<PAGE>
[GRAPHIC OMITTED - SHIELD]
ABN AMRO FUNDS
[GRAPHIC OMITTED - GLOBE]
SEMI-ANNUAL
REPORT
JUNE 30, 2000
INSTITUTIONAL SHARE CLASS
INSTITUTIONAL SERVICE SHARE CLASS
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders............................ 2
Schedule of Investments .......................... 4
Statement of Assets and Liabilities .............. 6
Statement of Operations .......................... 7
Statement of Changes in Net Assets................ 8
Financial Highlights ............................. 9
Notes to Financial Statements .................... 10
INSTITUTIONAL MONEY MARKET FUNDS
Institutional Prime Money Market Fund(US)
Institutional Treasury Money Market Fund(US)*
Institutional Government Money Market Fund(US)*
-------------------------------------------------------------------
NOT FDIC INSURED (BULLET) NO BANK GUARANTEE (BULLET) MAY LOSE VALUE
-------------------------------------------------------------------
ABN AMRO IS A REGISTERED SERVICE MARK OF ABN AMRO
HOLDING N.V., THE ULTIMATE PARENT OF ABN AMRO ASSET
MANAGEMENT (USA) INC., THE INVESTMENT ADVISOR TO
THE ABN AMRO FUNDS. ALL RIGHTS RESERVED. ABN AMRO
FUNDS ARE DISTRIBUTED BY PROVIDENT DISTRIBUTORS, INC.
WHICH IS NOT A BANK AFFILIATE.
-------------------------------------------------------------------
* As of the date of this semi-annual report, these Funds had not yet commenced
operations.
<PAGE>
LETTER TO SHAREHOLDERS
Dear Shareholder:
In the first half of 2000, the world's regions continued evolving into an
interwoven global economy, a process known as globalization. ABN AMRO's global
network of on-the-ground professionals is all the more important in this period
of globalization as events in other parts of the world affect investors here at
home.
Likewise, globalization means actions in the U.S. tend to have tremendous
effects on world economies. Two major events in the first part of 2000 - U.S.
interest rate increases and the downturn in the U.S. stock market - reverberated
around the world.
The Federal Open Market Committee (the "Fed") continued its strategy of monetary
tightening in the new year in an attempt to engineer a "soft landing" in the
U.S. economy. These tightenings brought the total number of interest rate
increases to six in the one year period since June 30, 1999. At the end of the
first half of 2000, there were some signs of an economic slowdown, but it
remains to be seen whether the interest rate increases will produce the intended
effect.
Other central banks, as well as financial markets, all over the world reacted to
the Fed's interest rate increases. The major U.S. stock market indexes slid into
bear market territory in the six-month period after a record run-up in 1999.
Investors who had become accustomed to constant market upswings with very few
corrections learned the true meaning of Federal Reserve Chairman Alan
Greenspan's cautionary phrase "irrational exuberance."
As a result of extreme volatility in the equity markets, the importance of
diversification returned to the forefront. Traditionally defensive sectors such
as real estate, food and insurance proved to be safer harbors in stormy markets.
And many investors returned to instruments like bonds and money market funds in
search of relative safety.
It was amid this environment that ABN AMRO introduced its Institutional Prime
Money Market Fund(US), which produced a 6.40% 7-day yield as of June 30, 2000.
This Fund marks ABN AMRO's first liquidity management vehicle for corporate
clients.
The introduction of the Institutional Prime Money Market Fund(US) fits into the
organizational strategies we have implemented to help enhance performance and
align our resources to focus on global growth. We also added to the credit
analyst staff to continue to build our premier cash management team.
Specifically, the three areas we concentrated on were:
(BULLET) Cash management (as outlined above)
(BULLET) Equities
(BULLET) Distribution
In late 1999, we designed and put into practice a rigorous investment process
that best uses the strengths of the firm. We formed a partnership with two
sub-advisers, Delaware Management Company and Mellon Equity Associates, LLP, to
allow us to concentrate on global growth. We also enhanced our service levels
and expanded the Funds' distribution network to include the major national
mutual fund supermarkets, where we are now available to thousands of investors
and financial advisers.
2
<PAGE>
JUNE 30, 2000 (Unaudited)
We have already experienced some positive results of our strategy implementation
in the form of better overall equity performance and the addition of new assets
to our fund family. As we look to the next six months, we will continue to
closely monitor the processes we have put in place regarding investment
management, client service and partnership with our two sub-advisers. We will
explore other opportunities to continue to improve investment performance.
We are absolutely committed to our consistent, disciplined investment approach,
which we believe is the hallmark of our investment strategy. We plan to continue
this commitment throughout the remainder of 2000 and beyond.
Sincerely,
/S/ SIGNATURE - RANDELL C.HAMPTON
Randall C. Hampton
President
ABN AMRO Funds
--------------------------------------------------------------------------------
Cumulative Return
As of June 30, 2000 Since Inception
7-Day Yield December 28, 1999
--------------------------------------------------------------------------------
Institutional Prime Money Market Fund(US) - 6.40% 2.98%
Institutional Class
--------------------------------------------------------------------------------
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Investment return and
principal value will vary with market conditions, so that shares, when redeemed,
may be worth more or less than their original cost. Although a money market fund
seeks to maintain a stable net asset value of $1.00 per share, there is no
assurance it will be able to do so. An investment in the Fund is neither insured
nor guaranteed by the U.S. Government or by the FDIC.
Return figures reflect any expense reimbursements and fee waivers. Without
reimbursements or waivers, Fund returns would have been lower. All indices
mentioned are unmanaged. It is not possible to invest directly in any index.
This report must be preceded or accompanied by a current prospectus.
Distributor: Provident Distributors, Inc.
3
<PAGE>
SCHEDULE OF INVESTMENTS
INSTITUTIONAL PRIME MONEY MARKET FUND(US)
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
BANK NOTES 2.8%
CERTIFICATES OF DEPOSIT 39.5%
COMMERCIAL PAPER 41.3%
REPURCHASE AGREEMENTS AND NET OTHER ASSETS AND LIABILITIES 16.4%
[GRAPHIC OMITTED]
% OF TOTAL NET ASSETS
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------
COMMERCIAL PAPER (A) - 41.3%
American Express Credit
6.530%, 07/19/00................. $ 50,000 $ 49,837
Associates First Capital
6.530%, 07/24/00................. 24,643 24,541
6.550%, 07/26/00................. 25,000 24,886
AT&T
6.510%, 07/12/00................. 25,000 24,950
Bear Stearns
6.560%, 08/08/00................. 25,000 24,827
Blue Ridge Asset Funding
6.600%, 07/17/00 (B) ............ 25,000 24,927
Centric Capital
6.550%, 07/25/00 (B) ............ 25,000 24,891
Citicorp
6.530%, 08/02/00................. 25,000 24,855
Coca-Cola
6.550%, 07/18/00................. 20,536 20,473
Enterprise Funding
6.660%, 07/20/00 (B) ............ 11,591 11,550
Falcon Asset Securities
6.580%, 07/13/00................. 33,000 32,928
Ford Motor Credit
6.540%, 07/20/00................. 50,000 49,827
General Electric Capital
6.560%, 07/06/00................. 24,643 24,621
5.960%, 09/20/00................. 12,322 12,157
Goldman Sachs Group
6.550%, 07/18/00................. 25,000 24,923
6.550%, 08/17/00................. 25,000 24,786
Household Finance
6.530%, 07/25/00................. 25,000 24,891
International Lease Financial
6.490%, 07/19/00................. 41,072 40,939
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------
COMMERCIAL PAPER (continued)
Merrill Lynch
6.550%, 07/27/00................. $ 25,000 $ 24,882
Quincy Capital
6.540%, 07/14/00 (B) ............ 500 499
Receivables Capital
6.530%, 07/10/00 (B) ............ 8,543 8,529
UBS Finance
6.920%, 07/05/00................. 20,000 19,985
Variable Funding Capital
6.570%, 07/05/00 (B) ............ 25,143 25,125
6.520%, 07/11/00 (B) ............ 20,536 20,499
-----------
TOTAL COMMERCIAL PAPER
(Cost $590,328)................... 590,328
-----------
CERTIFICATES OF DEPOSIT - 39.5%
Barclays Bank (NY)
6.560%, 07/07/00................. 27,929 27,929
Bayerische Landesbank (NY)
6.550%, 07/19/00................. 41,072 41,072
6.610%, 03/07/01................. 8,214 8,212
Canadian Imperial Bank
6.200%, 08/01/00................. 14,786 14,788
6.520%, 01/29/01................. 20,536 20,533
6.720%, 02/12/01................. 8,214 8,213
Chase Bank USA
7.000%, 07/05/00................. 50,000 50,000
Credit Suisse First Boston
6.560%, 07/10/00................. 41,072 41,072
Deutsche Bank (NY)
6.550%, 07/10/00................. 41,072 41,072
6.010%, 09/05/00................. 6,572 6,571
Fifth Third Bancorp
7.000%, 07/03/00................. 50,000 50,000
Harris Trust & Savings
6.580%, 07/03/00................. 500 500
6.580%, 07/05/00................. 14,000 13,999
6.580%, 07/24/00................. 25,000 25,000
Lloyds Bank
6.000%, 08/14/00................. 9,036 9,036
Rabobank Nederland (NY)
6.710%, 03/16/01................. 9,857 9,855
Regions Bank (AL)
7.000%, 07/03/00................. 60,000 60,000
Societe Generale (NY)
6.550%, 07/20/00................. 28,751 28,751
6.560%, 01/18/01................. 20,536 20,532
Suntrust Banks
7.000%, 07/03/00................. 50,000 50,000
Union Bank of Switzerland (NY)
5.760%, 07/05/00................. 16,429 16,429
7.080%, 06/22/01................. 20,000 19,992
-----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $563,556)................... 563,556
-----------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
JUNE 30, 2000 (Unaudited)
FACE MARKET
DESCRIPTION AMOUNT (000) VALUE (000)
--------------------------------------------------------------------
BANK NOTES - 2.8%
Bank of America
6.770%, 08/23/00................. $ 24,643 $ 24,644
FNB of Chicago
6.015%, 08/14/00................. 15,197 15,196
-----------
TOTAL BANK NOTES
(Cost $39,840)....................... 39,840
-----------
REPURCHASE AGREEMENTS - 16.3%
J.P. Morgan
6.750%, dated 06/30/00, matures
07/03/00, repurchase price
$142,804,840 (collateralized by
U.S. Government Agency
Instruments, total market value:
$145,579,049).................... 142,725 142,725
Morgan Stanley
6.750%, dated 06/30/00, matures
07/03/00, repurchase price
$5,021,699 (collateralized by
U.S. Government Agency
Instruments, total market value:
$5,119,572)...................... 5,019 5,019
Prudential Securities
6.750%, dated 06/30/00, matures
07/03/00, repurchase price
$85,366,381 (collateralized by
U.S. Government Agency
Instruments, total market value:
$87,025,237)..................... 85,318 85,318
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $233,062)...................... 233,062
-----------
TOTAL INVESTMENTS - 99.9%
(Cost $1,426,786).................... 1,426,786
-----------
NET OTHER ASSETS AND LIABILITIES - 0.1%. 1,097
-----------
NET ASSETS - 100.0% .................... $ 1,427,883
===========
----------------------------------------------------------------
(A) Rate noted represents annualized discount yield
at the time of purchase.
(B) Securities exempt from registration under section
4(2) of the Securities Act of 1933, as amended.
These securities may only be resold in an exempt
transaction to qualified institutional buyers.
At June 30, 2000, these securities amounted to
$116,019,899 or 8.1% of net assets.
(AL) Alabama
(NY) New York
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
June 30, 2000
INSTITUTIONAL
PRIME
MONEY MARKET
FUND(US)
--------------------------------------------------------------------------------
ASSETS:
Investment securities at cost.............................. $1,193,724
Repurchase agreements...................................... 233,062
----------
Total investments at market value.......................... 1,426,786
Interest receivable........................................ 5,921
Other assets............................................... 15
----------
Total assets............................................... 1,432,722
----------
LIABILITIES:
Distribution payable....................................... 4,664
Advisory fee payable....................................... 78
Administration fee payable................................. 39
Trustees' fees payable..................................... 3
Accrued expenses and other payables........................ 55
----------
Total liabilities.......................................... 4,839
----------
NET ASSETS................................................. $1,427,883
==========
NET ASSETS CONSIST OF:
Paid in capital............................................ $1,427,883
Undistributed net invesment income......................... --
Accumulated net realized gain on investments............... --
Net unrealized appreciation on investments................. --
----------
TOTAL NET ASSETS........................................... $1,427,883
==========
SHARES OF BENEFICIAL INTEREST
Institutional Share Class:
Net Assets................................................. $1,427,883
==========
Shares of beneficial interest outstanding.................. 1,427,883
==========
NET ASSET VALUE, OFFERING AND REDEMPTION - PRICE PER SHARE. $ 1.00
==========
Institutional Service Share Class:
Net Assets................................................. $ --(A)
==========
Shares of beneficial interest outstanding.................. --(B)
==========
NET ASSET VALUE, OFFERING AND REDEMPTION - PRICE PER SHARE. $ 1.00
==========
----------------------------------------------------------------
(A) Net Assets are less than $500.
(B) Shares of beneficial interest outstanding are less than 500.
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
JUNE 30, 2000 (Unaudited)
STATEMENT OF OPERATIONS (000)
For the Six Months Ended June 30, 2000
INSTITUTIONAL
PRIME
MONEY MARKET
FUND(US)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest................................................... $ 5,372
----------
Total investment income.................................... 5,372
----------
EXPENSES:
Investment advisory fees (Note 5).......................... 82
Administration and fund accounting fees (Note 3)........... 41
Custody fees............................................... 6
Transfer agency fees....................................... 4
Professional fees.......................................... 11
Registration & filing fees................................. 37
Printing fees.............................................. 3
Trustees' fees............................................. 3
Miscellaneous.............................................. 1
----------
Total expenses before waivers.............................. 188
Less: Administration fees waived (Note 3)................ (1)
----------
Net expenses 187
----------
NET INVESTMENT INCOME......................................... 5,185
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... --
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $ 5,185
==========
-------------------------------------------------
(1) Commenced operations on December 28, 1999.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the Six Months Ended June 30, 2000 (Unaudited) and for the Period Ended
December 31, 1999
<TABLE>
INSTITUTIONAL
PRIME
MONEY MARKET
FUND(US)(1)
------------------------------------------------------------------------------------------------------------------------------
2000 1999
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income................................................................ $ 5,185 $ 2
---------- ---------
Net increase in net assets resulting from operations................................. 5,185 2
---------- ---------
DIVIDENDS DISTRIBUTED FROM:
Net investment income:
Institutional Share Class.......................................................... (5,185) (2)
Institutional Service Share Class.................................................. -- --
---------- ---------
Total dividends distributed...................................................... (5,185) (2)
---------- ---------
CAPITAL SHARE TRANSACTIONS:
INSTITUTIONAL SHARE CLASS:
Proceeds from shares issued........................................................ 1,497,970 5,000
Shares issued in lieu of cash distributions........................................ 392 --
Cost of shares repurchased......................................................... (75,479) --
---------- ---------
Increase in net assets derived from Institutional Share Class transactions........... 1,422,883 5,000
---------- ---------
INSTITUTIONAL SERVICE SHARE CLASS:
Proceeds from shares issued........................................................ --(B) --
Shares issued in lieu of cash distributions........................................ -- --
Cost of shares repurchased......................................................... -- --
---------- ---------
Increase in net assets derived from Institutional Service Share Class transactions. -- --
---------- ---------
Increase in net assets derived from capital share transactions..................... 1,422,883 5,000
---------- ---------
Net increasein net assets.......................................................... 1,422,883 5,000
NET ASSETS INCLUDING LINE (A):
Beginning of period.................................................................. 5,000 --
---------- ---------
End of period........................................................................ $1,427,883 $ 5,000
========== =========
(A) Undistributed net investment income.............................................. $ -- $ --
========== =========
CAPITAL SHARE TRANSACTIONS:
INSTITUTIONAL SHARE CLASS:
Shares issued...................................................................... 1,497,970 5,000
Shares issued in lieu of cash distributions........................................ 392 --
Shares repurchased................................................................. (75,479) --
---------- ---------
Total Institutional Share Class transactions..................................... 1,422,883 5,000
---------- ---------
INSTITUTIONAL SERVICE SHARE CLASS:
Shares issued...................................................................... --(B) --
Shares issued in lieu of cash distributions........................................ -- --
Shares repurchased................................................................. -- --
---------- ---------
Total Institutional Service Share Class transactions............................. -- --
---------- ---------
Increase in capital shares....................................................... 1,422,883 5,000
========== =========
</TABLE>
--------------------------------------------------------------
(1) Commenced operations on December 28, 1999.
(B) Institutional Service Share Class commenced operations on June 29, 2000 and
share transactions are less than $500 at June 30, 2000.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
JUNE 30, 2000 (Unaudited)
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Six Months Ended June 30, 2000
(Unaudited) and for the Period Ended December 31,
<TABLE>
INSTITUTIONAL
INSTITUTIONAL SERVICE CLASS
CLASS SHARES SHARES
-------------------------------------------------------
2000 1999(1) 2000(2)
----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL PRIME MONEY MARKET FUND(US)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value beginning of period........................... $ 1.00 $ 1.00 $ 1.00
------------ ------------- ------------
Income from investment operations:
Net investment income...................................... 0.03 0.00(A) 0.00
Realized and unrealized gains on securities................ 0.00 0.00 0.00
------------ ------------- ------------
Total from investment operations........................... 0.03 0.00 0.00
------------ ------------- ------------
Less Dividends:
Dividends from net investment income....................... (0.03) 0.00(A) 0.00
Distributions from capital gains........................... 0.00 0.00 0.00
------------ ------------- ------------
Total dividends............................................ (0.03) 0.00 0.00
------------ ------------- ------------
Net Increase in Net Asset Value............................... 0.00 0.00 0.00
------------ ------------- ------------
Net Assest Value end of period................................ $ 1.00 $ 1.00 $ 1.00
============ ============= ============
Total Return.................................................. 2.93%* 0.05%* --%*
Ratios/Supplemental Data:
Net Assets End of Period (000)................................ $ 1,427,883 $ 5,000 $ --(B)
Ratio to Average Net Assets
Expenses including waivers................................. 0.23%+ 0.20%+ 0.48%+
Net investment income including waivers.................... 6.34%+ 4.40%+ --%+
Expenses excluding waivers................................. 0.23%+ 3.39%+ 0.48%+
Net investment income excluding waivers.................... 6.33%+ 1.22%+ --%+
</TABLE>
-----------------------------------------------
(1) Commenced operations on December 28, 1999.
(2) Commenced operations on June 29, 2000.
(A) Per share was less than $0.005.
(B) Total net assets were less than $500.
+ Annualized
* Not Annualized
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ABN AMRO Funds (the "Trust") was organized as a Massachusetts business trust
under a Declaration of Trust dated September 17, 1992. The Trust is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company with 19 funds: Treasury Money Market
Fund(US), Government Money Market Fund(US), Money Market Fund(US), Tax-Exempt
Money Market Fund(US) (collectively the "Money Market Funds"), Fixed Income
Fund(US), Tax-Exempt Fixed Income Fund(US), International Fixed Income Fund(US),
Balanced Fund(US), (collectively the "Fixed Income Funds"), Value Fund(US),
Growth Fund(US), International Equity Fund(US), Small Cap Fund(US) (formerly the
Small Cap Growth Fund(US)), Real Estate Fund(US), Europe Equity Growth Fund(US)
(formerly the TransEurope Fund(US)), Asian Tigers Fund(US) and Latin America
Equity Fund(US) (collectively the "Equity Funds"). The Trust also consists of
Institutional Prime Money Market Fund(US), Institutional Treasury Money Market
Fund(US) and Institutional Government Money Market Fund(US) (collectively the
"Institutional Money Market Funds").
Europe Equity Growth Fund(US), Institutional Treasury Money Market Fund(US)
and Institutional Government Money Market Fund(US) have not yet commenced
operations as of June 30, 2000. Each prospectus describes each Fund's investment
objective, policies and strategies.
The assets of each Fund are separate, and a shareholder's interest is
limited to the Fund in which shares are held. The Money Market Funds, the Fixed
Income Funds and the Equity Funds offer two classes of shares: Common Shares and
Investor Shares (available through banks, various brokerage firms and other
financial intermediaries). The Institutional Money Market Funds of the Trust
offer two classes of shares: Institutional Shares and Institutional Service
Shares. The accompanying financial statements and financial highlights are those
of the Institutional Prime Money Market(US) (the "Fund").
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Fund.
SECURITY VALUATION - Investment securities held by the Fund are stated at
amortized cost, which approximates market value. Under the amortized cost
method, any discount or premium is accreted or amortized ratably to the maturity
of the security and is included in interest income.
FEDERAL INCOME TAXES - It is the Fund's intention to qualify as a regulated
investment company for federal income tax purposes by complying with the
appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as
amended. Accordingly, no provisions for federal income taxes are required in the
accompanying financial statements.
SECURITY TRANSACTIONS AND RELATED INCOME - Security transactions are
accounted for on a trade date basis. Interest income is recognized on an accrual
basis. Costs used in determining realized gains and losses on the sales of
investment securities are those of the specific securities sold, adjusted for
the accretion and amortization of purchase discounts and premiums during the
respective holding periods.
REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market value of
the collateral, including accrued interest thereon, is sufficient in the event
of default by the counterparty. If the counterparty defaults and the value of
the collateral declines or if the counterparty enters an insolvency proceeding,
realization of the collateral by the Fund may be delayed or limited.
NET ASSET VALUE PER SHARE - The net asset value per share of the Fund is
calculated each business day. In general, it is computed by dividing the assets
of the Fund less its liabilities, by the number of outstanding shares of the
Fund.
MATURITY DATES - Certain variable rate and floating rate securities of the
Fund are subject to "maturity shortening" devices such as put or demand
features. Under Rule 2a-7 of the 1940 Act, these securities are deemed to have
maturities shorter than the ultimate maturity dates. Accordingly, the maturity
dates reflected in the Schedule of Investments are the shorter of the effective
put/demand date or the ultimate maturity date.
CLASSES - Class-specific expenses are borne by that class. Income,
expenses, and realized and unrealized gains/losses are allocated to the
respective classes on the basis of relative daily net assets.
EXPENSES - Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Fund are prorated
to the Funds on the basis of relative net assets.
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 amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
OTHER - Net investment income for the Fund is declared to shareholders
daily and distributed monthly. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
The amounts of dividends from net investment income and distributions from
net realized capital gains are determined in accordance with federal income tax
regulations, which may differ from those amounts recorded under generally
accepted accounting principles. These book/tax differences are either temporary
or permanent in nature. To the extent that these differences are permanent, they
are charged or credited to paid-in capital in the period that the difference
arises.
10
<PAGE>
JUNE 30, 2000 (Unaudited)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Trust and ABN AMRO Fund Services, Inc. (the "Administrator") have entered
into an administration agreement (the "Administration Agreement"). Under the
terms of the Administration Agreement, the Administrator is entitled to a fee
calculated daily and paid monthly at an annual rate 0.05% of the average daily
net assets of the Fund. The Administrator has voluntarily waived a portion of
its fee for the period January 1, 2000 to April 30, 2000.
PFPC Inc. provides certain administrative services and fund accounting
pursuant to a sub-administration agreement with the Administrator.
Provident Distributors, Inc. (the "Distributor") serves as the distributor
of the Funds. The Trust has adopted a shareholder servicing plan for the
Institutional Service Class under the 1940 Act. The Distributor is paid a fee of
up to 0.25% of the average daily net assets of the Institutional Service Share
Class of the Fund for its efforts in maintaining client accounts, arranging bank
wires, responding to client inquiries concerning services provided on
investments and assisting clients in purchase, redemption and exchange
transactions, and changing their dividend options, account designations and
addresses.
4. TRANSACTIONS WITH AFFILIATES
Certain officers of the Trust are also employees of the Administrator,
Sub-Administrator, Legal Counsel and/or Advisor. Such officers are paid no fees
by the Trust for serving in their roles as officers of the Trust.
5. INVESTMENT ADVISORY AGREEMENT
The Trust has entered into an investment advisory agreement with ABN AMRO Asset
Management (USA) Inc., (the "Advisor"), under which the Advisor is entitled to
an annual fee equal to 0.10% of the average daily net assets of the Fund.
6. SUBSEQUENT EVENT
On or about September 1, 2000, it is anticipated that ABN AMRO Distribution
Services (USA), Inc. will become the Distributor of the Funds.
11
<PAGE>
This page intentionally left blank.
12
<PAGE>
[GRAPHIC OMITTED - SHIELD]
ABN AMRO FUNDS
------------------
SEMI-ANNUAL REPORT
------------------
June 30, 2000
INSTITUTIONAL MONEY MARKET FUNDS
Institutional Prime Money Market Fund(US)
Institutional Treasury Money Market Fund(US)*
Institutional Government Money Market Fund(US)*
INVESTMENT ADVISOR
ABN AMRO ASSET MANAGEMENT (USA) INC.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
ADMINISTRATOR
ABN AMRO FUND SERVICES, INC.
208 South LaSalle Street
Fourth Floor
Chicago, IL 60604-1003
DISTRIBUTOR
PROVIDENT DISTRIBUTORS, INC.
3200 Horizon Drive
King of Prussia, PA 19406
LEGAL COUNSEL
MORGAN, LEWIS & BOCKIUS LLP
1701 Market Street
Philadelphia, PA 19103
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
200 Clarendon Street
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* As of the date of this semi-annual report, these Funds had not yet commenced
operations.
FOR MORE INFORMATION, PLEASE CALL ABN AMRO FUNDS OR VISIT THE WEBSITE:
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ABN AMRO FUNDS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
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THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS
PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
ABN-F-012-00600
