NORTHERN FUNDS
MONEY MARKET FUND U.S. GOVERNMENT MONEY MARKET FUND MUNICIPAL MONEY MARKET
FUND U.S. GOVERNMENT SELECT MONEY MARKET FUND CALIFORNIA MUNICIPAL MONEY
MARKET FUND
SEMI-ANNUAL REPORT
September 30, 1997
TABLE OF CONTENTS
PAGE
Abbreviations and Other Information................................ 1
Money Market Funds
Statements of Assets and Liabilities ............................ 2
Statements of Operations ........................................ 3
Statements of Changes in Net Assets ............................ 4
Financial Highlights ............................................ 6
Schedules of Investments
Money Market Fund............................................. 9
U.S. Government Money Market Fund............................ 14
Municipal Money Market Fund.................................. 15
U.S. Government Select Money Market Fund..................... 26
California Municipal Money Market Fund....................... 27
Notes to the Financial Statements................................. 30
NOT FDIC-INSURED May lose value No bank guarantee
Northern Funds are not insured or guaranteed by the U.S. government, nor can
there be any assurance that the money market funds will be able to maintain a
stable net asset value of $1.00 per share.
Shares of Northern Funds are distributed by an independent third party, Sunstone
Distribution Services, LLC, and sold by The Northern Trust Company and its bank
affiliates.
ABBREVIATIONS AND
OTHER INFORMATION
With respect to the Schedules of Investments, the percentage shown for each
investment category reflects the value of investments in that category as a
percentage of total net assets.
Interest rates represent either the stated coupon rate, annualized yield on date
of purchase for discounted notes, or, for floating rate securities, the current
reset rate.
Prerefunding is a procedure in which a bond issuer floats a second bond in order
to pay off the first bond at the first call date. The proceeds from the sale of
the second bond are safely invested, usually in Treasury securities, that will
mature at the first call date of the first bond issue. Those first bonds are
said to be prerefunded after this operation has taken place.
Maturity dates represent the stated date on the security, the next interest
reset date for floating rate securities or the prerefunded date for these
types of securities.
EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULES OF INVESTMENTS
ADP Automated Data Processing
AMBAC American Municipal Bond
Assurance Corp.
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
BTP Banker's Trust Partnership
CGIC Capital Guaranty
Insurance Co.
COLLD. Collateralized
COP Certificate of Participation
CP Commercial Paper
CVP Central Valley Project
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty
Insurance Corp.
FHLB Federal Home Loan Bank
FMC Fidelity Mortgage Corp.
FNMA Fannie Mae
FRN Floating Rate Note
FSA Financial Security Assurance
G.O. General Obligation
GNMA Government National
Mortgage Association
GTD. Guaranteed
HFA Housing Finance Authority
IDA Industrial Development
Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance
Association
MTN Medium Term Note
P-FLOATS Puttable Floating Rate Security
PCR Pollution Control Revenue
PSF Permanent School Fund
RAN Revenue Anticipation Note
SFM Single Family Mortgage
SLMA SLM Holding Corp.
SOC GEN Societe Generale
TOB Tender Option Bond
TOCR Tender Option Custodial Receipt
TRAN Tax and Revenue
Anticipation Note
VRDN Variable Rate Demand Note
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUNDS
U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. MUNICIPAL SELECT MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
- -------------------------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $2,410,670 $194,996 $1,408,370 $205,925 $234,876
Repurchase agreements, at cost
which approximates market value 171,643 101,007 - - -
Cash 3 - 8 64 81
Income receivable 7,994 846 10,685 406 1,660
Receivable for fund shares sold 23,703 21,621 31,182 6,443 3,438
Receivable for securities sold - - 3,980 - 200
Receivable from Adviser 18 3 9 2 2
Deferred organization costs, net of
accumulated amortization 41 16 46 8 8
Prepaid and other assets 51 15 35 17 8
- -----------------------------------------------------------------------------------------------------------------------------
Total Assets 2,614,123 318,504 1,454,315 212,865 240,273
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 10,196 1,247 3,836 864 635
Payable for fund shares redeemed 31,349 5,002 35,349 448 8,908
Payable for securities purchased - - 7,300 - -
Accrued investment advisory fees 146 16 79 7 10
Accrued transfer agent fees 36 4 19 3 3
Accrued administration fees 34 2 44 2 1
Accrued custody and accounting fees 1 - 8 1 1
Accrued registration fees and other liabilities 57 23 67 13 21
- -----------------------------------------------------------------------------------------------------------------------------
Total Liabilities 41,819 6,294 46,702 1,338 9,579
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $2,572,304 $312,210 $1,407,613 $211,527 $230,694
=============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $2,572,223 $312,185 $1,407,575 $211,517 $230,685
Accumulated undistributed net
investment income 77 21 153 10 9
Accumulated undistributed net
realized gains (losses) 4 4 (115) - -
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $2,572,304 $312,210 $1,407,613 $211,527 $230,694
=============================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 2,572,296 312,205 1,407,657 211,526 230,694
NET ASSET VALUE, REDEMPTION AND OFFERING
PRICE PER SHARE $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
See Notes to the Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUNDS
U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. MUNICIPAL SELECT MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND
- --------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $52,522 $9,216 $27,590 $5,259 $3,868
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 5,496 988 4,287 569 619
Administration fees 1,374 247 1,072 143 155
Transfer agent fees 916 165 715 95 103
Custody and accounting fees 203 54 170 36 41
Registration fees 56 12 36 11 6
Professional fees 18 10 17 9 9
Amortization of organization costs 14 5 16 2 2
Trustees' fees and expenses 10 3 9 2 2
Other 68 43 60 10 10
- -----------------------------------------------------------------------------------------------------------------------------
Total Expenses 8,155 1,527 6,382 877 947
Less voluntary waivers of:
Investment advisory fees (1,832) (329) (1,429) (332) (310)
Administration fees (800) (134) (567) (81) (91)
Less: Reimbursement of expenses by Adviser (485) (159) (456) (84) (82)
- -----------------------------------------------------------------------------------------------------------------------------
Net Expenses 5,038 905 3,930 380 464
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 47,484 8,311 23,660 4,879 3,404
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES) ON:
Investments 3 4 (6) 1 -
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $47,487 $8,315 $23,654 $4,880 $3,404
=============================================================================================================================
See Notes to the Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
---------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1997 1997 1997 1997
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED)
- --------------------- ----------------------- -----------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 47,484 $ 64,325 $ 8,311 $ 11,819
Net realized gains (losses) on investments 3 1 4 -
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 47,487 64,326 8,315 11,819
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 5,700,246 7,318,021 752,283 1,755,453
Shares from reinvestment of dividends 6,439 6,771 1,411 2,684
Shares redeemed (4,741,571) (6,779,419) (755,747) (1,650,983)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Capital Share Transactions 965,114 545,373 (2,053) 107,154
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (47,484) (64,325) (8,311) (11,819)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 965,117 545,374 (2,049) 107,154
NET ASSETS:
Beginning of year 1,607,187 1,061,813 314,259 207,105
- -----------------------------------------------------------------------------------------------------------------------------
End of period $2,572,304 $1,607,187 $312,210 $314,259
=============================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $77 $77 $21 $21
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
MONEY MARKET FUNDS
U.S. GOVERNMENT
MUNICIPAL SELECT
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1997 1997 1997 1997
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED)
- --------------------- ----------------------- -----------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 23,660 $ 37,048 $ 4,879 $ 5,924
Net realized gains (losses) on investments (6) (109) 1 (1)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 23,654 36,939 4,880 5,923
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 3,503,656 6,319,359 527,797 483,126
Shares from reinvestment of dividends 2,466 2,651 1,623 2,092
Shares redeemed (3,518,544) (6,004,649) (486,022) (402,489)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Capital Share Transactions (12,422) 317,361 43,398 82,729
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (23,660) (37,048) (4,879) (5,924)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (12,428) 317,252 43,399 82,728
NET ASSETS:
Beginning of year 1,420,041 1,102,789 168,128 85,400
- -----------------------------------------------------------------------------------------------------------------------------
End of period $1,407,613 $1,420,041 $211,527 $168,128
=============================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $153 $153 $10 $10
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-------------------------
SIX MONTHS YEAR
ENDED ENDED
SEPT. 30, MAR. 31,
1997 1997
AMOUNTS IN THOUSANDS (UNAUDITED)
- --------------------- -------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 3,404 $ 5,177
Net realized gains (losses) on investments - -
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 3,404 5,177
- ------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 618,861 1,517,961
Shares from reinvestment of dividends 417 337
Shares redeemed (589,573) (1,482,396)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Capital Share Transactions 29,705 35,902
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (3,404) (5,177)
- ------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 29,705 35,902
NET ASSETS:
Beginning of year 200,989 165,087
- ------------------------------------------------------------------------------------------
End of period $230,694 $200,989
==========================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $9 $9
==========================================================================================
See Notes to the Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
----------------------------------------- ----------------------------------------------
SIX MONTHS YEAR YEAR PERIOD SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, SEPT. 30, MAR. 31, MAR. 31, MAR. 31,
1997 1997 1996 1995<F1> 1997 1997 1996 1995<F1>
(UNAUDITED) (UNAUDITED)
- ------------------------- ----------------------------------------- ----------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.05 0.05 0.04 0.03 0.05 0.05 0.04
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.04) (0.03) (0.05) (0.05) (0.04)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==================================================================================================================================
TOTAL RETURN<F3> 2.62% 5.05% 5.57% 4.55% 2.56% 4.93% 5.46% 4.47%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end
of period $2,572,304 $1,607,187 $1,061,813 $894,279 $312,210 $314,259 $207,105 $227,543
Ratio to average net
assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.49% 0.45% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.90% 0.91% 0.96% 0.93% 0.96% 0.94% 1.01%
Net investment income, net of
waivers and reimbursements 5.18% 4.94% 5.42% 4.94% 5.05% 4.82% 5.33% 4.93%
Net investment income, before
waivers and reimbursements 4.84% 4.59% 5.00% 4.43% 4.67% 4.41% 4.88% 4.37%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
U.S. GOVERNMENT
MUNICIPAL SELECT
MONEY MARKET MONEY MARKET
FUND FUND
----------------------------------------- ----------------------------------------------
SIX MONTHS YEAR YEAR PERIOD SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, SEPT. 30, MAR. 31, MAR. 31, MAR. 31,
1997 1997 1996 1995<F1> 1997 1997 1996 1995<F2>
(UNAUDITED) (UNAUDITED)
- ------------------------- ----------------------------------------- ----------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.03 0.03 0.03 0.03 0.05 0.05 0.02
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.03) (0.03) (0.03) (0.03) (0.05) (0.05) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
==================================================================================================================================
TOTAL RETURN<F3> 1.67% 3.14% 3.54% 2.90% 2.60% 5.07% 5.55% 1.75%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end
of period $1,407,613 $1,420,041 $1,102,789 $927,747 $211,527 $168,128 $85,400 $82,162
Ratio to average net
assets of<F4>:
Expenses, net of waivers and
reimbursements 0.55% 0.55% 0.49% 0.45% 0.40% 0.40% 0.33% 0.30%
Expenses, before waivers and
reimbursements 0.89% 0.90% 0.91% 0.95% 0.95% 0.97% 1.00% 1.32%
Net investment income, net of
waivers and reimbursements 3.31% 3.08% 3.46% 3.10% 5.31% 4.95% 5.43% 5.84%
Net investment income, before
waivers and reimbursements 2.97% 2.73% 3.04% 2.60% 4.76% 4.38% 4.76% 4.82%
- ----------------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> Commenced investment operations on April 11, 1994.
<F2> Commenced investment operations on December 12, 1994.
<F3> Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a
complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods
less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-----------------------------------------------------
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31,
1997 1997 1996 1995<F1>
(UNAUDITED)
- ------------------------ -----------------------------------------------------
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03 0.04 0.01
- ---------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.03) (0.04) (0.01)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
=========================================================================================================
TOTAL RETURN<F2> 1.67% 3.19% 3.63% 1.27%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $230,694 $200,989 $165,087 $161,316
Ratio to average net assets of<F3>:
Expenses, net of waivers and
reimbursements 0.45% 0.45% 0.39% 0.35%
Expenses, before waivers and
reimbursements 0.92% 0.94% 0.94% 1.07%
Net investment income, net of
waivers and reimbursements 3.30% 3.13% 3.55% 3.78%
Net investment income, before
waivers and reimbursements 2.83% 2.64% 3.00% 3.06%
- ---------------------------------------------------------------------------------------------------------
<FN>
<F1> Commenced investment operations on November 29, 1994.
<F2> Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a
complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods
less than one year.
<F3> Annualized for periods less than a full year.
See Notes to the Financial Statements.
</TABLE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 14.0%
DOMESTIC CERTIFICATES OF DEPOSIT - 3.3%
$25,000 Bankers Trust New York Corp.,
5.88%, 7/14/98 $24,994
First Tennessee Bank
15,000 5.51%, 10/3/97 15,000
20,000 5.58%, 12/23/97 20,000
25,000 Huntington National Bank, Columbus,
5.89%, 9/18/98 24,993
------------
84,987
------------
FOREIGN CERTIFICATES OF DEPOSIT - 10.7%
Bank of Tokyo-Mitsubishi, London Branch
10,000 5.63%, 11/17/97 10,000
13,000 5.63%, 11/24/97 13,000
12,000 Bankers Trust Co., London Branch,
5.67%, 11/20/97 12,001
15,000 Barclays Bank, New York Branch,
5.94%, 6/25/98 14,994
2,000 Commerzbank, New York Branch,
5.58%, 11/21/97 2,000
15,000 Credito Italiano, London Branch,
5.60%, 10/28/97 15,000
10,000 National Westminster Bank, New York
Branch, 5.94%, 6/26/98 9,996
20,000 Norinchukin Bank, New York Branch,
5.69%, 10/10/97 20,000
10,000 Sanwa Bank, London Branch,
5.65%, 11/24/97 10,000
15,000 Sanwa Bank, New York Branch,
5.66%, 11/3/97 15,000
Societe Generale, New York Branch
6,000 5.80%, 1/13/98 5,998
10,000 5.87%, 3/3/98 9,998
26,000 5.89%, 7/17/98 25,994
15,000 5.84%, 8/21/98 14,992
Sumitomo Bank, New York Branch
22,000 5.68%, 10/31/97 22,000
5,000 5.66%, 11/10/97 5,000
5,000 5.65%, 11/17/97 5,000
30,000 Svenska Handlesbanken, London Branch,
5.63%, 11/17/97 30,001
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
FOREIGN CERTIFICATES OF DEPOSIT - 10.7% (CONT'D.)
$33,000 Toronto Dominion Bank, London Branch,
5.61%, 10/10/97 $ 33,000
------------
273,974
------------
Total Certificates of Deposit
(cost $358,961) 358,961
------------
COMMERCIAL PAPER - 56.2%
ASSET BACKED SECURITIES - 27.3%
5,000 Ascot Capital Corp.,
5.55%, 10/14/97 4,990
6,378 Atlantic Asset Securitization Corp.,
5.65%, 10/17/97 6,362
18,000 Budget Funding Corp.,
5.52%, 10/16/97 17,959
1,300 Centric Funding,
5.60%, 12/16/97 1,285
3,000 Corporate Receivables Corp.,
5.55%, 11/7/97 2,983
37,500 CPI Funding,
5.59%, 11/25/97 37,180
10,000 CXC, Inc.,
5.55%, 10/15/97 9,978
27,500 Duke Capital Corp.,
5.55%, 10/6/97 27,479
Eureka Securitization, Inc.
20,000 5.55%, 10/10/97 19,972
12,900 5.55%, 12/18/97 12,745
Four Winds Funding Corp.
11,260 5.55%, 10/17/97 11,232
5,135 5.54%, 11/17/97 5,098
Galleon Capital Corp.
10,000 5.55%, 10/24/97 9,965
5,000 5.60%, 10/27/97 4,980
Gotham Funding Corp.
5,000 5.60%, 10/7/97 4,995
5,000 5.60%, 10/16/97 4,988
13,000 5.625%, 10/16/97 12,970
2,000 5.56%, 10/17/97 1,995
International Securitization Corp.
5,000 5.55%, 10/15/97 4,989
13,148 5.53%, 10/16/97 13,118
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
ASSET BACKED SECURITIES - 27.3% (CONT'D.)
Lexington Parker Capital Company LLC
$10,485 5.55%, 10/7/97 $10,475
25,000 5.55%, 10/7/97 24,977
5,000 5.55%, 10/22/97 4,984
16,174 5.60%, 11/4/97 16,088
20,000 Mont Blanc Capital Corp.,
5.55%, 10/17/97 19,951
15,000 Monte Rosa Capital Corp.,
5.55%, 10/21/97 14,954
10,762 Nebhelp Capital Services, Inc.,
5.65%, 10/2/97 10,760
15,000 NFC Asset Trust,
5.55%, 10/3/97 14,995
16,007 Old Line Funding Corp.,
5.70%, 10/3/97 16,001
Park Avenue Receivables Corp.
3,665 5.54%, 10/10/97 3,660
27,273 5.55%, 10/15/97 27,214
17,129 5.58%, 10/20/97 17,079
2,585 Pooled Account Receivables Corp.,
5.65%, 10/21/97 2,577
5,421 Ranger Funding Corp.,
5.65%, 10/6/97 5,417
Receivables Capital Corp.
9,521 5.55%, 10/10/97 9,508
29,739 5.55%, 10/16/97 29,670
ROSE, Inc.
26,081 5.54%, 10/2/97 26,077
6,400 5.55%, 10/21/97 6,380
19,000 5.59%, 10/21/97 18,941
35,000 5.54%, 10/29/97 34,849
14,000 SALTS (II) Cayman Islands Corp.,
5.77%, 12/18/97 14,000
30,000 SALTS (III) Cayman Islands Corp.,
5.94%, 1/23/98 30,000
10,200 Sheffield Receivables Corp.,
5.55%, 11/14/97 10,131
25,000 Special Purpose Accounts Receivable
Cooperative Corp., 5.55%, 10/20/97 24,927
2,000 SRD Finance, Inc.,
5.57%, 10/23/97 1,993
11,278 Thames Assets Global Securitization,
5.55%, 10/10/97 11,262
15,000 Three Rivers Funding Corp.,
5.53%, 10/9/97 14,982
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
ASSET BACKED SECURITIES - 27.3% (CONT'D.)
$20,000 Trident Capital Finance, Inc.,
5.55%, 10/1/97 $ 20,000
Variable Funding Capital Corp.
600 5.57%, 10/10/97 599
14,254 5.57%, 10/20/97 14,211
10,000 5.60%, 11/7/97 9,942
20,000 WCP Funding, Inc.,
5.55%, 10/14/97 19,960
347 Windmill Funding Corp.,
5.55%, 10/22/97 346
------------
702,173
------------
BUSINESS SERVICES - 2.1%
Sanwa Business Credit Corp.
10,000 5.53%, 10/6/97 9,992
35,000 5.60%, 10/6/97 34,973
10,000 5.55%, 12/15/97 9,884
------------
54,849
------------
DOMESTIC DEPOSITORY INSTITUTIONS - 0.5%
12,000 ABC Funding,
5.55%, 11/24/97 11,900
------------
ELECTRIC SERVICES - 0.5%
11,700 CSW Credit, Inc.,
5.65%, 10/16/97 11,672
------------
ENTERTAINMENT - 1.0%
Tribune Co.
5,000 5.53%, 10/2/97 4,999
20,000 5.53%, 10/14/97 19,960
------------
24,959
------------
FOOD AND BEVERAGES - 0.5%
8,400 Cofco Capital Corp.,
5.55%, 10/17/97 8,379
6,000 PepsiCo, Inc.,
5.65%, 10/6/97 5,995
------------
14,374
------------
FOREIGN DEPOSITORY INSTITUTIONS - 2.4%
15,000 Creditanstalt Finance, Inc.,
5.52%, 10/31/97 14,931
1,335 Hailfax Building Society,
5.52%, 12/23/97 1,318
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
FOREIGN DEPOSITORY INSTITUTIONS - 2.4% (CONT'D.)
$25,000 Nationwide Building Society,
5.50%, 10/28/97 $24,897
20,000 Swedbank, Inc.,
5.55%, 11/3/97 19,898
------------
61,044
------------
GENERAL MERCHANDISE STORES - 0.9%
25,000 Sears Roebuck Acceptance Corp.,
5.55%, 3/13/98 24,372
------------
HEALTH SERVICES - 0.6%
Columbia/HCA Healthcare Corp.
10,000 5.60%, 10/6/97 9,992
6,000 5.58%, 10/10/97 5,992
------------
15,984
------------
INSURANCE COMPANIES - 2.5%
AON Corp.
17,000 5.54%, 10/17/97 16,958
10,000 5.55%, 10/23/97 9,966
10,000 5.55%, 10/27/97 9,960
10,833 5.55%, 10/30/97 10,785
Torchmark, Inc.
7,500 5.60%, 10/10/97 7,490
3,700 5.57%, 11/17/97 3,673
5,000 5.55%, 11/24/97 4,958
------------
63,790
------------
MUNICIPAL AGENCIES - 0.5%
13,300 Texas Municipal Power Agency,
5.75%, 10/14/97 13,300
------------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS - 3.1%
15,000 BEX America Finance, Inc.,
5.55%, 10/14/97 14,970
3,250 Countrywide Home Loans,
5.60%, 10/29/97 3,236
Finova Capital Corp.
10,000 5.60%, 10/1/97 10,000
1,000 5.55%, 10/16/97 998
19,300 5.55%, 11/7/97 19,190
9,900 5.55%, 11/14/97 9,833
22,000 Heller Financial, Inc.,
5.65%, 12/16/97 21,738
------------
79,965
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
NONDEPOSITORY PERSONAL CREDIT INSTITUTIONS - 0.3%
$ 7,350 MEPC Finance, Inc.,
5.60%, 12/4/97 $ 7,277
------------
SECURITY AND COMMODITY BROKER DEALERS - 1.3%
Morgan Stanley, Dean Witter, Discover & Co.
300 5.55%, 10/2/97 300
15,000 5.55%, 10/6/97 14,989
19,000 5.51%, 10/24/97 18,933
------------
34,222
------------
TRANSPORTATION PARTS AND EQUIPMENT - 9.3%
BMW US Capital Corp.
20,000 5.55%, 11/7/97 19,886
30,000 5.53%, 11/12/97 29,806
36,000 5.55%, 12/15/97 35,584
40,000 Ford Credit Canada Ltd.,
5.55%, 11/18/97 39,704
General Motors Acceptance Corp.
10,000 5.55%, 10/2/97 9,998
15,000 5.65%, 10/8/97 14,984
2,400 5.55%, 11/5/97 2,387
3,400 5.55%, 11/12/97 3,378
10,000 5.57%, 12/3/97 9,903
10,000 5.59%, 3/12/98 9,748
25,000 5.58%, 3/31/98 24,299
Mitsubishi Motors Credit of America, Inc.
12,000 5.57%, 10/1/97 12,000
20,000 5.59%, 10/1/97 20,000
3,000 5.55%, 10/7/97 2,997
3,589 Volkswagen of America, Inc.,
5.65%, 10/17/97 3,580
------------
238,254
------------
WHOLESALE TRADE - DURABLE GOODS - 3.4%
Newell Co.
5,000 5.65%, 10/1/97 5,000
6,625 5.60%, 10/10/97 6,616
30,000 5.55%, 10/17/97 29,926
25,000 5.55%, 10/22/97 24,919
10,000 5.60%, 10/27/97 9,960
10,000 Sinochem American Holdings, Inc.,
5.55%, 11/10/97 9,938
------------
86,359
------------
Total Commercial Paper
(cost $1,444,494) 1,444,494
------------
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
CORPORATE BONDS - 8.7%
$25,000 Associates Corporation N.A.,
5.73%, 3/2/98 $ 24,992
20,000 Bayerische Landesbank,
6.15%, 8/14/98 20,042
7,250 Chapel Oaks, Inc.,
5.90%, 10/1/97 7,250
CIT Group Holdings
3,000 8.75%, 4/15/98 3,038
10,000 6.75%, 4/30/98 10,046
26,000 First Wachovia Bank,
6.10%, 4/6/98 25,987
1,861 GE Engine Receivables 1995-1 Trust,
5.565%, 10/15/97 1,861
15,607 GE Engine Receivables 1996-1 Trust,
5.646%, 10/15/97 15,607
2,000 General Motors Acceptance Corp.,
7.50%, 11/4/97 2,003
14,000 Huntington National Bank, Columbus,
5.80%, 9/22/98 13,990
5,000 Key Bank N.A.,
5.58%, 12/15/97 4,942
20,000 Key Bank N.A., Fixed Rate Note,
6.19%, 4/13/98 19,994
30,000 Key Bank N.A., FRN,
5.55%, 3/19/98 30,000
20,000 Morgan Guaranty Trust Co.,
5.97%, 6/22/98 19,995
18,600 Physicians Plus Medical Group,
5.70%, 10/1/97 18,600
6,000 SunTrust Banks, Inc.,
5.83%, 7/14/98 5,998
------------
Total Corporate Bonds
(cost $224,345) 224,345
------------
EURODOLLAR TIME DEPOSITS - 9.6%
50,000 Banque Brussels Lambert, Grand
Cayman Islands, 6.50%, 10/1/97 50,000
30,000 Banque Paribas Lambert, Grand
Cayman Islands, 6.50%, 10/1/97 30,000
33,000 Credit Suisse First Boston, Grand
Cayman Islands, 6.50%, 10/1/97 33,000
45,000 Norddeutsche Landesbank Girozentrale,
6.50%, 10/1/97 45,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
EURODOLLAR TIME DEPOSITS - 9.6% (CONT'D.)
$90,000 Union Bank of Switzerland, Grand
Cayman Islands, 6.50%, 10/1/97 $ 90,000
------------
Total Eurodollar Time Deposits
(cost $248,000) 248,000
------------
GUARANTEED INVESTMENT
CONTRACTS - 1.9%
25,000 General American Life Insurance Co.,
5.86%, 10/23/97 25,000
10,000 Integrity Life Insurance Co.,
5.95%, 10/1/97 10,000
15,000 Transamerica Life Insurance
and Annuity Co., 5.66%, 10/1/97 15,000
------------
Total Guaranteed Investment Contracts
(cost $50,000) 50,000
------------
MUNICIPAL INVESTMENTS - 3.3%
14,000 Flint, Michigan Hospital Building
Authority, 5.65%, 10/1/97 14,000
3,900 Health Insurance Plan of Greater
New York, 5.48%, 10/1/97 3,900
9,000 Hydro-Quebec Corp., 5.741%, 1/15/98 9,000
12,500 New Jersey Economic Development
Authority, 5.66%, 10/1/97 12,500
9,360 Seattle, Washington Limited Tax G.O.,
5.45%, 10/1/97 9,360
10,000 Stanislaus County, California Pension
Obligation, 5.756%, 2/15/98 10,000
10,215 State of Texas-Veterans Land Bond,
5.756%, 12/1/97 10,215
12,745 State of Virginia, Housing Development
Authority Multi-Family Housing Bond,
5.756%, 11/1/97 12,745
3,150 Waukesha, Wisconsin Health
Systems, Inc., 5.65%, 10/1/97 3,150
------------
Total Municipal Investments
(cost $84,870) 84,870
------------
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS - 6.7%
$40,000 Bear, Stearns & Co., dated 9/30/97,
repurchase price $40,007 (Colld. by U.S.
Government Securities),
6.70%, 10/1/97 $ 40,000
31,643 Donaldson, Lufkin & Jenrette Securities,
Inc., dated 9/30/97, repurchase price
$31,648 (Colld. by U.S. Government
Securities), 6.25%, 10/1/97 31,643
25,000 J.P. Morgan Securities, Inc.,
dated 9/30/97, repurchase price $25,004
(Colld. by U.S. Government Securities),
5.90%, 10/1/97 25,000
75,000 SBC Capital Markets, dated 9/30/97,
repurchase price $75,012 (Colld. by U.S.
Government Securities),
5.92%, 10/1/97 75,000
------------
Total Repurchase Agreements
(cost $171,643) 171,643
------------
Total Investments - 100.4%
(cost $2,582,313) 2,582,313
Liabilities less Other Assets - (0.4)% (10,009)
------------
NET ASSETS - 100.0% $2,572,304
===========
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 62.5%
FEDERAL FARM CREDIT BANK - 3.2%
FFCB MTN
$3,000 5.75%, 7/1/98 $ 2,997
7,000 5.70%, 9/2/98 6,992
------------
9,989
------------
FEDERAL HOME LOAN BANK - 42.6%
FHLB MTN
6,000 5.72%, 7/7/98 5,998
12,000 5.72%, 7/21/98 11,998
FHLB Discount Notes
100,000 6.00%, 10/1/98 100,000
15,000 5.68%, 10/23/98 14,948
------------
132,944
------------
FANNIE MAE - 4.2%
5,000 FNMA Discount Note,
5.68%, 10/20/97 4,985
FNMA MTN
5,000 5.89%, 5/21/98 4,997
3,000 5.63%, 8/14/98 2,994
------------
12,976
------------
OVERSEAS PRIVATE INVESTMENT CO. - 5.8%
18,000 FRN, 5.58%, 10/1/97 18,000
------------
SLM HOLDING CORP. - 6.7%
SLMA MTN
7,500 5.54%, 2/25/98 7,498
6,000 5.86%, 6/10/98 5,996
3,000 5.63%, 8/6/98 2,997
1,600 5.60%, 8/11/98 1,597
3,000 5.79%, 9/16/98 2,998
------------
21,086
------------
Total U.S. Government Agencies
(cost $194,995) 194,995
------------
NUMBER VALUE
OF SHARES (000S)
- ----------------------------------------------------------------------
OTHER - 0.0%
1 Dreyfus Prime Money Market Fund
(cost $1) $ 1
------------
PRINCIPAL
AMOUNT
(000S)
- ----------------------------------------------------------------------
REPURCHASE AGREEMENTS - 32.3%
$26,007 Donaldson, Lufkin & Jenrette Securities,
Inc., dated 9/30/97, repurchase price
$26,012 (Colld. by U.S. Government
Securities), 6.25%, 10/1/97 26,007
23,000 J.P. Morgan Securities, Inc.,
dated 9/30/97, repurchase price $23,004
(Colld. by U.S. Government Securities),
5.90%, 10/1/97 23,000
52,000 SBC Capital Markets, dated 9/30/97,
repurchase price $52,008 (Colld. by U.S.
Government Securities),
5.92%, 10/1/97 52,000
------------
Total Repurchase Agreements
(cost $101,007) 101,007
------------
Total Investments - 94.8%
(cost $296,003) 296,003
Other Assets less Liabilities - 5.2% 16,207
------------
NET ASSETS - 100.0% $ 312,210
============
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.8%
ALABAMA - 2.4%
$ 1,800 City of Ashland Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.25%, 10/7/97 $ 1,800
1,575 City of Columbia Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.25%, 10/7/97 1,575
700 City of Greenville IDR VRDN,
Series 1992, Allied-Signal Project
(FMC Corp. Gtd.), 4.20%, 10/7/97 700
2,700 City of Selma IDR VRDN,
Series 1996 A, Meadowcraft, Inc. Project
(NationsBank LOC), 4.30%, 10/7/97 2,700
4,300 City of Stevenson Environment
Improvement IDR VRDN, Series 1996 (AMT),
Mead Corp. Project (Soc Gen LOC),
3.95%, 10/1/97 4,300
2,575 County of Geneva Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.25%, 10/7/97 2,575
20,500 County of Phenix Environment
Improvement IDR VRDN,
Series 1990 A (AMT), Mead Corp. Project
(Sumitomo Bank Ltd. LOC),
4.00%, 10/1/97 20,500
------------
34,150
------------
ALASKA - 1.0%
8,200 Alaska Housing Finance Corp.,
Series PT-37, Merrill P-Floats
(Banque Nationale Paris LOC),
4.10%, 10/7/97 8,200
5,000 Alaska Industrial Development and
Export Authority, Series 1996 B (AMT)
(Seafirst Bank LOC), 4.10%, 10/7/97 5,000
------------
13,200
------------
ARIZONA - 0.5%
3,000 City of Salt River Improvement and Power
Agricultural Project, 3.80%, 10/3/97 3,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
ARIZONA - 0.5% (CONT'D.)
$ 1,400 County of Apache IDR VRDN
(AMT), Imperial Components, Inc.
Project (Harris Trust & Savings Bank
LOC), 4.20%, 10/7/97 $ 1,400
2,700 Special Fund of the Industrial
Commission of Arizona CP,
3.85%, 12/8/97 2,700
------------
7,100
------------
ARKANSAS - 0.4%
3,250 City of Lowell IDR VRDN, Series 1996
(AMT), Little Rock Newspapers, Inc.
Project (Bank of New York LOC),
4.20%, 10/7/97 3,250
2,200 City of West Memphis IDR VRDN (AMT),
Proform Co. LLC Project
(First Bank LOC), 4.30%, 10/7/97 2,200
------------
5,450
------------
CALIFORNIA - 2.4%
2,746 City of Los Angeles IDR VRDN,
Series BTP-129 (Colld. by U.S. Government
Securities), 3.80%, 12/8/97 2,746
10,600 County of Irvine Ranch Consolidated
Water District VRDN, Series 1993 B,
Districts 2, 102, 103, 106, 3(203) & 206
(Morgan Guaranty Trust Co. LOC),
3.75%, 10/1/97 10,600
5,000 County of Los Angeles TRAN,
Series A, 4.50%, 6/30/98 5,024
9,420 County of Riverside TRAN, Series A,
4.50%, 6/30/98 9,456
State of California G.O. Bond
(FGIC Insured)
200 Series CR-152, 4.13%, 10/7/97 200
800 Series CR-153, 4.13%, 10/7/97 800
2,000 State of California G.O. Bond,
Series A3 (First Chicago Bank LOC),
4.30%, 10/7/97 2,000
3,000 State of California G.O. Bond,
Series SG-91, Merrill Floating Rate Receipts,
4.10%, 10/7/97 3,000
------------
33,826
------------
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
COLORADO - 1.4%
$ 4,800 City and County of Denver
Airport System, Series 1997 A (AMT),
3.75%, 10/17/97 $ 4,800
9,900 Colorado HFA SFM VRDN,
Series 1996 C-1 (AMT), 4.18%, 10/7/97 9,900
5,000 Colorado HFA VRDN (AMT), Metal Sales
Manufacturing Corp. Project,
4.30%, 10/7/97 5,000
------------
19,700
------------
DELAWARE - 0.1%
1,325 State of Delaware Economic Development
Authority PCR VRDN, Allied-Signal Corp.
Project (FMC Corp. Gtd.), 4.20%, 10/7/97 1,325
------------
DISTRICT OF COLUMBIA - 1.7%
District of Columbia Metro Airport
Authority Passenger Facility CP (AMT)
15,000 4.00%, 11/17/97 15,000
5,000 3.78%, 11/18/97 5,000
4,000 3.84%, 12/17/97 4,000
------------
24,000
------------
FLORIDA - 6.4%
7,600 City of Jacksonville Electric Authority CP,
Series D-1, 3.60%, 11/7/97 7,600
10,300 City of Jacksonville PCR, Series 1994,
Florida Power and Light Project,
3.65%, 10/17/97 10,300
2,550 County of Alachua Health Facilities
Authority, Academic Research Building
Project (Barnett Bank LOC),
3.75%, 11/18/97 2,550
2,350 County of Dade Resource Recovery Facility
Refunding Revenue Bond, Series 1996
(AMT) (AMBAC Insured), 4.00%, 10/1/97 2,350
4,950 County of Duval HFA Mortgage Revenue
VRDN, Series 1996-3A (AMT), Clipper
Trust Certificate, 4.28%, 10/7/97 4,950
1,300 County of Highlands Health Facilities
VRDN, Series 1996 A, Adventist Health
System, 4.10%, 10/7/97 1,300
5,200 County of Orange HFA Series 1987 A
(Colld. by GNMA Securities),
4.18%, 10/7/97 5,200
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
FLORIDA - 6.4% (CONT'D.)
Florida State Board of Education Capital
Outlay VRDN
$ 8,860 Series BTP-52 ADP Class B,
4.25%, 10/7/97 $ 8,860
6,595 Series BTP-233, 3.80%, 12/8/97 6,595
13,000 Florida State Board of Education
G.O. Bond, Series 1989 A, Eagle Trust,
3.70%, 12/1/97 13,000
1,400 Florida State Board of Education VRDN,
Series 1994 E, Eagle Trust, 4.23%, 10/7/97 1,400
7,585 State of Florida Department of
Environmental Protection VRDN,
Series 1994 A BTP-64 (MBIA Insured),
4.25%, 10/7/97 7,585
18,600 Sunshine State Government Finance
Commission, Series 1986 (Union Bank
of Switzerland LOC), 3.60%, 11/19/97 18,600
------------
90,290
------------
GEORGIA - 2.5%
3,000 City of Savannah Economic Development
Authority, Series 1997 (AMT), Kaolin
Terminals Project (NationsBank LOC),
4.25%, 10/7/97 3,000
5,300 County of Clayton IDA IDR (AMT),
Blue Circle Aggregates, Inc. Project
(Denmark Danske Bank LOC),
4.25%, 10/7/97 5,300
3,000 County of Clayton Housing Authority
Revenue (AMT), Williamsburg South
Apartments Project (PNC Bank LOC),
4.20%, 10/7/97 3,000
5,200 County of DeKalb Housing Authority
Revenue VRDN, Series 1995 (AMT), Cedar
Creek Apartment Project (General Electric
Capital Corp. LOC), 4.25%, 10/7/97<F1> 5,200
1,400 County of Elbvert Development Authority
IDR VRDN, Series 1992, Allied-Signal
Project (FMC Corp. Gtd.), 4.20%, 10/7/97 1,400
2,500 County of Floyd IDA (AMT), Marglens
Industries, Inc. Project (SunTrust Banks,
Inc. LOC), 4.25%, 10/7/97 2,500
2,000 County of Fulton Development Authority,
General Motors Corp. Project,
4.15%, 10/7/97 2,000
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
GEORGIA - 2.5% (CONT'D.)
$4,150 County of Henry Development Authority,
Series 1997 (AMT), Atlas Roofing Corp.
Project (SunTrust Banks, Inc. LOC),
4.25%, 10/7/97 $ 4,150
Georgia HFA Conventional Mortgage TOB
(AMT), Various Programs
3,900 Series C, 3.80%, 12/1/97 3,900
1,575 Series D, 3.80%, 12/1/97 1,575
3,000 Georgia Municipal Gas Authority,
Series B, Gas Portfolio II Project (Morgan
Guaranty Trust Co. LOC), 4.15%, 10/7/97 3,000
------------
35,025
------------
ILLINOIS - 9.4%
7,000 City of Bolingbrook Multifamily Housing,
Series 1997 A (AMT), Amberton Apartments
Project (LaSalle National Bank LOC),
4.25%, 10/7/97 7,000
3,000 City of Chicago Board of Education FRN,
School Reform Equipment Acquisition,
4.10%, 12/1/97 3,002
2,700 City of Chicago IDR, Series B (AMT),
Guernsey Bel, Inc. Project (Harris Trust
& Savings Bank LOC), 4.20%, 10/7/97 2,700
4,500 City of Chicago Midway Airport
Revenue VRDN, Series 1995 (AMT),
American Trans Air, Inc. Project (National
Bank of Detroit LOC), 4.25%, 10/7/97 4,500
2,500 City of Chicago O'Hare International
Airport Revenue VRDN, Series 1988 A
(AMT) (Bayerische Landesbank LOC),
4.20%, 10/7/97 2,500
1,855 City of Des Plaines IDR VRDN,
Series 1996 (AMT), Finzer Roller, Inc. Project
(Harris Trust & Savings Bank LOC),
4.20%, 10/7/97 1,855
3,950 City of Frankfort IDR, Series 1996 (AMT),
Bimba Manufacturing Co. Project
(Harris Trust & Savings Bank LOC),
4.20%, 10/7/97 3,950
1,195 City of Joliet G.O. Bond, 4.00%, 1/1/98 1,196
2,500 City of Romeoville IDR VRDN,
Series 1997 (AMT), Metropolitan Industries,
Inc. Project (Harris Trust & Savings Bank
LOC), 4.20%, 10/7/97 2,500
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
ILLINOIS - 9.4% (CONT'D.)
$ 6,000 City of Savanna IDR VRDN, Series 1994
(AMT), Metform Corp. Project (First
National Bank of Chicago LOC),
4.15%, 10/7/97 $ 6,000
1,755 Illinois Development Finance Authority
IDR VRDN (AMT), Bimba Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.20%, 10/7/97 1,755
3,950 Illinois Development Finance Authority
IDR VRDN, Enterprise Office Campus
(FNMA LOC), 3.90%, 12/1/97 3,950
2,400 Illinois Development Finance Authority
IDR VRDN, Series 1997 A (AMT), Randall
Metals Corp. Project (LaSalle National
Bank LOC), 4.35%, 10/7/97 2,400
1,400 Illinois Development Finance Authority
VRDN, Series 1990 (AMT), Solar Press, Inc.
Project (First National Bank of Chicago
LOC), 4.15%, 10/7/97 1,400
1,700 Illinois Development Finance Authority
VRDN, WBEZ Alliance, Inc. Project
(LaSalle National Bank LOC),
4.05%, 10/7/97 1,700
2,500 Illinois Educational Facilities Authority
VRDN, Series 1996, The Art Institute of
Chicago Project, 4.10%, 10/7/97 2,500
7,000 Illinois Health Facilities Authority VRDN,
Series 1985 B, Evanston Hospital Corp.
Project (First National Bank of Chicago
LOC), 3.75%, 1/31/98 7,000
5,285 Illinois Health Facilities Authority VRDN,
Series 1997, Glenkirk Project (Harris Trust
& Savings Bank LOC), 4.10%, 10/7/97 5,285
Illinois Housing Development Authority
Homeowner Mortgage (AMT)
10,300 Series 1996 F-2, 3.70%, 12/18/97 10,300
15,000 Series 1997 B-2, 4.15%, 7/7/98 15,000
Illinois Housing Development Authority
Residential Mortgage Program (AMT)
5,320 Series 1987-C, 3.75%, 2/1/98 5,320
2,100 Series 1987-D, 3.85%, 2/1/98 2,100
1,795 Series 1987-E, 3.75%, 2/1/98 1,795
15,806 Illinois Metropolitan Pier and Exposition
Authority Dedicated Sales Tax Revenue,
Series BTP-230-A, 3.82%, 1/28/98 15,806
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
ILLINOIS - 9.4% (CONT'D.)
$10,000 Pooled Puttable Float Option (AMT),
Series PT6, Various State and Housing
Agencies, 4.075%, 11/1/97 $ 10,000
7,500 Village of Ladd IDR VRDN, Series 1996
(AMT), O'Neal Metals, Inc. Project
(NationsBank LOC), 4.30%, 10/7/97 7,500
3,150 Village of Niles IDR VRDN, Series 1996
(AMT), Lewis Spring and Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.20%, 10/7/97 3,150
------------
132,164
------------
INDIANA - 2.9%
2,790 City of Anderson Economic Development
VRDN, Series 1996 (AMT), Gateway Village
Project (FHLB LOC), 4.25%, 10/7/97 2,790
1,500 City of Greencastle IDR VRDN, Series 1996
(AMT), Crown Equipment Corp. Project
(Mellon Bank LOC), 4.25%, 10/7/97 1,500
2,640 City of Hammond Economic Development
VRDN, Series 1996 A (AMT), Annex at
Douglas Point Project (FHLB LOC),
4.25%, 10/7/97 2,640
60,000 City of Indianapolis Local Public
Improvement Revenue Bond, Series D,
Capital Appreciation, Prerefunded,
0.00%, 2/1/98 11,325
4,000 City of Rushville Economic Development
VRDN (AMT), Fujitsu Ten Corp. of America
Project, 4.20%, 10/7/97 4,000
3,100 City of Shelbyville Economic Development
VRDN, Series DTC 2794 (AMT),
Nippisun Indiana Corp. Project
(Industrial Bank of Japan LOC),
4.70%, 10/7/97 3,100
2,000 County of Jasper PCR, Series 1988D,
Northern Indiana Public Service Project,
3.70%, 12/12/97 2,000
5,655 County of Sullivan PCR,
Series L5, National Rural Hoosier,
3.65%, 11/20/97 5,655
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
INDIANA - 2.9% (CONT'D.)
Indiana Development Finance Authority
IDR VRDN (AMT), Red Gold, Inc. Project
(Harris Trust & Savings Bank LOC)
$3,900 Series 1994 A, 4.20%, 10/7/97 $ 3,900
3,200 Series 1994 B, 4.20%, 10/7/97 3,200
------------
40,110
------------
IOWA - 0.1%
Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT), Cedar River Paper Co.
Project (Swiss Bank Corp. LOC)
700 Series 1995 A, 4.10%, 10/1/97 700
1,100 Series 1997 A, 4.10%, 10/1/97 1,100
------------
1,800
------------
KANSAS - 0.6%
7,000 City of Topeka Temporary Notes,
Series A, 4.00%, 7/15/98 7,005
1,500 County of Johnson G.O. School District
No. 512, Series B, Shawnee Mission
Project, 6.75%, 10/1/97 1,500
------------
8,505
------------
KENTUCKY - 5.0%
1,000 City of Greenville IDR VRDN,
Wetterau, Inc. Project, 4.10%, 10/7/97 1,000
1,000 City of Hopkinsville Industrial Building
VRDN, Series A (AMT), CoPar, Inc. Project
(Dai-Ichi Kangyo Bank LOC),
4.50%, 10/7/97 1,000
2,000 City of Mayfield Lease Revenue VRDN,
Series 1996, Kentucky League of Cities
Pooled Project (PNC Bank LOC),
4.20%, 10/7/97 2,000
Counties of Louisville and Jefferson VRDN
(AMT), Regional Airport Authority System
7,000 Series 1997 A-1, 4.20%, 10/7/97 7,000
5,000 Series 1997 AA-1, 4.20%, 10/7/97 5,000
3,951 County of Carroll Solid Waste Disposal
Revenue VRDN (AMT), North American
Stainless Project (Banco Bilbao Vizcaya LOC),
4.25%, 10/7/97 3,951
3,265 County of Clark Industrial Building IDR
VRDN, Series 1996 (AMT), Bluegrass Art
Cast Project (Bank One LOC),
4.25%, 10/7/97 3,265
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
KENTUCKY - 5.0% (CONT'D.)
$ 5,000 County of Clark PCR, Series J-2,
East Kentucky Power Project,
3.75%, 10/15/97 $ 5,000
County of Daviess Waste Disposal Facility
IDR VRDN (AMT), Scott Paper Co. Project
(Kimberly-Clark Corp. Gtd.)
3,400 Series 1993 A, 3.95%, 10/1/97 3,400
10,800 Series 1993 B, 3.95%, 10/1/97 10,800
8,500 Series 1994 A, 3.95%, 10/1/97 8,500
10,000 Kentucky Interlocal School Transportation
Association TRAN, 4.09%, 6/30/98 10,002
9,500 Kentucky Rural Water Finance Corp. Notes,
Series 1996, Public Construction Project,
4.375%, 4/1/98 9,524
------------
70,442
------------
LOUISIANA - 1.8%
2,200 Ascension Parish VRDN, Series 1995
(AMT), BASF Corp. Project, 4.10%, 10/1/97 2,200
Louisiana HFA Mortgage Revenue Bond (AMT)
(Colld. by U.S. Government Securities)
5,530 Series CR-85, 3.90%, 11/1/97 5,530
2,995 Series CR-86, 3.90%, 11/1/97 2,995
7,915 Louisiana Public Facilities Authority PCR
VRDN, Series 1992, Allied-Signal Project
(FMC Corp. Gtd.), 4.20%, 10/7/97 7,915
2,200 Parish of Caddo IDR VRDN, General Motors
Corp. Project (General Motors Corp. Gtd.),
4.15%, 10/7/97 2,200
4,000 South Louisiana Port Commission, Series
1997 (AMT), Holnam, Inc. Project,
4.20%, 10/7/97 4,000
------------
24,840
------------
MAINE - 0.4%
5,000 Maine Public Utility Finance Bank
Revenue VRDN, Series 1996 (AMT),
Maine Public Service Co. Project (Bank of
New York LOC), 4.20%, 10/7/97 5,000
------------
MARYLAND - 1.1%
3,300 City of Baltimore IDR VRDN, Series 1986,
Capital Acquisition Program (Dai-Ichi
Kangyo Bank LOC), 4.30%, 10/7/97 3,300
9,000 County of Montgomery CP BAN,
Series 1995, 3.70%, 10/7/97 9,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
MARYLAND - 1.1% (CONT'D.)
$ 11 Maryland State Community
Development Administration, Series
PT-12, Merrill P-Floats (Commerzbank A.G.
LOC), 4.10%, 10/1/97 $ 11
1,200 Maryland State Health and Higher
Educational Facilities Authority Revenue
VRDN (NationsBank LOC),
4.10%, 10/7/97 1,200
1,500 Maryland State IDA, Townsend Culinary,
Inc. Project (SunTrust Banks, Inc. LOC),
4.20%, 10/7/97 1,500
------------
15,011
------------
MASSACHUSETTS - 0.4%
4,030 Massachusetts State HFA VRDN, Series
1996-5A (AMT), Clipper Trust Certificate
(AMBAC Insured), 4.28%, 10/7/97 4,030
2,200 Massachusetts State HFA VRDN, Series
PA-132 (AMT), Harbor Point Project,
4.25%, 10/7/97 2,200
------------
6,230
------------
MICHIGAN - 2.6%
6,000 City of Detroit School District State School
Aid Notes, Series 1997, 4.50%, 5/1/98 6,020
3,000 County of Midland Economic Development
Corp., Series 1993 A (AMT), Dow Chemical
Corp. Project, 4.10%, 10/1/97 3,000
5,000 Michigan State Building Authority CP,
Series 1, 3.70%, 10/9/97 5,000
7,000 Michigan Strategic Fund Ltd. PCR,
ATS-Dow Chemical Co. Project,
3.60%, 11/5/97 7,000
6,900 Michigan Strategic Fund Ltd. VRDN, Series
1992 (AMT), Dow Chemical Co. Project
(Dow Chemical Gtd.), 4.00%, 10/1/97 6,900
2,330 Michigan Strategic Fund Ltd. VRDN (AMT),
Kruger Commodities, Inc. Project (Harris
Trust & Savings Bank LOC),
4.20%, 10/7/97 2,330
2,890 Michigan Strategic Fund Ltd. VRDN, Four D
Investment Co. Project (Comerica Bank
LOC), 4.25%, 10/7/97 2,890
4,000 State of Michigan TRAN, Series 1997 B,
4.50%, 7/2/98 4,019
------------
37,159
------------
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
MINNESOTA - 0.2%
$ 3,060 County of Stearns Housing &
Redevelopment Authority VRDN
(AMT), Cold Spring Granite Co. Project
(First Bank LOC), 4.30%, 10/7/97 $ 3,060
------------
MISSISSIPPI - 0.7%
9,325 State of Mississippi G.O. Refunding
Bonds, Series BTP-207, 4.00%, 3/30/98 9,325
------------
MISSOURI - 3.3%
8,000 City of St. Louis TRAN, Series 1997,
4.50%, 6/30/98 8,037
7,000 County of Perry IDR VRDN, Series 1996
(AMT), T.G. (USA) Corp. Project
(Bank of Tokyo-Mitsubishi LOC),
4.20%, 10/7/97 7,000
4,000 County of St. Louis IDR, Series PA-120,
P-Floats, 4.25%, 10/7/97 4,000
1,500 Missouri Higher Education Loan Authority
VRDN (National Westminster LOC),
Series 1990 A, 4.10%, 10/7/97 1,500
10,800 Missouri Higher Education Loan Authority
VRDN, Series 1991 B (AMT)
(MBIA Insured), 4.00%, 10/7/97 10,800
6,410 Missouri Housing Development VRDN,
Series 1994 A (AMT), Merrill P-Floats
PA-116 (Colld. by U.S. Government
Securities), 4.25%, 10/7/97 6,410
8,860 Missouri State TOCR G.O. VRDN,
Series A, 4.35%, 10/7/97 8,860
------------
46,607
------------
MONTANA - 3.6%
Montana Board of Housing SFM VRDN,
Merrill P-Floats
3,920 Series 1996-A-2, PT-87, 4.25%, 10/7/97 3,920
4,000 Series 1997, PA-158, 4.25%, 10/7/97 4,000
43,100 Montana Board of Investment Resources
Recovery Revenue VRDN (AMT), Colstrip
Energy L.P. Project (Credit Locale de
France LOC), 4.10%, 10/7/97 43,100
------------
51,020
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
NEBRASKA - 0.5%
$4,000 Nebraska Investment Finance Authority
IDA IDR VRDN, Series 1989 (AMT),
Fremont Beef Project (Sanwa Bank LOC),
4.50%, 10/7/97 $ 4,000
2,835 Nebraska Investment Finance Authority
GNMA Mortgage SFM Revenue TOB,
Series B, 3.80%, 1/15/98 2,835
------------
6,835
------------
NEW YORK - 2.2%
City of New York Municipal Water
Finance Authority VRDN
6,300 Series A1, 4.13%, 10/7/97 6,300
9,345 Series A2, 4.13%, 10/7/97 9,345
Marine Midland Premium Loan Trust
VRDN COP (Hong Kong and Shanghai
Banking Corp. LOC)<F1>
7,300 Series 1991 A, 4.10%, 10/7/97 7,300
271 Series 1991 B, 4.20%, 10/7/97 271
5,800 New York State Environmental Facilities
Corp. PCR VRDN, Series No. 94302,
Eagle Trust-Weekly (CGIC Insured),
4.18%, 10/7/97 5,800
2,565 Pooled VRDN, P-Floats, Series PPT2,
3.75%, 10/7/97 2,565
------------
31,581
------------
NORTH CAROLINA - 2.2%
5,900 Capital Regional Airport Commission
Passenger Facility Charge Revenue VRDN
(AMT) (First Union National Bank of
Charlotte LOC), 4.25%, 10/7/97 5,900
2,500 County of Brunswick PCR IDR VRDN,
Series 1996 (AMT), Armada Project
(NationsBank LOC), 4.25%, 10/7/97 2,500
8,900 County of Catawba PCR IDR, Series 1996
(AMT), Hooker Furniture Corp. Project
(NationsBank LOC), 4.25%, 10/7/97 8,900
2,500 County of Mecklenburg PCR IDR VRDN,
Series 1996 (AMT), SteriGenics
International Project (Comerica Bank
LOC), 4.10%, 10/7/97 2,500
6,300 North Carolina Medical Care Community
Hospital Revenue, ACES-Pooled Equipment
Financing Project (MBIA Insured),
3.85%, 10/7/97 6,300
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
NORTH CAROLINA - 2.2% (CONT'D.)
$ 800 North Carolina Medical Care Community
VRDN, Series 1998, Park Ridge Hospital
Project (NationsBank LOC),
4.10%, 10/7/97 $ 800
3,900 North Carolina State Ports Authority
VRDN, Series 1996 (AMT), Morehead
City Terminals, Inc. (NationsBank LOC),
4.25%, 10/7/97 3,900
------------
30,800
------------
NORTH DAKOTA - 0.5%
2,100 County of Mercer Solid Waste Disposal
Revenue (AMT), National Rural Utilities-
United Power Project, 3.80%, 12/1/97 2,100
5,000 North Dakota HFA Revenue, Series 1996 E
(AMT), Home Mortgage Program
(Bayerische Landesbank Gtd.),
4.45%, 4/2/98 5,012
------------
7,112
------------
OHIO - 2.5%
2,500 County of Union IDR VRDN (AMT),
Union Aggregates Co. Project
(PNC Bank LOC), 4.25%, 10/7/97 2,500
6,825 Dublin Inn Tax-Exempt Mortgage IDR
Adjustable Rate Certificate, Series 1987
(Huntington National Bank LOC),
4.57%, 4/2/98 6,825
4,000 State of Ohio Air Quality Development
Authority, Series A, Pollution Control-
Duquesne (Union Bank of Switzerland
LOC), 3.95%, 7/10/98 4,000
5,355 State of Ohio HFA VRDN, Series 1989 A
(AMT), 4.35%, 10/7/97 5,355
1,940 State of Ohio Higher Education Facility
Revenue TOB, Series BTP-29 ADP, Class B
(MBIA Insured), 4.12%, 10/7/97<F2> 1,940
5,875 State of Ohio Infrastructure Improvement
VRDN, Series 1994, BTP-170,
3.80%, 1/15/98 5,875
8,910 State of Ohio Public Facilities Commission
Series 2A BTP-237, Higher Education
Facilities Project, 4.15%, 11/1/97 8,910
------------
35,405
------------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
OKLAHOMA - 1.9%
$ 1,400 City of Muskogee Industrial PCR Trust,
Series 1997 A, Oklahoma Gas & Electric
Co. Project, 4.20%, 10/7/97 $ 1,400
7,245 City of Tulsa Airport Improvement
VRDN, Series B-1 (AMT), 4.23%, 10/7/97 7,245
7,820 Oklahoma Housing Finance Agency SFM
Revenue, Series PT-78 (AMT), P-Floats,
3.90%, 10/7/97 7,820
10,695 Oklahoma Water Resources Board,
Series 1994 A, State Loan Program,
(Swiss Bank Corp. Gtd.), 3.75%, 3/2/98 10,695
------------
27,160
------------
OREGON - 1.2%
5,000 City of Portland Multifamily Revenue
VRDN, Series 1996 (AMT), Union Station
Project - Phase B (US National Bank LOC),
4.25%, 10/7/97 5,000
1,600 City of Portland Sewer System Revenue,
Series PA-169, P-Floats, 4.15%, 10/7/97 1,600
4,820 County of Multnomah School District
G.O. Bond, Series 1996 BTP-208,
3.75%, 10/21/97 4,820
1,100 Metropolitan Service District Riedel Oregon
Compost Waste Disposal VRDN (AMT)
(US National Bank LOC), 4.30%, 10/7/97 1,100
3,900 Oregon State Economic Development
Revenue, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Commerzbank A.G.
LOC), 4.15%, 10/7/97 3,900
------------
16,420
------------
PENNSYLVANIA - 8.5%
2,800 City of Philadelphia IDR,
Series 1988, Franklin Institute Project
(PNC Bank LOC), 4.10%, 10/7/97 2,800
City of Philadelphia School District TRAN
20,000 Series 1997, 4.50%, 6/30/98 20,079
5,000 Series 1997 A, 4.50%, 6/30/98 5,018
8,700 County of Allegheny IDR CP,
Series 1985, US Steel Corp. Project
(Commerzbank A.G. LOC),
3.65%, 11/7/97 8,700
3,200 County of Allegheny IDR CP,
Series 1986, US Steel Corp. Project
(Dresdner Bank A.G. LOC),
3.60%, 11/6/97 3,200
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
PENNSYLVANIA - 8.5% (CONT'D.)
$11,500 County of Montgomery IDR PCR
(Deutsche Bank A.G. LOC),
3.75%, 12/8/97 $ 11,500
13,000 County of Montgomery IDR PCR CP,
Series 1996 A, Peco Energy Co. Project
(Canadian Imperial Bank LOC),
3.80%, 10/9/97 13,000
2,250 County of Washington IDR,
Series 1996 (AMT), Accutrex Products,
Inc. Project (Mellon Bank LOC),
4.30%, 10/7/97 2,250
Delaware Valley Regional Finance
Authority Local Government Revenue
VRDN (Midland Bank PLC LOC)
2,000 Series 1985 A, 4.15%, 10/7/97 2,000
1,000 Series 1985 C, 4.15%, 10/7/97 1,000
4,000 Series 1997 A, 3.80%, 12/4/97 4,000
3,700 Pennsylvania Economic Development
Finance Authority IDR VRDN, Series
1996 A1-8 (AMT) (PNC Bank LOC),
4.25%, 10/7/97 3,700
Pennsylvania Higher Education
Assistance Agency VRDN (AMT),
Student Loan Program (SLMA LOC)
14,500 Series 1994 A, 4.10%, 10/7/97 14,500
19,500 Series 1995 A, 4.10%, 10/7/97 19,500
8,500 Series 1997 A, 4.10%, 10/7/97 8,500
------------
119,747
------------
RHODE ISLAND - 0.2%
3,000 Rhode Island Housing and Mortgage
Finance Corp., Series 22-B (AMT),
Homeownership Opportunity Project
(FGIC Insured), 3.70%, 12/2/97 3,000
------------
SOUTH CAROLINA - 0.7%
4,700 County of Cherokee IDR VRDN,
Series 1989 (AMT), Oshkosh Truck
Corp. Project (NationsBank LOC),
4.30%, 10/7/97 4,700
County of Lexington IDR VRDN,
Allied-Signal Project (FMC Corp. Gtd.)
200 Series 1992, 4.20%, 10/7/97 200
900 Series 1992 A, 4.20%, 10/7/97 900
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
SOUTH CAROLINA - 0.7% (CONT'D.)
$ 4,500 University of South Carolina Athletic
Facilities Revenue BAN, 4.00%, 2/26/98 $ 4,506
------------
10,306
------------
SOUTH DAKOTA - 1.8%
8,410 South Dakota Economic Development
Finance Authority VRDN, Series 1996
(AMT), Hastings Filters, Inc. Project
(Harris Trust & Savings Bank LOC),
4.20%, 10/7/97 8,410
South Dakota Housing Development
Authority Homeowner Mortgage VRDN
(AMT), Merrill P-Floats
2,320 Series PA-119, 4.25%, 10/7/97 2,320
14,225 Series PT-73-A, 4.15%, 10/7/97 14,225
------------
24,955
------------
TENNESSEE - 4.5%
1,200 City of Greeneville IDR VRDN, Series
1993, Pet, Inc. Project (Credit Suisse LOC),
4.10%, 10/7/97 1,200
6,000 City of Jackson Waste Facility IDR VRDN,
Series 1995 (AMT), Florida Steel Corp.
Project (NationsBank LOC), 4.25%, 10/7/97 6,000
1,000 City of Morristown IDR VRDN, Series 1997,
BOS Automotive Products, Inc. (Bayerische
Vereinsbank LOC), 4.25%, 10/7/97 1,000
5,000 Counties of Nashville and Davidson
Housing VRDN (AMT), Old Hickory Towers
Project (FHLB LOC), 4.30%, 10/7/97 5,000
1,500 County of Dickson IDR VRDN, Series
1996 (AMT), Tennessee Bun Co. LLC
Project (PNC Bank LOC), 4.25%, 10/7/97 1,500
1,400 County of Hamilton IDR VRDN, Series
1995, Tennessee Aquarium Project (Bank
of New York LOC), 4.10%, 10/7/97 1,400
4,960 County of Montgomery Public Building
Authority Adjustable Loan Pool, Series 1996
(NationsBank LOC), 4.10%, 10/7/97 4,960
2,000 County of Shelby G.O. Bond, Series 1996 B,
4.25%, 10/7/97 2,000
4,890 County of Shelby G.O. FRN, Series B BTP,
3.70%, 11/6/97 4,890
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
TENNESSEE - 4.5% (CONT'D.)
$ 1,000 County of Shelby Health and Education
Authority (AMT), Arbor Lake Project
(PNC Bank LOC), 4.25%, 10/7/97 $ 1,000
8,550 State of Tennessee G.O. TOB,
Series 1997 BTP-242, 4.20%, 10/7/97 8,550
7,500 State of Tennessee Housing Development
Agency, Series 1997-2 (AMT), Homeowner
Program, 4.00%, 6/4/98 7,500
18,200 Volunteer State Student Funding Corp.
Student Loan Revenue, Series 1988 A-2
(AMT) (Sumitomo Bank LOC),
4.15%, 10/7/97 18,200
------------
63,200
------------
TEXAS - 12.2%
1,100 Brazos River Authority, Series 1997 (AMT),
Houston Light and Power Co. Project
(AMBAC Insured), 4.10%, 10/1/97 1,100
Brazos River Harbor Navigation District
PCR VRDN, Dow Chemical Co. Project
1,500 Series 1987, 3.75%, 11/12/97 1,500
2,000 Series 1988 (AMT), 3.85%, 12/16/97 2,000
Brazos River Harbor Navigation District
VRDN (AMT), BASF Corp. Project
(BASF Corporation Gtd.)
1,000 Series 1996, 4.10%, 10/1/97 1,000
1,100 Series 1997, 4.10%, 10/1/97 1,100
1,500 Capital Industrial Development Corp. IDR,
Series 1985, W.L. Gore & Associates, Inc.
Project (Morgan Guaranty Trust LOC),
3.75%, 12/4/97 1,500
3,300 Cities of Hurst, Euless and Bedford
Independent School Districts Floating Rate
Receipts, Series SG-98, 4.20%, 10/7/97 3,300
5,000 City of Austin Combined Utility Systems
CP, Series 1997, 3.70%, 11/19/97 5,000
2,525 City of Austin Independent School District
Building VRDN, Series 1996 SG-68 (PSF of
Texas Gtd.), 4.20%, 10/7/97 2,525
3,500 City of El Paso Housing Finance Corp.
VRDN, Series 1993 (AMT), Viva Apartments
Project (General Electric Corp. LOC),
4.30%, 10/7/97 3,500
11,000 City of Fort Worth Water and Sewer System
Revenue, Series 1990 A, 3.85%, 11/13/97 11,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
TEXAS - 12.2% (CONT'D.)
City of Houston Water & Sewer System TOB
(MBIA Insured)
$10,000 Series A, 3.80%, 10/6/97 $10,000
3,455 Series 1992 C, BTP-54, 4.31%, 10/7/97<F2> 3,455
11,245 City of Pearland Independent School
District G.O., Series 1997 SG-106
(Soc Gen LOC), 4.20%, 10/7/97 11,245
9,880 City of San Antonio Electric and Gas
Revenue Merrill Lynch Trust Receipts,
Series 1997 SG-107, 4.20%, 10/7/97 9,880
5,000 County of Calhoun Navigation IDR VRDN
(AMT), Formosa Plastics Corp. U.S.A.
(Bank of America LOC), 4.20%, 10/7/97 5,000
6,500 County of Denton Independent School
District G.O., Series B (PSF of Texas Gtd.),
3.90%, 8/15/98 6,500
3,800 County of Harris Toll Road Unlimited
VRDN, Series 1994 A, Citicorp Eagle Trust
No. 954302, 4.23%, 10/7/97<F2> 3,800
Gulf Coast Waste Disposal Authority
VRDN (AMT), Amoco Oil Co. Project
(Amoco Oil Company Gtd.)
2,300 Series 1991, 3.80%, 4/1/98 2,300
1,800 Series 1994, 4.00%, 10/1/97 1,800
5,000 North Harris Montgomery Community
College District G.O., Series 1997
(FGIC Insured), 3.89%, 1/15/98 5,001
North Texas Higher Education Authority
VRDN (AMT), Student Loan Program
(SLMA LOC)
10,000 Series 1993 A, 4.10%, 10/7/97 10,000
5,000 Series 1996 A, 4.10%, 10/7/97 5,000
25,000 Port Development of Corpus Christi
Solid Waste Disposal, Series 1997 (AMT),
Koch Refining Co. Project, 4.35%, 10/7/97 25,000
14,450 Port Development of Corpus Christi
Union Pacific Corp. Project,
4.10%, 10/23/97 14,450
4,700 Sabine River Authority PCR VRDN,
Series 1995 C (AMT), Texas Utilities Electric
Co. Project (Union Bank of Switzerland
LOC), 4.20%, 10/1/97 4,700
1,600 Sherman Independent School District
G.O., Series 1985 A, 4.20%, 10/7/97 1,600
5,000 State of Texas TRAN, Series 1997 A,
4.75%, 8/31/98 5,040
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
TEXAS - 12.2% (CONT'D.)
$ 6,545 Texas Department of Housing and
Community Affairs SFM, Series PA-128
(AMT), Merrill P-Floats,
4.25%, 10/7/97 $ 6,545
6,580 Texas Veterans Housing Program VRDN,
Series 1994 D PT-83 (AMT), Merrill
P-Floats, 3.85%, 10/7/97 6,580
------------
171,421
------------
UTAH - 2.2%
31,200 Utah State Board of Regents VRDN, Series
1996 Q (AMT), Student Loan Program
(AMBAC Insured), 4.10%, 10/7/97 31,200
------------
VIRGINIA - 1.6%
3,200 City of Norfolk G.O. VRDN, Eagle Trust
No. 944601, 4.23%, 10/7/97<F1> 3,200
1,500 County of Bedford IDR, Nekoosa Packaging
Project (Canadian Imperial Bank LOC),
4.20%, 10/7/97 1,500
2,100 County of Botetourt IDR VRDN (AMT),
Valley Forge Company Project (Harris
Trust & Savings Bank LOC),
4.20%, 10/7/97 2,100
2,000 County of Charles Solid Waste Disposal
Facility IDR (AMT), Chambers Development,
Inc. Project (Morgan Guaranty LOC),
4.05%, 10/7/97 2,000
9,500 County of Grant Waste Disposal, Series
1996 (AMT), Virginia Electric Power Co.
Project, 3.85%, 10/30/97 9,500
3,900 State of Virginia G.O. VRDN, Series 1994,
Citicorp Eagle Trust No. 954601,
4.23%, 10/7/97<F2> 3,900
------------
22,200
------------
WASHINGTON - 1.2%
3,000 City of Grandview Public Corp. IDR, Series
1989 (AMT), Shonan USA Project (Bank
of America LOC), 4.20%, 10/7/97 3,000
2,000 City of Kent Economic Development Corp.
IDR VRDN, Associated Grocers Project
(Seattle-First National Bank LOC),
4.50%, 10/30/97 2,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
WASHINGTON - 1.2% (CONT'D.)
$12,520 Washington Public Power Supply System
Revenue, Series 1990 B, Nuclear Project
No. 2, Prerefunded, 3.80%, 1/14/98 $12,520
------------
17,520
------------
WEST VIRGINIA - 0.4%
3,000 County of Marion Waste Disposal IDR
VRDN, Series 1990 B (AMT), Granttown
Project (National Westminster Bank LOC),
4.15%, 10/7/97 3,000
2,000 County of Ritchie IDR VRDN (AMT),
Simonton Building Products, Inc. Project
(PNC Bank LOC), 4.25%, 10/7/97 2,000
------------
5,000
------------
WISCONSIN - 4.6%
3,165 City of Elkhorn Area School District
BAN, 4.25%, 4/1/98 3,169
1,100 City of Franklin Public School District
BAN, 4.35%, 4/1/98 1,102
4,435 City of Kaukauna Area School District
BAN, 4.35%, 2/26/98 4,439
3,905 City of Milwaukee G.O. Bond, Series B7,
4.00%, 2/15/98 3,910
9,000 City of Milwaukee RAN, Series A,
4.25%, 2/19/98 9,021
3,300 City of Milwaukee Redevelopment VRDN,
Series 1996 (AMT), Starline Manufacturing,
Inc. (Harris Trust & Savings Bank LOC),
4.20%, 10/7/97 3,300
4,290 City of Pewaukee IDR VRDN, Series 1992
(AMT), HUSCO International, Inc. Project
(Bank One LOC), 4.15%, 10/7/97 4,290
8,210 State of Wisconsin G.O. Bond,
Series 1996 A, 3.75%, 10/21/97 8,210
1,900 Wisconsin Health and Education Revenue
Bond, Series 1994 A, Sinai Samaritan
Medical Center Project (M&I Bank LOC),
4.15%, 10/7/97 1,900
3,645 Wisconsin Health and Education Revenue
Bond, Series 1997, Froedtert Memorial
Lutheran Hospital Trust, 4.15%, 10/7/97 3,645
5,000 Wisconsin Housing and Economic
Development Authority Revenue Floating
Rate Trust Receipts, Series 1997-18 (AMT),
4.40%, 10/7/97 5,000
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
WISCONSIN - 4.6% (CONT'D.)
Wisconsin Housing and Economic
Development Authority Revenue VRDN,
Home Ownership Revenue Program
$ 3,875 Series 1991 A, 3.85%, 3/1/98 $ 3,875
13,305 Series 1991 B (AMT), 3.85%, 3/1/98 13,305
------------
65,166
------------
Total Municipal Investments
(cost $1,404,367) 1,404,367
------------
NUMBER
OF SHARES
(000S)
- ----------------------------------------------------------------------
OTHER - 0.3%
130 AIM Tax-Free Money Market Fund 130
800 Dreyfus Tax Exempt Cash Management
Fund 800
647 Federated Tax Free Trust Money Market
Fund No. 15 647
500 Federated Tax Free Trust
Money Market Fund No. 73 500
1,587 Provident Municipal Cash Fund (AMT) 1,587
339 Provident Municipal Fund 339
------------
Total Other
(cost $4,003) 4,003
------------
Total Investments - 100.1%
(cost $1,408,370) 1,408,370
Liabilities less Other Assets - (0.1)% (757)
------------
NET ASSETS - 100.0% $ 1,407,613
============
<F1> These private placement securities may require registration under the
Securities Act of 1933 or an exemption therefrom in order to effect sale
in the ordinary course of business. At September 30, 1997, the value of
these securities amounted to approximately $15,971,000 or 1.1% of net
assets.
<F2> Securities exempt from registration under Rule 144A of the Securities
Exchange Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
September 30, 1997, the value of these securities amounted to
approximately $13,095,000 or 0.9% of net assets.
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 97.3%
FEDERAL FARM CREDIT BANK - 5.3%
FFCB Discount Notes
$ 3,700 5.69%, 10/1/97 $ 3,700
7,500 5.75%, 7/1/98 7,492
------------
11,192
------------
FEDERAL HOME LOAN BANK - 83.7%
FHLB Discount Notes
21,600 5.42%, 10/1/97 21,600
25,000 5.90%, 10/1/97 25,000
83,585 6.00%, 10/1/97 83,585
10,000 5.60%, 10/27/97 9,960
16,000 5.39%, 11/7/97 15,911
2,000 5.595%, 11/13/97 1,987
10,000 5.395%, 11/19/97 9,927
FHLB Bonds
4,000 5.96%, 6/9/98 3,999
5,000 5.715%, 7/21/98 4,999
------------
176,968
------------
SLM HOLDING CORP. - 8.3%
SLMA MTN
1,500 5.535%, 2/25/98 1,500
3,000 5.86%, 6/10/98 2,998
3,000 5.60%, 8/11/98 2,993
4,000 5.79%, 9/16/98 3,997
6,000 5.82%, 9/16/98 6,003
------------
17,491
------------
Total U.S. Government Agencies
(cost $205,651) 205,651
------------
NUMBER
OF SHARES VALUE
(000S) (000S)
- ----------------------------------------------------------------------
OTHER - 0.1%
274 Dreyfus Prime Money Market Fund
(cost $274) $ 274
------------
Total Investments - 97.4%
(cost $205,925) 205,925
Other Assets less Liabilities - 2.6% 5,602
------------
NET ASSETS - 100.0% $211,527
============
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 101.0%
CALIFORNIA - 96.9%
$ 2,975 City and County of San Francisco
Variable Rate Certificates, Series C-6,
4.13%, 10/7/97 $ 2,975
City of Chula Vista IDR, San Diego
Gas & Electric Company
1,050 Series 1996 A, 4.15%, 10/1/97 1,050
10,000 Series 1997 B, 3.90%, 10/1/97 10,000
1,300 City of Irvine Limited Obligation
Improvement Assessment Bond
District 94-15, 3.70%, 10/1/97 1,300
2,050 City of Irvine Special Assessment Bond,
Series A (Kredietbank N.V. LOC),
3.65%, 10/7/97 2,050
2,500 City of Los Angeles Community
Redevelopment Agency Tender Option
Certificates, Series BTP-129,
4.18%, 10/7/97 2,500
1,025 City of Los Angeles Convention and
Exhibition Center VRDN, Merrill P-Floats
PA-88 (MBIA Insured), 3.95%, 10/7/97 1,025
1,700 City of Los Angeles Housing Refunding
Bond, Series 1995 D (AMT), Coral Wood
Court Project, 4.15%, 10/7/97 1,700
2,500 City of Los Angeles Housing Revenue
Bond, Clipper Trust Certificates,
Series 1996-6A, 3.80%, 12/8/97 2,500
3,955 City of San Diego Public Facility Water
and Sewer VRDN, Merrill Soc Gen Muni
Trust, Series SG-14 (AMBAC Insured),
4.10%, 10/7/97 3,955
4,830 City of San Marcos Public Facility Authority
Revenue Bond, Series BTP-188, Civic
Center Project, 3.90%, 3/30/98 4,830
300 City of Tustin District 95-2 Improvement
VRDN, Series A (Kredietbank N.V. LOC),
3.65%, 10/1/97 300
13,685 County of Contra Costa Home Mortgage
Revenue Variable Rate Certificate,
Series 1997 C, 4.18%, 10/7/97 13,685
4,000 County of Irvine Ranch Consolidated
Water District VRDN, Series 1993 B, Districts
2, 102, 103, 106, 3(203) & 206 (Morgan
Guaranty Trust Co. LOC), 3.75%, 10/1/97 4,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
CALIFORNIA - 96.9% (CONT'D.)
$1,500 County of Irvine Ranch Consolidated Water
District Improvement G.O. Bond, Districts
105, 140, 240 & 250, Series 95,
3.65%, 10/1/97 $1,500
1,400 County of Irvine Ranch Consolidated Water
District VRDN, Districts 105, 140, 240 & 250
(Commerzbank LOC), 3.65%, 10/1/97 1,400
2,500 County of Irvine Ranch Consolidated Water
District VRDN, Series 1985, 3.65%, 10/1/97 2,500
3,900 County of Los Angeles Municipal Trust
Receipts, Soc Gen Trust SGB-2, Union
Station Project, 4.15%, 10/7/97 3,900
5,000 County of Los Angeles TRAN,
4.50%, 6/30/98 5,023
9,000 County of Orange Apartment Development
Authority VRDN, Series 1992 B, Aliso
Creek Project, 4.20%, 10/7/97 9,000
1,900 County of Orange Apartment Development
Authority VRDN, Series 1988 A, Vista Verde
Apartments (Wells Fargo Bank LOC),
4.10%, 10/7/97 1,900
8,240 County of Orange Sanitation Districts COP,
Districts 1-3, 5-7, 11, 13 & 14 (National
Westminster LOC), 3.65%, 10/1/97 8,240
900 County of Riverside Ambergate Multifamily
Housing Revenue, Series 1992 A,
4.15%, 10/7/97 900
2,000 County of Riverside TRAN, Series A,
4.50%, 6/30/98 2,008
County of Riverside Transportation Sales
Commission Tax Revenue Bond
4,100 3.65%, 10/6/97 4,100
5,000 3.80%, 10/6/97 5,000
County of Sacramento Multifamily Housing
VRDN (Dai-Ichi Kangyo Bank LOC)
1,400 Series 1985 A, 4.10%, 10/7/97 1,400
900 Series 1985 C, 4.10%, 10/7/97 900
2,575 Series 1985 E, 4.10%, 10/7/97 2,575
4,100 County of Sacramento Yolo Port District
VRDN, Series 1997 A (AMT), Free Trade
Zone Project, 4.00%, 10/7/97 4,100
3,000 County of San Luis Obispo TRAN,
4.50%, 7/8/98 3,014
1,400 County of Santa Ana Health Facility
Revenue Bond, Town & County Manor
Project, 3.80%, 10/1/97 1,400
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ----------------------------------------------------------------------
CALIFORNIA - 96.9% (CONT'D.)
$ 845 County of Santa Clara Housing Authority
Multifamily VRDN, Series A, Avenida
Espana Gardens (Union Bank LOC),
3.75%, 10/7/97 $ 845
2,900 Eagle Tax Exempt Trust Certificates,
Series 1997A-C05Q2, Optional Put
(MBIA Insured), 3.65%, 11/1/97 2,900
3,400 Foothill/Eastern Transportation Corridor
Agency Toll Road Revenue Bonds,
Series 1995-B, 3.85%, 10/7/97 3,400
5,200 Metro Water District of Southern California
CP, Series B, 3.45%, 10/22/97 5,200
2,500 Moreno Valley Unified School District
TRAN, 4.50%, 6/30/98 2,511
1,650 Oxnard School District TRAN,
4.50%, 8/13/98 1,658
4,250 Paramount Housing Authority Multifamily
VRDN, Series 1989 A, Century Place
(Heller Financial, Inc. LOC),
4.29%, 10/7/97 4,250
2,260 Pleasant Hill Redevelopment Agency
Housing Revenue VRDN, Series
1996 A, Chateau III Project
(Commerzbank A.G. LOC), 4.15%, 10/7/97 2,260
5,000 State Community College Finance
Authority, Series A, 4.50%, 6/30/98 5,025
600 State Community Development Authority
Revenue Refunding Bond, Series 1995A-1,
3.90%, 10/7/97 600
7,455 State Department of Water Resources
Water and Sewer VRDN, CVP Merrill Soc
Gen Muni Trust, Series SG-5,
4.10%, 10/7/97 7,455
3,300 State Economic Development VRDN,
Volk Enterprises Project (Harris Trust &
Savings Bank LOC), 3.90%, 10/7/97 3,300
1,500 State G.O. TOB, Series 5027C, Citibank,
4.13%, 10/7/97 1,500
8,550 State G.O. VRDN, Series 1995, Bear
Stearns/Soc Gen Trust (FSA Insured),
4.30%, 10/7/97 8,550
9,000 State G.O. VRDN, Series 1997H,
Bank of America, 4.18%, 10/7/97 9,000
1,200 State G.O. VRDN, Series 5027C,
4.13%, 10/7/97 1,200
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- -----------------------------------------------------------------------
CALIFORNIA - 96.9% (CONT'D.)
State G.O. VRDN, Series A
$4,000 3.60%, 10/29/97 $ 4,000
6,000 3.55%, 10/31/97 6,000
6,200 State G.O. VRDN TOB, Series CR-52,
Citibank (FGIC Insured), 4.13%, 10/7/97 6,200
1,180 State HFA VRDN, Merrill P-Floats PT-14,
3.95%, 10/7/97 1,180
2,060 State HFA VRDN, Merrill P-Floats PT-40D,
Series 1991 G, 4.05%, 10/7/97 2,060
760 State HFA VRDN, Merrill P-Floats PT-56,
Series 1995 B, 4.05%, 10/7/97 760
State PCR, Southern California Edison
2,300 Series B, 3.85%, 10/1/97 2,300
1,000 Series C, 3.85%, 10/1/97 1,000
1,000 Statewide Community Development
Authority COP, Sutter Health Obligation
Group (AMBAC Insured), 3.65%, 10/1/97 1,000
5,800 State Pollution Finance Authority PCR,
Series F, Pacific Gas & Electric Co.,
3.80%, 10/1/97 5,800
7,000 State RAN Lehman Brothers Trust Receipts,
Series 1997 FR/RI-23, 4.00%, 10/1/97 7,000
6,400 State TRAN, Series 1997-8,
4.50%, 6/30/98 6,430
4,290 University of California Regents VRDN,
Merrill Soc Gen Muni Trust, Series C-SG24
(AMBAC Insured), 4.10%, 10/7/97 4,290
5,000 University of California Regents VRDN,
Series D, Multiple Purpose Projects,
4.15%, 10/7/97 5,000
------------
223,404
------------
PUERTO RICO - 4.1%
3,300 Puerto Rico Government Development
Bank, 3.65%, 10/7/97 3,300
6,240 Puerto Rico Industrial Medical and
Environmental PCR, Merck & Co., Inc.,
Series 1983 A, 4.00%, 12/1/97 6,240
------------
9,540
------------
Total Municipal Investments
(cost $232,944) 232,944
------------
See Notes to the Financial Statements.
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1997 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
NUMBER
OF SHARES VALUE
(000S) (000S)
- ----------------------------------------------------------------------
OTHER - 0.8%
268 Federated Tax Exempt Money Market
Fund No. 80 $ 268
1,664 Provident Institutional California
Money Fund 1,664
------------
Total Other
(cost $1,932) 1,932
------------
Total Investments - 101.8%
(cost $234,876) 234,876
Liabilities less Other Assets - (1.8)% (4,182)
------------
NET ASSETS - 100.0% $230,694
============
See Notes to the Financial Statements.
NOTES TO THE
FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(UNAUDITED)
1. ORGANIZATION
Northern Funds was organized October 12, 1993 as a Massachusetts business trust
and is registered under the Investment Company Act of 1940 as an open-end
management investment company consisting of 20 active portfolios. The Money
Market, U.S. Government Money Market, Municipal Money Market, U.S. Government
Select Money Market and California Municipal Money Market Funds (collectively
the "Funds") are separate, diversified investment portfolios of Northern
Funds, except the California Municipal Money Market Fund which is a non-
diversified portfolio of Northern Funds. Non-diversified portfolios may invest
a relatively high percentage of their net assets in obligations of a limited
number of issuers. Each of the Funds maintains its own investment objective.
The Funds have entered into an Investment Advisory Agreement with The
Northern Trust Company ("Northern Trust" or the "Adviser"). Northern Trust
also serves as custodian, fund accountant and transfer agent for the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP"). The preparation of financial statements in conformity with GAAP re-
quires 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.
A.VALUATION OF SECURITIES - Short-term investments held by the Funds are valued
using the amortized cost method, which approximates market value. Under this
method, investments purchased at a discount or premium are valued by
amortizing the difference between the original purchase price and maturity
value of the issue over the period to maturity. Guaranteed investment
contracts are valued at cost plus accrued interest, which approximates market
value. Any securities for which no current quotations are readily available
are valued at fair value as determined in good faith by the Adviser under the
supervision of the Board of Trustees.
B.REPURCHASE AGREEMENTS - During the term of a repurchase agreement, the market
value of the underlying collateral, including accrued interest, is required
to equal or exceed the market value of the repurchase agreement. The
underlying collateral for all repurchase agreements is held in a customer-
only account of Northern Trust, as custodian for the Funds, at the Federal
Reserve Bank of Chicago.
C.ORGANIZATION COSTS - Organization expenses of approximately $342,000 have
been deferred and are being amortized on a straight-line basis through 1999.
D.INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded as
of the trade date. The Funds determine the gain or loss realized from
investment transactions by using an identified cost basis method. Interest
income is recognized on an accrual basis and includes amortization of
discounts and premiums.
E.EXPENSES - The Funds are charged for those expenses that are directly
attributable to each Fund. Expenses that are not directly attributable to a
Fund are typically allocated among the Funds in proportion to their
respective net assets.
F.DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment income are
declared daily and paid monthly.
Distributions of net realized capital gains, if any, are declared at least
annually. Distributions to shareholders are recorded on the ex-dividend
date.
The timing and character of distributions determined in accordance with
federal income tax regulations may differ from financial statement amounts
determined in accordance with generally accepted accounting principles due to
differences in the treatment and recognition of investment income and
realized gains (losses). These differences are primarily related to capital
loss carryforwards. Certain differences in treatment of income and capital
gains for distributions, which are permanent, may result in periodic
reclassifications in the Funds' capital accounts.
G.FEDERAL INCOME TAXES - No provision for federal income taxes has been made
since the Funds intend to comply with the requirements of the Internal
Revenue Code available to regulated investment companies and to distribute
substantially all of their taxable income to their shareholders.
At March 31, 1997, the Funds' most recent fiscal year end, the approximate
capital loss carryforwards for U.S. federal income tax purposes were
approximately $109,000 and $1,000 for the Municipal Money Market and the U.S.
Government Select Money Market Funds, respectively. These capital loss
carryforwards, due to expire March 31, 2005, are available to offset future
capital gains.
H.CLASSIFICATIONS - At March 31, 1997, the Funds' most recent fiscal year end,
the Funds made reclassifications among their capital accounts to reflect the
characterization of certain income and capital gain distributions for federal
income tax purposes as follows:
UNDISTRIBUTED UNDISTRIBUTED
NET NET PAID
AMOUNTS INVESTMENT CAPITAL IN
IN THOUSANDS INCOME GAINS CAPITAL
- ---------------------------------------------------------------------
Money Market $24 - $(24)
U.S. Government
Money Market 6 - (6)
Municipal Money
Market 47 - (47)
U.S. Government Select
Money Market 4 - (4)
California Municipal
Money Market 3 - (3)
- ---------------------------------------------------------------------
These reclassifications have no impact on the net asset value of the Funds
and are primarily due to differing treatments of certain fees and expenses.
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Pursuant to its advisory agreement with the Funds, the Adviser is entitled to
receive a fee, calculated daily and payable monthly, at the annual rates
presented below as applied to each Fund's daily net assets. For the six months
ended September 30, 1997, the Adviser voluntarily agreed to waive a portion of
its advisory fees as applied to each Fund's daily net assets as shown on the
accompanying Statements of Operations. Northern Trust had also agreed to
reimburse the Funds as shown on the accompanying Statements of Operations to
adhere to the expense limitations presented in the following table:
ANNUAL ADVISORY
ADVISORY FEES AFTER EXPENSE
FEES WAIVERS LIMITATIONS
- -------------------------------------------------------------------------
Money Market 0.60% 0.40% 0.55%
U.S. Government
Money Market 0.60% 0.40% 0.55%
Municipal Money
Market 0.60% 0.40% 0.55%
U.S. Government Select
Money Market 0.60% 0.25% 0.40%
California Municipal
Money Market 0.60% 0.30% 0.45%
- -------------------------------------------------------------------------
The Funds have entered into an administrative agreement with Sunstone
Financial Group, Inc. ("Sunstone") for certain administrative services.
Pursuant to its administrative agreement with the Funds, Sunstone is entitled to
receive a fee, computed daily and payable monthly, at the annual rate of 0.15%
of each Fund's daily net assets. For the six months ended September 30, 1997,
Sunstone voluntarily agreed to waive a portion of its administration fees as
shown on the accompanying Statements of Operations.
4. BANK LOANS
The Funds maintain a $5,000,000 revolving bank credit line for liquidity and
other purposes. Borrowings under this arrangement bear interest at 1% above the
Fed Funds rate and are secured by pledged securities equal to or exceeding 120%
of the outstanding balance.
As of September 30, 1997, there were no outstanding borrowings.
This page intentionally left blank.
This report has been prepared for the general information of Northern Funds
shareholders. It is not authorized for distribution to prospective investors
unless accompanied or preceded by a current Northern Funds prospectus, which
contains more complete information about Northern Funds investment policies,
management fees and expenses. Investors are reminded to read the prospectus
carefully before investing or sending money.
NORTHERN FUNDS
P.O. Box 75986
Chicago, IL 60690-6319
1-800-595-9111
(C) 1997 Sunstone Distribution Services, LLC,
Distributor
