<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
U.S. Government Securities
Cash Management Fund
Treasury Prime
Cash Management Fund
Cash Management Fund
SEMI-ANNUAL REPORT
June 30, 1996
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"),
theFederal Reserve Board, or any other agency. Fund shares involve certain
investment risks, including the possible loss of principal.
<PAGE>
Prairie Institutional Funds
U.S. Government Securities Cash Management Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Amortized
Maturity Amount Cost
Description Rate Date (000) (Note 2(a))
----------- -------- -------- --------- ------------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCY NOTES-92.5%
Federal Farm Credit Bank ........................................... 5.40% 12/2/96 $ 1,000 $ 999,526
Federal Home Loan Bank.............................................. 4.75% 2/24/97 10,000 9,936,104
Federal Home Loan Bank Discount Note................................ 5.22% * 7/2/96 25,000 24,996,375
Federal Home Loan Bank Discount Note................................ 5.26% * 7/8/96 10,660 10,649,097
Federal Home Loan Bank Discount Note................................ 5.26% * 1/31/97 3,935 3,811,961
Federal Home Loan Bank Discount Note................................ 5.28% * 2/4/97 6,685 6,471,461
Federal Home Loan Mortgage Corp. Discount Note...................... 5.23% * 7/1/96 70,000 70,000,000
Federal Home Loan Mortgage Corp. Discount Note...................... 5.17% * 7/5/96 15,000 14,991,383
Federal Home Loan Mortgage Corp. Discount Note...................... 5.25% * 7/15/96 72,235 72,087,347
Federal Home Loan Mortgage Corp. Discount Note...................... 5.28% * 7/18/96 14,000 13,965,094
Federal Home Loan Mortgage Corp. Discount Note...................... 5.29% * 7/31/96 60,000 59,735,500
Federal Home Loan Mortgage Corp. Discount Note...................... 5.25% * 8/6/96 20,000 19,895,100
Federal National Mortgage Association .............................. 5.39% 12/4/96 1,000 999,493
Federal National Mortgage Association Discount Note................. 5.21% * 7/12/96 20,000 19,968,161
Federal National Mortgage Association Discount Note................. 5.27% * 7/18/96 37,025 36,932,803
Federal National Mortgage Association Discount Note................. 5.21% * 7/30/96 15,000 14,937,106
Federal National Mortgage Association Discount Note................. 5.21% * 10/24/96 8,145 8,009,573
Federal National Mortgage Association Discount Note................. 5.30% * 11/27/96 25,000 24,451,597
Federal National Mortgage Association Discount Note................. 5.29% * 12/24/96 10,000 9,741,378
Federal National Mortgage Association Discount Note................. 5.40% * 12/31/96 6,000 5,835,300
--------------
Total U.S. Government Agency Notes
(amortized cost $428,414,359)....................................... 428,414,359
--------------
U.S. TREASURY BILL- 4.1%
U.S. Treasury Bill (Cost $19,104,044)............................... 5.31% 5/1/97 20,000 19,104,044
--------------
Total Investments (amortized cost $447,518,403)........................ 447,518,403
--------------
REPURCHASE AGREEMENTS-3.8%
Repurchase agreement with the Daiwa Bank,
dated 6/28/96, with a maturity value of $15,006,875 (See Footnote A) 5.50% 7/1/96 15,000 15,000,000
Repurchase agreement with the Lehman Brothers,
dated 6/28/96, with a maturity value of $2,852,283 (See Footnote B) 5.40% 7/1/96 2,851 2,851,000
--------------
Total Repurchase Agreements
(amortized cost $17,851,000)....................................... 17,851,000
--------------
Total Investments
(amortized cost $465,369,403)(a)-100.4%............................ 465,369,403
Liabilities in excess of other assets-(0.4)%.......................... (2,052,572)
--------------
NET ASSETS-100.0%..................................................... $ 463,316,831
==============
Percentages indicated are based on net assets of $463,316,831.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Yield at purchase
Footnote A: Collateralized by $15,224,000 U.S. Treasury Notes, 5.88%, due 4/30/98
with a value of $15,312,686.
Footnote B: Collateralized by $2,775,000 U.S. Treasury Notes, 7.50%, due 12/31/96
with a value of $2,882,255.
</TABLE>
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
Treasury Prime Cash Management Fund
================================================================================
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Amortized
Maturity Amount Cost
Description Rate Date (000) (Note 2(a))
----------- -------- -------- --------- -------------
U.S. GOVERNMENT OBLIGATIONS - 100.4%
U.S. Treasury Bills - 100.4%
<S> <C> <C> <C> <C>
U.S. Treasury Bill.................................... 5.02%* 7/5/96 $ 33,029 $ 33,011,138
U.S. Treasury Bill.................................... 4.98%* 7/11/96 38,323 38,270,211
U.S. Treasury Bill.................................... 4.98%* 7/25/96 20,071 20,004,561
U.S. Treasury Bill.................................... 4.97%* 8/1/96 21,723 21,630,031
U.S. Treasury Bill.................................... 5.00%* 8/8/96 9,713 9,661,722
U.S. Treasury Bill.................................... 4.96%* 8/15/96 21,418 21,284,780
U.S. Treasury Bill.................................... 5.03%* 8/22/96 9,450 9,381,575
U.S. Treasury Bill.................................... 5.06%* 8/29/96 3,000 2,975,146
U.S. Treasury Bill.................................... 5.01%* 9/5/96 3,590 3,556,763
U.S. Treasury Bill.................................... 5.07%* 9/12/96 2,000 1,979,459
U.S. Treasury Bill.................................... 5.07%* 9/19/96 2,000 1,977,489
U.S. Treasury Bill.................................... 5.10%* 10/10/96 3,000 2,957,075
U.S. Treasury Bill.................................... 5.09%* 10/31/96 3,000 2,948,252
U.S. Treasury Bill.................................... 5.16%* 11/14/96 3,000 2,941,577
U.S. Treasury Bill.................................... 5.24%* 12/12/96 3,000 2,928,387
U.S. Treasury Bill.................................... 5.32%* 2/6/97 3,294 3,187,009
U.S. Treasury Bill.................................... 5.50%* 5/29/97 3,000 2,847,833
--------------
Total U.S. Government Obligations
(Cost $181,543,008)................................... 181,543,008
--------------
Total Investments (Cost $181,543,008)(a) - 100.4% 181,543,008
Liabilities in excess of other assets-(0.4)% (662,580)
--------------
NET ASSETS - 100.0%........................................... $ 180,880,428
==============
</TABLE>
Percentages indicated are based on net assets of $180,880,428.
(a)Cost for federal income tax and financial reporting purposes are the same.
* Yield at purchase.
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
Cash Management Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings Principal Amortized
Moody's/ Maturity Amount Cost
Description S&P Rate Date (000) (Note 2(a))
----------- -------- ---------- ---------- ----------- --------------
<S> <C> <C> <C> <C> <C>
SHORT -TERM INVESTMENTS - 100.4%
Commercial Paper - 74.4%
Banking - 2.9%
Huntington National P-1/A-1 5.37% 8/6/96 $ 15,000 $ 15,000,000
--------------
Banking International - 28.8%
Abbey National NA ................................. P-1/A-1+ 5.40% 12/4/96 10,000 9,766,000
Banco Nacional de Mexico .......................... P-1/A-1+ 5.70% 7/1/96 11,950 11,950,000
Bank of Australia ................................. P-1/A-1+ 5.32% 7/17/96 7,513 7,495,236
Bayerische Vereinsbank ............................ P-1/A-1+ 5.55% 7/1/96 20,000 20,000,000
B.B.V. Finance Delaware, Inc....................... P-1/A-1 5.45% 7/1/96 10,000 10,000,000
B.B.V. Finance Delaware, Inc....................... P-1/A-1+ 5.29% 8/7/96 10,000 9,945,631
Commerzbank U.S. Financce ......................... P-1/A-1+ 5.30% 7/9/96 20,000 19,976,444
Commonwealth of Australia ......................... P-1/A-1+ 5.29% 8/12/96 10,000 9,938,283
Pemex Capital ..................................... P-1/A-1+ 5.42% 9/5/96 15,000 14,850,950
Royal Bank of Canada .............................. P-1/A-1+ 5.32% 1/17/97 9,000 8,734,000
UBS Finance ....................................... P-1/A-1+ 5.58% 7/1/96 25,000 25,000,000
--------------
147,656,544
--------------
Business & Data Processing - 1.9%
Xerox Credit ...................................... P-1/A-1 5.38% 2/18/97 10,000 9,653,289
--------------
Chemicals - Diversified - 3.9%
U.S. Borax, Inc.................................... P-1/A-1+ 5.28% 7/25/96 20,000 19,929,600
--------------
Containers & Packaging - 1.5%
Sonoco Products ................................... P-1/A-1+ 5.43% 9/10/96 7,660 7,577,968
--------------
Finance Companies, Captive - 4.2%
Pooled Accounts Receivable Capital Corp............ P-1/A-1+ 5.45% 7/19/96 10,000 9,972,750
Ranger Funding Corp. .............................. P-1/A-1 5.45% 7/3/96 11,522 11,518,511
--------------
21,491,261
--------------
Finance Companies, Non-Captive - 11.4%
Equipment Funding ................................. P-1/A-1+ 5.34% 7/8/96 18,716 18,696,567
Pooled Accounts Receivable Capital Corp............ P-1/A-1+ 5.35% 7/2/96 15,800 15,797,652
Sheffield Receivables ............................. P-1/A-1+ 5.32% 8/1/96 9,130 9,088,174
Swedish Export .................................... P-1/A-1+ 5.30% 9/4/96 15,000 14,856,458
--------------
58,438,851
--------------
Financial Services - 2.8%
General Electric .................................. P-1/A-1+ 5.41% 9/16/96 14,500 14,332,215
--------------
Foreign Government Issues - 2.4%
Kingdom of Sweden ................................. P-1/A-1+ 5.38% 2/14/97 13,000 12,557,047
--------------
Insurance, Multi-Line - 4.9%
Travelers Aetna ................................... P-1/A-1 5.34% 7/15/96 25,000 24,948,083
--------------
Pharmaceuticals - 3.5%
Glaxo Wellcome .................................... P-1/A-1+ 5.43% 9/6/96 18,000 17,818,095
--------------
Telecommunications - 2.9%
AT&T Corp. ........................................ P-1/A-1+ 5.30% 9/20/96 15,000 14,821,125
--------------
Utilities, Gas & Electric - 3.3%
South Carolina Electric & Gas ..................... P-1/A-1 5.40% 7/12/96 10,000 9,983,500
Southern California Gas ........................... P-1/A-1+ 5.30% 8/8/96 7,000 6,960,839
--------------
16,944,339
--------------
Total Commercial Paper
(amortized cost $381,168,417)...................... 381,168,417
--------------
U.S. Government Agencies - 1.1.%
Federal National Mortgage Assoc.
- Discount Note (amortized cost $5,835,300)........ 5.40% 12/31/96 6,000 5,835,300
--------------
Total Investments in Securities
(amortized cost $387,003,717)...................... 387,003,717
--------------
</TABLE>
<PAGE>
Prairie Institutional Funds
Cash Management Fund
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Amortized
Maturity Amount Cost
Description Rate Date (000) (Note 2(a))
----------- ------ ---------- ----------- -------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS - 24.9%
Repurchase agreement with Daiwa Securities America, Inc.,
dated 6/28/96 with a maturity value of $125,057,292. (See Footnote A) 5.50% 7/1/96 $ 125,000 $ 125,000,000
Repurchase agreement with Lehman Brothers Inc., dated 6/28/96
with a maturity value of $2,720,224. (See Footnote B) 5.40% 7/1/96 2,719 2,719,000
-------------
Total Repurchase Agreements
(Cost $127,719,000).................................................... 127,719,000
-------------
Total Investments (amortized cost $514,722,717)(a) - 100.4%.............. 514,722,717
Liabilities in excess of other assets-( 0.4%)............................ (2,059,080)
-------------
NET ASSETS - 100.0%...................................................... $ 512,663,637
=============
</TABLE>
- --------------------
Percentages indicated are based on net assets of $512,663,637.
(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 Notes, 7.25%, due
11/30/96 and $24,548,000 U.S. Treasury Notes, 6.88%, due
8/31/99; with an aggregate value of $126,716,648.
Footnote B: Collateralized by $2,645,000 U.S. Treasury Notes, 7.5%, due
12/31/96: with a value of $2,747,230.
See Notes to Financial Statements.
<PAGE>
<TABLE>
Prairie Institutional Funds
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1996 (Unaudited)
====================================================================================================================================
<CAPTION>
U.S. Government Treasury Prime
Securities Cash Cash Management Cash Management
Management Fund Fund Fund
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value
(amortized cost $447,518,403, $181,543,008 and $387,003,717,
respectively)....................................................... $ 447,518,403 $ 181,543,008 $ 387,003,717
Repurchase agreements (amortized cost $17,851,000, $0 and
$127,719,000, respectively).......................................... 17,851,000 -- 127,719,000
Receivable for investment securities sold.............................. 25,337,742 5,547,466 202,713,463
Receivable for Fund shares sold........................................ 17,279,338 11,545,968 22,005,185
Interest receivable.................................................... 177,679 -- 196,803
Deferred organization expenses......................................... 114,190 75,569 123,575
Prepaid expenses and other assets...................................... -- 54,664 22,849
--------------- -------------- --------------
Total Assets....................................................... 508,278,352 198,766,675 739,784,592
--------------- -------------- --------------
LIABILITIES:
Advisory fees payable.................................................. 41,197 2,410 53,207
Administration fees payable............................................ 58,337 21,889 63,141
Service Plan fees payable (Service Shares)............................. 67,645 95,148 62,635
Custodian fees and expenses............................................ 61,677 -- 26,060
Bank overdraft......................................................... 9,354 14,496 16,067
Dividends payable...................................................... 1,941,839 654,295 2,118,646
Payable for Fund shares redeemed....................................... 17,482,551 17,086,584 30,083,370
Payable for investment securities purchased............................ 25,127,742 -- 194,637,907
Accrued expenses....................................................... 171,179 11,425 59,922
--------------- -------------- --------------
Total Liabilities.................................................. 44,961,521 17,886,247 227,120,955
--------------- -------------- --------------
NET ASSETS............................................................... $ 463,316,831 $ 180,880,428 $ 512,663,637
=============== ============== ==============
Net Asset Value, Offering Price and Redemption Price per Share:
Institutional Shares:
Net Assets................................. ...................... $ 360,659,269 $ 45,604,185 $ 403,173,478
Shares of beneficial interest issued and
outstanding, $0.001 par value, unlimited
number of shares authorized.............. ...................... 361,060,849 45,607,469 403,332,257
--------------- -------------- --------------
Net Asset Value per Share.................. ...................... $ 1.00 $ 1.00 $ 1.00
=============== ============== ==============
Service Shares:
Net Assets........................................................ $ 102,657,562 $ 135,276,243 $ 109,490,159
Shares of beneficial interest issued and
outstanding, $0.001 par value, unlimited
number of shares authorized..................................... 102,771,867 135,285,985 109,533,279
--------------- -------------- --------------
Net Asset Value per Share......................................... $ 1.00 $ 1.00 $ 1.00
=============== ============== ==============
COMPOSITION OF NET ASSETS:
Shares of beneficial interest, at par $ 463,833 $ 180,893 $ 512,866
Additional paid-in capital 463,368,883 180,712,561 512,352,670
Accumulated net realized losses from investment transactions (515,885) (13,026) (201,899)
--------------- -------------- --------------
NET ASSETS, June 30, 1996................................................ $ 463,316,831 $ 180,880,428 $ 512,663,637
=============== ============== ==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Treasury Prime
Securities Cash Cash Management Cash Management
Management Fund Fund Fund
---------------- ---------------- ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest Income $ 14,000,551 $ 4,486,465 $ 13,262,569
---------------- ---------------- ----------------
Expenses:
Advisory fees 522,975 176,021 487,093
Administration fees 392,231 132,016 365,320
Services Plan fees (Service Shares) 115,641 189,936 117,895
Custodian fees and expenses 119,508 38,050 100,665
Registration fees 7,254 22,950 22,004
Legal and audit fees 33,636 14,350 37,500
Amortization of organization expenses 15,473 12,402 16,461
Transfer agent fees and expenses 8,536 5,464 8,204
Reports to shareholders 22,461 5,086 18,619
Trustees' fees 8,010 2,642 8,788
Other expenses 13,208 1,672 10,573
---------------- ---------------- ----------------
Total expenses before expense reimbursements 1,258,933 600,589 1,193,122
Less: Expense reimbursements (228,250) (100,768) (200,876)
Expenses paid by third parties (1,528) (1,849) (22,164)
---------------- ---------------- ----------------
Net Expenses 1,029,155 497,972 970,082
---------------- ---------------- ----------------
NET INVESTMENT INCOME 12,971,396 3,988,493 12,292,487
---------------- ---------------- ----------------
REALIZED GAINS (LOSSES) ON
INVESTMENT TRANSACTIONS:
Net realized gains (losses) on investment
transactions 8,700 (11,026) (32)
---------------- ---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 12,980,096 $ 3,977,467 $ 12,292,455
================ ================ ================
</TABLE>
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
U.S. Government Securities Cash Management Fund
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months For the Period Ended For the Year Ended
Ended June 30, December 31, May 31,
1996 1995(1) 1995
------------------ -------------------- ------------------
(Unaudited)
<S> <C> <C> <C>
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income $ - $ 16,178,002 $ 23,569,569
Net realized gains (losses) on investment transactions 0 4,517 (482,586)
----------------- -------------------- ------------------
Net Increase in Net Assets Resulting From
Operations 0 16,182,519 23,086,983
----------------- -------------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Institutional Shares (10,781,360) (15,014,802) (23,456,426)
Service Shares (2,190,036) (1,163,200) (113,143)
----------------- -------------------- ------------------
Total Dividends to Shareholders (12,971,396) (16,178,002) (23,569,569)
----------------- -------------------- ------------------
FUND SHARE TRANSACTIONS (at $1.00 per
Share):
Net proceeds from shares sold 1,759,142,503 2,081,961,762 3,284,015,157
Dividends reinvested 485,777 785,116 1,824,905
Cost of shares redeemed (1,841,714,595) (2,029,306,950) (3,207,041,446)
----------------- -------------------- ------------------
Net Increase (Decrease) in Net Assets from
Fund Share Transactions (82,086,315) 53,439,928 78,798,616
----------------- -------------------- ------------------
Total Increase (Decrease) in Net Assets (95,057,711) 53,444,445 78,316,030
Net Assets:
Beginning of period 545,394,446 491,950,001 413,633,971
----------------- -------------------- ------------------
End of period $ 450,336,735 $ 545,394,446 $ 491,950,001
================= ==================== ==================
</TABLE>
(1) For the period June 1, 1995 through December 31, 1995. Effective
June 1, 1995, the Fund changed its fiscal year from May 31 to
December 31.
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
Treasury Prime Cash Management Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months For the Period Ended
Ended June 30, December 31,
1996 1995(1)
------------------ --------------------
(Unaudited)
<S> <C> <C>
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income $ 3,988,493 $ 1,232,254
Net realized losses on investment transactions (11,026) (2,000)
------------------ --------------------
Net Increase in Net Assets Resulting From
Operations 3,977,467 1,230,254
------------------ --------------------
DIVIDENDS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Institutional Shares (571,381) (497,768)
Service Shares (3,417,112) (734,486)
------------------ --------------------
Total Dividends to Shareholders (3,988,493) (1,232,254)
------------------ --------------------
FUND SHARE TRANSACTIONS (at $1.00 per
Share):
Net proceeds from shares sold 780,852,090 393,556,208
Dividends reinvested 259,733 434,305
Cost of shares redeemed (744,787,948) (249,420,934)
------------------ --------------------
Net Increase in Net Assets from Fund Share
Transactions (Note 3) 36,323,875 144,569,579
------------------ --------------------
Total Increase in Net Assets 36,312,849 144,567,579
Net Assets:
Beginning of period 144,567,579 -
------------------ --------------------
End of period $ 180,880,428 $ 144,567,579
================== ====================
</TABLE>
(1) For the period March 22, 1995 (commencement of operations)
through December 31, 1995.
See Notes to Financial Statements.
<PAGE>
Prairie Institutional Funds
Cash Management Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months For the Period Ended For the Year Ended
Ended June 30, December 31, June 30,
1996 1995(1) 1995
------------------ -------------------- ------------------
(Unaudited)
<S> <C> <C> <C>
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS:
Net investment income $ 12,292,487 $ 11,743,970 $ 14,706,593
Net realized losses on investment transactions (32) (4,009) (1,706,625)
-------------- -------------- --------------
Net Increase in Net Assets Resulting From
Operations 12,292,455 11,739,961 12,999,968
-------------- -------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM NET
INVESTMENT INCOME:
Institutional Shares (10,003,203) (10,179,235) (14,606,645)
Service Shares (2,289,284) (1,564,735) (99,948)
-------------- -------------- --------------
Total Dividends to Shareholders (12,292,487) (11,743,970) (14,706,593)
-------------- -------------- --------------
FUND SHARE TRANSACTIONS (at $1.00 per
share):
Net proceeds from shares sold 1,184,694,552 1,257,882,248 1,539,582,005
Dividends reinvested 910,569 985,906 1,362,169
Cost of shares redeemed (1,183,818,308) (1,078,572,576) (1,454,140,686)
-------------- -------------- --------------
Net Increase in Net Assets from Fund Share
Transactions 1,786,813 180,295,578 86,803,488
-------------- -------------- --------------
Increase due to capital contribution from affiliate of
Investment Adviser (Note 4(d)) - - 1,668,500
-------------- -------------- --------------
Total Increase in Net Assets 1,786,781 180,291,569 86,765,363
Net Assets:
Beginning of period 510,876,856 330,585,287 243,819,924
-------------- -------------- --------------
End of period $ 512,663,637 $ 510,876,856 $ 330,585,287
============== ============== ==============
</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.
<PAGE>
Prairie Institutional Funds
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 June 30, 1996, 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 U.S. Government Securities Cash Management Fund, Treasury Prime Cash
Management Fund and Cash Management Fund (collectively, the "Funds"). As of
June 30, 1996, the Municipal Cash Management Fund had not yet commenced
operations.
The investment objective of the U.S. Government Securities Cash Management
Fund, Treasury Prime Cash Management Fund and the Cash Management Fund is to
provide investors with as high a level of current income as is consistent with
the preservation of capital and the maintenance of liquidity. The U.S.
Government Securities Cash Management Fund invests in short-term securities
issued or guaranteed as to principal or interest by the U.S. Government, its
agencies or instrumentalities and may enter into repurchase agreements. The
Treasury Prime Cash Management Fund invests in securities issued and guaranteed
as to principal and interest by the U.S. Government. The Cash Management Fund
invests in short-term money market obligations with at least 25% of the Fund's
total assets invested in bank obligations.
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 bear the 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.
First Chicago Investment Management Company ("FCIMCO"), a wholly-owned
subsidiary of The First National Bank of Chicago ("FNBC"), serves as each Fund's
investment advisor 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 Funds in the preparation of their 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 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 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 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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss 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 repurchase 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 repurchase 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 daily 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 were 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 $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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
(f) Other: Each Fund maintains a cash balance with its custodian and
receives a reduction of its custody fees and expenses for the amount of interest
earned on such uninvested cash balances. For financial reporting purposes for
the six months ended June 30, 1996, custodian fees and expenses and expenses
paid by third parties were increased by the following amounts:
<TABLE>
<CAPTION>
<S> <C>
U.S. Government Securities Cash Management Fund................ $ 1,528
Treasury Prime Cash Management Fund............................ 1,849
Cash Management Fund........................................... 22,164
</TABLE>
There was no effect on net investment income. The Funds could have invested
such cash amounts in an income-producing asset if they had not agreed to a
reduction of fees or expenses under the expense offset agreements with their
custodian.
<PAGE>
Notes to Financial Statements -- (Continued)
Note 3 - Fund Share Transactions
Transactions in shares of the Funds are summarized below (at $1.00 per share):
<TABLE>
<CAPTION>
U.S. Government Securities Treasury Prime
Cash Management Cash Management
Fund Fund
-------------- - -------------- - ------------- ------------- - --------------
For the Period For the Period
June 1, 1995 March 22, 1995
For the Six through For the Year For the Six through
Months Ended December 31, Ended Months Ended December 31,
June 30, 1996 1995(1) May 31, 1995 June 30, 1996 1995(2)
-------------- -------------- -------------- ------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
Institutional Shares:
Shares issued $ 1,427,489,889 1,915,896,446 3,256,766,429 $ 149,119,545 206,294,412
Dividends reinvested 485,516 784,723 1,824,654 259,489 433,330
Shares redeemed (1,556,779,945) (1,902,575,044) (3,196,512,306) (117,780,094) (192,719,213)
-------------- -------------- -------------- ------------- ------------
Net increase (decrease) $ (128,804,540) 14,106,125 62,078,777 31,598,940 14,008,529
============== ============== ============== ============= ============
Service Shares:
Shares issued $ 331,652,614 166,065,316 27,248,728 $ 631,732,545 187,261,796
Dividends reinvested 261 393 251 244 975
Shares redeemed (284,934,650) (126,731,906) (10,529,140) (627,007,854) (56,701,721)
-------------- -------------- -------------- ------------- ------------
Net increase $ 46,718,225 39,333,803 16,719,839 $ 4,724,935 130,561,050
============== ============== ============== ============= ============
Net increase (decrease) in Fund $ (82,086,315) 53,439,928 78,798,616 $ 36,323,875 144,569,579
============== ============== ============== ============= ============
<CAPTION>
Cash Management
Fund
-------------- - -------------- - -------------
For the Period
June 1, 1995
For the Six through For the Year
Months Ended December 31, Ended
June 30, 1996 1995(1) June 30, 1996
-------------- -------------- --------------
(Unaudited)
<S> <C> <C> <C>
Institutional Shares:
Shares issued $ 819,168,677 930,307,164 1,491,127,430
Dividends reinvested 910,302 985,563 1,361,860
Shares redeemed (806,027,426) (861,416,587) (1,417,064,383)
------------ -------------- --------------
Net Increase $ 14,051,553 69,876,140 75,424,907
============ ============== ==============
Service Shares:
Shares issued $ 365,525,875 327,575,084 48,454,575
Dividends reinvested 267 343 309
Shares redeemed (377,790,882) (217,155,989) (37,076,303)
------------ -------------- --------------
Net increased (decrease) $ (12,264,740) 110,419,438 11,378,581
============ ============== ==============
Net increase in Fund $ 1,786,813 180,295,578 86,803,488
============ ============== ==============
</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.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
Note 4 - Management Fee and Other Transactions With Affiliates
(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 six months ended June 30, 1996, 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
$228,250, $100,768 and $200,876, respectively.
(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 six months ended June
30, 1996, the U.S. Government Securities Cash Management Fund, the Treasury
Prime Cash Management Fund and the Cash Management Fund paid fees under the
Service Plan in the amounts of $115,641, $189,936 and $117,895, respectively.
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 $17 $115,624
Treasury Prime Cash Management Fund 16 189,920
Cash Management Fund 17 117,878
</TABLE>
(c) The Funds 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 - Subsequent Event
On July 15, 1996, the Prairie U.S. Government Securities Cash Management
Fund, Prairie Treasury Prime Cash Management Fund and Prairie Cash Management
Fund merged into The Woodward U.S. Government Securities Cash Management Fund,
The Woodward Treasury Prime Cash Management Fund and The Woodward Cash
Management Fund.
<PAGE>
<TABLE>
<CAPTION>
PRAIRIE INSTITUTIONAL FUNDS
U.S. Government Securities Cash Management Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
For the Six Months For the Period Ended
Ended June 30, December 31,
1996 1995(1)
---- ------
(Unaudited)
<S> <C> <C>
Institutional Shares:
Net Asset Value, Beginning of Period...................................... $ 0.9990 $ 0.9989
----------------- -----------------
Income from investment operations:
Net investment income................................................... 0.0249 0.0320
Net realized and unrealized gains (losses) from investments............. (0.0001) 0.0001
----------------- -----------------
Total income from investment operations............................ 0.0248 0.0321
----------------- -----------------
Less dividends and distributions:
From net investment income.............................................. (0.0249) (0.0320)
----------------- -----------------
Net change in net asset value............................................. (0.0001) 0.0001
----------------- -----------------
Net Asset Value, End of Period............................................ $ 0.9989 $ 0.9990
================= =================
Total return ............................................................. 2.51%++ 3.24%++
Ratios/Supplemental Data:
Ratio of expenses to average net assets................................. 0.35%+ 0.35%+
Ratio of net investment income to average net
assets................................................................ 5.01%+ 5.46%+
Ratio of expenses to average net assets*................................ 0.44%+** 0.42%+
Ratio of net investment income to average net
assets*............................................................... 4.92%+ 5.39%+
Net assets, end of period (000's omitted)............................... $ 360,659 $ 489,395
<CAPTION>
For the Year Ended May 31, For the Period Ended
----------------------------- May 31,
1995 1994 1993(2)
---- ---- ----
<S> <C> <C> <C>
Institutional Shares:
Net Asset Value, Beginning of Period...................................... $ 0.9999 $ 1.0000 $ 1.0000
------------ ------------ -----------
Income from investment operations:
Net investment income................................................... 0.0492 0.0302 0.0319
Net realized and unrealized gains (losses) from investments............. (0.0010) (0.0001) --
------------ ------------ -----------
Total income from investment operations............................ 0.0482 0.0301 0.0319
------------ ------------ -----------
Less dividends and distributions:
From net investment income.............................................. (0.0492) (0.0302) (0.0319)
------------ ------------ -----------
Net change in net asset value............................................. (0.0010) (0.0001) --
------------ ------------ -----------
Net Asset Value, End of Period............................................ $ 0.9989 $ 0.9999 $ 1.0000
============ ============ ===========
Total return ............................................................. 5.03% 3.06% 3.25%++
Ratios/Supplemental Data:
Ratio of expenses to average net assets................................. 0.34% 0.30% 0.02%+
Ratio of net investment income to average net
assets................................................................ 4.94% 3.02% 3.10%+
Ratio of expenses to average net assets*................................ 0.41% 0.41% 0.49%+
Ratio of net investment income to average net
assets*............................................................... 4.87% 2.91% 2.63%+
Net assets, end of period (000's omitted)............................... $ 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.
** During the six months ended June 30, 1996, the Fund received credits from
its custodian for interest earned on uninvested cash balances which were
used to offset custodian fees and expenses. If such credits had not
occurred, the expense ratio would have been as indicated. The ratio of net
investment income was not affected.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PRAIRIE INSTITUTIONAL FUNDS
U.S. Government Securities Cash Management Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
For the Six Months For the Period Ended For the Period Ended
Ended June 30, December 31, May 31,
1996 1995(1) 1995(2)
---- ------ ------
(Unaudited)
<S> <C> <C> <C>
Service Shares:
Net Asset Value, Beginning of Period........................... $ 0.9990 $ 0.9989 $ 1.0000
------------- ------------- ------------
Income from investment operations:
Net investment income........................................ 0.0236 0.0305 0.0199
Net realized and unrealized gains (losses) from investments.. (0.0001) 0.0001 (0.0011)
------------- ------------- ------------
Total income from investment operations.................. 0.0235 0.0306 0.0188
------------- ------------- ------------
Less dividends and distributions:
From net investment income................................... (0.0236) (0.0305) (0.0199)
------------- ------------- ------------
Net change in net asset value.................................. (0.0001) 0.0001 (0.0011)
------------- ------------- ------------
Net Asset Value, End of Period................................. $ 0.9989 $ 0.9990 $ 0.9989
============= ============= ============
Total return .................................................. 2.39%++ 3.09%++ 2.01%++
Ratios/Supplemental Data:
Ratio of expenses to average net assets...................... 0.60%+ 0.60%+ 0.57%+
Ratio of net investment income to average net
assets..................................................... 4.74%+ 5.17%+ 5.48%+
Ratio of expenses to average net assets*..................... 0.69%+** 0.69%+ 0.66%+
Ratio of net investment income to average net
assets*.................................................... 4.65%+ 5.08%+ 5.39%+
Net assets, end of period (000's omitted).................... $ 102,658 $ 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.
** During the six months ended June 30, 1996, the Fund received credits from
its custodian for interest earned on uninvested cash balances which were
used to offset custodian fees and expenses. If such credits had not
occurred, the expense ratio would have been as indicated. The ratio of net
investment income was not affected.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
<PAGE>
<TABLE>
PRAIRIE INSTITUTIONAL FUNDS
Treasury Prime Cash Management Fund
- -------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
=========================================================================================================================
<CAPTION>
For the Six Months For the Period Ended
Ended June 30, December 31,
1996 1995(1)
----- ----
(Unaudited)
<S> <C> <C>
Institutional Shares:
Net Asset Value, Beginning of Period................................. $ 1.0000 $ 1.0000
------------------- -------------------
Income from investment operations:
Net investment income.............................................. 0.0236 0.0399
Net realized and unrealized losses from investments................ (0.0001) --
------------------- -------------------
Total income from investment operations.......................... 0.0235 0.0399
------------------- -------------------
Less dividends and distributions:
From net investment income......................................... (0.0236) (0.0399)
------------------- -------------------
Net change in net asset value........................................ (0.0001) --
------------------- -------------------
Net Asset Value, End of Period....................................... $ 0.9999 $ 1.0000
=================== ===================
Total return......................................................... 2.38%++ 4.06%++
Ratios/Supplemental Data:
Ratio of expenses to average net assets............................ 0.35%+ 0.35%+
Ratio of net investment income to average net
assets............................................................ 4.75%+ 5.16%+
Ratio of expenses to average net assets*........................... 0.48%+** 1.23%+
Ratio of net investment income to average net
assets*........................................................... 4.62%+ 4.28%+
Net assets, end of period (000's omitted).......................... $ 45,604 $ 14,008
- ---------------
(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.
** During the six months ended June 30, 1996, the Fund received credits from its custodian for interest earned on
uninvested cash balances which were used to offset custodian fees and expenses. If such credits had not occurred,
the expense ratio would have been as indicated. The ratio of net investment income was not affected.
+ Annualized.
++ Not annualized.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
PRAIRIE INSTITUTIONAL FUNDS
Treasury Prime Cash Management Fund
- -------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
=========================================================================================================================
<CAPTION>
For the Six Months For the Period Ended
Ended June 30, December 31,
1996 1995(1)
----- ----
(Unaudited)
<S> <C> <C>
Service Shares:
Net Asset Value, Beginning of Period................................. $ 1.0000 $ 1.0000
------------------- -------------------
Income from investment operations:
Net investment income............................................... 0.0224 0.0380
Net realized and unrealized losses from investments................. (0.0001) --
------------------- -------------------
Total income from investment operations.......................... 0.0223 0.0380
------------------- -------------------
Less dividends and distributions:
From net investment income.......................................... (0.0224) (0.0380)
------------------- -------------------
Net change in net asset value........................................ (0.0001) --
------------------- -------------------
Net Asset Value, End of Period....................................... $ 0.9999 1.0000
=================== ===================
Total return......................................................... 2.26%++ 3.86%++
Ratios/Supplemental Data:
Ratio of expenses to average net assets............................ 0.60%+ 0.60%+
Ratio of net investment income to average net
assets........................................................... 4.50%+ 4.72%+
Ratio of expenses to average net assets*........................... 0.71%+** 0.74%+
Ratio of net investment income to average net
assets*.......................................................... 4.39%+ 4.58%+
Net assets, end of period (000's omitted).......................... $ 135,276 $ 130,559
- ---------------
(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.
** During the six months ended June 30, 1996, the Fund received credits from its custodian for interest earned on
uninvested cash balances which were used to offset custodian fees and expenses. If such credits had not occurred,
the expense ratio would have been as indicated. The ratio of net investment income was not affected.
+ Annualized.
++ Not annualized.
</TABLE>
See Notes to Financial Statements.
<PAGE>
PRAIRIE INSTITUTIONAL FUNDS
Cash Management Fund
- ------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months For the Period Ended
Ended June 30, December 31,
1996 1995(1)
------ ------
(Unaudited)
<S> <C> <C>
Institutional Shares:
Net Asset Value, Beginning of Period........................................... $ 0.9996 $ 0.9994
--------------- ----------------
Income from investment operations:
Net investment income........................................................ 0.0253 0.0277
Net realized and unrealized gains (losses) from investments.................. - 0.0002
--------------- ----------------
Total income from investment operations................................. 0.0253 0.0279
--------------- ----------------
Less dividends and distributions:
From net investment income................................................... (0.0253) (0.0277)
--------------- ----------------
Increase due to capital contribution from affiliate of
Investment Adviser - -
--------------- ----------------
Net change in net asset value.................................................. - 0.0002
--------------- ----------------
Net Asset Value, End of Period................................................. $ 0.9996 $ 0.9996
=============== ===============
Total return .................................................................. 2.56% ++ 2.80% ++
Ratios/Supplemental Data:
Ratio of expenses to average net assets...................................... 0.35% + 0.35% +
Ratio of net investment income to average net
assets..................................................................... 5.09% + 5.51% +
Ratio of expenses to average net assets**.................................... 0.44% +*** 0.43% +
Ratio of net investment income to average net
assets**................................................................... 5.01% + 5.43% +
Net assets, end of period (000's omitted).................................... $ 403,173 $ 389,127
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended June 30, For the Period
--------------------------- June 30,
1995 1994 1993(2)
-------
---- ---- ------
<S> <C> <C> <C>
Institutional Shares:
Net Asset Value, Beginning of Period..................................... $ 0.9993 $ 0.9999 $ 1.0000
----------- ------------ ------------
Income from investment operations:
Net investment income.................................................. 0.0507 0.0333 0.0297
Net realized and unrealized gains (losses) from investments............ (0.0059) (0.0006) (0.0001)
----------- ------------ ------------
Total income from investment operations........................... 0.0448 0.0327 0.0296
----------- ------------ ------------
Less dividends and distributions:
From net investment income............................................. (0.0507) (0.0333) (0.0297)
----------- ------------ ------------
Increase due to capital contribution from affiliate of
Investment Adviser 0.0060 - -
----------- ------------ ------------
Net change in net asset value............................................ 0.0001 (0.0006) (0.0001)
----------- ------------ ------------
Net Asset Value, End of Period........................................... $ 0.9994 $ 0.9993 $ 0.9999
=========== ============ ============
Total return ............................................................ 5.19% * 3.38% 3.25% +
Ratios/Supplemental Data:
Ratio of expenses to average net assets................................ 0.35% 0.31% 0.05% +
Ratio of net investment income to average net
assets............................................................... 5.11% 3.33% 3.19% +
Ratio of expenses to average net assets**.............................. 0.44% 0.43% 0.56% +
Ratio of net investment income to average net
assets**............................................................. 5.02% 3.21% 2.68% +
Net assets, end of period (000's omitted).............................. $ 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 Fund not had a capital contribution by an affiliate of the
Investment Adviser during the period, the total return would have been
4.51%.
** 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.
*** During the six months ended June 30, 1996, the Fund received credits from
its custodian for interest earned on uninvested cash balances which were
used to offset custodian fees and expenses. If such credits had not
occurred, the expense ratio would have been as indicated. The ratio of
net investment income was not affected.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PRAIRIE INSTITUTIONAL FUNDS
Cash Management Fund
- -----------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
===================================================================================================================================
For the Six Months For the Period Ended For the Period Ended
Ended June 30, December 31, June 30,
1996 1995(1) 1995(2)
------ ------ ------
(Unaudited)
<S> <C> <C> <C>
Service Shares:
Net Asset Value, Beginning of Period............... $ 0.9996 0.9994 1.0000
---------------- ---------------- ----------------
Income from investment operations:
Net investment income.................... 0.0241 0.0264 0.0245
Net realized and unrealized gains (losses) from investments -- 0.0002 (0.0006)
---------------- ---------------- ----------------
Total income from investment operations........... 0.0241 0.0266 0.0239
---------------- ---------------- ----------------
Less dividends and distributions:
From net investment income...................... (0.0241) (0.0264) (0.0245)
---------------- ---------------- ----------------
Net change in net asset value............................. -- 0.0002 (0.0006)
---------------- ---------------- ----------------
Net Asset Value, End of Period............................ $ 0.9996 0.9996 0.9994
================ ================ ================
Total return ................................................ 2.43% ++ 2.68% ++ 2.47% ++
Ratios/Supplemental Data:
Ratio of expenses to average net assets.................... 0.60% + 0.60% + 0.60% +
Ratio of net investment income to average net
assets............................... 4.85% + 5.25% + 5.46% +
Ratio of expenses to average net assets* .................. 0.70% +** 0.69% + 0.71% +
Ratio of net investment income to average net
assets* ................................ 4.76% + 5.16% + 5.35% +
Net assets, end of period (000's omitted).............. $ 109,490 $ 121,750 $ 11,372
</TABLE>
- ---------------
(1) For the period July 1, 1995 through December 31, 1995. Effective June 1,
1995, the Fund changed its fiscal year end from June 30 to December 31.
(2) For the period January 17, 1995 (initial offering date of Service
Shares) through December 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.
** During the six months ended June 30, 1996, the Fund received credits from its
custodian for interest earned on uninvested cash balances which were used to
offset custodian fees and expenses. If such credits had not occurred, the
expense ratio would have been as indicated. The ratio of net investment
income was not affected.
+ Annualized.
++ Not annualized.
See Notes to Financial Statements.
<PAGE>
PAGE>
Prairie Institutional Funds
- --------------------------------------------------------------------------------
RESULTS OF SPECIAL SHAREHOLDER MEETING (UNAUDITED)
- --------------------------------------------------------------------------------
On July 8, 1996, a special meeting of the shareholders of the Treasury
Prime Cash Management Fund of Prairie Institutional Funds was held to consider
the approval of an Agreement and Plan of Reorganization by and between Woodward
Funds and Prairie Institutional Funds.
The shareholders approved the Reorganization Agreement with respect to the
Treasury Prime Cash Management Fund as follows:
<TABLE>
<CAPTION>
Portfolio In Favor Opposed Abstain
- --------- -------- ------- -------
<S> <C> <C> <C>
Treasury Prime Cash Management Fund 119,886,862 --- 8,512,903
</TABLE>
On July 12, 1996, a special meeting of the shareholders of the U.S.
Government Securities Cash Management Fund and the Cash Management Fund of
Prairie Institutional Funds was held to consider the approval of an Agreement
and Plan of Reorganization by and between Woodward Funds and Prairie
Institutional Funds.
The shareholders approved the Reorganization 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 263,151,795 1,524,350 94,204,830
Cash Management Fund 276,162,573 1,572,496 11,763,950
</TABLE>
