FIRST OMAHA FUNDS
Annual Report
MARCH 31, 2000
(LOGO)
FIRST OMAHA
FAMILY OF FUNDS/R
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NOTICE TO INVESTORS
Shares of 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.
First Omaha Funds are distributed by Sunstone Distribution Services, LLC.
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FIRST OMAHA FUNDS - Annual Report
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March 31, 2000
DEAR SHAREHOLDER:
We are pleased to provide you with the First Omaha Family of Funds' Annual
Report for the period ended March 31, 2000. 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 past 12 months we have continued to witness the longest peacetime
economic expansion in history. This expansion has led equity markets to
unprecedented growth rates over the last decade and left employers scrambling
for workers. As a result of the economy's strength, interest rates moved higher
due to expectations of inflation and the fear of tight labor markets in the
United States. Last year's movement in interest rates had a direct effect on
bond prices, that is, as interest rates moved up, the prices of bonds generally
declined.
As for inflation, prices have moved higher this year if you look at the energy
sector in particular, but outside of this area, both consumer and producer price
indices continue to indicate a tame inflationary environment. Oil prices have
nearly doubled because of the agreement the OPEC countries announced last April.
So while prices at the gasoline pumps are higher, other areas such as computers
and other consumer goods continue to get cheaper. Why is this? Intense
competition and strong productivity growth have limited price hikes and allowed
corporations to profit from productivity gains, not price increases.
The Federal Reserve led by its Chairman, Alan Greenspan, has moved short-term
interest rates higher five times in the past 12 months. The first three rate
hikes reversed actions taken by the Fed in the fall of 1998 in an effort to
avert a potential global financial crisis. In addition, the Fed continues to be
preemptive against the rise of inflationary pressures in our economy that can
come from excessive growth and tight labor markets. By raising short-term
interest rates, the Fed in essence is attempting to slow the economy down to a
rate that is non-inflationary.
A few of the number of issues that we will be paying attention to in the coming
year are: the strength of the U.S. domestic economy and whether it is
sustainable, and if consumer demand can continue to fuel this growth; the
tightness in the labor markets and the potential inflationary pressures that the
lack of supply of workers could bring; and the overall level of the equity
markets, which has helped fuel consumer confidence and spending. From an
inflation fighting perspective any correction in equity valuations would be
welcome, however it could have an adverse effect on the corporate bond prices
due to the emphasis corporate managers appear to have put on supporting equity
valuations.
FIRST OMAHA SHORT/INTERMEDIATE FIXED INCOME FUND
The First Omaha Short/Intermediate Fixed Income Fund invests at least 65% of its
total assets in investment grade fixed income securities. The portfolio expects
to maintain a weighted average maturity between two to five years.
As of March 31, 2000, the portfolio's composition was 33% government and agency
securities, 60% corporate bonds and 7% cash equivalents. The overall weighted
average credit quality remained AA for the portfolio, while the weighted average
maturity was 3.9 years.
During the past 12 months, we have continued to emphasize corporate bonds in
your portfolio as we believed they offer attractive spreads, or additional
yields, versus Treasuries. However, in spite of an economy which offers
favorable conditions for corporate profits, yield spreads on corporate bonds
continued to widen, hindering short-term performance. This widening was largely
due to continued concern about liquidity among investors.
Going forward, we are enthusiastic about the long-term prospects for the economy
and for the interest rate environment. We will continue to identify value in the
shorter end of the yield curve.
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Annual Report - FIRST OMAHA FUNDS
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SHORT/INTERMEDIATE FIXED INCOME FUND
PORTFOLIO COMPOSITION
as of March 31, 2000
Corporate Bonds 60%
U.S. GOVERNMENT AGENCIES 23%
U.S. GOVERNMENTS 10%
CASH EQUIVALENTS 7%
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED 5 YEARS ENDED AVERAGE ANNUAL SINCE
3/31/00 3/31/00<F1> COMMENCEMENT<F1><F2>
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First Omaha
Short/Intermediate
Fixed Income Fund<F3> 0.71% 5.26% 4.86%
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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.
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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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RETURN ON A $10,000 INVESTMENT
FIRST OMAHA LEHMAN BROS.
SHORT/ MUTUAL FUND
INTERMEDIATE SHORT (1-5)
FIXED INCOME U.S. GOV'T.
DATE FUND INDEX
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12/31/1992 10,000 10,000
3/31/1993 10,340 10,377
3/31/1994 10,561 10,631
3/31/1995 10,951 11,080
3/31/1996 11,803 12,016
3/31/1997 12,275 12,622
3/31/1998 13,302 13,674
3/31/1999 14,048 14,546
3/31/2000 14,148 14,990
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.
FIRST OMAHA FIXED INCOME FUND
The First Omaha Fixed Income Fund invests at least 65% of its total assets in
investment grade fixed income securities.
As of March 31, 2000, the portfolio composition was almost 17% government and
agency securities, 80% corporate bonds and 3% cash. The overall weighted average
credit quality of the portfolio ended the fiscal year at AA3. The weighted
average maturity of the portfolio remained at 11 years.
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FIRST OMAHA FUNDS - Annual Report
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Throughout these past 12 months we have continued to feel that the spreads, or
additional yield over treasuries, available in corporate bonds were very
attractive both from an historical and a relative basis. As a result of this we
continued to emphasize corporate bonds in your portfolio. We also continued to
feel positive about the long-term U.S. economic environment, particularly as it
relates to continued low inflation. Therefore, we also continued to keep the
duration of your portfolio, a measure of interest rate sensitivity, slightly
longer than its benchmark. However, in spite of an economy in which inflation
remained tame, rates were driven higher largely due to fears of the Fed's need
to react to the wealth being created by the equity markets. Also, in spite of an
economy which saw very favorable corporate profits, yields on corporate debt
increased relative to Treasuries because of liquidity concerns. Therefore,
neither of these strategies was rewarded.
Instead, the corporate bond market continues to be plagued by the same liquidity
problems that have affected it since August of 1998. Investors and dealers alike
appear afraid to own a bond which, in spite of sound fundamentals, could be
difficult to sell. And although we saw practically no evidence of inflation,
fears of it pushed yields higher, negatively affecting the Fund.
For the coming year, while we remain enthusiastic about the long-term prospects
for the economy and corporate profits, we most likely will proceed cautiously.
Your portfolio will continue to be structured to take advantage of a declining
yield environment, although not aggressively so. Also, we will continue to
overweight corporate bonds, but will probably do so in shorter maturities. This
will allow us to take advantage of the attractive additional yields available in
corporates, while avoiding some of the liquidity risk which is present in longer
corporate issues.
FIXED INCOME FUND
PORTFOLIO COMPOSITION
as of March 31, 2000
CORPORATE BONDS 80%
U.S. GOVERNMENT AGENCIES 12%
U.S. GOVERNMENTS 5%
CASH EQUIVALENTS 3%
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED 5 YEARS ENDED AVERAGE ANNUAL SINCE
3/31/00 3/31/00<F1> COMMENCEMENT<F1><F2>
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First Omaha Fixed
Income Fund<F3> (0.90)% 6.11% 5.80%
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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
FIRST OMAHA LEHMAN BROS.
FIXED INCOME GOV'T./CORP.
FUND BOND INDEX
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12/31/1992 10,000 10,000
3/31/1993 10,547 10,576
3/31/1994 10,852 10,870
3/31/1995 11,221 11,368
3/31/1996 12,404 12,610
3/31/1997 12,784 13,172
3/31/1998 14,381 14,804
3/31/1999 15,234 15,774
3/31/2000 15,096 16,041
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.
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Annual Report - FIRST OMAHA FUNDS
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THE STOCK MARKET OVERVIEW
No single theme can describe the stock market of the past twelve months. A
value-oriented rally last April and May preceded a volatile, yet essentially
directionless, summer. From September through December, large-cap technology
stocks led the way, while January and February found investors shifting their
attention to biotechnology, small-cap technology and more speculative fare. In
March, headlines were dominated by the Nasdaq's correction and a re-emergence of
value investing. Whether the bull is dead is a difficult call, but it appears a
degree of rationality is being interjected into a market that had been caught in
a speculative frenzy.
Following a volatile summer, caused in part by the Fed's decision to slow the
economy via interest rate hikes, the final months of 1999 found investors
pouring funds into large-cap technology names. Led by stocks such as Cisco
Systems, Oracle and Qualcomm, the Nasdaq Composite plowed ahead over 65% in
three months. Market observers noted the narrowness of the market's trading-a
select few names were going up, while most stocks were flat or falling. In fact,
while the Nasdaq was skyrocketing, the average stock (as measured by the Value
Line Geometric Index) rose a mere three percent. Prices paid for companies
notched higher and higher as it appeared investors allowed their fear of being
left behind to overtake any efforts to value businesses.
In January and February investors' tastes grew even more speculative. Biotech
and small-cap technology-companies offering rapid revenue growth potential but
little in terms of actual earnings-became favorites. Indices measuring the
performance of small-cap health care and technology stocks climbed sixty to
seventy-five percent in a little over sixty days. The fuel for this fire was
other stocks-the average stock fell over six percent as investors sold "old
economy" to buy "aggressive growth."
Then, in early March, investors stampeded for the door. While triggered by no
specific event, the combination of comments regarding the ability to patent the
human gene, the Microsoft trial, multiple interest rate increases, and the
"unlocking" of last year's IPOs (insiders became eligible to sell shares) became
a weight too heavy for the bull's shoulders. The Nasdaq Composite dropped almost
ten percent as speculative health care and technology indices plunged twenty to
thirty-five percent (many individual issues lost well over half of their value).
Amid the wreckage, investors rediscovered the power of earnings and positive
cash flow. The average stock rose over six percent as technology tumbled.
Currently, the market appears to be in a tug-of-war. Investors' affinity for
technology pushes growth stocks upward, and higher prices prompt selling by
those who have rediscovered the concept of risk. A mirror image seems to occur
in "old economy" value names as investors seek safety when technology slides. To
date the winner of this battle remains in doubt, but it appears as if the
extreme speculation has subsided. While the short-term volatility may make for
some restless nights, the recent shake-out may be good for the longer term
health of the equity market.
FIRST OMAHA BALANCED FUND
The First Omaha Balanced Fund lost 6.18% for the year ended March 31, 2000,
which lagged the benchmark indices due primarily to equity underperformance. The
S&P 500 Stock Index/R increased 17.9% and the Lehman Brothers
Government/Corporate Bond Index rose 1.7% during the same period. Our value
philosophy has generally been unrewarding during this last phase of the bull
stock market, which has been narrowly defined by technology outperforming.
THE PORTFOLIO
Our current allocation ranges are equity 45 - 55%, bonds from 40 - 50% and cash
at 0 - 10%. At March 31, equities were at 47%, bonds at 46% and cash at 7%,
reflecting our near-term concerns for the equity market.
The bond segment composition at quarter end was 22% treasuries and agencies and
78% high-quality corporate bonds. The average quality rating of the bond
portfolio was AA, reflecting our belief that quality is a vitally important
component of future performance. The average maturity of the portfolio decreased
during the period to respond to the Federal Reserve rate increases. We see more
upward moves in interest rates in the future; but, we recognize that yields
remain at quite high levels after adjusting for inflation.
*CAPITALIZATION or its abbreviation CAP represents the value of a company
as determined by the stock price multiplied by the number of outstanding
shares.
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FIRST OMAHA FUNDS - Annual Report
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In the six months ended March 31, we made changes to re-invigorate your equity
segment through transactions to rebalance industry sector weights. We continue
to prefer stocks of companies exhibiting strong balance sheets, improving
returns on capital and healthy cash flows. We reduced the weightings in capital
goods and basic materials industries while increasing the technology,
telecommunication and consumer-oriented sectors. We initiated positions in nine
companies. Abbott Laboratories is a diversified health care product company with
primary operations in pharmaceuticals, nutritionals and diagnostics. Compuware
is a leading supplier of software and services to mainframe and client-server
applications for testing and debugging functions. Interpublic Group is the
second largest international advertising and marketing services firm in the
world. NCR Corp. provides point-of-sale systems, ATMs, check imaging systems and
data warehousing products and services to a diversified end-user base. Newell
Rubbermaid manufactures and merchandises strong brand name, consumer staple
products for the kitchen, playground, workbench and office. PepsiCo is the
second leading soft drink beverage company in the world, and we believe the
dominant salty snack food provider in the United States, if not the world. SBC
Communications is a domestic and international wireline and wireless telephony
provider. Sherwin-Williams manufactures and markets paint, stain, cleaners and
related equipment. TECO Energy is an electric utility operating in west central
Florida with natural gas utility operations and a variety of non-regulated
businesses.
We eliminated American Financial Group, Cyprus AMAX, Delhaize America, Harsco,
J.C. Penney, Rite Aid, Service Corp. International and Universal Corp. from the
portfolio to make room for the additions listed above.
At March 31, 2000, the equity segment held positions in 40 different companies
over many economic sectors. The average dividend yield of the companies in the
portfolio was 2.3% versus the S&P 500 yield of 1.2%. The top five equity
positions, accounting for 20.8% of the equity segment, were Marsh & McLennan,
GTE, Motorola, Halliburton and International Business Machines.
BALANCED FUND
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED AVERAGE ANNUAL SINCE
3/31/00 COMMENCEMENT<F1><F2>
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First Omaha Balanced Fund (6.18)% 4.45%
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<F1> Annualized
<F2>Commencement date is 8/6/96
RETURN ON A $10,000 INVESTMENT
FIRST OMAHA LEHMAN BROS.
BALANCED S&P 500 GOV'T./CORP.
FUND COMPOSITE BOND INDEX
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8/6/1996 10,000 10,000 10,000
3/31/1997 10,614 11,603 10,378
3/31/1998 12,950 17,173 11,663
3/31/1999 12,501 20,343 12,427
3/31/2000 11,728 23,993 12,638
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.
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Annual Report - FIRST OMAHA FUNDS
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PORTFOLIO COMPOSITION
as of March 31, 2000
COMMON STOCKS 47%
CORPORATE BONDS 36%
U.S. GOVERNMENT AGENCIES 8%
CASH EQUIVALENTS 7%
U.S. GOVERNMENTS 2%
TOP FIVE HOLDINGS<F1>
as of March 31, 2000
% OF NET ASSETS
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Union Tank Car Co., 7.45%, 6/1/09 4.20%
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Tampa Electric Co., 5.75%, 5/1/00 4.16
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Halliburton Co., Series A, 6.75%, 2/1/27 4.16
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Anheuser-Busch Cos., Inc., 6.75%, 8/1/03 4.11
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Federal Home Loan Bank, 5.66%, 5/21/02 4.05
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<F1> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
FIRST OMAHA EQUITY FUND
In the year ended March 31, the First Omaha Equity Fund lost 9.29% versus the
17.94% return generated by the Standard & Poor's 500 Stock Index and the return
of 12.72% earned by the Standard & Poor's 500 BARRA Value Index. The Fund's
relative performance is primarily a result of the substantial market bias
towards technology stocks trading on growth prospects versus our traditional
value approach. In fact, due to the large move in the technology arena, many
growth stocks are now included in the value index because the benchmark is split
evenly twice per year such that one-half of the stock market capitalization is
value and one-half is growth. The stocks themselves are not split on the basis
of their fundamental value parameters. As a result, there are stocks with price-
to-earnings multiples of 30 and above included in the value index. This
divergence in performance was especially vivid during the quarter ended December
31 where the Standard & Poor's 500 BARRA Value Index increased 8.97%, the Dow
Jones Industrial Average rose 11.6%, the Standard & Poor's 500 Index was up
14.9% and the Nasdaq surged 48.3%. The Federal Reserve interest rate increases,
with the prospect for more, appears to be drying up available capital from banks
and venture capitalists for technology investments. We believe many investors
have broadened their interest and are considering sectors other than technology.
THE PORTFOLIO
In the six months ended March 31, we made great strides in reinvigorating your
portfolio through transactions intended to rebalance industry sector weights.
We reduced the weightings in capital goods and basic materials industries while
increasing the technology, telecommunication and consumer-oriented sectors. We
initiated positions in Abbott Laboratories, Compuware, Interpublic Group of
Companies, Newell Rubbermaid, NCR Corp., PepsiCo, Sherwin-Williams, SBC
Communications and TECO Energy. American Financial Group, Cyprus AMAX, Delhaize
America, Harsco, J.C. Penney, Rite Aid, Service Corp. International and
Universal Corp. have all been eliminated.
Abbott Laboratories is a diversified health care product company with primary
operations in pharmaceuticals, nutritionals and diagnostics. Compuware is a
leading supplier of software and services to mainframe and client-server
applications for testing and debugging functions. Interpublic Group is the
second largest international advertising and marketing services firm in the
world. NCR Corp. provides point-of-sale systems, ATMs, check imaging systems and
data warehousing products and services to a diversified end-user base. Newell
Rubbermaid manufactures and merchandises strong brand name, consumer staple
products for the kitchen, playground, workbench and office. PepsiCo is the
second leading soft drink beverage company in the world and we believe the
dominant salty snack food provider in the United States, if not the world. SBC
Communications is a domestic and international wireline and wireless telephony
provider. Sherwin-Williams manufactures and markets paint, stain, cleaners and
related equipment. TECO Energy is an electric utility operating in west central
Florida with natural gas utility operations and a variety of non-regulated
businesses.
American Financial Group, Delhaize America, Harsco and Universal Corp. were
eliminated from the portfolio due to their market capitalization being too small
to provide efficient and liquid markets, and our re-analysis of their less-than-
rosy outlook. J.C. Penney, Rite Aid and Service Corp. International were sold
primarily because they did not develop as originally forecasted. Each of these
three companies were disappointments
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FIRST OMAHA FUNDS - Annual Report
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on a variety of fronts, not only did the outlook not come to fruition but the
stocks continued to decrease in price as time went on. We culled these value
traps in order to make room for the future. The final elimination was Cyprus
AMAX due to its merger with Phelps Dodge in October of 1999.
At March 31, 2000, 91.5% of the portfolio was invested in equities with the
balance in cash equivalents. The portfolio held positions in 40 different
companies over many economic sectors. The average dividend yield of the
companies in the portfolio was 2.3% versus the S&P 500 yield of 1.2%. The top
five equity positions, accounting for 19.3% of the equity segment, were Marsh &
McLennan, Motorola, GTE, Halliburton and NCR.
EQUITY FUND
PORTFOLIO COMPOSITION<F1>
as of March 31, 2000
TECHNOLOGY 19%
FINANCIAL 15%
CONSUMER STAPLES 14%
ENERGY 13%
BASIC INDUSTRIES 8%
CAPITAL GOODS 8%
HEALTH CARE 8%
COMMUNICATION SERVICES 5%
UTILITIES 4%
CONSUMER CYCLICALS 3%
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 March 31, 2000
% OF NET ASSETS
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Marsh & McLennan Cos., Inc. 4.57%
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Motorola, Inc. 3.76
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GTE Corp. 3.72
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Halliburton Co. 3.59
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NCR Corp. 3.52
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<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED 5 YEARS ENDED AVERAGE ANNUAL SINCE
3/31/00 3/31/00<F1> COMMENCEMENT<F1><F2>
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First Omaha
Equity Fund<F3> (9.29)% 8.32% 9.20%
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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 Equity Fund, the assets of which were acquired by
the Fund on that date.
RETURN ON A $10,000 INVESTMENT
FIRST OMAHA S&P 500 S&P 500/BARRA
EQUITY FUND COMPOSITE VALUE INDEX
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12/31/1992 10,000 10,000 10,000
3/31/1993 10,470 10,511 11,045
3/31/1994 10,805 10,666 11,600
3/31/1995 12,757 12,326 13,064
3/31/1996 15,584 16,283 17,368
3/31/1997 17,921 19,511 20,267
3/31/1998 23,097 28,876 28,878
3/31/1999 20,973 34,206 30,531
3/31/2000 19,024 40,344 33,541
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.
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Annual Report - FIRST OMAHA FUNDS
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FIRST OMAHA GROWTH FUND
The beat goes on. The past year again saw the major market indices reaching new
heights, with smaller companies, and especially technology companies, leading
the way. The First Omaha Growth Fund participated in the strong market,
returning 20.72% for the year, compared to 17.94% for the Standard & Poors 500
Index, and 38.09% for the Standard & Poors MidCap 400 Index.
The ascent of a broad range of young technology companies to unprecedented
valuation levels is a cause of concern. The First Omaha Growth Fund is managed
with a focus on fundamental factors like sales and earnings that can support the
current valuation of a company's stock. While that may have kept the Fund out of
some of the strongest stocks and sectors recently, it could reduce somewhat the
Fund's exposure to the sharp setbacks that could occur in these stocks if the
market declines and investors begin to question the high valuations these
companies trade at.
The Federal Reserve Board has raised short-term interest rates this year, and
has indicated it will continue to raise rates until the economy slows to a pace
it considers sustainable. Higher rates and the probability of slower economic
growth is likely to produce a strong headwind for most stocks that have been
soaring on very high expectations of continually accelerating momentum.
Software and other technology-related companies held by the Fund were
particularly strong in the year just past, while retailers, manufacturers and
financial stocks were weak in spite of good operational results. The First Omaha
Growth Fund's strategy of buying rapidly growing companies, but being
disciplined in the price level we pay, meant that the Fund was not invested in
many of the companies with the strongest price momentum during the year. Our
investment approach is based on the belief that in the long run stock valuations
will be determined by underlying earnings momentum and not the market action of
the stock price.
We expect the economy to continue to produce healthy growth in the periods
ahead, but at a more subdued rate than during the past year. Stocks that we
believe could do relatively well in this environment include those companies
that are generating strong gains in sales and earnings, but have not
participated in the exceptionally strong advance in the market averages. We plan
to continue to focus on those companies with strong growth potential selling at
reasonable valuations. We will attempt to position the First Omaha Growth Fund,
in the long term, to participate in the rising value of these growing companies.
GROWTH FUND
PORTFOLIO COMPOSITION<F1>
as of March 31, 2000
FINANCIAL 18%
TECHNOLOGY 17%
BASIC INDUSTRIES 13%
CONSUMER STAPLES 12%
COMMUNICATION SERVICES 10%
HEALTH CARE 9%
CONSUMER CYCLICALS 7%
TRANSPORTATION 6%
CAPITAL GOODS 4%
ENERGY 2%
UTILITIES 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 March 31, 2000
% OF NET ASSETS
- ----------------------------------------
MGIC Investment Corp. 4.06%
- ----------------------------------------
Adobe Systems, Inc. 3.87
- ----------------------------------------
Spieker Properties, Inc. 3.87
- ----------------------------------------
Provident Financial Group, Inc. 3.74
- ----------------------------------------
Level 3 Communications, Inc. 3.68
- ----------------------------------------
<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED AVERAGE ANNUAL SINCE
3/31/00 COMMENCEMENT<F1><F2>
- ------------------------------------------------------------
First Omaha Growth Fund 20.72% 7.47%
- ------------------------------------------------------------
<F1> Annualized
<F2> Commencement date is 4/1/98
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
RETURN ON A $10,000 INVESTMENT
FIRST OMAHA S&P MIDCAP
GROWTH FUND 400 INDEX
- ----------------------------------------
4/1/1998 10,000 10,000
3/31/1999 9,572 10,046
3/31/2000 11,555 13,872
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.
FIRST OMAHA SMALL CAP VALUE FUND
The Fund generated a return of 7.6% for the twelve-month period ending March 31,
compared with 17.1% for the S&P SmallCap 600 BARRA Value Index and 30.1% for the
S&P SmallCap 600 Index. The primary explanation for this underperformance lies
in the Fund's sector exposures. We were underweighted in the strong-performing
technology and health care sectors, and overweighted in basic materials, capital
goods and consumer cyclicals-sectors which produced modest, but not outstanding,
performance.
Our efforts in the past year have been focused on upgrading the "quality" of the
companies we own and shifting sector weights to increase the portfolio's
industry diversification. Several positions were eliminated due to uncertainty
surrounding their industries, business models, or management. Employing a
process of careful business analysis, we added companies that we believe possess
superior short- and long-term potential. We continue to pay close attention to
the prices we pay, but realize we must occasionally pay a premium for high-
quality companies.
A number of positions in the basic materials, capital goods, and consumer
cyclical industries were trimmed or eliminated through the course of the year,
freeing up funds to invest in the important technology and health care sectors.
Although exposure to these areas will subject our portfolio to the risks and
dynamics of today's fast-moving technology markets, we will strive to mitigate
some of the risk involved by performing thorough research, exercising discipline
in the prices we pay for these businesses, and limiting our exposure to a
reasonable percentage of the portfolio.
During the past twelve months, fourteen new positions were added to the Fund.
Discussed in our September 30, 1999 Semi-Annual Report were Casey's General
Stores, Jones Pharma, Medicis Pharmaceutical, North Fork Bancorporation and
Transaction Systems Architects. Recent additions include Arthur J. Gallagher,
CNA Surety, Cullen/Frost Bankers, Everest Reinsurance, IDACORP, OGE Energy, SBS
Technologies, STERIS Corporation and Tidewater. Liquidations in the past year
consisted of American Financial Group, Bandag, Calgon Carbon, CNA Surety
(takeover bid), DPL Incorporated, Franklin Covey, Guarantee Life (acquired),
Lawson Products, Nash Finch and Universal Corporation.
In the technology area, we added SBS Technologies. A leading provider of
embedded computers, SBS manufactures computer modules used in the communication,
defense avionics and medical technology industries. A strong balance sheet with
no long-term debt and solid cash flow add to the attractiveness of this
investment. The addition of STERIS Corporation, a leading manufacturer of
sterilization equipment and chemicals, increased our health care exposure. While
the company is currently experiencing a downturn in orders for sterilization
equipment, its high-margin chemicals business continues to post strong results.
Due to the acquisition of Guarantee Life and our decision to sell American
Financial Group, we added several financial companies to the portfolio. Arthur
J. Gallagher is the world's fourth largest insurance brokerage and risk
management company. Gallagher has posted strong earnings in recent years,
despite weak insurance pricing. As rates stabilize and improve, we believe
Gallagher has the potential to realize significant earnings growth. CNA Surety,
one of the nation's largest issuers of surety bonds, was added to the portfolio
and sold for a profit of nearly 30% within a three-month period.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
CNA Financial, owner of 62% of CNA Surety, offered to purchase the remainder of
the company. San Antonio-based Cullen/Frost Bankers is a holding company for the
largest independent bank in Texas. With $7 billion in assets and a strong trust
business, we believe Cullen/Frost is well positioned in the growing Texas
market. Everest Reinsurance is the sixth largest underwriter of reinsurance.
While subject to earnings volatility caused by the unpredictability of large
losses, we purchased the company for well under book value.
Electric utilities in the portfolio include IDACORP and OGE Energy. IDACORP is
the holding company for Idaho Power, an electric utility that generates the
majority of its power via low-cost hydroelectric facilities. OGE Energy operates
coal-fired power plants and a natural gas pipeline in Oklahoma. Both of these
utilities are low-cost power producers, an advantage that we believe could
position them well for the future deregulation of electricity markets.
Tidewater provides marine transport services to the energy industry for offshore
exploration and production. With oil prices significantly higher than last year,
exploration budgets and demand for Tidewater's services could increase.
As of March 31, 2000, the portfolio was 90% equities and 10% in short-term money
market investments. The cash position, a function of our recent trading
activity, gives us capacity for several new investments. Over the coming weeks,
we will continue to carefully evaluate businesses and commit these funds to the
equity market as we deem appropriate.
SMALL CAP VALUE FUND
PORTFOLIO COMPOSITION<F1>
as of March 31, 2000
BASIC INDUSTRIES 15%
CAPITAL GOODS 12%
HEALTH CARE 12%
CONSUMER STAPLES 11%
FINANCIAL 11%
CONSUMER CYCLICALS 10%
TECHNOLOGY 9%
ENERGY 8%
TRANSPORTATION 7%
UTILITIES 5%
<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 March 31, 2000
% OF NET ASSETS
- ----------------------------------------
Newfield Exploration Co. 4.58%
- ----------------------------------------
Medicis Pharmaceutical Corp. 4.04
- ----------------------------------------
Werner Enterprises, Inc. 3.92
- ----------------------------------------
Corn Products International, Inc. 3.71
- ----------------------------------------
CLARCOR Inc. 3.46
- ----------------------------------------
<F2> Excluding cash and cash equivalents
Portfolio composition and holdings are subject to change at any time.
TOTAL RETURN
as of March 31, 2000
1 YEAR ENDED AVERAGE ANNUAL SINCE
3/31/00 COMMENCEMENT<F1><F2>
- ----------------------------------------------------------------------
First Omaha Small Cap Value Fund 7.55% 4.76%
- ----------------------------------------------------------------------
<F1> Annualized
<F2> Commencement date is 6/10/96
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
RETURN ON A $10,000 INVESTMENT
FIRST OMAHA S&P MIDCAP S&P SMALLCAP S&P SMALLCAP
SMALL CAP 400 600 600 BARRA
VALUE FUND INDEX INDEX VALUE INDEX
- ----------------------------------------------------------------------
6/10/1996 10,000 10,000 10,000 10,000
3/31/1997 10,730 10,587 9,960 11,127
3/31/1998 13,906 15,779 14,709 16,853
3/31/1999 11,100 15,850 11,895 12,992
3/31/2000 11,938 21,887 15,547 15,219
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>
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
- --------- ----------
U.S. TREASURY BILLS 9.72%
$30,000,000 6.08%, 4/18/00 $29,915,212
-------------
Total U.S. Treasury Bills (cost $29,915,212) 29,915,212
-------------
U.S. GOVERNMENT AGENCY DISCOUNT NOTES 10.17%
FFCB DISCOUNT NOTES
3,000,000 6.01%, 4/17/00 2,992,266
FHLB DISCOUNT NOTES
10,000,000 5.76%, 4/26/00 9,961,597
FMC DISCOUNT NOTES
18,500,000 6.05%, 5/16/00 18,363,562
-------------
Total U.S. Government Agency Discount Notes
(cost $31,317,425) 31,317,425
-------------
U.S. GOVERNMENT AGENCIES 63.34%
FFCB
13,950,000 5.78%, 4/3/00 13,949,963
10,000,000 5.94%, 9/1/00 9,999,163
10,000,000 4.90%, 11/16/00 9,918,138
-------------
Total FFCB Government Agencies 33,867,264
-------------
FHLB
2,000,000 5.85%, 4/7/00 1,999,831
1,525,000 5.08%, 4/10/00 1,524,678
500,000 5.50%, 4/14/00 499,870
10,000,000 5.01%, 4/28/00 9,992,741
2,000,000 6.30%, 4/28/00 2,000,943
1,000,000 5.15%, 5/19/00 999,048
5,000,000 8.00%, 5/19/00 5,012,740
2,000,000 5.26%, 5/26/00 1,997,206
2,800,000 5.505%, 6/22/00 2,796,400
1,130,000 5.575%, 6/22/00 1,128,643
1,030,000 6.00%, 7/5/00 1,030,006
2,000,000 5.48%, 7/13/00 1,996,100
800,000 5.50%, 7/14/00 798,480
200,000 6.285%, 7/28/00 200,105
10,000,000 6.21%, 9/22/00 10,000,000
785,000 5.705%, 10/6/00 782,971
250,000 6.00%, 10/30/00 249,416
500,000 5.17%, 11/17/00 496,268
300,000 5.18%, 11/17/00 297,876
PRINCIPAL
AMOUNT VALUE
- --------- ----------
FHLB (CONT'D.)
$5,000,000 5.965%, 12/1/00 $4,988,205
5,000,000 5.97%, 12/1/00 4,989,604
-------------
Total FHLB Government Agencies 53,781,131
-------------
FHLMC
3,000,000 6.395%, 5/16/00 3,001,515
1,100,000 5.905%, 6/13/00 1,099,503
5,000,000 5.99%, 12/6/00 4,984,736
-------------
Total FHLMC Government Agencies 9,085,754
-------------
FNMA
20,000,000 5.04%, 4/6/00 19,997,560
3,550,000 5.58%, 4/24/00 3,548,682
1,500,000 5.10%, 5/19/00 1,498,573
900,000 6.625%, 7/12/00 901,529
265,000 5.56%, 7/24/00 264,507
9,800,000 6.36%, 8/16/00 9,805,544
10,000,000 5.93%, 9/6/00 9,998,029
5,000,000 6.24%, 9/7/00 4,999,452
750,000 5.00%, 10/2/00 745,526
920,000 5.97%, 10/2/00 918,398
4,190,000 6.29%, 10/4/00 4,189,152
1,700,000 4.45%, 10/16/00 1,684,134
466,000 5.18%, 11/17/00 462,829
1,500,000 4.82%, 12/18/00 1,484,010
2,165,000 5.44%, 1/24/01 2,146,449
-------------
Total FNMA Government Agencies 62,644,374
-------------
SLMA
10,335,000 6.085%, 8/17/00 10,333,633
5,000,000 6.585%, 8/17/00 5,000,000
150,000 6.05%, 9/14/00 149,815
5,000,000 6.335%, 2/1/01 4,997,951
10,000,000 6.325%, 3/9/01 9,995,672
-------------
Total SLMA Government Agencies 30,477,071
-------------
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- --------- ----------
OTHER U.S. GOVERNMENT AGENCY SECURITIES
$5,167,000 Tennessee Valley Authority,
6.00%, 11/1/00 $5,157,598
-------------
Total Other U.S. Government Agency Securities 5,157,598
-------------
Total U.S. Government Agency Securities (cost $195,013,192) 195,013,192
-------------
REPURCHASE AGREEMENTS 16.25%
25,050,000 First Union Capital Management, 6.18%,
dated 3/31/00, repurchase price
$25,062,900, maturing 4/3/00
(collateralized by FNMA, 0%, 6/29/00) 25,050,000
25,000,000 First Union Capital Management, 6.19%,
dated 3/31/00, repurchase price
$25,012,896, maturing 4/3/00
(collateralized by FNMA, 5.72%, 1/9/01,
FNMA, 6.16%, 3/29/01, FMAC, 7.00%,
3/11/13 and FMAC, 5.88%, 2/10/03) 25,000,000
-------------
Total Repurchase Agreements (cost $50,050,000) 50,050,000
-------------
Total Investments (cost $306,295,829) 99.48% 306,295,829
Other Assets, less Liabilities 0.52% 1,587,831
-------------
NET ASSETS 100.00% $307,883,660
=============
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
SHORT/INTERMEDIATE FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------- ----------
CORPORATE BONDS 58.91%
COMMUNICATIONS EQUIPMENT 6.93%
$750,000 AT&T Corp.,
6.75%, 4/1/04 $736,688
750,000 Motorola, Inc.,
6.50%, 3/1/08 718,125
-------------
1,454,813
-------------
DATA PROCESSING 3.25%
750,000 First Data Corp.,
5.80%, 12/15/08 683,302
-------------
FINANCIAL SERVICES 20.61%
750,000 Ford Motor Credit Co.,
6.50%, 2/15/06 712,643
750,000 General Electric Capital Corp.,
6.875%, 4/15/00 750,127
750,000 Goldman Sachs Group Inc.,
6.65%, 5/15/09 692,528
750,000 LG&E Capital Corp.,
6.46%, 1/15/08 693,097
750,000 Merrill Lynch & Co.,
6.64%, 9/19/02 740,168
750,000 Morgan Stanley Dean Witter,
6.50%, 12/31/01 741,330
-------------
4,329,893
-------------
PHARMACEUTICALS 7.19%
750,000 Eli Lilly & Co.,
8.125%, 12/1/01 760,875
750,000 Upjohn Co.,
5.875%, 4/15/00 749,753
-------------
1,510,628
-------------
RETAIL 7.02%
750,000 Sears Roebuck Acceptance Notes,
6.90%, 8/1/03 736,440
750,000 Wal-Mart Stores, Inc.,
6.50%, 6/1/03 737,587
-------------
1,474,027
-------------
UTILITIES - ELECTRIC SERVICES 7.08%
750,000 Monongahela Power Co.,
5.625%, 4/1/00 750,000
PRINCIPAL
AMOUNT VALUE
- --------- ----------
UTILITIES - ELECTRIC SERVICES 7.08% (CONT'D.)
$750,000 Union Electric Co.,
6.875%, 8/1/04 $737,197
-------------
1,487,197
-------------
UTILITIES - ELECTRIC & OTHER SERVICES
COMBINED 6.83%
750,000 Northern States Power Co.,
5.75%, 10/1/03 717,847
750,000 Potomac Electric Power Co.,
6.25%, 10/15/07 717,360
-------------
1,435,207
-------------
Total Corporate Bonds (cost $12,792,164) 12,375,067
-------------
U.S. GOVERNMENT AGENCIES 22.71%
750,000 Federal Farm Credit Bank,
5.94%, 6/10/02 734,205
750,000 Federal Farm Credit Bank,
5.72%, 4/13/05 707,122
500,000 Federal Home Loan Bank,
6.00%, 11/15/01 492,905
500,000 Federal Home Loan Bank,
6.25%, 11/15/02 490,430
1,000,000 Federal Home Loan Bank,
6.50%, 11/29/05 972,240
750,000 Federal Home Loan Bank,
5.45%, 1/12/09 664,635
750,000 Federal Home Loan Mortgage Corp.,
5.95%, 1/19/06 709,230
-------------
Total U.S. Government Agencies (cost $5,019,434) 4,770,767
-------------
U.S. TREASURY NOTES 7.08%
750,000 6.375%, 3/31/01 749,745
750,000 5.75%, 11/30/02 736,568
-------------
Total U.S. Treasury Notes (cost $1,502,051) 1,486,313
-------------
U.S. TREASURY STRIPS 3.09%
1,000,000 7.704%, 2/15/07 650,110
-------------
Total U.S. Treasury Strips (cost $685,572) 650,110
-------------
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------- ----------
INVESTMENT COMPANIES 6.41%
700,000 Federated Trust for U.S.
Treasury Obligations $ 700,000
646,853 Goldman Sachs ILA Treasury
Obligations Portfolio 646,853
-------------
Total Investment Companies (cost $1,346,853) 1,346,853
-------------
Total Investments (cost $21,346,074) 98.20% 20,629,110
Other Assets, less Liabilities 1.80% 378,672
-------------
NET ASSETS 100.00% $21,007,782
============
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
- --------- ----------
CORPORATE BONDS 78.60%
FINANCIAL SERVICES 17.72%
$3,000,000 First Union National Bank,
6.18%, 2/15/36 $2,821,560
2,000,000 General Electric Capital Corp.,
5.50%, 11/1/01 1,955,360
2,000,000 General Electric Capital Corp.,
6.90%, 9/15/15 1,941,300
2,000,000 Morgan Stanley Dean Witter,
5.625%, 1/20/04 1,885,480
-------------
8,603,700
-------------
FOREST PRODUCTS 4.99%
2,500,000 Kimberly-Clark Corp.,
6.875%, 2/15/14 2,420,800
-------------
GROCERY STORES 3.77%
2,000,000 Albertson's, Inc.,
6.34%, 2/25/13 1,828,360
-------------
HEAVY MACHINERY 5.86%
3,000,000 Ingersoll-Rand Co.,
6.443%, 11/15/27 2,842,380
-------------
INDUSTRIAL GOODS & SERVICES 8.05%
2,000,000 Air Products & Chemicals, Inc.,
6.25%, 6/15/03 1,914,060
2,000,000 PPG Industries, Inc.,
7.375%, 6/1/16 1,995,640
-------------
3,909,700
-------------
OIL 14.12%
2,500,000 Amoco Canada Petroleum Co. Ltd.,
6.75%, 2/15/05 2,450,975
2,000,000 Conoco, Inc.,
5.90%, 4/15/04 1,905,420
2,500,000 Halliburton Co., Series A,
6.75%, 2/1/27 2,496,125
-------------
6,852,520
-------------
PHARMACEUTICALS 4.02%
2,000,000 Eli Lilly & Co.,
6.25%, 3/15/03 1,949,240
-------------
PRINCIPAL
AMOUNT VALUE
- --------- ----------
UTILITIES - ELECTRIC SERVICES 9.07%
$2,000,000 National Rural Utilities Cooperative
Finance Corp., 6.50%, 9/15/02 $1,970,760
2,500,000 Union Electric Co.,
6.75%, 5/1/08 2,433,025
-------------
4,403,785
-------------
UTILITIES - ELECTRIC & OTHER SERVICES
COMBINED 6.20%
3,000,000 Citizens Utilities Co.,
7.60%, 6/1/06 3,011,010
-------------
UTILITIES - NATURAL GAS 4.80%
2,500,000 Laclede Gas Co.,
6.50%, 11/15/10 2,331,800
-------------
Total Corporate Bonds (cost $39,914,224) 38,153,295
-------------
U.S. GOVERNMENT AGENCIES 11.71%
2,000,000 Federal National Mortgage Association,
5.875%, 2/2/06 1,883,540
2,000,000 Federal National Mortgage Association,
6.50%, 7/16/07 1,929,720
2,000,000 Federal National Mortgage Association,
6.41%, 11/13/12 1,873,240
-------------
Total U.S. Government Agencies (cost $6,369,620) 5,686,500
-------------
U.S. TREASURY NOTES 3.92%
2,000,000 5.50%, 5/15/09 1,904,880
-------------
Total U.S. Treasury Notes (cost $1,836,172) 1,904,880
-------------
U.S. TREASURY STRIPS 0.98%
1,000,000 7.883%, 2/15/12 476,910
-------------
Total U.S. Treasury Strips (cost $399,100) 476,910
-------------
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------- ----------
INVESTMENT COMPANIES 3.17%
1,537,566 Goldman Sachs ILA Treasury
Obligations Portfolio $ 1,537,566
-------------
Total Investment Companies (cost $1,537,566) 1,537,566
-------------
Total Investments (cost $50,056,682) 98.38% 47,759,151
Other Assets, less Liabilities 1.62% 785,329
-------------
NET ASSETS 100.00% $48,544,480
=============
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
BALANCED FUND
NUMBER
OF SHARES VALUE
- --------- ----------
COMMON STOCKS 47.15%
ADVERTISING 0.24%
600 The Interpublic Group of Companies, Inc. $ 28,350
-------------
BANKING 1.09%
3,800 Banc One Corp. 130,625
-------------
BUILDING PRODUCTS 1.21%
6,100 Lafarge Corp. 144,875
-------------
COMMUNICATIONS EQUIPMENT 2.49%
1,600 Motorola, Inc. 227,800
1,700 SBC Communications, Inc. 71,400
-------------
299,200
-------------
COMPUTERS & PERIPHERALS 4.43%
6,400 Compuware Corp.<F1> 134,800
1,700 International Business Machines Corp. 200,600
4,900 NCR Corp.<F1> 196,613
-------------
532,013
-------------
COSMETICS 0.99%
3,400 International Flavors & Fragrances, Inc. 119,213
-------------
DATA PROCESSING 1.62%
4,400 First Data Corp. 194,700
-------------
ELECTRICAL EQUIPMENT 2.12%
2,400 Emerson Electric Co. 126,900
3,100 Parker-Hannifin Corp. 128,069
-------------
254,969
-------------
FINANCIAL SERVICES 1.84%
2,700 Federal Home Loan Mortgage Corp. 119,306
1,800 Federal National Mortgage Assn. 101,587
-------------
220,893
-------------
FOOD 0.74%
1,900 Bestfoods 88,944
-------------
GAMES & TOYS 1.00%
11,500 Mattel, Inc. 120,031
-------------
HEAVY MACHINERY 1.62%
4,400 Ingersoll-Rand Co. 194,700
-------------
NUMBER
OF SHARES VALUE
- --------- ----------
INSURANCE 4.08%
1,500 American General Corp. $84,188
2,600 Marsh & McLennan Cos., Inc. 286,812
4,500 SAFECO Corp. 119,531
-------------
490,531
-------------
MANUFACTURING 3.73%
6,200 Newell Rubbermaid, Inc. 153,837
4,000 PepsiCo, Inc. 138,250
7,100 The Sherwin-Williams Company 155,756
-------------
447,843
-------------
MEDICAL SUPPLIES 2.51%
4,000 Abbott Laboratories 140,750
6,100 Becton, Dickinson & Co. 160,506
-------------
301,256
-------------
OIL 5.89%
1,500 Exxon Mobil Corp. 116,719
5,500 Halliburton Co. 225,500
3,700 Texaco Inc. 198,413
5,600 Unocal Corp. 166,600
-------------
707,232
-------------
PACKAGING & CONTAINERS 1.35%
6,900 Sonoco Products Co. 162,150
-------------
PHARMACEUTICALS 1.30%
2,700 Bristol-Myers Squibb Co. 155,925
-------------
PHOTOGRAPHY 1.22%
2,700 Eastman Kodak Co. 146,644
-------------
PUBLISHING 0.92%
5,300 R.R. Donnelley & Sons Co. 110,969
-------------
SOAPS & CLEANING AGENTS 1.36%
2,900 Colgate-Palmolive Co. 163,487
-------------
TELEPHONE 1.95%
3,300 GTE Corp. 234,300
-------------
TEXTILE MANUFACTURING 0.13%
900 Kellwood Co. 15,806
-------------
TRANSPORTATION 1.30%
4,000 Union Pacific Corp. 156,500
-------------
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------- ----------
UTILITIES - ELECTRIC SERVICES 2.02%
5,272 DPL Inc. $116,972
1,400 TECO Energy, Inc. 27,213
3,300 Texas Utilities Co. 97,969
-------------
242,154
-------------
Total Common Stocks (cost $5,659,222) 5,663,310
-------------
PRINCIPAL
AMOUNT
- ----------
CORPORATE BONDS 36.10%
COMPUTERS 3.96%
$500,000 Dell Computer Corp.
6.55%, 4/15/08 475,380
-------------
FINANCIAL SERVICES 7.91%
500,000 General Electric Capital Corp.,
6.90%, 9/15/15 485,325
500,000 Southtrust Bank NA,
6.125%, 1/9/28 464,615
-------------
949,940
-------------
FOOD PRODUCTS 4.11%
500,000 Anheuser-Busch Cos., Inc.,
6.75%, 8/1/03 493,675
-------------
FOREST PRODUCTS 3.76%
500,000 Kimberly-Clark Corp.
6.25%, 7/15/18 451,145
-------------
OIL 4.16%
500,000 Halliburton Co., Series A,
6.75%, 2/1/27 499,225
-------------
RAIL CAR LEASING 4.20%
500,000 Union Tank Car Co.,
7.45%, 6/1/09 504,285
-------------
UTILITIES - ELECTRIC SERVICES 4.16%
500,000 Tampa Electric Co.,
5.75%, 5/1/00 499,620
-------------
UTILITIES - NATURAL GAS 3.84%
500,000 Laclede Gas Co.,
6.50%, 10/15/12 460,860
-------------
PRINCIPAL
AMOUNT VALUE
- --------- ----------
Total Corporate Bonds (cost $4,490,905) $4,334,130
-------------
U.S. GOVERNMENT AGENCIES 8.05%
$500,000 Federal Home Loan Bank,
5.66%, 5/21/02 486,890
500,000 Federal National Mortgage Association,
6.44%, 8/14/07 480,420
-------------
Total U.S. Government Agencies (cost $977,590) 967,310
-------------
U.S. TREASURY NOTES 2.15%
250,000 7.00%, 7/15/06 258,380
-------------
Total U.S. Treasury Notes (cost $253,662) 258,380
-------------
NUMBER
OF SHARES
- ---------
INVESTMENT COMPANIES 6.22%
247,339 Goldman Sachs ILA Treasury Obligations
Portfolio 247,339
500,000 Federated Trust for U.S. Treasury
Obligations 500,000
-------------
Total Investment Companies (cost $747,339) 747,339
-------------
Total Investments (cost $12,128,718) 99.67% 11,970,469
Other Assets, less Liabilities 0.33% 40,143
-------------
NET ASSETS 100.00% $12,010,612
=============
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
EQUITY FUND
NUMBER
OF SHARES VALUE
- --------- ----------
COMMON STOCKS 92.24%
ADVERTISING 0.39%
7,200 The Interpublic Group of Companies, Inc. $340,200
-------------
BANKING 2.23%
56,900 Banc One Corp. 1,955,937
-------------
BUILDING PRODUCTS 2.31%
85,300 Lafarge Corp. 2,025,875
-------------
COMMUNICATIONS EQUIPMENT 4.92%
23,100 Motorola, Inc. 3,288,862
24,200 SBC Communications, Inc. 1,016,400
-------------
4,305,262
-------------
COMPUTERS & PERIPHERALS 8.86%
87,200 Compuware Corp.<F1> 1,836,650
24,100 International Business Machines Corp. 2,843,800
76,700 NCR Corp.<F1> 3,077,587
-------------
7,758,037
-------------
COSMETICS 1.90%
47,400 International Flavors & Fragrances, Inc. 1,661,963
-------------
DATA PROCESSING 3.33%
65,900 First Data Corp. 2,916,075
-------------
ELECTRICAL EQUIPMENT 4.08%
33,600 Emerson Electric Co. 1,776,600
43,500 Parker-Hannifin Corp. 1,797,094
-------------
3,573,694
-------------
FINANCIAL SERVICES 3.91%
38,600 Federal Home Loan Mortgage Corp. 1,705,638
30,500 Federal National Mortgage Assn. 1,721,344
-------------
3,426,982
-------------
FOOD 1.43%
26,700 Bestfoods 1,249,893
-------------
GAMES & TOYS 1.91%
160,000 Mattel, Inc. 1,670,000
-------------
HEAVY MACHINERY 3.10%
61,400 Ingersoll-Rand Co. 2,716,950
-------------
NUMBER
OF SHARES VALUE
- --------- ----------
INSURANCE 7.81%
21,000 American General Corp. $1,178,625
36,300 Marsh & McLennan Cos., Inc. 4,004,344
62,100 SAFECO Corp. 1,649,531
-------------
6,832,500
-------------
MANUFACTURING 7.40%
83,400 Newell Rubbermaid, Inc. 2,069,362
64,800 PepsiCo, Inc. 2,239,650
98,700 The Sherwin-Williams Company 2,165,231
-------------
6,474,243
-------------
MEDICAL SUPPLIES 4.80%
55,700 Abbott Laboratories 1,959,944
85,100 Becton, Dickinson & Co. 2,239,194
-------------
4,199,138
-------------
OIL 11.35%
21,600 Exxon Mobil Corp. 1,680,750
76,600 Halliburton Co. 3,140,600
51,700 Texaco Inc. 2,772,413
78,800 Unocal Corp. 2,344,300
-------------
9,938,063
-------------
PACKAGING & CONTAINERS 2.58%
96,100 Sonoco Products Co. 2,258,350
-------------
PHARMACEUTICALS 2.59%
39,300 Bristol-Myers Squibb Co. 2,269,575
-------------
PHOTOGRAPHY 2.32%
37,400 Eastman Kodak Co. 2,031,288
-------------
PUBLISHING 1.80%
75,100 R.R. Donnelley & Sons Co. 1,572,406
-------------
SOAPS & CLEANING AGENTS 2.58%
40,100 Colgate-Palmolive Co. 2,260,638
-------------
TELEPHONE 3.72%
45,900 GTE Corp. 3,258,900
-------------
TEXTILE MANUFACTURING 0.80%
39,700 Kellwood Co. 697,231
-------------
<PAGE>
FIRST OMAHA FUNDS - Annual Report
NUMBER
OF SHARES VALUE
- --------- ----------
TRANSPORTATION 2.52%
56,400 Union Pacific Corp. $2,206,650
-------------
UTILITIES - ELECTRICAL SERVICES 3.60%
64,738 DPL, Inc. 1,436,374
16,700 TECO Energy, Inc. 324,606
46,800 Texas Utilities Co. 1,389,375
-------------
3,150,355
-------------
Total Common Stocks (cost $73,105,576) 80,750,205
-------------
INVESTMENT COMPANIES 8.62%
4,200,000 Federated Trust for U.S. Treasury
Obligations 4,200,000
3,341,809 Goldman Sachs ILA Treasury
Obligations Portfolio 3,341,809
-------------
Total Investment Companies (cost $7,541,809) 7,541,809
-------------
Total Investments (cost $80,647,385) 100.86% 88,292,014
Liabilities, less Other Assets (0.86)% (754,886)
-------------
NET ASSETS 100.00% $87,537,128
=============
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
GROWTH FUND
NUMBER
OF SHARES VALUE
- --------- ----------
COMMON STOCKS 87.35%
AUTOMOTIVE PARTS 4.92%
45,000 Dura Automotive Systems, Inc.<F1> $773,438
15,000 Genuine Parts Co. 358,125
-------------
1,131,563
-------------
BEVERAGES 5.75%
14,000 Canandaigua Brands, Inc.<F1> 714,000
17,500 Robert Mondavi Corp., Class A<F1> 610,312
-------------
1,324,312
-------------
BUSINESS SERVICES 0.84%
4,000 Automatic Data Processing, Inc. 193,000
-------------
COMMERCIAL SERVICES 1.68%
10,000 Convergys Corp.<F1> 386,250
-------------
COMMUNICATION SERVICES 6.17%
9,000 Plantronics, Inc.<F1> 838,687
12,000 Qwest Communications International Inc.<F1> 582,000
-------------
1,420,687
-------------
COMPUTER COMPONENTS 2.36%
11,000 BMC Software, Inc.<F1> 543,125
-------------
COMPUTER EQUIPMENT 6.48%
8,000 Adobe Systems, Inc. 890,500
8,000 Symantic Corp.<F1> 601,000
-------------
1,491,500
-------------
COMPUTER SERVICES 0.99%
1,000 DoubleClick, Inc.<F1> 93,625
1,900 Lycos, Inc.<F1> 133,475
-------------
227,100
-------------
DIVERSIFIED 3.04%
20,000 Cooper Industries, Inc. 700,000
-------------
ELECTRONICS 2.92%
30,000 Sensormatic Electronics Corp.<F1> 673,125
-------------
FINANCIAL SERVICES 12.31%
7,000 Donaldson, Lufkin & Jenrette, Inc.<F1> 93,187
4,300 MBIA, Inc. 223,869
NUMBER
OF SHARES VALUE
- --------- ----------
FINANCIAL SERVICES 12.31% (CONT'D.)
21,400 MGIC Investment Corp. $933,575
25,300 Provident Financial Group, Inc. 861,781
13,000 XL Capital Limited 719,875
-------------
2,832,287
-------------
FOOD 3.58%
40,200 Wild Oats Markets, Inc.<F1> 824,100
-------------
HEALTH CARE SERVICES 5.01%
14,000 Cerner Corp.<F1> 378,000
13,000 United Healthcare Corp. 775,125
-------------
1,153,125
-------------
INDUSTRIAL 3.02%
13,900 PACCAR, Inc. 695,000
-------------
MACHINERY & EQUIPMENT 1.87%
9,000 Dover Corp. 430,875
-------------
MANUFACTURING 6.47%
20,000 Azurix Corp.<F1> 150,000
6,000 Illinois Tool Works Inc. 331,500
10,000 Nucor Corp. 500,000
15,200 Valassis Communications, Inc.<F1> 506,350
-------------
1,487,850
-------------
MEDICAL EQUIPMENT 5.59%
10,000 Guidant Corp.<F1> 588,125
10,000 Stryker Corp. 697,500
-------------
1,285,625
-------------
OIL & GAS 2.82%
3,000 Enron Corp. 224,625
25,000 Midcoast Energy Resources, Inc. 423,438
-------------
648,063
-------------
RETAIL 2.20%
10,000 Tandy Corp. 507,500
-------------
TELECOMMUNICATIONS 3.68%
8,000 Level 3 Communications, Inc.<F1> 846,000
-------------
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
NUMBER
OF SHARES VALUE
- --------- ----------
TRANSPORTATION 5.65%
31,500 Southwest Airlines Co. $655,594
31,500 Swift Transportation Co., Inc.<F1> 645,750
-------------
1,301,344
-------------
Total Common Stocks (cost $16,281,647) 20,102,431
-------------
REAL ESTATE INVESTMENT TRUSTS 3.87%
20,000 Spieker Properties, Inc. 890,000
-------------
Total Real Estate Investment Trusts (cost $717,423) 890,000
-------------
INVESTMENT COMPANIES 5.08%
500,000 Federated Trust for U.S. Treasury
Obligations 500,000
668,748 Goldman Sachs ILA Treasury
Obligations Portfolio 668,748
-------------
Total Investment Companies (cost $1,168,748) 1,168,748
-------------
Total Investments (cost $18,167,818) 96.30% 22,161,179
Other Assets, less Liabilities 3.70% 851,676
-------------
NET ASSETS 100.00% $23,012,855
============-=
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
March 31, 2000
SMALL CAP VALUE FUND
NUMBER
OF SHARES VALUE
- --------- ----------
COMMON STOCKS 89.87%
AIRLINES 2.23%
7,500 Midwest Express Holdings, Inc.<F1> $192,187
-------------
BANKING 4.51%
6,600 Cullen/Frost Bankers, Inc. 174,488
12,000 North Fork Bancorporation, Inc. 214,500
-------------
388,988
-------------
CHEMICALS 6.38%
2,150 Dexter Corp. 113,950
23,300 Oil-Dri Corp. of America 176,206
12,400 WD-40 Co. 260,400
-------------
550,556
-------------
COMPUTER SOFTWARE 5.14%
7,400 SBS Technologies, Inc.<F1> 212,750
8,000 Transaction Systems Architects, Inc.<F1> 231,000
-------------
443,750
-------------
CONSUMER PRODUCTS 1.73%
54,200 Hartmarx Corp.<F1> 149,050
-------------
ELECTRONICS 5.61%
7,300 Dallas Semiconductor Corp. 256,412
6,400 Teleflex, Inc. 227,200
-------------
483,612
-------------
FOOD 6.58%
13,300 Corn Products International, Inc. 320,031
11,600 Universal Foods Corp. 247,950
-------------
567,981
-------------
HOME FURNISHINGS 2.08%
5,500 National Presto Industries, Inc. 179,437
-------------
INSURANCE 5.78%
7,000 Arthur J. Gallagher & Co. 227,500
8,300 Everest Re Group, Ltd. 270,787
-------------
498,287
-------------
MACHINERY & EQUIPMENT 5.51%
9,100 Modine Manufacturing Co. 228,637
5,600 Tecumseh Products Co., Class A 246,400
-------------
475,037
-------------
NUMBER
OF SHARES VALUE
- --------- ----------
MANUFACTURING 2.23%
6,200 Tennant Co. $192,200
-------------
MEDICAL - DRUGS 8.15%
7,200 Jones Pharma, Inc. 218,700
8,700 Medicis Pharmaceutical Corp.<F1> 348,000
13,300 STERIS Corp.<F1> 136,325
-------------
703,025
-------------
METAL PRODUCTS 2.38%
22,400 Amcast Industrial Corp. 205,800
-------------
MINING 1.74%
6,300 Cleveland-Cliffs, Inc. 150,019
-------------
MOTOR VEHICLE PARTS & ACCESSORIES 3.46%
16,800 CLARCOR Inc. 298,200
-------------
OIL & GAS 6.87%
11,200 Newfield Exploration Co.<F1> 394,800
6,200 Tidewater, Inc. 197,238
-------------
592,038
-------------
PACKAGING & CONTAINERS 2.44%
8,300 West Pharmaceutical Services, Inc. 210,094
-------------
PAPER PRODUCTS 2.86%
23,200 P.H. Glatfelter Co. 246,500
-------------
RETAIL 3.14%
24,900 Casey's General Stores, Inc. 270,788
-------------
TEXTILE MANUFACTURING 2.61%
12,800 Kellwood Co. 224,800
-------------
TRUCKING LEASING 3.92%
19,900 Werner Enterprises, Inc. 338,300
-------------
UTILITIES - ELECTRIC SERVICES 4.52%
5,800 IDACORP, Inc. 201,550
9,800 OGE Energy Corp. 188,038
-------------
389,588
-------------
Total Common Stocks (cost $8,589,616) 7,750,237
-------------
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- --------- ----------
REPURCHASE AGREEMENTS 9.28%
$800,000 Spear, Leeds & Kellogg, 6.00%,
dated 3/31/00, repurchase price
$800,400, maturing 4/3/00
(collateralized by U.S. Treasury Note,
5.875%, 11/15/04) $ 800,000
-------------
Total Repurchase Agreements (cost $800,000) 800,000
-------------
NUMBER
OF SHARES
- ----------
INVESTMENT COMPANIES 0.76%
65,686 Goldman Sachs ILA Treasury
Obligations Portfolio 65,686
-------------
Total Investment Companies (cost $65,686) 65,686
-------------
Total Investments (cost $9,455,302) 99.91% 8,615,923
Other Assets, less Liabilities 0.09% 7,702
-------------
NET ASSETS 100.00% $8,623,625
=============
<F1> Non-income producing security
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
Statements of Assets and Liabilities
March 31, 2000
<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
$256,245,829, $21,346,074,
$50,056,682, $12,128,718, $80,647,385,
$18,167,818 and $8,655,302,
respectively) $256,245,829 $20,629,110 $47,759,151 $11,970,469 $88,292,014 $22,161,179 $7,815,923
Repurchase agreements, at value
(cost $50,050,000,
$0, $0, $0, $0, $0 and $800,000,
respectively) 50,050,000 - - - - - 800,000
Receivable for securities sold - - - - - 812,123 -
Interest and dividends receivable 3,022,608 368,798 783,441 113,122 178,514 34,974 7,909
Organizational expenses, net of
accumulated amortization 174 174 174 1,256 174 9,012 2,280
Other assets 64,642 21,728 21,269 8,048 38,132 8,269 9,135
------------ ----------- ----------- ---------- ----------- ----------- ----------
Total Assets 309,383,253 21,019,810 48,564,035 12,092,895 88,508,834 23,025,557 8,635,247
------------ ----------- ----------- ---------- ----------- ----------- ----------
LIABILITIES:
Payable for securities purchased - - - 66,733 932,594 - -
Dividend payable 1,443,700 - - - - - -
Accrued expenses and other liabilities 22,962 10,866 16,922 14,947 33,950 11,065 10,893
Accrued investment advisory fee 32,931 1,162 2,633 603 5,162 1,637 729
------------ ----------- ----------- ---------- ----------- ----------- ----------
Total Liabilities 1,499,593 12,028 19,555 82,283 971,706 12,702 11,622
------------ ----------- ----------- ---------- ----------- ----------- ----------
NET ASSETS $307,883,660 $21,007,782 $48,544,480 $12,010,612 $87,537,128 $23,012,855 $8,623,625
============ =========== =========== =========== =========== ========== ==========
NET ASSETS CONSIST OF:
Capital stock 3,079 22 51 13 97 20 8
Paid-in capital in excess of par 307,896,151 21,935,603 51,503,300 14,012,427 86,666,411 19,790,027 9,927,080
Undistributed net investment income 10,034 15,888 37,569 4,454 1,915 11,370 2,196
Undistributed net realized gain (loss)
on investments (25,604) (226,767) (698,909) (1,848,033) (6,775,924) (781,923) (466,280)
Net unrealized appreciation
(depreciation) on investments - (716,964) (2,297,531) (158,249) 7,644,629 3,993,361 (839,379)
------------ ----------- ----------- ---------- ----------- ----------- ----------
Net Assets $307,883,660 $21,007,782 $48,544,480 $12,010,612 $87,537,128 $23,012,855 $8,623,625
============ =========== =========== =========== =========== =========== ==========
CAPITAL STOCK, $0.00001 PAR VALUE
Authorized (See Note 8) 500,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000
Issued and outstanding 307,909,177 2,198,479 5,061,280 1,292,447 9,728,201 2,011,753 836,246
NET ASSET VALUE, REDEMPTION PRICE,
AND OFFERING PRICE PER SHARE (NET
ASSETS/SHARES OUTSTANDING) $1.00 $9.56 $9.59 $9.29 $9.00 $11.44 $10.31
===== ====== ====== ====== ====== ====== =======
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- -------------------------------------------------------------------------------
Statements of Operations
For the Year Ended March 31, 2000
<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 $10,674,396 $1,230,643 $4,389,110 $557,149 $299,420 $23,680 $20,147
Dividends - - - 260,157 3,948,789 169,447 232,281
----------- ---------- ----------- --------- ---------- --------- ---------
10,674,396 1,230,643 4,389,110 817,306 4,248,209 193,127 252,428
----------- ---------- ----------- --------- ---------- --------- ---------
EXPENSES:
Investment advisory fees 485,475 97,656 399,612 143,933 1,252,545 127,784 91,840
Fund administration and accounting
fees 388,380 39,062 133,204 38,382 334,012 50,274 50,274
Custody fees 58,257 5,859 19,981 5,757 50,102 5,111 3,241
Shareholder servicing fees 56,597 30,944 44,179 31,973 79,767 29,185 29,173
Federal and state registration fees 34,674 11,284 16,295 11,597 31,084 8,580 13,847
Professional fees 18,594 12,458 16,916 12,932 25,859 10,915 12,115
Reports to shareholders 9,163 2,068 7,485 2,535 19,094 1,750 1,270
Directors' fees 8,927 1,214 4,696 1,599 14,755 1,034 899
Amortization of organization expenses 6,965 6,965 6,965 937 6,965 3,012 1,929
Insurance 4,583 838 3,220 1,054 9,133 100 532
Pricing fees 1,146 3,456 3,623 3,770 1,848 1,973 1,458
Administrative services plan fees - 17,686 60,115 15,491 143,335 - 10,112
Other expenses 2,816 1,581 1,724 1,594 4,139 679 514
----------- ---------- ----------- --------- ---------- --------- ---------
Total expenses before waiver 1,075,577 231,071 718,015 271,554 1,972,638 240,397 217,204
Waiver of expenses (317,981) (32,485) (110,691) (59,754) (190,379) (64,463) (60,819)
----------- ---------- ----------- --------- ---------- --------- ---------
Net Expenses 757,596 198,586 607,324 211,800 1,782,259 175,934 156,385
----------- ---------- ----------- --------- ---------- --------- ---------
NET INVESTMENT INCOME 9,916,800 1,032,057 3,781,786 605,506 2,465,950 17,193 96,043
----------- ---------- ----------- --------- ---------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) on investments (7,435) 24,762 (484,369) (870,245) 9,623,756 144,552 (450,341)
Change in unrealized appreciation
(depreciation) on investments - (901,412) (4,446,521) (451,243) (22,556,441) 3,375,468 1,416,459
----------- ---------- ----------- --------- ---------- --------- ---------
Net Gain (Loss) on Investments (7,435) (876,650) (4,930,890) (1,321,488) (12,932,685) 3,520,020 966,118
----------- ---------- ----------- --------- ---------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $9,909,365 $155,407 $(1,149,104) $(715,982) $(10,466,735) $3,537,213 $1,062,161
========== ========== =========== ========== ============ ========== ==========
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
U.S. GOVERNMENT SHORT/INTERMEDIATE FIXED
MONEY MARKET FUND FIXED INCOME FUND INCOME FUND
------------------------------ ---------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 2000 1999 2000 1999
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $9,916,800 $4,868,296 $1,032,057 $1,056,707 $3,781,786 $4,729,998
Net realized gain (loss) on investments (7,435) 1,111 24,762 91,388 (484,369) 1,053,007
Change in unrealized appreciation
(depreciation) on investments - - (901,412) (39,148) (4,446,521) (1,136,109)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) in net
assets resulting
from operations 9,909,365 4,869,407 155,407 1,108,947 (1,149,104) 4,646,896
----------- ------------ ----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income (9,916,800) (4,868,296) (1,040,790) (1,056,399) (3,831,892) (4,730,231)
Net capital gains - - - - (992,917) (217,671)
----------- ------------ ----------- ------------ ----------- -----------
Total distributions (9,916,800) (4,868,296) (1,040,790) (1,056,399) (4,824,809) (4,947,902)
----------- ------------ ----------- ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 951,251,913 394,777,417 11,780,909 7,845,847 10,308,583 16,794,091
Proceeds from reinvestment
of dividends 206,720 154,244 913,598 1,018,299 4,744,491 4,874,511
Redemption of shares (777,297,839) (361,699,190) (12,437,478) (6,789,605) (42,954,356) (16,619,283)
----------- ------------ ----------- ------------ ----------- -----------
Net increase (decrease) from share
transactions 174,160,794 33,232,471 257,029 2,074,541 (27,901,282) 5,049,319
----------- ------------ ----------- ------------ ----------- -----------
TOTAL INCREASE (DECREASE) IN
NET ASSETS 174,153,359 33,233,582 (628,354) 2,127,089 (33,875,195) 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 $307,883,660 $133,730,301 $21,007,782 $21,636,136 $48,544,480 $82,419,675
============ ============ =========== ============ ============ ===========
Undistributed net investment income,
end of period $10,034 $8,012 $15,888 $22,599 $37,569 $85,653
============ ============ =========== ============ ============ ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
FIRST OMAHA FUNDS - Annual Report
BALANCED FUND EQUITY FUND GROWTH FUND SMALL CAP VALUE FUND
----------------------- ------------------------- ---------------------- ----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
2000 1999 2000 1999 2000 1999 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $605,506 $816,811 $2,465,950 $4,889,014 $17,193 $140,237 $96,043 $238,504
Net realized gain (loss)
on investments (870,245) 833,920 9,623,756 32,830,496 144,552 (972,963) (450,341) 443,626
Change in unrealized
appreciation (depreciation)
on investments (451,243) (2,619,384) (22,556,441) (64,096,533) 3,375,468 617,893 1,416,459 (4,312,605)
---------- ----------- ------------ ------------ --------- --------- --------- ----------
Net increase (decrease) in
net assets resulting
from operations (715,982) (968,653) (10,466,735) (26,377,023) 3,537,213 (214,833) 1,062,161 (3,630,475)
---------- ----------- ------------ ------------ --------- --------- --------- ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
Net investment income (612,643) (818,531) (2,478,199) (4,882,142) (7,416) (125,285) (102,839) (238,661)
Net capital gains (1,213,790) (754,425) (35,278,111) (20,488,813) - - (169,668) (451,358)
---------- ----------- ------------ ------------ --------- --------- --------- ----------
Total distributions (1,826,433) (1,572,956) (37,756,310) (25,370,955) (7,416) (125,285) (272,507) (690,019)
---------- ----------- ------------ ------------ --------- --------- --------- ----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale
of shares 6,343,381 8,207,537 22,818,088 34,157,608 18,614,782 19,440,805 3,962,232 5,961,795
Proceeds from reinvestment
of dividends 1,821,251 1,564,415 37,560,860 25,169,606 6,716 119,796 257,708 680,419
Redemption of shares (17,494,685) (9,038,833) (156,205,072) (88,066,228) (13,455,974) (4,902,949) (9,482,091) (6,245,000)
---------- ----------- ------------ ------------ --------- --------- --------- ----------
Net increase (decrease)
from share transactions (9,330,053) 733,119 (95,826,124) (28,739,014) 5,165,524 14,657,652 (5,262,151) 397,214
---------- ----------- ------------ ------------ --------- --------- --------- ----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS (11,872,468) (1,808,490) (144,049,169) (80,486,992) 8,695,321 14,317,534 (4,472,497) (3,923,280)
NET ASSETS:
Beginning of period 23,883,080 25,691,570 231,586,297 312,073,289 14,317,534 - 13,096,122 17,019,402
---------- ----------- ------------ ------------ --------- --------- --------- ----------
End of period $12,010,612 $23,883,080 $87,537,128 $231,586,297 $23,012,855 $14,317,534 $8,623,625 $13,096,122
========== =========== =========== ============ ========== ========== ========== ==========
Undistributed net
investment income, end
of period $4,454 $10,654 $1,915 $12,142 $11,370 $- $2,196 $7,063
====== ======= ====== ======= ======= === ======= ======
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
Financial Highlights<F1>
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
-----------------------------------------------------------------------
APRIL 10, JULY 1,
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 1995<F2> TO 1994 TO
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, APRIL 9,
2000 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.05 0.05 0.05 0.05 0.04
Net realized and unrealized gains (losses)
on investments - - - - - -
------- ------- ------- ------- ------- -------
Total from investment operations 0.05 0.05 0.05 0.05 0.05 0.04
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.05 0.05 0.05 0.05 0.05 0.04
Distributions from capital gains - - - - - -
------- ------- ------- ------- ------- -------
Total distributions 0.05 0.05 0.05 0.05 0.05 0.04
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN<F3> 5.06% 4.63% 4.95% 4.76% 5.14% 3.51%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $307,884 $133,730 $100,497 $125,413 $87,715 $76,105
Ratio of net expenses to average net assets<F4> 0.39% 0.54% 0.55% 0.58% 0.54% 0.63%
Ratio of net investment income to average
net assets<F4> 5.10% 4.52% 4.83% 4.66% 5.12% 4.46%
Ratio of net expenses to average net assets<F4><F5> 0.55% 0.58% 0.58% 0.59% 0.59% 1.23%
Ratio of net investment income to average
net assets<F4><F5> 4.94% 4.48% 4.80% 4.65% 5.07% 3.86%
Portfolio turnover rate<F3> - - - - - -
<F1> Performance data for each Fund prior to April 1, 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.
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT/INTERMEDIATE FIXED INCOME FUND
-----------------------------------------------------------------------------------
APRIL 10, JULY 1,
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 1995<F2> TO 1994 TO
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, APRIL 9,
2000 1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.01 $9.97 $9.73 $9.85 $9.66 $9.62
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.51 0.51 0.56 0.49 0.52 0.42
Net realized and unrealized gains (losses)
on investments (0.45) 0.04 0.24 (0.10) 0.17 0.05
------- ------- ------ ------- ------- -------
Total from investment operations 0.06 0.55 0.80 0.39 0.69 0.47
------- ------- ------ ------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.51 0.51 0.56 0.51 0.50 0.43
Distributions from capital gains - - - - - -
------- ------- ------ ------- ------- -------
Total distributions 0.51 0.51 0.56 0.51 0.50 0.43
------- ------- ------ ------- ------- -------
NET ASSET VALUE, END OF PERIOD $9.56 $10.01 $9.97 $9.73 $9.85 $9.66
======= ======= ====== ====== ====== =======
TOTAL RETURN<F3> 0.71% 5.61% 8.37% 4.00% 7.24% 5.05%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $21,008 $21,636 $19,509 $21,042 $22,056 $22,130
Ratio of net expenses to average net assets<F4> 1.02% 0.97% 0.99% 0.97% 0.89% 0.88%
Ratio of net investment income to average
net assets<F4> 5.28% 5.05% 5.54% 5.01% 5.34% 5.63%
Ratio of net expenses to average net
assets<F4><F5> 1.18% 1.13% 1.15% 1.08% 1.02% 1.51%
Ratio of net investment income to average
net assets<F4><F5> 5.12% 4.89% 5.38% 4.90% 5.21% 5.00%
Portfolio turnover rate<F3> 36.41% 21.36% 26.58% 4.73% 41.45% 9.93%
<F1> Performance data for each Fund prior to April 1, 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.
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
Financial Highlights<F1> (continued)
<TABLE>
<CAPTION>
FIXED INCOME FUND
------------------------------------------------------------------------------
APRIL 10, JULY 1,
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 1995<F2> TO 1994 TO
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, APRIL 9,
2000 1999 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.42 $10.45 $9.84 $10.00 $9.63 $9.58
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.57 0.61 0.59 0.45 0.59 0.51
Net realized and unrealized gains (losses)
on investments (0.67) - 0.61 (0.15) 0.35 0.07
-------- ------- -------- -------- -------- -------
Total from investment operations (0.10) 0.61 1.20 0.30 0.94 0.58
-------- ------- -------- -------- -------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income 0.58 0.61 0.59 0.46 0.57 0.53
Distributions from capital gains 0.15 0.03 - - - -
-------- ------- -------- -------- -------- -------
Total distributions 0.73 0.64 0.59 0.46 0.57 0.53
------- ------- -------- ------- -------- -------
NET ASSET VALUE, END OF PERIOD $9.59 $10.42 $10.45 $9.84 $10.00 $9.63
======= ====== ======= ======= ======= ======
TOTAL RETURN<F3> (0.90)% 5.93% 12.50% 3.06% 9.79% 6.35%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $48,544 $82,420 $77,671 $75,524 $76,342 $66,488
Ratio of net expenses to average net assets<F4> 0.91% 0.88% 0.89% 0.89% 0.83% 0.87%
Ratio of net investment income to average
net assets<F4> 5.68% 5.78% 5.74% 4.48% 5.94% 6.98%
Ratio of net expenses to average net assets<F4><F5>1.08% 1.05% 1.05% 1.00% 0.96% 1.51%
Ratio of net investment income to average
net assets<F4><F5> 5.51% 5.61% 5.58% 4.37% 5.81% 6.34%
Portfolio turnover rate<F3> 18.39% 31.35% 19.03% 12.66% 37.35% 7.04%
<F1> Performance data for each Fund prior to April 1, 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.
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCED FUND EQUITY FUND
--------------------------------------- ---------------------------------------------------------
AUG. 6, APRIL 10, JULY 1,
YEAR YEAR YEAR 1996<F2> YEAR YEAR YEAR YEAR 1995<F2> 1994
ENDED ENDED ENDED TO ENDED ENDED ENDED ENDED TO TO
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, APRIL 9,
2000 1999 1998 1997 2000 1999 1998 1997 1996 1995
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <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 $10.48
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.34 0.38 0.38 0.21 0.19 0.26 0.29 0.30 0.28 0.21
Net realized and
unrealized gains (losses)
on investments (0.98) (0.81) 1.90 0.40 (1.21) (1.66) 3.50 1.63 2.13 1.48
------ ------ ------ ------ ------- ------- ------ ------ ------ ------
Total from investment
operations (0.64) (0.43) 2.28 0.61 (1.02) (1.40) 3.79 1.93 2.41 1.69
------ ------ ------ ------ ------ ------- ------ ------ ------ ------
LESS DISTRIBUTIONS TO
SHAREHOLDERS:
Dividends from net
investment income 0.35 0.38 0.38 0.20 0.19 0.26 0.29 0.30 0.28 0.22
Distributions from
capital gains 0.78 0.37 0.07 - 3.15 1.17 1.05 0.96 0.45 0.56
------ ------ ------ ------- ------- ------- ------- ------- ------- -------
Total distributions 1.13 0.75 0.45 0.20 3.34 1.43 1.34 1.26 0.73 0.78
------ ------ ------ ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE, END
OF PERIOD $9.29 $11.06 $12.24 $10.41 $9.00 $13.36 $16.19 $13.74 $13.07 $11.39
====== ======= ====== ====== ======= ======= ======= ======= ======= =======
TOTAL RETURN<F3> (6.18)% (3.73)% 22.34% 6.14% (9.29)% (9.20)% 28.89% 14.99% 21.52% 16.48%
SUPPLEMENTAL DATA AND
RATIOS:
Net assets, end of
period (000s) $12,010 $23,883 $25,692 $10,895 $87,537 $231,586 $312,073 $259,200 $224,169 $161,323
Ratio of net expenses
to average net assets<F4> 1.10% 1.01% 0.88% 1.16% 1.07% 1.03% 1.03% 1.04% 0.99% 1.03%
Ratio of net investment
income to average
net assets<F4> 3.16% 3.20% 3.37% 3.25% 1.47% 1.74% 1.89% 2.17% 2.32% 2.50%
Ratio of net expenses to
average net assets<F4><F5> 1.42% 1.32% 1.43% 3.04% 1.18% 1.15% 1.14% 1.10% 1.07% 1.62%
Ratio of net investment
income to average
net assets<F4><F5> 2.84% 2.89% 2.82% 1.37% 1.36% 1.62% 1.78% 2.11% 2.24% 1.91%
Portfolio turnover rate<F3> 31.43% 33.17% 10.46% 5.92% 23.29% 24.19% 15.87% 25.66% 26.60% 14.36%
<F1> Performance data for each Fund prior to April 1, 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.
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- ------------------------------------------------------------------------------
Financial Highlights<F1> (continued)
<TABLE>
<CAPTION>
GROWTH FUND SMALL CAP VALUE FUND
------------------------ -------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED JUNE 10,
MAR. 31, MAR. 31, MAR. 31, MAR. 31, MAR. 31, 1996<F2> TO
2000 1999 2000 1999 1998 MAR. 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.48 $10.00 $9.85 $12.94 $10.52 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.10 0.10 0.18 0.19 0.15
Net realized and unrealized gains (losses)
on investments 1.95 (0.53) 0.65 (2.73) 2.88 0.58
------ ------ ------ ------- ------- -------
Total from investment operations 1.96 (0.43) 0.75 (2.55) 3.07 0.73
------ ------ ------ ------- ------- -------
LESS DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income - 0.09 0.10 0.18 0.19 0.15
Distributions from capital gains - - 0.19 0.36 0.46 0.06
------ ------ ------ ------- ------- -------
Total distributions - 0.09 0.29 0.54 0.65 0.21
------ ------ ------ ------- ------- -------
NET ASSET VALUE, END OF PERIOD $11.44 $9.48 $10.31 $9.85 $12.94 $10.52
====== ====== ====== ======= ====== ======
TOTAL RETURN<F3> 20.72% (4.28)% 7.55% (20.18)% 29.60% 7.30%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $23,013 $14,318 $8,624 $13,096 $17,019 $7,173
Ratio of net expenses to average net assets<F4> 1.03% 1.21% 1.46% 1.21% 1.11% 1.34%
Ratio of net investment income to average
net assets<F4> 0.10% 1.15% 0.89% 1.55% 1.62% 2.15%
Ratio of net expenses to average net assets<F4><F5> 1.41% 1.63% 2.02% 1.71% 1.92% 3.76%
Ratio of net investment income to average
net assets<F4><F5> (0.28)% 0.73% 0.33% 1.05% 0.81% (0.27)%
Portfolio turnover rate<F3> 73.90% 71.80% 36.71% 26.20% 16.54% 7.45%
<F1> Performance data for each Fund prior to April 1, 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.
</TABLE>
See notes to financial statements.
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- -------------------------------------------------------------------------------
Notes to Financial Statements
March 31, 2000
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 March 31, 2000, 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>
Annual Report - FIRST OMAHA FUNDS
- ------------------------------------------------------------------------------
Notes to Financial Statements (continued)
March 31, 2000
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.
Accordingly, at March 31, 2000, reclassifications were recorded to increase
undistributed net investment income by $2,022, $2,022, $2,022, $937, $2,022,
$1,593 and $1,929; decrease undistributed net realized loss on investments by
$0, $0, $0, $0, $0, $1,419 and $0; and decrease paid-in capital in excess of par
by $2,022, $2,022, $2,022, $937, $2,022, $3,012 and $1,929 for 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.
(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, 2000, each of the U.S. Government Money Market Fund,
Short/Intermediate Fixed Income Fund, Growth Fund and Small Cap Value Fund had
federal income tax capital loss carryforwards of $25,604, $226,767, $732,430 and
$43,494, respectively. The $25,604 federal income tax loss carryforward for the
U.S. Government Money Market Fund expires as follows: $14,927 in 2003, $3,242 in
2006 and $7,435 in 2008. The $226,767 federal income tax loss carryforward for
the Short/Intermediate Fixed Income Fund expires as follows: $61,572 in 2003,
$109,194 in 2004 and $56,001 in 2005. The $732,430 federal income tax loss
carryforward for the Growth Fund expires as follows: $267,823 in 2007 and
$464,607 in 2008. The entire federal income tax carryforward for the Small Cap
Value Fund expires in 2008. It is management's intention to make no distribution
of any future realized capital gains until the federal income tax loss
carryforwards are exhausted.
As of March 31, 2000, the Fixed Income Fund, the Balanced Fund, the Equity Fund
and the Small Cap Value Fund had $698,969, $1,783,988, $6,369,485 and $404,650,
respectively, of post-October 1999 capital losses which are deferred until the
March 31, 2001 fiscal year for tax purposes.
(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
<PAGE>
First Omaha Funds - ANNUAL REPORT
- -------------------------------------------------------------------------------
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.
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 year ended March 31, 2000, advisory fees of $204,180, $9,766, $33,301,
$38,382, $42,595 and $37,817 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 year ended
March 31, 2000, custody fees of $5,859, $19,981, $5,757, $50,102, $5,111 and
$3,241 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 year ended March 31, 2000, administrative fees of $113,801, $8,023,
$27,358, $7,883, $68,600, $16,757 and $14,708 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/deal-
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- ------------------------------------------------------------------------------
Notes to Financial Statements (continued)
March 31, 2000
ers 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 March 31,
2000, 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 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 year ended March 31, 2000, fees of $17,686, $60,115,
$15,491, $143,335 and $10,112 were accrued under this agreement, respectively,
and fees of $8,837, $30,051, $7,732, $71,677 and $5,053 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 share-
holder 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 year ended March 31, 2000 were as
follows:
<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>
Shares sold 951,251,913 1,218,300 1,031,125 587,089 1,912,487 1,775,315 381,013
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued to holders in
reinvestment of dividends 206,720 94,396 484,273 182,260 3,826,799 622 23,392
- ---------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (777,297,839) (1,275,787) (4,365,668) (1,635,676) (13,349,968) (1,274,645) (898,176)
-------------- ------------ ----------- ----------- ----------- ----------- ----------
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 174,160,794 36,909 (2,850,270) 866,327 (7,610,682) 501,292 (493,771)
============= =========== =========== =========== ============ ========== =========
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
FIRST OMAHA FUNDS - Annual Report
- -------------------------------------------------------------------------------
Transactions in shares of the Funds for the year ended March 31, 1999 were as
follows:
<PAGE>
<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>
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>
7.INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the year
ended March 31, 2000 were as follows:
<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>
Purchases
U.S. Government $651,920,871 $4,501,956 $5,764,297 $977,590 - - -
Other - 2,236,282 6,075,550 4,773,886 $ 37,221,430 $ 15,668,689 $3,795,340
- ----------------------------------------------------------------------------------------------------------------------------------
Sales
U.S. Government 449,096,082 3,693,023 17,471,669 3,101,120 - - -
Other - 3,745,628 20,149,230 11,951,444 154,910,469 12,399,470 9,043,183
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report - FIRST OMAHA FUNDS
- -------------------------------------------------------------------------------
Notes to Financial Statements (continued)
March 31, 2000
As of March 31, 2000, gross unrealized appreciation and depreciation of
investments, based on cost for federal income tax purposes of $306,295,829,
$21,346,074, $50,056,682, $12,195,500, $81,403,876, $18,217,311 and $9,473,435,
were as follows:
<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>
Appreciation $- $36,785 $219,693 $783,171 $16,372,968 $4,631,682 $863,191
- -------------------------------------------------------------------------------------------------------------------------------
(Depreciation) - (753,749) (2,517,224) (1,008,202) (9,484,830) (687,814) (1,720,703)
------ ---------- ----------- ----------- ----------- ---------- -----------
- -------------------------------------------------------------------------------------------------------------------------------
Net appreciation
(depreciation) on investments $- $(716,964) $(2,297,531) $(225,031) $6,888,138 $3,943,868 $(857,512)
====== ========== =========== =========== =========== ========= ==========
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
For the year ended March 31, 2000, 38%, 100%, 100% and 100% of dividends paid
from net investment income, including short-term capital gains qualifies for the
dividends received deduction available to corporate shareholders of
the Balanced Fund, the Equity Fund, the Growth Fund and the Small Cap Value
Fund, respectively.
8.SUBSEQUENT EVENT
Subsequent to the Funds' year end, the Board of Directors authorized an
additional 200,000,000 shares of the U.S. Government Money Market Fund, for a
total of 500,000,000 authorized shares.
<PAGE>
Independent Auditor's Report
To the Shareholders and
Board of Directors of
First Omaha Funds, Inc.
We have audited the accompanying statements of assets and liabilities of First
Omaha Funds, Inc. (comprised, respectively, of 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;
collectively, the "Funds"), including the schedules of portfolio investments as
of March 31, 2000, and the related statements of operations and changes in net
assets and the financial highlights for each of the periods indicated herein.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds as of March 31, 2000, and the results of their operations, changes in
their net assets and the financial highlights for each of the periods indicated
herein, in conformity with accounting principles generally accepted in the
United States of America.
KPMG LLP
Omaha, Nebraska
April 14, 2000, except as to Note 8, which is as of May 2, 2000.
<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 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 219022
KANSAS CITY, MISSOURI 64141-6022
- ------------------------------------
FBO513496
