<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. Government Securities
Cash Management Fund
Treasury Prime
Cash Management Fund
Cash Management Fund
ANNUAL REPORT
December 31, 1995
PLEASE READ CAREFULLY: THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK,
ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
("FDIC"), THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. FUND SHARES INVOLVE
CERTAIN INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
(312) 732-6400
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Shareholders........................ 1
Portfolio of Investments...................... 2
Statements of Assets and Liabilities.......... 7
Statements of Operations...................... 8
Statements of Changes in Net Assets........... 9
Notes to Financial Statements................. 12
Financial Highlights.......................... 17
Report of Ernst & Young LLP, Independent
Auditors..................................... 23
</TABLE>
INVESTMENT ADVISER
First Chicago Investment Management Company (FCIMCO)
Three First National Plaza, Chicago, IL 60670
----------------
DISTRIBUTOR
Concord Financial Group, Inc.
3435 Stelzer Road
Columbus, OH 43219
<PAGE>
Dear Shareholder,
The seven-day annualized SEC yields as of December 31, 1995 for the following
Prairie Institutional Funds were:
<TABLE>
<CAPTION>
INSTITUTIONAL SERVICE
SHARES SHARES
------------- -------
<S> <C> <C>
Cash Management Fund............................... 5.43% 5.18%
U.S. Government Securities Cash Management Fund.... 5.31% 5.06%
Treasury Prime Cash Management Fund................ 4.87% 4.62%
</TABLE>
YEAR IN REVIEW
The U.S. investment market's performance in 1995 was nothing short of
extraordinary. We have seen some of the best market returns in years for both
equity and fixed income instruments. But on the short-term yield front, 1995
was a mixed year. Through the first six months of 1995, yields continued to
rise and most expected the average taxable yield to close in on 6.0%. However,
the slowdown in economic growth, coupled with low inflation prompted the
Federal Reserve to change its course and lower the Fed Funds rate, first in
July and again in December. As of December 31, 1995, the Fed Funds rate stood
at 5.50%.
INTEREST RATE OUTLOOK
The Federal Reserve is expected to continue to ease interest rates at a
gradual pace in 1996. This should occur primarily in the first part of the
year. The slant of monetary policy reflects a growing consensus at the Fed
that economic growth can be stronger (and the unemployment rate lower) without
igniting inflation. Our forecast is for the Fed Funds rate to fall to 4 3/4%
by the end of 1996. Relatively moderate economic growth and benign inflation,
along with the Fed easing credit, are also expected to keep long-term bond
rates low.
TRIPLE "A" RATING
As of December 31, 1995, the Prairie Cash Management Fund, Prairie U.S.
Government Securities Cash Management Fund and Prairie Treasury Prime Cash
Management Fund were each assigned a "AAA" rating by Standard & Poor's Ratings
Group and a "Aaa" rating by Moody's Investors Service, Inc. These ratings
reflect the Funds' capacity to maintain principal value and limit exposure to
loss.
We thank you for the confidence that you have expressed in us by investing in
the Prairie Institutional Funds. We will continue to earn your trust by
pursuing an investment strategy which seeks to provide competitive yields
consistent with protecting the value of your principal.
Sincerely,
LOGO
Deborah L. Edwards
Managing Director
First Chicago Investment Management Company
- --------
An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate, and there can be no assurance that the
Funds will be able to maintain a stable NAV of $1.00 per share.
Portions of the advisory fee, the administration fee and other expenses
payable by the Funds are being reimbursed. If fees had not been reimbursed,
the yields shown above would have been 5.35% and 5.09%, respectively, for the
Prairie Cash Management Fund, 5.22% and 4.93% for the Prairie U.S. Government
Securities Cash Management Fund and 4.81% and 4.56% for the Prairie Treasury
Prime Cash Management Fund. The fee reimbursement is voluntary and may be
terminated or modified at any time which would reduce fund performance.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK,
ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
("FDIC"), THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
1
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. GOVERNMENT SECURITIES CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
MATURITY AMOUNT COST
DESCRIPTION RATE DATE (000) (NOTE 2(A))
----------- ---- -------- --------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY NOTES--79.6%
Federal Farm Credit Bank Discount
Note................................. 5.59%* 1/19/96 $15,000 $ 14,958,075
Federal Farm Credit Bank Discount
Note................................. 5.48%* 1/22/96 30,000 29,904,100
Federal Farm Credit Bank Discount
Note................................. 5.63%* 1/25/96 20,000 19,924,933
Federal Farm Credit Bank Discount
Note................................. 5.50%* 2/15/96 27,000 26,814,375
Federal Farm Credit Bank Discount
Note................................. 5.47%* 3/11/96 25,000 24,734,097
Federal Home Loan Bank Discount Note.. 5.62%* 1/5/96 20,000 19,987,511
Federal Home Loan Bank Discount Note.. 5.61%* 1/12/96 30,000 29,948,575
Federal Home Loan Bank Discount Note.. 5.60%* 1/19/96 15,000 14,958,000
Federal Home Loan Bank Discount Note.. 5.50%* 2/21/96 30,000 29,766,250
Federal Home Loan Bank Discount Note.. 5.32%* 3/1/96 20,000 19,822,667
Federal Home Loan Mortgage Corp.
Discount Note........................ 5.60%* 1/3/96 35,000 34,989,111
Federal Home Loan Mortgage Corp.
Discount Note........................ 5.61%* 1/4/96 9,000 8,995,793
Federal Home Loan Mortgage Corp.
Discount Note........................ 5.56%* 2/2/96 24,000 23,881,387
Federal Home Loan Mortgage Corp.
Discount Note........................ 5.40%* 2/22/96 25,000 24,805,000
Federal National Mortgage Association
Discount Note........................ 5.52%* 1/29/96 26,000 25,888,373
Federal National Mortgage Association
Discount Note........................ 5.55%* 1/10/96 30,000 29,958,375
Federal National Mortgage Association
Discount Note........................ 5.53%* 1/24/96 25,000 24,911,674
Federal National Mortgage Association
Discount Note........................ 5.50%* 2/9/96 30,000 29,821,250
------------
TOTAL U.S. GOVERNMENT AGENCY NOTES
(AMORTIZED COST $434,069,546)......... 434,069,546
------------
REPURCHASE AGREEMENTS--21.5%
Repurchase agreement with the Sanwa
Bank, dated 12/29/95, with a maturity
value of $100,060,556 (See Footnote
A)................................... 5.45% 1/2/96 100,000 100,000,000
Repurchase agreement with the National
Westminster Bank, dated 12/29/95,
with a maturity value of $17,210,798
(See Footnote B)..................... 5.65% 1/2/96 17,200 17,200,000
------------
TOTAL REPURCHASE AGREEMENTS
(AMORTIZED COST $117,200,000)......... 117,200,000
------------
TOTAL INVESTMENTS
(AMORTIZED COST $551,269,546)(A)--
101.1%................................ 551,269,546
Liabilities in excess of other assets--
(1.1)%................................ (5,875,100)
------------
NET ASSETS--100.0%..................... $545,394,446
============
</TABLE>
- --------
Percentages indicated are based on net assets of $545,394,446.
(a)Cost for federal income tax and financial reporting purposes are the same.
*Yield at purchase.
Footnote A: Collateralized by $100,000,000 U.S. Treasury Bills, due 8/22/96
and $4,428,000 U.S. Treasury Bills, due 8/22/96; with an aggregate
value of $101,011,116.
Footnote B: Collateralized by $17,000,000 U.S. Treasury Note, 6.63%, due
3/31/97; with a value of $17,488,962.
See Notes to Financial Statements.
2
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
TREASURY PRIME CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
MATURITY AMOUNT COST
DESCRIPTION RATE* DATE (000) (NOTE 2(A))
----------- ----- -------- --------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--100.7%
U.S. TREASURY BILLS--100.7%
U.S. Treasury Bill................... 5.24% 1/4/96 $14,235 $ 14,228,795
U.S. Treasury Bill................... 5.35% 1/11/96 22,290 22,260,306
U.S. Treasury Bill................... 5.32% 1/18/96 26,680 26,619,493
U.S. Treasury Bill................... 5.35% 1/25/96 11,466 11,425,504
U.S. Treasury Bill................... 5.27% 2/1/96 2,400 2,389,119
U.S. Treasury Bill................... 5.36% 2/8/96 15,940 15,856,931
U.S. Treasury Bill................... 5.33% 2/15/96 13,890 13,798,838
U.S. Treasury Bill................... 5.32% 2/22/96 11,000 10,919,284
U.S. Treasury Bill................... 5.37% 2/29/96 5,000 4,955,996
U.S. Treasury Bill................... 5.32% 3/7/96 15,000 14,853,700
U.S. Treasury Bill................... 5.20% 3/14/96 1,380 1,365,463
U.S. Treasury Bill................... 4.90% 3/21/96 6,000 5,934,667
U.S. Treasury Bill................... 4.94% 4/4/96 920 908,133
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(AMORTIZED COST $145,516,229)........ 145,516,229
------------
TOTAL INVESTMENTS
(AMORTIZED COST $145,516,229)(A)--
100.7%............................... 145,516,229
Liabilities in excess of other
assets--(0.7)%....................... (948,650)
------------
NET ASSETS--100.0%.................... $144,567,579
============
</TABLE>
- --------
Percentages indicated are based on net assets of $144,567,579.
(a)Cost for federal income tax and financial reporting purposes are the same.
*Yield at purchase.
See Notes to Financial Statements.
3
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
MOODY'S/ PRINCIPAL AMORTIZED
S&P MATURITY AMOUNT COST
DESCRIPTION (UNAUDITED) RATE DATE (000) (NOTE 2(A))
----------- ----------- ---- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS--100.2%
COMMERCIAL PAPER--46.6%
BANKING--3.5%
Bayerische Vereinsbank...... A-1+/P-1 5.73% 1/8/96 $18,000 $ 17,979,945
------------
BROKERAGE--7.0%
Morgan Stanley Group,
Inc. ...................... A-1+/P-1 6.00% 1/3/96 18,000 17,994,000
Goldman Sachs & Co.......... A-1+/P-1 5.55% 4/2/96 18,000 17,744,700
------------
35,738,700
------------
CONSUMER GOODS AND SERVICES--
3.9%
Hershey Foods............... A-1+/P-1 5.65% 1/12/96 20,000 19,965,472
------------
FINANCE--21.3%
Barclays Funding............ A-1+/P-1 5.67% 1/19/96 20,000 19,943,300
Ciesco L.P.................. A-1+/P-1 5.70% 1/19/96 20,000 19,943,000
Corporate Asset Funding Co.,
Inc........................ A-1+/P-1 5.65% 2/9/96 18,000 17,889,825
Dresdener U.S. Finance,
Inc........................ A-1+/P-1 5.69% 1/3/96 15,000 14,995,258
Nestle Capital.............. A-1+/P-1 5.73% 1/12/96 18,000 17,968,485
USAA Capital................ A-1+/P-1 5.64% 2/7/96 18,000 17,895,660
------------
108,635,528
------------
OIL--3.9%
Exxon Imperial.............. A-1+/P-1 5.62% 1/16/96 20,000 19,953,167
------------
TOBACCO--3.5%
Philip Morris Capital
Corp....................... A-1/P-1 5.72% 1/19/96 18,000 17,948,520
------------
TELECOMMUNICATIONS--3.5%
AT&T Corp................... A-1+/P-1 5.40% 3/19/96 18,000 17,783,940
------------
TOTAL COMMERCIAL PAPER
(AMORTIZED COST
$238,005,272)............... 238,005,272
------------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
MOODY'S/ PRINCIPAL AMORTIZED
S&P MATURITY AMOUNT COST
DESCRIPTION (UNAUDITED) RATE DATE (000) (NOTE 2(A))
----------- ----------- ---- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
BANKERS ACCEPTANCES--5.1%
Dai-Ichi Kangyo............. A-1/P-1 5.81% 2/23/96 $10,000 $ 9,914,464
Fuji Bank................... A-1/P-1 5.77% 1/3/96 8,000 7,997,436
Fuji Bank................... A-1/P-1 5.77% 1/12/96 3,000 2,994,711
Industrial Bank of Japan.... A-1/P-1 5.81% 2/28/96 5,000 4,953,197
------------
TOTAL BANKERS ACCEPTANCES
(AMORTIZED COST
$25,859,808)................ 25,859,808
------------
CERTIFICATES OF DEPOSIT--
35.0%
U.S. BRANCHES OF FOREIGN
BANKS--35.0%
ABN-AMRO.................... A-1+/P-1 5.78% 2/1/96 18,000 18,000,752
Bank of Montreal............ A-1+/P-1 5.78% 1/17/96 20,000 20,000,240
Banque Nationale de Paris... A-1/P-1 5.75% 2/5/96 18,000 18,000,646
Bayerische Hypotheken-Und
Wechsel Bank............... A-1/P-1 5.68% 3/22/96 19,000 19,000,078
Canadian Imperial Bank of
Commerce................... A-1+/P-1 5.60% 3/12/96 18,000 18,000,000
Commerzbank AG, New York ... A-1+/P-1 5.77% 1/17/96 15,000 15,000,132
Mitsubishi Bank............. A-1+/P-1 5.86% 3/6/96 18,000 18,002,183
National Westminster........ A-1+/P-1 5.78% 1/16/96 15,000 15,000,112
Rabobank.................... A-1+/P-1 5.75% 1/22/96 20,000 20,000,116
Societe Generale, New York.. A-1+/P-1 5.77% 2/5/96 18,000 18,000,330
------------
TOTAL CERTIFICATES OF DEPOSIT
(AMORTIZED COST
$179,004,589)............... 179,004,589
------------
TOTAL INVESTMENTS IN
SECURITIES
(AMORTIZED COST
$442,869,669)............... 442,869,669
------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS--(CONTINUED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
MATURITY AMOUNT COST
DESCRIPTION RATE DATE (000) (NOTE 2(A))
----------- ---- -------- --------- -----------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS--13.5%
Repurchase agreement with National
Westminster, dated 12/29/95, with a
maturity value of $8,805,524 (See
Footnote A)........................... 5.65% 1/2/96 $ 8,800 $ 8,800,000
Repurchase agreement with Sanwa Bank,
dated 12/29/95, with a maturity value
of $60,036,333 (See Footnote B)....... 5.45% 1/2/96 60,000 60,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(AMORTIZED COST $68,800,000)........... 68,800,000
------------
TOTAL INVESTMENTS
(AMORTIZED COST $511,669,669)(A)--
100.2% ................................ 511,669,669
Liabilities in excess of other assets--
(0.2%)................................. (792,813)
------------
NET ASSETS--100.0%...................... $510,876,856
============
</TABLE>
- --------
Percentages indicated are based on net assets of $510,876,856.
(a) Cost for federal income tax and financial reporting purposes are the same.
Footnote A: Collateralized by $8,700,000 U.S. Treasury Note, 6.63%, due
3/31/97; with a value of $9,022,031.
Footnote B: Collateralized by $45,000,000 U.S. Treasury Bills, due 8/22/96 and
$16,528,000 U.S. Treasury Note, 6.50%; due 8/15/97; with an
aggregate value of $61,839,987.
See Notes to Financial Statements.
6
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT TREASURY PRIME CASH
SECURITIES CASH CASH MANAGEMENT MANAGEMENT
MANAGEMENT FUND FUND FUND
--------------- --------------- ------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost (amortized cost
$434,069,546, $145,516,229 and
$442,869,669 respectively)..... $434,069,546 $145,516,229 $442,869,669
Repurchase agreements (amortized
cost $117,200,000, $0 and
$68,800,000, respectively)..... 117,200,000 -- 68,800,000
Cash............................ -- -- 109,258
Interest receivable............. 25,567 -- 1,185,264
Deferred organization expenses.. 129,663 87,971 140,036
Prepaid expenses and other
assets......................... 28,398 10,875 23,044
------------ ------------ ------------
Total Assets................. 551,453,174 145,615,075 513,127,271
------------ ------------ ------------
LIABILITIES:
Advisory fees payable........... 186,860 15,774 91,725
Administration fees payable..... 78,347 5,228 69,812
Service Plan fees payable
(Service Shares)............... 37,975 37,202 53,567
Bank overdraft.................. 3,618,499 537,469 --
Dividends payable............... 2,046,983 417,391 1,968,881
Accrued expenses................ 90,064 34,432 66,430
------------ ------------ ------------
Total Liabilities............ 6,058,728 1,047,496 2,250,415
------------ ------------ ------------
NET ASSETS....................... $545,394,446 $144,567,579 $510,876,856
============ ============ ============
Net Asset Value, Offering Price
and Redemption Price per Share:
Institutional Shares:
Net Assets..................... $489,394,679 $ 14,008,335 $389,126,965
Shares of beneficial interest
issued and outstanding, $0.001
par value, unlimited number of
shares authorized............. 489,865,389 14,008,529 389,280,704
------------ ------------ ------------
Net Asset Value per Share...... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
Service Shares:
Net Assets..................... $ 55,999,767 $130,559,244 $121,749,891
Shares of beneficial interest
issued and outstanding, $0.001
par value, unlimited number of
shares authorized............. 56,053,643 130,561,050 121,798,020
------------ ------------ ------------
Net Asset Value per Share...... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
COMPOSITION OF NET ASSETS:
Shares of beneficial interest,
at par........................ $ 545,919 $ 144,570 $ 511,079
Additional paid-in capital..... 545,373,112 144,425,009 510,567,644
Accumulated net realized losses
from investment transactions.. (524,585) (2,000) (201,867)
------------ ------------ ------------
NET ASSETS, DECEMBER 31, 1995.... $545,394,446 $144,567,579 $510,876,856
============ ============ ============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT U.S. GOVERNMENT TREASURY PRIME CASH CASH
SECURITIES CASH SECURITIES CASH CASH MANAGEMENT MANAGEMENT MANAGEMENT
MANAGEMENT FUND MANAGEMENT FUND FUND FUND FUND
--------------- ------------------ --------------- -------------- ------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
FROM JUNE 1, FROM MARCH 22, FROM JULY 1,
1995 THROUGH FOR THE YEAR ENDED 1995 THROUGH 1995 THROUGH FOR THE YEAR ENDED
DECEMBER 31, MAY 31, DECEMBER 31, DECEMBER 31, JUNE 30,
1995(A) 1995 1995(B) 1995(A) 1995
--------------- ------------------ --------------- -------------- ------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest Income......... $17,275,666 $25,222,014 $1,364,594 $12,568,427 $15,728,576
----------- ----------- ---------- ----------- -----------
Expenses:
Advisory fees.......... 645,155 1,388,345 50,405 428,914 793,104
Administration fees.... 445,948 280,584 37,804 321,686 212,319
Service Plan fees
(Service Shares)...... 56,289 4,987 38,892 73,857 4,441
Custodian fees and
expenses.............. 81,041 52,283 42,386 68,908 68,943
Registration fees...... 3,430 83,301 3,693 19,428 54,803
Legal and audit fees... 22,812 82,193 18,638 33,180 62,493
Amortization of
organization
expenses.............. 14,413 11,079 12,559 13,095 12,954
Transfer agent fees and
expenses.............. 12,300 12,882 10,560 17,855
Reports to
shareholders.......... 12,838 9,301 19,437 11,592 13,114
Trustees' fees......... 6,670 4,990 625 6,912 4,608
Other expenses......... 21,361 48,122 2,042 13,845 44,768
----------- ----------- ---------- ----------- -----------
1,322,257 1,965,185 239,363 1,001,977 1,289,402
Less: Expense
reimbursements........ (224,593) (312,740) (107,023) (177,520) (267,419)
----------- ----------- ---------- ----------- -----------
1,097,664 1,652,445 132,340 824,457 1,021,983
----------- ----------- ---------- ----------- -----------
NET INVESTMENT
INCOME.............. 16,178,002 23,569,569 1,232,254 11,743,970 14,706,593
----------- ----------- ---------- ----------- -----------
REALIZED GAINS (LOSSES)
ON INVESTMENT
TRANSACTIONS:
Net realized gains
(losses) on investment
transactions.......... 4,517 (482,586) (2,000) (4,009) (1,706,625)
----------- ----------- ---------- ----------- -----------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $16,182,519 $23,086,983 $1,230,254 $11,739,961 $12,999,968
=========== =========== ========== =========== ===========
</TABLE>
- --------
(a)Effective June 1, 1995 and July 1, 1995, the Funds changed their fiscal year
ends from May 31 and June 30, respectively, to December 31.
(b)Commencement of operations.
See Notes to Financial Statements.
8
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. GOVERNMENT SECURITIES CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1995(1) MAY 31, 1995 MAY 31, 1994
-------------------- ------------------ ------------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS:
Net investment income.. $ 16,178,002 $ 23,569,569 $ 12,751,537
Net realized gains
(losses) from
investment
transactions.......... 4,517 (482,586) (42,640)
--------------- --------------- --------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... 16,182,519 23,086,983 12,708,897
--------------- --------------- --------------
DIVIDENDS TO
SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Institutional Shares.. (15,014,802) (23,456,426) (12,751,537)
Service Shares........ (1,163,200) (113,143) --
--------------- --------------- --------------
TOTAL DIVIDENDS TO
SHAREHOLDERS........ (16,178,002) (23,569,569) (12,751,537)
--------------- --------------- --------------
FUND SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Net proceeds from
shares sold........... 2,081,961,762 3,284,015,157 4,379,511,392
Dividends reinvested... 785,116 1,824,905 563,903
Cost of shares re-
deemed................ (2,029,306,950) (3,207,041,446) (4,230,925,537)
--------------- --------------- --------------
NET INCREASE IN NET
ASSETS FROM FUND
SHARE TRANSACTIONS
(NOTE 3)............ 53,439,928 78,798,616 149,149,758
--------------- --------------- --------------
TOTAL INCREASE IN
NET ASSETS......... 53,444,445 78,316,030 149,107,118
NET ASSETS:
Beginning of period.... 491,950,001 413,633,971 264,526,853
--------------- --------------- --------------
End of period.......... $ 545,394,446 $ 491,950,001 $ 413,633,971
=============== =============== ==============
</TABLE>
- --------
(1) For the period June 1, 1995 through December 31, 1995. Effective June 1,
1995, the Fund changed its fiscal year end from May 31 to December 31.
See Notes to Financial Statements.
9
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
TREASURY PRIME CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
DECEMBER 31, 1995(A)
--------------------
<S> <C>
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS:
Net investment income.................................... $ 1,232,254
Net realized losses from investment transactions......... (2,000)
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS... 1,230,254
-------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Institutional Shares.................................... (497,768)
Service Shares.......................................... (734,486)
-------------
Total Dividends to Shareholders........................ (1,232,254)
-------------
FUND SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Net proceeds from shares sold............................ 393,556,208
Dividends reinvested..................................... 434,305
Cost of shares redeemed.................................. (249,420,934)
-------------
NET INCREASE IN NET ASSETS FROM FUND SHARE TRANSACTIONS
(NOTE 3).............................................. 144,569,579
-------------
TOTAL INCREASE IN NET ASSETS.......................... 144,567,579
NET ASSETS:
Beginning of period...................................... --
-------------
End of period............................................ $ 144,567,579
=============
</TABLE>
- --------
(a) For the period March 22, 1995 (commencement of operations) through December
31, 1995.
See Notes to Financial Statements.
10
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 1995(1) JUNE 30, 1995 JUNE 30, 1994
-------------------- ------------------ ------------------
<S> <C> <C> <C>
INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS:
Net investment income.. $ 11,743,970 $ 14,706,593 $ 8,493,966
Net realized losses
from investment
transactions.......... (4,009) (1,706,625) (136,023)
--------------- --------------- --------------
NET INCREASE IN NET
ASSETS RESULTING
FROM OPERATIONS..... 11,739,961 12,999,968 8,357,943
--------------- --------------- --------------
DIVIDENDS TO
SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Institutional Shares.. (10,179,235) (14,606,645) (8,493,966)
Service Shares........ (1,564,735) (99,948) --
--------------- --------------- --------------
TOTAL DIVIDENDS TO
SHAREHOLDERS........ (11,743,970) (14,706,593) (8,493,966)
--------------- --------------- --------------
FUND SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Net proceeds from
shares sold........... 1,257,882,248 1,539,582,005 2,167,517,783
Dividends reinvested... 985,906 1,362,169 654,107
Cost of shares
redeemed.............. (1,078,572,576) (1,454,140,686) (2,099,928,742)
--------------- --------------- --------------
NET INCREASE IN NET
ASSETS FROM FUND
SHARE TRANSACTIONS
(NOTE 3)............ 180,295,578 86,803,488 68,243,148
--------------- --------------- --------------
Increase due to capital
contribution from
affiliate of Investment
Adviser
(Note 4(d))............ -- 1,668,500 --
--------------- --------------- --------------
TOTAL INCREASE IN
NET ASSETS......... 180,291,569 86,765,363 68,107,125
NET ASSETS:
Beginning of period.... 330,585,287 243,819,924 175,712,799
--------------- --------------- --------------
End of period.......... $ 510,876,856 $ 330,585,287 $ 243,819,924
=============== =============== ==============
</TABLE>
- --------
(1)For the period from July 1, 1995 through December 31, 1995. Effective July
1, 1995, the Fund changed its fiscal year end from June 30 to December 31.
See Notes to Financial Statements.
11
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
NOTE 1--GENERAL
Prairie Institutional Funds (the "Trust") is registered under the Investment
Company Act of 1940, as amended, (the "Act") as an open-end management
investment company. At December 31, 1995, the Trust was comprised of four
separate investment portfolios as follows: Cash Management Fund, Municipal
Cash Management Fund, Treasury Prime Cash Management Fund and U.S. Government
Securities Cash Management Fund. The accompanying financial statements relate
only to the Cash Management Fund, Treasury Prime Cash Management Fund and U.S.
Government Securities Cash Management Fund (collectively, the "Funds"). As of
December 31, 1995, the Municipal Cash Management Fund had not yet commenced
operations.
The Funds each offer two classes of shares, Institutional Shares and Service
Shares. Institutional Shares and Service Shares are substantially the same
except that Service Shares are subject to fees payable under a Service Plan
adopted pursuant to Rule 12b-1 under the Act (the "Service Plan") at an annual
rate of 0.25% of the average daily net asset value of the outstanding Service
Shares.
At a shareholder meeting of the First Prairie U.S. Treasury Securities Cash
Management Fund (the "Treasury Predecessor Fund") held on December 21, 1994,
the shareholders approved an Agreement and Plan of Exchange pursuant to which
the Treasury Predecessor Fund transferred all of its assets and liabilities to
the U.S. Government Securities Cash Management Fund. In exchange for the
assets and liabilities, the U.S. Government Securities Cash Management Fund
issued Institutional Shares to the shareholders of the Treasury Predecessor
Fund equal in value to shares held by such shareholders immediately prior to
the exchange. This exchange took place on January 17, 1995, at which time the
shareholders of the Treasury Predecessor Fund received a pro rata distribution
of 431,159,110 Institutional Shares of the U.S. Government Securities Cash
Management Fund having a net asset value of $430,731,675.
At a shareholder meeting of First Prairie Cash Management Fund (the
"Predecessor Fund") held on December 21, 1994, the shareholders approved an
Agreement and Plan of Exchange pursuant to which the Predecessor Fund
transferred all of its assets and liabilities to the Cash Management Fund. In
exchange for the assets and liabilities, the Cash Management Fund issued
Institutional Shares to the shareholders of the Predecessor Fund equal in
value to shares held by such shareholders immediately prior to the exchange.
This exchange took place on January 17, 1995 at which time the shareholders of
the Predecessor Fund received a pro rata distribution of 263,124,343
Institutional Shares of the Cash Management Fund having a net asset value of
$262,954,610.
First Chicago Investment Management Company ("FCIMCO"), a wholly-owned
subsidiary of The First National Bank of Chicago ("FNBC"), serves as each
Fund's investment adviser and administrator. FCIMCO has engaged Concord
Holding Corporation ("Concord"), a wholly-owned subsidiary of The BISYS Group,
Inc. ("BISYS"), to serve as the Funds' sub-administrator. Concord Financial
Group, Inc., a wholly-owned subsidiary of BISYS, serves as the principal
underwriter and distributor of each Fund's shares.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. These principles
require management to make estimates and assumptions that affect the reported
amounts of assets and
12
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
- -------------------------------------------------------------------------------
liabilities at the date of the financial statements and the reported amounts
of income and expenses for the period. Actual results could differ from those
estimates.
(a) Portfolio Valuation: Investments of the Funds are valued at either
amortized cost, which approximates market value. Under the amortized cost
method, discount or premium is amortized on a constant basis to the maturity
of the security. In addition, the Funds generally may not (a) purchase any
instrument with a remaining maturity greater than thirteen months unless such
instrument is subject to a demand feature, or (b) maintain a dollar-weighted
average maturity which exceeds 90 days.
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and when appropriate, discounts on
investments, is earned from settlement date and recognized on the accrual
basis.
The U.S. Government Securities Cash Management Fund and Cash Management Fund
may enter into repurchase agreements with financial institutions deemed to be
creditworthy by FCIMCO, subject to the seller's agreement to repurchase and
the Fund's agreement to resell such securities at a mutually agreed upon
price. Securities purchased subject to repurchase agreements are deposited
with the Fund's custodian and, pursuant to the terms of the purchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus
accrued interest, the Fund will require the seller to deposit additional
collateral by the next business day. If the request for additional collateral
is not met, or the seller defaults on its purchase obligation, the Fund
maintains the right to sell the underlying securities at market value and may
claim any resulting loss against the seller.
(c) Dividends to shareholders: Each Fund's dividends from net investment
income are declared daily and paid monthly. Distributions from net realized
capital gains, if any, are normally declared annually and paid annually, but
each Fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code (the "Code"). To the
extent that net realized capital gains can be offset by capital loss
carryovers, it is the policy of each Fund not to distribute such gains.
(d) Federal income taxes: It is the policy of each Fund to continue to
qualify as a regulated investment company by complying with the provisions
available to certain investment companies, as defined in applicable sections
of the Code, and to make distributions of taxable income sufficient to relieve
it from all, or substantially all, Federal income taxes. At December 31, 1995,
the U.S. Government Securities Cash Management Fund had unused capital loss
carryovers of approximately $525,000, which are available for Federal income
tax purposes to be applied against future net capital gains, if any, realized
subsequent to December 31, 1995. If not applied, $7,000 of the carryover
expires in 2001, $460,000 expires in 2002 and $58,000 expires in 2003. At
December 31, 1995, the Treasury Prime Cash Management Fund had unused capital
loss carryovers of approximately $2,000, which are available for Federal
income tax purposes to be applied against future net capital gains, if any,
realized subsequent to December 31, 1995. If not applied, $2,000 of the
carryover expires in 2003. At December 31, 1995, the Cash Management Fund had
unused capital loss carryovers of approximately
13
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
- -------------------------------------------------------------------------------
$201,000 available for Federal income tax purposes to be applied against
future net capital gains, if any, realized subsequent to December 31, 1995.
The carryover does not include net realized securities losses from November 1,
1995 through December 31, 1995 which are treated, for Federal income tax
purposes, as arising in fiscal 1996. If not applied, $19,000 of the carryover
expires in 2001, $151,000 expires in 2002 and $31,000 expires in 2003.
(e) Expenses: Expenses directly attributable to a Fund are charged to that
Fund's operations; expenses which are applicable to all Funds are allocated
among them on the basis of relative net assets. Fund expenses directly
attributable to a class of shares are charged to that class; expenses which
are applicable to all classes are allocated among them.
NOTE 3--FUND SHARE TRANSACTIONS
Transactions in shares of the Funds are summarized below (at $1.00 per
share):
<TABLE>
<CAPTION>
TREASURY PRIME
U.S. GOVERNMENT SECURITIES CASH MANAGEMENT
CASH MANAGEMENT FUND FUND
---------------------------------------------- ---------------
FOR THE PERIOD FOR THE PERIOD
JUNE 1, 1995 FOR THE YEAR MARCH 22, 1995
THROUGH ENDED MAY 31, THROUGH
DECEMBER 31, ------------------------------ DECEMBER 31,
1995(1) 1995 1994 1995(2)
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Institutional Shares:
Shares issued.......... 1,915,896,446 3,256,766,429 4,379,511,392 206,294,412
Dividends reinvested... 784,723 1,824,654 563,903 433,330
Shares redeemed........ (1,902,575,044) (3,196,512,306) (4,230,925,537) (192,719,213)
-------------- -------------- -------------- ------------
Net increase........... 14,106,125 62,078,777 149,149,758 14,008,529
============== ============== ============== ============
Service Shares:
Shares issued.......... 166,065,316 27,248,728 -- 187,261,796
Dividends reinvested... 393 251 -- 975
Shares redeemed........ (126,731,906) (10,529,140) -- (56,701,721)
-------------- -------------- -------------- ------------
Net increase........... 39,333,803 16,719,839 -- 130,561,050
============== ============== ============== ============
Net increase in Fund.... 53,439,928 78,798,616 149,149,758 144,569,579
============== ============== ============== ============
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
CASH MANAGEMENT
FUND
--------------------------------------------
FOR THE
PERIOD
JULY 1, 1995 FOR THE YEAR
THROUGH ENDED MAY 31,
DECEMBER ------------------------------
31, 1995(1) 1995 1994
------------ -------------- --------------
<S> <C> <C> <C>
Institutional Shares:
Shares issued.................... 930,307,164 1,491,127,430 2,167,517,783
Dividends reinvested............. 985,563 1,361,860 654,107
Shares redeemed.................. (861,416,587) (1,417,064,383) (2,099,928,742)
------------ -------------- --------------
Net increase..................... 69,876,140 75,424,907 68,243,148
============ ============== ==============
Service Shares:
Shares issued.................... 327,575,084 48,454,575 --
Dividends reinvested............. 343 309 --
Shares redeemed.................. (217,155,989) (37,076,303) --
------------ -------------- --------------
Net increase..................... 110,419,438 11,378,581 --
============ ============== ==============
Net increase in Fund.............. 180,295,578 86,803,488 68,243,148
============ ============== ==============
</TABLE>
(1) Effective June 1, 1995 and July 1, 1995, the Funds changed their fiscal
year ends from May 31 and June 30, respectively, to December 31.
(2) Commencement of operations.
NOTE 4--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFIILIATES
(a) The Trust has an Investment Advisory Agreement with FCIMCO pursuant to
which FCIMCO has agreed to provide the day-to-day management of each of the
Fund's investments for an advisory fee at an annual rate of 0.20% of each
Fund's average daily net assets.
The Trust has an Administration Agreement with FCIMCO pursuant to which
FCIMCO has agreed to assist in all aspects of each Fund's operations for an
administration fee at an annual rate of 0.15% of each Fund's average daily net
assets. In addition, FCIMCO has engaged Concord to assist in providing certain
administrative services to each Fund pursuant to a Master Sub-Administration
Agreement between FCIMCO and Concord. FCIMCO has agreed to pay Concord a fee
from its own administration fee on a monthly basis.
For the period June 1, 1995 through December 31, 1995 for the U.S.
Government Securities Cash Management Fund, the period March 22, 1995
(commencement of operations) through December 31, 1995 for the Treasury Prime
Cash Management Fund and the period July 1, 1995 through December 31, 1995 for
the Cash Management Fund, FCIMCO agreed to limit each Fund's expenses to an
annual amount not to exceed 0.35% of average daily net assets for
Institutional Shares and 0.60% of average daily net assets for Service Shares.
As a result, The U.S. Government Securities Cash Management Fund, Treasury
Prime Cash Management Fund and Cash Management Fund were reimbursed expenses
of $224,593, $107,023 and $177,520, respectively.
15
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
- -------------------------------------------------------------------------------
(b) The Trust has adopted a Service Plan pursuant to Rule 12b-1 under the
Act. Under the terms of the Service Plan, each Fund pays the Distributor an
annual fee of 0.25% of the average daily net assets of the outstanding Service
Shares for advertising, marketing and distributing each Fund's Service Shares
and for the provision of certain services to the holders of Service Shares.
The Distributor may make payments to others, including FCIMCO, FNBC and their
affiliates, for the provision of these services. For the period June 1, 1995
through December 31, 1995, the U.S. Government Securities Cash Management Fund
paid fees under the Service Plan in the amount of $56,289. For the period
March 22, 1995 (commencement of operations) through December 31, 1995, the
Treasury Prime Cash Management Fund paid fees under the Service Plan in the
amount of $38,892. For the period July 1, 1995 (initial offering of Service
Shares) through December 31, 1995, the Cash Management Fund paid fees under
the Service Plan in the amount of $73,857. Of these amounts, the following was
paid to the Distributor and FCIMCO and its affiliates:
<TABLE>
<CAPTION>
AMOUNT PAID TO
AMOUNT PAID TO FCIMCO
THE DISTRIBUTOR AND ITS AFFILIATES
--------------- ------------------
<S> <C> <C>
U.S. Government Securities Cash Management
Fund...................................... $19 $56,270
Treasury Prime Cash Management Fund........ 25 38,867
Cash Management Fund....................... 16 73,841
</TABLE>
(c) The Fund's pay each Trustee a pro-rata share of the aggregate fixed
annual fee of $25,000 and an attendance fee of $1,000 per meeting for all of
the Funds in the Prairie Family of Funds.
(d) During the year ended June 30, 1995, an affiliate of FCIMCO purchased
securities from the Cash Management Fund at an amount in excess of the
securities' fair market value. The Cash Management Fund recorded a realized
loss on these sales in the amount of $1,668,500 and the Cash Management Fund
recorded an offsetting capital contribution from the affiliate. As a result of
varying treatment for book and tax purposes, the capital contribution was
reclassified from additional paid-in-capital to accumulated net realized
losses in the Statement of Assets and Liabilities.
NOTE 5--MERGER AND SUBSEQUENT EVENT
On December 1, 1995, FCIMCO's ultimate parent company, First Chicago
Corporation, merged with NBD Bancorp, Inc., with the combined company renamed
First Chicago NBD Corporation (FCNBD). FCNBD has now begun the process of
reorganizing their proprietary mutual funds: Prairie Funds, Prairie
Institutional Funds and The Woodward Funds (whose investment adviser is NBD
Bank, a wholly owned subsidiary of NBD Bancorp, Inc., which in turn is a
wholly owned subsidiary of FCNBD).
On February 20, 1996, the Board of Trustees of The Woodward Funds and the
Board of Trustees of Prairie Funds and Prairie Institutional Funds approved
Reorganization Agreements which are subject to shareholder approval. The
expenses incurred in connection with entering into and carrying out provisions
of the Reorganization Agreements, whether or not the transactions contemplated
thereby are consummated, will be paid by FCNBD. The reorganization is intended
to be effected on a tax-free basis, so that none of the Fund's shareholders
will recognize taxable gains or losses as a result of the reorganization.
A proxy statement/prospectus describing the reorganization and the reasons
therefore will be sent to shareholders.
16
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. GOVERNMENT SECURITIES CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE YEAR FOR THE PERIOD
ENDED ENDED MAY 31, ENDED
DECEMBER 31, ------------------ MAY 31,
1995(1) 1995 1994 1993(2)
-------------- -------- -------- --------------
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $ 0.9989 $ 0.9999 $ 1.0000 $ 1.0000
-------- -------- -------- --------
Income from investment oper-
ations:
Net investment income..... 0.0320 0.0492 0.0302 0.0319
Net realized gains
(losses) from
investments.............. 0.0001 (0.0010) (0.0001) --
-------- -------- -------- --------
Total income from
investment operations... 0.0321 0.0482 0.0301 0.0319
-------- -------- -------- --------
Less dividends:
From net investment
income................... (0.0320) (0.0492) (0.0302) (0.0319)
-------- -------- -------- --------
Net change in net asset val-
ue......................... 0.0001 (0.0010) (0.0001) --
-------- -------- -------- --------
NET ASSET VALUE, END OF PE-
RIOD....................... $ 0.9990 $ 0.9989 $ 0.9999 $ 1.0000
======== ======== ======== ========
TOTAL RETURN................. 3.24%++ 5.03% 3.06% 3.25%+
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average
net assets................. 0.35%+ 0.34% 0.30% 0.02%+
Ratio of net investment
income to average net
assets..................... 5.46%+ 4.94% 3.02% 3.10%+
Ratio of expenses to average
net assets*................ 0.42%+ 0.41% 0.41% 0.49%+
Ratio of net investment
income to average net
assets*.................... 5.39%+ 4.87% 2.91% 2.63%+
Net assets, end of period
(000's omitted)............ $489,395 $475,248 $413,634 $264,527
</TABLE>
- --------
(1) For the period June 1, 1995 through December 31, 1995. Effective June 1,
1995, the Fund changed its fiscal year end from May 31 to December 31.
(2) For the period June 2, 1992 (commencement of operations) through May 31,
1993.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred,
the ratios would have been as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
17
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. GOVERNMENT SECURITIES CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--(CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
DECEMBER 31, MAY 31,
1995(1) 1995(2)
-------------- --------------
<S> <C> <C>
SERVICE SHARES:
NET ASSET VALUE, BEGINNING OF PERIOD............ $ 0.9989 $ 1.0000
-------- --------
Income from investment operations:
Net investment income......................... 0.0305 0.0199
Net realized gains (losses) from investments.. 0.0001 (0.0011)
-------- --------
Total income from investment operations...... 0.0306 0.0188
-------- --------
Less dividends:
From net investment income.................... (0.0305) (0.0199)
-------- --------
Net change in net asset value................... 0.0001 (0.0011)
-------- --------
NET ASSET VALUE, END OF PERIOD.................. $ 0.9990 $ 0.9989
======== ========
TOTAL RETURN..................................... 3.09%++ 2.01%++
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... 0.60%+ 0.57%+
Ratio of net investment income to average net
assets......................................... 5.17%+ 5.48%+
Ratio of expenses to average net assets*........ 0.69%+ 0.66%+
Ratio of net investment income to average net
assets*........................................ 5.08%+ 5.39%+
Net assets, end of period (000's omitted)....... $ 56,000 $ 16,702
</TABLE>
- --------
(1) For the period June 1, 1995 through December 31, 1995. Effective June 1,
1995, the Fund changed its fiscal year end from May 31 to December 31.
(2) For the period January 17, 1995 (initial offering date of Service Shares)
through May 31, 1995.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred,
the ratios would have been as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
18
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
TREASURY PRIME CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--(CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
ENDED
DECEMBER 31,
1995(1)
--------------
<S> <C>
INSTITUTIONAL SHARES:
NET ASSET VALUE, BEGINNING OF PERIOD............................ $ 1.0000
--------
Income from investment operations:
Net investment income......................................... 0.0399
--------
Less dividends:
From net investment income.................................... (0.0399)
--------
Net change in net asset value................................... --
--------
NET ASSET VALUE, END OF PERIOD.................................. $ 1.0000
========
TOTAL RETURN..................................................... 4.06%++
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......................... 0.35%+
Ratio of net investment income to average net assets............ 5.16%+
Ratio of expenses to average net assets*........................ 1.23%+
Ratio of net investment income to average net assets*........... 4.28%+
Net assets, end of period (000's omitted)....................... $ 14,008
</TABLE>
- --------
(1) For the period March 22, 1995 (commencement of operations) through
December 31, 1995.
* During the period, certain fees were voluntarily reimbursed. If such
voluntary fee reimbursements had not occurred, the ratios would have been
as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
19
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
TREASURY PRIME CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--(CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
ENDED
DECEMBER 31,
1995(1)
--------------
<S> <C>
SERVICE SHARES:
NET ASSET VALUE, BEGINNING OF PERIOD............................ $ 1.0000
--------
Income from investment operations:
Net investment income......................................... 0.0380
--------
Less dividends:
From net investment income.................................... (0.0380)
--------
Net change in net asset value................................... --
--------
NET ASSET VALUE, END OF PERIOD.................................. $ 1.0000
========
TOTAL RETURN..................................................... 3.86%++
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......................... 0.60%+
Ratio of net investment income to average net assets............ 4.72%+
Ratio of expenses to average net assets*........................ 0.74%+
Ratio of net investment income to average net assets*........... 4.58%+
Net assets, end of period (000's omitted)....................... $130,559
</TABLE>
- --------
(1) For the period March 22, 1995 (commencement of operations) through
December 31, 1995.
* During the period, certain fees were voluntarily reimbursed. If such
voluntary fee reimbursements had not occurred, the ratios would have been
as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
20
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--(CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD YEAR ENDED FOR THE PERIOD
ENDED JUNE 30, ENDED
DECEMBER 31, ------------------- JUNE 30,
1995(1) 1995 1994 1993(2)
-------------- -------- -------- --------------
<S> <C> <C> <C> <C>
INSTITUTIONAL SHARES:
NET ASSET VALUE, BEGINNING
OF PERIOD................. $ 0.9994 $ 0.9993 $ 0.9999 $ 1.0000
-------- -------- -------- --------
Income from investment
operations:
Net investment income.... 0.0277 0.0507 0.0333 0.0297
Net realized gains
(losses) from
investments............. 0.0002 (0.0059) (0.0006) (0.0001)
-------- -------- -------- --------
Total income from
investment operations.. 0.0279 0.0448 0.0327 0.0296
-------- -------- -------- --------
Less dividends:
From net investment
income.................. (0.0277) (0.0507) (0.0333) (0.0297)
-------- -------- -------- --------
Increase due to capital
contribution from
affiliate of Investment
Adviser (Note 3(d))....... -- 0.0060 -- --
-------- -------- -------- --------
Net change in net asset
value..................... 0.0002 0.0001 (0.0006) (0.0001)
-------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD.................... $ 0.9996 $ 0.9994 $ 0.9993 $ 0.9999
======== ======== ======== ========
TOTAL RETURN................ 2.80%++ 5.19%* 3.38% 3.25%+
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets........ 0.35%+ 0.35% 0.31% 0.05%+
Ratio of net investment
income to average net
assets.................... 5.51%+ 5.11% 3.33% 3.19%+
Ratio of expenses to
average net assets**...... 0.43%+ 0.44% 0.43% 0.56%+
Ratio of net investment
income to average net
assets**.................. 5.43%+ 5.02% 3.21% 2.68%+
Net assets, end of period
(000's omitted)........... $389,127 $319,214 $243,820 $175,713
</TABLE>
- --------
(1) For the period July 1, 1995 through December 31, 1995. Effective July 1,
1995, the Fund changed its fiscal year end from June 30 to December 31.
(2) For the period July 30, 1992 (commencement of operations) through June 30,
1993.
* Had the Portfolio not had a capital contribution by an affiliate of the
Investment Adviser during the period, the total return would have been
4.51% (See Note 4(d) to Financial Statements).
** During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred,
the ratios would have been as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
21
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
CASH MANAGEMENT FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS--(CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
DECEMBER 31, JUNE 30,
1995(1) 1995(2)
-------------- --------------
<S> <C> <C>
SERVICE SHARES:
NET ASSET VALUE, BEGINNING OF PERIOD............ $ 0.9994 $ 1.0000
-------- --------
Income from investment operations:
Net investment income......................... 0.0264 0.0245
Net realized gains (losses) from investments.. 0.0002 (0.0006)
-------- --------
Total income from investment operations...... 0.0266 0.0239
-------- --------
Less dividends:
From net investment income.................... (0.0264) (0.0245)
-------- --------
Net change in net asset value................... 0.0002 (0.0006)
-------- --------
NET ASSET VALUE, END OF PERIOD.................. $ 0.9996 $ 0.9994
======== ========
TOTAL RETURN..................................... 2.68%++ 2.47%++
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... 0.60%+ 0.60%+
Ratio of net investment income to average net
assets......................................... 5.25%+ 5.46%+
Ratio of expenses to average net assets*........ 0.69%+ 0.71%+
Ratio of net investment income to average net
assets*........................................ 5.16%+ 5.35%+
Net assets, end of period (000's omitted)....... $121,750 $ 11,372
</TABLE>
- --------
(1) For the period July 1, 1995 through December 31, 1995. Effective June 1,
1995, the Fund changed its ficsal year end from June 30 to December 31.
(2) For the period January 17, 1995 (initial offering date of Service Shares)
through June 30, 1995.
* During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee waivers and/or reimbursements had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
22
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
- -------------------------------------------------------------------------------
PRAIRIE INSTITUTIONAL FUNDS THE BOARD OF TRUSTEES AND SHAREHOLDERS
We have audited the accompanying statements of asset and liabilities,
including the portfolios of investments, of Prairie Institutional Funds
(comprising, respectively, the U.S. Government Securities Cash Managment,
Treasury Prime Cash Management and Cash Management Funds) (the "Fund") as of
December 31, 1995 and the related statements of operations for the periods
then ended, and the statements of changes in net assets and the financial
highlights for each of the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of December 31, 1995 by correspondence with the custodians and
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective funds constituting the Prairie Institutional Funds at
December 31, 1995, the results of their operations for the periods then ended,
and the changes in their net assets and the financial highlights for each of
the indicated periods, in conformity with generally accepted accounting
principles.
LOGO
New York, New York February 22, 1996
23
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
- -------------------------------------------------------------------------------
RESULTS OF SPECIAL SHAREHOLDER
MEETING (UNAUDITED):
- -------------------------------------------------------------------------------
On November 28, 1995, a special meeting of the shareholders of Prairie
Institutional Funds was held to consider the approval of a new Investment
Management agreement between the Funds and First Chicago Investment Management
Company.
The shareholders approved the new Investment Management Agreement with
respect to each Fund as follows:
<TABLE>
<CAPTION>
PORTFOLIO IN FAVOR OPPOSED ABSTAIN
--------- -------- ------- -------
<S> <C> <C> <C>
U.S. Government Securities Cash Management Fund 268,544,652 0 196,765
Treasury Prime Cash Management Fund 7,658,819 0 0
Cash Management Fund 272,674,617 313,088 23,536,693
</TABLE>
24
<PAGE>
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