<PAGE>
[GRAPHIC]
AMERICAN SELECT
PORTFOLIO
SLA
SEMIANNUAL REPORT
2000
[LOGO] FIRST AMERICAN-Registered Trademark-
ASSET MANAGEMENT
<PAGE>
[LOGO] FIRST AMERICAN-Registered Trademark-
ASSET MANAGEMENT
AMERICAN SELECT PORTFOLIO
TABLE OF CONTENTS
1 Fund Overview
4 Financial Statements and Notes
14 Investments in Securities
16 Shareholder Update
PRIMARY INVESTMENTS Mortgage-related assets that directly or indirectly
represent a participation in or are secured by and payable from mortgage
loans. The fund may also invest in asset-backed securities, U.S. government
securities, corporate-debt securities, municipal obligations, unregistered
securities, and mortgage-servicing rights. The fund borrows through the use
of reverse repurchase agreements. Use of certain of these investments and
investment techniques may cause the fund's net asset value to fluctuate to a
greater extent than would be expected from interest rate movements alone.
FUND OBJECTIVE High level of current income. Its secondary objective is to
seek capital appreciation. As with other investment companies, there can be
no assurance this fund will achieve its objective.
-------------------------------------------------------------------------------
AVERAGE ANNUALIZED TOTAL RETURNS
Based on net asset value for the periods ended May 31, 2000
[CHART]
<TABLE>
<CAPTION>
Since Inception
One Year Five Year 9/21/93
-------- --------- ---------------
<S> <C> <C> <C>
American Select Portfolio 5.34% 8.66% 6.84%
Lehman Brothers Mutual Fund
Government/Mortgage Index 2.75% 6.09% 5.65%
</TABLE>
The average annualized total returns for American Select Portfolio are based on
the change in its net asset value (NAV), assume all distributions were
reinvested, and do not reflect sales charges. NAV-based performance is used to
measure investment management results.
Average annualized total returns based on the change in market price for the
one-year, five-year, and since-inception periods ended May 31, 2000, were 0.02%,
9.78%, and 5.06%, respectively. These returns assume reinvestment of all
distributions and reflect sales charges on distributions as described in the
fund's dividend reinvestment plan, but not on initial purchases.
PLEASE REMEMBER, YOU COULD LOSE MONEY WITH THIS INVESTMENT. NEITHER SAFETY OF
PRINCIPAL NOR STABILITY OF INCOME IS GUARANTEED. Past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more or
less than their original cost. Closed-end funds, such as this fund, often trade
at discounts to net asset value.
Therefore, you may be unable to realize the full net asset value of your shares
when you sell.
The fund uses the Lehman Brothers Mutual Fund Government/ Mortgage Index as a
benchmark. Although we believe this is the most appropriate benchmark
available, it is not a perfect match. The benchmark index is comprised of
U.S. government securities while American Select Portfolio is comprised
primarily of nonsecuritized, illiquid whole loans. This limits the ability of
the fund to respond quickly to market changes.
The Lehman Brothers Mutual Fund Government/Mortgage Index is comprised of all
U.S. government agency and Treasury securities and agency mortgage-backed
securities. Developed by Lehman Brothers for comparative use by the mutual fund
industry, this index is unmanaged and does not include any fees or expenses in
its total return calculations.
The since inception number for the Lehman index is calculated from the month end
following the fund's inception through May 31, 2000.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
<PAGE>
FUND OVERVIEW
July 15, 2000
FOR THE SEMIANNUAL REPORTING PERIOD ENDED MAY 31, 2000, AMERICAN SELECT
PORTFOLIO HAD A TOTAL RETURN OF 2.62% BASED ON ITS NET ASSET VALUE (NAV).
This compares to a 1.93% return for its benchmark, the Lehman Brothers Mutual
Fund Government/Mortgage Index. The total return based on the fund's market
price was 0.80% over the same time frame. The fund's NAV performance
benefited from multifamily and commercial prepayment penalties paid by
property owners during the six months that helped to boost its NAV. The fund
receives these penalties on certain loans when a property owner wants to
repay the mortgage before it is due. Before we discuss the reporting period
in more detail, we would like to tell you about a recent proxy proposal that
you should have received.
AT THE AUGUST 3, 2000, ANNUAL MEETING, WE ARE ASKING FUND SHAREHOLDERS TO
APPROVE THE FUND'S INVESTMENT IN ALL TYPES OF SECURITIES BACKED BY REAL ESTATE
OR ISSUED BY COMPANIES THAT DEAL IN REAL ESTATE. IN PARTICULAR, REAL ESTATE
INVESTMENT TRUSTS (REITS), PREFERREDS. REIT companies manage portfolios of real
estate to earn profits for shareholders, and their preferred stock pays out a
specific dividend rate. We currently see good values in this market. They offer
investment-grade quality (BBB rated and above), attractive income potential,
more liquidity than mortgage loans because they are bought and sold on the New
York Stock Exchange, and they have a real estate orientation that we believe
suits the fund. Plus, they offer immediate diversification. For example, one
security we've considered represents 240,000 apartment units all across the
country. However, because these securities will have long durations, they will
be more volatile and more interest rate sensitive than the mortgage loans in the
portfolio.
THE FUND'S BOARD HAS APPROVED AN INCREASE IN THE LIMIT ON COMMERCIAL LOANS IN
THE FUND FROM 25% TO 35% OF TOTAL ASSETS. We currently find the commercial loan
market to be more attractive than single-family or multifamily loans. An
increase in commercial loans would broaden the exposure of the fund to office,
industrial, warehouse, and retail markets.
FUND MANAGEMENT
JOHN WENKER
is primarily responsible for the management of American Select Portfolio. He
has 14 years of financial experience.
DAVID STEELE
assists with the management of American Select Portfolio. He has 21 years of
financial experience.
RUSS KAPPENMAN
assists with the management of American Select Portfolio. He has 14 years of
financial experience.
* All returns assume reinvestment of distributions and do not reflect sales
charges, except the fund's total return based on market price, which does
reflect sales charges on distributions as described in the fund's dividend
reinvestment plan, but not on initial purchases. Past performance does not
guarantee future results. The investment return and principal value of an
investment will fluctuate so that fund shares, when sold, may be worth more
or less than their original cost.
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
As a percentage of total assets on May 31, 2000
[CHART]
<TABLE>
<S> <C>
Commercial Loans 20%
Short-term Securities 1%
Single-family
Loans 7%
Multifamily Loans 49%
Other Assets 1%
U.S. Agency
Mortgage-back
Securities 22%
</TABLE>
DELINQUENT LOAN PROFILE
The chart below shows the percentage of single-family loans** in the portfolio
that are 30, 60, 90, or 120 days delinquent as of May 31, 2000, based on
principal amounts outstanding.
<TABLE>
<S> <C>
Current 93.4%
---------------------------
30 Days 4.0%
---------------------------
60 Days 0.5%
---------------------------
90 Days 0.0%
---------------------------
120+ Days 2.1%
---------------------------
</TABLE>
**As of May 31, 2000, there were no multifamily or commercial loans delinquent.
-------------------------------------------------------------------------------
1 2000 Semiannual Report - American Select Portfolio
<PAGE>
FUND OVERVIEW CONTINUED
DURING THE REPORTING PERIOD, THE FEDERAL RESERVE'S INTEREST RATE HIKES BECAME
A CHALLENGE FOR THE FUND. On the positive side, higher rates have slowed the
level of refinancings and loan prepayments. Also, rising rates mean that we
can find new mortgage investments that pay income equal to or higher than the
average coupon in the fund. However, the Fed has raised short-term rates so
much that high borrowing costs are beginning to erode the income levels of
the fund. In June 2000, after the end of this semiannual reporting period, we
had to decrease the monthly dividend of the fund from 8.75 cents per share to
8.0 cents per share as a result. Even with the decrease, the dividend reserve
of 4.84 cents per share continues to support part of the fund's monthly
distribution.
BECAUSE OF THIS CHALLENGING INTEREST RATE ENVIRONMENT, THE FUND ALSO
EXPERIENCED MORE NET ASSET VALUE VOLATILITY THAN IS TYPICAL, BUT WAS STILL
ABLE TO PAY AN ATTRACTIVE INCOME STREAM. The NAV of the fund began the
six-month period at $12.67 and ended at $12.47 per share. At the end of the
reporting period, the fund's market price of $11.25 per share continued to
trade at a discount to its net asset value. Dividends for the six months
totaled $0.525 per share, for an annualized distribution rate of 9.33% based
on the May 31 market price. The fund's new dividend level would result in an
annualized earnings rate of 8.53% based on the May 31 market price. Keep in
mind that past performance is no guarantee of future results, and the fund's
NAV and distribution rate will fluctuate.
DURING DECEMBER, THE FUND PAID OUT PROCEEDS FROM ITS SHARE REPURCHASE OFFER,
WHICH BROUGHT SHORT-TERM SECURITIES FROM 8% DOWN TO 1% OF THE FUND'S TOTAL
ASSETS. In the last shareholder report, the level of short-term securities
was elevated to prepare for the repurchase offer payout. Single-family,
multifamily, and commercial loans continue to represent the majority of the
portfolio with 76% of total assets collectively. (See the chart on the
previous page for individual percentages for each loan category.) In
addition, we have moved about 2% of total assets out of whole loans during
the period and into agency mortgage securities, mainly Fannie Maes (Federal
National
--------------------------------------------------------------------------------
GEOGRAPHICAL DISTRIBUTION
We attempt to buy mortgage loans in many parts of the country to help avoid
the risks of concentrating in one area. These percentages reflect principal
value of whole loans as of May 31, 2000. Shaded areas without values indicate
states in which the fund has invested less than 0.50% of its assets.
[MAP]
<TABLE>
<S> <C>
Alabama
Alaska less than 0.50%
Arizona 11%
Arkansas
California 4%
Colorado 5%
Connecticut less than 0.50%
Delaware less than 0.50%
Florida 1%
Georgia 2%
Hawaii less than 0.50%
Idaho 1%
Illinois 2%
Indiana less than 0.50%
Iowa
Kansas
Kentucky
Louisiana 3%
Maine
Maryland less than 0.50%
Massachusetts 1%
Michigan less than 0.50%
Minnesota 13%
Mississippi
Missouri 2%
Montana
Nebraska
New Hampshire
New Jersey 1%
New Mexico 2%
New York 1%
Nevada 5%
North Carolina less than 0.50%
North Dakota
Ohio 3%
Oklahoma 14%
Oregon less than 0.50%
Pennsylvania less than 0.50%
Rhode Island
South Carolina less than 0.50%
South Dakota less than 0.50%
Tennessee less than 0.50%
Texas 23%
Utah less than 0.50%
Vermont less than 0.50%
Virginia
Washington 2%
West Virginia
Wisconsin
Wyoming less than 0.50%
</TABLE>
-------------------------------------------------------------------------------
2 2000 Semiannual Report - American Select Portfolio
<PAGE>
Mortgage Association) and Freddie Macs (Federal Home Loan Mortgage
Corporation). We currently believe agency securities offer good cash flows,
better values, and that they have AAA-rated credit quality. The fund owned no
Treasury securities as of May 31.
ALTHOUGH THE INCREASING RATE ENVIRONMENT HAS BECOME SOMEWHAT PAINFUL FOR THE
FUND, THE FED'S ACTION IS HELPING TO KEEP THE ECONOMY HEALTHY, WHICH IS
BENEFICIAL FOR THE REAL ESTATE MARKETS AND THE FUND OVER THE LONG TERM. In
the multifamily and commercial markets, increased rates mean less new
construction, which translates into higher rent levels and occupancy levels
in existing properties. Since this fund only buys loans on existing
properties, less new supply is a positive factor for the fund. Also, with the
U.S. economy continuing to grow, we are seeing increased values for
single-family housing, lower foreclosure rates, and very low credit losses.
As you can see on the map on the previous page, our mortgage loans are
diversified across the majority of states to help avoid the risk of an
economic downturn in one region. We are overweighted in states that are
experiencing the most population and job growth, such as California and
Texas. We believe the Federal Reserve's moves will be successful in
orchestrating a "soft landing" for the economy without putting it into a
recession, which would be the worst case scenario for this fund.
THE HEALTHY ECONOMY HAS HELPED THE FUND HAVE NO CREDIT LOSSES DURING THE
SEMIANNUAL PERIOD; HOWEVER PREPAYMENT LEVELS WERE HIGH. Keep in mind that the
risk of credit losses (i.e. loans defaulting) is the primary risk of
investing in mortgage loans. If the proceeds from the sale of the foreclosed
property are less than the loan price that the fund paid, the fund would
suffer a loss. Since inception, the fund has had net credit gains of $0.03
per share. The fund experienced five multifamily or commercial loan
prepayments during the six months and received prepayment penalties of
$751,539 from these borrowers. Although the fund's net asset value benefits
from the penalties, prepayments can be somewhat detrimental to the fund as it
takes some time to find new mortgage loans with income levels that are as
attractive as the loans that are retired.
THANK YOU FOR YOUR INVESTMENT IN AMERICAN SELECT PORTFOLIO AND THE TRUST YOU
HAVE PLACED IN US AS MANAGERS. We hope you will take a few minutes to read,
vote on, and return the proxy that you received in the mail. We believe the
new investment options described in the proxy will help the fund to maintain
an attractive income level and total return. We will continue to closely
monitor the fund's credit risk and income levels to help you achieve your
financial goals.
--------------------------------------------------------------------------------
VALUATION OF WHOLE LOAN INVESTMENTS
The fund's investments in whole loans (single-family, multifamily, and
commercial), participation mortgages, and mortgage servicing rights are
generally not traded in any organized market and therefore, market quotations
are not readily available. These investments are valued at "fair value"
according to procedures adopted by the fund's board of directors. Pursuant to
these procedures, whole loan investments are initially valued at cost and
their values are subsequently monitored and adjusted pursuant to a First
American Asset Management pricing model designed to incorporate, among other
things, the present value of the projected stream of cash flows on such
investments. The pricing model takes into account a number of relevant
factors including the projected rate of prepayments, the delinquency profile,
the historical payment record, the expected yield at purchase, changes in
prevailing interest rates, and changes in the real or perceived liquidity of
whole loans, participation mortgages, or mortgage servicing rights, as the
case may be. The results of the pricing model may be further subject to price
ceilings due to the illiquid nature of the loans. Changes in prevailing
interest rates, real or perceived liquidity, yield spreads, and credit
worthiness are factored into the pricing model each week. Certain mortgage
loan information is received on a monthly basis and includes, but is not
limited to, the projected rate of prepayments, projected rate and severity of
defaults, the delinquency profile, and the historical payment record.
Valuations of whole loans are determined no less frequently than weekly.
-------------------------------------------------------------------------------
3 2000 Semiannual Report - American Select Portfolio
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES May 31, 2000
................................................................................
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value* (note 2) ....... $175,936,561
Cash in bank on demand deposit ............................ 96,524
Accrued interest receivable ............................... 1,287,572
------------
Total assets ............................................ 177,320,657
------------
LIABILITIES:
Reverse repurchase agreements payable (note 2) ............ 44,086,000
Accrued investment management fee ......................... 54,045
Accrued administrative fee ................................ 40,746
Accrued interest .......................................... 128,514
Other accrued expenses .................................... 83,603
------------
Total liabilities ....................................... 44,392,908
------------
Net assets applicable to outstanding capital stock ...... $132,927,749
============
COMPOSITION OF NET ASSETS:
Capital stock and additional paid-in capital .............. $154,280,415
Undistributed net investment income ....................... 515,940
Accumulated net realized loss on investments .............. (18,176,618)
Unrealized depreciation of investments .................... (3,691,988)
------------
Total - representing net assets applicable to capital
stock ................................................. $132,927,749
============
* Investments in securities at identified cost .......... $179,628,549
============
NET ASSET VALUE AND MARKET PRICE:
Net assets ................................................ $132,927,749
Shares outstanding (authorized 1 billion shares of $0.01 par
value) .................................................. 10,662,195
Net asset value ........................................... $ 12.47
Market price .............................................. $ 11.25
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
4 2000 Semiannual Report - American Select Portfolio
<PAGE>
Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Six Months Ended May 31,
2000
................................................................................
<TABLE>
<S> <C>
INCOME:
Interest (net of interest expense of $1,392,491) ........... $ 6,140,929
-----------
EXPENSES (NOTE 3):
Investment management fee ................................. 335,206
Administrative fee ........................................ 161,722
Custodian and accounting fees ............................. 34,747
Transfer agent fees ....................................... 11,280
Reports to shareholders ................................... 31,185
Mortgage servicing fees ................................... 92,271
Directors' fees ........................................... 1,504
Audit and legal fees ...................................... 35,121
Other expenses ............................................ 72,595
-----------
Total expenses .......................................... 775,631
-----------
Net investment income ................................... 5,365,298
-----------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON
INVESTMENTS: (NOTE 4):
Net realized gain on investments in securities ............ 75,444
Net realized gain on real estate owned .................... 304,063
-----------
Net realized gain on investments ........................ 379,507
Net change in unrealized appreciation or depreciation of
investments ............................................. (2,246,930)
-----------
Net loss on investments ................................. (1,867,423)
-----------
Net increase in net assets resulting from
operations .......................................... $ 3,497,875
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
5 2000 Semiannual Report - American Select Portfolio
<PAGE>
Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS For the Six Months Ended May 31,
2000
................................................................................
<TABLE>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest income ............................................ 6,140,929
Net expenses ............................................... (775,631)
-----------
Net investment income .................................... 5,365,298
-----------
Adjustments to reconcile net investment income to net cash
provided by operating activities:
Change in accrued interest receivable .................... 447,350
Net amortization of bond discount and premium ............ (6,396)
Change in accrued fees and expenses ...................... 95,899
Change in other assets ................................... 8,056
-----------
Total adjustments ...................................... 544,909
-----------
Net cash provided by operating activities .............. 5,910,207
-----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investments ......................... 69,773,443
Purchases of investments ................................... (62,789,291)
Net sales of short-term securities ......................... 15,434,404
-----------
Net cash provided by investing activities .............. 22,418,556
-----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on reverse repurchase agreements .............. (6,889,000)
Retirement of fund shares .................................. (15,069,231)
Distributions paid to shareholders ......................... (5,597,652)
-----------
Net cash used by financing activities .................. (27,555,883)
-----------
Net increase in cash ....................................... 772,880
Cash at beginning of period ................................ (676,356)
-----------
Cash at end of period .................................. 96,524
===========
Supplemental disclosure of cash flow information:
Cash paid for interest on reverse
repurchase agreements .................................. 1,358,179
===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
6 2000 Semiannual Report - American Select Portfolio
<PAGE>
Financial Statements (continued)
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
................................................................................
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
5/31/00 YEAR ENDED
(UNAUDITED) 11/30/99
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income ..................................... $ 5,365,298 $ 12,075,812
Net realized gain on investments .......................... 379,507 40,732
Net change in unrealized appreciation or depreciation of
investments ............................................. (2,246,930) (3,223,536)
------------ ------------
Net increase in net assets resulting from operations .... 3,497,875 8,893,008
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ................................ (5,597,652) (12,480,291)
------------ ------------
CAPITAL SHARE TRANSACTIONS: (NOTE 6):
Decrease in net assets from capital share transactions .... (15,069,231) (1,154,380)
------------ ------------
Total decrease in net assets ............................ (17,169,008) (4,741,663)
Net assets at beginning of period ......................... 150,096,757 154,838,420
------------ ------------
Net assets at end of period ............................... $132,927,749 $150,096,757
============ ============
Undistributed net investment income ....................... $ 515,940 $ 748,294
============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------
7 2000 Semiannual Report - American Select Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
(1) ORGANIZATION
............................
American Select Portfolio Inc. (the fund) is registered
under the Investment Company Act of 1940 (as amended) as a
diversified, closed-end management investment company. The
fund emphasizes investments in mortgage-related assets
that directly or indirectly represent a participation in
or are secured by and payable from mortgage loans. It may
also invest in asset-backed securities, U.S. government
securities, corporate debt securities, municipal
obligations, unregistered securities and mortgage
servicing rights. The fund may enter into dollar roll
transactions. In addition, the fund may borrow using
reverse repurchase agreements and revolving credit
facilities. Fund shares are listed on the New York Stock
Exchange under the symbol SLA.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
............................
INVESTMENTS IN SECURITIES
Portfolio securities for which market quotations are
readily available are valued at current market value. If
market quotations or valuations are not readily available,
or if such quotations or valuations are believed to be
inaccurate, unreliable or not reflective of market value,
portfolio securities are valued according to procedures
adopted by the fund's board of directors in good faith at
"fair value", that is, a price that the fund might
reasonably expect to receive for the security or other
asset upon its current sale.
The current market value of certain fixed income
securities is provided by an independent pricing service.
Fixed income securities for which prices are not available
from an independent pricing service but where an active
market exists are valued using market quotations obtained
from one or more dealers that make markets in the
securities or from a widely-used quotation system.
Short-term securities with maturities of 60 days or less
are valued at amortized cost, which approximates market
value.
The fund's investments in whole loans (single family,
multifamily and commercial), participation mortgages and
mortgage servicing rights are generally not traded in any
organized market and therefore, market quotations are not
readily available. These investments are valued at "fair
value" according to procedures adopted by the fund's board
of directors. Pursuant to these procedures, whole loan
investments are initially valued at cost and their values
are subsequently monitored and adjusted pursuant to a
First American Asset Management pricing model designed to
incorporate, among other things, the present value of the
projected stream of cash flows on such investments. The
pricing model takes into account a number of relevant
factors including the projected rate of prepayments, the
delinquency profile, the historical payment record, the
expected yield at purchase, changes in prevailing interest
rates, and changes in the real or perceived liquidity of
whole loans, participation mortgages or mortgage servicing
rights, as the case may be. The results of the pricing
model may be further subject to price ceilings due to the
illiquid nature of the loans. Changes in prevailing
interest rates, real or perceived liquidity, yield
spreads, and creditworthiness are factored into the
pricing model each week. Certain mortgage loan information
is received once a month. This information includes, but
is not limited to, the projected rate of prepayments,
projected rate and severity of defaults, the delinquency
profile and the historical payment record. Valuations of
whole loans, mortgage participations and mortgage
servicing rights are determined no less frequently than
weekly.
--------------------------------------------------------------------------------
8 2000 Semiannual Report - American Select Portfolio
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
Securities transactions are accounted for on the date
securities are purchased or sold. Realized gains and
losses are calculated on the identified-cost basis.
Interest income, including amortization of bond discount
and premium, is recorded on an accrual basis.
WHOLE LOANS AND PARTICIPATION MORTGAGES
Whole loans and participation mortgages may bear a greater
risk of loss arising from a default on the part of the
borrower of the underlying loans than do traditional
mortgage-backed securities. This is because whole loans
and participation mortgages, unlike most mortgage-backed
securities, generally are not backed by any government
guarantee or private credit enhancement. Such risk may be
greater during a period of declining or stagnant real
estate values. In addition, the individual loans
underlying whole loans and participation mortgages may be
larger than the loans underlying mortgage-backed
securities. With respect to participation mortgages, the
fund generally will not be able to unilaterally enforce
its rights in the event of a default, but rather will be
dependent on the cooperation of the other participation
holders.
At May 31, 2000, loans representing 0.03% of net assets
were 60 days or more delinquent as to the timely monthly
payment of principal. Such delinquencies relate solely to
single family whole loans and represent 2.6% of total
single family principal outstanding at May 31, 2000. The
fund does not record past due interest as income until
received. The fund may incur certain costs and delays in
the event of a foreclosure. Also, there is no assurance
that the subsequent sale of the property will produce an
amount equal to the sum of the unpaid principal balance of
the loan as of the date the borrower went into default,
the accrued unpaid interest and all of the foreclosure
expenses. In this case, the fund may suffer a loss. The
fund recognized net realized gains of $304,063 or $0.0285
per share on real estate sold during the six months ended
May 31, 2000.
Real estate acquired through foreclosure, if any, is
recorded at estimated fair value. The fund may receive
rental or other income as a result of holding real estate.
In addition, the fund may incur expenses associated with
maintaining any real estate owned. On May 31, 2000, the
fund owned no real estate.
REVERSE REPURCHASE AGREEMENTS
Reverse repurchase agreements involve the sale of a
portfolio-eligible security by the fund, coupled with an
agreement to repurchase the security at a specified date
and price. Reverse repurchase agreements may increase
volatility of the fund's net asset value and involve the
risk that interest costs on money borrowed may exceed the
return on securities purchased with that borrowed money.
Reverse repurchase agreements are considered to be
borrowings by the fund, and are subject to the fund's
overall restriction on borrowing under which it must
maintain asset coverage of at least 300%. For the six
months ended May 31, 2000, the average borrowings
outstanding were $44,843,500 and the average rate was
6.25%.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS
Delivery and payment for securities that have been
purchased by the fund on a when-issued or
forward-commitment basis can take place a month or more
after the transaction date. During this period, such
securities do not earn interest, are subject to market
fluctuation and may increase or
--------------------------------------------------------------------------------
9 2000 Semiannual Report - American Select Portfolio
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
decrease in value prior to their delivery. The fund
segregates, with its custodian, assets with a market value
equal to the amount of its purchase commitments. The
purchase of securities on a when-issued or
forward-commitment basis may increase the volatility of
the fund's net asset value if the fund makes such
purchases while remaining substantially fully invested. As
of May 31, 2000, the fund had no outstanding when-issued
or forward commitments.
FEDERAL TAXES
The fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies and not be subject to federal income tax.
Therefore, no income tax provision is required. The fund
also intends to distribute its taxable net investment
income and realized gains, if any, to avoid the payment of
any federal excise taxes.
The character of distributions made during the year from
net investment income or net realized gains may differ
from its ultimate characterization for federal income tax
purposes. In addition, due to the timing of dividend
distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or
realized gains or losses were recorded by the funds.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are made monthly
and realized capital gains, if any, will be distributed at
least annually. These distributions are recorded as of the
close of business on the ex-dividend date. Such
distributions are payable in cash or, pursuant to the
fund's dividend reinvestment plan, reinvested in
additional shares of the fund's capital stock. Under the
plan, fund shares will be purchased in the open market
unless the market price plus commissions exceeds the net
asset value by 5% or more. If, at the close of business on
the dividend payment date, the shares purchased in the
open market are insufficient to satisfy the dividend
reinvestment requirement, the fund will issue new shares
at a discount of up to 5% from the current market price.
REPURCHASE AGREEMENTS AND OTHER SHORT-TERM SECURITIES
For repurchase agreements entered into with certain
broker-dealers, the fund, along with other affiliated
registered investment companies, may transfer uninvested
cash balances into a joint trading account, the daily
aggregate of which is invested in repurchase agreements
secured by U.S. government or agency obligations.
Securities pledged as collateral for all individual and
joint repurchase agreements are held by the fund's
custodian bank until maturity of the repurchase agreement.
Provisions for all agreements ensure that the daily market
value of the collateral is in excess of the repurchase
amount, including accrued interest, to protect the fund in
the event of a default. In addition to repurchase
agreements, the fund may invest in money market funds
advised by the fund's advisor.
--------------------------------------------------------------------------------
10 2000 Semiannual Report - American Select Portfolio
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
USE OF ESTIMATES
The preparation of financial statements in conformity with
accounting principles generally accepted in the United
States requires management to make estimates and
assumptions that affect the reported amounts in the
financial statements. Actual results could differ from
these estimates.
(3) EXPENSES
............................
INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The fund has entered into the following agreements with
U.S. Bank National Association (U.S. Bank) acting through
its division, First American Asset Management (the advisor
and administrator):
The investment advisory agreement provides the advisor
with a monthly investment management fee in an amount
equal to an annualized rate of 0.50% of the fund's average
weekly net assets. For its fee, the advisor provides
investment advice and conducts the management and
investment activity of the fund.
The administration agreement provides the administrator
with a monthly fee based on an annual percentage of the
fund's average weekly net assets (computed by subtracting
liabilities from the value of the total assets of the
fund). For its fee, the administrator provides reporting,
regulatory and record-keeping services for the fund. For
the fiscal period from June 1, 1999 through December 31,
1999, the fund paid the administrator a monthly fee in an
amount equal to an annual rate of 0.20% of the fund's
average weekly net assets. Effective January 1, 2000, the
administrator's fee increased to an annual rate of 0.25%
of the fund's average weekly net assets. The new
administrative fee includes 0.05% for accounting expenses
which were previously charged to and paid separately by
the fund.
MORTGAGE SERVICING FEES
The fund enters into mortgage servicing agreements with
mortgage servicers for whole loans and participation
mortgages. For a fee, mortgage servicers maintain loan
records, such as insurance and taxes and the proper
allocation of payments between principal and interest.
OTHER FEES AND EXPENSES
In addition to the investment management, administrative
and mortgage servicing fees, the 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; insurance; interest; expenses related to real
estate owned; fees to outside parties retained to assist
in conducting due diligence; taxes and other miscellaneous
expenses.
During the six months ended May 31, 2000, the fund paid
$15,457 to U.S. Bank for custody services.
(4) INVESTMENT
SECURITY
TRANSACTIONS
............................
Cost of purchases and proceeds from sales of securities
and real estate, other than temporary investments in
short-term securities, for the six months ended May 31,
2000 aggregated $62,795,687 and $69,773,443, respectively.
Included in proceeds from sales are $5,567,910 from sales
of real estate owned and $751,539 from prepayment
penalties.
--------------------------------------------------------------------------------
11 2000 Semiannual Report - American Select Portfolio
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
--------------------------------------------------------------------------------
(5) CAPITAL LOSS
CARRYOVER
............................
For federal income tax purposes, the fund had capital loss
carryovers at November 30, 1999, which, if not offset by
subsequent capital gains, will expire on the fund's fiscal
year-ends as indicated below. It is unlikely the board of
directors will authorize a distribution of any net
realized capital gains until the available capital loss
carryovers have been offset or expire.
<TABLE>
<CAPTION>
CAPITAL LOSS
CARRYOVER EXPIRATION
------------ ----------
<S> <C> <C>
$ 5,066,440 2002
13,489,685 2003
-----------
$18,556,125
===========
</TABLE>
(6) CAPITAL SHARE
TRANSACTIONS
............................
RETIREMENT OF FUND SHARES
The fund's board of directors has approved a plan to
repurchase shares of the fund in the open market and
retire those shares. Repurchases may only be made when the
previous day's closing market value was at a discount from
net asset value (NAV). Daily repurchases are limited to
25% of the previous four weeks average daily trading
volume on the New York Stock Exchange. Under the current
plan, cumulative repurchases in the fund cannot exceed
597,784 shares (5% of the outstanding shares as of
September 9, 1998).
Pursuant to the plan, the fund repurchased and retired the
following:
<TABLE>
<CAPTION>
YEAR % OUTSTANDING WEIGHTED AVERAGE
ENDED SHARES SHARES COST DISCOUNT FROM NAV
-------- ------- ------------- ------------- -----------------
<S> <C> <C> <C> <C>
11/30/99 96,200 0.81% $1,154,380 7.48%
</TABLE>
REPURCHASE OFFER
The fund's board of directors concluded that an offer to
purchase up to 10% of the fund's outstanding shares at net
asset value would be in the best interests of
shareholders. Accordingly, the repurchase offer was sent
to shareholders in November 1999, and the deadline for
submitting shares for repurchase was 5:00 p.m. Eastern
Time on November 29, 1999. The repurchase price was
determined on December 6, 1999, at the close of regular
trading on the New York Stock Exchange (4 p.m. Eastern
Time). The percentage of outstanding shares repurchased,
the number of shares repurchased, the repurchase price per
share (net asset value less two cents per share repurchase
fee) and proceeds paid by the fund on December 10, 1999,
were as follows:
<TABLE>
<CAPTION>
PERCENTAGE SHARES REPURCHASE PROCEEDS
REPURCHASED REPURCHASED PRICE PAID
----------- ----------- ---------- ------------
<S> <C> <C> <C>
10% 1,184,688 $12.70 $15,045,538
</TABLE>
--------------------------------------------------------------------------------
12 2000 Semiannual Report - American Select Portfolio
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
(7) FINANCIAL
HIGHLIGHTS
............................
Per-share data for a share of capital stock outstanding
throughout each period and selected information for each
period are as follows:
AMERICAN SELECT PORTFOLIO
<TABLE>
<CAPTION>
Six Months
Ended Year Year Year Year Year
5/31/00 Ended Ended Ended Ended Ended
(Unaudited) 11/30/99 11/30/98(d) 11/30/97 11/30/96 11/30/95
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning
of period .................. $12.67 $12.96 $12.88 $12.66 $12.86 $11.62
------ ------ ------ ------ ------ ------
Operations:
Net investment income ...... 0.51 1.02 1.06 1.05 1.02 1.09
Net realized and unrealized
gains (losses)
on investments ........... (0.18) (0.26) 0.12 0.21 (0.14) 1.28
------ ------ ------ ------ ------ ------
Total from operations .... 0.33 0.76 1.18 1.26 0.88 2.37
------ ------ ------ ------ ------ ------
Distributions to shareholders:
From net
investment income ........ (0.53) (1.05) (1.10) (1.04) (1.08) (1.13)
------ ------ ------ ------ ------ ------
Net asset value, end of
period ................. $12.47 $12.67 $12.96 $12.88 $12.66 $12.86
====== ====== ====== ====== ====== ======
Per-share market value, end of
period ..................... $11.25 $11.69 $12.13 $11.75 $11.00 $11.00
====== ====== ====== ====== ====== ======
SELECTED INFORMATION
Total return, net asset
value (a) .................. 2.62% 6.03% 9.51% 10.44% 7.27% 21.22%
Total return, market
value (b) .................. 0.80% 5.21% 13.12% 16.97% 10.53% 17.36%
Net assets at end of period
(in millions) .............. $ 133 $ 150 $ 155 $ 171 $ 168 $ 172
Ratio of expenses to average
weekly net assets including
interest expense ........... 3.23%(e) 3.28% 3.34% 3.56% 3.30% 3.76%
Ratio of expenses to average
weekly net assets excluding
interest expense ........... 1.15%(e) 1.11% 1.09% 1.07% 1.03% 1.08%
Ratio of net investment income
to average weekly
net assets ................. 7.99%(e) 7.88% 8.08% 8.36% 8.11% 8.85%
Portfolio turnover rate
(excluding short-
term securities) ........... 36% 24% 41% 86% 30% 73%
Amount of borrowings
outstanding at end of period
(in millions) .............. $ 44 $ 51 $ 57 $ 68 $ 65 $ 65
Per-share amount of borrowings
outstanding at end
of period .................. $ 4.13 $ 4.30 $ 4.77 $ 5.12 $ 4.91 $ 4.87
Per-share amount of net
assets, excluding
borrowings, at end
of period .................. $16.60 $16.97 $17.73 $18.00 $17.57 $17.73
Asset coverage ratio (c) ..... 402% 394% 372% 352% 358% 364%
</TABLE>
(a) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT NET ASSET VALUE AND DOES NOT
REFLECT A SALES CHARGE.
(b) ASSUMES REINVESTMENT OF DISTRIBUTIONS AT ACTUAL PRICES PURSUANT TO THE
FUND'S DIVIDEND REINVESTMENT PLAN.
(c) REPRESENTS NET ASSETS, EXCLUDING BORROWINGS, AT END OF PERIOD DIVIDED BY
BORROWINGS OUTSTANDING AT END OF PERIOD.
(d) EFFECTIVE AUGUST 10, 1998, THE ADVISOR WAS CHANGED FROM PIPER CAPITAL TO
U.S. BANK.
(e) ANNUALIZED
--------------------------------------------------------------------------------
13 2000 Semiannual Report - American Select Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
AMERICAN SELECT PORTFOLIO May 31, 2000
.................................................................................................................
Date Market
Description of Security Acquired Par Value Cost Value(a)
--------------------------------------------------------- -------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
U.S. GOVERNMENT AND AGENCY SECURITIES (29.5%):
U.S. AGENCY MORTGAGE-BACKED SECURITIES (29.5%):
FIXED RATE (29.5%):
7.50%, FHLMC, 12/1/29 ............................. 1/25/00 $13,773,278(b) $ 13,500,851 $ 13,390,244
6.50%, FNMA, 6/1/29 ............................... 5/17/99 17,269,683(b) 17,144,376 15,974,456
7.50%, FNMA, 5/1/30 ............................... 5/9/00 4,980,555(b) 4,804,381 4,834,226
8.00%, FNMA, 5/1/30 ............................... 5/9/00 5,000,000(b) 4,933,645 4,956,250
------------
Total U.S. Government and Agency Securities .... 40,383,253 39,155,176
------------
WHOLE LOANS AND PARTICIPATION MORTGAGES (C,D,E) (101.8%):
COMMERCIAL LOANS (27.0%):
Advanced Circuits and Hopkins II Business Center,
8.71%, 10/1/02 .................................. 9/2/99 3,744,395 3,744,395 3,711,965
Broadway Place, 9.00%, 6/1/01 ..................... 12/15/97 3,403,134 3,403,134 3,413,772
Case Business Park, 10.08%, 6/1/02 ................ 5/20/99 3,564,669 3,564,273 3,650,343
Community Coffee Office Building,
8.90%, 6/1/01 ................................... 10/3/97 4,565,199 4,565,199 4,532,279
Corporate Center Northborough, 7.95%, 10/1/03 ..... 9/9/98 4,962,152 4,949,747 4,774,853
Galtier Plaza, 9.29%, 3/1/05 ...................... 3/2/00 4,992,785 4,992,785 5,037,576
Oasis at the Waterfront, 9.61%, 5/1/01 ............ 4/30/97 1,616,477 1,616,477 1,616,477
Parkway Business Center, 7.75%, 11/1/03 ........... 10/22/98 3,733,861 3,733,861 3,594,315
Rodeo Shops, 9.15%, 6/1/07 . 5/29/97 1,303,093 1,303,093 1,293,083
The Kislak Building, 8.63%, 7/1/02 ................ 6/17/97 1,690,578 1,690,578 1,690,007
Victory Packaging Facility, 8.00%, 6/1/13 ......... 5/27/98 2,715,640 2,715,640 2,557,282
------------
36,279,182 35,871,952
------------
MULTIFAMILY LOANS (65.5%):
Bryant Square Apartments, 8.13%, 4/1/01 ........... 3/15/94 1,108,841(b) 1,093,810 1,062,178
Candlelite Apartments, 8.75%, 3/1/01 .............. 2/28/94 1,470,386 1,459,730 1,474,745
Cape Cod Apartments, 7.40%, 2/1/08 ................ 1/16/98 1,808,988(b) 1,808,988 1,666,471
Casa Del Vista Apartments, 8.75%, 1/1/01 .......... 12/30/93 2,024,974(b) 2,012,495 2,021,609
Castle Arms Apartments, 8.13%, 4/1/06 ............. 3/19/99 986,048 986,048 949,609
Centre Court, White Oaks and Green Acres
Apartments, 8.75%, 1/1/09 ....................... 12/30/98 4,084,769(b) 4,084,769 4,055,902
Chapel Hill Apartments, 8.50%, 8/1/01 ............. 7/29/94 885,800 877,660 861,638
Cottonwood Villas Apartments, 9.78%, 10/1/01 ...... 9/24/98 1,645,000(b) 1,628,550 1,573,603
El Conquistador Apartments, 7.75%, 4/1/09 ......... 3/24/99 2,872,336(b) 2,872,336 2,690,117
Evergreen, Northview, Greenwood and Fern Court
Apartments, 9.50%, 6/1/05 5/22/00 4,600,000 4,600,000 4,717,461
</TABLE>
<TABLE>
Date Par Value/ Market
Description of Security Acquired Shares Cost Value(a)
--------------------------------------------------------- -------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Foothills West Apartments, 8.75%, 2/1/01 .......... 2/1/94 $ 2,067,544(b) $ 2,053,903 $ 1,952,509
Greenwood Residences, 7.75%, 4/1/08 ............... 3/12/98 2,354,202(b) 2,354,202 2,197,546
Hidden Colony Apartments, 8.00%, 4/1/01 ........... 3/22/94 3,145,701(b) 3,123,604 2,998,577
Hill Street Apartments, 11.50%, 3/1/08 ............ 3/24/00 1,199,302 1,199,302 1,159,559
Hunters Meadows Apartments, 8.25%, 2/1/03 1/18/96 5,021,431 4,967,932 4,938,880
Lakeville Apartments, 8.00%, 5/1/08 ............... 4/24/98 2,480,465(b) 2,480,465 2,364,776
LaPrada and Club at Springlake Apartments,
7.60%, 9/1/03 ................................... 8/27/98 14,579,595(b) 14,579,594 14,049,887
Meadow Glenn Apartments I, 8.50%, 2/1/07 .......... 1/30/97 2,261,987(b) 2,261,987 2,212,935
Meadow Glenn Apartments II, 13.00%, 2/1/07 ........ 6/28/99 399,039 399,039 418,991
Oak Valley, Canyon Creek and Regional Apartments I,
9.03%, 10/1/01 .................................. 9/30/98 5,979,412 5,979,412 6,003,521
Revere Apartments, 7.40%, 5/9/01 .................. 4/22/99 1,287,780 1,287,780 1,171,846
Sheridan Ponds Apartments, 8.70%, 1/1/07 .......... 12/18/96 7,235,270(b) 7,199,094 7,161,957
Sierra Vista Apartments, 9.50%, 2/1/01 ............ 1/18/94 1,315,995(b) 1,302,835 1,320,526
Sierra Vista Square Apartments I,
9.48%, 6/1/03 ................................... 5/16/00 4,450,000 4,450,000 4,602,969
Sierra Vista Square Apartments II,
12.00%, 6/1/03 .................................. 5/16/00 590,000 590,000 500,900
Somerset Place Apartments, 9.00%, 4/1/04 .......... 4/8/94 2,237,527(b) 2,220,746 2,222,456
The Oaks of Lake Bluff Apartments, 8.75%, 4/1/01 3/8/94 2,645,450(b) 2,618,523 2,653,357
Willow Creek Apartments I, 8.50%, 2/1/07 .......... 1/30/97 5,715,773(b) 5,715,773 5,605,048
Willow Creek Apartments II, 13.00%, 2/1/07 ........ 6/28/99 598,559 598,559 628,487
Woodvine Park Condominiums, 8.60%, 4/1/10 ......... 3/31/00 1,798,932 1,798,932 1,791,035
------------
88,606,068 87,029,095
------------
SINGLE FAMILY LOANS (9.3%):
Norwest IX, 8.00%, 5/1/22 ......................... 8/29/97 5,139,833 5,085,837 4,896,587
Norwest VIII, 8.06%, 8/4/22 ....................... 6/4/97 4,612,705 4,520,815 4,404,213
Norwest X, 7.98%, 4/1/23 .......................... 3/12/98 2,467,417 2,472,845 2,315,849
Norwest XVI, 7.97%, 11/1/26 . 3/4/99 632,255 614,552 601,594
Norwest XVII, 8.00%, 2/12/25 5/19/99 211,931 204,247 200,345
------------
12,898,296 12,418,588
------------
Total Whole Loans and Participation Mortgages 137,783,546 135,319,635
------------
RELATED PARTY MONEY MARKET FUND (1.1%):
First American Prime Obligations Fund ............. 5/31/00 1,461,750(f) 1,461,750 1,461,750
------------
Total Investments in Securities(g) ............. $179,628,549 $175,936,561
============
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
--------------------------------------------------------------------------------
14 2000 Semiannual Report - American Select Portfolio
<PAGE>
INVESTMENTS IN SECURITIES (Unaudited) (continued)
--------------------------------------------------------------------------------
Notes to Investments in Securities:
(a) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(b) ON MAY 31, 2000, SECURITIES VALUED AT $96,964,630 WERE PLEDGED AS
COLLATERAL FOR THE FOLLOWING OUTSTANDING REVERSE REPURCHASE AGREEMENTS:
<TABLE>
<CAPTION>
NAME OF
BROKER
ACQUISITION ACCRUED AND DESCRIPTION
AMOUNT DATE RATE* DUE INTEREST OF COLLATERAL
----------- ----------- ----- ------- -------- ---------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,000,000 5/15/00 7.45% 6/15/00 $ 13,235 (1)
12,871,000 5/15/00 6.53% 6/15/00 37,355 (1)
15,310,000 5/15/00 6.53% 6/15/00 44,433 (2)
2,500,000 5/19/00 7.49% 6/15/00 6,237 (2)
4,640,000 5/15/00 6.52% 6/15/00 13,446 (2)
4,765,000 5/15/00 6.52% 6/15/00 13,808 (3)
----------- --------
$44,086,000 $128,514
=========== ========
</TABLE>
* INTEREST RATE AS OF MAY 31, 2000. RATES ARE BASED ON THE LONDON
INTERBANK OFFERED RATE (LIBOR) AND RESET MONTHLY.
Name of broker and description of collateral:
(1) MORGAN STANLEY DEAN WITTER;
FHLMC, 7.50%, 12/1/29, $13,773,278 PAR
FNMA, 6.50%, 6/1/29, $17,269,683 PAR
(2) MORGAN STANLEY DEAN WITTER;
BRYANT SQUARE APARTMENTS, 8.13%, 4/1/01, $1,108,841 PAR
CAPE COD APARTMENTS, 7.40%, 2/1/08, $1,808,988 PAR
CASA DEL VISTA APARTMENTS, 8.75%, 1/1/01, $2,024,974 PAR
CENTRE COURT, WHITE OAKS AND GREEN ACRES APARTMENTS, 8.75%,
1/1/09, $4,084,769 PAR
COTTONWOOD VILLAS APARTMENTS, 9.78%, 10/1/01, $1,645,000 PAR
EL CONQUISTADOR APARTMENTS, 7.75%, 4/1/09, $2,872,336 PAR
FOOTHILLS WEST APARTMENTS, 8.75%, 2/1/01, $2,067,544 PAR
GREENWOOD RESIDENCES, 7.75%, 4/1/08, $2,354,202 PAR
HIDDEN COLONY APARTMENTS, 8.00%, 4/1/01, $3,145,701 PAR
LAKEVILLE APARTMENTS, 8.00%, 5/1/08, $2,480,465 PAR
LAPRADA AND CLUB AT SPRINGLAKE APARTMENTS, 7.60%, 9/1/03,
$14,579,595 PAR
MEADOW GLENN APARTMENTS I, 8.50%, 2/1/07, $2,261,987 PAR
SHERIDAN PONDS APARTMENTS, 8.70%, 1/1/07, $7,235,270 PAR
SIERRA VISTA APARTMENTS, 9.50%, 2/1/01, $1,315,995 PAR
SOMERSET PLACE APARTMENTS, 9.00%, 4/1/04, $2,237,527 PAR
THE OAKS OF LAKE BLUFF APARTMENTS, 8.75%, 4/1/01, $2,645,450
PAR
WILLOW CREEK APARTMENTS I, 8.50%, 2/1/07, $5,715,773 PAR
(3) NOMURA;
FNMA, 7.50%, 5/1/30, $4,980,555 PAR
FNMA, 8.00%, 5/1/30, $5,000,000 PAR
(c) INTEREST RATES ON COMMERCIAL AND MULTIFAMILY LOANS ARE THE RATES IN
EFFECT ON MAY 31, 2000. INTEREST RATES AND MATURITY DATES DISCLOSED ON
SINGLE FAMILY LOANS REPRESENT THE WEIGHTED AVERAGE COUPON AND WEIGHTED
AVERAGE MATURITY FOR THE UNDERLYING MORTGAGE LOANS AS OF MAY 31, 2000.
(d) COMMERCIAL AND MULTIFAMILY LOANS ARE DESCRIBED BY THE NAME OF THE
MORTGAGED PROPERTY. POOLS OF SINGLE FAMILY LOANS ARE DESCRIBED BY THE
NAME OF THE INSTITUTION FROM WHICH THE LOANS WERE PURCHASED. THE
GEOGRAPHICAL LOCATION OF THE MORTGAGED PROPERTIES AND, IN THE CASE OF
SINGLE FAMILY, THE NUMBER OF LOANS, IS PRESENTED BELOW.
Commercial Loans:
ADVANCED CIRCUITS AND HOPKINS II BUSINESS CENTER - HOPKINS, MN
BROADWAY PLACE - ALBUQUERQUE, NM
CASE BUSINESS PARK - PHOENIX, AZ
COMMUNITY COFFEE OFFICE BUILDING - BATON ROUGE, LA
CORPORATE CENTER NORTHBOROUGH - HOUSTON, TX
GALTIER PLAZA - ST. PAUL, MN
OASIS AT THE WATERFRONT - SCOTTSDALE, AZ
PARKWAY BUSINESS CENTER - POWAY, CA
RODEO SHOPS - MIAMI, FL
THE KISLAK BUILDING - WOODBRIDGE TOWNSHIP, NJ
VICTORY PACKAGING FACILITY - PHOENIX, AZ
Multifamily Loans:
BRYANT SQUARE APARTMENTS - EDMUND, OK
CANDLELITE APARTMENTS - GRANDVIEW, MO
CAPE COD APARTMENTS - OKLAHOMA CITY, OK
CASA DEL VISTA APARTMENTS - CARSON CITY, NV
CASTLE ARMS APARTMENTS - AUSTIN, TX
CENTRE COURT, WHITE OAKS AND GREEN ACRES APARTMENTS - NORTH CANTON
AND MASSILLON, OH
CHAPEL HILL APARTMENTS - KANSAS CITY, MO
COTTONWOOD VILLAS APARTMENTS - MESA, AZ
EL CONQUISTADOR APARTMENTS - TUCSON, AZ
EVERGREEN, NORTHVIEW, GREENWOOD AND FERN COURT APARTMENTS -
BUFFALO, MN
FOOTHILLS WEST APARTMENTS - EL PASO, TX
GREENWOOD RESIDENCES - MITON, WA
HIDDEN COLONY APARTMENTS - DORAVILLE, GA
HILL STREET APARTMENTS - DENVER, CO
HUNTERS MEADOWS APARTMENTS - COLORADO SPRINGS, CO
LAKEVILLE APARTMENTS - LAKEVILLE, MN
LAPRADA AND CLUB AT SPRINGLAKE APARTMENTS - MESQUITE AND HAMILTON
CITY, TX
MEADOW GLENN APARTMENTS I - MIDWEST CITY, OK
MEADOW GLENN APARTMENTS II - MIDWEST CITY, OK
OAK VALLEY, CANYON CREEK AND REGIONAL APARTMENTS I - ARLINGTON, TX
REVERE APARTMENTS - REVERE, MA
SHERIDAN PONDS APARTMENTS - TULSA, OK
SIERRA VISTA APARTMENTS - BOISE, ID
SIERRA VISTA SQUARE APARTMENTS I - LAS VEGAS, NV
SIERRA VISTA SQUARE APARTMENTS II - LAS VEGAS, NV
SOMERSET PLACE APARTMENTS - TUCSON, AZ
THE OAKS OF LAKE BLUFF APARTMENTS - LAKE BLUFF, IL
WILLOW CREEK APARTMENTS I - MIDWEST CITY, OK
WILLOW CREEK APARTMENTS II - MIDWEST CITY, OK
WOODVINE PARK CONDOMINIUMS - HOUSTON, TX
Single Family Loans:
NORWEST IX - 50 LOANS, UNITED STATES
NORWEST VIII - 43 LOANS, UNITED STATES
NORWEST X - 19 LOANS, UNITED STATES
NORWEST XVI - 8 LOANS, UNITED STATES
NORWEST XVII - 2 LOANS, NORTH CAROLINA AND ARIZONA
(e) SECURITIES PURCHASED AS PART OF A PRIVATE PLACEMENT WHICH HAVE NOT
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE
SECURITIES ACT OF 1933 AND ARE CONSIDERED TO BE ILLIQUID. ON MAY 31,
2000, THE TOTAL MARKET VALUE OF THESE INVESTMENTS WAS $135,319,635 OR
101.8% OF TOTAL NET ASSETS.
(f) THIS MONEY MARKET FUND IS ADVISED BY U.S. BANK WHICH ALSO SERVES AS
ADVISOR FOR THIS FUND. SEE NOTE 2 IN THE NOTES TO FINANCIAL
STATEMENTS.
(g) ON MAY 31, 2000, THE COST OF INVESTMENTS IN SECURITIES FOR INCOME TAX
PURPOSES WAS $179,628,549. THE AGGREGATE GROSS UNREALIZED APPRECIATION
AND DEPRECIATION OF INVESTMENTS IN SECURITIES BASED ON THIS COST WERE
AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION ...... $ 616,731
GROSS UNREALIZED DEPRECIATION ...... (4,308,719)
-----------
NET UNREALIZED DEPRECIATION ...... $(3,691,988)
===========
</TABLE>
--------------------------------------------------------------------------------
15 2000 Semiannual Report - American Select Portfolio
<PAGE>
SHAREHOLDER UPDATE
--------------------------------------------------------------------------------
SHARE REPURCHASE PROGRAM
Your fund's board of directors has approved the
continuation of the fund's share repurchase program, which
enables the fund to "buy back" shares of its common stock
in the open market. Repurchases may only be made when the
previous day's closing market price per share was at a
discount from net asset value. Repurchases cannot exceed
5% of the fund's outstanding shares as of September 9,
1998.
WHAT EFFECT WILL THIS PROGRAM HAVE ON SHAREHOLDERS?
We do not expect any adverse impact on the advisor's
ability to manage the fund. Because repurchases will be at
a price below net asset value per share, remaining shares
outstanding may experience a slight increase in net asset
value per share. Although the effect of share repurchases
on the market price is less certain, the board of
directors believes the program may have a favorable effect
on the market price of fund shares. We do not anticipate
any material increase in the fund's expense ratio.
WHEN WILL SHARES BE REPURCHASED?
Share repurchases may be made from time to time and may be
discontinued upon six months notice to shareholders. Share
repurchases are not mandatory when fund shares are trading
at a discount from net asset value; all repurchases will
be at the discretion of the fund's investment advisor. The
board of directors' decision whether to continue the share
repurchase program will be reported in the next
shareholder report.
HOW WILL SHARES BE REPURCHASED?
We expect to finance the repurchase of shares by
liquidating portfolio securities or using current cash
balances. We do not anticipate borrowing in order to
finance share repurchases.
--------------------------------------------------------------------------------
16 2000 Semiannual Report - American Select Portfolio
<PAGE>
[LOGO] FIRST AMERICAN-Registered Trademark-
ASSET MANAGEMENT
AMERICAN SELECT PORTFOLIO
2000 SEMIANNUAL REPORT
[LOGO] This document is printed on paper
containing 30% post-consumer waste.
7/2000 3044-00
