Chief Executive Officer
