<PAGE>
March 7, 2000
[PHOTO OF RAYE KANZENBACH, CFA]
To Our Shareholders:
I am pleased to present the January 31, 2000 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, 2000, 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 have risen by about 0.75% since the beginning of the
Funds' fiscal year on August 1. The Federal Reserve increased the fed funds rate
(the rate at which banks lend each other money overnight) four times between
June 1999 and February 2000 for a total of 1.00%. This has more than reversed
its 0.75% reduction in rates of 1998, which was made in response to global
financial turmoil. The world economy is now much improved, and the U.S. economy
continues to grow very rapidly. The Fed, therefore, believes that it must reduce
the growth rate somewhat by raising interest rates in order to prevent
inflation. The financial markets believe the Fed will continue to raise
short-term interest rates in the coming months.
The rise in the fed funds rate caused interest rates on money market instruments
to increase. This resulted in higher 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 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 over $6 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, 2000
<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), including
repurchase agreements
of $0; $27,810,000; $0;
$0 and $0, respectively
(amortized cost
$4,802,489,618;
$290,678,826;
$447,283,605;
$479,389,648 and
$86,357,424,
respectively).......... $4,802,489,618 $290,678,826 $447,283,605 $479,389,648 $86,357,424
Cash in bank on demand
deposit................ 369,529 4,079,070 39,086 4,606 38,087
Accrued interest
receivable............. 19,020,827 1,621,417 2,413,712 2,067,607 593,685
Organization costs
(note 2)............... -- -- -- 4,251 --
Receivable for investment
securities sold........ -- -- 2,100,195 -- --
- ---------------------------------------------------------------------------------------------------------
Total assets............. 4,821,879,974 296,379,313 451,836,598 481,466,112 86,989,196
- ---------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for investment
securities purchased... -- -- 801,527 -- --
Accrued investment
advisory fee........... 1,680,166 100,821 180,505 82,956 18,145
Other accrued expenses... 1,254,430 140,218 81,703 34,398 51,651
- ---------------------------------------------------------------------------------------------------------
Total liabilities........ 2,934,596 241,039 1,063,735 117,354 69,796
- ---------------------------------------------------------------------------------------------------------
Net assets applicable to
outstanding capital
stock.................. $4,818,945,378 $296,138,274 $450,772,863 $481,348,758 $86,919,400
- ---------------------------------------------------------------------------------------------------------
REPRESENTED BY:
Capital stock -
authorized 100 billion
shares of $.01 par
value for each Fund,
outstanding
4,818,945,378;
296,138,274; and
450,772,863 shares,
respectively........... $ 48,189,454 $ 2,961,383 $ 4,507,729 $ -- $ --
Capital stock -
authorized 10 billion
shares of $.01 par
value for each Fund,
outstanding
481,348,758; and
86,919,400 shares,
respectively........... -- -- -- 4,813,488 869,194
Additional paid-in
capital................ 4,770,755,924 293,176,891 446,265,134 476,535,270 86,050,206
- ---------------------------------------------------------------------------------------------------------
Total - representing
net assets
applicable to
outstanding capital
stock.............. $4,818,945,378 $296,138,274 $450,772,863 $481,348,758 $86,919,400
- ---------------------------------------------------------------------------------------------------------
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, 2000
<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............... $131,117,657 $7,606,866 $8,029,004 $10,576,290 $1,451,808
- ----------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Investment advisory
fee.................. 10,312,214 612,276 1,150,135 464,827 102,313
Custodian, accounting
and
transfer agent
fees................. 123,000 27,600 31,150 16,968 17,200
Sub-accounting fees.... 2,872,000 78,900 72,500 920 940
Reports to
shareholders......... 1,078,582 20,100 23,000 -- 3,050
Amortization of
organization costs... -- -- -- 848 --
Directors' fees........ 8,800 8,800 8,800 8,800 8,800
Audit and legal fees... 42,000 11,400 8,250 3,500 10,400
Registration fees...... 455,400 33,192 38,777 37,840 64,746
Administrative......... 17,000 850 1,500 -- 2,800
Other expenses......... 26,000 13,878 4,100 500 2,250
- ----------------------------------------------------------------------------------------------------
Total expenses........... 14,934,996 806,996 1,338,212 534,203 212,499
Less expenses voluntarily
waived or absorbed by
Advisor................ -- -- -- -- (48,800)
- ----------------------------------------------------------------------------------------------------
Total net expenses....... 14,934,996 806,996 1,338,212 534,203 163,699
- ----------------------------------------------------------------------------------------------------
Investment income -
net.................... 116,182,661 6,799,870 6,690,792 10,042,087 1,288,109
- ----------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............. $116,182,661 $6,799,870 $6,690,792 $10,042,087 $1,288,109
- ----------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. GOVERNMENT TAX-FREE
PRIME MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
- ----------------------------------------------------------------------------------------------------------------------
SIX-MONTH SIX-MONTH SIX-MONTH
PERIOD ENDED YEAR PERIOD ENDED YEAR PERIOD ENDED YEAR
JANUARY 31, ENDED JANUARY 31, ENDED JANUARY 31, ENDED
2000 JULY 31, 2000 JULY 31, 2000 JULY 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Operations:
Investment income,
net.................. $ 116,182,661 $ 215,789,172 $ 6,799,870 $ 12,128,923 $ 6,690,792 $ 14,096,093
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations...... 116,182,661 215,789,172 6,799,870 12,128,923 6,690,792 14,096,093
- ----------------------------------------------------------------------------------------------------------------------
Distributions from:
Investment income --
net.................. (116,182,661) (215,789,172) (6,799,870) (12,128,923) (6,690,792) (14,096,093)
- ----------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders......... (116,182,661) (215,789,172) (6,799,870) (12,128,923) (6,690,792) (14,096,093)
- ----------------------------------------------------------------------------------------------------------------------
Capital share
transactions at net
asset
value of $1.00 per
share:
Proceeds from
sales.............. 1,109,629,075 2,663,848,899 131,503,317 325,052,784 246,247,074 568,704,391
Shares issued for
reinvestment
of distributions... 116,182,661 215,789,172 6,799,870 12,128,923 6,690,792 14,096,093
Payment for shares
redeemed........... (929,566,155) (3,201,289,989) (113,541,398) (294,734,706) (299,303,635) (631,510,518)
- ----------------------------------------------------------------------------------------------------------------------
Increase/(decrease) in
net assets from
capital share
transactions......... 296,245,581 (321,651,918) 24,761,789 42,447,001 (46,365,769) (48,710,034)
- ----------------------------------------------------------------------------------------------------------------------
Total increase/(decrease)
in net assets.......... 296,245,581 (321,651,918) 24,761,789 42,447,001 (46,365,769) (48,710,034)
- ----------------------------------------------------------------------------------------------------------------------
Net assets at beginning
of period.............. 4,522,699,797 4,844,351,715 271,376,485 228,929,484 497,138,632 545,848,666
- ----------------------------------------------------------------------------------------------------------------------
Net assets at end of
period................. $4,818,945,378 $ 4,522,699,797 $296,138,274 $ 271,376,485 $450,772,863 $ 497,138,632
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
- -------------------------------------------------------------------------------------
INSTITUTIONAL PRIME INSTITUTIONAL TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C> <C> <C>
----------------------------------------------------------
SIX-MONTH SIX-MONTH PERIOD FROM
PERIOD ENDED YEAR PERIOD ENDED SEPT. 23,
JANUARY 31, ENDED JANUARY 31, 1998*
2000 JULY 31, 2000 TO JULY 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
- -------------------------------------------------------------------------------------
Operations:
Investment income,
net.................. $ 10,042,087 $ 13,852,067 $ 1,288,109 $ 1,117,181
- -------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations...... 10,042,087 13,852,067 1,288,109 1,117,181
- -------------------------------------------------------------------------------------
Distributions from:
Investment income --
net.................. (10,042,087) (13,852,067) (1,288,109) (1,117,181)
- -------------------------------------------------------------------------------------
Total distributions to
shareholders......... (10,042,087) (13,852,067) (1,288,109) (1,117,181)
- -------------------------------------------------------------------------------------
Capital share
transactions at net
asset
value of $1.00 per
share:
Proceeds from
sales.............. 528,602,721 784,765,959 120,169,795 159,109,858
Shares issued for
reinvestment
of distributions... 10,042,087 13,852,067 1,288,109 1,117,181
Payment for shares
redeemed........... (367,479,147) (702,220,139) (87,687,185) (107,078,358)
- -------------------------------------------------------------------------------------
Increase in net assets
from
capital share
transactions......... 171,165,661 96,397,887 33,770,719 53,148,681
- -------------------------------------------------------------------------------------
Total increase in net
assets................. 171,165,661 96,397,887 33,770,719 53,148,681
- -------------------------------------------------------------------------------------
Net assets at beginning
of period.............. 310,183,097 213,785,210 53,148,681 --
- -------------------------------------------------------------------------------------
Net assets at end of
period................. $481,348,758 $ 310,183,097 $86,919,400 $ 53,148,681
- -------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
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 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.
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, 1999
to January 31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES PROCEEDS
--------------------------------------------------------------------------------------------
<S> <C> <C>
Prime Fund........................................ $29,598,410,416 $29,304,893,509
U.S. Government Fund.............................. 3,218,369,772 3,197,646,497
Tax-Free Fund..................................... 444,110,305 492,269,643
Institutional Prime Fund.......................... 3,198,099,970 3,027,322,025
Institutional Tax-Free............................ 162,836,229 129,351,099
</TABLE>
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
4. FEES AND EXPENSES
The Company has entered into an investment advisory and management agreement
with Insight Investment Management (IIM), a wholly-owned subsidiary of Dain
Rauscher Corporation, 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 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 its 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 $45,222 for the period ended January 31, 2000
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>
<CAPTION>
PRIME MONEY MARKET FUND
- -------------------------------------------------------------------------------------------------------
Six-month
period ended
January 31, 2000 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
<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 0.05
Distributions from
investment operations (0.03) (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 2.5% 4.6% 5.0% 4.9% 5.0%
Net assets, end of period
(millions) $4,819 $4,523 $4,844 $3,130 $2,405
Ratio of expenses to
average net assets 0.64%* 0.61% 0.63% 0.64% 0.70%
Ratio of net investment
income to average net
assets 4.98%* 4.62% 5.04% 4.90% 4.93%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
- -------------------------------------------------------------------------------------------------------
Six-month
period ended
January 31, 2000 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
<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 from
investment operations (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% 4.5% 5.0% 4.8% 4.9%
Net assets, end of period
(millions) $ 296 $ 271 $ 229 $ 182 $ 147
Ratio of expenses to
average net assets 0.57%* 0.59% 0.59% 0.60% 0.65%
Ratio of net investment
income to average net
assets 4.87%* 4.50% 4.98% 4.85% 4.87%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
- -------------------------------------------------------------------------------------------------------
Six-month
period ended
January 31, 2000 Year ended Year ended Year ended Year ended
(unaudited) July 31, 1999 July 31, 1998 July 31, 1997 July 31, 1996
<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 0.03
Distributions from
investment operations (0.02) (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 1.5% 2.7% 3.1% 3.0% 3.0%
Net assets, end of period
(millions) $ 451 $ 497 $ 546 $ 423 $ 359
Ratio of expenses to
average net assets 0.58%* 0.59% 0.58% 0.58% 0.59%
Ratio of net investment
income to average net
assets 2.91%* 2.65% 3.05% 3.02% 3.03%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
* Adjusted to an annual basis.
8
<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, 2000 Year ended to
(unaudited) July 31, 1999 July 31, 1998
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------
Income from investment operations 0.03 0.05 0.05
Distributions from investment
operations (0.03) (0.05) (0.05)
- --------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------
Total return 2.7% 4.9% 5.2%
Net assets, end of period
(millions) $ 481 $ 310 $ 214
Ratio of expenses to average net
assets** 0.29% 0.34% 0.39%
Ratio of net investment income to
average net assets** 5.40% 4.85% 5.27%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
- -------------------------------------------------------------------------------
Six-month Period from
period ended September 23, 1998*
January 31, 2000 to
(unaudited) July 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00
- -------------------------------------------------------------------------------
Income from investment operations 0.02 0.03
Distribution from investment operations (0.02) (0.03)
- -------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00
- -------------------------------------------------------------------------------
Total return 1.6% 2.5%
Net assets, end of period (millions) $ 86 $ 53
Ratio of expenses to average net
assets*** 0.40% 0.30%
Ratio of net investment income to
average net assets*** 3.15% 2.79%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</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 net assets would have been 0.42%/5.24% for the
period ended July 31, 1998.
*** Adjusted to an annual basis. Various fund fees and expenses were
voluntarily waived or absorbed by IIM for the Institutional
Tax-Free Market Fund during the periods ended July 31, 1999 and
January 31, 2000. Had the Fund paid all expenses the ratio of
expenses and net investment income to average net assets would
have been 0.55%/2.54% for the period ended July 31, 1999, and
0.52%/3.03% for the period ended January 31, 2000.
9
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (99.14%):
- ---------------------------------------------------------------------------------------------------
AGRICULTURAL PRODUCTS (1.41%)
Archer Daniels Midland Company 5.95% 2/2/00 $ 34,460,000 $ 34,454,303
Archer Daniels Midland Company 5.72% 3/21/00 33,700,000 33,437,627
--------------
67,891,930
--------------
BANKS - DOMESTIC (10.79%)
Bank of America 5.75% 2/25/00 30,000,000 30,000,000
Bank of America 5.91% 4/11/00 20,000,000 20,000,000
Bank One N.A. 5.98% 2/4/00 25,000,000 25,000,021
Bank One N.A. 5.89% 3/15/00 30,000,000 29,999,963
Bank One N.A. 5.85% 2/16/00 32,000,000 32,000,000
Comerica Bank 5.73% 7/13/00 20,000,000 (d) 19,996,481
Fifth Third Bank 5.83% 3/28/00 10,000,000 10,000,000
First Tennessee Bank 5.77% 3/7/00 33,400,000 33,400,000
Key Bank N.A., Cleveland 6.08% 2/18/00 20,000,000 (d) 20,000,450
LaSalle Bank, Chicago 4.97% 2/1/00 25,000,000 25,000,000
LaSalle Bank, Chicago 5.89% 2/10/00 22,600,000 22,600,000
PNC Bank N.A. 5.70% 6/7/00 25,000,000 24,994,882
Regionsbank N.A., Birmingham 6.07% 2/9/00 40,000,000 40,000,000
Regionsbank N.A., Birmingham 5.90% 4/28/00 35,000,000 35,000,000
Regionsbank N.A., Birmingham 5.73% 7/14/00 25,000,000 24,999,902
Southtrust Bank N.A., Birmingham 5.68% 4/12/00 25,000,000 (d) 24,997,607
Southtrust Bank N.A., Birmingham 5.91% 4/20/00 25,000,000 25,000,000
Southtrust Bank N.A., Birmingham 5.64% 4/28/00 10,000,000 9,998,055
Southtrust Bank N.A., Birmingham 6.00% 5/25/00 32,000,000 32,000,000
U.S. Bank N.A., Minneapolis 5.97% 5/25/00 35,000,000 35,000,000
--------------
519,987,361
--------------
BANKS - OTHER (20.46%)
Abbey National North America Corporation 5.97% 3/22/00 35,000,000 34,709,792
Abbey National North America Corporation 5.82% 4/25/00 40,000,000 39,456,613
Abbey National Treasury Services 5.13% 5/4/00 15,000,000 14,997,424
Bank of Nova Scotia 5.89% 2/17/00 30,000,000 30,000,000
Bank of Nova Scotia 5.74% 3/3/00 34,950,000 34,777,250
Bank of Nova Scotia 5.83% 4/19/00 30,000,000 29,621,050
Banque National de Paris 5.92% 2/16/00 30,000,000 30,000,000
Banque National de Paris 5.98% 2/29/00 32,000,000 32,000,000
Canadian Imperial Bank of Commerce 5.12% 2/23/00 17,000,000 16,999,287
Deutsche Bank 5.88% 3/31/00 35,000,000 35,000,283
Deutsche Bank 5.10% 4/19/00 9,000,000 8,999,074
Deutsche Bank 6.23% 12/6/00 23,500,000 23,486,730
Deutsche Bank 5.12% 1/12/01 7,000,000 6,996,846
Dresdner Bank 5.90% 4/18/00 40,000,000 40,000,843
Dresdner Bank 5.78% 7/24/00 30,000,000 (d) 29,994,441
Formosa Plastics USA, LOC ABN AMRO 5.97% 2/10/00 20,000,000 19,970,150
JMG Funding Inc., LOC Societe Generale 5.90% 2/15/00 28,499,000 28,433,611
Lloyds TSB Bank 5.89% 2/14/00 30,000,000 30,000,000
Lloyds TSB Bank 5.74% 3/6/00 40,000,000 39,783,156
Lloyds TSB Bank 5.88% 3/31/00 30,000,000 30,000,000
National Westminster Bank 5.08% 4/10/00 25,000,000 24,997,723
Pemex Capital Capital Corporation, LOC
Barclays Bank 5.75% 3/7/00 25,000,000 24,860,243
Pemex Capital Capital Corporation, LOC
Barclays Bank 5.78% 3/9/00 28,650,000 28,479,803
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
10
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- ---------------------------------------------------------------------------------------------------
BANKS - OTHER (CONTINUED)
Petroleo Brasilieiro, LOC Barclays Bank 6.05% 3/13/00 $ 25,600,000 $ 25,423,609
Presbyterian Healthcare Services 5.73% 3/8/00 40,000,000 39,770,800
Rabobank Nederland, LOC Toronto Dominion
Bank 5.11% 2/16/00 4,000,000 3,999,980
Rabobank Nederland 5.77% 3/10/00 24,000,000 24,000,000
Rabobank Nederland 6.55% 1/31/01 19,600,000 19,590,684
Royal Bank of Canada 5.04% 2/8/00 11,000,000 10,999,908
SCI Systems, LOC ABN AMRO 6.00% 2/24/00 25,000,000 24,904,167
Sinochem America, LOC ABN AMRO 5.95% 3/3/00 30,000,000 29,846,292
Societe Generale Bank 5.90% 4/10/00 50,000,000 50,000,945
Toronto Dominion Holdings, Inc. 5.79% 4/6/00 32,600,000 32,259,194
Toronto Dominion Holdings, Inc. 5.82% 4/19/00 27,000,000 26,659,530
United Bank of Switzerland A.G. 5.29% 3/1/00 20,000,000 19,999,770
United Bank of Switzerland A.G. 5.20% 5/8/00 10,000,000 9,998,721
United Bank of Switzerland A.G. 5.70% 7/10/00 35,000,000 34,992,653
--------------
986,010,572
--------------
BUSINESS MACHINES (1.04%)
Xerox Credit Corporation 5.82% 2/1/00 50,000,000 50,000,000
--------------
CHEMICALS (0.99%)
Henkel Corporation 5.80% 2/3/00 20,000,000 19,993,556
Henkel Corporation 5.86% 3/1/00 13,000,000 (c) 12,938,738
Henkel Corporation 5.70% 3/6/00 15,000,000 (c) 14,919,250
--------------
47,851,544
--------------
CONGLOMERATES (1.23%)
Diageo Capital PLC 5.80% 4/17/00 36,000,000 (c) 35,559,200
Diageo Capital PLC 6.24% 12/4/00 23,500,000 23,488,009
--------------
59,047,209
--------------
DRUGS AND COSMETICS (1.62%)
American Home Products 5.78% 2/3/00 25,000,000 (c) 24,991,972
American Home Products 5.98% 2/4/00 20,000,000 (c) 19,990,033
American Home Products 5.72% 2/8/00 30,000,000 (c) 29,966,633
American Home Products 5.10% 2/15/00 3,000,000 3,002,794
--------------
77,951,432
--------------
ELECTRONICS (1.43%)
Emerson Electric Company 5.78% 4/13/00 35,000,000 (c) 34,595,400
United Technologies 5.88% 2/18/00 11,500,000 (c) 11,468,068
United Technologies 5.92% 2/22/00 23,500,000 (c) 23,418,847
--------------
69,482,315
--------------
ENTERTAINMENT (0.53%)
Walt Disney Company 5.83% 5/5/00 25,450,000 25,438,856
--------------
FINANCIAL - AUTO (6.97%)
DaimlerChrysler North American Holdings 5.89% 2/10/00 34,340,000 34,289,434
DaimlerChrysler North American Holdings 5.97% 2/16/00 30,000,000 29,925,375
DaimlerChrysler North American Holdings 5.85% 2/24/00 18,510,000 18,440,819
Ford Motor Credit Corporation 5.52% 2/1/00 25,000,000 25,000,000
Ford Motor Credit Corporation, Puerto
Rico 5.72% 3/21/00 30,000,000 29,766,433
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
11
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- ---------------------------------------------------------------------------------------------------
FINANCIAL - AUTO (CONTINUED)
Ford Motor Credit Corporation, Puerto
Rico 5.72% 3/27/00 $ 30,000,000 $ 29,737,833
General Motors Acceptance Corporation 5.84% 2/2/00 40,000,000 39,993,511
General Motors Acceptance Corporation 5.92% 2/8/00 25,000,000 24,971,222
General Motors Acceptance Corporation 5.83% 4/24/00 22,645,000 22,340,620
Paccar Financial Corporation 5.80% 2/17/00 20,000,000 19,948,444
Paccar Financial Corporation 5.80% 4/25/00 6,900,000 6,806,620
Toyota Motor Credit Corporation 5.95% 2/25/00 35,000,000 34,861,167
Toyota Motor Credit Corporation 5.77% 7/6/00 20,000,000 20,000,000
--------------
336,081,478
--------------
FINANCIAL - AVIATION (1.45%)
International Lease Finance Corporation 5.88% 2/14/00 40,000,000 39,915,067
International Lease Finance Corporation 5.80% 2/23/00 30,000,000 29,893,667
--------------
69,808,734
--------------
FINANCIAL - DIVERSIFIED BUSINESS (13.71%)
American General Finance Corporation 5.85% 2/7/00 25,000,000 24,975,625
American General Finance Corporation 5.15% 2/15/00 10,000,000 10,010,133
American General Finance Corporation 5.91% 2/22/00 28,940,000 28,840,229
American General Finance Corporation 5.78% 4/5/00 32,000,000 31,671,182
Associates Corporation of North America 5.79% 2/1/00 33,620,000 33,620,000
CIT Group Holdings 5.86% 2/1/00 100,000,000 100,000,000
General Electric Capital Corporation 5.72% 3/13/00 30,000,000 29,804,567
General Electric Capital Corporation 5.78% 4/4/00 21,860,000 21,638,886
Goldman Sachs Group 6.20% 2/24/00 15,000,000 14,999,901
Goldman Sachs Group 6.11% 3/1/00 30,000,000 30,000,000
Goldman Sachs Group 6.00% 8/7/00 25,000,000 25,000,000
Household Finance Company 5.82% 2/11/00 13,870,000 13,847,577
Household Finance Company 5.72% 3/10/00 28,830,000 28,655,931
Household Finance Company 5.80% 4/21/00 23,850,000 23,542,600
Merrill Lynch & Co. 5.92% 2/3/00 16,940,000 16,934,429
Merrill Lynch & Co. 6.52% 3/6/00 12,000,000 (d) 12,004,846
Merrill Lynch & Co. 6.05% 10/3/00 16,000,000 16,000,000
Morgan (J.P.) and Company 5.90% 2/8/00 30,000,000 29,965,583
Morgan (J.P.) and Company 5.94% 2/28/00 25,000,000 24,888,625
Morgan Stanley Dean Witter Discover 6.19% 3/2/00 25,000,000 (d) 25,002,417
Morgan Stanley Dean Witter Discover 5.71% 3/20/00 30,000,000 29,771,600
Morgan Stanley Dean Witter Discover 5.89% 3/20/00 10,000,000 9,999,486
Wells Fargo & Company 5.95% 2/7/00 16,640,000 16,623,499
Wells Fargo & Company 5.94% 2/9/00 61,280,000 61,200,499
Wells Fargo & Company 5.87% 3/1/00 1,650,000 1,642,198
--------------
660,639,813
--------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (20.96%)
Asset Securitization Coop. Corporation 5.80% 4/4/00 40,000,000 (c) 39,594,000
Barton Capital Corporation 6.00% 2/11/00 26,000,000 (c) 25,956,667
Barton Capital Corporation 6.00% 2/18/00 28,329,000 (c) 28,248,833
Barton Capital Corporation 6.15% 3/2/00 30,000,000 (c) 29,846,250
Delaware Funding Corporation 5.88% 2/28/00 25,381,000 (c) 25,269,072
Delaware Funding Corporation 6.05% 3/15/00 18,100,000 (c) 17,969,202
Delaware Funding Corporation 5.75% 3/23/00 18,000,000 (c) 17,853,375
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
12
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- ---------------------------------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED BUSINESS,
ASSET-BACKED (CONTINUED)
Delaware Funding Corporation 5.75% 3/24/00 $ 38,000,000 (c) $ 37,684,389
Edison Asset Securitization 5.95% 2/15/00 30,000,000 (c) 29,930,583
Edison Asset Securitization 5.98% 2/17/00 9,015,000 (c) 8,991,040
Edison Asset Securitization 5.95% 2/18/00 15,000,000 (c) 14,957,854
Edison Asset Securitization 5.80% 3/20/00 25,000,000 (c) 24,806,667
Edison Asset Securitization 5.75% 3/22/00 20,000,000 (c) 19,840,278
Falcon Asset Securitization 5.95% 2/3/00 16,000,000 (c) 15,994,711
Falcon Asset Securitization 5.93% 2/7/00 25,000,000 (c) 24,975,292
Falcon Asset Securitization 5.75% 3/6/00 20,000,000 (c) 19,891,389
Falcon Asset Securitization 6.05% 3/16/00 27,900,000 (c) 27,693,695
Fleet Funding Corporation 5.63% 2/15/00 20,000,000 (c) 19,956,211
Park Avenue Receivables Corporation 6.02% 2/7/00 15,000,000 (c) 14,984,950
Park Avenue Receivables Corporation 5.90% 2/17/00 30,000,000 (c) 29,921,333
Park Avenue Receivables Corporation 6.00% 2/24/00 19,003,000 (c) 18,930,154
Park Avenue Receivables Corporation 5.75% 3/6/00 34,000,000 (c) 33,815,361
Preferred Receivables Funding
Corporation 5.95% 2/1/00 26,000,000 (c) 26,000,000
Preferred Receivables Funding
Corporation 5.98% 2/14/00 20,000,000 (c) 19,956,811
Preferred Receivables Funding
Corporation 5.95% 2/25/00 30,000,000 (c) 29,881,000
Preferred Receivables Funding
Corporation 5.92% 2/28/00 15,000,000 (c) 14,933,400
Receivables Capital Corporation 5.85% 4/14/00 40,000,000 (c) 39,525,500
Redwood Receivables Corporation 5.71% 2/29/00 40,614,000 (c) 40,433,629
Thunder Bay Funding Corporation 6.04% 2/4/00 8,625,000 (c) 8,620,659
Thunder Bay Funding Corporation 5.70% 2/22/00 8,760,000 (c) 8,730,873
Thunder Bay Funding Corporation 5.66% 2/23/00 30,000,000 (c) 29,896,233
Thunder Bay Funding Corporation 5.70% 2/24/00 8,980,000 (c) 8,947,298
Thunder Bay Funding Corporation 5.95% 3/3/00 40,258,000 (c) 40,051,734
Thunder Bay Funding Corporation 5.76% 3/21/00 28,009,000 (c) 27,789,409
Thunder Bay Funding Corporation 5.82% 3/23/00 40,000,000 (c) 39,670,200
Variable Funding Corporation 5.65% 2/25/00 25,000,000 (c) 24,905,833
Variable Funding Corporation 5.75% 3/9/00 20,000,000 (c) 19,881,806
Variable Funding Corporation 5.75% 3/16/00 16,500,000 (c) 16,384,042
Windmill Funding Corporation 6.15% 2/17/00 17,680,000 (c) 17,631,675
Windmill Funding Corporation 5.78% 3/2/00 25,000,000 (c) 24,879,583
Windmill Funding Corporation 5.94% 3/9/00 25,000,000 (c) 24,847,375
Windmill Funding Corporation 5.76% 3/10/00 20,000,000 (c) 19,878,400
--------------
1,009,956,766
--------------
FOOD AND BEVERAGE (2.40%)
Anheuser Busch Companies Inc. 5.71% 7/6/00 36,200,000 36,189,272
H.J. Heinz Company 5.64% 2/29/00 35,000,000 34,846,467
Sysco Corporation 5.81% 2/10/00 12,600,000 (c) 12,581,699
Sysco Corporation 5.80% 2/22/00 32,000,000 (c) 31,891,733
--------------
115,509,171
--------------
FOREST PRODUCTS (0.57%)
Kimberly-Clark Worldwide 5.79% 4/20/00 27,800,000 (c) 27,446,778
--------------
GOVERNMENT - DOMESTIC (0.96%)
Private Export Funding Corporation 5.70% 3/9/00 30,000,000 29,824,250
Private Export Funding Corporation 5.75% 3/20/00 16,400,000 16,274,267
--------------
46,098,517
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
13
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- ---------------------------------------------------------------------------------------------------
MANUFACTURING (3.07%)
AlliedSignal Inc. 5.69% 2/7/00 $ 20,000,000 (c) $ 19,981,033
AlliedSignal Inc. 5.82% 2/11/00 39,975,000 (c) 39,910,929
Caterpillar Financial Services Inc. 5.72% 2/11/00 30,000,000 29,952,333
Caterpillar Financial Services Inc. 5.95% 3/8/00 30,000,000 29,821,500
Caterpillar Financial Services Inc. 5.80% 3/15/00 13,400,000 13,401,384
Caterpillar Financial Services Inc. 6.15% 10/12/00 15,000,000 15,000,000
--------------
148,067,179
--------------
OIL SERVICES (1.78%)
American Petrofina Holding Company 5.97% 2/3/00 21,500,000 (c) 21,492,869
Totalfina S.A. 5.98% 2/2/00 25,000,000 24,995,847
Totalfina S.A. 5.85% 4/20/00 40,000,000 39,486,500
--------------
85,975,216
--------------
RETAIL STORES (0.76%)
Wal-Mart Stores, Inc. 5.63% 2/28/00 36,600,000 (c) 36,445,457
--------------
TELECOMMUNICATIONS (3.00%)
AT&T Company 5.75% 3/8/00 30,000,000 29,827,500
AT&T Company 5.80% 4/6/00 30,000,000 29,685,833
AT&T Company 5.99% 7/13/00 30,000,000 (d) 29,994,656
Motorola Credit Corporation 5.93% 2/4/00 25,960,000 25,677,305
Motorola Credit Corporation 5.82% 4/27/00 30,000,000 29,582,900
--------------
144,768,194
--------------
UTILITIES - ELECTRIC (3.49%)
Baltimore Gas & Electric Company 6.11% 9/1/00 34,000,000 (d) 34,000,000
Northern States Power Company 5.79% 4/20/00 37,679,000 37,200,257
Southern California Edison 6.10% 2/18/00 25,000,000 24,927,986
Southern California Edison 5.80% 4/17/00 16,600,000 16,396,742
Southern California Edison 5.82% 4/26/00 23,400,000 23,078,445
Union Electric Company 6.10% 2/23/00 32,550,000 32,428,661
--------------
168,032,091
--------------
UTILITIES - FINANCIAL (0.52%)
National Rural Utilities Finance
Corporation 6.14% 6/26/00 25,000,000 24,999,005
- ---------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $4,777,489,618) $4,777,489,618
- ---------------------------------------------------------------------------------------------------
TAXABLE MUNICIPALS (0.52%):
- ---------------------------------------------------------------------------------------------------
New York City G.O. Series B-11, Insured
FGIC 5.80% 2/1/00 25,000,000 25,000,000
- ---------------------------------------------------------------------------------------------------
Total Taxable Municipals (cost:
$25,000,000) $ 25,000,000
- ---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$4,802,489,618) (b) $4,802,489,618
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
14
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
GOVERNMENT & AGENCIES SECURITIES (88.76%):
- ---------------------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK (14.18%)
5.60% 3/10/00 $ 15,000,000 (d) $ 14,999,238
5.82% 6/1/00 7,000,000 6,995,539
5.86% 7/3/00 20,000,000 (d) 20,000,000
-------------
41,994,777
-------------
FEDERAL HOME LOAN BANK (27.47%)
5.04% 2/8/00 5,800,000 5,799,867
5.47% 2/11/00 12,000,000 11,981,767
5.15% 2/25/00 5,000,000 4,999,634
5.72% 3/8/00 10,150,000 10,143,301
5.80% 3/20/00 3,500,000 3,472,933
5.61% 3/23/00 10,000,000 9,920,497
5.01% 3/23/00 2,100,000 2,101,675
5.66% 3/29/00 5,000,000 4,994,600
5.88% 4/28/00 5,000,000 4,987,990
5.84% 5/12/00 15,000,000 (d) 14,996,482
5.81% 6/8/00 6,175,000 6,163,274
5.92% 10/10/00 800,000 799,982
6.07% 11/17/00 1,000,000 991,538
-------------
81,353,540
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (33.05%)
5.51% 2/2/00 15,000,000 14,997,703
5.52% 2/3/00 5,000,000 4,998,467
5.53% 2/4/00 11,000,000 10,994,931
5.52% 2/25/00 7,000,000 6,974,240
5.53% 3/1/00 5,000,000 4,977,726
5.61% 3/14/00 10,000,000 9,934,550
6.05% 4/14/00 30,000,000 (d) 30,005,095
6.05% 7/14/00 15,000,000 (d) 14,996,639
-------------
97,879,351
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (14.06%)
5.75% 2/10/00 2,735,000 2,735,042
5.57% 2/14/00 10,000,000 9,979,886
5.51% 2/24/00 3,000,000 2,989,439
5.59% 3/9/00 10,000,000 9,942,547
5.55% 3/16/00 10,000,000 9,995,061
5.50% 4/28/00 1,000,000 1,000,245
5.13% 5/12/00 5,000,000 4,998,938
-------------
41,641,158
- ---------------------------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $262,868,826) $ 262,868,826
- ---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (9.57%)
- ---------------------------------------------------------------------------------------------------
Merrill Lynch, acquired 1/29/00
(collateralized by $31,875,000
Federal National Mortgage Association,
5.90%, 8/7/28)
(cost: $27,810,000) 5.75% 2/1/00 27,810,000 27,810,000
- ---------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost:
$27,810,000) $ 27,810,000
- ---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$290,678,826) (b) $ 290,678,826
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
15
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
ALABAMA (0.81%)
Chatom Independent Development Board,
Guaranty: National Rural Coop
Finance Corporation 3.85% 2/4/00 $ 2,700,000 $ 2,700,000
Morgan County Decatur General Hospital,
AMBAC Insured 3.55% 3/1/00 965,000 966,379
-------------
3,666,379
-------------
ALASKA (0.61%)
Anchorage G.O., MBIA Insured 3.60% 8/1/00 2,000,000 2,009,654
Fairbanks North Star Borough, FSA
Insured 3.25% 4/1/00 745,000 748,572
-------------
2,758,226
-------------
ARIZONA (3.39%)
City of Phoenix IDA (Del Mar Terrace),
Guaranty: FHLMC 3.30% 10/1/29 3,000,000 (e) 3,000,000
Maricopa County PCR (El Paso Elect), LOC
Barclays Bank 3.25% 12/1/14 2,100,000 (e) 2,100,000
Maricopa County Pollution Control Series
1994A (El Paso Elect), LOC Barclays
Bank 3.25% 7/1/14 10,200,000 (e) 10,200,000
-------------
15,300,000
-------------
ARKANSAS (0.53%)
City of Jonesboro, FSA Insured 4.02% 11/15/00 2,395,000 2,408,290
-------------
CALIFORNIA (0.23%)
Roseville Unified High School District,
FGIC Insured 3.80% 8/1/00 1,060,000 1,040,523
-------------
COLORADO (3.93%)
Adams County MFHR (Hunters Cove
Project), LOC GECC 3.20% 1/15/14 7,500,000 (e) 7,500,000
Aurora Centretech Metro District, LOC
Banque National de Paris 4.00% 12/1/00 1,000,000 1,000,000
Dove Valley Metro District, LOC Banque
National de Paris 3.95% 11/1/00 820,000 820,000
Dove Valley Metro District, LOC Banque
National de Paris 3.95% 11/1/00 4,080,000 4,080,000
Health Facilities Authority Revenue
(Visiting Nurses),
LOC Norwest Bank 3.60% 7/1/22 1,030,000 (e) 1,030,000
Interstate South Metro District, LOC
Banque
National de Paris 3.95% 11/1/00 3,265,000 3,265,000
-------------
17,695,000
-------------
DELAWARE (0.79%)
New Castle County Development Authority,
LOC First Union National Bank 3.25% 8/15/20 3,562,500 (e) 3,562,500
-------------
FLORIDA (2.41%)
Jacksonville Education (Jacksonville
University Project), LOC First Union 3.25% 10/1/22 4,000,000 (e) 4,000,000
Jacksonville Health Facility Authority,
MBIA Insured 3.15% 8/15/19 5,000,000 (e) 5,000,000
Volusia County School Board, FSA Insured 3.85% 8/1/00 1,800,000 1,853,516
-------------
10,853,516
-------------
GEORGIA (2.89%)
Clayton County MFHR, (Huntington Woods),
FSA Insured 3.20% 1/1/21 2,610,000 (e) 2,610,000
Fulton County Development Authority
(Morehouse College), LOC Wachovia
Bank 3.25% 8/1/17 3,985,000 (e) 3,985,000
Fulton County Residential Home Care,
LOC Rabobank Nederland 3.60% 1/1/18 1,800,000 (e) 1,800,000
Municipal Electric Authority of Georgia,
LOC ABN-AMRO 3.20% 1/1/26 4,623,000 (e) 4,623,000
-------------
13,018,000
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
16
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (7.95%)
Chicago O'Hare International Airport,
LOC Societe Generale 3.15% 1/1/15 $ 3,100,000 (e) $ 3,100,000
City of Springfield (Realing Restore
Project), Overcollateralized in
Governments 3.55% 12/1/15 3,000,000 (e) 3,000,000
Development Finance Authority (A.E.
Staley Manu),
LOC Union Bank of Switzerland 3.15% 12/1/05 1,600,000 (e) 1,600,000
Development Finance Authority (Jewish
Elderly Council),
LOC LaSalle National Bank 3.30% 3/1/25 600,000 (e) 600,000
Education Facility Authority Revenue
Bond (Cultural Pool Program), LOC
First National Bank of Chicago 3.25% 12/1/25 20,000 (e) 20,000
Galesburg Revenue (Knox College), LOC
LaSalle National Bank 3.35% 3/1/31 6,500,000 (e) 6,500,000
Galesburg Revenue (Knox College), LOC
LaSalle
National Bank 3.30% 7/1/24 2,000,000 (e) 2,000,000
Health Facilities Authority (Alexian
Brothers Medical
Center), MBIA Insured 4.00% 5/3/00 1,150,000 1,150,000
Health Facilities Authority (Alexian
Brothers Medical
Center Series #2012), MBIA Insured 3.65% 2/7/00 1,000,000 1,000,000
Health Facilities Authority (Alexian
Brothers Medical
Center Series #2014), MBIA Insured 3.65% 2/7/00 1,000,000 1,000,000
Joliet Regional Port District,
Guaranty: Dow Chemical 3.70% 7/15/03 9,910,000 (e) 9,910,000
Lake Cook & McHenry Counties School
District, FGIC Insured 3.90% 12/1/00 1,000,000 1,021,032
Madison Macoupin Community College
(Lewis University), FGIC Insured 4.03% 11/1/00 1,410,000 1,433,965
Mclean County (Law and Justice Center)
G.O. 4.00% 11/1/00 1,000,000 1,022,503
Metropolitan Pier & Expo Authority II,
AMBAC Insured 4.13% 12/15/00 1,000,000 965,193
Will County Property Tax Lease, FGIC
Insured 4.00% 12/1/00 1,500,000 1,527,779
-------------
35,850,472
-------------
INDIANA (5.56%)
Health Facilities Finance Authority
Series 1990,
LOC NBD Bank 3.15% 11/1/20 3,000,000 (e) 3,000,000
Health Facilities Finance Authority, LOC
First Chicago 3.20% 1/1/22 1,500,000 (e) 1,500,000
Health Facilities Finance Authority
(Sisters of St. Francis),
Prerefunded 3.68% 9/1/00 1,555,000 1,584,995
Health Facilities Financing Authority
(Capital Access Designated Pool
Program), LOC Comerica Bank 3.30% 1/1/12 750,000 (e) 750,000
Health Facilities Financing Authority
(Capital Access Designated Pool
Program), LOC Comerica Bank 3.30% 4/1/13 700,000 (e) 700,000
Hospital Equipment Financing Authority,
MBIA Insured 3.30% 12/1/15 7,100,000 (e) 7,100,000
Secondary Market for Education Loans,
AMBAC Insured 3.35% 6/1/00 2,000,000 2,001,597
Princeton PCR (PSI Energy), LOC Morgan
Guaranty 3.60% 4/1/22 7,400,000 (e) 7,400,000
Tippecanoe County School Building, AMBAC
Insured 3.80% 7/15/00 1,000,000 1,005,263
-------------
25,041,855
-------------
IOWA (3.58%)
Higher Education Loan Authority Revenue
(Palmer Chiropractic), LOC Firstar
Bank N.A. 3.70% 4/1/27 3,000,000 (e) 3,000,000
Financial Authority Revenue (Burlington
Medical Center), LOC Firstar Bank
N.A. 3.70% 6/1/27 10,250,000 (e) 10,250,000
Mount Vernon Private College Project
(Cornell) Series 1985, LOC U.S. Bank 3.15% 10/1/15 2,900,000 (e) 2,900,000
-------------
16,150,000
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
17
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KENTUCKY (0.29%)
State Property and Buildings Community
Revenue,
Prerefunded and Escrowed in
Governments 4.23% 2/1/01 $ 1,300,000 $ 1,322,176
-------------
LOUISIANA (1.33%)
Public Facilities Authority, FSA Insured 4.10% 10/1/00 3,000,000 3,005,679
Orleans Parish School Board, MBIA
Insured 3.20% 2/1/00 3,000,000 3,000,000
-------------
6,005,679
-------------
MARYLAND (5.44%)
Anne Arundel County Port Facilities
Revenue,
Guaranty: Baltimore Gas & Electric 3.60% 4/5/00 3,000,000 3,000,000
Anne Arundel County Port Facilities
Revenue,
Guaranty: Baltimore Gas & Electric 3.45% 2/14/00 2,000,000 2,000,000
Anne Arundel County Port Facilities
Revenue,
Guaranty: Baltimore Gas & Electric 3.70% 2/9/00 1,200,000 1,200,000
Montgomery County Housing Opportunities
(Oakwood Apartments), LOC FHLMC 3.25% 11/1/07 18,300,000 (e) 18,300,000
-------------
24,500,000
-------------
MASSACHUSETTES (0.59%)
State Construction Loans, Escrowed in
Governments 3.15% 3/1/00 1,500,000 1,534,627
North Andover, MBIA Insured 4.00% 8/15/00 1,125,000 1,136,714
-------------
2,671,341
-------------
MICHIGAN (1.09%)
Delta County Economic Development
Authority,
LOC Bank of Nova Scotia 3.60% 12/1/23 2,400,000 (e) 2,400,000
Farmington Public School District,
Guaranty: School
Bond Loan Program 3.25% 5/1/00 815,000 816,228
Midland County Economic Development,
Guaranty: Dow Chemical 3.65% 12/1/15 1,200,000 (e) 1,200,000
Washtenaw County Building Authority,
FGIC Insured 3.85% 9/1/00 500,000 501,259
-------------
4,917,487
-------------
MINNESOTA (5.75%)
City of Cohasset (MN Power & Light
Project),
LOC ABN AMRO 3.60% 6/1/20 1,800,000 (e) 1,800,000
City of Duluth Economic Authority, LOC
Credit
Local de France 3.60% 6/1/19 600,000 (e) 600,000
Greenway ISD #316, LOC MN School
District Credit 3.83% 9/30/00 1,250,000 1,250,455
Minneapolis/St. Paul Housing and
Redevelopment,
FSA Insured 3.65% 8/15/25 5,820,000 (e) 5,820,000
Minneapolis Tax Increment, MBIA Insured 3.85% 9/1/00 1,000,000 1,017,784
St. Paul Housing and Redevelopment
(Science Museum Project), LOC U.S.
Bancorp 3.25% 5/1/27 5,500,000 (e) 5,500,000
St. Paul Authority Tax Revenue (Westgate
Office and Industrial Center), LOC
U.S. Bancorp 3.70% 2/1/15 9,400,000 (e) 9,400,000
University of Minnesota, Prerefunded 3.45% 2/15/00 512,985 512,323
-------------
25,900,562
-------------
MISSISSIPPI (5.12%)
Business Finance Corporation
(Mississippi College Project), LOC
Bank of America 3.30% 2/1/09 6,400,000 (e) 6,400,000
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Cooperative Finance
Corp. 3.60% 6/9/00 3,600,000 3,600,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
18
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSISSIPPI (CONTINUED)
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Cooperative Finance
Corp. 3.50% 3/8/00 $ 2,000,000 $ 2,000,000
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Cooperative Finance
Corp. 3.65% 6/8/00 3,000,000 3,000,000
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Cooperative Finance
Corp. 3.60% 4/7/00 3,500,000 3,500,000
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Cooperative Finance
Corp. 3.60% 4/5/00 1,000,000 1,000,000
Hospital Equipment Finance Authority
(Baptist Medical Center), LOC
Rabobank Nederland 3.30% 7/1/12 1,200,000 (e) 1,200,000
State Highway Revenue Series #39,
Prerefunded 3.10% 2/1/00 2,359,720 2,359,720
-------------
23,059,720
-------------
MISSOURI (2.33%)
Independence IDA (Groves & Graceland),
LOC Credit
Local de France 3.60% 11/1/27 4,100,000 (e) 4,100,000
Kansas City Municipal Assistance
(Leasehold H. Roe Bartle),
Prerefunded and Escrowed in
Governements 3.25% 4/15/00 1,300,000 1,335,743
State Health and Education Facilities
Authority Revenue, (Christian Health
Project), LOC Morgan Guaranty 3.25% 11/1/19 930,000 (e) 930,000
State Health and Education Facilities
Authority Revenue,
(St. Francis Medical Center), LOC
Credit Local de France 3.60% 6/1/26 1,500,000 (e) 1,500,000
State Health and Education Facilities
Authority, Camdenton School District 3.75% 9/19/00 2,625,000 2,632,945
-------------
10,498,688
-------------
MONTANA (2.02%)
State Health Facilities Authority
Revenue Bonds Series A (Health Care
Pooled Loan Program), FGIC Insured 3.30% 12/1/15 9,105,000 (e) 9,105,000
-------------
NEW JERSEY (0.49%)
Economic Development Authority (Volvo
America),
LOC Credit Suisse 3.52% 12/1/04 1,200,000 (e) 1,200,000
Education Facilities Authority Revenue,
AMBAC Insured 3.83% 9/1/00 1,000,000 1,006,600
-------------
2,206,600
-------------
NEW YORK (2.31%)
Nassau County G.O., FGIC Insured 4.30% 9/1/00 700,000 703,243
New York City G.O., MBIA Insured 3.60% 8/15/04 1,300,000 (e) 1,300,000
New York City G.O., AMBAC Insured 3.60% 8/15/18 1,500,000 (e) 1,500,000
New York City G.O., FGIC Insured 3.60% 6/15/23 2,700,000 (e) 2,700,000
New York City G.O., FGIC Insured 3.50% 6/15/24 4,200,000 (e) 4,200,000
-------------
10,403,243
-------------
NORTH CAROLINA (6.41%)
Haywood Regional Medical Center, LOC
First Union Bank 3.20% 5/1/17 4,885,000 (e) 4,885,000
Educational Facility Finance Agency
(Gardner Webb
University), LOC First Union Bank 3.20% 7/1/17 5,870,000 (e) 5,870,000
State Medical Center Commission Revenues
(Carol
Woods Project), LOC Bank of America 3.65% 4/1/21 5,200,000 (e) 5,200,000
State Medical Center Commission Revenues
(Carolina Meadows Project), LOC Bank
of America 3.60% 6/1/28 4,060,000 (e) 4,060,000
State Medical Care Commission Revenues
(Pooled Finance Project), LOC First
Union Bank 3.65% 10/1/13 1,500,000 (e) 1,500,000
State Medical Care Commission Hospital
(Angel Medical
Care Center), LOC First Union 3.20% 10/1/16 3,500,000 (e) 3,500,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
19
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NORTH CAROLINA (CONTINUED)
University of North Carolina Revenue,
LOC Wachovia Bank 3.60% 11/1/16 $ 3,900,000 (e) $ 3,900,000
-------------
28,915,000
-------------
OHIO (5.06%)
Air Quality Development Authority, FGIC
Insured 3.45% 2/28/00 2,000,000 2,000,000
State Building Authority, Prerefunded
and Escrowed
in Governments 4.00% 9/1/00 2,270,000 2,352,844
State Water Development Authority, FGIC
Insured 3.85% 4/7/00 1,350,000 1,350,000
State Water Development Authority, FGIC
Insured 3.45% 4/6/00 5,000,000 5,000,000
Warren County Ohio Health Care Facility
(Otterbein
Homes), LOC Fifth Third Bank 3.20% 7/1/23 12,100,000 (e) 12,100,000
-------------
22,802,844
-------------
OKLAHOMA (0.36%)
City of Moore G.O., MBIA Insured 3.40% 4/1/00 600,000 600,572
Garfield County Industrial Authority
PCR,
Guaranty: Oklahoma Gas & Electric 3.38% 1/1/25 1,000,000 (e) 1,000,000
-------------
1,600,572
-------------
PENNSYLVANIA (3.63%)
Allegheny County IDA, LOC Dresdner Bank 3.20% 7/1/27 500,000 (e) 500,000
Dauphin County General Authority, AMBAC
Insured 3.35% 6/1/00 750,000 750,119
Delaware Valley Regional Finance
Authority,
LOC Credit Suisse 3.20% 12/1/20 4,200,000 (e) 4,200,000
Quakertown Hospital Authority, LOC PNC
Bank 3.35% 7/1/05 8,500,000 (e) 8,500,000
Quakertown Hospital Authority, LOC PNC
Bank 3.35% 7/1/26 1,400,000 (e) 1,400,000
York County G.O., FGIC Insured 3.60% 12/1/00 1,000,000 1,007,557
-------------
16,357,676
-------------
SOUTH CAROLINA (2.85%)
Jobs Economic Development Authority,
(Catholic Diocese), LOC Bank of
America 3.35% 9/1/16 4,700,000 (e) 4,700,000
State Housing Finance and Development
Authority,
LOC First Union Bank 3.25% 7/1/07 2,070,000 (e) 2,070,000
York County PCR, Guaranty: Duke Power
Co. 3.60% 2/8/00 2,600,000 2,600,000
York County PCR, Guaranty: Duke Power
Co. 3.60% 3/15/00 2,475,000 2,475,000
York County PCR, Guaranty: National
Rural Coop Finance 3.60% 2/7/00 1,000,000 1,000,000
-------------
12,845,000
-------------
TENNESSEE (2.80%)
City of Chattanooga G.O. 4.11% 11/1/00 1,000,000 1,006,419
Montgomery County Public Building
Authority,
LOC NationsBank 3.30% 7/1/15 5,500,000 (e) 5,500,000
Nashville and Davidson County Health and
Education Facility, LOC NationsBank 3.30% 8/1/18 6,120,000 (e) 6,120,000
-------------
12,626,419
-------------
TEXAS (7.70%)
Austin Independent School District,
Texas PSF guaranteed 3.93% 8/1/00 2,000,000 1,961,908
Brazos River Harbor Navagation District,
Guaranty: Dow Chemical 3.65% 8/1/22 2,100,000 (e) 2,100,000
City of Austin (Travis and Williamson
Centers),
LOC Morgan Guaranty 3.85% 3/10/00 2,816,000 2,816,000
City of Austin (Travis and Williamson
Centers),
LOC Morgan Guaranty 3.70% 3/10/00 3,600,000 3,600,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
20
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
City of Austin, LOC Morgan Guaranty 3.80% 3/9/00 $ 5,000,000 $ 5,000,000
City of Waco G.O., FGIC Insured 4.30% 2/1/01 785,000 797,340
Denison ISD Capital Appreciation,
Guaranty:
PSF Guaranty 3.90% 8/1/00 750,000 735,824
Grand Prairie G.O., MBIA Insured 3.25% 2/15/00 2,390,000 2,391,998
Houston Water & Sewer Systems, MBIA
Insured 4.00% 12/1/00 1,000,000 967,751
North East ISD, Guaranty: Texas PSF 3.15% 2/1/00 2,150,000 2,150,000
Round Rock ISD G.O., MBIA Insured 3.70% 8/15/00 1,270,000 1,302,582
San Antonio Water Revenue Capital
Appreciation Bonds, Prerefunded 3.35% 5/1/00 2,514,964 2,494,746
South Texas Water Authority, FSA Insured 3.80% 9/1/00 1,500,000 1,501,677
State Public Finance Authority, MBIA
Insured 4.32% 2/1/01 1,640,000 1,677,614
Tarrant County G.O. 3.77% 7/15/00 1,180,000 1,183,120
Tarrant County Housing Finance
Corporation, MFHR - Single Family
Apartments Project, LOC Suntrust
Bank 3.25% 11/1/17 4,025,000 (e) 4,025,000
-------------
34,705,560
-------------
UTAH (1.11%)
State Board of Regents Student Loan
Revenue Bonds
Series B, AMBAC Insured 3.20% 11/1/00 5,000,000 5,000,000
-------------
VERMONT (0.27%)
State of Vermont G.O., Escrowed in
Governments 3.15% 2/1/00 1,210,000 1,234,200
-------------
VIRGINIA (1.51%)
Alexandria IDA (Pooled Income Program),
LOC
Bank of America 3.30% 7/1/26 6,805,000 (e) 6,805,000
-------------
WASHINGTON (3.45%)
Clark County ISD, Prerefunded and
Escrowed in Governments 4.09% 12/1/00 1,000,000 1,023,418
State Health Care Facilities Authority
(Fred Hutchinson),
LOC Morgan Guaranty 3.65% 1/1/18 3,700,000 (e) 3,700,000
State of Washington Economic Development
Revenue,
LOC U.S. Bank 3.70% 9/1/18 3,000,000 (e) 3,000,000
State of Washington G.O., Prerefunded 3.55% 8/1/00 2,400,000 2,437,659
State of Washington Housing Finance
(Emerald Heights),
LOC U.S. Bank 3.60% 1/1/21 5,400,000 (e) 5,400,000
-------------
15,561,077
-------------
WISCONSIN (2.82%)
Lacrosse IDA (Dairyland Power), AMBAC
Insured 3.60% 2/1/15 2,400,000 (e) 2,400,000
Lacrosse IDA (Dairyland Power), AMBAC
Insured 3.60% 2/1/14 5,945,000 (e) 5,945,000
School District Cash Flow (Aid
Anticipation) 4.00% 11/1/00 3,000,000 3,000,000
State ISD, Guaranty: Fond Du Lac School
District 3.80% 9/28/00 1,350,000 1,350,000
-------------
12,695,000
-------------
WYOMING (1.82%)
Converse County PCR, LOC Deutsche Bank 3.50% 3/7/00 1,100,000 1,100,000
Converse County PCR (Pacificorp
Project),
LOC Deutsche Bank 3.65% 2/10/00 1,100,000 1,100,000
Platte County PCR, LOC National Rural
Coop
Finance Corporation 3.65% 7/1/14 6,000,000 (e) 6,000,000
-------------
8,200,000
- ---------------------------------------------------------------------------------------------------
Total Investments in Securities (cost:
$447,283,605) (b) $ 447,283,605
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
21
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (96.47%):
- ---------------------------------------------------------------------------------------------------
BANKS - DOMESTIC (11.85%)
Branch Banking & Trust Company 6.33% 11/30/00 $ 15,000,000 (d) $ 15,032,006
Comerica Bank 5.73% 7/13/00 10,000,000 (d) 9,998,240
Fifth Third Bank 5.83% 3/28/00 20,000,000 20,000,000
Key Bank N.A., Cleveland 6.08% 2/18/00 10,000,000 (d) 10,000,225
Key Bank N.A., Cleveland 5.75% 4/25/00 2,000,000 2,002,656
--------------
57,033,127
--------------
BANKS - OTHER (10.64%)
Banque National de Paris 5.78% 3/23/00 20,000,000 19,836,233
Formosa Plastics USA, LOC ABN AMRO 5.94% 3/14/00 6,090,000 6,047,796
Petroleo Brasilieiro, LOC Barclays Bank 6.05% 3/13/00 9,400,000 9,335,231
Royal Bank of Canada 5.04% 2/8/00 4,000,000 3,999,967
United Bank of Switzerland A.G. 5.29% 3/1/00 5,500,000 5,500,021
United Bank of Switzerland A.G. 6.22% 12/11/00 6,500,000 6,496,453
--------------
51,215,701
--------------
BUSINESS MACHINES (4.16%)
Xerox Credit Corporation 5.82% 2/1/00 20,000,000 20,000,000
--------------
CHEMICALS (2.07%)
Henkel Corporation 5.85% 2/16/00 10,000,000 (c) 9,975,625
--------------
CONGLOMERATES (2.87%)
Diageo Capital PLC 5.80% 4/17/00 14,000,000 (c) 13,828,578
--------------
DRUGS AND COSMETICS (0.21%)
American Home Products 5.11% 2/15/00 1,000,000 1,000,931
--------------
FINANCIAL - AUTO (6.74%)
DaimlerChrysler North American Holdings 5.70% 3/20/00 9,395,000 9,323,598
General Motors Acceptance Corporation 5.18% 4/1/00 1,400,000 1,406,477
General Motors Acceptance Corporation 5.80% 4/20/00 12,000,000 11,847,267
Paccar Financial Corporation 5.80% 4/20/00 10,000,000 9,872,722
--------------
32,450,064
--------------
FINANCIAL - AVIATION (1.14%)
International Lease Finance Corporation 6.16% 3/1/00 1,500,000 1,499,960
International Lease Finance Corporation 5.35% 3/6/00 4,000,000 3,996,366
--------------
5,496,326
--------------
FINANCIAL - DIVERSIFIED BUSINESS (16.92%)
American General Finance Corporation 5.15% 2/15/00 4,000,000 4,004,053
Associates Corporation of North America 5.79% 2/1/00 18,460,000 18,460,000
Household Finance Company 5.80% 4/21/00 9,230,000 9,111,036
Household Finance Company 6.02% 4/27/00 5,000,000 (d) 5,002,664
Merrill Lynch & Co. 6.19% 3/3/00 10,000,000 (d) 10,000,948
Merrill Lynch & Co. 6.52% 3/6/00 5,000,000 (d) 5,002,032
Merrill Lynch & Co. 6.47% 6/27/00 2,500,000 2,503,874
Merrill Lynch & Co. 6.38% 10/17/00 380,000 380,763
Morgan (J.P.) and Company 5.90% 2/8/00 12,000,000 11,986,233
Morgan (J.P.) and Company 5.74% 5/18/00 5,000,000 (d) 4,999,747
Morgan Stanley Dean Witter Discover 6.49% 3/1/00 10,000,000 (d) 10,003,225
--------------
81,454,575
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
22
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
- ---------------------------------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (14.59%)
Falcon Asset Securitization 5.75% 3/20/00 $ 11,000,000 (c) $ 10,915,667
Preferred Receivables Funding
Corporation 5.75% 3/7/00 9,000,000 (c) 8,949,688
Receivables Capital Corporation 6.01% 2/1/00 17,500,000 (c) 17,500,000
Triple A One Funding 5.68% 2/11/00 12,055,000 (c) 12,035,980
Variable Funding Corporation 5.75% 3/16/00 8,500,000 (c) 8,440,264
Windmill Funding Corporation 6.08% 2/25/00 12,410,000 (c) 12,359,698
--------------
70,201,297
--------------
FOOD AND BEVERAGE (4.25%)
Bestfoods 5.70% 3/21/00 7,100,000 (c) 7,044,916
General Mills 6.27% 12/15/00 1,000,000 1,023,093
Sysco Corporation 5.81% 2/10/00 12,400,000 (c) 12,381,989
--------------
20,449,998
--------------
HOUSEHOLD PRODUCTS (2.16%)
Fortune Brands 5.80% 4/17/00 10,505,000 (c) 10,376,372
--------------
MANUFACTURING (1.88%)
Caterpillar Financial Services Inc. 5.80% 3/15/00 5,550,000 5,550,573
Caterpillar Financial Services Inc. 5.12% 11/1/00 3,500,000 3,470,616
--------------
9,021,189
--------------
OIL SERVICES (4.95%)
Louis Dreyfus Corporation, LOC ABN AMRO 5.70% 2/24/00 11,050,000 11,009,760
Totalfina S.A. 5.85% 4/20/00 13,000,000 12,833,113
--------------
23,842,873
--------------
RETAIL STORES (4.14%)
Wal-Mart Stores, Inc. 5.64% 2/22/00 20,000,000 (c) 19,934,200
--------------
TELECOMMUNICATIONS (2.08%)
AT&T Company 5.99% 7/13/00 10,000,000 (d) 9,998,219
--------------
UTILITIES - ELECTRIC (4.17%)
Northern States Power Company 5.92% 3/21/00 7,350,000 7,290,775
Northern States Power Company 5.79% 4/20/00 12,970,000 12,805,205
--------------
20,095,980
--------------
UTILITIES - FINANCIAL (1.65%)
National Rural Utilities Finance
Corporation 5.75% 2/17/00 7,985,000 7,964,593
- ---------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $464,339,648) $ 464,339,648
- ---------------------------------------------------------------------------------------------------
TAXABLE MUNICIPALS (3.13%):
- ---------------------------------------------------------------------------------------------------
New York City G.O., FGIC Insured 6.10% 2/9/00 10,450,000 10,450,000
New York City G.O. Series H-7, FGIC
Insured 6.10% 2/9/00 4,600,000 4,600,000
- ---------------------------------------------------------------------------------------------------
Total Taxable Municipals (cost:
$15,050,000) $ 15,050,000
- ---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$479,389,648) (b) $ 479,389,648
- ---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
23
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (UNAUDITED)
JANUARY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
ALABAMA (0.69%)
Chatom Independent Development Board,
Guaranty: National Rural Coop
Finance Corporation 3.85% 2/4/00 $ 600,000 $ 600,000
-------------
CALIFORNIA (0.15%)
Oakland-Alameda County, LOC CIBC 3.30% 2/1/00 130,000 130,000
-------------
COLORADO (0.46%)
Health Facilities Authority Revenue
(Visiting Nurses), LOC Norwest Bank 3.60% 7/1/22 400,000 (e) 400,000
-------------
FLORIDA (1.38%)
Jacksonville Electric System Series C-1,
LOC Morgan Guaranty 3.65% 2/10/00 1,200,000 1,200,000
-------------
GEORGIA (4.83%)
De Kalb Private Hospital Authority, LOC
Suntrust Bank 3.15% 3/1/24 1,700,000 (e) 1,700,000
Hapeville Development Authority, LOC
Deutsche Bank 3.60% 11/1/15 600,000 (e) 600,000
Municipal Electric Authority of Georgia,
LOC ABN-AMRO 3.20% 1/1/26 1,900,000 (e) 1,900,000
-------------
4,200,000
-------------
ILLINOIS (5.12%)
Health Facilities Authority (Alexian
Brothers Medical Center), MBIA
Insured 3.70% 3/6/00 880,000 880,000
Joliet Regional Port District Bonds,
Guaranty: Dow Chemical 3.70% 7/15/03 2,000,000 (e) 2,000,000
Metropolitan Pier & Expo Authority, FGIC
Insured 4.02% 6/15/00 1,595,000 1,571,800
-------------
4,451,800
-------------
INDIANA (4.07%)
Health Facilities Financing Authority,
LOC First Chicago 3.20% 1/1/22 1,000,000 (e) 1,000,000
Hospital Equipment Financing Authority,
MBIA Insured 3.30% 12/1/15 1,500,000 (e) 1,500,000
University of Indiana Revenue Bonds,
Prerefunded and Escrowed in
Governments 3.70% 8/1/00 1,000,000 1,035,110
-------------
3,535,110
-------------
IOWA (4.14%)
Financial Authority Revenue (Burlington
Medical Center), FSA Insured 3.70% 6/1/27 3,600,000 (e) 3,600,000
-------------
KANSAS (0.46%)
Riley County, FSA Insured 4.00% 9/1/00 400,000 400,000
-------------
KENTUCKY (1.17%)
State Property and Buildings Community
Revenue, Escrowed in Governments 4.23% 2/1/01 1,000,000 1,017,058
-------------
LOUISIANA (3.58%)
State G.O., Escrowed in Governments 3.95% 9/1/00 3,000,000 3,110,346
-------------
MARYLAND (7.23%)
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric Company 3.70% 2/10/00 2,000,000 2,000,000
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric Company 3.80% 3/9/00 2,380,000 2,380,000
Montgomery County Housing Opportunity,
LOC FHLMC 3.25% 11/1/07 1,900,000 (e) 1,900,000
-------------
6,280,000
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
24
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MINNESOTA (1.57%)
City of Arden Hills Health Care Revenue
Bonds (Presbyterian Homes), LOC U.S.
Bancorp 3.60% 9/1/29 $ 1,361,000 (e) $ 1,361,000
-------------
MISSISSIPPI (3.42%)
Claiborne County PCR, Guaranty: Nat'l
Rural Utilities Coop Finance 3.70% 2/9/00 2,500,000 2,500,000
State Highway Revenue Series #39,
Prerefunded 3.10% 2/1/00 471,944 471,944
-------------
2,971,944
-------------
NEW YORK (3.22%)
State Housing Revenue Bonds, Prerefunded
and Escrowed in Governments 4.20% 11/1/00 2,830,000 2,798,613
-------------
NORTH CAROLINA (3.45%)
Beaufort County, LOC Union Bank of
Switzerland 4.00% 9/1/00 1,600,000 1,602,690
State Medical Center Commission Revenues
(Carol Woods Project), LOC Bank of
America 3.65% 4/1/21 1,400,000 (e) 1,400,000
-------------
3,002,690
-------------
OHIO (8.40%)
Air Quality Development Authority, FGIC
Insured 3.70% 2/7/00 1,800,000 1,800,000
Warren County Ohio Health Care Facility
(Otterbein Homes), LOC Fifth Third
Bank 3.20% 7/1/23 5,500,000 (e) 5,500,000
-------------
7,300,000
-------------
PENNSYLVANIA (16.85%)
Berks County G.O., Prerefunded and
Escrowed in Governments 3.90% 11/15/00 725,000 757,560
Delaware County Hospital Revenue Bonds
(Chester Medical Center),
Prerefunded and Escrowed in
Governments 4.05% 12/15/00 750,000 786,302
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 3.20% 12/1/20 100,000 (e) 100,000
Quakertown Hospital Authority, LOC PNC
Bank 3.35% 7/1/05 8,000,000 (e) 8,000,000
Washington County (Higher Education Pool
Lease), LOC First Union 3.25% 11/1/05 5,000,000 (e) 5,000,000
-------------
14,643,862
-------------
SOUTH CAROLINA (1.15%)
York County PCR, Guaranty: Duke Power
Co. 3.50% 2/8/00 1,000,000 1,000,000
-------------
TENNESSEE (2.74%)
Davidson County, LOC Bank of America 3.30% 10/1/26 800,000 (e) 800,000
Nashville and Davidson County Health and
Education Facility, LOC Bank of
America 3.30% 8/1/18 1,580,000 (e) 1,580,000
-------------
2,380,000
-------------
TEXAS (8.44%)
Austin Independent School District,
Texas PSF Guaranteed 3.93% 8/1/00 2,275,000 2,231,671
City of Austin, LOC Morgan Guaranty 3.70% 3/10/00 2,300,000 2,300,000
Harris County Revenue, MBIA Insured 4.00% 10/1/00 500,000 504,423
Northside Independent School District,
Texas PSF Guaranteed 3.13% 2/1/00 1,385,000 1,385,000
San Antonio Water Revenue Capital
Appreciation Bonds, Prerefunded 3.35% 5/1/00 919,548 912,156
-------------
7,333,250
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
25
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER YIELD DATE AMOUNT VALUE (A)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VERMONT (1.17%)
State of Vermont G.O., Escrowed in
Governments 3.12% 2/1/00 $ 1,000,000 $ 1,020,000
-------------
VIRGINIA (0.60%)
State of West Virginia Water
Development, Escrowed in Governments 4.36% 11/1/00 500,000 521,751
-------------
WASHINGTON (4.60%)
State Health Care Facilities Authority
(Fred Hutchinson), LOC Morgan
Guaranty 3.65% 1/1/29 1,000,000 (e) 1,000,000
State of Washington Economic Development
Revenue, LOC U.S. Bank 3.70% 9/1/18 1,400,000 (e) 1,400,000
State of Washington Housing Finance
(Emerald Heights), LOC U.S. Bank 3.60% 1/1/21 1,600,000 (e) 1,600,000
-------------
4,000,000
-------------
WEST VIRGINIA (4.03%)
Marshall County (Bayer Project),
Guaranty: Bayer Corp. 3.70% 3/1/09 3,500,000 (e) 3,500,000
-------------
WISCONSIN (1.73%)
School District Cash Flow (Aid
Anticipation) 4.00% 11/1/00 1,500,000 1,500,000
-------------
WYOMING (4.72%)
Platte County PCR, LOC National Rural
Coop Finance Corporation 3.65% 7/1/14 4,100,000 (e) 4,100,000
- ---------------------------------------------------------------------------------------------------
Total Investments in Securities (cost:
$86,357,424) (b) $ 86,357,424
- ---------------------------------------------------------------------------------------------------
</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, 2000.
(e) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on January 31, 2000. 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.
(f) Portfolio abbreviations:
<TABLE>
<S> <C> <C>
AMBAC - American Municipal Bond Association Corporation
CIBC - Canadian Imperial Bank of Commerce
FGIC - Financial Guaranty Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FSA - Financial Security Assurance Corporation
GO - General Obligation
GECC - General Electric Capital Corporation
IDA - Industrial Development Authority
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
</TABLE>
26
This report is signed on behalf of the registrant (or depositor or trustee) in
the City of Minneapolis and State of Minnesota on the twentieth day of
March 2000.
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
