FIRST OMAHA FUNDS
SEMI-ANNUAL REPORT
SEPTEMBER 30, 1999
(LOGO) FIRST OMAHA FAMILY OF FUNDS
<PAGE>
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NOTICE TO INVESTORS
Shares of the First Omaha Funds are:
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NOT FDIC INSURED
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MAY LOSE VALUE
NO BANK GUARANTEE
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An investment in the U.S.
Government Money Market Fund is not
insured or guaranteed by the
Federal Deposit Insurance
Corporation or any other government
agency. Although the Fund seeks to
preserve the value of your
investment at $1.00 per share, it
is possible to lose money by
investing in the Fund.
The First Omaha Funds are
distributed by Sunstone
Distribution Services, LLC.
-------------------------------------
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
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October 1999
Dear SHAREHOLDER:
We are pleased to provide you with the First Omaha Family of Funds' Semi-Annual
Report for the period ended September 30, 1999. In it you will find helpful
information regarding your investment, its performance and its management.
Also, our portfolio managers have given their observations on the stock and bond
markets. Please read this Report carefully and retain it with your Prospectus
for future reference.
Once again, thank you for your investment in the First Omaha Family of Funds.
We look forward to serving your future investment needs.
BOND MARKET OVERVIEW
Over the last six months, the Federal Reserve has increased the Federal Funds
rate by 1/2 of 1% and made statements to the effect that they will adopt pre-
emptive monetary policy against any signs of increasing inflationary pressures.
At his July 22, 1999 Humphrey-Hawkins Testimony, the Fed Chairman (Alan
Greenspan) stated that "if new data suggests, it is likely that the pace of
costs and price increases will be picking up, and the Federal Reserve will have
to act promptly and forcefully." The critical forces that are causing the Fed to
take this stance have been the tightness in the labor markets, the continued
strength in productivity, strong domestic demand and the upward drift in
inflationary indicators. In addition, the recent moves by the Federal Reserve
are directly related to improved health of Asian economies and the need to
unwind the three Federal Fund rate cuts instituted by the Fed last fall.
Inflationary pressures outside of the energy sector to date have been benign.
As of September 30, core Consumer Price Index (CPI) and core Producer Price
Index (PPI) inflation remained non-existent. The year-over-year rate of
increase of the core CPI has decelerated to 1.9%, while core PPI year-over-year
is up only 1.3% through August of this year. Unit labor costs remain favorable,
while productivity gains have allowed the economy to grow without igniting
inflation.
The recent glut of supply of corporate bond issuance and Y2K issues have put a
certain amount of pressure on corporate bond spreads this year. Spread is the
additional yield the investor receives for taking on additional credit risk as
compared to a non-risky credit such as a United States Treasury security. Our
analysis has shown that on a relative basis, spreads on corporate bonds are at,
or near, historical wide levels. The operating earnings for S&P 500 companies
are expected to increase 15% in 1999 and 8% for the year 2000. In 1998,
earnings were essentially flat. As the year draws to a close, we believe supply
issues should abate and Y2K fears will come to a head, thus allowing the
corporate bond market to regain confidence and potentially return spreads to
lower levels.
We invest for the long term, so when markets turn to the negative in the short
term, we try to view them as opportunities, granted as long as the fundamentals
in the economy and our outlook do not dramatically change. In our opinion, the
factors that have contributed to the low inflationary environment such as the
technological revolution, strong capacity and productivity levels, competitive
pricing on domestic and international scenes, a budget surplus with less
government, and the demographic landscape are still in place. Risks to our
outlook are that domestic demand remains at very high levels and the tight labor
market pushes wage levels higher. The recent rise in rates may cool the
consumer's demand for goods and services, especially in the housing sector.
FIRST OMAHA SHORT/INTERMEDIATE FIXED INCOME FUND
The First Omaha Short/Intermediate Fixed Income Fund invests at least 65% of its
total assets in fixed income securities, all of which are investment grade. The
portfolio expects to maintain a weighted average maturity between two to
five years.
As of September 30, 1999, the portfolio's composition was 27% government and
agency securities, 66% corporate bonds, and 7% cash equivalents. The overall
weighted average credit quality remained AA/Aa for the portfolio, while the
weighted average maturity was 4.8 years.
During the last six months, we have reduced the Funds exposure to callable
securities and purchased corporate bonds at very attractive levels versus yields
available in the Treasury market. We continued to feel that opportunities were
available
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
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in the investment-grade corporate bond market, and thus maintained our emphasis
in this sector. With the back up in Treasury yields and widening of corporate
bond spreads, performance has been hindered on the short term. Longer term, we
feel very good about the position of the Fund and will continue to emphasize the
philosophy of laddering the maturity structure and diversifying issuer exposure
in the portfolio.
The Short/Intermediate Fixed Income Fund's performance for the six months ended
September 30 has been directly affected by the rise in interest rates and the
widening of corporate bond spreads or premiums. During the period, interest
rates have increased over 1/2 of 1% across the entire U.S. Treasury yield curve.
The shift of Federal Reserve policy to a tightening bias has generated inflation
fears in the bond market, thus pushing yields higher. The average maturity and
duration in the Fund are longer than its benchmark, the Lehman Bros. Mutual Fund
Short (1-5) U.S. Government Index. The longer dated securities are more price
volatile with interest rate movements than shorter dated securities. The Fund
has been overweighted in corporate bonds versus its benchmark. Corporate bond
spread is the yield premium the issuer pays to the bondholder to buy their bonds
versus less risky bonds such as U.S. Treasury securities. When spreads, or this
premium widen, it will adversely affect the price of the bond, everything else
being equal. So a combination of having a longer duration than the Index and
overexposure to corporate bonds has hindered the portfolio's performance versus
its benchmark during the period.
SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO COMPOSITION
as of September 30, 1999
CORPORATE BONDS 66%
U.S. GOVERNMENT AGENCIES 20%
U.S. GOVERNMENTS 7%
CASH EQUIVALENTS 7%
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References to specific securities included in this letter should not be
construed as a recommendation to buy or sell shares in the companies.
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TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED 5 YEARS ENDED SINCE
9/30/99 9/30/99<F1> COMMENCEMENT<F1><F2>
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First Omaha
Short/Intermediate
Fixed Income Fund<F3> (1.43)% 5.78% 5.05%
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<F1> Annualized
<F2> Commencement date is 12/13/92
<F3> Performance data from commencement through April 9, 1995 relates to a
predecessor, First Omaha Short/Intermediate Fixed Income Fund, the assets
of which were acquired by the Fund on that date.
RETURN ON A $10,000 INVESTMENT
<TABLE>
<CAPTION>
12/13/92 9/30/93 9/30/94 9/30/95 9/30/96 9/30/97 9/30/98 9/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST OMAHA SHORT/INTERMEDIATE FIXED INCOME FUND 10,000 10,698 10,555 11,552 12,029 12,885 14,182 13,979
LEHMAN BROS. MUTUAL FUND 10,000 10,710 10,690 11,689 12,326 13,225 14,431 14,750
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/13/92. Total
Return is based on net change in N.A.V. assuming reinvestment of distributions.
Returns shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Short/Intermediate Fixed
Income Fund will fluctuate so that an investor's shares in the Fund, when
redeemed, may be worth more or less than their original cost. This Fund is
advised by First National Bank of Omaha.
The Lehman Bros. Mutual Fund Short (1-5) U.S. Government Index is an index made
up of the Treasury Bond Index (all public obligations of the U.S. Treasury,
excluding flower bonds and foreign-targeted issues) and the Agency Bond Index
(all publicly issued debt of U.S. government agencies and quasi-federal
corporations, and corporate debt guaranteed by the U.S. government). It includes
only those bonds with maturities of up to five years. The returns for this index
do not reflect any fees or expenses. It is not possible to make a direct
investment in an index.
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FIRST OMAHA FUNDS - Semi-Annual Report
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FIRST OMAHA FIXED INCOME FUND
The First Omaha Fixed Income Fund invests at least 65% of its total assets in
fixed income securities, all of which are investment grade. Our style is to
create a high-quality bond portfolio with a blend between government, government
agency, and investment-grade corporate securities. The portfolio is constructed
primarily through the laddering of bonds with various maturities along the
entire yield curve. We will emphasize areas along the yield curve where we feel
value is present. Securities are selected on a relative value comparison.
Meaning, our analysis measures the historical price/yield relationship between
comparable securities and various sectors, so that we may identify relative
value in our security selection process. Our philosophy is built on investing
for the long term, and to develop a long-term outlook that we use when
constructing our portfolio. In this manner we seek to reduce credit and
reinvestment rate risk over the long term.
As of September 30, 1999, the portfolio composition was nearly 22% government
and agency securities, 78% investment-grade corporate bonds and less than 1%
cash equivalents. The overall weighted average credit quality of the portfolio
remained the same at AA/Aa. The weighted average maturity of the portfolio is
11.0 years.
The Fixed Income Fund activity over the last six months was primarily limited to
reducing some of the call exposure in the portfolio and picking up yield
advantages in the corporate bond sector. The average maturity and duration of
the Fund remain longer in comparison to the Lehman Bros. Gov't./Corp. Bond
Index. Our outlook is for a continuation of the current low inflation
environment remaining in place. We also believe the Fund will be rewarded for
holding high investment-grade corporate bonds.
The Fund performance has been consistent with its structure of a longer duration
portfolio and overweighting towards high-quality corporate bonds. Yields in the
Treasury market have moved higher over the last six and twelve month time
frames. The back up in interest rates has been from the increased expectations
of inflation and a shift towards a tighter monetary policy by the Federal
Reserve. The performance of the corporate bond market has also hindered the
overall performance of the Fund due to the emphasis the Fund has placed towards
high investment-grade corporate bonds. Technical factors are playing a major
role as mentioned above, the glut of supply and the lack of underwriters to
carry any new debt on their books has added to the pressure of higher spreads in
the corporate bond market.
The Fixed Income Fund's performance for the six months ended September 30 has
been directly affected by the rise in interest rates and the widening of
corporate bond spreads or premiums. During the period, interest rates have
increased over 1/2 of 1% across the entire U.S. Treasury yield curve. The shift
of Federal Reserve policy to a tightening bias has generated inflation fears in
the bond market, thus pushing yields higher. The average maturity and duration
in the Fund are longer than its benchmark, the Lehman Bros. Gov't./Corp. Bond
Index. The longer dated securities are more price volatile with interest rate
movements than shorter dated securities. The Fund has been overweighted in
corporate bonds versus its benchmark. Corporate bond spreads is the yield
premium the issuer pays to the bondholder to buy their bonds versus less risky
bonds such as U.S. Treasury securities. When spreads, or this premium widen, it
will adversely affect the price of the bond, everything else being equal. So a
combination of having a longer duration than the Index and overexposure to
corporate bonds has hindered the portfolio's performance versus its benchmark
during the period.
FIXED INCOME FUND
PORTFOLIO COMPOSITION
as of September 30, 1999
CORPORATE BONDS 78%
U.S. GOVERNMENT AGENCIES 13%
U.S. GOVERNMENTS 9%
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
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TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED 5 YEARS ENDED SINCE
9/30/99 9/30/99<F1> COMMENCEMENT<F1><F2>
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First Omaha Fixed
Income Fund<F3> (3.88)% 7.15% 6.12%
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<F1> Annualized
<F2> Commencement date is 12/13/92
<F3> Performance data from commencement through April 9, 1995 relates to a
predecessor, First Omaha Fixed Income Fund, the assets of which were
acquired by the Fund on that date.
RETURN ON A $10,000 INVESTMENT
<TABLE>
<CAPTION>
12/13/92 9/30/93 9/30/94 9/30/95 9/30/96 9/30/97 9/30/98 9/30/99
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST OMAHA FIXED INCOME FUND 10,000 11,248 10,603 12,201 12,547 13,753 15,581 14,977
LEHMAN BROS. GOV'T./CORP BOND INDEX 10,000 11,255 10,789 12,337 12,893 14,129 15,944 15,685
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/13/92. Total
Return is based on net change in N.A.V. assuming reinvestment of distributions.
Returns shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Fixed Income Fund will
fluctuate so that an investor's shares in the Fund, when redeemed, may be worth
more or less than their original cost. This Fund is advised by First National
Bank of Omaha.
The Lehman Bros. Gov't./Corp. Bond Index includes all public obligations of the
U.S. Treasury, excluding flower bonds and foreign-targeted issues; all publicly
issued debt of U.S. government agencies and quasi-federal corporations, and
corporate debt guaranteed by the U.S. government; and all publicly issued, fixed
rate, nonconvertible, investment grade, dollar-denominated, SEC-registered
corporate debt (including debt issued or guaranteed by foreign sovereign
governments, municipalities, or governmental agencies, or international
agencies). The returns for this index do not reflect any fees or expenses. It is
not possible to make a direct investment in an index.
THE STOCK MARKET OVERVIEW
As we approach a new century and a new millennium reflecting with awe on the
progress made during just the past two decades, and anticipating the changes
that are in store in the years ahead, we consider the implications for
investors. In the U.S. heavy manufacturing, mining, energy and utility
industries have waned in importance as the economy has moved toward higher value
added products and services in the technology, communications, business services
and information industries. Twenty years ago energy stocks represented 30% of
the Standard & Poor's 500 Index, a grouping of 500 of the largest companies in
the U.S., but today they only make up 6%. Meanwhile the technology sector is
now rapidly growing toward that 30% threshold. Rising productivity and
declining costs have strengthened many U.S. industries and the country is
enjoying an extended period of widespread prosperity that is quite probably
unmatched in our history. The U.S. seems well positioned to reap further gains
in the years ahead, benefiting as emerging economic strength in the rest of the
world stimulates growing demand for our products and services internationally.
In spite of the many challenges and concerns, on balance the economy and the
markets are ending the 20th century on a very upbeat note.
The past six months have been rewarding for some stock market investors, but
disappointing for many. The stock market, as measured by the S&P 500 Index,
eked out a tiny 0.37% total return for the six months ended September 30, while
many sectors of the market actually lost ground. The stocks that did well were
generally small- to medium-sized companies in technology and telecommunications.
Industries that fared poorly during the period included health care and finance.
For the six months ended September 30, the S&P 400 MidCap Index had a total
return of 4.57% and the Russell 2000 Index of smaller companies posted a gain of
8.25%.
The past six months also witnessed significant rotation in the leadership of the
market. Large company growth stocks had been leading the market higher for most
of the last three years, but relinquished that role as smaller companies assumed
command last spring, with a brief flirtation with "value" during April and May.
No single group seemed able to maintain leadership as cyclicals, then
technology, and then small caps gained favor with investors.
Robust corporate earnings and almost ideal economic conditions set the stage for
what we believe could be a positive
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
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environment for stocks in the second half of our fiscal year. Concern about the
Y2K computer-programming problem adds to the mix the possibility that a
significant amount of capital is now sitting on the sidelines and more may be
pulled from the market as year-end approaches. This is a positive for the stock
market as it provides a reservoir of buying power as the concerns are answered.
Large growth companies appear stretched in valuation after a long period of very
strong performance in their stock prices. These companies appear the most
vulnerable in any market downturn. We believe that mid- to small-company stocks
and value oriented managers could potentially enjoy an extended period of
stronger relative performance as investors begin to rotate away from the large-
cap growth sector. In much the same fashion that perpetuated the long move
higher in large-cap growth, in the event relative performance moves toward
small, mid-size and value oriented managers, money will begin to chase these
less liquid stocks higher.
FIRST OMAHA BALANCED FUND
The investment goal of the First Omaha Balanced Fund is to provide a combination
of current income and capital appreciation. We attempt to meet that goal
through careful analysis and selection of securities that pass through our
quantitative and qualitative screening process for value and relative risk. The
investment horizon for the Fund is generally 3 to 5 years; therefore, we focus
on long-term results.
The First Omaha Balanced Fund provided a one-year total return of -0.36% for the
six months ended September 30, 1999. This return compares unfavorably with the
equity benchmark, the Standard & Poor's 500 Index, which was up 0.37%, but
favorably with the bond benchmark, the Lehman Bros. Gov't./Corp. Bond Index,
which was down 0.56%.
During the last six months, investors have focused their attention on technology
and large-capitalization companies. While the Fund had an interlude of relative
outperformance in April and May, the market spurned our companies in the third
quarter, returning its attention with a vengeance to technology where we were
under-represented.
Our target allocation for the portfolio is currently 45-55% stocks, 40-50% bonds
and 0-10% cash equivalents. At September 30, 1999, our allocation was 54%
equities, 45% bonds and 1% cash equivalents.
The bond segment composition was 34% treasuries and agencies and 66% A-rated or
better corporate bonds. The average quality rating of the bond portfolio was
AA2, the average coupon was 5.93%, and the average maturity was 11.2 years. The
portfolio's investment in fixed income was well diversified by type of issuer
and by maturity date. Activity was modest and related only to minor adjustments
of the portfolio's maturity ladder.
In the equity segment during the six months ended September 30, we initiated
positions in Federal Home Loan Mortgage Corporation and Federal National
Mortgage Association and eliminated holdings in Calgon Carbon Corporation, Corn
Products and Clarcor.
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
exist to provide funding for residential mortgages. Their primary function is
to provide secondary markets for home loans through issuing securitized loan
pools that are then sold to investors. Both issuers guarantee pool investors
against loss of collateral. Both mortgage companies have preferred access to
the debt market via favorable government sponsored entity status, providing a
competitive advantage over private mortgagers. We took advantage of a temporary
lull in mortgage refinancing and renewed political debate in Washington to
invest in these companies.
Calgon Carbon did not work out as planned, as a delay in creating federal clean
water regulations and passing funding appropriations held back the company's
growth prospects. With the catalyst for price appreciation removed, we sold the
position. The other two stocks eliminated, Clarcor and Corn Products, are fine
companies with strong financials and good operations but are just too small to
have adequate liquidity for our purposes.
We made significant trims to International Business Machines, Ingersoll-Rand and
Motorola on the basis of price level and reinvested the proceeds into existing
positions in Becton Dickinson, Rite Aid and Texas Utilities.
At September 30, 1999, the portfolio dividend yield was 2.6% versus the S&P 500
yield of 1.5%. The top five equity positions, accounting for 20.0% of the
equity segment, were Cyprus Amax Minerals, Parker-Hannifin, GTE, Ingersoll-Rand
and Eastman Kodak.
- - CAPITALIZATION or its abbreviation CAP represents the value of a company
as determined by the stock price multiplied by the number of outstanding
shares.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
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BALANCED FUND
TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED SINCE
9/30/99 COMMENCEMENT<F1><F2>
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First Omaha Balanced Fund (0.20)% 7.21%
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<F1> Annualized
<F2> Commencement date is 8/6/96
RETURN ON A $10,000 INVESTMENT
8/6/96 9/30/96 9/30/97 9/30/98 9/30/99
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FIRST OMAHA BALANCED FUND 10,000 10,105 12,138 12,481 12,456
S&P 500 COMPOSITE 10,000 10,431 14,650 15,975 20,417
LEHMAN BROS. GOV'T./CORP.
BOND INDEX 10,000 10,158 11,132 12,561 12,358
This chart assumes an initial investment of $10,000 made on 8/6/96. Total Return
is based on net change in N.A.V. assuming reinvestment of distributions. Returns
shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Balanced Fund will fluctuate
so that an investor's shares in the Fund, when redeemed, may be worth more or
less than their original cost. This Fund is advised by First National Bank of
Omaha.
The S&P 500 Composite is an unmanaged index of 500 selected common stocks, most
of which are listed on the New York Stock Exchange. The index is heavily
weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks. The returns for this index do not reflect any fees or expenses. It is
not possible to make a direct investment in an index.
The Lehman Bros. Gov't./Corp. Bond Index includes all public obligations of the
U.S. Treasury, excluding flower bonds and foreign-targeted issues; all publicly
issued debt of U.S. government agencies and quasi-federal corporations, and
corporate debt guaranteed by the U.S. government; and all publicly issued, fixed
rate, nonconvertible, investment grade, dollar-denominated, SEC-registered
corporate debt (including debt issued or guaranteed by foreign sovereign
governments, municipalities, or governmental agencies, or international
agencies). The returns for this index do not reflect any fees or expenses. It is
not possible to make a direct investment in an index.
PORTFOLIO COMPOSITION
as of September 30,1999
COMMON STOCKS 54%
CORPORATE BONDS 30%
U.S. GOVERNMENTS 10%
U.S. GOVERNMENT AGENCIES 5%
CASH EQUIVALENTS 1%
TOP FIVE HOLDINGS<F1>
as of September 30,1999
% OF NET ASSETS
- -----------------------------------------------------------------
Halliburton Co., Series A, 6.75%, 2/1/27 3.99%
- -----------------------------------------------------------------
U.S. Treasury Note, 7.00%, 7/15/06 2.74
- -----------------------------------------------------------------
Union Tank Car Co., 7.45%, 6/1/09 2.67
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U.S. Treasury Note, 6.625%, 6/30/01 2.65
- -----------------------------------------------------------------
Anheuser-Busch Cos., Inc., 6.75%, 8/01/03 2.63
- -----------------------------------------------------------------
<F1> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
FIRST OMAHA EQUITY FUND
In the six months ended September 30, the First Omaha Equity Fund gained 0.83%
versus the 0.37% return generated by the Standard & Poor's 500 Index. Our
performance is related to the substantial market bias towards large-
capitalization stocks with growth prospects contretemps to the April and May
flirtation with basic materials and cyclical stocks. Many stocks in the market
are significantly down from their one year highs as the result of short-term
events and we suffer through the temporary price decline. Our intention is to
invest in companies for a three- to five-year holding period; sufficient time to
reap the seeds planted in companies trading below their long-term intrinsic
value and enough time for short-term events to be long forgotten. As an
example, Cyprus AMAX has negotiated its sale for $19.54 in cash and stock to
Phelps Dodge, creating the largest American copper company. The total return on
Cyprus for the six-month period was over 60%, which shows why we remain
committed to our conservative approach of buying a stock below its intrinsic
value and selling when it exceeds that value.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
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During these past six months, investors focused their attention on technology
and large-capitalization growth companies with a brief flirtation with "value"
during April and May. In that interlude, your Fund generated significant
outperformance versus the S&P 500 Index, 11.23% vs. 1.42%. Beginning in June,
the market spurned "value" and vigorously returned its attention to technology
where the Fund was under-represented.
In the six months ended September 30, we initiated positions in Federal Home
Loan Mortgage Corporation and Federal National Mortgage Association and
eliminated holdings in Calgon Carbon Corporation, Corn Products and Clarcor.
Federal Home Loan Mortgage Corporation and Federal National Mortgage Association
exist to provide funding for residential mortgages. Their primary function is
to provide secondary markets for home loans through issuing securitized loan
pools that are then sold to investors. Both issuers guarantee pool investors
against loss of collateral. Both mortgage companies have preferred access to
the debt market via favorable government sponsored entity status, providing a
competitive advantage over private mortgagers. We took advantage of a temporary
lull in mortgage refinancing and renewed political debate in Washington to
invest in these companies.
Calgon Carbon did not work out as planned, as a delay in creating federal clean
water regulations and passing funding appropriations held back the company's
growth prospects. With the catalyst for price appreciation removed, we sold the
position. The other two positions eliminated were Clarcor and Corn Products.
Both are fine companies with strong financials and good operations but are just
too small to have adequate liquidity for our purposes.
We made significant trims to International Business Machines, Ingersoll-Rand and
Motorola on the basis of price level and reinvested the proceeds into existing
positions in Becton Dickinson, Rite Aid and Texas Utilities.
At September 30, 1999, 95% of the portfolio was invested in equities with the
balance in cash equivalents. The portfolio held positions in 39 different
companies over all economic sectors. The average dividend yield of the
companies in the portfolio was 2.7% versus the S&P 500 yield of 1.5%. The top
five equity positions, accounting for 19.9% of the equity segment, were Cyprus
Amax Minerals, Parker-Hannifin, GTE, Ingersoll-Rand and Eastman Kodak.
EQUITY FUND
PORTFOLIO COMPOSITION<F1>
as of September 30, 1999
FINANCIAL 14%
BASIC INDUSTRIES 13%
CONSUMER STAPLES 13%
TECHNOLOGY 12%
CONSUMER CYCLICALS 11%
ENERGY 11%
CAPITAL GOODS 10%
HEALTH CARE 5%
COMMUNICATION SERVICES 4%
UTILITIES 4%
TRANSPORTATION 3%
<F1> Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors include more than one industry.
TOP FIVE HOLDINGS<F2>
as of September 30, 1999
% OF NET ASSETS
- -----------------------------------------------------------------
Cyprus Amax Minerals Co. 4.54%
- -----------------------------------------------------------------
Parker-Hannifin Corp. 4.01
- -----------------------------------------------------------------
GTE Corp. 3.54
- -----------------------------------------------------------------
Ingersoll-Rand Co. 3.38
- -----------------------------------------------------------------
Eastman Kodak Co. 3.36
- -----------------------------------------------------------------
<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
PORTFOLIO FUNDAMENTAL PROFILE
as of September 30, 1999
WEIGHTED S&P
AVERAGE 500
- -----------------------------------------------------------------
Payout Ratio<F3> 36.2% 33.1%
- -----------------------------------------------------------------
Debt/Capital 39.3% 32.5%
- -----------------------------------------------------------------
ROE<F3> 18.4% 17.4%
- -----------------------------------------------------------------
PAYOUT RATIO is a ratio used to analyze a company's policy of paying cash
dividends, calculated by dividing the dividends paid on common stock by the net
income available for common stockholders. DEBT/CAPITAL is the ratio of total
debt to total stockholder's equity. ROE (RETURN ON EQUITY) equals earnings
available to common stock divided by common shareholder's equity.
PORTFOLIO VALUATION PROFILE
as of September 30, 1999
WEIGHTED S&P
AVERAGE 500
- -----------------------------------------------------------------
Price/Earnings<F3> 15.2x 22.3x
- -----------------------------------------------------------------
Price/Book Value<F3> 3.3x 3.9x
- -----------------------------------------------------------------
Yield 2.7% 1.5%
- -----------------------------------------------------------------
<F3> Based on 1999 estimates
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED 5 YEARS ENDED SINCE
9/30/99 9/30/99<F1> COMMENCEMENT<F1><F2>
- --------------------------------------------------------------------------------
First Omaha
Equity Fund<F3> 3.87% 12.52% 11.64%
- --------------------------------------------------------------------------------
<F1> Annualized
<F2> Commencement date is 12/13/92
<F3> Performance data from commencement through April 9, 1995 relates to a
predecessor, First Omaha Equity Fund, the assets of which were acquired by
the Fund on that date.
RETURN ON A $10,000 INVESTMENT
<TABLE>
<CAPTION>
12/13/92 9/30/93 9/30/94 9/30/95 9/30/96 9/30/97 9/30/98 9/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FIRST OMAHA EQUITY FUND 10,000 10,681 11,723 14,333 16,446 21,262 20,360 21,148
S&P 500 COMPOSITE 10,000 10,835 11,234 14,576 17,539 24,634 26,862 34,331
S&P 500/BARRA VALUE INDEX 10,000 11,942 12,007 15,331 18,191 25,325 25,278 30,707
</TABLE>
This chart assumes an initial investment of $10,000 made on 12/13/92. Total
Return is based on net change in N.A.V. assuming reinvestment of distributions.
Returns shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Equity Fund will fluctuate
so that an investor's shares in the Fund, when redeemed, may be worth more or
less than their original cost. This Fund is advised by First National Bank of
Omaha.
The S&P 500 Composite is an unmanaged index of 500 selected common stocks, most
of which are listed on the New York Stock Exchange. The index is heavily
weighted toward stocks with large market capitalizations and represents
approximately two-thirds of the total market value of all domestic common
stocks. The returns for this index do not reflect any fees or expenses. It is
not possible to make a direct investment in an index.
The S&P 500/Barra Value Index is a market capitalization-weighted index of all
the stocks in the Standard & Poor's 500 that have low price to book ratios. It
is designed so that approximately 50% of the Standard & Poors' 500 market
capitalization is the Barra Value Index. The other 50% is in the Barra Growth
Index. The Barra Value & Barra Growth indices are rebalanced semi-annually on
January 1 and July 1. The returns for this index do not reflect any fees or
expenses. It is not possible to make a direct investment in an index.
FIRST OMAHA GROWTH FUND
The past six months were generally rewarding for stock market investors,
although some major sectors were left behind. The market, as measured by the
S&P 500 Index, advanced by less than 1% during this period, while the S&P MidCap
400 Index rose by a more substantial 4.57%. But among the best returns were
those of smaller companies, as measured by the 8.25% return of the Russell 2000
Index.
The period witnessed significant rotation in the leadership of the market.
Large company growth stocks had been leading the market higher for most of the
last three years, but relinquished that title as smaller companies assumed
dominion last spring, with a brief flirtation with "value" in April and May. No
single group seemed able to maintain leadership as cyclicals, then technology,
and then small caps gained favor with investors. Over the long term, we believe
growth in corporate earnings will determine the best investments, not short-term
trends, so we will continue to seek companies that demonstrate the best
potential to deliver stronger than average growth in earnings.
Almost ideal economic conditions and robust corporate earnings growth bode well
for the second half of our fiscal year. Concerns about the computer programming
glitch known as Y2K may accentuate what is normally a volatile period during
October, but we expect cash parked on the sidelines will soon flow back into the
market as investors begin to look beyond the date change.
Thanks to careful stock selection and market rotation away from the larger
companies, the First Omaha Growth Fund had a total return of 9.70% during the
last six months, surpassing the S&P 500 Index return of 0.37% by a wide margin
and besting the S&P MidCap 400 Index return of 4.57%. For the twelve months
ending on September 30, the Growth Fund had a total return of 24.11%.
The Fund's out performance was aided by holdings in software stocks Adobe
Systems, BMC Software and Oracle, each of which moved significantly higher in
price. Valassis Communications was also a standout performer. Disappointments
during the period included Rite Aid, Schwab, Level 3 Communications and Qwest
Communications. Be assured
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
that we are constantly evaluating the operating performance and outlook for the
companies in which we hold stock, and making changes that we believe will
protect the gains we've made thus far and position the Fund for continued gains
in the future. During the last six months we have added positions in Canandaigua
Brands and Abercrombie & Fitch, and pared back on our largest positions in BMC
Software and Adobe Systems. We try to avoid concentrations in any particular
industry or economic sector to lessen the risk of the Fund. We also chose to
underweight the electric utility and energy industries due to our negative
outlook for those groups. This underweighting benefited the Fund's performance
during the just completed six-month period.
The median market capitalization of the Fund is currently $4.0 billion. We have
consciously been moving down the capitalization scale, expecting that the money
chasing performance will soon be exiting large-cap stocks and crowding into
smaller companies, perpetuating what we expect could be an extended period of
out performance by small- to mid-size companies.
In summary, we are pleased to report good results, for the just completed
period, for the First Omaha Growth Fund.
GROWTH FUND
PORTFOLIO COMPOSITION<F1>
as of September 30, 1999
TECHNOLOGY 19%
FINANCIAL 14%
CONSUMER STAPLES 14%
CONSUMER CYCLICALS 11%
COMMUNICATION SERVICES 11%
BASIC INDUSTRIES 10%
TRANSPORTATION 7%
UTILITIES 5%
CAPITAL GOODS 4%
HEALTH CARE 3%
ENERGY 2%
<F1> Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors include more than one industry.
TOP FIVE HOLDINGS<F2>
as of September 30, 1999
% OF NET ASSETS
- -----------------------------------------------------------------
BMC Software, Inc. 5.39%
- -----------------------------------------------------------------
Adobe Systems, Inc. 4.66
- -----------------------------------------------------------------
Swift Transportation Co., Inc. 4.04
- -----------------------------------------------------------------
Robert Mondavi Corp. 3.73
- -----------------------------------------------------------------
MGIC Investment Corp. 3.73
- -----------------------------------------------------------------
<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED SINCE
9/30/99 COMMENCEMENT<F1><F2>
- --------------------------------------------------------------------------------
First Omaha Growth Fund 24.11% 3.31%
- --------------------------------------------------------------------------------
<F1> Annualized
<F2> Commencement date is 4/1/98
RETURN ON A $10,000 INVESTMENT
4/1/98 9/30/98 9/30/99
- ------------------------------------------------------------------------
FIRST OMAHA GROWTH FUND 10,000 8,461 10,501
S&P MIDCAP 400 INDEX 10,000 8,370 10,505
This chart assumes an initial investment of $10,000 made on 4/1/98. Total Return
is based on net change in N.A.V. assuming reinvestment of distributions. Returns
shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Growth Fund will fluctuate
so that an investor's shares in the Fund, when redeemed, may be worth more or
less than their original cost. This Fund is advised by FNC Trust Group, n.a.
The S&P MidCap 400 Index consists of 400 domestic stocks chosen for market size,
liquidity and industry group representation. It is also a market-value weighted
index and was the first benchmark of midcap stock price movement. The returns
for this index do not reflect any fees or expenses. It is not possible to make a
direct investment in an index.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
FIRST OMAHA SMALL CAP VALUE FUND
The Fund had a return of 8.42% for the six-month period ending September 30.
This compares to the S&P SmallCap 600 Index and the S&P SmallCap 600 Barra Value
Index, which had returns of 9.83% and 11.01%, respectively. The main reason for
the slight under performance in the most recent period is the Fund's under
exposure to the technology sector of the market. The S&P Small Cap Index's
technology weighting was 19% vs. 6% in the Fund as of September 30. For the
period, four of the top ten performing industries were technology related.
These industry groups were Electronics (Computer Distribution), Electronics
(Semiconductor), Computer Hardware, and Electronics Instrumentation. It is the
performance of these groups that fueled the returns of the small cap indices.
During the six-month period ending September 30, there were five new additions
to the portfolio. The new positions were Transaction Systems Architects,
Medicis Pharmaceutical Corp., Jones Pharma, Inc., North Fork Bancorp, and
Casey's General Stores, Inc. Transaction Systems Architects develops software
that facilitates communication between ATMs or Point-of-Sale (POS) systems and
issuers of credit and debit cards. Transaction Systems earns a license fee,
based on transaction volume, from the users of the software. We believe the
continued growth of electronic payments worldwide bodes well for continued
growth going forward. In addition, TSA boasts a strong position in a niche
software market. While its market share in the overall worldwide market for
transaction processing software is 10%, the company's products command over 50%
of the third party software solutions.
Medicis Pharmaceutical is a leading U.S. pharmaceutical company that offers
prescription and nonprescription products exclusively to treat dermatological
conditions. Medicis' strategy is to both acquire drugs from larger companies
and develop and enhance drugs through research and development initiatives.
Medicis has no long-term debt and approximately $10 per share in cash on the
balance sheet giving it the financial flexibility to make acquisitions that will
complement its existing product line.
Jones Pharma is also a pharmaceutical company that acquires and markets already
FDA approved pharmaceuticals under its own trademark. The reason to acquire a
product base is to avoid the high cost of research and development that goes
along with a new drug discovery. The strength of Jones is its ability to acquire
established products that serve attractive market niches and maintain strong
gross margins by focusing on the higher margin products and implementing
disciplined cost control strategies.
North Fork Bancorporation operates over 110 branch locations in the states of
New York and Connecticut. Their loan portfolio is concentrated primarily on
loans secured by real estate in the New York metropolitan area. The bank's
strategy is to secure relationships with small businesses where they can supply
all of their company and family financial needs. North Forks's merits include:
strong customer relationships, industry leading profitability ratios, and the
credit quality of their loan portfolio.
Casey's General Stores operates 1,168 convenience stores in nine mid-western
states. They are located primarily in smaller communities in Iowa, Missouri,
and Illinois. Casey's stores sell gasoline, groceries, and prepared foods in
markets that are often under-served by the larger chains. Casey's is growing in
markets in which their competitors do not have the capital or buying power to
compete. In addition, Casey's has been able to fund a majority of its rapid
expansion with internal cash flow.
One of our holdings was an acquisition target in the period ending September 30.
On September 20th Jefferson-Pilot Corp. announced it would be buying Guarantee
Life Companies for $32 per share. This was only an 8% premium to its previous
closing price but Guarantee had come up from a low of $16 only six months ago.
A portion of this increase can be attributed to the improved financial condition
of the company but in the final two weeks Guarantee shot from $22 to $28 on both
heavy volume and rumors of an apparent acquisition.
Two holdings were liquidated during the recent period. Both Franklin Covey and
Lawson Products were sold to make room for positions in securities and sectors
of the market in which we felt had more upside potential.
The current structure of the Small Cap Value Fund is a diverse portfolio of
small- and mid-cap companies with strong fundamental profiles. We believe that
the portfolio should consist of companies with solid balance sheets that can
generate sufficient cash flow and are currently selling below their intrinsic
value.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
As of September 30, 1999, the portfolio was 97% invested in stocks and held cash
reserves of 3%. The equities were diversified across 31 positions with
significant exposure to the various sectors of the market.
SMALL CAP VALUE FUND
PORTFOLIO COMPOSITION<F1>
as of September 30, 1999
BASIC INDUSTRIES 23%
CONSUMER STAPLES 16%
CONSUMER CYCLICALS 12%
CAPITAL GOODS 12%
FINANCIAL 11%
HEALTH CARE 7%
TRANSPORTATION 6%
TECHNOLOGY 6%
ENERGY 4%
UTILITIES 3%
<F1> Sector weightings represent the percentage of the Fund's equity investments
in certain general sectors. These sectors include more than one industry.
TOP FIVE HOLDINGS<F2>
as of September 30, 1999
% OF NET ASSETS
- -----------------------------------------------------------------
The Guarantee Life Companies, Inc. 5.34%
- -----------------------------------------------------------------
Jones Pharma Inc. 4.76
- -----------------------------------------------------------------
Corn Products International, Inc. 4.23
- -----------------------------------------------------------------
P.H. Glatfelter Co. 4.01
- -----------------------------------------------------------------
Dallas Semiconductor Corp. 3.89
- -----------------------------------------------------------------
<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
TOTAL RETURN
as of September 30, 1999
1 YEAR ENDED SINCE
9/30/99 COMMENCEMENT<F1><F2>
- --------------------------------------------------------------------------------
FIRST OMAHA SMALL CAP VALUE FUND 7.95% 5.76%
- --------------------------------------------------------------------------------
<F1> Annualized
<F2> Commencement date is 6/10/96
RETURN ON A $10,000 INVESTMENT
6/10/96 9/30/96 9/30/97 9/30/98 9/30/99
- --------------------------------------------------------------------------------
FIRST OMAHA SMALL CAP
VALUE FUND 10,000 9,880 13,331 11,148 12,035
S&P MIDCAP 400 INDEX 10,000 10,133 14,096 13,207 16,574
S&P SMALLCAP 600 INDEX 10,000 9,978 13,667 11,115 13,064
S&P SMALLCAP 600 BARRA
VALUE INDEX 10,000 10,138 15,092 12,701 14,423
This chart assumes an initial investment of $10,000 made on 6/10/96. Total
Return is based on net change in N.A.V. assuming reinvestment of distributions.
Returns shown on this page include the reinvestment of all dividends and other
distributions. Performance figures reflect fee waivers in effect, represent past
performance, which is no guarantee of future results, and will fluctuate. In the
absence of fee waivers, Total Return would be reduced. The investment return and
principal value of an investment in the First Omaha Small Cap Value Fund will
fluctuate so that an investor's shares in the Fund, when redeemed, may be worth
more or less than their original cost. This Fund is advised by First National
Bank of Omaha.
The S&P MidCap 400 Index consists of 400 domestic stocks chosen for market size,
liquidity and industry group representation. It is also a market-value weighted
index and was the first benchmark of midcap stock price movement. It is not
possible to make a direct investment in an index.
The S&P SmallCap 600 Index consists of 600 domestic stocks chosen for market
size, liquidity (bid-asked spread, ownership, share turnover and number of no
trade days) and industry group representation. It too is a market-value weighted
index. It is not possible to make a direct investment in an index.
The S&P SmallCap 600 Barra Value Index is a market capitalization-weighted index
of all the stocks in the S&P SmallCap 600 that have low price to book ratios. It
is designed so that approximately 50% of the S&P SmallCap 600 market
capitalization is in the Barra Value Index. The other 50% is in the Barra Growth
Index. The Barra Value & Barra Growth indices are rebalanced semi-annually on
January 1 and July 1. The returns for this index do not reflect any fees or
expenses. It is not possible to make a direct investment in an index.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
---------- --------
U.S. TREASURY BILLS 0.07%
$125,000 0%, 10/28/99 $124,587
-----------
Total U.S. Treasury Bills (cost $124,587) 124,587
-----------
U.S. GOVERNMENT AGENCY DISCOUNT NOTES 38.24%
FMC DISCOUNT NOTES
5,000,000 0%, 11/4/99 4,975,444
5,000,000 0%, 12/17/99 4,945,405
10,000,000 0%, 1/14/00 9,842,063
10,000,000 0%, 1/28/00 9,821,500
2,800,000 0%, 2/10/00 2,743,944
3,650,000 0%, 2/15/00 3,574,159
10,000,000 0%, 2/25/00 9,774,192
-----------
Total FMC Discount Notes 45,676,707
-----------
FNMA DISCOUNT NOTES
5,000,000 0%, 12/8/99 4,950,416
10,000,000 0%, 2/9/00 9,801,317
-----------
Total FNMA Discount Notes 14,751,733
-----------
FHLB DISCOUNT NOTES
10,000,000 0%, 10/15/99 9,980,011
-----------
Total U.S. Government Agency Discount Notes
(cost $70,408,450) 70,408,451
-----------
U.S. GOVERNMENT AGENCIES 54.90%
FFCB
14,275,000 4.83%, 10/1/99 14,275,000
4,200,000 4.85%, 12/1/99 4,194,713
1,500,000 5.02%, 3/1/00 1,495,064
10,000,000 5.3425%, 9/1/00 9,998,164
-----------
Total FFCB Government Agencies 29,962,941
-----------
FHLB
2,080,000 8.375%, 10/25/99 2,083,850
10,000,000 5.556%, 3/1/00 9,999,374
2,000,000 6.30%, 4/28/00 2,009,146
2,800,000 5.505%, 6/22/00 2,788,366
10,000,000 5.36%, 9/22/00 10,000,000
-----------
Total FHLB Government Agencies 26,880,736
-----------
PRINCIPAL
AMOUNT VALUE
---------- --------
FHLMC
$ 1,535,000 7.98%, 1/19/00 $1,545,912
500,000 5.875%, 3/22/00 500,253
-----------
Total FHLMC 2,046,165
-----------
FNMA
9,000,000 5.81%, 10/1/99 9,000,000
1,000,000 5.73%, 10/14/99 1,000,114
5,000,000 5.95%, 11/5/99 5,002,836
1,000,000 5.81%, 11/12/99 1,000,301
1,500,000 5.83%, 11/12/99 1,500,450
2,770,000 5.06%, 3/15/00 2,763,218
1,532,000 5.57%, 3/17/00 1,531,675
1,000,000 4.98%, 3/24/00 997,503
3,000,000 5.04%, 4/6/00 2,988,181
10,000,000 5.333%, 9/6/00 9,995,747
-----------
Total FNMA 35,780,025
-----------
OTHER U.S. GOVERNMENT AGENCY SECURITIES
5,000,000 SLMA, 5.556%, 8/17/00 5,000,000
1,419,000 Tennessee Valley Authority,
8.375%, 10/1/99 1,419,000
-----------
Total Other U.S. Government Agency Securities 6,419,000
-----------
Total U.S. Government Agency Securities (cost $101,088,867) 101,088,867
-----------
REPURCHASE AGREEMENTS 6.43%
11,850,000 Morgan Stanley Dean Witter, 5.15%, dated
9/30/99, repurchase price $11,851,695,
maturing 10/1/99 (collateralized by
Freddie Mac, 6.75%, 6/15/04) 11,850,000
-----------
Total Repurchase Agreements (cost $11,850,000) 11,850,000
-----------
Total Investments (cost $183,471,905) 99.64% 183,471,905
Other Assets, less Liabilities 0.36% 657,782
-----------
NET ASSETS 100.00% $184,129,687
============
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
SHORT/INTERMEDIATE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
---------- --------
CORPORATE BONDS 64.47%
COMMUNICATIONS EQUIPMENT 7.60%
$750,000 AT&T Corp.,
6.75%, 4/1/04 $748,688
750,000 Motorola, Inc.,
6.50%, 3/1/08 732,427
-----------
1,481,115
-----------
DATA PROCESSING 3.55%
750,000 First Data Corp.,
5.80%, 12/15/08 691,590
-----------
FINANCIAL SERVICES 22.58%
750,000 Ford Motor Credit Co.,
6.5%, 2/15/06 728,303
750,000 General Electric Capital Corp.,
6.875%, 4/15/00 753,532
750,000 Goldman Sachs Group, Inc.,
6.65%, 5/15/09 713,295
750,000 LG&E Capital Corp.,
6.46%, 1/15/08 702,743
750,000 Merrill Lynch & Co.,
6.64%, 9/19/02 748,972
750,000 Morgan Stanley Dean Witter,
6.5%, 12/31/01 750,975
-----------
4,397,820
-----------
PHARMACEUTICALS 7.84%
750,000 Eli Lilly & Co.,
8.125%, 12/1/01 776,625
750,000 Upjohn Co.,
5.875%, 4/15/00 749,693
-----------
1,526,318
-----------
RETAIL 7.70%
750,000 Sears Roebuck Acceptance Notes,
6.90%, 8/1/03 749,647
750,000 Wal-Mart Stores, Inc.,
6.50%, 6/1/03 749,910
-----------
1,499,557
-----------
PRINCIPAL
AMOUNT VALUE
---------- --------
UTILITIES - ELECTRIC SERVICES 7.69%
$750,000 Monongahela Power Co.,
5.625%, 4/1/00 $749,003
750,000 Union Electric Co.,
6.875%, 8/1/04 749,085
-----------
1,498,088
-----------
UTILITIES - ELECTRIC & OTHER SERVICES
COMBINED 7.51%
750,000 Northern States Power Co.,
5.75%, 10/1/03 729,225
750,000 Potomac Electric Power Co.,
6.25%, 10/15/07 734,520
-----------
1,463,745
-----------
Total Corporate Bonds (cost $12,792,165) 12,558,233
-----------
U.S. GOVERNMENT AGENCIES 19.88%
750,000 Federal Farm Credit Bank,
5.94%, 6/10/02 746,063
750,000 Federal Farm Credit Bank,
5.72%, 4/13/05 721,800
1,000,000 Federal Home Loan Bank,
6.50%, 11/29/05 997,880
750,000 Federal Home Loan Bank,
5.45%, 1/12/09 682,507
750,000 Federal Home Loan Mortgage Corp.,
5.95%, 1/19/06 724,365
-----------
Total U.S. Government Agencies (cost $4,036,929) 3,872,615
-----------
U.S. TREASURY NOTES 3.85%
750,000 5.75%, 11/30/02 749,288
-----------
Total U.S. Treasury Notes (cost $747,832) 749,288
-----------
U.S. TREASURY STRIPS 3.27%
1,000,000 2/15/07 636,170
-----------
Total U.S. Treasury Strips (cost $667,048) 636,170
-----------
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
NUMBER OF
SHARES VALUE
---------- --------
INVESTMENT COMPANIES 6.73%
771,304 Federated Trust for U.S.
Treasury Obligations $771,304
539,981 Goldman Sachs ILA Treasury
Obligations Portfolio 539,981
-----------
Total Investment Companies (cost $1,311,285) 1,311,285
-----------
Total Investments (cost $19,555,259) 98.20% 19,127,590
Other Assets, less Liabilities 1.80% 351,633
-----------
NET ASSETS 100.00% $19,479,223
===========
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
---------- --------
CORPORATE BONDS 77.07%
COMMUNICATIONS EQUIPMENT 4.19%
$3,000,000 Motorola, Inc.,
6.50%, 3/1/08 $2,929,710
-----------
DATA PROCESSING 4.15%
3,000,000 First Data Corp.,
6.375%, 12/15/07 2,902,050
-----------
FINANCIAL SERVICES 15.93%
3,000,000 First Union National Bank,
6.18%, 2/15/36 2,864,370
2,500,000 General Electric Capital Corp.,
5.50%, 11/1/01 2,461,575
3,000,000 General Electric Capital Corp.,
6.90%, 9/15/15 2,955,270
3,000,000 Morgan Stanley Dean Witter,
5.625%, 1/20/04 2,855,310
-----------
11,136,525
-----------
FOREST PRODUCTS 3.61%
2,500,000 Kimberly-Clark Corp.,
6.875%, 2/15/14 2,521,900
-----------
GROCERY STORES 2.67%
2,000,000 Albertson's, Inc.,
6.34%, 2/25/13 1,869,760
-----------
HEAVY MACHINERY 4.17%
3,000,000 Ingersoll-Rand Co.,
6.443%, 11/15/27 2,917,170
-----------
INDUSTRIAL GOODS & SERVICES 7.16%
2,000,000 Air Products & Chemicals, Inc.,
6.25%, 6/15/03 1,973,920
3,000,000 PPG Industries, Inc.,
7.375%, 6/1/16 3,033,810
-----------
5,007,730
-----------
OIL 12.08%
2,500,000 Amoco Canada Petroleum Co. Ltd.,
6.75%, 2/15/05 2,496,800
3,000,000 Conoco, Inc.,
5.9%, 4/15/04 2,897,730
PRINCIPAL
AMOUNT VALUE
---------- --------
OIL 12.08% (CONT'D.)
$3,000,000 Halliburton Co., Series A,
6.75%, 2/1/27 $3,049,230
-----------
8,443,760
-----------
PHARMACEUTICALS 4.25%
3,000,000 Eli Lilly & Co.,
6.25%, 3/15/03 2,973,390
-----------
SOAPS & CLEANING AGENTS 2.15%
1,500,000 Colgate-Palmolive Co.,
6.85%, 11/24/99 1,502,475
-----------
UTILITIES - ELECTRIC SERVICES 7.11%
2,500,000 National Rural Utilities Cooperative
Finance Corp., 6.50%, 9/15/02 2,495,250
2,500,000 Union Electric Co.,
6.75%, 5/1/08 2,474,375
-----------
4,969,625
-----------
UTILITIES - ELECTRIC & OTHER SERVICES
COMBINED 5.48%
2,750,000 Citizens Utilities Co.,
7.60%, 6/1/06 2,824,910
1,000,000 Louisville Gas & Electric Co.,
7.50%, 7/1/02 1,007,300
-----------
3,832,210
-----------
UTILITIES - NATURAL GAS 4.12%
3,000,000 Laclede Gas Co.,
6.50%, 11/15/10 2,879,910
-----------
Total Corporate Bonds (cost $55,058,895) 53,886,215
-----------
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
---------- --------
U.S. GOVERNMENT AGENCIES 12.34%
$3,380,000 Federal Home Loan Bank,
5.875%, 2/2/06 $3,251,019
3,000,000 Federal Home Loan Bank,
6.41%, 11/13/12 2,894,190
2,500,000 Federal National Mortgage Association,
6.50%, 7/16/07 2,480,300
-----------
Total U.S. Government Agencies (cost $9,417,079) 8,625,509
-----------
U.S. TREASURY STRIPS 8.93%
1,122,000 5/15/02 966,266
4,000,000 2/15/07 2,544,680
6,000,000 2/15/12 2,728,980
-----------
Total U.S. Treasury Strips (cost $5,528,230) 6,239,926
-----------
NUMBER
OF SHARES
- -----------
INVESTMENT COMPANIES 0.23%
163,439 Goldman Sachs ILA Treasury
Obligations Portfolio 163,439
-----------
Total Investment Companies (cost $163,439) 163,439
-----------
Total Investments (cost $70,167,643) 98.57% 68,915,089
Other Assets, less Liabilities 1.43% 1,000,896
-----------
NET ASSETS 100.00% $69,915,985
===========
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
BALANCED FUND
NUMBER
OF SHARES VALUE
---------- --------
COMMON STOCKS 53.51%
BANKING 1.07%
5,900 Banc One Corp. $205,394
-----------
BUILDING PRODUCTS 1.55%
9,200 Lafarge Corp. 295,550
-----------
COMMUNICATIONS EQUIPMENT 1.66%
3,600 Motorola, Inc. 316,800
-----------
COMPUTERS & PERIPHERALS 1.40%
2,200 International Business Machines Corp. 267,025
-----------
COSMETICS 1.33%
7,400 International Flavors & Fragrances, Inc. 255,300
-----------
DATA PROCESSING 1.51%
6,600 First Data Corp. 289,575
-----------
ELECTRICAL EQUIPMENT 3.58%
3,600 Emerson Electric Co. 227,475
10,200 Parker-Hannifin Corp. 457,087
-----------
684,562
-----------
FINANCE - MORTGAGE LOAN 0.65%
1,200 Federal Home Loan Mortgage Corp. 62,400
1,000 Federal National Mortgage Assn. 62,688
-----------
125,088
-----------
FOOD 0.74%
2,900 BestFoods 140,650
-----------
FUNERAL SERVICES 1.33%
24,000 Service Corp. International 253,500
-----------
GAMES & TOYS 1.37%
13,800 Mattel, Inc. 262,200
-----------
GROCERY STORES 0.48%
2,833 Delhaize America, Inc., Class A 64,097
1,266 Delhaize America, Inc., Class B 26,823
-----------
90,920
-----------
HEAVY MACHINERY 1.90%
6,600 Ingersoll-Rand Co. 362,587
-----------
NUMBER
OF SHARES VALUE
---------- --------
INSURANCE 5.43%
11,500 American Financial Group, Inc. $322,719
2,300 American General Corp. 145,331
3,900 Marsh & McLennan Cos., Inc. 267,150
10,800 SAFECO Corp. 302,400
-----------
1,037,600
-----------
MANUFACTURING 1.79%
12,400 Harsco Corp. 342,550
-----------
MEDICAL SUPPLIES 1.39%
9,500 Becton, Dickinson & Co. 266,594
-----------
MINING 2.53%
24,700 Cyprus Amax Minerals Co. 484,737
-----------
OIL 6.04%
2,300 Exxon Corp. 174,656
7,300 Halliburton Co. 299,300
5,500 Texaco Inc. 347,188
9,000 Unocal Corp. 333,562
-----------
1,154,706
-----------
PACKAGING & CONTAINERS 1.24%
10,400 Sonoco Products Co. 237,250
-----------
PHARMACEUTICALS 1.16%
3,300 Bristol-Myers Squibb Co. 222,750
-----------
PHOTOGRAPHY 1.89%
4,800 Eastman Kodak Co. 362,100
-----------
PUBLISHING 1.30%
8,600 R.R. Donnelley & Sons Co. 248,325
-----------
RETAIL 2.56%
7,800 J.C. Penney Co., Inc. 268,125
16,000 Rite Aid Corp. 221,000
-----------
489,125
-----------
SOAPS & CLEANING AGENTS 0.50%
2,100 Colgate-Palmolive Co. 96,075
-----------
TELEPHONE 1.97%
4,900 GTE Corp. 376,688
-----------
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
---------- --------
TEXTILE MANUFACTURING 1.87%
16,300 Kellwood Co. $358,600
-----------
TOBACCO 1.49%
10,900 Universal Corp. 284,763
-----------
TRANSPORTATION 1.31%
5,200 Union Pacific Corp. 249,925
-----------
UTILITIES - ELECTRIC SERVICES 2.47%
15,600 DPL Inc. 274,950
5,300 Texas Utilities Co. 197,756
-----------
472,706
-----------
Total Common Stocks (cost $10,590,661) 10,233,645
-----------
PRINCIPAL
AMOUNT
----------
CORPORATE BONDS 29.26%
FINANCIAL SERVICES 10.01%
$500,000 General Electric Capital Corp.,
6.90%, 9/15/15 492,545
500,000 Goldman Sachs Group,
6.65%, 5/15/09 475,530
500,000 Norwest Financial, Inc.,
6.375%, 12/1/07 475,940
500,000 Southtrust Bank NA,
6.125%, 1/9/28 469,790
-----------
1,913,805
-----------
FOOD PRODUCTS 2.63%
500,000 Anheuser-Busch Cos., Inc.,
6.75%, 8/1/03 503,100
-----------
FOREST PRODUCTS 2.39%
500,000 Kimberly-Clark Corp.
6.25%, 7/15/18 457,275
-----------
OIL 3.99%
750,000 Halliburton Co., Series A,
6.75%, 2/1/27 762,308
-----------
RAIL CAR LEASING 2.67%
500,000 Union Tank Car Co.,
7.45%, 6/1/09 510,060
-----------
PRINCIPAL
AMOUNT VALUE
---------- --------
UTILITIES - ELECTRIC SERVICES 2.61%
$500,000 Tampa Electric Co.,
5.75%, 5/1/00 $499,360
-----------
UTILITIES - NATURAL GAS 4.96%
500,000 Consolidated Natural Gas Co.,
6.625%, 12/1/08 471,655
500,000 Laclede Gas Co.,
6.50%, 10/15/12 478,005
-----------
949,660
-----------
Total Corporate Bonds (cost $5,795,446) 5,595,568
-----------
U.S. GOVERNMENT AGENCIES 5.20%
500,000 Federal Home Loan Bank,
5.66%, 5/21/02 494,070
500,000 Federal National Mortgage Association,
7.27%, 8/24/05 500,500
-----------
Total U.S. Government Agencies (cost $1,010,201) 994,570
-----------
U.S. TREASURY NOTES 8.03%
500,000 6.625%, 6/30/01 507,695
500,000 5.875%, 2/15/04 502,030
500,000 7.00%, 7/15/06 524,895
-----------
Total U.S. Treasury Notes (cost $1,511,513) 1,534,620
-----------
U.S. TREASURY STRIPS 2.02%
850,000 2/15/12 386,605
-----------
Total U.S. Treasury Strips (cost $368,709) 386,605
-----------
NUMBER
OF SHARES
----------
INVESTMENT COMPANIES 1.19%
228,336 Goldman Sachs ILA Treasury
Obligations Portfolio 228,336
-----------
Total Investment Companies (cost $228,335) 228,336
-----------
Total Investments (cost $19,504,865) 99.21% 18,973,344
Other Assets, less Liabilities 0.79% 151,745
-----------
NET ASSETS 100.00% $19,125,089
===========
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
EQUITY FUND
NUMBER
OF SHARES VALUE
---------- --------
COMMON STOCKS 94.88%
BANKING 1.86%
93,700 Banc One Corp. $3,261,931
-----------
BUILDING PRODUCTS 2.77%
151,000 Lafarge Corp. 4,850,875
-----------
COMMUNICATIONS EQUIPMENT 2.78%
55,400 Motorola, Inc. 4,875,200
-----------
COMPUTERS & PERIPHERALS 2.45%
35,300 International Business Machines Corp. 4,284,537
-----------
COSMETICS 2.25%
114,400 International Flavors & Fragrances, Inc. 3,946,800
-----------
DATA PROCESSING 2.72%
108,500 First Data Corp. 4,760,438
-----------
ELECTRICAL EQUIPMENT 6.14%
59,100 Emerson Electric Co. 3,734,381
156,600 Parker-Hannifin Corp. 7,017,638
-----------
10,752,019
-----------
FINANCE - MORTGAGE LOAN 2.01%
33,800 Federal Home Loan Mortgage Corp. 1,757,600
28,200 Federal National Mortgage Assn. 1,767,788
-----------
3,525,388
-----------
FOOD 1.30%
47,000 BestFoods 2,279,500
-----------
FUNERAL SERVICES 2.23%
370,300 Service Corp. International 3,911,294
-----------
GAMES & TOYS 2.31%
212,600 Mattel, Inc. 4,039,400
-----------
GROCERY STORES 0.67%
14,499 Delhaize America, Inc., Class A 307,197
38,033 Delhaize America, Inc., Class B 860,497
-----------
1,167,694
-----------
NUMBER
OF SHARES VALUE
---------- --------
HEAVY MACHINERY 3.38%
107,900 Ingersoll-Rand Co. $5,927,756
-----------
INSURANCE 9.49%
187,900 American Financial Group, Inc. 5,272,944
36,900 American General Corp. 2,331,619
63,800 Marsh & McLennan Cos., Inc. 4,370,300
166,200 SAFECO Corp. 4,653,600
-----------
16,628,463
-----------
MANUFACTURING 3.02%
191,300 Harsco Corp. 5,284,662
-----------
MEDICAL SUPPLIES 2.41%
150,500 Becton, Dickinson & Co. 4,223,406
-----------
MINING 4.54%
404,900 Cyprus Amax Minerals Co. 7,946,162
-----------
OIL 10.69%
38,000 Exxon Corp. 2,885,625
120,300 Halliburton Co. 4,932,300
90,900 Texaco Inc. 5,738,062
139,200 Unocal Corp. 5,159,100
-----------
18,715,087
-----------
PACKAGING & CONTAINERS 2.21%
169,800 Sonoco Products Co. 3,873,563
-----------
PHARMACEUTICALS 2.07%
53,700 Bristol-Myers Squibb Co. 3,624,750
-----------
PHOTOGRAPHY 3.36%
78,100 Eastman Kodak Co. 5,891,669
-----------
PUBLISHING 2.18%
132,000 R.R. Donnelley & Sons Co. 3,811,500
-----------
RETAIL 4.30%
120,000 J.C. Penney Co., Inc. 4,125,000
246,100 Rite Aid Corp. 3,399,256
-----------
7,524,256
-----------
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
---------- --------
SOAPS & CLEANING AGENTS 1.84%
70,500 Colgate-Palmolive Co. $3,225,375
-----------
TELEPHONE 3.54%
80,700 GTE Corp. 6,203,813
-----------
TEXTILE MANUFACTURING 3.26%
259,500 Kellwood Co. 5,709,000
-----------
TOBACCO 2.50%
167,800 Universal Corp. 4,383,775
-----------
TRANSPORTATION 2.43%
88,500 Union Pacific Corp. 4,253,531
-----------
UTILITIES - ELECTRIC SERVICES 4.17%
239,900 DPL Inc. 4,228,238
82,200 Texas Utilities Co. 3,067,087
-----------
7,295,325
-----------
Total Common Stocks (cost $146,828,501) 166,177,169
-----------
INVESTMENT COMPANIES 4.94%
5,857,418 Federated Trust for
U.S. Treasury Obligations 5,857,418
2,788,666 Goldman Sachs ILA Treasury
Obligations Portfolio 2,788,666
-----------
Total Investment Companies (cost $8,646,084) 8,646,084
-----------
Total Investments (cost $155,474,585) 99.82% 174,823,253
Other Assets, less Liabilities 0.18% 310,256
-----------
NET ASSETS 100.00% $175,133,509
============
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
GROWTH FUND
NUMBER
OF SHARES VALUE
---------- --------
COMMON STOCKS 97.16%
AUTOMOTIVE PARTS 5.10%
10,000 Dura Automotive Systems, Inc.<F1> $ 240,625
19,000 Genuine Parts Co. 504,687
-----------
745,312
-----------
BEVERAGES 8.58%
9,000 Canandaigua Brands, Inc.<F1> 537,750
10,000 The Pepsi Bottling Group, Inc. 170,625
14,500 Robert Mondavi Corp., Class A<F1> 544,656
-----------
1,253,031
-----------
BUSINESS SERVICES 1.22%
4,000 Automatic Data Processing, Inc. 178,500
-----------
CHEMICALS 2.82%
13,000 Sigma-Aldrich Corp. 412,750
-----------
COMMUNICATION SERVICES 5.56%
8,000 Plantronics, Inc.<F1> 398,000
14,000 Qwest Communications International Inc.<F1> 413,875
-----------
811,875
-----------
COMPUTER COMPONENTS 5.39%
11,000 BMC Software, Inc.<F1> 787,188
-----------
COMPUTER EQUIPMENT 4.66%
6,000 Adobe Systems, Inc. 681,000
-----------
COMPUTER SERVICES 4.08%
1,000 At Home Corp.<F1> 41,437
500 DoubleClick, Inc.<F1> 59,563
800 Lycos, Inc.<F1> 40,100
10,000 Oracle Corp.<F1> 455,000
-----------
596,100
-----------
DIVERSIFIED 1.12%
3,500 Cooper Industries, Inc. 163,625
-----------
ELECTRONICS 5.22%
30,000 Sensormatic Electronics Corp.<F1> 380,625
7,500 Thomas & Betts Corp. 382,500
-----------
763,125
-----------
NUMBER
OF SHARES VALUE
---------- --------
FINANCIAL SERVICES 11.82%
8,000 Charles Schwab Corp. $269,500
3,000 Donaldson, Lufkin & Jenrette, Inc.<F1> 45,375
9,200 MBIA, Inc. 428,950
11,400 MGIC Investment Corp. 544,350
12,000 Provident Financial Group, Inc. 438,750
-----------
1,726,925
-----------
FOOD 3.53%
14,700 SYSCO Corp. 515,419
-----------
HEALTH CARE SERVICES 5.17%
24,000 Cerner Corp.<F1> 366,000
8,000 United Healthcare Corp. 389,500
-----------
755,500
-----------
INDUSTRIAL 3.66%
10,500 PACCAR, Inc. 534,188
-----------
MACHINERY & EQUIPMENT 1.23%
4,400 Dover Corp. 179,850
-----------
MANUFACTURING 9.47%
27,200 Azurix Corp.<F1> 467,500
3,200 Illinois Tool Works Inc. 238,600
5,000 Nucor Corp. 238,125
10,000 Valassis Communications, Inc.<F1> 439,375
-----------
1,383,600
-----------
OIL & GAS 3.72%
6,000 Enron Corp. 247,500
15,000 Midcoast Energy Resources, Inc. 296,250
-----------
543,750
-----------
RETAIL 2.82%
4,000 Abercrombie & Fitch Co. 136,250
20,000 Rite Aid Corp. 276,250
-----------
412,500
-----------
TELECOMMUNICATIONS 5.46%
13,200 Century Telephone Enterprise 536,250
5,000 Level 3 Communications, Inc.<F1> 261,093
-----------
797,343
-----------
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
---------- --------
TRANSPORTATION 6.53%
24,000 Southwest Airlines Co. $364,500
30,000 Swift Transportation Co., Inc.<F1> 590,625
-----------
955,125
-----------
Total Common Stocks (cost $12,366,316) 14,196,706
-----------
INVESTMENT COMPANIES 1.92%
280,228 Goldman Sachs ILA Treasury
Obligations Portfolio 280,228
-----------
Total Investment Companies (cost $280,228) 280,228
-----------
REAL ESTATE INVESTMENT TRUSTS 2.37%
10,000 Spieker Properties, Inc. 346,875
-----------
Total Real Estate Investment Trusts (cost $357,198) 346,875
-----------
Total Investments (cost $13,003,742) 101.45% 14,823,809
-----------
Liabilities, less Other Assets (1.45)% (212,459)
-----------
NET ASSETS 100.00% $14,611,350
===========
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
September 30, 1999 (Unaudited)
SMALL CAP VALUE FUND
NUMBER
OF SHARES VALUE
---------- --------
COMMON STOCKS 96.70%
AIRLINES 2.05%
8,400 Midwest Express Holdings, Inc.<F1> $219,975
-----------
BANKING 2.46%
13,500 North Fork Bancorporation, Inc. 263,250
-----------
CHEMICALS 10.16%
9,800 Dexter Corp. 365,662
27,100 Oil-Dri Corp. of America 394,644
14,000 WD-40 Co. 327,688
-----------
1,087,994
-----------
COMPUTER SOFTWARE 1.89%
7,500 Transaction Systems Architects, Inc.<F1> 202,031
-----------
CONSUMER PRODUCTS 2.29%
61,200 Hartmarx Corp. 244,800
-----------
ELECTRONICS 6.55%
7,800 Dallas Semiconductor Corp. 416,812
7,200 Teleflex, Inc. 284,400
-----------
701,212
-----------
FOOD 9.42%
14,900 Corn Products International, Inc. 453,519
36,400 Nash-Finch Co. 254,800
13,100 Universal Foods Corp. 300,481
-----------
1,008,800
-----------
HOME FURNISHINGS 3.71%
10,300 National Presto Industries, Inc. 397,837
-----------
INSURANCE 7.77%
9,300 American Financial Group, Inc. 260,981
18,700 The Guarantee Life Companies, Inc. 571,519
-----------
832,500
-----------
MACHINERY & EQUIPMENT 5.19%
10,300 Modine Manufacturing Co. 240,119
6,300 Tecumseh Products Co., Class A 315,787
-----------
555,906
-----------
MANUFACTURING 2.21%
7,000 Tennant Co. 237,125
-----------
MEDICAL - DRUGS 7.34%
15,450 Jones Pharma, Inc. 509,367
9,700 Medicis Pharmaceutical Corp.<F1> 276,450
-----------
785,817
-----------
NUMBER
OF SHARES VALUE
---------- --------
METAL PRODUCTS 3.13%
25,200 Amcast Industrial Corp. $335,475
-----------
MINING 2.06%
7,100 Cleveland-Cliffs, Inc. 220,988
-----------
MOTOR VEHICLE PARTS & ACCESSORIES 3.74%
23,800 CLARCOR Inc. 400,138
-----------
OIL & GAS 3.84%
12,500 Newfield Exploration Co.<F1> 411,719
-----------
PACKAGING & CONTAINERS 3.29%
9,300 West Pharmaceutical Services, Inc. 352,819
-----------
PAPER PRODUCTS 4.01%
26,100 P.H. Glatfelter Co. 429,019
-----------
RETAIL 2.45%
19,600 Casey's General Stores, Inc. 262,762
-----------
TEXTILE MANUFACTURING 2.98%
14,500 Kellwood Co. 319,000
-----------
TOBACCO 3.41%
14,000 Universal Corp. 365,750
-----------
TRUCKING LEASING 3.69%
22,400 Werner Enterprises, Inc. 394,800
-----------
UTILITIES - ELECTRIC SERVICES 3.07%
10,900 IDACORP, Inc. 328,363
-----------
Total Common Stocks (cost $11,054,176) 10,358,080
-----------
INVESTMENT COMPANIES 3.17%
339,921 Goldman Sachs ILA Treasury
Obligations Portfolio 339,921
-----------
Total Investment Companies (cost $339,921) 339,921
-----------
Total Investments (cost $11,394,097) 99.88% 10,698,001
Other Assets, less Liabilities 0.12% 13,234
-----------
NET ASSETS 100.00% $10,711,235
===========
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
U.S. SHORT/
GOVERNMENT INTERMEDIATE FIXED SMALL CAP
MONEY MARKET FIXED INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost
$183,471,905, $19,555,259,
$70,167,643, $19,504,865,
$155,474,585, $13,003,742 and
$11,394,097, respectively) $183,471,905 $19,127,590 $68,915,089 $18,973,344 $174,823,253 $14,823,809 $10,698,001
- ----------------------------------
Receivable for securities sold - 3,577 - - - - -
- ----------------------------------
Interest and dividends
receivable 1,398,995 345,103 1,002,415 153,724 310,497 18,525 8,522
- ----------------------------------
Organizational expenses, net of
accumulated amortization 3,656 3,656 3,656 1,725 3,656 10,518 3,244
- ----------------------------------
Other assets 86,682 11,662 17,703 12,031 39,779 8,776 13,286
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Assets 184,961,238 19,491,588 69,938,863 19,140,824 175,177,185 14,861,628 10,723,053
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payable for securities purchased - - - - - 236,158 -
- ------------------------------------
Dividend payable 795,409 - - - - - -
- ----------------------------------
Accrued expenses and
other liabilities 15,773 10,690 15,244 13,748 18,233 12,729 10,801
- ----------------------------------
Accrued investment advisory fee 20,369 1,675 7,634 1,987 25,443 1,391 1,017
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Liabilities 831,551 12,365 22,878 15,735 43,676 250,278 11,818
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS $184,129,687 $19,479,223 $69,915,985 $19,125,089 $175,133,509 $14,611,350 $10,711,235
- ---------------------------------- ============ ============ ============ ============ ============ ============ ============
NET ASSETS CONSIST OF:
Capital stock 1,061 21 80 23 190 14 14
- ----------------------------------
Paid-in capital in
excess of par 184,147,510 20,114,532 70,270,099 18,559,448 121,902,641 13,528,628 11,727,664
- ----------------------------------
Undistributed net
investment income 8,012 19,106 76,483 8,697 (2,619) (12,777) (659)
- ----------------------------------
Undistributed net realized gain
(loss) on investments (26,896) (226,767) 821,877 1,088,442 33,884,629 (724,582) (319,688)
- ----------------------------------
Net unrealized appreciation
(depreciation) on investments - (427,669) (1,252,554) (531,521) 19,348,668 1,820,067 (696,096)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Assets $184,129,687 $19,479,223 $69,915,985 $19,125,089 $175,133,509 $14,611,350 $10,711,235
- ---------------------------------- ============ ============ ============ ============ ============ ============ ============
CAPITAL STOCK, $0.00001 PAR VALUE
Authorized 300,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
- ----------------------------------
Issued and outstanding 184,156,495 2,007,323 7,022,277 1,762,000 13,089,912 1,404,585 1,007,834
- ----------------------------------
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE
(NET ASSETS/SHARES OUTSTANDING) $1.00 $9.70 $9.96 $10.85 $13.38 $10.40 $10.63
- ---------------------------------- ====== ====== ====== ====== ====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Statements of Operations
For the Period from April 1, 1999 to September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
U.S. SHORT/
GOVERNMENT INTERMEDIATE FIXED SMALL CAP
MONEY MARKET FIXED INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $3,570,230 $604,510 $ 2,362,695 $ 326,790 $181,478 $5,434 $8,226
Dividends - - - 146,407 2,257,693 63,854 122,931
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
3,570,230 604,510 2,362,695 473,197 2,439,171 69,288 131,157
------------ ------------ ------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 176,624 48,491 219,317 87,022 769,462 55,344 51,928
- ----------------------------------
Fund administration and
accounting fees 141,299 19,396 73,106 23,206 205,190 25,069 25,069
- ----------------------------------
Shareholder servicing fees 23,420 14,598 21,392 15,148 31,607 14,372 14,485
- ----------------------------------
Custody fees 21,195 2,909 10,966 3,481 30,778 2,214 1,833
- ----------------------------------
Federal and state
registration fees 13,355 5,320 7,740 6,250 14,596 5,222 7,380
- ----------------------------------
Reports to shareholders 4,557 778 2,885 1,029 7,611 1,400 477
- ----------------------------------
Professional fees 4,442 4,283 5,501 4,413 7,947 3,902 4,159
- ----------------------------------
Amortization of
organization expenses 3,483 3,483 3,483 468 3,483 1,506 965
- ----------------------------------
Directors' fees 3,437 740 2,561 802 6,827 646 405
- ----------------------------------
Insurance 2,169 389 1,538 535 4,467 100 276
- ----------------------------------
Pricing fees 309 1,937 1,932 1,984 957 630 693
- ----------------------------------
Administrative services
plan fees - 8,625 33,434 9,378 89,475 - 5,691
- ----------------------------------
Other expenses 1,161 1,581 1,724 1,594 2,804 678 495
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total expenses before waiver 395,451 112,530 385,579 155,310 1,175,204 111,083 113,856
- ----------------------------------
Waiver of expenses (93,903) (16,074) (61,037) (36,168) (117,836) (29,018) (33,035)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Expenses 301,548 96,456 324,542 119,142 1,057,368 82,065 80,821
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME 3,268,682 508,054 2,038,153 354,055 1,381,803 (12,777) 50,336
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss)
on investments (8,727) 24,762 43,500 852,440 15,006,198 203,312 (473,417)
- ----------------------------------
Change in unrealized
appreciation (depreciation)
on investments - (612,117) (3,401,544) (824,515) (10,852,402) 1,202,174 1,559,742
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net Gain (Loss) on Investments (8,727) (587,355) (3,358,044) 27,925 4,153,796 1,405,486 1,086,325
- ----------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $3,259,955 $(79,301) $(1,319,891) $381,980 $5,535,599 $1,392,709 $1,136,661
- ---------------------------------- ============ ============ ============ ============ ============ ============ ============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. GOVERNMENT SHORT/INTERMEDIATE
MONEY MARKET FUND FIXED INCOME FUND FIXED INCOME FUND
------------------------- ------------------------- --------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1999 1999 1999 1999 1999 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $3,268,682 $4,868,296 $508,054 $1,056,707 $2,038,153 $4,729,998
- ----------------------------------
Net realized gain (loss)
on investments (8,727) 1,111 24,762 91,388 43,500 1,053,007
- ----------------------------------
Change in unrealized appreciation
(depreciation) on investments - - (612,117) (39,148) (3,401,544) (1,136,109)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations 3,259,955 4,869,407 (79,301) 1,108,947 (1,319,891) 4,646,896
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (3,268,682) (4,868,296) (511,547) (1,056,399) (2,047,323) (4,730,231)
- ----------------------------------
Net capital gains - - - - - (217,671)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Total distributions (3,268,682) (4,868,296) (511,547) (1,056,399) (2,047,323) (4,947,902)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 315,829,686 394,777,417 5,480,369 7,845,847 6,158,702 16,794,091
- ----------------------------------
Proceeds from reinvestment
of dividends 75,490 154,244 462,462 1,018,299 2,014,693 4,874,511
- ----------------------------------
Redemption of shares (265,497,063) (361,699,190) (7,508,896) (6,789,605) (17,309,871) (16,619,283)
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease)
from share transactions 50,408,113 33,232,471 (1,566,065) 2,074,541 (9,136,476) 5,049,319
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 50,399,386 33,233,582 (2,156,913) 2,127,089 (12,503,690) 4,748,313
- ----------------------------------
NET ASSETS:
Beginning of period 133,730,301 100,496,719 21,636,136 19,509,047 82,419,675 77,671,362
- ---------------------------------- ------------ ------------ ------------ ------------ ------------ ------------
End of period $184,129,687 $133,730,301 $19,479,223 $21,636,136 $69,915,985 $82,419,675
- ---------------------------------- ============ ============ ============ ============ ============ ============
Undistributed net investment
income, end of period $8,012 $8,012 $19,106 $22,599 $76,483 $85,653
- ---------------------------------- ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND
------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1999 1999 1999 1999
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $354,055 $816,811 $1,381,803 $4,889,014
- ----------------------------------
Net realized gain (loss)
on investments 852,440 833,920 15,006,198 32,830,496
- ----------------------------------
Change in unrealized appreciation
(depreciation) on investments (824,515) (2,619,384) (10,852,402) (64,096,533)
- ---------------------------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations 381,980 (968,653) 5,535,599 (26,377,023)
- ---------------------------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (356,012) (818,531) (1,396,564) (4,882,142)
- ----------------------------------
Net capital gains - (754,425) - (20,488,813)
- ---------------------------------- ------------ ------------ ------------ ------------
Total distributions (356,012) (1,572,956) (1,396,564) (25,370,955)
- ---------------------------------- ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 4,535,397 8,207,537 12,833,906 34,157,608
- ----------------------------------
Proceeds from reinvestment
of dividends 354,852 1,564,415 1,384,467 25,169,606
- ----------------------------------
Redemption of shares (9,674,208) (9,038,833) (74,810,196) (88,066,228)
- ---------------------------------- ------------ ------------ ------------ ------------
Net increase (decrease)
from share transactions (4,783,959) 733,119 (60,591,823) (28,739,014)
- ---------------------------------- ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (4,757,991) (1,808,490) (56,452,788) (80,486,992)
- ----------------------------------
NET ASSETS:
Beginning of period 23,883,080 25,691,570 231,586,297 312,073,289
- ---------------------------------- ------------ ------------ ------------ ------------
End of period $19,125,089 $23,883,080 $175,133,509 $231,586,297
- ---------------------------------- ============ ============ ============ ============
Undistributed net investment
income, end of period $8,697 $10,654 $(2,619) $12,142
- ---------------------------------- ============ ============ ============ ============
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP
GROWTH FUND VALUE FUND
------------------------- -------------------------
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1999 1999 1999 1999
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $(12,777) $ 140,237 $50,336 $238,504
- ----------------------------------
Net realized gain (loss)
on investments 203,312 (972,963) (473,417) 443,626
- ----------------------------------
Change in unrealized appreciation
(depreciation) on investments 1,202,174 617,893 1,559,742 (4,312,605)
- ---------------------------------- ------------ ------------ ------------ ------------
Net increase (decrease) in net
assets resulting from operations 1,392,709 (214,833) 1,136,661 (3,630,475)
- ---------------------------------- ------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income - (125,285) (58,058) (238,661)
- ----------------------------------
Net capital gains - - - (451,358)
- ---------------------------------- ------------ ------------ ------------ ------------
Total distributions - (125,285) (58,058) (690,019)
- ---------------------------------- ------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 4,996,095 19,440,805 1,577,557 5,961,795
- ----------------------------------
Proceeds from reinvestment
of dividends - 119,796 55,366 680,419
- ----------------------------------
Redemption of shares (6,094,988) (4,902,949) (5,096,413) (6,245,000)
- ---------------------------------- ------------ ------------ ------------ ------------
Net increase (decrease)
from share transactions (1,098,893) 14,657,652 (3,463,490) 397,214
- ---------------------------------- ------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS 293,816 14,317,534 (2,384,887) (3,923,280)
- ----------------------------------
NET ASSETS:
Beginning of period 14,317,534 - 13,096,122 17,019,402
- ---------------------------------- ------------ ------------ ------------ ------------
End of period $14,611,350 $14,317,534 $10,711,235 $13,096,122
- ---------------------------------- ============ ============ ============ ============
Undistributed net investment
income, end of period $(12,777) $- $(659) $7,063
- ---------------------------------- ============ ============ ============ ============
- -------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Financial Highlights<F1>
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
----------------------------------------------------------------------------
PERIOD YEAR YEAR YEAR APRIL 10, JULY 1, YEAR
ENDED ENDED ENDED ENDED 1995<F2> 1994 ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, TO MAR. 31,TO APRIL 9, JUNE 30,
1999 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05 0.05 0.05 0.05 0.04 0.03
- -----------------------------------------
Net realized and unrealized gains
(losses) on investments - - - - - - -
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations 0.02 0.05 0.05 0.05 0.05 0.04 0.03
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.02 0.05 0.05 0.05 0.05 0.04 0.03
- -----------------------------------------
Distributions from capital gains - - - - - - -
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total distributions 0.02 0.05 0.05 0.05 0.05 0.04 0.03
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------- ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN<F3> 2.28% 4.63% 4.95% 4.76% 5.14% 3.51% 2.74%
- -----------------------------------------
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $184,130 $133,730 $100,497 $125,413 $87,715 $76,105 $89,195
- -----------------------------------------
Ratio of net expenses to average
net assets<F4> 0.42% 0.54% 0.55% 0.58% 0.54% 0.63% 0.60%
- -----------------------------------------
Ratio of net investment income to
average net assets<F4> 4.60% 4.52% 4.83% 4.66% 5.12% 4.46% 2.68%
- -----------------------------------------
Ratio of net expenses to average net
assets<F4><F5> 0.55% 0.58% 0.58% 0.59% 0.59% 1.23% 1.13%
- -----------------------------------------
Ratio of net investment income to
average net assets<F4><F5> 4.47% 4.48% 4.80% 4.65% 5.07% 3.86% 2.15%
- -----------------------------------------
Portfolio turnover rate<F3> - - - - - - -
- -----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE FIXED INCOME FUND
----------------------------------------------------------------------------
PERIOD YEAR YEAR YEAR APRIL 10, JULY 1, YEAR
ENDED ENDED ENDED ENDED 1995<F2> 1994 ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, TO MAR. 31,TO APRIL 9, JUNE 30,
1999 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.01 $9.97 $9.73 $9.85 $9.66 $9.62 $10.18
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.26 0.51 0.56 0.49 0.52 0.42 0.55
- -----------------------------------------
Net realized and unrealized gains
(losses) on investments (0.31) 0.04 0.24 (0.10) 0.17 0.05 (0.56)
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations (0.05) 0.55 0.80 0.39 0.69 0.47 (0.01)
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.26 0.51 0.56 0.51 0.50 0.43 0.55
- -----------------------------------------
Distributions from capital gains - - - - - - -
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total distributions 0.26 0.51 0.56 0.51 0.50 0.43 0.55
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $9.70 $10.01 $9.97 $9.73 $9.85 $9.66 $ 9.62
- ----------------------------------------- ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN<F3> (0.49)% 5.61% 8.37% 4.00% 7.24% 5.05% (0.22)%
- -----------------------------------------
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $19,479 $21,636 $19,509 $21,042 $22,056 $22,130 $21,938
- -----------------------------------------
Ratio of net expenses to average
net assets<F4> 0.99% 0.97% 0.99% 0.97% 0.89% 0.88% 0.83%
- -----------------------------------------
Ratio of net investment income
to average net assets<F4> 5.24% 5.05% 5.54% 5.01% 5.34% 5.63% 5.44%
- -----------------------------------------
Ratio of net expenses to average
net assets<F4><F5> 1.16% 1.13% 1.15% 1.08% 1.02% 1.51% 1.38%
- -----------------------------------------
Ratio of net investment income to
average net assets<F4><F5> 5.07% 4.89% 5.38% 4.90% 5.21% 5.00% 4.89%
- -----------------------------------------
Portfolio turnover rate<F3> 24.26% 21.36% 26.58% 4.73% 41.45% 9.93% 20.52%
- -----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Performance data for each Fund prior to April 10, 1995 relates to a
corresponding predecessor First Omaha Fund, the assets of which were
acquired on that date.
<F2> Commencement of operations
<F3> Not annualized
<F4> Annualized
<F5> During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Financial Highlights<F1> (continued)
<TABLE>
<CAPTION>
FIXED INCOME FUND
----------------------------------------------------------------------------
PERIOD YEAR YEAR YEAR APRIL 10, JULY 1, YEAR
ENDED ENDED ENDED ENDED 1995<F2> 1994 ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, TO MAR. 31,TO APRIL 9, JUNE 30,
1999 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.42 $10.45 $ 9.84 $10.00 $ 9.63 $9.58 $10.49
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.28 0.61 0.59 0.45 0.59 0.51 0.67
- -----------------------------------------
Net realized and unrealized gains
(losses) on investments (0.46) - 0.61 (0.15) 0.35 0.07 (0.88)
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total from investment operations (0.18) 0.61 1.20 0.30 0.94 0.58 (0.21)
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.28 0.61 0.59 0.46 0.57 0.53 0.67
- -----------------------------------------
Distributions from capital gains - 0.03 - - - - 0.03
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
Total distributions 0.28 0.64 0.59 0.46 0.57 0.53 0.70
- ----------------------------------------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.96 $10.42 $10.45 $ 9.84 $10.00 $9.63 $ 9.58
- ----------------------------------------- ======== ======== ======== ======== ======== ======== ========
TOTAL RETURN<F3> (1.69)% 5.93% 12.50% 3.06% 9.79% 6.35% (2.29)%
- -----------------------------------------
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $69,916 $82,420 $77,671 $75,524 $76,342 $66,488 $61,714
- -----------------------------------------
Ratio of net expenses to average
net assets<F4> 0.89% 0.88% 0.89% 0.89% 0.83% 0.87% 0.86%
- -----------------------------------------
Ratio of net investment income to
average net assets<F4> 5.58% 5.78% 5.74% 4.48% 5.94% 6.98% 6.52%
- -----------------------------------------
Ratio of net expenses to average
net assets<F4><F5> 1.06% 1.05% 1.05% 1.00% 0.96% 1.51% 1.41%
- -----------------------------------------
Ratio of net investment income to
average net assets<F4><F5> 5.41% 5.61% 5.58% 4.37% 5.81% 6.34% 5.97%
- -----------------------------------------
Portfolio turnover rate<F3> 8.25% 31.35% 19.03% 12.66% 37.35% 7.04% 13.09%
- -----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND
---------------------------------------- ------------------------------------------------
PERIOD YEAR YEAR AUG.6, PERIOD YEAR YEAR YEAR APRIL 10,
ENDED ENDED ENDED 1996<F2> ENDED ENDED ENDED ENDED 1995<F2>
SEPT. MAR. MAR. TO SEPT. MAR. MAR. MAR. TO
30, 31, 31, MAR. 31, 30, 31, 31, 31, MAR. 31,
1999 1999 1998 1997 1999 1999 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.06 $12.24 $10.41 $10.00 $13.36 $16.19 $13.74 $13.07 $11.39
- --------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.18 0.38 0.38 0.21 0.10 0.26 0.29 0.30 0.28
- --------------------------------------
Net realized and unrealized gains
(losses) on investments (0.21) (0.81) 1.90 0.40 0.02 (1.66) 3.50 1.63 2.13
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations (0.03) (0.43) 2.28 0.61 0.12 (1.40) 3.79 1.93 2.41
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.18 0.38 0.38 0.20 0.10 0.26 0.29 0.30 0.28
- --------------------------------------
Distributions from capital gains - 0.37 0.07 - - 1.17 1.05 0.96 0.45
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions 0.18 0.75 0.45 0.20 0.10 1.43 1.34 1.26 0.73
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $10.85 $11.06 $12.24 $10.41 $13.38 $13.36 $16.19 $13.74 $13.07
- -------------------------------------- ======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN<F3> (0.36)% (3.73)% 22.34% 6.14% 0.83% (9.20)% 28.89% 14.99% 21.52%
- --------------------------------------
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $19,125 $23,883 $25,692 $10,895 $175,134 $231,586 $312,073 $259,200 $224,169
- --------------------------------------
Ratio of net expenses to average
net assets<F4> 1.03% 1.01% 0.88% 1.16% 1.03% 1.03% 1.03% 1.04% 0.99%
- --------------------------------------
Ratio of net investment income to
average net assets<F4> 3.05% 3.20% 3.37% 3.25% 1.35% 1.74% 1.89% 2.17% 2.32%
- --------------------------------------
Ratio of net expenses to average
net assets<F4><F5> 1.34% 1.32% 1.43% 3.04% 1.15% 1.15% 1.14% 1.10% 1.07%
- --------------------------------------
Ratio of net investment income to
average net assets<F4><F5> 2.74% 2.89% 2.82% 1.37% 1.23% 1.62% 1.78% 2.11% 2.24%
- --------------------------------------
Portfolio turnover rate<F3> 13.46% 33.17% 10.46% 5.92% 6.43% 24.19% 15.87% 25.66% 26.60%
- --------------------------------------
</TABLE>
<F1> Performance data for each Fund prior to April 10, 1995 relates to a
corresponding predecessor First Omaha Fund, the assets of which were
acquired on that date.
<F2> Commencement of operations
<F3> Not annualized
<F4> Annualized
<F5> During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Financial Highlights<F1> (continued)
<TABLE>
<CAPTION>
EQUITY FUND
(CONT'D.) GROWTH FUND SMALL CAP VALUE FUND
----------------- ----------------- ------------------------------------
JULY 1, YEAR PERIOD YEAR PERIOD YEAR YEAR JUNE 10,
1994 ENDED ENDED ENDED ENDED ENDED ENDED 1996<F2>
TO JUNE SEPT. MAR. SEPT. MAR. MAR. TO
APRIL 9, 30, 30, 31, 30, 31, 31, MAR. 31,
1995 1994 1999 1999 1999 1999 1998 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.48 $10.55 $9.48 $10.00 $ 9.85 $12.94 $10.52 $10.00
- --------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.20 (0.01) 0.10 0.04 0.18 0.19 0.15
- --------------------------------------
Net realized and unrealized gains
(losses) on investments 1.48 0.15 0.93 (0.53) 0.79 (2.73) 2.88 0.58
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations 1.69 0.35 0.92 (0.43) 0.83 (2.55) 3.07 0.73
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.22 0.20 - 0.09 0.05 0.18 0.19 0.15
- --------------------------------------
Distributions from capital gains 0.56 0.22 - - - 0.36 0.46 0.06
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions 0.78 0.42 - 0.09 0.05 0.54 0.65 0.21
- -------------------------------------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $11.39 $10.48 $10.40 $ 9.48 $10.63 $ 9.85 $12.94 $10.52
- -------------------------------------- ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN<F3> 16.48% 3.34% 9.70% (4.28)% 8.42% (20.18)% 29.60% 7.30%
- --------------------------------------
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $161,323 $129,381 $14,611 $14,318 $10,711 $13,096 $17,019 $7,173
- --------------------------------------
Ratio of net expenses to average
net assets<F4> 1.03% 1.04% 1.11% 1.21% 1.32% 1.21% 1.11% 1.34%
- --------------------------------------
Ratio of net investment income to
average net assets<F4> 2.50% 1.93% (0.17)% 1.15% 0.82% 1.55% 1.62% 2.15%
- --------------------------------------
Ratio of net expenses to average
net assets<F4><F5> 1.62% 1.54% 1.51% 1.63% 1.86% 1.71% 1.92% 3.76%
- --------------------------------------
Ratio of net investment income
to average net assets<F4><F5> 1.91% 1.43% (0.57)% 0.73% 0.28% 1.05% 0.81% (0.27)%
- --------------------------------------
Portfolio turnover rate<F3> 14.36% 15.86% 31.27% 71.80% 34.25% 26.20% 16.54% 7.45%
- --------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Performance data for each Fund prior to April 10, 1995 relates to a
corresponding predecessor First Omaha Fund, the assets of which were
acquired on that date.
<F2> Commencement of operations
<F3> Not annualized
<F4> Annualized
<F5> During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
See notes to financial statements.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements
September 30, 1999 (Unaudited)
1.ORGANIZATION
First Omaha Funds, Inc. (the "Company") was organized in October, 1994 as a
Nebraska corporation and is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management investment company
issuing its shares in series, each series representing a distinct portfolio with
its own investment objectives and policies. At September 30, 1999, the only
series presently authorized are the U.S. Government Money Market Fund, the
Short/Intermediate Fixed Income Fund, the Fixed Income Fund, the Balanced Fund,
the Equity Fund, the Growth Fund, and the Small Cap Value Fund, (individually
referred to as a "Fund" and collectively as the "Funds").
2.SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
(A) INVESTMENT VALUATION
Securities traded over-the-counter or on a national securities exchange are
valued on the basis of market value in their principal and most representative
market. Securities where the principal and most representative market is a
national securities exchange are valued at the latest reported sale price on
such exchange. Exchange-traded securities for which there were no transactions
are valued at the latest reported bid price.
Securities traded on only over-the-counter markets are valued at the latest bid
price. Debt securities (other than short-term instruments) are valued at prices
furnished by a pricing service, subject to review by the respective Fund's
investment adviser, First National Bank of Omaha ("First National") or FNC Trust
Group, n.a. ("FNC;" collectively, the "Advisers"), and determination of the
appropriate price whenever a furnished price is significantly different from the
previous day's furnished price. Short-term obligations (maturing within 60
days) are valued on an amortized cost basis. Securities for which quotations are
not readily available and other assets are valued at fair value as determined in
good faith by the Adviser under the supervision of the Board of Directors.
Pursuant to Rule 2a-7 of the 1940 Act, investments of the U.S. Government Money
Market Fund are valued at either amortized cost, which approximates market
value, or at original cost, which combined with accrued interest, approximates
market value. Under the amortized cost valuation method, discount or premium is
amortized on a constant basis to the maturity of the security. In addition, the
Fund may not (i) purchase any instrument with a remaining maturity greater than
13 months unless such investment is subject to a demand feature, or (ii)
maintain a dollar-weighted average portfolio maturity which exceeds 90 days.
(B) REPURCHASE AGREEMENTS
The Funds may acquire repurchase agreements from financial institutions such as
banks and broker/dealers which the Advisers deem creditworthy under guidelines
approved by the Board of Directors, subject to the seller's agreement to
repurchase such securities at a mutually agreed-upon date and price. The
repurchase price generally equals the price paid by each Fund plus interest
negotiated on the basis of current short-term rates, which may be more or less
than the rate on the underlying portfolio securities. The seller, under a
repurchase agreement, is required to maintain the value of collateral held
pursuant to the agreement at not less than the repurchase price (including
accrued interest). Securities subject to repurchase agreements are held by the
Funds' custodian or another qualified custodian or in the Federal
Reserve/Treasury book-entry system. Repurchase agreements are considered to be
loans by the Funds under the 1940 Act.
(C) ORGANIZATION COSTS
Costs incurred by the Funds in connection with their organization, registration
and the initial public offering of shares have been deferred and will be
amortized on a straight-line basis over a period of five years from the date
upon which the
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
Funds commenced their investment activities. Organization costs have been
allocated equally among the respective Funds or by specific identification, as
applicable. If any of the original shares of a Fund are redeemed by any holder
thereof prior to the end of the amortization period, the redemption proceeds
will be reduced by the pro rata share of the unamortized expenses as of the date
of redemption. The pro rata share by which the proceeds are reduced will be
derived by dividing the number of original shares of the Fund being redeemed by
the total number of original shares outstanding at the time of redemption.
(D) EXPENSES
The Funds are charged for those expenses that are directly attributable to each
portfolio, such as advisory and custodian fees. Expenses that are not directly
attributable to a portfolio are typically allocated among the portfolios in
proportion to their respective net assets.
(E) DISTRIBUTIONS TO SHAREHOLDERS
The U.S. Government Money Market Fund declares dividends of net investment
income daily. The remaining Funds declare dividends monthly; all of the Funds
pay dividends of net investment income monthly. Distributions of net realized
capital gains, if any, will be declared at least annually. Distributions to
shareholders are recorded on the ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from the characterization for federal income
tax purposes due to differences in the recognition of income, expense or gain
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences that
are permanent in nature.
(F) FEDERAL INCOME TAXES
Each Fund intends to comply with the requirements of the Internal Revenue Code
necessary to qualify as a regulated investment company and to make the requisite
distributions of the income to its shareholders which will be sufficient to
relieve it from all or substantially all federal income taxes.
As of March 31, 1999, each of the Growth Fund, Short/Intermediate Fixed Income
Fund and U.S. Government Money Market Fund had federal income tax capital loss
carryforwards of $267,823, $246,727 and $18,169, respectively. The $267,823
federal income tax loss carryforward for the Growth Fund expires in 2007. The
$246,727 federal income tax loss carryforward for the Short/Intermediate Fixed
Income Fund expires as follows: $81,532 in 2003, $109,194 in 2004 and $56,001 in
2005. The $18,169 federal income tax loss carryforward for the U.S. Government
Money Market Fund expires as follows: $14,927 in 2003 and $3,242 in 2006. It is
management's intention to make no distribution of any future realized capital
gains until the federal income tax loss carryforwards are exhausted.
(G) USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported changes in net assets during the reporting
period. Actual results could differ from those estimates.
(H) OTHER
Investment transactions are accounted for on the trade date plus one. The Funds
determine the gain or loss realized from investment transactions by comparing
the original cost of the security lot sold with the net sale proceeds. Dividend
income is recognized on the ex-dividend date and interest income is recognized
on an accrual basis. Original issue discount is amortized over the expected life
of each applicable security.
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
September 30, 1999 (Unaudited)
3.INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Funds have agreements with the respective Advisers to furnish investment
advisory services to the Funds. Under the terms of these agreements, the Funds
will pay a monthly fee at the annual rate of the following percentages on
average daily net assets: to First National, 0.25% for the U.S. Government Money
Market Fund, 0.50% for the Short/Intermediate Fixed Income Fund, 0.60% for the
Fixed Income Fund, 0.75% for the Balanced Fund, 0.75% for the Equity Fund and
0.85% for the Small Cap Value Fund; and to FNC, 0.75% for the Growth Fund. For
the period ended September 30, 1999, advisory fees of $55,505, $4,849, $18,276,
$23,206, $18,448 and $21,382 were waived in the U.S. Government Money Market
Fund, the Short/Intermediate Fixed Income Fund, the Fixed Income Fund, the
Balanced Fund, the Growth Fund and the Small Cap Value Fund, respectively.
First National also serves as custodian and transfer agent for each of the
Funds. The custodian receives compensation from each of the Funds for such
services in an amount equal to a fee, computed daily and payable monthly, at an
annual rate of 0.03% of each Fund's average daily net assets. For the period
ended September 30, 1999, custody fees of $2,910, $10,966, $3,481, $30,778,
$2,214 and $1,833 were waived in the Short/Intermediate Fixed Income Fund, the
Fixed Income Fund, the Balanced Fund, the Equity Fund, the Growth Fund and the
Small Cap Value Fund, respectively. The transfer agent also receives
compensation from each of the Funds for such services.
Sunstone Financial Group, Inc. (the "Administrator") acts as Administrator for
each of the Funds. As compensation for its administrative and fund accounting
services and the assumption of certain administrative expenses, the
Administrator is entitled to a fee, computed daily and payable monthly, at an
annual rate of 0.20% of each Fund's average daily net assets. The Small Cap
Value Fund and the Growth Fund are each subject to a $50,000 minimum annual fee.
For the period ended September 30, 1999, administrative fees of $38,398, $4,000,
$15,075, $4,785, $42,313, $8,356 and $6,973 were waived in the U.S. Government
Money Market Fund, the Short/Intermediate Fixed Income Fund, the Fixed Income
Fund, the Balanced Fund, the Equity Fund, the Growth Fund and the Small Cap
Value Fund, respectively.
The Advisers and the Administrator may periodically volunteer to reduce all or a
portion of their fees with respect to one or more Funds. These waivers may be
terminated at any time. The Advisers and the Administrator may not seek
reimbursement of such voluntarily reduced fees at a later date. The reduction of
such fees will cause the yield of that Fund to be higher than it would be in the
absence of such reduction.
Sunstone Distribution Services, LLC (the "Distributor") acts as Distributor for
each of the Funds. The Distributor receives no compensation from the Funds under
its Distribution Agreement with the Company, but may receive compensation under
the Distribution and Service Plan.
4.DISTRIBUTION AND SERVICE PLAN
Pursuant to Rule 12b-1 under the 1940 Act, the Company has adopted a
Distribution and Service Plan (the "Plan"), under which each Fund is authorized
to pay a periodic amount representing distribution expenses calculated at an
annual rate not to exceed 0.25% of the average daily net assets of that Fund.
Such amount may be used to pay banks, broker/dealers and other institutions,
which may include the Advisers, their correspondent and affiliated banks and the
Distributor (each a "Participating Organization") for distribution and/or
shareholder service assistance pursuant to an agreement between the Distributor
and the Participating Organization. As of September 30, 1999, there are no 12b-1
Agreements with any Participating Organizations.
5.ADMINISTRATIVE SERVICES PLAN
The Company has adopted an Administrative Services Plan pursuant to which each
Fund is authorized to pay compensation to banks and other financial
institutions, which may include the Advisers, their correspondent and affiliated
banks and the Administrator (each a "Service Organization"). Such Service
Organizations agree to provide certain ministerial, recordkeeping and/or
administrative support services for
<PAGE>
FIRST OMAHA FUNDS - Semi-Annual Report
- --------------------------------------------------------------------------------
their customers or account holders who are the beneficial or record owner of
shares of that Fund. In consideration for such services, a Service Organization
receives a fee from a Fund, computed daily and paid monthly at an annual rate of
up to 0.25% of the average daily net asset value of shares of that Fund owned
beneficially or of record by such Service Organization's customers for whom the
Service Organization provides such services. Effective November 1, 1996, the
Company entered into an agreement under the Plan with First National at an
annual rate of 0.10% of the average daily net assets serviced for each of the
Short/Intermediate Fixed Income Fund, the Fixed Income Fund, the Balanced Fund,
the Equity Fund and the Small Cap Value Fund. For the period ended September 30,
1999, fees of $8,625, $33,434, $9,378, $89,475 and $5,691 were accrued under
this agreement, respectively, and fees of $4,315, $16,720, $4,696, $44,745 and
$2,847 were waived by First National, respectively.
6.CAPITAL STOCK
The Company is authorized to issue a total of 1,000,000,000 shares of common
stock in series with a par value of $0.00001 per share. The Board of Directors
is empowered to issue other series of the Company's shares without shareholder
approval.
Each share of stock will have a pro rata interest in the assets of the Fund to
which the stock of that series relates and will have no interest in the assets
of any other Fund.
Transactions in shares of the Funds for the period ended September 30, 1999 were
as follows:
<TABLE>
<CAPTION>
SHORT/
U.S INTERMEDIATE
GOVERNMENT FIXED FIXED SMALL CAP
MONEY MARKET INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold 315,829,686 559,588 602,549 401,400 875,553 475,861 146,893
Shares issued to holders in
reinvestment of dividends 75,490 47,204 199,660 30,821 94,415 - 5,073
Shares redeemed (265,497,063) (761,039) (1,691,482) (828,995) (5,218,939) (581,737) (474,149)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 50,408,113 (154,247) (889,273) (396,774) (4,248,971) (105,876) (322,183)
============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Transactions in shares of the Funds for the year ended March 31, 1999 were as
follows:
<TABLE>
<CAPTION>
SHORT/
U.S INTERMEDIATE
GOVERNMENT FIXED FIXED SMALL CAP
MONEY MARKET INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold 394,777,417 774,357 1,576,999 696,332 2,294,411 2,004,652 524,972
Shares issued to holders in
reinvestment of dividends 154,244 100,822 459,506 133,981 1,743,861 12,688 61,549
Shares redeemed (361,699,190) (671,178) (1,555,867) (770,810) (5,972,650) (506,879) (571,580)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 33,232,471 204,001 480,638 59,503 (1,934,378) 1,510,461 14,941
============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Semi-Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
September 30, 1999 (Unaudited)
7.INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the period ended September 30, 1999 were as
follows:
<TABLE>
<CAPTION>
SHORT/
U.S INTERMEDIATE
GOVERNMENT FIXED FIXED SMALL CAP
MONEY MARKET INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Purchases
U.S. Government $223,582,161 $2,267,107 - $ 499,320 - - -
Other - 2,236,282 $5,822,490 2,425,606 $ 12,453,009 $4,536,759 $2,166,130
- ------------------------------------------------------------------------------------------------------------------------------------
Sales
U.S. Government 109,708,742 3,194,702 5,129,416 963,984 - - -
Other - 3,745,628 5,397,425 5,078,096 61,802,318 5,601,857 4,926,337
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
As of September 30, 1999, gross unrealized appreciation and depreciation of
investments, were as follows:
<TABLE>
<CAPTION>
SHORT/
U.S INTERMEDIATE
GOVERNMENT FIXED FIXED SMALL CAP
MONEY MARKET INCOME INCOME BALANCED EQUITY GROWTH VALUE
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Appreciation $ - $83,903 $1,020,084 $1,374,146 $35,154,878 $2,864,457 $848,464
(Depreciation) - (511,572) (2,272,638) (1,905,667) (15,806,210) (1,044,390) (1,544,560)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net appreciation (depreciation)
on investments $ - $(427,669) $(1,252,554) $ (531,521) $19,348,668 $1,820,067 $(696,096)
============ ============ ============ ============ ============ ============ ============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
As of September 30, 1999, the cost of investments for federal income tax
purposes is substantially the same as for financial statement purposes.
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<PAGE>
INVESTMENT ADVISER AND CUSTODIAN
First National Bank of Omaha
Attention: Trust Division
1620 Dodge
Omaha, Nebraska 68102
ADMINISTRATOR
Sunstone Financial Group, Inc.
207 E. Buffalo St., Suite 400
Milwaukee, Wisconsin 53202
DISTRIBUTOR
Sunstone Distribution Services, LLC
207 E. Buffalo St., Suite 400
Milwaukee, Wisconsin 53202
LEGAL COUNSEL
Cline, Williams, Wright, Johnson & Oldfather
One Pacific Place
1125 S. 103rd St., Suite 720
Omaha, Nebraska 68124-1071
AUDITORS
KPMG Peat Marwick LLP
Two Central Park Plaza, Suite 1501
Omaha, Nebraska 68102
This report has been prepared for the general information of First Omaha Funds
shareholders. It is not authorized for distribution to prospective investors
unless accompanied or preceded by an effective First Omaha Funds prospectus. The
prospectus contains more complete information about First Omaha Funds'
investment objectives, management fees and expenses, risks and operating
policies. Please read the prospectus carefully before investing or sending
money.
For more INFORMATION
call 1-800-OMAHA-03
or write to:
First Omaha Funds
P.O. Box 419022
Kansas City, Missouri 64141-6022
FBO509924
