<PAGE>
September 1, 2000
[PHOTO OF RAYE KANZENBACH, CFA]
To Our Shareholders:
We are pleased to present the July 31, 2000 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 Assets and
Liabilities for each Fund and a detailed schedule of each Fund's investment
portfolio as of July 31, 2000. Also included are Statements of Operations that
show each Fund's earnings and expenses, and Statements of Changes in Net Assets
for the two most recent fiscal years.
Short-term interest rates rose approximately 1.50% during the fiscal year ending
July 31. In response to the very strong economy the Federal Reserve raised the
fed funds rate (the rate at which banks lend each other money overnight) from
5.00% to 6.50% over this time. The Fed has instituted this tightening of
monetary policy in order to slow the rate of economic growth. The economy has
been growing very rapidly at a time of full employment, and the Fed fears that
this will put upward pressure on wages and prices, thereby boosting inflation.
However, recent data indicate that the economy's growth is moderating and that
productivity improvements have been very strong. This strong productivity growth
has prevented wage increases from causing inflationary price rises, and has been
the critical factor keeping inflation low during this time of extraordinary
growth.
The primary goals of each Fund are to preserve capital and maintain high
liquidity. To meet these goals the Funds' manager employs careful credit
analysis on all investments, and the Funds are managed very conservatively in
all respects. Despite these conservative policies, the Funds' yields have
remained very competitive compared to other money market funds. This prudent and
successful strategy has earned the continued confidence of investors, who have
brought the net asset level of the Funds to over $6 billion as of July 31, 2000.
Thank you for your confidence in the Great Hall Funds. We pledge to continue
managing these Funds in the careful and diligent manner that you have come to
expect.
Sincerely,
[/S/ RAYE KANZENBACH]
Raye Kanzenbach
Chief Investment Officer
Great Hall Investment Funds, Inc.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JULY 31, 2000
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
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; $23,900,000; $0; $0 and $0,
respectively (amortized cost
$4,837,283,702; $265,548,975; $423,623,555;
$380,871,765 and $158,185,663,
respectively).............................. $4,837,283,702 $265,548,975 $423,623,555 $380,871,765 $158,185,663
Cash in bank on demand deposit............... 94,542 53,118 186,915 31,695 57,399
Accrued interest receivable.................. 16,828,462 1,592,238 2,712,564 1,829,371 812,374
Organization costs (note 2).................. -- -- -- 3,412 --
-----------------------------------------------------------------------------------------------------------------------------
Total assets................................. 4,854,206,706 267,194,331 426,523,034 382,736,243 159,055,436
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Accrued investment advisory fee.............. 1,670,134 93,092 166,746 77,445 31,884
Other accrued expenses....................... 1,033,457 140,068 126,630 168,229 102,668
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities............................ 2,703,591 233,160 293,376 245,674 134,552
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to outstanding capital
stock...................................... $4,851,503,115 $266,961,171 $426,229,658 $382,490,569 $158,920,884
-----------------------------------------------------------------------------------------------------------------------------
REPRESENTED BY:
Capital stock - authorized 100 billion shares
of $.01 par value for each Fund,
outstanding 4,851,503,115; 266,961,171; and
426,229,658 shares, respectively........... $ 48,515,031 $ 2,669,612 $ 4,262,297 $ -- $ --
Capital stock - authorized 10 billion shares
of $.01 par value for each Fund,
outstanding 382,490,569; and 158,920,884
shares, respectively....................... -- -- -- 3,824,906 1,589,209
Additional paid-in capital................... 4,802,988,084 264,291,559 421,967,361 378,665,663 157,331,675
-----------------------------------------------------------------------------------------------------------------------------
Total - representing net assets
applicable to outstanding capital
stock.................................. $4,851,503,115 $266,961,171 $426,229,658 $382,490,569 $158,920,884
-----------------------------------------------------------------------------------------------------------------------------
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
YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------
INCOME:
Interest................................... $281,787,804 $16,188,674 $16,470,417 $25,031,970 $4,045,502
-------------------------------------------------------------------------------------------------------------------------
EXPENSES (NOTE 4):
Investment advisory fee.................... 20,912,465 1,219,404 2,194,075 1,043,328 260,556
Custodian, accounting and
transfer agent fees...................... 247,500 49,550 62,250 43,668 29,800
Sub-accounting fees........................ 5,859,750 158,060 144,250 2,905 1,949
Reports to shareholders.................... 2,043,705 48,600 50,200 4,250 3,550
Amortization of organization costs......... -- -- -- 1,687 --
Directors' fees............................ 15,150 15,150 15,150 15,150 15,150
Audit and legal fees....................... 83,000 25,900 27,450 24,500 29,700
Registration fees.......................... 614,394 40,694 105,842 172,092 101,658
Administrative............................. 36,500 850 1,500 400 3,300
Other expenses............................. 58,000 26,921 9,250 10,300 12,900
-------------------------------------------------------------------------------------------------------------------------
Total expenses............................... 29,870,464 1,585,129 2,609,967 1,318,280 458,563
Less expenses voluntarily waived or absorbed
by Advisor................................. -- -- -- -- (48,800)
-------------------------------------------------------------------------------------------------------------------------
Total net expenses........................... 29,870,464 1,585,129 2,609,967 1,318,280 409,763
-------------------------------------------------------------------------------------------------------------------------
Investment income - net...................... 251,917,340 14,603,545 13,860,450 23,713,690 3,635,739
-------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
operations................................. $251,917,340 $14,603,545 $13,860,450 $23,713,690 $3,635,739
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT TAX-FREE
MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
-----------------------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
JULY 31, JULY 31, JULY 31, JULY 31, JULY 31, JULY 31,
2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------
Operations:
Investment income,
net.................. $ 251,917,340 $ 215,789,172 $ 14,603,545 $ 12,128,923 $ 13,860,450 $ 14,096,093
-----------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations...... 251,917,340 215,789,172 14,603,545 12,128,923 13,860,450 14,096,093
-----------------------------------------------------------------------------------------------------------------------
Distributions from:
Investment income --
net.................. (251,917,340) (215,789,172) (14,603,545) (12,128,923) (13,860,450) (14,096,093)
-----------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders......... (251,917,340) (215,789,172) (14,603,545) (12,128,923) (13,860,450) (14,096,093)
-----------------------------------------------------------------------------------------------------------------------
Capital share
transactions at net
asset value of $1.00
per share:
Proceeds from
sales.............. 2,124,001,382 2,663,848,899 234,351,937 325,052,784 464,030,216 568,704,391
Shares issued for
reinvestment
of distributions... 251,917,340 215,789,172 14,603,545 12,128,923 13,860,450 14,096,093
Payment for shares
redeemed........... (2,047,115,404) (3,201,289,989) (253,370,796) (294,734,706) (548,799,640) (631,510,518)
-----------------------------------------------------------------------------------------------------------------------
Increase/(decrease) in
net assets from
capital share
transactions......... 328,803,318 (321,651,918) (4,415,314) 42,447,001 (70,908,974) (48,710,034)
-----------------------------------------------------------------------------------------------------------------------
Total increase/(decrease)
in net assets.......... 328,803,318 (321,651,918) (4,415,314) 42,447,001 (70,908,974) (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................. $ 4,851,503,115 $ 4,522,699,797 $ 266,961,171 $ 271,376,485 $ 426,229,658 $ 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>
------------------------------------------------------------
PERIOD FROM
YEAR YEAR YEAR SEPT. 23,
ENDED ENDED ENDED 1998*
JULY 31, JULY 31, JULY 31, TO JULY 31,
2000 1999 2000 1999
---------------------------------------------------------------------------------------
Operations:
Investment income,
net.................. $ 23,713,690 $ 13,852,067 $ 3,635,739 $ 1,117,181
---------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations...... 23,713,690 13,852,067 3,635,739 1,117,181
---------------------------------------------------------------------------------------
Distributions from:
Investment income --
net.................. (23,713,690) (13,852,067) (3,635,739) (1,117,181)
---------------------------------------------------------------------------------------
Total distributions to
shareholders......... (23,713,690) (13,852,067) (3,635,739) (1,117,181)
---------------------------------------------------------------------------------------
Capital share
transactions at net
asset value of $1.00
per share:
Proceeds from
sales.............. 1,025,812,563 784,765,959 285,108,439 159,109,858
Shares issued for
reinvestment
of distributions... 23,713,690 13,852,067 3,635,739 1,117,181
Payment for shares
redeemed........... (977,218,781) (702,220,139) (182,971,975) (107,078,358)
---------------------------------------------------------------------------------------
Increase in net assets
from
capital share
transactions......... 72,307,472 96,397,887 105,772,203 53,148,681
---------------------------------------------------------------------------------------
Total increase in net
assets................. 72,307,472 96,397,887 105,772,203 53,148,681
---------------------------------------------------------------------------------------
Net assets at beginning
of period.............. 310,183,097 213,785,210 53,148,681 --
---------------------------------------------------------------------------------------
Net assets at end of
period................. $ 382,490,569 $ 310,183,097 $ 158,920,884 $ 53,148,681
---------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 July 31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES PROCEEDS
--------------------------------------------------------------------------------------------
<S> <C> <C>
Prime Fund........................................ $56,098,907,771 $55,770,596,780
U.S. Government Fund.............................. 6,588,969,410 6,593,375,986
Tax-Free Fund..................................... 809,445,833 881,265,221
Institutional Prime Fund.......................... 7,825,011,049 7,752,750,987
Institutional Tax-Free Fund....................... 382,503,181 277,189,812
</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 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 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 $67,922 for the period ended July 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
-------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
July 31, 2000 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 0.05 0.05 0.05 0.05 0.05
Distributions from
investment operations (0.05) (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 5.3% 4.6% 5.0% 4.9% 5.0%
Net assets, end of period
(millions) $4,852 $4,523 $4,844 $3,130 $2,405
Ratio of expenses to
average net assets 0.63% 0.61% 0.63% 0.64% 0.70%
Ratio of net investment
income to average net
assets 5.32% 4.62% 5.04% 4.90% 4.93%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
July 31, 2000 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 0.05 0.05 0.05 0.05 0.05
Distributions from
investment operations (0.05) (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 5.2% 4.5% 5.0% 4.8% 4.9%
Net assets, end of period
(millions) $ 267 $ 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 5.22% 4.50% 4.98% 4.85% 4.87%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended
July 31, 2000 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 0.03 0.03 0.03 0.03
Distributions from
investment operations (0.03) (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 3.2% 2.7% 3.1% 3.0% 3.0%
Net assets, end of period
(millions) $ 426 $ 497 $ 546 $ 423 $ 359
Ratio of expenses to
average net assets 0.59% 0.59% 0.58% 0.58% 0.59%
Ratio of net investment
income to average net
assets 3.16% 2.65% 3.05% 3.02% 3.03%
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
5. FINANCIAL HIGHLIGHTS (continued)
<TABLE>
<CAPTION>
INSTITUTIONAL PRIME MONEY MARKET FUND
--------------------------------------------------------------------------------------
Period from
August 11, 1997*
Year ended Year ended to
July 31, 2000 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 0.06 0.05 0.05
Distributions from investment
operations (0.06) (0.05) (0.05)
--------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------------------
Total return 5.7% 4.9% 5.2%
Net assets, end of period
(millions) $ 382 $ 310 $ 214
Ratio of expenses to average net
assets** 0.32% 0.34% 0.39%
Ratio of net investment income to
average net assets** 5.68% 4.85% 5.27%
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------
Period from
September 23, 1998*
Year ended to
July 31, 2000 July 31, 1999
<S> <C> <C>
-------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00
-------------------------------------------------------------------------------
Income from investment operations 0.03 0.03
Distribution from investment operations (0.03) (0.03)
-------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00
-------------------------------------------------------------------------------
Total return 3.4% 2.5%
Net assets, end of period (millions) $ 159 $ 53
Ratio of expenses to average net
assets*** 0.39% 0.30%
Ratio of net investment income to
average net assets*** 3.49% 2.79%
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
</TABLE>
* Commencement of operations
** 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.
*** 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 July 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 0.44%/3.44% for the period ended
July 31, 2000.
9
<PAGE>
PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) 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 (99.33%):
---------------------------------------------------------------------------------------------------
AGRICULTURAL PRODUCTS (0.41%)
Archer Daniels Midland Company 6.57% 9/18/00 $ 20,000,000 $ 19,824,800
--------------
BANKS - DOMESTIC (13.08%)
Bank of America 7.20% 5/4/01 7,800,000 7,799,920
Bank One N.A. 6.75% 8/17/00 40,000,000 40,000,000
Bank One N.A. 6.65% 10/13/00 25,000,000 25,000,000
Comerica Bank 6.58% 6/7/01 30,000,000 (d) 29,992,356
Comerica Bank 7.12% 6/21/01 25,000,000 24,993,564
First Tennessee Bank 6.63% 8/8/00 50,000,000 50,000,000
First Tennessee Bank 6.75% 8/18/00 40,000,000 40,000,000
First Union Bank 6.30% 9/25/00 26,000,000 25,983,923
First Union Bank 6.63% 5/18/01 20,000,000 (d) 20,000,000
Formosa Plastics USA, LOC Bank of
America 6.52% 10/10/00 42,500,000 41,970,382
Formosa Plastics USA, LOC Bank of
America 6.55% 10/31/00 20,000,000 19,668,861
LaSalle Bank, Chicago 6.60% 8/1/00 40,000,000 40,000,000
LaSalle Bank, Chicago 6.55% 10/27/00 17,500,000 17,500,000
LaSalle Bank, Chicago 7.01% 11/20/00 15,000,000 15,000,264
Old Kent Bank 6.73% 8/25/00 40,000,000 40,000,000
Old Kent Bank 6.68% 9/27/00 20,000,000 20,000,000
Old Kent Bank 6.63% 10/24/00 36,000,000 36,000,000
River Fuel Company, LOC Bank of New York 6.55% 8/31/00 10,850,000 10,790,777
SouthTrust Bank N.A., Birmingham 6.71% 9/6/00 50,000,000 50,000,000
SouthTrust Bank N.A., Birmingham 6.55% 10/13/00 32,900,000 32,900,000
SouthTrust Bank N.A., Birmingham 6.68% 10/24/00 17,000,000 17,000,000
State Street Bank & Trust 6.75% 9/1/00 30,000,000 30,000,000
--------------
634,600,047
--------------
BANKS - OTHER (17.99%)
Abbey National North America Corporation 6.64% 8/30/00 30,000,000 29,839,533
Abbey National North America Corporation 6.52% 10/11/00 32,100,000 31,687,229
Accor S.A., LOC Banque National de Paris 6.60% 8/16/00 45,000,000 44,876,750
Accor S.A., LOC Banque National de Paris 6.55% 10/16/00 35,000,000 34,516,028
Bank of Nova Scotia 6.72% 9/12/00 25,000,000 25,000,000
Bank of Nova Scotia 6.68% 9/14/00 25,000,000 25,000,000
Bank of Nova Scotia 6.68% 9/20/00 10,000,000 10,000,000
Bank of Nova Scotia 6.63% 10/17/00 25,000,000 25,000,000
Canadian Imperial Bank of Commerce 6.69% 9/12/00 30,000,000 30,000,688
Canadian Imperial Bank of Commerce 6.63% 10/19/00 30,000,000 30,000,647
Credit Suisse First Boston 6.64% 10/23/00 63,000,000 63,003,396
Deutsche Bank 6.75% 8/23/00 30,000,000 30,000,000
Deutsche Bank 6.30% 12/6/00 23,500,000 23,494,546
Deutsche Bank 6.55% 1/12/01 7,000,000 6,998,505
Deutsche Bank 6.76% 2/22/01 17,050,000 17,044,549
Dexia Credit Local de France 6.63% 8/22/00 40,000,000 39,845,300
Dexia Credit Local de France 6.52% 10/16/00 25,000,000 24,655,889
Hipotecario Funding Corporation, LOC
Barclays Bank 6.62% 9/20/00 26,250,000 26,008,646
JMG Funding Inc., LOC Societe Generale 6.53% 9/27/00 15,198,000 15,040,865
JMG Funding Inc., LOC Societe Generale 6.57% 10/23/00 26,813,000 26,406,850
Louis Dreyfus Corporation, LOC Dresdner
Bank 6.60% 8/3/00 25,000,000 24,990,833
Lloyds TSB Bank 6.42% 9/29/00 17,500,000 17,500,000
Lloyds TSB Bank 6.70% 9/29/00 40,000,000 40,000,000
Pemex Capital Inc., LOC Barclays Bank 6.54% 10/11/00 50,000,000 49,355,083
Rabobank Nederland 6.43% 9/29/00 5,000,000 5,000,000
Rabobank Nederland 6.43% 9/29/00 30,000,000 30,000,000
Rabobank Nederland 6.73% 11/3/00 15,000,000 15,000,000
Rabobank Nederland 6.59% 1/12/01 12,000,000 12,000,000
Rabobank Nederland 6.55% 1/31/01 19,600,000 19,595,329
Royal Bank of Canada 6.46% 10/31/00 16,250,000 16,250,000
Sinochem America, LOC ABN AMRO 6.56% 8/2/00 13,675,000 13,672,508
Sinochem America, LOC ABN AMRO 6.58% 8/3/00 19,800,000 19,792,762
Sinochem America, LOC ABN AMRO 6.55% 8/14/00 11,500,000 11,472,799
Toronto Dominion Bank 6.64% 10/20/00 40,000,000 40,000,000
--------------
873,048,735
--------------
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------------------------------------------------------------------------
CHEMICALS (0.53%)
Great Lakes Chemical 6.57% 8/14/00 $ 25,620,000 (c) $ 25,559,217
--------------
CONGLOMERATES (1.31%)
Diageo Capital PLC 6.30% 12/4/00 23,500,000 23,495,118
Fortune Brands Inc. 6.50% 10/17/00 10,640,000 (c) 10,492,074
Fortune Brands Inc. 6.51% 10/23/00 30,000,000 29,549,725
--------------
63,536,917
--------------
ENTERTAINMENT (0.92%)
Carnival Corporation 6.51% 9/22/00 45,000,000 44,576,850
--------------
FINANCIAL - AUTO (4.14%)
DaimlerChrysler North American Holdings 6.55% 8/15/00 30,000,000 29,923,583
DaimlerChrysler North American Holdings 6.64% 8/21/00 30,000,000 29,889,333
DaimlerChrysler North American Holdings 6.48% 11/1/00 30,000,000 29,503,200
Ford Motor Credit Corporation, Puerto
Rico 6.54% 8/17/00 50,000,000 49,854,667
General Motors Acceptance Corporation 6.77% 2/15/01 10,300,000 10,239,433
Paccar Financial Corporation 6.40% 8/2/00 26,430,000 26,425,301
Paccar Financial Corporation 6.62% 8/24/00 25,000,000 24,894,264
--------------
200,729,781
--------------
FINANCIAL - AVIATION (1.98%)
International Lease Finance Company 6.53% 8/8/00 40,000,000 39,949,211
International Lease Finance Company 6.52% 10/12/00 16,585,000 16,368,732
International Lease Finance Company 6.50% 10/16/00 30,000,000 29,588,333
International Lease Finance Company 6.58% 11/15/00 10,000,000 9,983,292
--------------
95,889,568
--------------
FINANCIAL - DIVERSIFIED BUSINESS (15.17%)
American General Finance Corporation 6.64% 8/25/00 23,950,000 23,843,981
American General Finance Corporation 6.50% 9/12/00 9,530,000 9,457,731
American General Finance Corporation 6.50% 9/26/00 25,000,000 24,747,222
American General Finance Corporation 6.53% 10/19/00 40,000,000 39,426,811
CIT Group Inc. 6.64% 8/1/00 100,000,000 100,000,000
Citicorp 6.55% 8/4/00 25,000,000 24,986,354
Citicorp 6.50% 9/13/00 22,310,000 22,136,787
General Electric Capital Corporation 6.48% 10/31/00 12,880,000 12,669,026
General Electric Capital Corporation 6.74% 11/30/00 35,675,000 34,866,822
Goldman Sachs Group 6.00% 8/7/00 25,000,000 25,000,000
Goldman Sachs Group 6.78% 9/20/00 30,000,000 30,000,000
Goldman Sachs Group 6.54% 10/16/00 1,400,000 1,380,671
Goldman Sachs Group 6.54% 10/18/00 40,000,000 39,433,200
Household Finance Corporation 6.50% 8/9/00 35,000,000 34,949,444
Household Finance Corporation 6.65% 8/29/00 30,000,000 29,844,833
Household Finance Corporation 6.52% 9/19/00 22,600,000 22,399,438
Household Finance Corporation 7.00% 3/20/01 5,000,000 4,965,992
J.P. Morgan & Company 6.48% 8/2/00 30,000,000 29,994,600
J.P. Morgan & Company 6.60% 6/6/01 25,000,000 (d) 25,000,000
Merrill Lynch & Company 6.83% 10/3/00 16,000,000 (d) 16,000,000
Merrill Lynch & Company 6.52% 10/13/00 30,000,000 29,603,367
Merrill Lynch & Company 6.86% 3/29/01 12,000,000 12,000,000
Morgan Stanley Dean Witter Discover 6.49% 8/11/00 30,000,000 29,945,917
Morgan Stanley Dean Witter Discover 6.52% 10/12/00 25,000,000 24,674,000
Morgan Stanley Dean Witter Discover 6.75% 3/16/01 25,000,000 (d) 25,000,000
Norwest Financial Inc. 6.57% 8/23/00 20,500,000 20,417,693
Norwest Financial Inc. 6.58% 9/13/00 26,125,000 25,919,672
Wells Fargo Financial Inc. 6.50% 9/14/00 17,485,000 17,346,091
--------------
736,009,652
--------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (18.07%)
Asset Securitization Cooperative
Corporation 6.52% 10/6/00 30,000,000 (c) 29,641,400
Asset Securitization Cooperative
Corporation 6.53% 10/11/00 40,000,000 (c) 39,484,855
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------------------------------------------------------------------------
FINANCIAL - DIVERSIFIED BUSINESS,
ASSET-BACKED (CONTINUED)
Barton Capital Corporation 6.52% 8/11/00 $ 53,660,000 (c) $ 53,562,815
Barton Capital Corporation 6.55% 9/8/00 27,297,000 (c) 27,108,272
Delaware Funding Corporation 6.51% 8/24/00 28,000,000 (c) 27,883,543
Delaware Funding Corporation 6.54% 10/4/00 40,000,000 (c) 39,534,933
Delaware Funding Corporation 6.56% 10/5/00 32,000,000 (c) 31,620,978
Edison Asset Securitization 6.56% 8/3/00 47,294,000 (c) 47,276,764
Edison Asset Securitization 6.58% 9/19/00 25,475,000 (c) 25,246,843
Falcon Asset Securitization 6.58% 8/2/00 24,220,000 (c) 24,215,573
Falcon Asset Securitization 6.52% 9/18/00 30,000,000 (c) 29,739,200
Falcon Asset Securitization 6.52% 9/28/00 30,000,000 (c) 29,684,867
Fleet Funding Corporation 6.56% 8/10/00 25,000,000 (c) 24,959,000
Park Avenue Receivables Corporation 6.52% 8/2/00 1,275,000 (c) 1,274,769
Park Avenue Receivables Corporation 6.55% 8/7/00 40,000,000 (c) 39,956,333
Park Avenue Receivables Corporation 6.51% 8/23/00 30,000,000 (c) 29,880,650
Preferred Receivables Funding
Corporation 6.52% 8/10/00 22,973,000 (c) 22,935,554
Preferred Receivables Funding
Corporation 6.51% 8/21/00 30,000,000 (c) 29,891,500
Preferred Receivables Funding
Corporation 6.52% 8/23/00 25,000,000 (c) 24,900,389
Receivables Capital Corporation 6.58% 8/4/00 40,000,000 (c) 39,978,067
Receivables Capital Corporation 6.55% 9/11/00 30,000,000 (c) 29,776,208
Thunder Bay Funding Corporation 6.55% 8/1/00 30,500,000 (c) 30,500,000
Thunder Bay Funding Corporation 6.52% 8/24/00 19,000,000 (c) 18,920,854
Thunder Bay Funding Corporation 6.53% 9/8/00 28,000,000 (c) 27,807,002
Triple A One Funding Corporation 6.56% 10/4/00 33,350,000 (c) 32,961,065
Variable Funding Corporation 6.61% 9/8/00 24,000,000 (c) 23,832,547
Windmill Funding Corporation 6.58% 8/10/00 14,525,000 (c) 14,501,106
Windmill Funding Corporation 6.57% 8/18/00 30,000,000 (c) 29,906,925
Windmill Funding Corporation 6.59% 9/11/00 25,000,000 (c) 24,812,368
Windmill Funding Corporation 6.52% 9/25/00 25,000,000 (c) 24,750,972
--------------
876,545,352
--------------
FINANCIAL - UTILITY (1.23%)
National Rural Utilities Cooperative
Financial Corporation 6.62% 8/16/00 30,000,000 29,917,250
National Rural Utilities Cooperative
Financial Corporation 6.52% 10/17/00 30,000,000 29,581,633
--------------
59,498,883
--------------
FOOD AND BEVERAGE (1.58%)
Coca Cola Company 6.53% 8/8/00 17,130,000 17,108,250
Coca Cola Company 6.51% 9/7/00 35,000,000 34,765,821
H.J. Heinz Company 6.50% 9/26/00 25,000,000 24,747,222
--------------
76,621,293
--------------
HOUSEHOLD PRODUCTS (1.46%)
Newell Rubbermaid Inc. 6.56% 8/4/00 27,000,000 (c) 26,985,240
Newell Rubbermaid Inc. 6.65% 8/14/00 19,670,000 19,622,765
Newell Rubbermaid Inc. 6.51% 10/12/00 24,500,000 24,181,010
--------------
70,789,015
--------------
MANUFACTURING (3.90%)
Caterpillar Financial Services Inc. 6.55% 8/28/00 19,950,000 19,851,996
Caterpillar Financial Services Inc. 6.60% 9/26/00 25,250,000 24,990,767
Caterpillar Financial Services Inc. 6.83% 10/12/00 15,000,000 15,000,000
Caterpillar Financial Services Inc. 6.83% 4/2/01 20,000,000 (d) 20,011,068
Honeywell International 6.54% 8/9/00 33,725,000 (c) 33,675,986
Honeywell International 6.55% 8/14/00 25,000,000 (c) 24,940,868
Honeywell International 6.52% 10/5/00 14,850,000 (c) 14,675,183
Snap-on Inc. 6.58% 8/24/00 11,400,000 (c) 11,352,076
Snap-on Inc. 6.50% 9/5/00 25,000,000 (c) 24,842,014
--------------
189,339,958
--------------
OIL SERVICES (3.12%)
Halliburton Company 6.63% 8/22/00 20,000,000 19,922,650
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------------------------------------------------------------------------
OIL SERVICES (CONTINUED)
Halliburton Company 6.51% 10/12/00 $ 32,124,000 $ 31,705,746
Texaco Inc. 6.50% 8/21/00 40,000,000 39,855,556
Totalfina S.A. 6.54% 8/7/00 30,000,000 29,967,300
Totalfina S.A. 6.51% 9/7/00 30,000,000 29,799,275
--------------
151,250,527
--------------
PHARMACEUTICAL (0.61%)
Cardinal Health Inc. 6.52% 9/12/00 30,000,000 (c) 29,771,800
--------------
PRINTING & PUBLISHING (5.76%)
Gannett Company 6.50% 9/11/00 50,000,000 (c) 49,629,861
Gannett Company 6.50% 9/21/00 36,230,000 (c) 35,896,382
Knight-Ridder 6.50% 9/12/00 29,800,000 29,574,017
Knight-Ridder 6.52% 10/10/00 32,466,000 (c) 32,054,403
McGraw-Hill Company 6.53% 8/11/00 22,000,000 21,960,094
McGraw-Hill Company 6.55% 8/28/00 16,500,000 16,418,944
Tribune Company 6.61% 9/19/00 39,800,000 39,443,618
Tribune Company 6.59% 9/20/00 30,000,000 29,725,417
Tribune Company 6.51% 9/22/00 25,000,000 24,764,917
--------------
279,467,653
--------------
RETAIL STORES (0.55%)
May Department Stores 6.51% 9/29/00 27,000,000 26,711,933
--------------
TELECOMMUNICATIONS (3.86%)
AT&T Company 6.78% 6/14/01 30,000,000 (d) 30,000,000
AT&T Company 7.09% 7/13/01 30,000,000 (c) 30,000,000
Bellsouth Capital Funding Corporation 6.51% 9/5/00 42,000,000 (c) 41,734,175
Motorola Inc. 6.60% 9/25/00 20,255,000 20,050,762
SBC Communications 6.15% 8/9/00 15,000,000 14,979,500
SBC Communications 6.75% 10/5/00 25,000,000 24,695,313
Verizon Communications 6.51% 9/18/00 26,350,000 26,121,282
--------------
187,581,032
--------------
UTILITIES - ELECTRIC (3.66%)
Baltimore Gas & Electric Company 6.84% 9/1/00 34,000,000 (d) 34,000,000
Northern States Power Company 6.57% 9/7/00 15,750,000 15,643,648
Northern States Power Company 6.51% 10/4/00 30,000,000 29,652,800
Northern States Power Company 6.52% 10/10/00 30,000,000 29,619,667
Southern California Edison Company 6.57% 9/7/00 29,175,000 28,977,996
Southern California Edison Company 6.56% 9/13/00 40,000,000 39,686,578
--------------
177,580,689
---------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $4,818,933,702) $4,818,933,702
---------------------------------------------------------------------------------------------------
TAXABLE MUNICIPALS (0.38%):
---------------------------------------------------------------------------------------------------
New York City G.O., FGIC Insured 6.65% 8/3/00 7,900,000 7,900,000
New York City G.O., FGIC Insured 6.65% 8/3/00 10,450,000 10,450,000
---------------------------------------------------------------------------------------------------
Total Taxable Municipals (cost:
$18,350,000) $ 18,350,000
---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$4,837,283,702) (b) $4,837,283,702
---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
13
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
GOVERNMENT & AGENCIES SECURITIES (90.52%):
---------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (28.93%)
6.42% 8/4/00 $ 15,000,000 $ 14,991,975
5.93% 10/10/00 1,090,000 1,089,549
6.49% 10/12/00 10,390,000 (d) 10,390,000
6.42% 10/25/00 15,000,000 14,772,625
6.07% 11/17/00 1,000,000 996,849
6.63% 4/10/01 5,000,000 5,000,000
7.23% 6/7/01 5,000,000 5,000,000
6.44% 7/17/01 25,000,000 (d) 24,985,616
-------------
77,226,614
-------------
FEDERAL HOME LOAN MORTGAGE CORPORATION (29.04%)
6.40% 8/1/00 10,547,000 10,547,000
6.39% 8/8/00 15,000,000 14,981,363
6.43% 8/15/00 10,000,000 9,975,014
6.42% 8/29/00 8,325,000 8,283,431
6.39% 9/5/00 10,000,000 9,937,875
6.40% 9/19/00 15,000,000 14,869,333
6.93% 3/1/01 4,000,000 3,964,387
6.94% 6/29/01 5,000,000 4,961,393
-------------
77,519,796
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (32.55%)
6.54% 8/7/00 17,000,000 16,997,856
6.52% 8/17/00 10,000,000 9,971,022
6.51% 8/24/00 10,000,000 9,958,408
6.53% 8/31/00 12,000,000 11,934,700
6.65% 9/14/00 10,000,000 9,980,700
6.42% 10/5/00 5,783,000 5,715,965
6.60% 10/10/00 160,000 159,711
6.62% 2/23/01 4,200,000 4,194,337
6.67% 3/16/01 8,000,000 7,992,974
6.44% 6/22/01 10,000,000 (d) 9,996,892
-------------
86,902,565
---------------------------------------------------------------------------------------------------
Total Government & Agencies Securities (cost: $241,648,975) $ 241,648,975
---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (8.95%)
---------------------------------------------------------------------------------------------------
Merrill Lynch, acquired 7/31/00
(collateralized by $25,230,000
Federal National Mortgage Association,
5.63%, 5/14/04)
(cost: $23,900,000) 6.55% 8/1/00 23,900,000 23,900,000
---------------------------------------------------------------------------------------------------
Total Repurchase Agreements (cost:
$23,900,000) $ 23,900,000
---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$265,548,975) (b) $ 265,548,975
---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
14
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
ALABAMA (0.38%)
Chatom Industrial Development Board,
Guaranty: National Rural Utilities
Cooperative Finance Corporation 4.15% 8/11/00 $ 1,600,000 $ 1,600,000
-------------
ALASKA (0.47%)
Anchorage G.O., MBIA Insured 4.60% 8/1/00 2,000,000 2,000,000
-------------
ARIZONA (4.47%)
City of Phoenix IDA (Del Mar Terrace),
Guaranty: FHLMC 4.20% 10/1/29 3,000,000 (e) 3,000,000
Glendale IDA, Senior Living Facilities
Revenue (Friendship Retirement
Project), LOC Wells Fargo 4.30% 12/1/14 1,110,000 (e) 1,110,000
Maricopa County PCR (El Paso Elect), LOC
Barclays Bank 4.40% 12/1/14 3,500,000 (e) 3,500,000
Maricopa County Pollution Control
Series 1994A (El Paso Elect), LOC
Barclays Bank 4.40% 7/1/14 11,450,000 (e) 11,450,000
-------------
19,060,000
-------------
ARKANSAS (0.56%)
Jonesboro Sales and Use Tax Revenue, FSA
Insured 4.02% 11/15/00 2,395,000 2,399,891
-------------
CALIFORNIA (0.25%)
Roseville Joint Unified High School
District, FGIC Insured 3.80% 8/1/00 1,060,000 1,060,000
-------------
COLORADO (2.39%)
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 Corporation), LOC
Norwest Bank 4.35% 7/1/22 1,025,000 (e) 1,025,000
Interstate South Metro District, LOC
Banque National de Paris 3.95% 11/1/00 3,265,000 3,265,000
-------------
10,190,000
-------------
DISTRICT OF COLUMBIA (0.39%)
District of Columbia G.O., Escrowed in
Governments 4.50% 6/1/01 1,635,000 1,641,513
-------------
FLORIDA (5.75%)
Dade County Public Improvement G.O., FSA
Insured 4.50% 6/1/01 2,000,000 2,043,274
Eustis State Health Facilities Authority
(Waterman Medical Center), LOC
SunTrust Bank 4.25% 12/1/15 5,445,000 (e) 5,445,000
Jacksonville Education Facilities
Authority (Jacksonville University
Project), LOC First Union 4.25% 10/1/22 4,000,000 (e) 4,000,000
Jacksonville Health Facility Authority
Hospital Revenue, MBIA Insured 4.20% 8/15/19 5,000,000 (e) 5,000,000
State Housing Finance Agency, Guaranty:
FHLMC 4.20% 12/1/05 4,000,000 (e) 4,000,000
State Housing Finance Agency
(Multifamily Revenue), LOC FHLMC 4.20% 12/1/05 2,200,000 (e) 2,200,000
Volusia County School District, FSA
Insured 3.85% 8/1/00 1,800,000 1,800,000
-------------
24,488,274
-------------
GEORGIA (3.54%)
DeKalb Private Hospital Authority
(Egleston Children's Hospital), LOC
SunTrust Bank 4.25% 12/1/28 3,500,000 (e) 3,500,000
Fulton County Development Authority
(Morehouse College), LOC Wachovia
Bank 4.25% 8/1/17 3,985,000 (e) 3,985,000
Fulton County Residential Home Care
Facilities (Lenbrook Square
Foundation), LOC Dresdner Bank 4.30% 1/1/18 3,000,000 (e) 3,000,000
Municipal Electric Authority of Georgia,
LOC ABN-AMRO 4.20% 1/1/26 4,623,000 (e) 4,623,000
-------------
15,108,000
-------------
ILLINOIS (9.36%)
Galesburg Revenue (Knox College), LOC
LaSalle National Bank 4.25% 7/1/24 2,000,000 (e) 2,000,000
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
15
<PAGE>
TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Galesburg Revenue (Knox College), LOC
LaSalle National Bank 4.30% 3/1/31 $ 6,500,000 (e) $ 6,500,000
Development Finance Authority (A.E.
Staley Manufacturing), LOC Union
Bank of Switzerland 4.20% 12/1/05 1,600,000 (e) 1,600,000
Development Finance Authority (Olin
Corporation Project), LOC Wachovia
Bank 4.30% 6/1/04 2,000,000 (e) 2,000,000
Development Finance Authority (Olin
Corporation Project), LOC Wachovia
Bank 4.30% 3/1/16 1,150,000 (e) 1,150,000
Development Finance Authority (Jewish
Elderly Council), LOC LaSalle
National Bank 4.25% 3/1/25 600,000 (e) 600,000
Education Facility Authority Revenue
Bond (Dominican University) 4.50% 7/11/01 1,000,000 1,004,505
Health Facilities Authority (Alexian
Brothers Medical Center), MBIA
Insured 4.05% 8/14/00 1,000,000 1,000,000
Health Facilities Authority (Alexian
Brothers Medical Center), MBIA
Insured 4.15% 10/5/00 1,850,000 1,850,000
Health Facilities Authority, MBIA
Insured 4.25% 9/14/00 3,750,000 3,750,000
Joliet Regional Port District Revenue
(Terminal Facilities Project;
Series 1985), Guaranty: Dow Chemical 4.35% 7/15/03 7,705,000 (e) 7,705,000
Lake Cook & McHenry Counties School
District, FGIC Insured 3.90% 12/1/00 1,000,000 1,008,441
Madison Macoupin Community College
District #536 (Lewis and Clark
Community College), FGIC Insured 4.03% 11/1/00 1,410,000 1,418,046
McLean County Public Building Commission
Revenue (Law and Justice Center)
G.O. 4.00% 11/1/00 1,000,000 1,007,556
Metropolitan Pier & Expo Authority II,
AMBAC Insured 4.13% 12/15/00 1,000,000 985,114
Springfield Community Improvement
Revenue (Reality Restoration
Project), Overcollateralized in
Governments 4.50% 12/1/15 3,000,000 (e) 3,000,000
State Toll Highway Revenue, MBIA Insured 4.20% 1/1/10 1,800,000 (e) 1,800,000
Will County Property Tax Lease Receipts,
FGIC Insured 4.00% 12/1/00 1,500,000 1,511,148
-------------
39,889,810
-------------
INDIANA (1.63%)
Fort Wayne Economic Development Revenue
(Georgetown Place Venture), LOC U.S.
Bank 4.30% 12/1/15 4,800,000 (e) 4,800,000
Health Facilities Finance Authority
Hospital Revenue (Sisters of St.
Francis), Prerefunded 3.68% 9/1/00 1,555,000 1,559,366
Health Facilities Financing Authority
(Capital Access Designated Pool
Program), LOC Comerica Bank 4.25% 4/1/13 600,000 (e) 600,000
-------------
6,959,366
-------------
IOWA (2.37%)
Higher Education Loan Authority Revenue
(Palmer Chiropractic), LOC Firstar
Bank N.A. 4.40% 4/1/27 7,200,000 (e) 7,200,000
Mount Vernon Private College Project
(Cornell College Project)
Series 1985, LOC U.S. Bank 4.25% 10/1/15 2,900,000 (e) 2,900,000
-------------
10,100,000
-------------
KANSAS (0.97%)
State Development Finance Authority
Revenue Bond (Shalom Obligated
Group), LOC LaSalle National Bank 4.30% 11/15/28 3,400,000 (e) 3,400,000
Wichita Temporary Improvement G.O. 4.40% 4/26/01 730,000 731,795
-------------
4,131,795
-------------
KENTUCKY (0.31%)
State Property and Buildings Community
Revenue (Project #50), Prerefunded
and Escrowed in Governments 4.23% 2/1/01 1,300,000 1,311,149
-------------
LOUISIANA (1.94%)
Ascension Parish, Parishwide School
District, MBIA Insured 4.48% 3/1/01 3,500,000 3,529,908
Public Facilities Authority Special
Insurance Revenue Assessment
Revenue, FSA Insured 4.10% 10/1/00 1,520,000 1,520,722
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOUISIANA (CONTINUED)
Public Facilities Authority Health Care
System, AMBAC insured 4.10% 11/17/00 $ 3,200,000 $ 3,200,000
-------------
8,250,630
-------------
MARYLAND (8.29%)
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric 4.25% 8/7/00 2,000,000 2,000,000
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric 4.25% 8/7/00 2,900,000 2,900,000
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric 4.25% 9/6/00 2,380,000 2,380,000
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric 4.20% 9/12/00 3,000,000 3,000,000
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric 4.05% 10/13/00 2,000,000 2,000,000
Montgomery County Housing Opportunities
(Oakwood Apartments), LOC FHLMC 4.20% 11/1/07 23,050,000 (e) 23,050,000
-------------
35,330,000
-------------
MASSACHUSETTS (0.42%)
Malden State G.O., FGIC Insured 4.36% 4/1/01 655,000 665,086
North Andover, MBIA Insured 4.00% 8/15/00 1,125,000 1,125,837
-------------
1,790,923
-------------
MICHIGAN (0.63%)
Midland County Economic Development,
Guaranty: Dow Chemical 4.30% 12/1/15 2,200,000 (e) 2,200,000
Washtenaw County Building Authority,
FGIC Insured 3.85% 9/1/00 500,000 500,183
-------------
2,700,183
-------------
MINNESOTA (6.11%)
Arden Hills Housing and Health Care
Facilities Revenue (Presbyterian
Homes), LOC U.S. Bank 4.30% 9/1/29 1,000,000 (e) 1,000,000
Beltrami County Environmental Control
Revenue (Northwood Panelboard
Project), LOC United Bank of
Switzerland 4.25% 12/1/21 700,000 (e) 700,000
City of Cohasset (MN Power & Light
Project), LOC ABN AMRO 4.30% 6/1/13 1,200,000 (e) 1,200,000
City of Duluth Economic Development
Authority, LOC Credit Local de
France 4.30% 6/1/19 1,500,000 (e) 1,500,000
Greenway ISD #316, LOC MN School
District Credit 3.83% 9/30/00 1,250,000 1,250,113
Minneapolis/St. Paul Housing and
Redevelopment (Children's Hospital),
FSA Insured 4.35% 8/15/25 6,000,000 (e) 6,000,000
Minneapolis CDA Tax Increment, MBIA
Insured 3.85% 9/1/00 1,000,000 1,002,588
St. Paul (Science Museum Project), LOC
U.S. Bancorp 4.25% 5/1/27 3,440,000 (e) 3,440,000
St. Paul Port Authority Tax Increment
Revenue (Westgate Office and
Industrial Center), LOC U.S. Bancorp 4.40% 2/1/15 9,400,000 (e) 9,400,000
St. Paul Housing and Redevelopment
Authority (Science Museum Project),
LOC U.S. Bancorp 4.20% 5/1/27 530,000 (e) 530,000
-------------
26,022,701
-------------
MISSISSIPPI (4.78%)
Business Finance Corporation
(Mississippi College Project), LOC
Bank of America 4.25% 2/1/09 6,400,000 (e) 6,400,000
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.20% 8/8/00 3,600,000 3,600,000
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.25% 9/7/00 1,700,000 1,700,000
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.15% 9/7/00 2,300,000 2,300,000
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.20% 9/12/00 1,800,000 1,800,000
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.20% 10/4/00 2,575,000 2,575,000
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSISSIPPI (CONTINUED)
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.25% 10/5/00 $ 2,000,000 $ 2,000,000
-------------
20,375,000
-------------
MISSOURI (4.49%)
Independence IDA (Groves & Graceland),
LOC Credit Local de France 4.30% 11/1/27 8,200,000 (e) 8,200,000
Kansas City IDA Hospital Revenue (Resh
Health Services), MBIA Insured 4.35% 10/15/14 1,100,000 (e) 1,100,000
St. Louis County Parkway School District
C-2 G.O. 4.40% 3/1/01 725,000 738,154
State Health and Education Facilities
Authority Revenue (St. Francis
Medical Center), LOC Credit Local de
France 4.30% 6/1/26 6,490,000 (e) 6,490,000
State Health and Education Facilities
Authority, LOC Camdenton School
District 3.75% 9/19/00 2,625,000 2,626,685
-------------
19,154,839
-------------
MONTANA (2.14%)
State Health Facilities Authority
Revenue Bonds Series A (Health Care
Pooled Loan Program), FGIC Insured 4.25% 12/1/15 9,105,000 (e) 9,105,000
-------------
NEW HAMPSHIRE (0.47%)
State Health and Education Facilities
(Crotched Mtn. Rehab Center),
Guaranty: Crotched Mtn. Foundation 4.80% 5/17/01 2,000,000 2,010,562
-------------
NEW JERSEY (0.52%)
Economic Development Authority (Volvo
America), LOC Credit Suisse 4.68% 12/1/04 1,200,000 (e) 1,200,000
Education Facilities Authority Revenue
(Community College Capital Project
Fund), AMBAC Insured 5.00% 9/1/00 1,000,000 1,000,961
-------------
2,200,961
-------------
NEW YORK (0.63%)
Nassau County G.O., FGIC Insured 4.30% 9/1/00 700,000 700,472
New York City G.O., LOC Morgan Guaranty 4.40% 8/15/19 2,000,000 (e) 2,000,000
-------------
2,700,472
-------------
NORTH CAROLINA (5.79%)
Educational Facility Finance Agency
(Lenoir-Rhyne College), LOC Wachovia
Bank 4.25% 5/1/23 7,500,000 (e) 7,500,000
State Medical Care Commission Hospital
(Angel Medical Care Center), LOC
First Union 4.25% 10/1/16 3,500,000 (e) 3,500,000
State Medical Center Commission Revenues
(Carol Woods Project), LOC Bank of
America 4.30% 4/1/21 5,800,000 (e) 5,800,000
State Medical Center Commission Revenues
(Carolina Meadows Project), LOC
Wachovia Bank 4.30% 6/1/28 3,960,000 (e) 3,960,000
University of North Carolina Revenue,
LOC Wachovia Bank 4.25% 11/1/16 3,900,000 (e) 3,900,000
-------------
24,660,000
-------------
OHIO (4.94%)
State Building Authority, Prerefunded
and Escrowed in Governments 4.00% 9/1/00 2,270,000 2,320,850
State Highway Capital Improvement, G.O. 4.50% 5/1/01 2,900,000 2,889,486
State Housing Finance Agency Multifamily
Housing Revenue (Kenwood
Retirement), LOC Morgan Guaranty 4.00% 12/1/15 4,600,000 (e) 4,600,000
State Water Development Authority
(Cleveland Electric), FGIC Insured 4.00% 8/10/00 5,000,000 5,000,000
Warren County Ohio Health Care Facility
(Otterbein Homes), LOC Fifth Third
Bank 4.30% 7/1/23 6,258,000 (e) 6,258,000
-------------
21,068,336
-------------
OKLAHOMA (0.23%)
Garfield County Industrial Authority
PCR, Guaranty: Oklahoma Gas &
Electric 3.38% 1/1/25 1,000,000 (e) 1,000,000
-------------
1,000,000
-------------
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OREGON (0.24%)
Portland Hospital Facilities Authority
(Legacy Health Systems), AMBAC
Insured 4.45% 5/1/01 $ 1,000,000 $ 1,013,371
-------------
PENNSYLVANIA (6.02%)
Allegheny County IDA, LOC Dresdner Bank 4.30% 7/1/27 4,200,000 (e) 4,200,000
Allegheny County IDA (Longwood at
Oakmont Project), LOC Dresdner Bank 4.30% 7/1/27 3,100,000 (e) 3,100,000
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 4.25% 12/1/20 1,600,000 (e) 1,600,000
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 4.25% 12/1/20 1,200,000 (e) 1,200,000
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 4.25% 12/1/20 1,400,000 (e) 1,400,000
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 4.25% 12/1/20 1,400,000 (e) 1,400,000
Quakertown Hospital Authority, LOC PNC
Bank 4.35% 7/1/05 8,500,000 (e) 8,500,000
Quakertown Hospital Authority, LOC PNC
Bank 4.35% 7/1/26 1,200,000 (e) 1,200,000
State Higher Education Facilities
(Medical College), Prerefunded 4.33% 3/1/01 2,000,000 2,071,842
York County Solid Waste and Refuse
Authority G.O., FGIC Insured 4.06% 12/1/00 1,000,000 1,003,033
-------------
25,674,875
-------------
SOUTH CAROLINA (3.14%)
Jobs Economic Development Authority
(Catholic Diocese), LOC Bank of
America 4.30% 9/1/16 4,700,000 (e) 4,700,000
State Housing Finance and Development
Authority (Oakridge), LOC First
Union Bank 4.25% 7/1/07 2,070,000 (e) 2,070,000
York County PCR, Guaranty: Duke Power
Co. 4.30% 8/16/00 2,600,000 2,600,000
York County PCR, Guaranty: Duke Power
Co. 4.30% 8/16/00 2,800,000 2,800,000
York County PCR, Guaranty: Duke Power
Co. 4.20% 11/16/00 1,200,000 1,200,000
-------------
13,370,000
-------------
TENNESSEE (2.82%)
City of Chattanooga G.O. 4.11% 11/1/00 1,000,000 1,002,156
Montgomery County Public Building
Authority, LOC NationsBank 4.25% 7/1/15 5,200,000 (e) 5,200,000
Nashville and Davidson County Health and
Education Facility (Meharry Medical
College Project), LOC NationsBank 4.25% 8/1/18 5,820,000 (e) 5,820,000
-------------
12,022,156
-------------
TEXAS (4.25%)
Austin Independent School District,
Texas PSF Guaranty 3.93% 8/1/00 2,000,000 2,000,000
Austin Utility System Revenue,
Prerefunded and Escrowed in
Governments 4.35% 5/15/01 1,000,000 1,011,577
Austin Utility System Revenue,
Prerefunded and Escrowed in
Governments 4.52% 5/15/01 1,000,000 1,026,435
Brazos River Harbor Navigation District,
Guaranty: Dow Chemical 4.35% 8/1/22 2,100,000 (e) 2,100,000
City of Waco Certificate of Obligation,
FGIC Insured 4.30% 2/1/01 785,000 791,487
Denison ISD Capital Appreciation, PSF
Guaranty 3.90% 8/1/00 750,000 750,000
Houston Water & Sewer Systems, AMBAC
Insured 4.00% 12/1/00 1,000,000 987,058
Round Rock ISD G.O., MBIA Insured 3.70% 8/15/00 1,270,000 1,272,327
South Texas Water Authority, FSA Insured 3.80% 9/1/00 1,500,000 1,500,244
State of Texas G.O. 4.55% 10/1/00 1,000,000 1,001,312
State Public Finance Authority, MBIA
Insured 4.32% 2/1/01 1,640,000 1,658,910
Tarrant County Housing Finance
Corporation, MFHR - Single Family
Apartments Project, LOC SunTrust
Bank 4.35% 11/1/17 4,025,000 (e) 4,025,000
-------------
18,124,350
-------------
UTAH (1.17%)
State Board of Regents Student Loan
Revenue Bonds, AMBAC Insured 4.20% 11/1/00 5,000,000 5,000,000
-------------
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA (1.55%)
Alexandria IDA (Pooled Income Program),
LOC Bank of America 4.25% 7/1/26 $ 6,605,000 (e) $ 6,605,000
-------------
WASHINGTON (3.92%)
Clark County School District # 37,
Vancouver, Prerefunded and Escrowed
in Governments 4.09% 12/1/00 1,000,000 1,009,398
Port of Seattle IDR Airport Revenue
(Alaska Air), LOC Bank of New York 4.40% 12/1/09 2,800,000 (e) 2,800,000
State Economic Development Revenue,
(Pioneer Human Services), LOC U.S.
Bank 4.40% 9/1/18 3,000,000 (e) 3,000,000
State Health Care Facilities Authority
(Fred Hutchinson), LOC Morgan
Guaranty 4.35% 1/1/18 1,300,000 (e) 1,300,000
State Housing Finance Commission
(Emerald Heights), LOC U.S. Bank 4.30% 1/1/21 2,100,000 (e) 2,100,000
State Housing Finance Commission
(Rockwood Retirement Home), LOC
Wells Fargo 4.40% 1/1/30 4,100,000 (e) 4,100,000
State of Washington G.O., Prerefunded 3.55% 8/1/00 2,400,000 2,400,000
-------------
16,709,398
-------------
WEST VIRGINIA (0.40%)
Marshall County Revenue (Bayer Project),
Guaranty: Bayer Corporation 4.35% 3/1/09 1,700,000 (e) 1,700,000
-------------
WISCONSIN (1.64%)
Lacrosse IDA (Dairyland Power), AMBAC
Insured 4.25% 9/1/14 1,445,000 (e) 1,445,000
School District Cash Flow Management
Program, Guaranty: Fond du Lac
School District 3.80% 9/28/00 1,350,000 1,350,000
School District Cash Flow Management
Program (Aid Anticipation) 4.00% 11/1/00 3,000,000 3,000,000
State Health and Education Facilities
Authority Revenue (St. Johns United
Church Project), LOC Firstar Bank 4.30% 2/1/30 1,200,000 (e) 1,200,000
-------------
6,995,000
-------------
WYOMING (0.02%)
Platte County PCR, LOC National Rural
Utilities Cooperative Finance
Corporation 4.35% 7/1/14 100,000 (e) 100,000
---------------------------------------------------------------------------------------------------
Total Investments in Securities (cost:
$423,623,555) (b) $ 423,623,555
---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
20
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) 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 (99.58%):
---------------------------------------------------------------------------------------------------
BANKS - DOMESTIC (13.47%)
Branch Banking & Trust Company 7.05% 11/30/00 $ 15,000,000 (d) $ 15,012,781
Comerica Bank 6.58% 6/7/01 10,000,000 (d) 9,997,452
First Union Bank 6.63% 5/18/01 10,000,000 (d) 10,000,000
LaSalle Bank, Chicago 7.02% 11/20/00 5,000,000 5,000,088
Old Kent Bank 6.63% 10/24/00 4,000,000 4,000,000
SunTrust Bank 6.64% 10/11/00 5,000,000 4,999,893
U.S. Bank N.A. 6.70% 3/15/01 2,500,000 2,495,157
--------------
51,505,371
--------------
BANKS - OTHER (17.04%)
Bank of Nova Scotia 6.68% 9/20/00 15,000,000 15,000,000
Dexia Credit Local de France 6.52% 10/16/00 11,500,000 11,341,709
Rabobank Nederland 6.59% 1/12/01 5,000,000 5,000,000
Rabobank Nederland 6.64% 2/14/01 2,000,000 1,999,610
Royal Bank of Canada 6.20% 10/10/00 19,500,000 19,264,917
United Bank of Switzerland A.G. 6.93% 12/6/00 6,100,000 6,090,473
United Bank of Switzerland A.G. 6.28% 12/11/00 6,500,000 6,498,509
--------------
65,195,218
--------------
CHEMICALS (3.88%)
Henkel Corporation 6.42% 8/2/00 14,825,000 (c) 14,822,356
--------------
CONGLOMERATES (4.93%)
Fortune Brands Inc. 6.50% 9/12/00 19,000,000 (c) 18,855,917
--------------
ENTERTAINMENT (4.06%)
Carnival Corporation 6.53% 10/24/00 14,750,000 14,525,259
Walt Disney Company 6.70% 3/30/01 1,000,000 998,038
--------------
15,523,297
--------------
FINANCIAL - AUTO (5.61%)
DaimlerChrysler North American Holdings 6.97% 3/9/01 1,500,000 1,494,444
Ford Motor Credit Corporation 6.54% 8/7/00 20,000,000 19,978,200
--------------
21,472,644
--------------
FINANCIAL - AVIATION (0.88%)
International Lease Finance Corporation 6.52% 10/12/00 3,415,000 3,370,468
--------------
FINANCIAL - DIVERSIFIED BUSINESS (12.19%)
Associates Corporation of North America 6.64% 8/1/00 13,900,000 13,900,000
General Electric Capital Corporation 6.55% 8/14/00 16,020,000 15,982,108
Goldman Sachs Group 7.00% 2/15/01 2,500,000 2,487,987
Merrill Lynch & Company 6.38% 10/17/00 380,000 380,227
Merrill Lynch & Company 6.86% 3/29/01 10,000,000 10,000,000
Merrill Lynch & Company 6.91% 3/30/01 2,900,000 2,900,000
Norwest Financial 7.03% 3/19/01 1,000,000 990,742
--------------
46,641,064
--------------
FINANCIAL - DIVERSIFIED BUSINESS, ASSET-BACKED (15.14%)
Asset Securitization Cooperative
Corporation 6.48% 9/26/00 800,000 (c) 791,936
Barton Capital Corporation 6.51% 8/2/00 14,685,000 (c) 14,682,344
Preferred Receivables Funding
Corporation 6.51% 8/21/00 16,635,000 (c) 16,574,837
Receivables Capital Corporation 6.51% 8/11/00 17,890,000 (c) 17,857,649
Thunder Bay Funding 6.58% 8/3/00 8,000,000 (c) 7,997,076
--------------
57,903,842
--------------
FOOD AND BEVERAGE (5.21%)
Bestfoods 6.50% 8/30/00 19,000,000 (c) 18,900,514
General Mills 6.27% 12/15/00 1,000,000 1,009,876
--------------
19,910,390
--------------
HOUSEHOLD PRODUCTS (2.48%)
Newell Rubbermaid, Inc. 6.55% 8/21/00 9,530,000 (c) 9,495,321
--------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
21
<PAGE>
INSTITUTIONAL PRIME MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER & OTHER CORPORATE OBLIGATIONS (CONTINUED)
---------------------------------------------------------------------------------------------------
MANUFACTURING (10.68%)
Caterpillar Financial Services Inc. 6.25% 11/1/00 $ 3,500,000 $ 3,490,134
Caterpillar Financial Services Inc. 6.88% 5/22/01 7,000,000 (d) 7,002,199
Honeywell International 6.51% 10/11/00 18,625,000 18,385,871
United Technologies Corporation 6.49% 8/10/00 12,000,000 (c) 11,980,530
--------------
40,858,734
--------------
PRINTING & PUBLISHING (3.80%)
Knight-Ridder 6.56% 8/29/00 14,600,000 (c) 14,525,508
--------------
TELECOMMUNICATIONS (0.21%)
Motorola Inc. 6.49% 9/28/00 800,000 791,635
---------------------------------------------------------------------------------------------------
Total Commercial Paper & Other Corporate Obligations (cost: $380,871,765) $ 380,871,765
---------------------------------------------------------------------------------------------------
Total Investment in Securities (cost:
$380,871,765) (b) $ 380,871,765
---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
22
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES
JULY 31, 2000
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
(Percentages of each investment category relate to total net assets.)
ALASKA (0.48%)
North Slope, Borough, MBIA Insured 4.75% 6/30/01 $ 750,000 $ 756,247
-------------
FLORIDA (6.38%)
Housing Finance Agency, Guaranty: FHLMC 4.20% 12/1/05 1,000,000 (e) 1,000,000
Housing Finance Agency (Crossings
Multifamily), Guaranty: FHLMC 4.20% 2/1/08 8,140,000 (e) 8,140,000
Volusia County School District, FSA
Insured 4.50% 6/1/01 1,000,000 1,006,382
-------------
10,146,382
-------------
GEORGIA (2.83%)
De Kalb Private Hospital Authority, LOC
SunTrust Bank 4.25% 3/1/24 1,700,000 (e) 1,700,000
Fulton County Residential Care Facility
(Lenbrook Square Foundation), LOC
Dresdner Bank 4.30% 1/1/18 2,800,000 (e) 2,800,000
-------------
4,500,000
-------------
ILLINOIS (7.03%)
Educational Facility Authority (Cultural
Pool Program), LOC Bank One 4.20% 12/1/25 3,780,000 (e) 3,780,000
Educational Facility Authority
(Dominican University) 4.50% 7/11/01 890,000 894,009
Health Facilities Authority, LOC Morgan
Guaranty 4.30% 9/12/00 1,000,000 1,000,000
Health Facilities Authority, LOC Morgan
Guaranty 4.30% 9/13/00 1,000,000 1,000,000
Joliet Regional Port District Bonds
(Terminal Facility Project),
Guaranty: Dow Chemical 4.35% 7/15/03 4,505,000 (e) 4,505,000
-------------
11,179,009
-------------
INDIANA (7.37%)
Health Facilities Financing Authority,
LOC NBD Bank 4.25% 11/1/20 4,000,000 (e) 4,000,000
Health Facilities Financing Authority,
LOC First Chicago 4.25% 1/1/22 2,500,000 (e) 2,500,000
Health Facilities Financing Authority
(Capital Access Designated Pool
Program), LOC Comerica Bank 4.25% 1/1/12 2,500,000 (e) 2,500,000
Health Facilities Financing Authority
(Capital Access Designated Pool
Program), LOC Comerica Bank 4.25% 4/1/13 200,000 (e) 200,000
Hospital Equipment Financing Authority,
MBIA Insured 4.25% 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 1,020,000
-------------
11,720,000
-------------
IOWA (3.65%)
Iowa City G.O. 4.68% 6/1/01 705,000 706,773
Finance Authority Revenue (Burlington
Medical Center), FSA Insured 4.35% 6/1/27 3,100,000 (e) 3,100,000
Finance Authority Revenue (Diocese of
Sioux City), LOC Wells Fargo 4.30% 3/1/19 2,000,000 (e) 2,000,000
-------------
5,806,773
-------------
KANSAS (3.96%)
Riley County Sales Tax Revenue, FSA
Insured 4.00% 9/1/00 400,000 400,000
State Development Finance Authority
(Shalom Obligated Group), LOC
LaSalle National Bank 4.30% 11/15/28 5,900,000 (e) 5,900,000
-------------
6,300,000
-------------
KENTUCKY (0.63%)
State Property and Buildings Community
Revenue (Project #50), Escrowed in
Governments 4.23% 2/1/01 1,000,000 1,008,576
-------------
LOUISIANA (3.70%)
Ascension Parish, Parishwide School
District, MBIA Insured 4.48% 3/1/01 1,500,000 1,512,818
Public Facilities Authority Health Care
System, AMBAC Insured 4.30% 11/17/00 1,300,000 1,300,000
State G.O., Prerefunded and Escrowed in
Governments 3.95% 9/1/00 3,000,000 3,067,328
-------------
5,880,146
-------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
23
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
MATURITY PRINCIPAL MARKET
NAME OF ISSUER (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND (2.45%)
Anne Arundel County Port Facilities
Revenue, Guaranty: Baltimore Gas &
Electric Company 4.15% 9/7/00 $ 2,000,000 $ 2,000,000
Montgomery County Housing Opportunities
Community Multifamily Revenue
(Oakwood Apartments), LOC FHLMC 4.20% 11/1/07 1,900,000 (e) 1,900,000
-------------
3,900,000
-------------
MICHIGAN (0.19%)
State Strategic Fund, LOC Barclays Bank 4.25% 9/1/30 300,000 (e) 300,000
-------------
MINNESOTA (6.05%)
Beltrami County Environmental Control
Revenue (Northwood Panelboard
Project) LOC United Bank of
Switzerland 4.25% 12/1/21 1,000,000 (e) 1,000,000
City of Arden Hills Housing and Health
Care Revenue (Presbyterian Homes),
LOC U.S. Bancorp 4.30% 9/1/29 1,300,000 (e) 1,300,000
City of Cohasset (MN Power & Light
Project), LOC ABN/AMRO 4.30% 6/1/20 3,705,000 (e) 3,705,000
St. Paul Housing and Redevelopment
Authority (Science Museum of MN
Project), LOC US Bancorp 4.25% 5/1/27 3,610,000 (e) 3,610,000
-------------
9,615,000
-------------
MISSISSIPPI (2.20%)
Claiborne County PCR, Guaranty: National
Rural Utilities Cooperative Finance
Corporation 4.05% 8/10/00 3,500,000 3,500,000
-------------
MISSOURI (5.03%)
Kansas City IDA Hospital Revenue (Resh
Health Services), MBIA Insured 4.35% 10/15/14 3,500,000 (e) 3,500,000
Kansas City IDA Hospital Revenue Bond
(Resh Health Services), MBIA Insured 4.35% 4/15/15 2,000,000 (e) 2,000,000
State Health & Education Facilities
Authority (St. Francis Medical
Center), LOC Credit Local de France 4.30% 6/1/26 2,500,000 (e) 2,500,000
-------------
8,000,000
-------------
NEW HAMPSHIRE (0.43%)
Health & Educational Facilities
Authority (Crotched Mountain Rehab
Center), Guaranty: Crotched Mountain
Foundation 4.80% 5/17/01 685,000 688,617
-------------
NEW YORK (1.80%)
State Housing Revenue, Prerefunded and
Escrowed in Governments 4.20% 11/1/00 2,830,000 2,857,057
-------------
NORTH CAROLINA (2.45%)
Beaufort County, LOC United Bank of
Switzerland 4.00% 9/1/00 1,600,000 1,600,391
State Medical Care Commission Revenue,
LOC First Union Bank 4.30% 10/1/13 1,500,000 (e) 1,500,000
State Medical Center Commission Revenues
(Carol Woods Project), LOC Bank of
America 4.30% 4/1/21 800,000 (e) 800,000
-------------
3,900,391
-------------
OHIO (3.95%)
State Housing Finance Agency Multifamily
Housing Revenue 4.00% 12/1/15 900,000 (e) 900,000
(Kenwood Congregate), LOC Morgan
Guaranty Warren County Health Care
Facility (Otterbein Homes), LOC
Fifth Third Bank 4.30% 7/1/23 5,378,000 (e) 5,378,000
-------------
6,278,000
-------------
PENNSYLVANIA (11.12%)
Allegheny County IDA (Longwood at
Oakmont Inc Project), LOC Dresdner
Bank 4.30% 7/1/27 3,000,000 (e) 3,000,000
Allegheny County IDA (Longwood at
Oakmont Inc Project), LOC Dresdner
Bank 4.30% 7/1/27 1,015,000 (e) 1,015,000
Allegheny County IDA (Longwood at
Oakmont Inc Project), LOC Dresdner
Bank 4.30% 7/1/27 1,000,000 (e) 1,000,000
</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 (F) YIELD DATE AMOUNT VALUE (A)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
Berks County G.O., Prerefunded and
Escrowed in Governments 3.90% 11/15/00 $ 725,000 $ 746,147
Delaware County Hospital Revenue Bonds
(Chester Medical Center),
Prerefunded and Escrowed in
Governments 4.05% 12/15/00 750,000 774,111
Delaware Valley Regional Finance
Authority, LOC Credit Suisse 4.25% 12/1/20 100,000 (e) 100,000
State Higher Education Facilities
Authority Revenue (Medical College),
Prerefunded 4.33% 3/1/01 1,000,000 1,035,921
Quakertown Hospital Authority, LOC PNC
Bank 4.30% 7/1/05 5,000,000 (e) 5,000,000
Washington County (Higher Education Pool
Lease), LOC First Union Bank 4.30% 11/1/05 5,000,000 (e) 5,000,000
-------------
17,671,179
-------------
SOUTH CAROLINA (1.76%)
York County PCR, Guaranty: Duke Power
Co. 4.30% 8/16/00 1,800,000 1,800,000
York County PCR, Guaranty: Duke Power
Co. 4.20% 11/16/00 1,000,000 1,000,000
-------------
2,800,000
-------------
TENNESSEE (1.50%)
Davidson County, LOC Bank of America 4.25% 10/1/26 800,000 (e) 800,000
Nashville and Davidson County Health and
Education Facility (Meharry Medical
College Project), LOC Nations Bank 4.25% 8/1/18 1,580,000 (e) 1,580,000
-------------
2,380,000
-------------
TEXAS (4.14%)
Austin Independent School District,
Texas PSF Guaranty 3.93% 8/1/00 2,275,000 2,275,000
Brazos River Harbor Navigation District,
Guaranty: Dow Chemical Corporation 4.35% 8/1/22 2,300,000 (e) 2,300,000
Port Houston Authority Harris County
G.O., MBIA Insured 4.00% 10/1/00 500,000 501,110
Tarrant County Tax Water Refunding
Revenue, Escrowed in Governments 4.40% 3/1/01 1,000,000 1,007,574
State of Texas G.O. 4.55% 10/1/00 500,000 500,656
-------------
6,584,340
-------------
WASHINGTON (10.19%)
Port of Anacortes IDR, Guaranty: Texaco
Inc. 4.15% 8/9/00 4,000,000 4,000,000
State Economic Development Revenue
(Pioneer Human Services), LOC U.S.
Bank 4.40% 9/1/18 1,000,000 (e) 1,000,000
State Health Care Facilities Authority
(Fred Hutchinson Center), LOC Morgan
Guaranty 4.35% 1/1/18 1,500,000 (e) 1,500,000
State of Washington Housing Finance
Commission (Emerald Heights), LOC
U.S. Bank 4.30% 1/1/21 6,600,000 (e) 6,600,000
State of Washington Housing Finance
Commission (Rockwood Retirement
Home), LOC Wells Fargo 4.40% 1/1/30 3,100,000 (e) 3,100,000
-------------
16,200,000
-------------
WEST VIRGINIA (2.53%)
Marshall County (Bayer Project),
Guaranty: Bayer Corporation 4.35% 3/1/09 3,500,000 (e) 3,500,000
State Water Development Authority,
Prerefunded and Escrowed in
Governments 4.36% 11/1/00 500,000 513,946
-------------
4,013,946
-------------
WISCONSIN (4.91%)
LaCrosse IDA (Dairyland Power
Cooperative), AMBAC Insured 4.25% 9/1/14 4,500,000 (e) 4,500,000
LaCrosse IDA (Dairyland Power
Cooperative), AMBAC Insured 4.25% 2/1/15 1,800,000 (e) 1,800,000
State School District Cash Flow
Management Program (Aid
Anticipation) 4.00% 11/1/00 1,500,000 1,500,000
-------------
7,800,000
-------------
WYOMING (2.77%)
Platte County PCR, LOC National Rural
Utilities Cooperative Finance
Corporation 4.35% 7/1/14 4,400,000 (e) 4,400,000
---------------------------------------------------------------------------------------------------
Total Investments in Securities (cost:
$158,185,663) (b) $ 158,185,663
---------------------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
25
<PAGE>
INSTITUTIONAL TAX FREE MONEY MARKET FUND
INVESTMENTS IN SECURITIES (CONTINUED)
NOTES TO INVESTMENTS IN SECURITIES:
(a) Securities are valued in accordance with procedures described in note 2
to the financial statements.
(b) 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 July 31, 2000.
(e) Interest rate varies to reflect current market conditions; rate shown is
the effective rate on July 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
CDA - Community Development Agency
FGIC - Financial Guaranty Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FSA - Financial Security Assurance Corporation
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
ISD - Independent School District
LOC - Letter of Credit
MBIA - Municipal Bond Insurance Association
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
</TABLE>
26
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Great Hall Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments in securities, of Prime Money Market Fund, U.S.
Government Money Market Fund, Tax-Free Money Market Fund, Institutional Prime
Money Market Fund and Institutional Tax-Free Money Market Fund (funds within
Great Hall Investment Funds, Inc.) as of July 31, 2000 and the related
statements of operations for the year then ended and the statements of changes
in net assets for each of the years in the two-year period ended July 31, 2000
for the Prime, U.S. Government, Tax-Free, and Institutional Prime Money Market
Funds and for the year ended July 31, 2000 and the period from September 23,
1998 (commencement of operations) to July 31, 1999 for Institutional Tax-Free
Money Market Fund and the financial highlights for each of the years in the
five-year period ended July 31, 2000 for the Prime, U.S. Government and Tax-Free
Money Market Funds and for each of the years in the two-year period ended
July 31, 2000 and the period from August 11, 1997 (commencement of operations)
to July 31, 1998 for the Institutional Prime Money Market Fund and for the year
ended July 31, 2000 and the period from September 23, 1998 to July 31, 1999 for
Institutional Tax-Free Money Market Fund. These financial statements and the
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Investment securities held in custody
are confirmed to us by the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights referred
to above present fairly, in all material respects, the financial position of
Prime Money Market Fund, U.S. Government Money Market Fund, Tax-Free Money
Market Fund, Institutional Prime Money Market Fund and Institutional Tax-Free
Money Market Fund at July 31, 2000, and the results of their operations, changes
in their net assets and the financial highlights for the periods stated in the
first paragraph above, in conformity with accounting principles generally
accepted in the United States of America.
KPMG LLP
Minneapolis, Minnesota
September 1, 2000
27
<PAGE>
FEDERAL TAX INFORMATION
Information for federal income tax purposes is presented as an aid for
shareholders in reporting the distributions shown below:
Distributions paid during the fiscal year ended July 31, 2000:
<TABLE>
<CAPTION>
PRIME U.S. GOV'T TAX-FREE INST'L PRIME INST'L TAX-FREE
MONEY MONEY MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
--------------------------------------------------------------------------------------------------------
PAYABLE DATE PER SHARE PER SHARE PER SHARE PER SHARE PER SHARE
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
August 31................ $0.00392 $0.00386 $0.00222 $0.00425 $0.00236
September 30............. 0.00391 0.00381 0.00236 0.00423 0.00252
October 31............... 0.00417 0.00405 0.00243 0.00454 0.00255
November 30.............. 0.00416 0.00404 0.00251 0.00450 0.00266
January 2................ 0.00474 0.00456 0.00303 0.00510 0.00316
January 31............... 0.00421 0.00407 0.00225 0.00448 0.00245
February 29.............. 0.00423 0.00418 0.00242 0.00445 0.00261
April 2.................. 0.00486 0.00489 0.00286 0.00512 0.00304
April 30................. 0.00420 0.00421 0.00262 0.00443 0.00275
May 31................... 0.00483 0.00480 0.00347 0.00508 0.00363
July 2................... 0.00523 0.00517 0.00320 0.00551 0.00347
July 31.................. 0.00481 0.00478 0.00269 0.00503 0.00289
-------- -------- -------- -------- --------
$0.05327 $0.05242 $0.03206 $0.05672 $0.03409
======== ======== ======== ======== ========
</TABLE>
SOURCE OF DISTRIBUTIONS
During the period ending July 31, 2000, 100% of the Tax-Free Money Market Fund
and Institutional Tax-Free Money Market Fund distributions were derived from
interest on municipal securities and qualify as exempt interest dividends for
federal tax purposes.
FEDERAL TAXATION
Exempt interest dividends are exempt from federal income taxes and should not be
included in shareholders' gross income but need to be reported on the income tax
return for information purposes. Each shareholder should consult a tax adviser
about reporting this income for state and local tax purposes. By early February
2001, the Funds will provide the shareholders with information regarding the
percentage of distributions exempt from federal income taxes and a breakdown
setting forth states from which income was earned.
Income distributions for the Prime Money Market Fund, U.S. Government Money
Market Fund, and Institutional Prime Money Market Fund are taxable as ordinary
dividend income and none qualify for the corporate dividends received deduction.
Each shareholder should consult a tax adviser about reporting this income for
state and local tax purposes. By early February 2001, each shareholder will
receive a breakdown of income earned by investment category on a calendar-year
basis.
28
