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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05309
First American Investment Funds, Inc.
(Exact name of registrant as specified in charter)
| | | |
800 Nicollet Mall, Minneapolis, MN
(Address of principal executive offices) | | 55402
(Zip code) |
Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-677-3863
Date of fiscal period end: June 30, 2009
Date of reporting period: June 30, 2009
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
Item 1. Report to Shareholders
Table of Contents
Mutual fund investing involves risk; principal loss is possible.
Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2009.
This report includes portfolio commentaries, comparative performance graphs and tables, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.
Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.
Sincerely,
| | | |
 | |  |
| | | |
Virginia L. Stringer
Chairperson of the Board
First American Investment Funds, Inc. | | Thomas S. Schreier, Jr.
President
First American Investment Funds, Inc. |
First American Funds 2009 Annual Report 1
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and presents the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund��s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2009 Annual Report
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Arizona Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Arizona state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Arizona Tax Free Fund (the “fund”), Class Y shares, returned 2.00% for the fiscal year ended June 30, 2009 (Class A shares returned 1.75%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Arizona Municipal Debt Funds Average, was -0.60%. The fund’s peer group performance is somewhat misleading as the dramatic underperformance of one particular fund and the negative returns posted by two other funds skewed the general positive return of all other funds in the category.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not affected by widening credit spreads. In terms of the high-grade yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve for the 12-month period. The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell substantially while longer maturity yields were only slightly lower. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. Although the fund does hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund posted respectable total return numbers relative to its peer group for the fiscal year due in part to lower weightings in insured bonds. The fund’s performance relative to the benchmark improved markedly during the first half of 2009, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration in late 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time (though not imminently), we focused most purchases in the 15- to 25-year range. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of mid-grade holdings at wider credit spreads – and relatively lower prices – than have been available for a number of years. The fund also sold positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 76 | .8% |
General Obligations3 | | | 13 | .7 |
Certificates of Participation3 | | | 5 | .7 |
| Short-Term Investment | | | 2 | .1 |
Other Assets and Liabilities, Net4 | | | 1 | .7 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 10 | .6% |
| AA | | | 17 | .4 |
| A | | | 46 | .9 |
| BBB | | | 20 | .7 |
| Non-Rated | | | 4 | .4 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 10.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
4 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/01/2000 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (2 | .55)% | | | 2.16 | % | | | 4.54 | % |
| |
| |
| Class C | | | 0 | .37% | | | 2.62 | % | | | 4.60 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 1 | .75% | | | 3.05 | % | | | 5.02 | % |
| |
| |
| Class C | | | 1 | .35% | | | 2.62 | % | | | 4.60 | % |
| |
| |
| Class Y | | | 2 | .00% | | | 3.31 | % | | | 5.28 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 5.50 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.64%, 2.04%, and 1.39%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 5
California Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and California state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American California Tax Free Fund (the “fund”), Class Y shares, returned 0.44% for the fiscal year ended June 30, 2009 (Class A shares returned 0.29%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper California Municipal Debt Funds Average, was -2.59%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
The perceived effects of the recession on California state and local finances caused most California bonds to underperform the broader municipal market for the year. By the end of the fiscal year, California was preparing to issue IOUs for miscellaneous lower-priority obligations, as it continued to grapple with structural budget deficits and short-term liquidity needs. Although a 2009-10 budget was eventually passed, the state remains handicapped by a combination of procedural requirements (such as two-thirds required legislative approval to pass budgets and raise taxes), relatively volatile tax revenues, and a history of steadily rising state expenditures.
How did market conditions and investment strategies affect the fund’s performance?
California’s embodiment as the epicenter of the national recession caused many in-state bonds to underperform the national market over the past year. Basic issues such as general obligation debt of issuers in the state, Treasury escrows, and utilities held up reasonably well. However, other issues like limited tax obligations, bonds backed by struggling insurers, and debt issued by the state of California itself generally underperformed higher-grade names. Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades such as AA-rated bonds without credit enhancements, which were not as severely affected by widening credit spreads. Shorter intermediate maturities reaped the benefits of being on the “sweet part” of the yield curve for the year as yields on shorter high-grade bonds fell while longer maturity yield changes provided mixed results. The higher weightings of short and intermediate bonds in the benchmark index help explain why the index outperformed most long funds, including the fund, this fiscal year.
What strategic moves were made by the fund and why?
The fund’s duration, or sensitivity to interest-rate movements, was generally slightly long to the benchmark duration over the past year. The fund briefly increased its duration further near year-end at the climax of the municipal market sell-off. We anticipate the yield curve will flatten over time (although not imminently), so we are reallocating weightings out of shorter maturity ranges and into longer positions. The fund is adding positions in mid- to higher-grade situations in California at wider credit spreads and relatively lower prices than have been available for some time. We feel these spreads will narrow when the local economy stabilizes and additional liquidity returns to the marketplace.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 67 | .3 | % |
General Obligations3 | | | 25 | .4 | |
Certificates of Participation3 | | | 5 | .0 | |
| Short-Term Investment | | | 1 | .2 | |
Other Assets and Liabilities, Net4 | | | 1 | .1 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | | |
| AAA | | | 2 | .7% | |
| AA | | | 26 | .5 | |
| A | | | 42 | .2 | |
| BBB | | | 25 | .8 | |
| BB | | | 0 | .7 | |
| Non-Rated | | | 2 | .1 | |
| | | | | | |
| | | | 100 | .0% | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 2.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
6 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/01/2000 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (4 | .01)% | | | 2.21 | % | | | 4.56 | % |
| |
| |
| Class C | | | (1 | .17)% | | | 2.65 | % | | | 4.62 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 0 | .29% | | | 3.10 | % | | | 5.04 | % |
| |
| |
| Class C | | | (0 | .21)% | | | 2.65 | % | | | 4.62 | % |
| |
| |
| Class Y | | | 0 | .44% | | | 3.32 | % | | | 5.28 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 5.50 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.47%, 1.86%, and 1.21%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.65%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gain distribution, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 7
Colorado Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Colorado Tax Free Fund (the “fund”), Class Y shares, returned -0.85% for the fiscal year ended June 30, 2009 (Class A shares returned -1.20%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Colorado Municipal Debt Funds Average, was -0.54%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not as affected by widening credit spreads. However, the fund does hold meaningful positions in mid-grade securities, which have generally underperformed the broader municipal market the past two years, and have detracted from overall fund performance during this fiscal year. The fund’s performance relative to the benchmark improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk.
In terms of the yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter immediate maturities fell substantially, while longer maturity high-grade yields were more of a mixed bag. Yields generally fell enough in this shorter intermediate range to produce the best total returns on the curve for the year. The higher weightings of short and intermediate bonds in the benchmark index (along with a higher credit quality mix) help explain why the index outperformed the fund, along with most long funds, during the fiscal year.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration most of the past year. We anticipate the yield curve will flatten over time (though not imminently), so we are reallocating weightings out of shorter maturity ranges into longer positions. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of mid-grade (and even some higher-grade) holdings at wider credit spreads – and relatively lower prices – than have been available for a number of years. We feel many of these spreads will narrow when the economy recovers and additional liquidity returns to the marketplace. The fund also sold a number of positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 75 | .1 | % |
General Obligations3 | | | 17 | .3 | |
Certificates of Participation3 | | | 6 | .6 | |
| Short-Term Investment | | | 0 | .6 | |
Other Assets and Liabilities, Net4 | | | 0 | .4 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | | |
| AAA | | | 1 | .4 | % |
| AA | | | 40 | .8 | |
| A | | | 21 | .9 | |
| BBB | | | 29 | .9 | |
| Non-Rated | | | 6 | .0 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 13.2% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
8 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/01/2000 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (5.43 | )% | | | 1.61% | | | | 4.35% | |
| |
| |
| Class C | | | (2.63 | )% | | | 2.07% | | | | 4.41% | |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | (1.20 | )% | | | 2.50% | | | | 4.83% | |
| |
| |
| Class C | | | (1.70 | )% | | | 2.07% | | | | 4.41% | |
| |
| |
| Class Y | | | (0.85 | )% | | | 2.75% | | | | 5.10% | |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3.77 | % | | | 4.14% | | | | 5.50% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.81%, 2.21%, and 1.56%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 9
Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from federal income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 4.05% for the fiscal year ended June 30, 2009 (Class A shares returned 4.09%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital (formerly Lehman) 7-Year Municipal Bond Index*, returned 6.94%. Performance for the fund’s peer group, the Lipper Intermediate Municipal Debt Funds Average, was 3.12%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
In terms of the high-grade yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter intermediate maturities fell substantially while longer maturity yields were only slightly lower. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The concentrated maturity weighting of the benchmark index in this strong-performing part of the curve (as well as its higher overall credit quality) helps explain why, during the fiscal year, the benchmark outperformed most intermediate funds with broader maturity ranges, including the fund.
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not affected by widening credit spreads. The fund’s relative performance improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration in late 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time (though not imminently), we focused many purchases in the 10- to 20-plus-year range and reallocated out of shorter maturity ranges. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of mid-grade situations at wider credit spreads – and relatively lower prices – than have been available for a number of years. We feel many of these spreads will narrow when the economy recovers and additional liquidity returns to the marketplace. The fund also sold a number of positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 65.4 | % |
General Obligations3 | | | 29.2 | |
Certificates of Participation3 | | | 2.1 | |
| Short-Term Investments | | | 3.6 | |
Other Assets and Liabilities, Net4 | | | (0.3 | ) |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | | |
| AAA | | | 8 | .1 | % |
| AA | | | 34 | .4 | |
| A | | | 31 | .2 | |
| BBB | | | 17 | .2 | |
| BB | | | 0 | .3 | |
| Non-Rated | | | 8 | .8 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 14.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
10 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 1 | .77% | | | 3.06 | % | | | 4.11 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 4 | .09% | | | 3.52 | % | | | 4.34 | % |
| |
| |
| Class Y | | | 4 | .05% | | | 3.63 | % | | | 4.44 | % |
| |
| |
Barclays Capital 7-Year Municipal Bond Index3 | | | 6 | .94% | | | 4.53 | % | | | 5.21 | % |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index4 | | | 5 | .87% | | | 4.33 | % | | | 5.00 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.02% and 0.77%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.75% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,5 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital 7-Year Municipal Bond Index3 and the Barclays Capital 1-15 Year Blend Municipal Bond Index4.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| | A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. |
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
| |
| 4 | An unmanaged index comprised of fixed-rate, investment-grade tax exempt bonds with remaining maturities between 1 and 17 years. |
| |
| 5 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 11
Minnesota Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Minnesota Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 3.71% for the fiscal year ended June 30, 2009 (Class A shares returned 3.53%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital (formerly Lehman) 7-Year Municipal Bond Index*, returned 6.94%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 4.03%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
In terms of the high-grade yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter intermediate maturities fell substantially while longer maturity yields were only slightly lower. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The concentrated maturity weighting of the benchmark index in this strong-performing part of the curve (as well as its higher overall credit quality) helps explain why, during the fiscal year, the benchmark outperformed most intermediate funds with broader maturity ranges, including the fund.
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not as affected by widening credit spreads. However, the fund does hold meaningful positions in mid-grade securities, which have generally underperformed the broader municipal market the past two years, and have detracted from the fund’s performance. The fund’s relative performance improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration in late 2008. The fund increased its relative duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. We anticipate the yield curve will flatten over time (though not imminently), so we are attempting to reallocate weightings out of shorter maturity ranges into longer positions when possible. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of mid-grade situations at wider credit spreads – and relatively lower prices – than have been available for a number of years. We feel many of these spreads will narrow when the economy recovers and additional liquidity returns to the marketplace. The fund also sold a number of positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 66.5 | % |
General Obligations3 | | | 26.2 | |
Certificates of Participation3 | | | 1.5 | |
| Short-Term Investments | | | 4.8 | |
Other Assets and Liabilities, Net4 | | | 1.0 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 7.7 | % |
| AA | | | 34.2 | |
| A | | | 29.1 | |
| BBB | | | 17.3 | |
| BB | | | 2.5 | |
| Non-Rated | | | 9.2 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 6.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
12 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 1.25% | | | | 2.90% | | | | 3.92 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 3.53% | | | | 3.37% | | | | 4.16 | % |
| |
| |
| Class Y | | | 3.71% | | | | 3.50% | | | | 4.26 | % |
| |
| |
Barclays Capital 7-Year Municipal Bond Index3 | | | 6.94% | | | | 4.53% | | | | 5.21 | % |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index4 | | | 5.87% | | | | 4.33% | | | | 5.00% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.08% and 0.83%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.75% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,5 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital 7-Year Municipal Bond Index3 and the Barclays Capital 1-15 Year Blend Municipal Bond Index4.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
| |
| 4 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between 1 and 17 years. |
| |
| 5 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 13
Minnesota Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Minnesota Tax Free Fund (the “fund”), Class Y shares, returned 0.23% for the fiscal year ended June 30, 2009 (Class A shares returned 0.07%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Minnesota Municipal Debt Funds Objective Average, was 1.19%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
In a near replay of the previous reporting period, the first half of the fund’s year was a difficult one as lower-quality positions that had benefited performance in previous periods generally had negative impacts, dragging down the fund’s performance for the entire year. A steepening municipal yield curve and widening credit spreads (differences in yield between AAA-rated and lower-rated bonds) caused the fund’s positions in longer maturities, BBB-rated and nonrated bonds, and selected healthcare, housing and education issues, to drag down performance relative to its peer group. Smaller positions in short to intermediate maturities, higher-quality general obligations (bonds backed directly by the taxing authority of the municipality), and pre-refunded bonds (bonds called by municipalities and backed by Treasuries) performed comparatively well. The fund’s relative performance improved markedly during the first half of 2009, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market’s focus shifted toward the insurer debacle. However, this improvement could not offset the negatives noted above and their impact on the full year’s performance.
What strategic moves were made by the fund and why?
As the yield curve steepened, we reduced positions in better-performing one- to three-year maturities and selectively added in the nine-, 20-, and 25- to 30-year areas where yields represented better relative value. In addition, the fund increased its duration (or sensitivity to interest-rate movements) over the period, as municipal yields remained attractive relative to comparable-maturity Treasuries and the slope of the municipal yield curve attained historical steepness. The fund reduced emphasis on high-quality issues (AAA- and AA-rated) and added to mid-quality (mainly A-rated) as the yields of mid-quality bonds compared to higher-quality bonds appeared to be peaking near new historical highs. Attractive spreads caused by soaring mid-quality bond yields also led us to reduce higher-quality pre-refunded bonds and redeploy cash in a variety of other sectors.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 86.4 | % |
General Obligations3 | | | 10.4 | |
Certificate of Participation3 | | | 1.4 | |
| Short-Term Investments | | | 0.8 | |
Other Assets and Liabilities, Net4 | | | 1.0 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 15.4 | % |
| AA | | | 19.9 | |
| A | | | 36.5 | |
| BBB | | | 5.6 | |
| BB | | | 0.9 | |
| Non-Rated | | | 21.7 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 8.5% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
14 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (4 | .22)% | | | 1.79 | % | | | 3.40 | % |
| |
| |
| Class C | | | (1 | .37)% | | | 2.25 | % | | | 3.42 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 0 | .07% | | | 2.69 | % | | | 3.86 | % |
| |
| |
| Class C | | | (0 | .42)% | | | 2.25 | % | | | 3.42 | % |
| |
| |
| Class Y | | | 0 | .23% | | | 2.93 | % | | | 4.10 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 5.00 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
| |
| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.11%, 1.51%, and 0.86%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.85%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 15
Missouri Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Missouri state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Missouri Tax Free Fund (the “fund”), Class Y shares, returned 2.36% for the fiscal year ended June 30, 2009 (Class A shares returned 2.01%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Missouri Municipal Debt Funds Average, was 0.30%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not as affected by widening credit spreads. However, the fund does hold meaningful positions in midgrade securities, which have generally underperformed the broader municipal market the past two years. Performance on these holdings improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk.
In terms of the yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell substantially while longer maturity high-grade yields provided mixed results. Yields generally fell enough in the short intermediate range to produce the best total returns on the curve for the year. The higher weightings of short and intermediate bonds in the benchmark index (along with a higher credit quality mix) help explain why, during the fiscal year, the benchmark outperformed most long funds, including the fund.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was slightly long to the benchmark duration during most of 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. We anticipate the yield curve will flatten over time (though not imminently), so we are reallocating weightings out of shorter maturity ranges and into longer positions. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of midgrade (and even some higher-grade) holdings at wider credit spreads – and relatively lower prices – than have been available for a number of years. We feel many of these spreads will narrow when the economy recovers and additional liquidity returns to the marketplace. The fund also sold a number of positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 83 | .1% |
General Obligations3 | | | 7 | .5 |
Certificates of Participation3 | | | 7 | .3 |
| Short-Term Investment | | | 1 | .9 |
Other Assets and Liabilities, Net4 | | | 0 | .2 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 17 | .4% |
| AA | | | 37 | .4 |
| A | | | 18 | .4 |
| BBB | | | 18 | .8 |
| Non-Rated | | | 8 | .0 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 5.9% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
16 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (2 | .36)% | | | 1.98 | % | | | 3.45 | % | | | — | |
| |
| |
| Class C | | | 0 | .73% | | | 2.47 | % | | | — | | | | 2.92 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 2 | .01% | | | 2.87 | % | | | 3.90 | % | | | — | |
| |
| |
| Class C | | | 1 | .70% | | | 2.47 | % | | | — | | | | 2.92 | % |
| |
| |
| Class Y | | | 2 | .36% | | | 3.14 | % | | | 4.19 | % | | | — | |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 5.00 | % | | | 4.41 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
| |
| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.10%, 1.50%, and 0.85%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.85%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 06/30/1999 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gain distribution, if any, will be subject to tax.
On September 24, 2001, the Missouri Tax Free Fund became the successor by merger to the Firstar Missouri Tax-Exempt Bond Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Missouri Tax-Exempt Bond Fund. The Firstar Missouri Tax-Exempt Bond Fund was organized on December 11, 2000.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 17
Nebraska Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Nebraska state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Nebraska Tax Free Fund (the “fund”), Class Y shares, returned 2.48% for the fiscal year ended June 30, 2009. (Class A shares returned 2.33%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclay’s Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Average, was 1.07%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not as affected by widening credit spreads. However, the fund does hold meaningful positions in midgrade securities, which have generally underperformed the broader municipal market the past two years. Performance on these holdings improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk.
In terms of the yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell substantially while longer maturity high-grade yields provided mixed results. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The higher weightings of short and intermediate bonds in the benchmark index (along with a higher credit quality mix) help explain why, during the fiscal year, the benchmark outperformed most long funds, including the fund.
What strategic moves were made by the fund and why?
The fund’s duration, or sensitivity to interest-rate movements, was slightly long to the benchmark duration for most of 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. Given the steepness of the yield curve, most of the new purchases during the fiscal year were concentrated in the long end of the yield curve. Many of these securities also came at wider credit spreads – and relatively lower prices – than have been available for a number of years. We feel credit spreads on many of these holdings will tighten as the economy recovers and additional liquidity returns to the marketplace. The fund was also opportunistic in selling out of some holdings where we believed projected credit stress was not yet adequately reflected in the current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 76 | .2% |
General Obligations3 | | | 22 | .1 |
| Short-Term Investment | | | 0 | .9 |
Other Assets and Liabilities, Net4 | | | 0 | .8 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 2 | .9% |
| AA | | | 49 | .7 |
| A | | | 29 | .9 |
| BBB | | | 11 | .4 |
| Non-Rated | | | 6 | .1 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 2.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
18 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/28/2001 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (2 | .05)% | | | 2.41 | % | | | 3.52 | % |
| |
| |
| Class C | | | 0 | .86% | | | 2.90 | % | | | 3.59 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 2 | .33% | | | 3.30 | % | | | 4.06 | % |
| |
| |
| Class C | | | 1 | .84% | | | 2.90 | % | | | 3.59 | % |
| |
| |
| Class Y | | | 2 | .48% | | | 3.54 | % | | | 4.30 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 4.62 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.47%, 1.87%, and 1.22%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/28/2001 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 19
Ohio Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Ohio state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Ohio Tax Free Fund (the “fund”), Class Y shares, returned 3.36% for the fiscal year ended June 30, 2009 (Class A shares returned 2.99%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper Ohio Municipal Debt Funds Average, was 1.05%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not affected by widening credit spreads. In terms of the high-grade yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter intermediate maturities fell substantially while longer maturity yields were only slightly lower. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The higher weightings of short and intermediate bonds in the benchmark index (along with a higher credit quality mix) help explain why, during the fiscal year, the benchmark outperformed most long funds, including the fund.
Although the fund does hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund posted respectable total return numbers relative to its peer group for the fiscal year due in part to lower weightings in insured bonds. The fund’s relative performance improved markedly during the first half of 2009, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing as the market’s focus shifted toward the insurer debacle.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration in late 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time (though not imminently), we focused many purchases in the 10- to 20-plus-year range and reallocated out of shorter maturity ranges. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of midgrade situations at wider credit spreads – and relatively lower prices – than have been available for a number of years. The fund also sold a number of positions where we believed projected credit stress was not adequately reflected in current market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 64 | .6% |
General Obligations3 | | | 32 | .3 |
| Short-Term Investment | | | 4 | .8 |
Other Assets and Liabilities, Net4 | | | (1 | .7) |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 9 | .9% |
| AA | | | 41 | .6 |
| A | | | 32 | .3 |
| BBB | | | 10 | .7 |
| Non-Rated | | | 5 | .5 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 8.7% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
20 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 4/30/2002 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (1 | .34)% | | | 2.52 | % | | | 3.23 | % |
| |
| |
| Class C | | | 1 | .54% | | | 2.95 | % | | | 3.28 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 2 | .99% | | | 3.41 | % | | | 3.85 | % |
| |
| |
| Class C | | | 2 | .52% | | | 2.95 | % | | | 3.28 | % |
| |
| |
| Class Y | | | 3 | .36% | | | 3.64 | % | | | 4.11 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 4.43 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.40%, 1.79%, and 1.15%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 4/30/2002 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 21
Oregon Intermediate Tax Free Fund
Investment Objective: providing current income that is exempt from both federal income tax and Oregon state income tax to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Oregon Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 4.92% for the fiscal year ended June 30, 2009 (Class A shares returned 4.77%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital (formerly Lehman) 7-Year Municipal Bond Index*, returned 6.94%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 4.03%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally the natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not affected by widening credit spreads. In terms of the high-grade yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal year. The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell substantially while longer maturity yields were only slightly lower. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The concentrated maturity weighting of the benchmark index in this strong-performing part of the curve (as well as its higher overall credit quality) helps explain why, during the fiscal year, the benchmark outperformed most intermediate funds with broader maturity ranges, including the fund.
Although the fund does hold meaningful positions in mid to lower-grade securities, which generally underperformed for the year, the fund posted respectable total return numbers relative to its peer group for the fiscal year due in part to lower weightings in insured bonds. The fund’s relative performance improved markedly during the first half of 2009, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing. The entire year, while tumultuous, produced many relative value opportunities from both a trading and credit perspective that helped bolster the fund’s performance.
What strategic moves were made by the fund and why?
Other than an occasional tactical adjustment, the fund’s duration, or sensitivity to interest-rate movements, was close to neutral to the benchmark duration in late 2008. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. Since we anticipate the shape of the municipal yield curve to flatten over time (though not imminently), we focused many purchases in the 10- to 15-plus-year range and reallocated out of shorter maturity ranges. Given the general concern over the economy throughout the past year, the fund was able to add positions in a variety of midgrade holdings at wider credit spreads – and relatively lower prices – than have been available for a number of years.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
General Obligations3 | | | 49 | .9 | % |
Revenue Bonds3 | | | 42 | .7 | |
Certificates of Participation3 | | | 3 | .3 | |
| Short-Term Investment | | | 3 | .3 | |
Other Assets and Liabilities, Net4 | | | 0 | .8 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | | |
| AAA | | | 3 | .1 | % |
| AA | | | 62 | .5 | |
| A | | | 17 | .6 | |
| BBB | | | 10 | .7 | |
| Non-Rated | | | 6 | .1 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 10.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
22 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 2 | .44% | | | 2.82 | % | | | 3.86 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 4 | .77% | | | 3.29 | % | | | 4.11 | % |
| |
| |
| Class Y | | | 4 | .92% | | | 3.44 | % | | | 4.22 | % |
| |
| |
Barclays Capital 7-Year Municipal Bond Index3 | | | 6 | .94% | | | 4.53 | % | | | 5.21 | % |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index4 | | | 5 | .87% | | | 4.33 | % | | | 5.00 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
| |
| | Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.12% and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.85% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,5 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital 7-Year Municipal Bond Index3 and the Barclays Capital 1-15 Year Blend Municipal Bond Index4.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gain distribution, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
| |
| 4 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between 1 and 17 years. |
| |
| 5 | Performance for Class Y shares is not presented. Performance of this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 23
Short Tax Free Fund
Investment Objective: providing current income that is exempt from federal income tax, to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Short Tax Free Fund (the “fund”), Class Y shares, returned 2.32% for the fiscal year ended June 30, 2009 (Class A shares returned 2.17% for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) 3-Year Municipal Bond Index*, returned 6.72%. Performance for the fund’s peer group, the Lipper Short Municipal Debt Funds Average, was 1.85%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic cross-over buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
Reflecting the trends of the broader market, the best-performing bonds in the fund were generally natural high-grades (AAA- and AA-rated bonds without credit enhancements), which were not as affected by widening credit spreads. However, the fund does hold meaningful positions in midgrade securities, which have generally underperformed the broader municipal market the past two years. Performance on these holdings improved during the first half of 2009, when credit spreads – and the performance of lower-rated securities – stabilized and narrowed somewhat as the market returned to taking a more balanced look at credit risk.
In terms of the yield curve, shorter intermediate maturities reaped the benefits of being on the “sweet part” of the curve during the fiscal period. The municipal yield curve steepened over the past 12 months as yields on shorter maturities fell substantially while longer maturity high-grade yields provided mixed results. Yields generally fell enough in this short intermediate range to produce the best total returns on the curve for the year. The fund tends to be more diversified than the index with regard to yield curve positioning, which explains why it underperformed the benchmark during the fiscal year.
What strategic moves were made by the fund and why?
The fund’s duration, or sensitivity to interest-rate movements, has been long to the fund’s benchmark during 2009. The fund increased its duration near year-end as the municipal market sold off and yields moved to historically high ratios to comparable-maturity Treasuries. As the yield curve steepened, the fund also saw value in adding exposure to the intermediate part of the yield curve. We anticipate the yield curve will flatten over time, though not imminently. Given the interest rates, the fund prefers to hold mostly midgrade positions – not high grades – in the short end of the curve.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 62 | .9 | % |
General Obligations3 | | | 16 | .0 | |
| Short-Term Investments | | | 12 | .7 | |
Certificates of Participation3 | | | 6 | .8 | |
Other Assets and Liabilities, Net4 | | | 1 | .6 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | | |
| AAA | | | 20 | .3 | % |
| AA | | | 34 | .8 | |
| A | | | 30 | .5 | |
| BBB | | | 8 | .8 | |
| BB | | | 0 | .7 | |
| Non-Rated | | | 4 | .9 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
| |
| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 2.2% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
| |
| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
24 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10/25/2002 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (0 | .18)% | | | 2.08 | % | | | 2.14 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 2 | .17% | | | 2.55 | % | | | 2.49 | % |
| |
| |
| Class Y | | | 2 | .32% | | | 2.71 | % | | | 2.64 | % |
| |
| |
Barclays Capital 3-Year Municipal Bond Index3 | | | 6 | .72% | | | 3.90 | % | | | 3.62 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
| |
| | Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
| |
| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.12% and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2009) as compared to the Barclays Capital 3-Year Municipal Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
| |
| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between two and four years. |
| |
| 4 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 25
Tax Free Fund
Investment Objective: providing maximum current income that is exempt from federal income tax to the extent consistent with the prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Tax Free Fund (the “fund”), Class Y shares, returned -0.75% for the fiscal year ended June 30, 2009 (Class A shares returned -0.80%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Municipal Bond Index*, returned 3.77%. Performance for the fund’s peer group, the Lipper General Municipal Debt Funds Average, was -0.50%.
What were the general municipal market conditions during the fiscal year?
The municipal market worked its way through the recessionary environment, stumbling through 2008 before regaining its footing in 2009 and producing solid returns after recovering from its oversold condition at year-end. In the final months of 2008, the market struggled under the selling pressure from leveraged arbitrageurs hurt by the breakdown of their hedging strategies. Credit spreads (i.e., the differences in yield between higher- and lower-quality bonds) also continued to widen through year-end over fears as to how lower-quality issuers would fare in a slowing economy. High-yield funds, hit hard by both tax-loss selling and flight-to-quality liquidations, were also prominent sellers. The shrinking broker-dealer community, beset with balance sheet troubles of its own, also significantly reduced its support of the secondary market. This combination of heavy selling pressure and reduced buying power drove municipal yields higher on both an absolute and relative basis. Ratios to comparable-maturity Treasury bonds skyrocketed to far over 100% late in 2008 as Treasuries became the investment vehicle of choice.
After year-end, market dynamics improved tremendously. The leveraged accounts, high-yield funds, and tax-loss sellers seemed to accomplish much of their unwinding (both forced and voluntary) by year-end. Some opportunistic crossover buying and steady retail demand (with heavy mutual fund inflows) all helped spark a reversal in the first half of 2009. Municipals also got a boost from the relatively unheralded Build America Bond provision in the federal stimulus bill. Enacted in February, the bill provides municipalities who issue taxable debt a direct subsidy equal to 35% of the interest on such debt. This served to divert some new issue supply away from tax-exempts into the taxable market. Ratios to Treasuries returned to somewhat more normalized territory after the end of 2008. Credit spreads also narrowed somewhat, although – not surprisingly in this environment – still remain much wider than historical norms. After a roller-coaster ride, the high-grade municipal yield curve finished the fiscal year more steeply sloped, with shorter and longer maturity yields lower than a year ago.
How did market conditions and investment strategies affect the fund’s performance?
In a near replay of the previous reporting period, the first half of the fund’s year was a difficult one as lower-quality positions that had benefited performance in previous periods generally had negative impacts, dragging down the fund’s performance for the entire year. A steepening municipal yield curve and widening credit spreads (differences in yield between AAA-rated and lower-rated bonds) caused the fund’s positions in longer maturities, BBB-rated and nonrated bonds, and selected healthcare, corporate-backed and utility issues, to drag down performance relative to its peer group. Smaller positions in short to intermediate maturities, higher-quality general obligations (bonds backed directly by the taxing authority of the municipality), and pre-refunded bonds (bonds called by municipalities and backed by Treasuries) performed comparatively well. The fund’s relative performance improved markedly during the first half of 2009, when credit spreads – and the performance of lower-rated securities – showed signs of stabilizing. However, this improvement could not offset the negatives noted above and their impact on the full year’s performance.
What strategic moves were made by the fund and why?
As the yield curve steepened, we reduced positions in better-performing two- to eight-year maturities and added in the 20- to 30-year ranges where yields represented better relative value. In addition, the fund increased its duration (or sensitivity to interest-rate movements) over the period, as municipal yields remained attractive relative to comparable-maturity Treasuries and the slope of the municipal yield curve attained historical steepness. The fund maintained its emphasis on mid-quality issues as their yields compared to higher quality bonds appeared to be peaking near new historical highs. Attractive spreads caused by soaring mid-quality bond yields led us to reduce higher-quality pre-refunded bonds and general obligation bonds, and to redeploy cash in a variety of revenue sectors.
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| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 87.9 | % |
General Obligations3 | | | 8.8 | |
Certificates of Participation3 | | | 0.9 | |
| Short-Term Investments | | | 3.3 | |
Other Assets and Liabilities, Net4 | | | (0.9 | ) |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20092 (% of market value)
| | | | | |
| AAA | | | 2.0 | % |
| AA | | | 23.2 | |
| A | | | 31.2 | |
| BBB | | | 27.5 | |
| BB | | | 1.2 | |
| Non-Rated | | | 14.9 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
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| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
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| 2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless different ratings are provided by all three agencies, in which case the middle rating is used. |
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| 3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2009, 6.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
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| 4 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
26 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (5 | .06)% | | | 1.64 | % | | | 3.60 | % | | | — | |
| |
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| Class C | | | (2 | .24)% | | | 2.04 | % | | | — | | | | 2.93 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | (0 | .80)% | | | 2.51 | % | | | 4.06 | % | | | — | |
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| Class C | | | (1 | .30)% | | | 2.04 | % | | | — | | | | 2.93 | % |
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| Class Y | | | (0 | .75)% | | | 2.70 | % | | | 4.24 | % | | | — | |
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Barclays Capital Municipal Bond Index3 | | | 3 | .77% | | | 4.14 | % | | | 5.00 | % | | | 4.41 | % |
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The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
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| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.02%, 1.43%, and 0.78%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, and Class Y shares do not exceed 0.75%, 1.35%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital Municipal Bond Index3.
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| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gain distribution, if any, will be subject to tax.
On September 24, 2001, the First American Tax Free Fund merged with the Firstar National Municipal Bond Fund. Performance history prior to September 24, 2001, represents that of the Firstar National Municipal Bond Fund.
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| 3 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
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| 4 | Performance for Class C and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 27
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees; distribution and/or service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2009, to June 30, 2009.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Arizona Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,102.40 | | | $ | 3.91 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
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| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,099.30 | | | $ | 5.99 | |
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| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
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| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,102.60 | | | $ | 2.61 | |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
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| | | | | | | | | | | | | |
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| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 10.24%, 9.93%, and 10.26% for Class A, Class C, and Class Y, respectively. |
28 First American Funds 2009 Annual Report
California Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,083.80 | | | $ | 3.36 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.57 | | | $ | 3.26 | |
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| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,081.10 | | | $ | 5.93 | |
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| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
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| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,084.60 | | | $ | 2.58 | |
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| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
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| | | | | | | | | | | | | |
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| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.65%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 8.38%, 8.11%, and 8.46% for Class A, Class C, and Class Y, respectively. |
Colorado Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,093.00 | | | $ | 3.89 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
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Class C Actual4 | | $ | 1,000.00 | | | $ | 1,090.00 | | | $ | 5.96 | |
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| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
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| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,094.10 | | | $ | 2.60 | |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
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| 3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 4 | Based on the actual returns for the six-month period ended June 30, 2009 of 9.30%, 9.00%, and 9.41% for Class A, Class C, and Class Y, respectively. |
Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,058.30 | | | $ | 3.83 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
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Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,057.70 | | | $ | 3.57 | |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
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| 5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 6 | Based on the actual returns for the six-month period ended June 30, 2009 of 5.83% and 5.77% for Class A and Class Y, respectively. |
Minnesota Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period7 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
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Class A Actual8 | | $ | 1,000.00 | | | $ | 1,069.00 | | | $ | 3.85 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
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Class Y Actual8 | | $ | 1,000.00 | | | $ | 1,069.60 | | | $ | 3.59 | |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
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| 7 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 8 | Based on the actual returns for the six-month period ended June 30, 2009 of 6.90% and 6.96% for Class A and Class Y, respectively. |
First American Funds 2009 Annual Report 29
Expense Examples
Minnesota Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,101.00 | | | $ | 4.43 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
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Class C Actual2 | | $ | 1,000.00 | | | $ | 1,098.70 | | | $ | 7.02 | |
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| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
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Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,101.90 | | | $ | 3.65 | |
| |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
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| | | | | | | | | | | | | |
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| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 10.10%, 9.87%, and 10.19% for Class A, Class C, and Class Y, respectively. |
Missouri Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,086.10 | | | $ | 4.91 | |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.08 | | | $ | 4.76 | |
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| | | | | | | | | | | | | |
Class C Actual4 | | $ | 1,000.00 | | | $ | 1,084.20 | | | $ | 6.98 | |
| |
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| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
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| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,088.40 | | | $ | 3.62 | |
| |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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| 3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
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| 4 | Based on the actual returns for the six-month period ended June 30, 2009 of 8.61%, 8.42%, and 8.84% for Class A, Class C, and Class Y, respectively. |
Nebraska Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,099.50 | | | $ | 3.90 | |
| |
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| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual6 | | $ | 1,000.00 | | | $ | 1,097.00 | | | $ | 5.98 | |
| |
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| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
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| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,099.70 | | | $ | 2.60 | |
| |
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| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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| 5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 6 | Based on the actual returns for the six-month period ended June 30, 2009 of 9.95%, 9.70%, and 9.97% for Class A, Class C, and Class Y, respectively. |
30 First American Funds 2009 Annual Report
Ohio Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,084.00 | | | $ | 3.88 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
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| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,082.00 | | | $ | 5.94 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,086.50 | | | $ | 2.59 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 8.40%, 8.20%, and 8.65% for Class A, Class C, and Class Y, respectively. |
Oregon Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,054.80 | | | $ | 4.33 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,054.50 | | | $ | 3.57 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 4 | Based on the actual returns for the six-month period ended June 30, 2009 of 5.48% and 5.45% for Class A and Class Y, respectively. |
Short Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,039.10 | | | $ | 3.79 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,039.80 | | | $ | 2.98 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.87 | | | $ | 2.96 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.59% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 6 | Based on the actual returns for the six-month period ended June 30, 2009 of 3.91% and 3.98% for Class A and Class Y, respectively. |
Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period7 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual8 | | $ | 1,000.00 | | | $ | 1,151.20 | | | $ | 4.00 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual8 | | $ | 1,000.00 | | | $ | 1,149.90 | | | $ | 7.20 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual8 | | $ | 1,000.00 | | | $ | 1.151.30 | | | $ | 3.73 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 7 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 8 | Based on the actual returns for the six-month period ended June 30, 2009 of 15.12%, 14.99%, and 15.13% for Class A, Class C, and Class Y, respectively. |
First American Funds 2009 Annual Report 31
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments of the Arizona Tax Free, California Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free, Oregon Intermediate Tax Free, Short Tax Free, and Tax Free Funds (each a series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2009, the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designating audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2009 by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights as referred to above present fairly, in all material respects, the financial position of each of the funds listed above of First American Investment Funds, Inc. at June 30, 2009, the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Minneapolis, Minnesota
August 21, 2009
32 First American Funds 2009 Annual Report
| | | | | | | | | |
| Arizona Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 96.2% |
| Revenue Bonds – 76.8% |
| Continuing Care Retirement Communities – 8.4% |
Arizona Health Facilities Authority, The Terraces Project Series A Pre-refunded 11/15/2013 @ 101 | | | | | | | | |
7.500%, 11/15/2023 ◊ | | $ | 200 | | | $ | 238 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 400 | | | | 244 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 100 | | | | 80 | |
| Maricopa County Industrial Development Authority, Senior Living Health Care, Immanuel Care, Series A (GNMA) | | | | | | | | |
| 4.850%, 08/20/2026 | | | 750 | | | | 700 | |
| 5.000%, 08/20/2035 | | | 500 | | | | 455 | |
| Tempe Industrial Development Authority, Friendship Village Project, Series A | | | | | | | | |
| 5.375%, 12/01/2013 | | | 157 | | | | 147 | |
| | | | | | | | | |
| | | | | | | | 1,864 | |
| | | | | | | | | |
| Education – 6.2% |
| Anderson, Indiana, Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2032 | | | 425 | | | | 300 | |
| Glendale Industrial Development Authority, Midwestern University | | | | | | | | |
| 5.250%, 05/15/2014 | | | 140 | | | | 148 | |
| 5.000%, 05/15/2031 | | | 500 | | | | 440 | |
Series A, Pre-refunded 05/15/2011 @ 101 | | | | | | | | |
5.750%, 05/15/2021 ◊ | | | 250 | | | | 273 | |
| Pima County Industrial Development Authority, American Charter Schools Foundation, | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 07/01/2026 | | | 275 | | | | 211 | |
| | | | | | | | | |
| | | | | | | | 1,372 | |
| | | | | | | | | |
| Healthcare – 24.3% |
| Arizona Health Facilities Authority, Banner Health, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 01/01/2021 | | | 280 | | | | 270 | |
| Series D | | | | | | | | |
| 5.375%, 01/01/2032 | | | 150 | | | | 144 | |
| Arizona Health Facilities Authority, Blood Systems Incorporated | | | | | | | | |
| 4.750%, 04/01/2025 | | | 300 | | | | 270 | |
Arizona Health Facilities Authority, John C. Lincoln Health Network Pre-refunded 12/01/2012 @ 101 | | | | | | | | |
5.750%, 12/01/2032 ◊ | | | 150 | | | | 172 | |
| Glendale Industrial Development Authority | | | | | | | | |
| 4.625%, 12/01/2027 | | | 200 | | | | 161 | |
| Glendale Industrial Development Authority, John C. Lincoln Health Network | | | | | | | | |
| 5.000%, 12/01/2032 | | | 100 | | | | 82 | |
| Halifax Florida Hospital, Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 375 | | | | 289 | |
| Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A | | | | | | | | |
| 5.250%, 02/15/2030 | | | 400 | | | | 330 | |
Johnson City, Tennessee Health & Educational Facilities Board, Series A Pre-refunded 07/01/2012 @ 103 | | | | | | | | |
7.500%, 07/01/2025 ◊ | | | 100 | | | | 113 | |
Maricopa County Hospital, Sun Health Corporation, Pre-refunded 04/01/2024 @ 100 | | | | | | | | |
5.000%, 04/01/2025 ◊ | | | 200 | | | | 219 | |
| Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A | | | | | | | | |
| 5.375%, 07/01/2023 | | | 500 | | | | 487 | |
| 5.250%, 07/01/2032 | | | 100 | | | | 91 | |
Scottsdale Industrial Development Authority, Scottsdale Healthcare Pre-refunded 12/01/2011 @ 101 | | | | | | | | |
5.700%, 12/01/2021 ◊ | | | 1,000 | | | | 1,115 | |
| Series A | | | | | | | | |
| 5.250%, 09/01/2030 | | | 350 | | | | 318 | |
| University Medical Center Corporation | | | | | | | | |
| 5.000%, 07/01/2016 | | | 250 | | | | 246 | |
| 5.000%, 07/01/2024 | | | 450 | | | | 394 | |
| Yavapai County Industrial Development Authority, Yavapai Regional Medical Center, Series A (RAAI) | | | | | | | | |
| 5.250%, 08/01/2021 | | | 375 | | | | 347 | |
| 6.000%, 08/01/2033 | | | 100 | | | | 92 | |
| Yuma Industrial Development Authority, Yuma Regional Medical Center Escrowed to Maturity (NATL) | | | | | | | | |
| 5.500%, 08/01/2017 § | | | 250 | | | | 266 | |
| | | | | | | | | |
| | | | | | | | 5,406 | |
| | | | | | | | | |
| Housing – 4.5% |
| Douglas Community Housing Corporation, Rancho La Perilla, Series A (GNMA) | | | | | | | | |
| 5.900%, 07/20/2020 | | | 500 | | | | 514 | |
| 6.000%, 07/20/2025 | | | 475 | | | | 484 | |
| | | | | | | | | |
| | | | | | | | 998 | |
| | | | | | | | | |
| Lease Revenue – 5.5% |
| Arizona Game & Fish Department, Administration Building Project | | | | | | | | |
| 4.500%, 07/01/2032 | | | 200 | | | | 167 | |
| Arizona State University Nanotechnology Project, | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 5.000%, 03/01/2034 | | | 200 | | | | 198 | |
| Mohave County Industrial Development Authority, Correctional Facilities Contract, Mohave Prison Expansion Project | | | | | | | | |
| 8.000%, 05/01/2025 | | | 250 | | | | 275 | |
| Peoria Municipal Development Authority | | | | | | | | |
| 5.000%, 07/01/2015 | | | 310 | | | | 349 | |
| Pinal County Industrial Development Authority, Correctional Facilities Contract, Florence West Prison Project, Series A (ACA) | | | | | | | | |
| 5.000%, 10/01/2016 | | | 250 | | | | 230 | |
| | | | | | | | | |
| | | | | | | | 1,219 | |
| | | | | | | | | |
| Miscellaneous – 3.8% |
| Arizona Student Loan Acquisition Authority, | | | | | | | | |
| Series A-1 (AMT) | | | | | | | | |
| 5.900%, 05/01/2024 | | | 100 | | | | 100 | |
| Greater Arizona Development Authority, Infrastructure Revenue, Series B | | | | | | | | |
| 5.250%, 08/01/2026 | | | 750 | | | | 752 | |
| | | | | | | | | |
| | | | | | | | 852 | |
| | | | | | | | | |
| Tax Revenue – 13.9% |
| Gilbert Public Facilities Municipal Property Corporation | | | | | | | | |
| 5.500%, 07/01/2027 | | | 500 | | | | 516 | |
First American Funds 2009 Annual Report 33
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Arizona Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Greater Arizona Development Authority, Infrastructure Revenue, Pinal County Road Project, Series 1 (NATL) | | | | | | | | |
| 4.500%, 08/01/2025 | | $ | 750 | | | $ | 698 | |
| Marana Municipal Property Corporation, Series A | | | | | | | | |
| 5.000%, 07/01/2028 | | | 250 | | | | 252 | |
| Marana Tangerine Farms Road Improvement District | | | | | | | | |
| 4.600%, 01/01/2026 | | | 241 | | | | 183 | |
| Peoria Improvement District #0601 | | | | | | | | |
| 4.250%, 01/01/2022 | | | 465 | | | | 438 | |
| Queen Creek Improvement District #001 | | | | | | | | |
| 5.000%, 01/01/2020 | | | 300 | | | | 261 | |
| Scottsdale Municipal Property Corporation, Excise Tax, Series C, Convertible CABs (AMBAC) | | | | | | | | |
0.000% through 06/30/2013,
thereafter 4.550%, 07/01/2021 ◗ | | | 500 | | | | 427 | |
| Yuma Improvement District #68 | | | | | | | | |
| 4.700%, 01/01/2021 | | | 365 | | | | 311 | |
| | | | | | | | | |
| | | | | | | | 3,086 | |
| | | | | | | | | |
| Utilities – 10.2% |
| Cottonwood Water (SGI) | | | | | | | | |
| 5.000%, 07/01/2017 | | | 250 | | | | 240 | |
| Gilbert Water Resource Municipal Property Corporation, Wastewater System & Utility | | | | | | | | |
| 5.000%, 04/01/2017 | | | 145 | | | | 145 | |
| Puerto Rico Commonwealth Aqueduct & Sewer Authority, Series A (AGTY) | | | | | | | | |
| 5.000%, 07/01/2028 | | | 1,000 | | | | 954 | |
| Salt Verde Financial Corporation, Gas | | | | | | | | |
| 5.000%, 12/01/2037 | | | 550 | | | | 408 | |
| Tucson Water, | | | | | | | | |
Series 1994-A (NATL) | | | | | | | | |
| 6.250%, 07/01/2016 | | | 170 | | | | 194 | |
| Yavapai County Industrial Development Authority, Waste Management Incorporated Project, Series A-1 (AMT) | | | | | | | | |
| 4.900%, 03/01/2028 | | | 400 | | | | 337 | |
| | | | | | | | | |
| | | | | | | | 2,278 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 17,075 | |
| | | | | | | | | |
| General Obligations – 13.7% |
| Centerra Community Facilities Distributors | | | | | | | | |
| 5.500%, 07/15/2029 | | | 188 | | | | 115 | |
| Chandler | | | | | | | | |
| 4.375%, 07/01/2028 | | | 500 | | | | 491 | |
| Greenlee County School District #18, Morenci School Improvement | | | | | | | | |
| 5.000%, 07/01/2012 | | | 165 | | | | 172 | |
| Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) (NATL) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 1,000 | | | | 997 | |
| Pinal County Unified School District #1, Florence School Improvement Project 2006, Series A (FGIC) (NATL) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 1,000 | | | | 996 | |
| Tucson | | | | | | | | |
| 5.500%, 07/01/2018 | | | 250 | | | | 290 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 3,061 | |
| | | | | | | | | |
| Certificates of Participation – 5.7% |
| Arizona School Facilities Board | | | | | | | | |
| 5.250%, 09/01/2023 | | | 500 | | | | 504 | |
| Northern Arizona University, Research Projects (AMBAC) | | | | | | | | |
| 5.000%, 09/01/2023 | | | 140 | | | | 139 | |
| Pinal County | | | | | | | | |
| 5.000%, 12/01/2014 | | | 400 | | | | 418 | |
| Tucson (NATL) | | | | | | | | |
| 5.500%, 07/01/2015 | | | 200 | | | | 200 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 1,261 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $22,540) | | | | | | | 21,397 | |
| | | | | | | | | |
Short-Term Investment – 2.1% |
| Federated Arizona Municipal Money Market Fund | | | | | | | | |
(Cost $457) | | | 457,236 | | | | 457 | |
| | | | | | | | | |
Total Investments 5 – 98.3% | | | | | | | | |
(Cost $22,997) | | | | | | | 21,854 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.7% | | | | | | | 386 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 22,240 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $23,034. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 476 | |
| Gross unrealized depreciation | | | (1,656 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (1,180 | ) |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to AMT was $437 which represents 2.0% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| GNMA – | Government National Mortgage Association |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
The accompanying notes are an integral part of the financial statements.
34 First American Funds 2009 Annual Report
| | | | | | | | | |
| California Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 97.7% |
| Revenue Bonds – 67.3% |
| Continuing Care Retirement Communities – 1.3% |
| Association of Bay Area Governments Financial Authority, Lincoln Glen Manor Senior Citizens (CMI) | | | | | | | | |
| 6.100%, 02/15/2025 | | $ | 250 | | | $ | 250 | |
| California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | | | | | | | | |
| 5.000%, 11/15/2012 | | | 500 | | | | 517 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 300 | | | | 206 | |
| La Verne, Brethren Hillcrest Homes, Series B (ACA) | | | | | | | | |
| 5.600%, 02/15/2033 | | | 500 | | | | 330 | |
| | | | | | | | | |
| | | | | | | | 1,303 | |
| | | | | | | | | |
| Economic Development – 1.0% |
| Port of Oakland, Series B (NATL) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,000 | | | | 1,011 | |
| | | | | | | | | |
| Education – 12.5% |
| Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A, Escrowed to Maturity | | | | | | | | |
| 5.900%, 06/01/2010 § | | | 200 | | | | 210 | |
| California Educational Facilities Authority, | | | | | | | | |
| Series B, Escrowed to Maturity | | | | | | | | |
| 6.000%, 06/01/2010 § | | | 410 | | | | 431 | |
| 6.000%, 06/01/2010 § | | | 85 | | | | 89 | |
Series B, Pre-refunded 06/01/2010 @ 101 | | | | | | | | |
6.625%, 06/01/2020 ◊ | | | 180 | | | | 191 | |
6.625%, 06/01/2020 ◊ | | | 35 | | | | 37 | |
| California Educational Facilities Authority, Claremont Graduate University, Series A | | | | | | | | |
| 4.750%, 03/01/2020 | | | 755 | | | | 735 | |
| 5.000%, 03/01/2020 | | | 240 | | | | 241 | |
| 5.000%, 03/01/2023 | | | 865 | | | | 834 | |
| 5.125%, 03/01/2028 | | | 500 | | | | 472 | |
| California Educational Facilities Authority, Fresno Pacific University, Series A | | | | | | | | |
| 6.750%, 03/01/2019 | | | 380 | | | | 347 | |
| California Educational Facilities Authority, Golden Gate University | | | | | | | | |
| 5.000%, 10/01/2020 | | | 505 | | | | 414 | |
| California Educational Facilities Authority, Lutheran University, Series C | | | | | | | | |
| 4.750%, 10/01/2015 | | | 675 | | | | 637 | |
| California Educational Facilities Authority, University of Redlands, Series A | | | | | | | | |
| 5.000%, 10/01/2020 | | | 1,000 | | | | 1,003 | |
| 5.000%, 08/01/2028 | | | 1,000 | | | | 929 | |
| California Educational Facilities Authority, University of the Pacific | | | | | | | | |
| 5.000%, 11/01/2015 | | | 300 | | | | 312 | |
| 5.000%, 11/01/2030 | | | 1,000 | | | | 870 | |
| California Educational Facilities Authority, Woodbury University | | | | | | | | |
| 4.400%, 01/01/2015 | | | 450 | | | | 406 | |
| 4.500%, 01/01/2016 | | | 470 | | | | 416 | |
| California Municipal Finance Authority, American Heritage Education Foundation Project, Series A | | | | | | | | |
| 5.250%, 06/01/2026 | | | 400 | | | | 316 | |
| California Municipal Finance Authority, Biola University | | | | | | | | |
| 5.000%, 10/01/2018 | | | 1,000 | | | | 936 | |
| 5.625%, 10/01/2023 | | | 500 | | | | 470 | |
| California Municipal Finance Authority, Loma Linda University | | | | | | | | |
| 4.250%, 04/01/2018 | | | 300 | | | | 291 | |
| 4.375%, 04/01/2019 | | | 300 | | | | 289 | |
| California State University, Series C (NATL) | | | | | | | | |
| 5.000%, 11/01/2025 | | | 1,000 | | | | 1,002 | |
| California Statewide Communities Development Authority, Viewpoint School (ACA) | | | | | | | | |
| 4.125%, 10/01/2014 | | | 405 | | | | 369 | |
| | | | | | | | | |
| | | | | | | | 12,247 | |
| | | | | | | | | |
| Healthcare – 17.9% |
| Association of Bay Area Governments Financial Authority, Children’s Hospital & Research, Series A | | | | | | | | |
| 4.500%, 12/01/2019 | | | 425 | | | | 394 | |
| 4.750%, 12/01/2022 | | | 350 | | | | 315 | |
| California Health Facilities Financing Authority, Adventist Health System West, Series C | | | | | | | | |
| 5.250%, 03/01/2021 | | | 500 | | | | 479 | |
| California Health Facilities Financing Authority, Casa Colina | | | | | | | | |
| 5.500%, 04/01/2013 | | | 350 | | | | 354 | |
| California Health Facilities Financing Authority, Catholic Healthcare West, | | | | | | | | |
| Series G | | | | | | | | |
| 5.500%, 07/01/2025 | | | 1,000 | | | | 973 | |
Series I
Mandatory Put 07/01/2014 @ 100 | | | | | | | | |
| 4.950%, 07/01/2026 | | | 450 | | | | 455 | |
| California Health Facilities Financing Authority, Marshall Medical Center, Series A (CMI) | | | | | | | | |
| 4.750%, 11/01/2019 | | | 1,760 | | | | 1,663 | |
| California Health Facilities Financing Authority, Scripps Health, Series A | | | | | | | | |
| 5.000%, 10/01/2022 | | | 200 | | | | 187 | |
| California Health Facilities Financing Authority, Sutter Health, Series A | | | | | | | | |
| 5.000%, 08/15/2038 | | | 250 | | | | 224 | |
| California Statewide Communities Development Authority, Adventist Health, Series A | | | | | | | | |
| 5.000%, 03/01/2030 | | | 300 | | | | 252 | |
| California Statewide Communities Development Authority, Catholic Healthcare West, Series C | | | | | | | | |
| 5.625%, 07/01/2035 | | | 1,000 | | | | 936 | |
| California Statewide Communities Development Authority, Daughters of Charity Health, | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 07/01/2030 | | | 100 | | | | 79 | |
| Series G | | | | | | | | |
| 5.250%, 07/01/2013 | | | 400 | | | | 403 | |
| California Statewide Communities Development Authority, Elder Care Alliance, Series A Escrowed to Maturity | | | | | | | | |
| 7.250%, 11/15/2011 § | | | 410 | | | | 439 | |
| California Statewide Communities Development Authority, Enloe Medical Center, Series A (CMI) | | | | | | | | |
| 5.250%, 08/15/2019 | | | 125 | | | | 126 | |
| 5.500%, 08/15/2023 | | | 500 | | | | 490 | |
First American Funds 2009 Annual Report 35
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital,
Series A (CMI) | | | | | | | | |
| 5.000%, 10/01/2020 | | $ | 500 | | | $ | 494 | |
| 5.000%, 10/01/2027 | | | 400 | | | | 365 | |
| Series B (AMBAC) (CMI) | | | | | | | | |
| 5.200%, 10/01/2037 | | | 500 | | | | 428 | |
| California Statewide Communities Development Authority, Jewish Home (CMI) | | | | | | | | |
| 4.500%, 11/15/2019 | | | 560 | | | | 535 | |
| 5.000%, 11/15/2037 | | | 500 | | | | 426 | |
California Statewide Communities Development Authority, Kaiser Permanente, Series C
Mandatory Put 06/01/2012 @ 100 | | | | | | | | |
| 3.850%, 11/01/2029 | | | 875 | | | | 883 | |
| California Statewide Communities Development Authority, Redlands Community Hospital, Series A (RAAI) | | | | | | | | |
| 5.000%, 04/01/2015 | | | 500 | | | | 492 | |
| California Statewide Communities Development Authority, St. Joseph, | | | | | | | | |
| Series B (FGIC) | | | | | | | | |
| 5.500%, 07/01/2027 | | | 1,100 | | | | 1,098 | |
| Series C (FGIC) | | | | | | | | |
| 5.500%, 07/01/2027 | | | 500 | | | | 499 | |
| Loma Linda University Medical Center, Series A | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,000 | | | | 936 | |
| 8.250%, 12/01/2038 | | | 1,000 | | | | 1,049 | |
| Sierra View Health Care District | | | | | | | | |
| 5.250%, 07/01/2024 | | | 1,000 | | | | 903 | |
| 5.300%, 07/01/2026 | | | 1,000 | | | | 898 | |
| Turlock Health Facilities, Emanuel Medical Center | | | | | | | | |
| 5.000%, 10/15/2024 | | | 1,000 | | | | 762 | |
| | | | | | | | | |
| | | | | | | | 17,537 | |
| | | | | | | | | |
| Housing – 2.4% |
| Aztec Shops, California Auxiliary Organization, San Diego State University | | | | | | | | |
| 5.400%, 09/01/2011 | | | 1,035 | | | | 1,048 | |
| California Rural Home Mortgage Finance Authority, Single Family Mortgage, | | | | | | | | |
| Series B (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.650%, 06/01/2010 | | | 5 | | | | 5 | |
| Series D (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.250%, 06/01/2010 | | | 5 | | | | 5 | |
| California Statewide Communities Development Authority, UCI East Campus | | | | | | | | |
| 5.500%, 05/15/2026 | | | 410 | | | | 358 | |
| Ventura County Area Housing Authority, Mira Vista Senior Apartments | | | | | | | | |
| Series A (AMBAC) (AMT) | | | | | | | | |
| 5.150%, 12/01/2031 | | | 1,000 | | | | 903 | |
| | | | | | | | | |
| | | | | | | | 2,319 | |
| | | | | | | | | |
| Lease Revenue – 9.3% |
| Apple Valley Public Financing Authority, Town Hall Annex Project, Series A (AMBAC) | | | | | | | | |
| 4.500%, 09/01/2017 | | | 535 | | | | 534 | |
| 5.000%, 09/01/2027 | | | 500 | | | | 484 | |
California Public Works Board, California Community Colleges,
Series A | | | | | | | | |
| 4.875%, 12/01/2018 | | | 200 | | | | 194 | |
| Series B | | | | | | | | |
| 5.500%, 06/01/2019 | | | 1,035 | | | | 1,040 | |
| California Public Works Board, Department of Corrections & Rehabilitation, Series F (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,500 | | | | 1,514 | |
| California Public Works Board, Department of Health Services, Series A (NATL) | | | | | | | | |
| 5.200%, 11/01/2012 | | | 500 | | | | 508 | |
| California Public Works Board, Department of Mental Health Coalinga, Series A | | | | | | | | |
| 5.500%, 06/01/2016 | | | 540 | | | | 552 | |
| California Public Works Board, Regents University of California, Series E | | | | | | | | |
| 5.000%, 04/01/2034 | | | 1,250 | | | | 1,185 | |
| Golden State Tobacco Securitization Corporation, California Tobacco Settlement, | | | | | | | | |
| Series A, Convertible CABs (FSA) | | | | | | | | |
0.000% through 06/01/2010,
thereafter 4.550%, 06/01/2022 ◗ | | | 1,900 | | | | 1,585 | |
| Los Angeles Community Redevelopment Agency, Manchester Social Services Project (AMBAC) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 1,200 | | | | 1,246 | |
| Yuba Levee Financing Authority Project, Series A (AGTY) | | | | | | | | |
| 5.000%, 09/01/2038 | | | 250 | | | | 231 | |
| | | | | | | | | |
| | | | | | | | 9,073 | |
| | | | | | | | | |
| Miscellaneous – 3.9% |
| California Infrastructure & Economic Development, Salvation Army Western (AMBAC) | | | | | | | | |
| 4.000%, 09/01/2018 | | | 1,000 | | | | 998 | |
| Golden West Schools Financing Authority, Series A (NATL) | | | | | | | | |
| 5.700%, 02/01/2013 | | | 720 | | | | 785 | |
| 5.750%, 02/01/2014 | | | 770 | | | | 843 | |
| 5.800%, 08/01/2022 | | | 320 | | | | 343 | |
| 5.800%, 08/01/2023 | | | 345 | | | | 370 | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
3.242%, 02/01/2012 ¤ | | | 535 | | | | 493 | |
| | | | | | | | | |
| | | | | | | | 3,832 | |
| | | | | | | | | |
| Recreational Facility Authority – 1.4% |
| California Infrastructure & Economic Development, Performing Arts Center | | | | | | | | |
| 4.000%, 12/01/2015 | | | 220 | | | | 213 | |
California State University Fresno Association, Auxiliary Organization Event Center,
Pre-refunded 07/01/2012 @ 101 | | | | | | | | |
6.000%, 07/01/2022 ◊ | | | 1,000 | | | | 1,148 | |
| | | | | | | | | |
| | | | | | | | 1,361 | |
| | | | | | | | | |
| Tax Revenue – 9.0% |
Antioch Area Public Facilities Financing Agency, Special Tax, Community Facilities District #1989-1 (AMBAC) | | | | | | | | |
| 4.000%, 08/01/2018 | | | 1,000 | | | | 874 | |
| Corona Redevelopment Agency, Tax Allocation, Temescal Canyon Project Area, Series A (AGTY) | | | | | | | | |
| 4.125%, 11/01/2017 | | | 205 | | | | 191 | |
The accompanying notes are an integral part of the financial statements.
36 First American Funds 2009 Annual Report
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Grass Valley Redevelopment Agency, Tax Allocation | | | | | | | | |
| 6.400%, 12/01/2034 | | $ | 400 | | | $ | 394 | |
| Los Angeles County Community Facilities District #3, Special Tax, Improvement Area B, | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.250%, 09/01/2018 | | | 715 | | | | 719 | |
Los Angeles Special Assessment, Landscape & Lighting, District #96-1 | | | | | | | | |
| 5.625%, 03/01/2019 | | | 200 | | | | 206 | |
| Murrieta Community Facilities, Special Tax, District #2, The Oaks Improvement Area, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 09/01/2020 | | | 375 | | | | 323 | |
Norco, Special Tax, Community Facilities District #97-1 (AGTY) | | | | | | | | |
| 4.500%, 10/01/2016 | | | 260 | | | | 256 | |
| 4.875%, 10/01/2030 | | | 500 | | | | 436 | |
| Palm Desert Financing Authority, Tax Allocation, Project Area #4, Series A (NATL) | | | | | | | | |
| 4.750%, 10/01/2013 | | | 500 | | | | 507 | |
| 5.000%, 10/01/2029 | | | 1,000 | | | | 847 | |
| Poway Unified School District, Special Tax, Community Facilities District #6 4S Ranch | | | | | | | | |
| 5.000%, 09/01/2023 | | | 650 | | | | 579 | |
| Rancho Cucamonga Redevelopment Agency, Tax Allocation, Series A (NATL) | | | | | | | | |
| 4.125%, 09/01/2018 | | | 310 | | | | 274 | |
| 5.000%, 09/01/2034 | | | 500 | | | | 399 | |
| San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 850 | | | | 824 | |
| San Francisco City & County Redevelopment Financing Authority, Tax Allocation, Mission Bay North Redevelopment Project, Series B (RAAI) | | | | | | | | |
| 4.000%, 08/01/2012 | | | 295 | | | | 285 | |
| 4.100%, 08/01/2014 | | | 325 | | | | 298 | |
| 4.250%, 08/01/2016 | | | 250 | | | | 221 | |
| 4.375%, 08/01/2018 | | | 380 | | | | 323 | |
| Sand City Redevelopment Agency, Tax Allocation, | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 4.000%, 11/01/2019 | | | 315 | | | | 267 | |
| Soledad Redevelopment Agency, Tax Allocation, | | | | | | | | |
| Series A (SGI) | | | | | | | | |
| 4.500%, 12/01/2016 | | | 205 | | | | 192 | |
South Tahoe Redevelopment Agency, Special Tax, Community Facilities District #2001-1 | | | | | | | | |
| 4.400%, 10/01/2015 | | | 120 | | | | 105 | |
| 4.500%, 10/01/2016 | | | 125 | | | | 105 | |
| 4.600%, 10/01/2018 | | | 280 | | | | 224 | |
| | | | | | | | | |
| | | | | | | | 8,849 | |
| | | | | | | | | |
| Transportation – 1.1% |
| Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.430%, 10/01/2014 ¤ | | | 1,000 | | | | 755 | |
| Puerto Rico Commonwealth Highway & Transportation Authority, Series X (IBC) (NATL) | | | | | | | | |
| 5.500%, 07/01/2015 | | | 100 | | | | 102 | |
| San Francisco City & County Airports Commission, SFO Fuel, Series A (AMT) (FSA) | | | | | | | | |
| 5.625%, 01/01/2012 | | | 250 | | | | 253 | |
| | | | | | | | | |
| | | | | | | | 1,110 | |
| | | | | | | | | |
| Utilities – 7.5% |
| Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2020 | | | 1,025 | | | | 1,029 | |
| 5.000%, 11/01/2023 | | | 1,040 | | | | 1,028 | |
California Pollution Control Financing Authority, Solid Waste Disposal, Waste Management Incorporated Project,
Series A-2 (AMT) | | | | | | | | |
| 5.400%, 04/01/2025 | | | 500 | | | | 457 | |
| Series B (AMT) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 500 | | | | 429 | |
California Statewide Communities Development Authority, Pollution Control, Southern California Edison Company, Series A
Mandatory Put 04/01/2013 @ 100 (SGI) | | | | | | | | |
| 4.100%, 04/01/2028 | | | 500 | | | | 498 | |
| California Statewide Communities Development Authority, Water Revenue, Series B (FSA) | | | | | | | | |
| 4.250%, 10/01/2017 | | | 125 | | | | 129 | |
| Compton Sewer (IBC) (NATL) | | | | | | | | |
| 5.375%, 09/01/2023 | | | 1,150 | | | | 1,172 | |
| Imperial, Wastewater Treatment Facility (FGIC) (NATL) | | | | | | | | |
| 5.000%, 10/15/2020 | | | 1,000 | | | | 940 | |
| Norco, Financing Authority, Enterprise Revenue (FSA) | | | | | | | | |
| 5.625%, 10/01/2034 | | | 1,000 | | | | 1,004 | |
| Signal Hill, Water Revenue (NATL) | | | | | | | | |
| 4.375%, 11/01/2018 | | | 345 | | | | 346 | |
| Whittier Utility Authority, Water Revenue Series A (NATL) | | | | | | | | |
| 4.400%, 06/01/2017 | | | 305 | | | | 296 | |
| 4.500%, 06/01/2018 | | | 65 | | | | 63 | |
| | | | | | | | | |
| | | | | | | | 7,391 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 66,033 | |
| | | | | | | | | |
| General Obligations – 25.4% |
| Baldwin Park Unified School District, Election of 2002, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.717%, 08/01/2020 ¤ | | | 1,000 | | | | 535 | |
| California | | | | | | | | |
| 5.000%, 02/01/2024 | | | 500 | | | | 469 | |
| 5.125%, 04/01/2024 | | | 500 | | | | 475 | |
| 5.625%, 04/01/2026 | | | 600 | | | | 591 | |
| Central Unified School District, Election of 2008, Series A (AGTY) | | | | | | | | |
| 5.625%, 08/01/2033 | | | 500 | | | | 511 | |
| College of the Sequoias, Visalia Area Improvement District #2, Election of 2008, Series A (AGTY) | | | | | | | | |
| 5.250%, 08/01/2029 | | | 1,000 | | | | 1,014 | |
| Corona-Norco Unified School District, Election of 2006, Series B (AGTY) | | | | | | | | |
| 5.375%, 02/01/2034 | | | 500 | | | | 503 | |
| Desert Sands Unified School District, Election of 2001 | | | | | | | | |
| 5.250%, 08/01/2023 | | | 350 | | | | 367 | |
| Foothill-De Anza Community College District | | | | | | | | |
| 6.000%, 08/01/2011 | | | 300 | | | | 318 | |
| Grant Joint Union High School District, Election of 2006, Zero Coupon Bond (FSA) | | | | | | | | |
6.450%, 08/01/2026 ¤ | | | 300 | | | | 101 | |
First American Funds 2009 Annual Report 37
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Grossmont Union High School District, Election of 2008, Series A | | | | | | | | |
| 5.500%, 08/01/2031 | | $ | 950 | | | $ | 979 | |
| Hemet Unified School District, Election of 2006, Series B (AGTY) | | | | | | | | |
| 5.000%, 08/01/2030 | | | 600 | | | | 592 | |
| Jefferson Union High School District, San Mateo County, Series A (NATL) | | | | | | | | |
| 6.250%, 02/01/2014 | | | 300 | | | | 323 | |
| 6.250%, 08/01/2020 | | | 460 | | | | 494 | |
| Long Beach Unified School District, Election of 2008, Series A | | | | | | | | |
| 5.500%, 08/01/2029 | | | 500 | | | | 518 | |
| Los Angeles Unified School District, Series D | | | | | | | | |
| 5.000%, 01/01/2034 | | | 100 | | | | 96 | |
| Los Angeles Unified School District, Election of 2002, Series B (AMBAC) | | | | | | | | |
| 4.500%, 07/01/2025 | | | 1,375 | | | | 1,300 | |
| Lucia Mar Unified School District (FGIC) (NATL) | | | | | | | | |
| 5.250%, 08/01/2022 | | | 100 | | | | 104 | |
| Oakland, Series A (NATL) | | | | | | | | |
| 5.000%, 01/15/2026 | | | 435 | | | | 437 | |
| Palm Springs Unified School District, Election of 2004, Series B (FSA) | | | | | | | | |
| 4.750%, 08/01/2035 | | | 105 | | | | 96 | |
| Pittsburg Unified School District, Election of 2006, Series B (FSA) | | | | | | | | |
| 5.500%, 08/01/2034 | | | 1,155 | | | | 1,167 | |
| Pomona Unified School District, Series A (NATL) | | | | | | | | |
| 6.150%, 08/01/2015 | | | 500 | | | | 559 | |
| 5.950%, 02/01/2017 | | | 855 | | | | 909 | |
Poway Unified School District, Election of 2008, District 2007-1-A, Zero Coupon Bond | | | | | | | | |
6.651%, 08/01/2029 ¤ | | | 5,000 | | | | 1,344 | |
| Puerto Rico Commonwealth, Series B (FSA) | | | | | | | | |
| 6.500%, 07/01/2015 | | | 1,000 | | | | 1,117 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 100 | | | | 98 | |
| Roseville Joint Union High School District, Series E | | | | | | | | |
| 5.200%, 08/01/2020 | | | 600 | | | | 617 | |
| Roseville Joint Union High School District, Election of 2004, Series B (FGIC) (NATL) | | | | | | | | |
| 5.000%, 08/01/2018 | | | 550 | | | | 587 | |
| San Bernardino Community College District, Election of 2002, Series A | | | | | | | | |
| 6.500%, 08/01/2027 | | | 1,265 | | | | 1,427 | |
| San Diego Unified School District, Election of 2008, Series A Convertible CABs | | | | | | | | |
0.000% through 07/01/2019,
thereafter 6.000%, 07/01/2033 ◗ | | | 2,000 | | | | 1,095 | |
| San Mateo Union High School District, Election of 2000, Series B Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
4.462%, 09/01/2017 ¤ | | | 1,000 | | | | 697 | |
| Santa Ana Unified School District, Election of 2008, Series A | | | | | | | | |
| 5.250%, 08/01/2028 | | | 1,000 | | | | 1,004 | |
| Santa Barbara Community College District, Election of 2008, Series A | | | | | | | | |
| 5.250%, 08/01/2027 | | | 1,000 | | | | 1,026 | |
| Victor Valley Community College District, Election of 2008, Series A | | | | | | | | |
| 5.000%, 08/01/2031 | | | 1,530 | | | | 1,488 | |
| West Contra Costa Unified School District, Election of 2005, Series B | | | | | | | | |
| 6.000%, 08/01/2024 | | | 1,100 | | | | 1,192 | |
| West Covina Unified School District, Series A (NATL) | | | | | | | | |
| 5.350%, 02/01/2020 | | | 770 | | | | 773 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 24,923 | |
| | | | | | | | | |
| Certificates of Participation – 5.0% |
| Escondido, Series A (FGIC) (NATL) | | | | | | | | |
| 5.625%, 09/01/2020 | | | 140 | | | | 146 | |
| Kern County Board of Education, Series A (NATL) | | | | | | | | |
| 5.200%, 05/01/2012 | | | 325 | | | | 331 | |
| Los Angeles, Sonnenblick del Rio, West Los Angeles (AMBAC) | | | | | | | | |
| 5.375%, 11/01/2010 | | | 210 | | | | 214 | |
| 6.000%, 11/01/2019 | | | 330 | | | | 339 | |
| Oakdale Irrigation District, Water Facilities Project | | | | | | | | |
| 5.500%, 08/01/2034 | | | 805 | | | | 797 | |
| Pasadena, Series C | | | | | | | | |
| 4.500%, 02/01/2026 | | | 200 | | | | 190 | |
| Poway (AMBAC) | | | | | | | | |
| 4.500%, 08/01/2016 | | | 585 | | | | 591 | |
| Ramona Unified School District, Convertible CABs (FGIC) (NATL) | | | | | | | | |
0.000% through 05/01/2012,
thereafter 5.000%, 05/01/2032 ◗ | | | 500 | | | | 400 | |
| Rowland Water District, Recycled Water Project | | | | | | | | |
| 5.750%, 12/01/2024 | | | 565 | | | | 596 | |
| 5.750%, 12/01/2025 | | | 480 | | | | 503 | |
| 6.250%, 12/01/2039 | | | 500 | | | | 519 | |
| Travis Unified School District (FGIC) (NATL) | | | | | | | | |
| 4.500%, 09/01/2016 | | | 300 | | | | 289 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 4,915 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $99,200) | | | | | | | 95,871 | |
| | | | | | | | | |
Short-Term Investment – 1.2% |
| Blackrock Liquidity Funds | | | | | | | | |
(Cost $1,138) | | | 1,138,184 | | | | 1,138 | |
| | | | | | | | | |
Total Investments 5 – 98.9% | | | | | | | | |
(Cost $100,338) | | | | | | | 97,009 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.1% | | | | | | | 1,088 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 98,097 | |
| | | | | | | | | |
| | |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2009 Annual Report
California Tax Free Fund (concluded)
| | |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $100,338. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,241 | |
| Gross unrealized depreciation | | | (4,570 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (3,329 | ) |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $2,052, which represents 2.1% of total net assets. |
| |
| CMI – | California Mortgage Insurance Program |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
| |
| IBC – | Insured Bond Certificate |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
California Tax Free Fund (concluded)
| | | | | | | | | |
| Colorado Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 99.0% |
| Revenue Bonds – 75.1% |
| Continuing Care Retirement Communities – 2.2% |
| Colorado Health Facilities Authority, Christian Living Communities Project, Series A | | | | | | | | |
| 5.250%, 01/01/2014 | | $ | 250 | | | $ | 247 | |
| 5.750%, 01/01/2026 | | | 100 | | | | 82 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.000%, 12/01/2016 | | | 500 | | | | 465 | |
| 5.250%, 12/01/2025 | | | 200 | | | | 163 | |
| Series B | | | | | | | | |
| 6.125%, 12/01/2033 | | | 350 | | | | 294 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 225 | | | | 137 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 100 | | | | 80 | |
| | | | | | | | | |
| | | | | | | | 1,468 | |
| | | | | | | | | |
| Education – 18.5% |
| Adams State College Auxiliary Facilities Improvement, Series A (STAID) | | | | | | | | |
| 5.500%, 05/15/2034 | | | 1,340 | | | | 1,370 | |
| 5.500%, 05/15/2039 | | | 1,110 | | | | 1,130 | |
| Anderson, Indiana, Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2032 | | | 350 | | | | 247 | |
| Colorado Educational & Cultural Facilities Authority, Academy Charter School Project, Series A (SMO) | | | | | | | | |
| 4.625%, 12/15/2028 | | | 330 | | | | 287 | |
| Colorado Educational & Cultural Facilities Authority, Ave Maria School Project (RAAI) | | | | | | | | |
| 4.750%, 12/01/2014 | | | 220 | | | | 207 | |
| 4.750%, 12/01/2015 | | | 230 | | | | 211 | |
| 4.850%, 12/01/2025 | | | 250 | | | | 196 | |
Pre-refunded 12/01/2010 @ 100 (RAAI) | | | | | | | | |
6.000%, 12/01/2016 ◊ | | | 200 | | | | 213 | |
| Colorado Educational & Cultural Facilities Authority, Bromley East Charter School Project | | | | | | | | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 6.250%, 09/15/2011 § | | | 175 | | | | 184 | |
| Colorado Educational & Cultural Facilities Authority, Charter School | | | | | | | | |
| 5.625%, 05/01/2040 | | | 1,000 | | | | 872 | |
| Colorado Educational & Cultural Facilities Authority, Charter School, James Irwin Foundation (CIFG) (STAID) | | | | | | | | |
| 5.000%, 08/01/2027 | | | 250 | | | | 244 | |
| Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School, | | | | | | | | |
| Series A (SMO) | | | | | | | | |
| 5.000%, 06/15/2018 | | | 240 | | | | 247 | |
| 5.000%, 06/15/2019 | | | 255 | | | | 259 | |
| 5.000%, 06/15/2020 | | | 265 | | | | 266 | |
| 5.250%, 06/15/2029 | | | 500 | | | | 472 | |
| Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School Escrowed to Maturity | | | | | | | | |
| 6.375%, 12/01/2011 § | | | 650 | | | | 692 | |
First American Funds 2009 Annual Report 39
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Colorado Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Colorado Educational & Cultural Facilities Authority, Front Range Christian School Project | | | | | | | | |
| (LOC: Evangelical Christian, Wescorp Credit Union) | | | | | | | | |
| 4.500%, 04/01/2018 | | $ | 225 | | | $ | 225 | |
| 4.500%, 04/01/2019 | | | 240 | | | | 236 | |
| 5.000%, 04/01/2037 | | | 750 | | | | 675 | |
| Colorado Educational & Cultural Facilities Authority, Northwest Nazarene | | | | | | | | |
| 4.500%, 11/01/2015 | | | 690 | | | | 636 | |
| Colorado School Mines Enterprise, Series A (STAID) | | | | | | | | |
| 5.000%, 12/01/2029 | | | 475 | | | | 478 | |
| Fort Lewis College Board, Trustees Enterprise, Series A (FGIC) (NATL) | | | | | | | | |
| 4.375%, 10/01/2020 | | | 100 | | | | 99 | |
| Series B-1 (FGIC) (NATL) | | | | | | | | |
| 4.375%, 10/01/2020 | | | 300 | | | | 296 | |
| University of Colorado Enterprise System, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 06/01/2028 | | | 335 | | | | 362 | |
| 5.375%, 06/01/2032 | | | 500 | | | | 516 | |
| University of Colorado Enterprise System, University of Colorado Regents (NATL) | | | | | | | | |
| 5.000%, 06/01/2032 | | | 500 | | | | 501 | |
| Western State College (STAID) | | | | | | | | |
| 5.000%, 05/15/2034 | | | 1,000 | | | | 958 | |
| | | | | | | | | |
| | | | | | | | 12,079 | |
| | | | | | | | | |
| Healthcare – 17.5% |
| Aspen Valley Hospital District | | | | | | | | |
| 4.375%, 10/15/2014 | | | 560 | | | | 520 | |
| Boulder County, Longmont United Hospital Project (RAAI) | | | | | | | | |
| 5.300%, 12/01/2010 | | | 330 | | | | 334 | |
| Colorado Health Facilities Authority, Series B (FSA) | | | | | | | | |
| 5.250%, 03/01/2036 | | | 600 | | | | 574 | |
| Colorado Health Facilities Authority, Catholic Health Initiatives, Series D | | | | | | | | |
| 5.125%, 10/01/2017 | | | 500 | | | | 514 | |
| 6.250%, 10/01/2033 | | | 500 | | | | 532 | |
| Colorado Health Facilities Authority, Evangelical Lutheran | | | | | | | | |
| 5.000%, 06/01/2016 | | | 350 | | | �� | 351 | |
| 6.900%, 12/01/2025 | | | 195 | | | | 199 | |
| Pre-refunded 12/01/2010 @ 102 | | | | | | | | |
6.900%, 12/01/2025 ◊ | | | 305 | | | | 338 | |
| Series A | | | | | | | | |
| 5.250%, 06/01/2034 | | | 230 | | | | 199 | |
| Colorado Health Facilities Authority, Health & Residential Care Facilities, Volunteers of America, Series A | | | | | | | | |
| 5.000%, 07/01/2015 | | | 500 | | | | 434 | |
| Colorado Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | | | | | | | | |
| 5.250%, 12/01/2013 | | | 860 | | | | 853 | |
| 4.625%, 12/01/2024 | | | 325 | | | | 244 | |
| Colorado Health Facilities Authority, National Jewish Medical & Research Center | | | | | | | | |
| 5.375%, 01/01/2016 | | | 1,000 | | | | 914 | |
Colorado Health Facilities Authority, Parkview Medical Center Project,
Escrowed to Maturity | | | | | | | | |
| 5.600%, 09/01/2011 § | | | 300 | | | | 329 | |
| Series B | | | | | | | | |
| 5.000%, 09/01/2018 | | | 500 | | | | 492 | |
Colorado Health Facilities Authority, Portercare Adventist Health Pre-refunded 11/15/2011 @ 101 | | | | | | | | |
6.500%, 11/15/2023 ◊ | | | 600 | | | | 676 | |
| Colorado Health Facilities Authority, Poudre Valley Health Care, Series F | | | | | | | | |
| 5.000%, 03/01/2025 | | | 350 | | | | 303 | |
| Colorado Health Facilities Authority, The Devereux Foundation (RAAI) | | | | | | | | |
| 4.200%, 11/01/2013 | | | 80 | | | | 77 | |
| Colorado Health Facilities Authority, Valley View Hospital Association Project | | | | | | | | |
| 5.500%, 05/15/2028 | | | 400 | | | | 350 | |
| Series A (RAAI) | | | | | | | | |
| 5.000%, 05/15/2012 | | | 165 | | | | 165 | |
| 5.000%, 05/15/2013 | | | 500 | | | | 498 | |
| Colorado Health Facilities Authority, Yampa Valley Medical Center Project | | | | | | | | |
| 5.000%, 09/15/2013 | | | 410 | | | | 407 | |
| Colorado Health Facilities, Parkview Medical Center Project, Series B | | | | | | | | |
| 5.000%, 09/01/2029 | | | 355 | | | | 306 | |
| Colorado Springs Hospital (FSA) | | | | | | | | |
| 5.250%, 12/15/2022 | | | 350 | | | | 360 | |
| Delta County Memorial Hospital District Enterprise | | | | | | | | |
| 5.350%, 09/01/2017 | | | 720 | | | | 675 | |
| Denver Health & Hospital Authority, Healthcare, | | | | | | | | |
| Series A | | | | | | | | |
| 4.750%, 12/01/2027 | | | 250 | | | | 196 | |
| Halifax, Florida Hospital Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 325 | | | | 250 | |
| La Junta, Arkansas Valley Regional Medical Center Project | | | | | | | | |
| 6.100%, 04/01/2024 | | | 100 | | | | 92 | |
| Montrose Memorial Hospital | | | | | | | | |
| 5.450%, 12/01/2014 | | | 210 | | | | 205 | |
| 6.375%, 12/01/2023 | | | 105 | | | | 97 | |
| | | | | | | | | |
| | | | | | | | 11,484 | |
| | | | | | | | | |
| Housing – 4.6% |
| Colorado Educational & Cultural Facilities Authority, Student Housing, Campus Village Apartment | | | | | | | | |
| 5.000%, 06/01/2022 | | | 810 | | | | 767 | |
| 5.500%, 06/01/2038 | | | 120 | | | | 107 | |
| Colorado Housing & Finance Authority, | | | | | | | | |
| Series E-2 (AMT) | | | | | | | | |
| 7.000%, 02/01/2030 | | | 35 | | | | 36 | |
| Colorado Housing & Finance Authority, Multifamily Project, Series B-4, Class I | | | | | | | | |
| 5.900%, 04/01/2031 | | | 100 | | | | 100 | |
| Colorado Housing & Finance Authority, Single Family Program, Series B-2 (AMT) | | | | | | | | |
| 7.100%, 04/01/2017 | | | 15 | | | | 15 | |
| Denver City & County Housing Authority, Capital Funding Program, Three Towers Rehabilitation Project (AMT) (FSA) | | | | | | | | |
| 4.000%, 05/01/2012 | | | 270 | | | | 274 | |
| 4.000%, 11/01/2012 | | | 270 | | | | 274 | |
| 4.550%, 11/01/2017 | | | 1,000 | | | | 959 | |
| 5.200%, 11/01/2027 | | | 500 | | | | 477 | |
| | | | | | | | | |
| | | | | | | | 3,009 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2009 Annual Report
| | | | | | | | | |
| Colorado Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Lease Revenue – 0.8% |
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2
Mandatory Put 07/01/2012 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.500%, 07/01/2035 | | $ | 500 | | | $ | 494 | |
| | | | | | | | | |
| Miscellaneous – 4.2% |
| Colorado Educational & Cultural Facilities Authority | | | | | | | | |
| 5.250%, 06/01/2021 | | | 750 | | | | 753 | |
| Colorado Educational & Cultural Facilities Authority, Colorado Public Radio | | | | | | | | |
| 4.900%, 07/01/2010 | | | 265 | | | | 267 | |
| Denver City & County, Helen G. Bonfils Foundation Project, Series B | | | | | | | | |
| 5.125%, 12/01/2017 | | | 1,000 | | | | 1,003 | |
| High Plains Metropolitan District, | | | | | | | | |
| Series B (LOC: Compass Bank) | | | | | | | | |
| 4.375%, 12/01/2015 | | | 770 | | | | 752 | |
| | | | | | | | | |
| | | | | | | | 2,775 | |
| | | | | | | | | |
| Recreational Facility Authority – 0.3% |
| Hyland Hills Metropolitan Park & Recreation District, Special Revenue, Series A | | | | | | | | |
| 6.100%, 12/15/2009 | | | 210 | | | | 210 | |
| | | | | | | | | |
| Revolving Funds – 0.1% |
| Colorado Water Resource & Power Development Authority, Small Water Resources, | | | | | | | | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.700%, 11/01/2015 | | | 55 | | | | 56 | |
| | | | | | | | | |
| Tax Revenue – 2.2% |
Douglas County Sales & Use Tax Pre-refunded 10/15/2010 @ 100 (FSA) | | | | | | | | |
5.625%, 10/15/2020 ◊ | | | 200 | | | | 212 | |
Larimer County Sales & Use Tax Pre-refunded 12/15/2010 @ 100 (AMBAC) | | | | | | | | |
5.625%, 12/15/2018 ◊ | | | 100 | | | | 107 | |
| Lone Tree Sales & Use Tax, Recreational Projects, Series A | | | | | | | | |
| 5.000%, 12/01/2020 | | | 340 | | | | 366 | |
| Park Meadows Business Improvement District, Shared Sales Tax | | | | | | | | |
| 5.000%, 12/01/2017 | | | 250 | | | | 199 | |
| 5.300%, 12/01/2027 | | | 475 | | | | 305 | |
| Superior Open Space Sales & Use Tax | | | | | | | | |
| 5.000%, 06/01/2026 | | | 330 | | | | 278 | |
| | | | | | | | | |
| | | | | | | | 1,467 | |
| | | | | | | | | |
| Transportation – 13.0% |
E-470 Public Highway Authority (NATL)
Series B, Zero Coupon Bond | | | | | | | | |
6.813%, 09/01/2017 ¤ | | | 1,575 | | | | 911 | |
7.158%, 09/01/2019 ¤ | | | 960 | | | | 470 | |
7.442%, 09/01/2022 ¤ | | | 1,000 | | | | 382 | |
Series C, Convertible CABs,
0.000% through 09/01/2011,
thereafter 5.000%, 09/01/2017 ◗ | | | 500 | | | | 480 | |
| Series D1 (NATL) | | | | | | | | |
| 5.500%, 09/01/2024 | | | 300 | | | | 265 | |
| Eagle County Air Terminal, Airport Terminal Improvement Project, Series B (AMT) | | | | | | | | |
| 5.250%, 05/01/2020 | | | 205 | | | | 142 | |
Northwest Parkway Public Highway Authority, Convertible CABs, Escrowed to Maturity (AMBAC)
0.000% through 06/15/2011,
thereafter 5.250%, 06/15/2015 § ◗ | | | 2,500 | | | | 2,534 | |
Escrowed to Maturity (FSA)
0.000% through 06/15/2011,
thereafter 5.350%, 06/15/2016 § ◗ | | | 1,000 | | | | 1,019 | |
Escrowed to Maturity(FSA)
0.000% through 06/15/2011,
thereafter 5.200%, 06/15/2014 § ◗ | | | 1,000 | | | | 1,008 | |
Pre-refunded 06/15/2016 @ 100 (AMBAC) 0.000% through 06/15/2011,
thereafter 5.700%, 06/15/2021 ◊ ◗ | | | 1,000 | | | | 1,034 | |
| Walker Field Public Airport Authority | | | | | | | | |
| 4.500%, 12/01/2016 | | | 225 | | | | 206 | |
| 4.750%, 12/01/2027 | | | 75 | | | | 59 | |
| | | | | | | | | |
| | | | | | | | 8,510 | |
| | | | | | | | | |
| Utilities – 11.7% |
| Arkansas River Power Authority | | | | | | | | |
| 6.000%, 10/01/2040 | | | 225 | | | | 196 | |
| Aurora Water System, First Lien, Series A | | | | | | | | |
| 4.750%, 08/01/2026 | | | 1,500 | | | | 1,489 | |
| 4.750%, 08/01/2027 | | | 125 | | | | 123 | |
Boulder Water & Sewer Pre-refunded 12/01/2010 @ 100 | | | | | | | | |
5.700%, 12/01/2019 ◊ | | | 300 | | | | 321 | |
| Broomfield Water Activity Enterprise (NATL) | | | | | | | | |
| 5.500%, 12/01/2017 | | | 500 | | | | 526 | |
| 5.500%, 12/01/2019 | | | 400 | | | | 419 | |
| Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | | | | | | | | |
| 5.700%, 07/01/2018 | | | 250 | | | | 241 | |
| Colorado Springs Utilities, Series C | | | | | | | | |
| 5.500%, 11/15/2048 | | | 1,200 | | | | 1,218 | |
| Denver City & County Wastewater (FGIC) (NATL) | | | | | | | | |
| 5.250%, 11/01/2017 | | | 1,060 | | | | 1,154 | |
| Eagle River Water & Sanitation District (AGTY) | | | | | | | | |
| 5.000%, 12/01/2034 | | | 800 | | | | 783 | |
| Fort Collins Wastewater Utility Enterprise (FSA) | | | | | | | | |
| 5.500%, 12/01/2020 | | | 300 | | | | 313 | |
| Public Authority for Colorado Energy Natural Gas | | | | | | | | |
| 6.250%, 11/15/2028 | | | 425 | | | | 398 | |
| Puerto Rico Electric Power Authority Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | | 500 | | | | 477 | |
| | | | | | | | | |
| | | | | | | | 7,658 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 49,210 | |
| | | | | | | | | |
| General Obligations – 17.3% |
| Adams & Arapahoe Counties School District, #28J, Aurora (STAID) | | | | | | | | |
| 5.500%, 12/01/2021 | | | 300 | | | | 334 | |
| 5.500%, 12/01/2025 | | | 165 | | | | 179 | |
| Antelope Water Systems, General Improvement District | | | | | | | | |
| 4.875%, 12/01/2025 | | | 175 | | | | 159 | |
| Boulder, Larimer & Weld Counties, St. Vrain Valley School District #RE1J (STAID) | | | | | | | | |
| 5.000%, 12/15/2033 | | | 2,000 | | | | 2,021 | |
| Denver City & County School District #1, | | | | | | | | |
| Series A (STAID) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 1,000 | | | | 1,024 | |
First American Funds 2009 Annual Report 41
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Colorado Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Denver West Metropolitan School District | | | | | | | | |
| 4.125%, 12/01/2014 | | $ | 150 | | | $ | 138 | |
| 4.200%, 12/01/2015 | | | 480 | | | | 433 | |
| Gunnison Watershed School District, #RE1J | | | | | | | | |
| Series 2009 (STAID) | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 1,059 | |
| 5.250%, 12/01/2033 | | | 1,800 | | | | 1,843 | |
| North Range Metropolitan District #1 (ACA) | | | | | | | | |
| 4.250%, 12/15/2018 | | | 560 | | | | 390 | |
| Pueblo County School District #70, Pueblo Rural (FGIC) (NATL) (STAID) | | | | | | | | |
| 5.000%, 12/01/2019 | | | 295 | | | | 324 | |
| Puerto Rico Commonwealth, Series A | | | | | | | | |
| 5.500%, 07/01/2018 | | | 500 | | | | 484 | |
| Series C-7 (NATL) | | | | | | | | |
| 6.000%, 07/01/2027 | | | 250 | | | | 248 | |
| Puerto Rico Commonwealth, Public Improvement, Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 375 | | | | 335 | |
| Rio Blanco County School District, #RE1, Meeker (STAID) | | | | | | | | |
| 5.250%, 12/01/2022 | | | 500 | | | | 534 | |
| 5.250%, 12/01/2024 | | | 150 | | | | 159 | |
| SBC Metropolitan School District (ACA) | | | | | | | | |
| 4.250%, 12/01/2015 | | | 445 | | | | 450 | |
| Westglenn Metropolitan School District | | | | | | | | |
| 6.000%, 12/01/2014 | | | 1,220 | | | | 1,227 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 11,341 | |
| | | | | | | | | |
| Certificates of Participation – 6.6% |
| Broomfield Open Space Park & Recreation Facilities (AMBAC) | | | | | | | | |
| 5.500%, 12/01/2020 | | | 800 | | | | 827 | |
| Colorado Higher Education Capital Construction Lease | | | | | | | | |
| 5.500%, 11/01/2019 | �� | | 425 | | | | 462 | |
| 5.500%, 11/01/2027 | | | 1,720 | | | | 1,786 | |
| Colorado Springs, Public Facilities Authority, Old City Hall Project (FSA) | | | | | | | | |
| 5.500%, 12/01/2020 | | | 200 | | | | 208 | |
| Garfield County Building Corporation (AMBAC) | | | | | | | | |
| 5.300%, 12/01/2011 | | | 400 | | | | 410 | |
| Pueblo County, Capital Construction Corporation | | | | | | | | |
| 4.400%, 12/01/2016 | | | 410 | | | | 412 | |
| 5.000%, 12/01/2024 | | | 200 | | | | 192 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 4,297 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $65,861) | | | | | | | 64,848 | |
| | | | | | | | | |
Short-Term Investment – 0.6% |
First American Tax Free Obligations Fund, Class Z Å | | | | | | | | |
(Cost $400) | | | 399,662 | | | | 400 | |
| | | | | | | | | |
Total Investments 5 – 99.6% | | | | | | | | |
(Cost $66,261) | | | | | | | 65,248 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.4% | | | | | | | 252 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 65,500 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
Colorado Tax Free Fund (concluded)
| | |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $66,261. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,765 | |
| Gross unrealized depreciation | | | (2,778 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (1,013 | ) |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $2,418, which represents 3.7% of total net assets. |
| |
| CIFG – | CDC IXIS Financial Guaranty |
| |
| COMGTY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FSA – | Financial Security Assurance |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SMO – | State Moral Obligation |
| |
| STAID – | State Aid Withholding |
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
Municipal Bonds – 96.7% |
| Alabama – 1.6% |
| Revenue Bonds – 1.3% |
| Anniston Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity | | | | | | | | |
| 8.000%, 07/01/2011 § | | $ | 890 | | | $ | 950 | |
| Health Care Authority for Baptist Health, Series D | | | | | | | | |
| 5.000%, 11/15/2015 | | | 755 | | | | 735 | |
| Huntsville Electric System (FSA) | | | | | | | | |
| 4.000%, 12/01/2018 | | | 1,130 | | | | 1,159 | |
| University of Alabama at Birmingham Hospital, Series A | | | | | | | | |
| 5.000%, 09/01/2018 | | | 1,500 | | | | 1,531 | |
| 5.750%, 09/01/2022 | | | 4,000 | | | | 4,173 | |
| | | | | | | | | |
| | | | | | | | 8,548 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Mobile, Series B | | | | | | | | |
| 5.000%, 02/15/2020 | | | 2,000 | | | | 2,161 | |
| | | | | | | | | |
| | | | | | | | 10,709 | |
| | | | | | | | | |
Alaska – 0.0% |
| Revenue Bond – 0.0% |
| Aleutians East Borough Project, Aleutian Pribilof Islands (ACA) | | | | | | | | |
| 4.375%, 06/01/2015 | | | 400 | | | | 318 | |
| | | | | | | | | |
Arizona – 4.3% |
| Revenue Bonds – 2.6% |
| Arizona Game & Fish Department, AGF Administration Building Project | | | | | | | | |
| 4.500%, 07/01/2015 | | | 150 | | | | 154 | |
| Arizona Health Facilities Authority, The Terraces Project, Series A | | | | | | | | |
| Pre-refunded 11/15/2013 @ 101 | | | | | | | | |
7.500%, 11/15/2023 ◊ | | | 3,300 | | | | 3,926 | |
| Gilbert Public Facilities Municipal Property Corporation | | | | | | | | |
| 5.500%, 07/01/2027 | | | 6,000 | | | | 6,191 | |
| Phoenix Street & Highway User, Escrowed to Maturity | | | | | | | | |
| 6.500%, 07/01/2009 § | | | 180 | | | | 180 | |
| 6.250%, 07/01/2011 § | | | 900 | | | | 916 | |
| Scottsdale Industrial Development Authority Hospital, Scottsdale Healthcare, Series A | | | | | | | | |
| 5.000%, 09/01/2020 | | | 1,000 | | | | 978 | |
| Tempe Industrial Development Authority, Friendship Village Project, Series A | | | | | | | | |
| 5.375%, 12/01/2013 | | | 1,022 | | | | 959 | |
| Tucson Airport Authority (FSA) | | | | | | | | |
| 5.000%, 06/01/2013 | | | 3,760 | | | | 4,147 | |
| | | | | | | | | |
| | | | | | | | 17,451 | |
| | | | | | | | | |
| General Obligations – 1.1% |
| Coconino & Yavapai Counties Joint Unified School District #9, Sedona School Improvement Project 2007, Series B | | | | | | | | |
| 5.375%, 07/01/2028 | | | 1,350 | | | | 1,376 | |
| Gila County Unified School District #10, Payson School Improvement Project of 2006, | | | | | | | | |
| Series A, 1.000% through 07/01/2009, thereafter 5.000% (AMBAC) | | | | | | | | |
| 1.000%, 07/01/2016 | | | 1,000 | | | | 994 | |
| 1.000%, 07/01/2017 | | | 1,050 | | | | 1,031 | |
| Maricopa County School District #69, Paradise Valley (NATL) | | | | | | | | |
| 5.300%, 07/01/2011 | | | 1,000 | | | | 1,067 | |
| Maricopa County Unified School District #48, Scottsdale School Improvement Project 2004, Series B (FSA) | | | | | | | | |
| 4.750%, 07/01/2018 | | | 1,150 | | | | 1,234 | |
| Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) (NATL) | | | | | | | | |
| 4.375%, 07/01/2018 | | | 1,000 | | | | 1,016 | |
| 4.500%, 07/01/2019 | | | 1,000 | | | | 1,014 | |
| | | | | | | | | |
| | | | | | | | 7,732 | |
| | | | | | | | | |
| Certificate of Participation – 0.6% |
| Arizona Board of Regents, Series B (AMBAC) | | | | | | | | |
| 4.500%, 06/01/2018 | | | 4,120 | | | | 4,186 | |
| | | | | | | | | |
| | | | | | | | 29,369 | |
| | | | | | | | | |
Arkansas – 0.6% |
| Revenue Bonds – 0.6% |
| North Little Rock Health Facilities Board, Baptist Health, Series B | | | | | | | | |
| 5.750%, 12/01/2021 | | | 1,000 | | | | 1,030 | |
| Pulaski County Residential Housing Facilities Board, Escrowed to Maturity (FGIC) (FHA) (VA) | | | | | | | | |
| 7.250%, 06/01/2010 § | | | 380 | | | | 399 | |
| University of Arkansas, Fayetteville, Series B (FGIC) (NATL) | | | | | | | | |
| 4.500%, 11/01/2016 | | | 1,500 | | | | 1,582 | |
| Washington County Hospital, Regional Medical Center, Series B | | | | | | | | |
| 5.000%, 02/01/2016 | | | 1,145 | | | | 1,123 | |
| | | | | | | | | |
| | | | | | | | 4,134 | |
| | | | | | | | | |
California – 7.2% |
| Revenue Bonds – 4.1% |
| Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.430%, 10/01/2014 ¤ | | | 2,000 | | | | 1,509 | |
| Apple Valley Redevelopment Agency, Tax Allocation, Project Area #2 (AMBAC) | | | | | | | | |
| 4.500%, 06/01/2018 | | | 920 | | | | 847 | |
| Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Children’s Hospital, Series A | | | | | | | | |
| 4.500%, 12/01/2018 | | | 1,525 | | | | 1,433 | |
| Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care Alliance (CMI) | | | | | | | | |
| 4.500%, 08/15/2012 | | | 335 | | | | 347 | |
| 5.000%, 08/15/2017 | | | 1,215 | | | | 1,233 | |
| California Department of Water Resources and Power Supply, Series H (FSA) | | | | | | | | |
| 5.000%, 05/01/2022 | | | 1,000 | | | | 1,025 | |
| California Educational Facilities Authority, Lutheran University, Series C | | | | | | | | |
| 5.000%, 10/01/2024 | | | 1,000 | | | | 861 | |
| California Health Facilities Financing Authority, Adventist Health System West, Series C | | | | | | | | |
| 5.125%, 03/01/2020 | | | 500 | | | | 481 | |
| California Health Facilities Financing Authority, Children’s Hospital of Orange County, Series A | | | | | | | | |
| 5.750%, 11/01/2018 | | | 3,000 | | | | 3,000 | |
First American Funds 2009 Annual Report 43
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
California Municipal Finance Authority, Solid Waste Disposal, Waste Management Incorporated Project
Mandatory Put 09/01/2009 @ 100 (AMT) | | | | | | | | |
| 4.100%, 09/01/2014 | | $ | 250 | | | $ | 250 | |
| California Public Works Board, Trustees California State University, Series D | | | | | | | | |
| 6.000%, 04/01/2025 | | | 2,245 | | | | 2,259 | |
| California Statewide Communities Development Authority, Elder Care Alliance, Series A Escrowed to Maturity | | | | | | | | |
| 7.250%, 11/15/2011 § | | | 795 | | | | 852 | |
| California Statewide Communities Development Authority, Health Facilities, Adventist Health, Series A | | | | | | | | |
| 5.000%, 03/01/2030 | | | 700 | | | | 589 | |
| California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital, Series B (AMBAC) (CMI) | | | | | | | | |
| 5.200%, 10/01/2037 | | | 1,000 | | | | 857 | |
California Statewide Communities Development Authority, Kaiser Permanente, Series C
Mandatory Put 06/01/2012 @ 100 | | | | | | | | |
| 3.850%, 11/01/2029 | | | 1,180 | | | | 1,191 | |
| California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | | | | | | | | |
| 5.000%, 11/15/2012 | | | 1,210 | | | | 1,251 | |
California Statewide Communities Development Authority, Pollution Control, Southern California Edison Company, Series C
Mandatory Put 11/01/2016 @ 100 (FGIC) | | | | | | | | |
| 4.250%, 11/01/2033 | | | 500 | | | | 455 | |
Golden State Tobacco Securitization Corporation Pre-refunded 06/01/2010 @ 100 | | | | | | | | |
5.600%, 06/01/2028 ◊ | | | 2,450 | | | | 2,565 | |
| Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Series A Convertible CABs (FSA) | | | | | | | | |
0.000% through 06/01/2010,
thereafter 4.550%, 06/01/2022 ◗ | | | 2,350 | | | | 1,960 | |
| Port Oakland Series B (NATL) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,470 | | | | 1,487 | |
| San Bernardino County Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 575 | | | | 557 | |
| Upland Community Redevelopment Agency, Tax Allocation, Merged Project (AMBAC) | | | | | | | | |
| 4.250%, 09/01/2026 | | | 1,100 | | | | 840 | |
| Whittier Public Financing Authority, Redevelopment Agency, Tax Allocation, Series A (AMBAC) | | | | | | | | |
| 5.000%, 11/01/2021 | | | 995 | | | | 922 | |
| Woodland Financial Authority (SGI) | | | | | | | | |
| 4.700%, 03/01/2019 | | | 815 | | | | 813 | |
| | | | | | | | | |
| | | | | | | | 27,584 | |
| | | | | | | | | |
| General Obligations – 3.1% |
| ABC Unified School District, Series A (NATL) | | | | | | | | |
| 4.900%, 02/01/2020 | | | 1,565 | | | | 1,514 | |
| California | | | | | | | | |
| 5.000%, 02/01/2016 | | | 1,000 | | | | 1,019 | |
| 5.000%, 02/01/2017 | | | 2,000 | | | | 2,017 | |
| 4.000%, 08/01/2017 | | | 2,000 | | | | 1,893 | |
| 5.000%, 11/01/2018 | | | 245 | | | | 244 | |
| 5.000%, 08/01/2019 | | | 500 | | | | 493 | |
| 5.000%, 02/01/2021 | | | 1,500 | | | | 1,455 | |
| 5.000%, 12/01/2023 | | | 1,000 | | | | 947 | |
| 5.125%, 04/01/2024 | | | 500 | | | | 475 | |
| Pre-refunded 11/01/2011 @ 100 | | | | | | | | |
5.000%, 11/01/2018 ◊ | | | 15 | | | | 16 | |
| Desert Sands Unified School District, Election of 2001 | | | | | | | | |
| 5.250%, 08/01/2023 | | | 500 | | | | 525 | |
| 5.000%, 08/01/2024 | | | 2,000 | | | | 2,041 | |
| Grant Joint Union High School District, Election of 2006, Zero Coupon Bond (FSA) | | | | | | | | |
6.450%, 08/01/2026 ¤ | | | 1,300 | | | | 439 | |
| Roseville Joint Union High School District, Series E | | | | | | | | |
| 5.100%, 08/01/2019 | | | 390 | | | | 402 | |
| San Bernardino Community College District, Election of 2002, Series A | | | | | | | | |
| 6.500%, 08/01/2027 | | | 1,000 | | | | 1,128 | |
| San Mateo Unified High School District, | | | | | | | | |
| Series B, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
4.462%, 09/01/2017 ¤ | | | 1,000 | | | | 697 | |
| Santa Ana Union School District, Election of 2008, Series A | | | | | | | | |
| 5.250%, 08/01/2028 | | | 1,000 | | | | 1,004 | |
| Santa Monica Community College District, 2002 Election, Series C, Zero Coupon Bond (NATL) | | | | | | | | |
4.236%, 08/01/2016 ¤ | | | 2,000 | | | | 1,483 | |
| Victor Elementary School District, Series A Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
6.168%, 08/01/2023 ¤ | | | 2,030 | | | | 863 | |
| West Contra Costa Unified School District, Election of 2005, Series B | | | | | | | | |
| 6.000%, 08/01/2025 | | | 2,500 | | | | 2,696 | |
| | | | | | | | | |
| | | | | | | | 21,351 | |
| | | | | | | | | |
| | | | | | | | 48,935 | |
| | | | | | | | | |
Colorado – 8.7% |
| Revenue Bonds – 8.0% |
| Adams County Pollution Control, Public Service Company, Colorado Project, Series A (NATL) | | | | | | | | |
| 4.375%, 09/01/2017 | | | 5,000 | | | | 4,329 | |
| Adams State College Auxiliary Facilities Improvement, Series A (STAID) | | | | | | | | |
| 5.500%, 05/15/2039 | | | 525 | | | | 534 | |
| Arapahoe County, Single Family Mortgage, Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
1.192%, 09/01/2010 § ¤ | | | 9,320 | | | | 9,192 | |
Colorado Educational & Cultural Facilities Authority, Bromley East Charter School Project, Series A, Pre-refunded 09/15/2011 @ 100 | | | | | | | | |
6.750%, 09/15/2015 ◊ | | | 1,200 | | | | 1,345 | |
| Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School, Series A (SMO) | | | | | | | | |
| 4.750%, 06/15/2022 | | | 175 | | | | 168 | |
| Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School, Escrowed to Maturity | | | | | | | | |
| 6.375%, 12/01/2011 § | | | 390 | | | | 415 | |
| Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
6.750%, 12/01/2016 ◊ | | | 1,500 | | | | 1,701 | |
7.250%, 12/01/2021 ◊ | | | 1,500 | | | | 1,717 | |
| Colorado Educational & Cultural Facilities Authority, Pinnacle Charter School Project, Escrowed to Maturity | | | | | | | | |
| 5.250%, 12/01/2011 § | | | 630 | | | | 665 | |
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Colorado Health Facilities Authority, Catholic Health, Series C-7 (FSA) | | | | | | | | |
| 4.350%, 09/01/2020 | | $ | 725 | | | $ | 700 | |
| Colorado Health Facilities Authority, Catholic Health Initiatives, Series D | | | | | | | | |
| 5.125%, 10/01/2017 | | | 1,500 | | | | 1,542 | |
| Colorado Health Facilities Authority, Christian Living Communities Project, Series A | | | | | | | | |
| 5.250%, 01/01/2014 | | | 600 | | | | 593 | |
| 5.250%, 01/01/2015 | | | 620 | | | | 604 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.000%, 12/01/2016 | | | 500 | | | | 465 | |
| Colorado Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | | | | | | | | |
| 4.250%, 12/01/2015 | | | 1,250 | | | | 1,137 | |
| Colorado Health Facilities Authority, Parkview Medical Center | | | | | | | | |
| 5.000%, 09/01/2016 | | | 640 | | | | 646 | |
| Colorado Health Facilities Authority, Retirement Facilities, Liberty, Series B Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
4.603%, 07/15/2020 § ¤ | | | 10,000 | | | | 6,050 | |
| Colorado Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 05/15/2012 | | | 500 | | | | 501 | |
| 5.000%, 05/15/2013 | | | 405 | | | | 403 | |
| Colorado Springs Hospital, Series B (AMBAC) | | | | | | | | |
3.670%, 12/15/2024 Y | | | 5,000 | | | | 5,000 | |
E-470 Public Highway Authority, Series C Convertible CABs, (NATL) | | | | | | | | |
0.000% through 09/01/2011,
thereafter 5.000%, 09/01/2017 ◗ | | | 1,500 | | | | 1,442 | |
| High Plains Metropolitan District, Series B (LOC: Compass Bank) | | | | | | | | |
| 4.375%, 12/01/2015 | | | 320 | | | | 312 | |
| Hyland Hills Metropolitan Park & Recreation District, Special Revenue (ACA) | | | | | | | | |
| 5.000%, 12/15/2015 | | | 500 | | | | 450 | |
| Mesa County | | | | | | | | |
| Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
1.551%, 12/01/2011 § ¤ | | | 5,500 | | | | 5,298 | |
| Montrose Memorial Hospital | | | | | | | | |
| 5.700%, 12/01/2017 | | | 2,170 | | | | 2,080 | |
| Northwest Parkway Public Highway Authority Convertible CABs, Escrowed to Maturity (AMBAC) | | | | | | | | |
0.000% through 06/15/2011,
thereafter 5.250%, 06/15/2015 § ◗ | | | 2,750 | | | | 2,788 | |
| Platte River Power Authority, Series GG (FSA) | | | | | | | | |
| 4.500%, 06/01/2017 | | | 1,725 | | | | 1,871 | |
| Walker Field Public Airport Authority | | | | | | | | |
| 5.000%, 12/01/2022 | | | 1,000 | | | | 883 | |
| Western State College (STAID) | | | | | | | | |
| 5.000%, 05/15/2028 | | | 570 | | | | 565 | |
| 5.000%, 05/15/2029 | | | 500 | | | | 491 | |
| | | | | | | | | |
| | | | | | | | 53,887 | |
| | | | | | | | | |
| General Obligations – 0.3% |
| Adams & Arapahoe Counties Joint School District, #28J, Aurora (STAID) | | | | | | | | |
| 5.500%, 12/01/2021 | | | 1,125 | | | | 1,251 | |
| North Range Metropolitan District #1 (ACA) | | | | | | | | |
| 4.300%, 12/15/2019 | | | 1,000 | | | | 675 | |
| | | | | | | | | |
| | | | | | | | 1,926 | |
| | | | | | | | | |
| Certificates of Participation – 0.4% |
| Colorado Higher Education, Capital Construction Lease Program | | | | | | | | |
| 5.250%, 11/01/2023 | | | 1,500 | | | | 1,562 | |
| Rangeview Library District Projects (AGTY) | | | | | | | | |
| 4.500%, 12/15/2020 | | | 1,465 | | | | 1,506 | |
| | | | | | | | | |
| | | | | | | | 3,068 | |
| | | | | | | | | |
| | | | | | | | 58,881 | |
| | | | | | | | | |
Connecticut – 0.1% |
| Revenue Bond – 0.1% |
| Connecticut Health & Educational Facilities Authority, Griffin Hospital, Series B (RAAI) | | | | | | | | |
| 5.000%, 07/01/2014 | | | 1,000 | | | | 983 | |
| | | | | | | | | |
Florida – 1.9% |
| Revenue Bonds – 1.6% |
| Halifax Hospital Medical Center, Series A | | | | | | | | |
| 5.250%, 06/01/2026 | | | 2,250 | | | | 1,943 | |
Highlands County Health Facilities Authority, Adventist Health/Sunbelt, Series A
Mandatory Put 11/17/2015 @ 100 | | | | | | | | |
| 6.500%, 11/15/2038 | | | 2,000 | | | | 2,225 | |
| Miami-Dade County Educational Facilities Authority, University of Miami, Series A | | | | | | | | |
| 5.150%, 04/01/2023 | | | 2,520 | | | | 2,528 | |
| North Brevard County Hospital, Parrish Medical Center Project | | | | | | | | |
| 5.500%, 10/01/2028 | | | 2,100 | | | | 2,042 | |
| Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community | | | | | | | | |
| 5.250%, 10/01/2013 | | | 1,400 | | | | 1,349 | |
| Vero Beach Electric, Series A (FSA) | | | | | | | | |
| 4.000%, 12/01/2019 | | | 350 | | | | 343 | |
| | | | | | | | | |
| | | | | | | | 10,430 | |
| | | | | | | | | |
| Certificate of Participation – 0.3% |
| Clay County School Board, Series B (NATL) | | | | | | | | |
| 5.000%, 07/01/2018 | | | 2,205 | | | | 2,203 | |
| | | | | | | | | |
| | | | | | | | 12,633 | |
| | | | | | | | | |
| Georgia – 1.3% |
| Revenue Bonds – 1.1% |
| Atlanta Tax Allocation, Atlantic Station Project (AGTY) | | | | | | | | |
| 4.375%, 12/01/2018 | | | 2,000 | | | | 1,939 | |
| Fulton County Residential Care Facilities, Canterbury Court Project, Series A | | | | | | | | |
| 5.800%, 02/15/2018 | | | 4,500 | | | | 3,833 | |
| Glynn-Brunswick Memorial Hospital Authority, Southeast Georgia Health, Series A | | | | | | | | |
| 5.250%, 08/01/2023 | | | 2,000 | | | | 1,973 | |
| | | | | | | | | |
| | | | | | | | 7,745 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 45
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| General Obligations – 0.2% |
| Fayette County School District, Convertible CABs | | | | | | | | |
| (FSA) | | | | | | | | |
0.000% through 09/01/2010,
thereafter 4.150%, 03/01/2014 ◗ | | $ | 500 | | | $ | 509 | |
0.000% through 09/01/2010,
thereafter 4.250%, 03/01/2015 ◗ | | | 265 | | | | 271 | |
0.000% through 09/01/2010,
thereafter 4.350%, 03/01/2016 ◗ | | | 300 | | | | 306 | |
| | | | | | | | | |
| | | | | | | | 1,086 | |
| | | | | | | | | |
| | | | | | | | 8,831 | |
| | | | | | | | | |
Idaho – 0.7% |
| Revenue Bonds – 0.6% |
| Idaho Health Facilities Authority, Trinity Health Group, Series B | | | | | | | | |
| 6.000%, 12/01/2023 | | | 3,000 | | | | 3,193 | |
University of Idaho, Series B
Mandatory Put 04/01/2018 @ 100 (FSA) | | | | | | | | |
| 4.500%, 04/01/2041 | | | 1,000 | | | | 1,000 | |
| | | | | | | | | |
| | | | | | | | 4,193 | |
| | | | | | | | | |
| Certificates of Participation – 0.1% |
| Madison County Hospital | | | | | | | | |
| 5.000%, 09/01/2012 | | | 500 | | | | 491 | |
| 5.250%, 09/01/2016 | | | 150 | | | | 142 | |
| | | | | | | | | |
| | | | | | | | 633 | |
| | | | | | | | | |
| | | | | | | | 4,826 | |
| | | | | | | | | |
Illinois – 17.1% |
| Revenue Bonds – 7.5% |
| Chicago Water | | | | | | | | |
| Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
1.075%, 11/01/2009 ¤ | | | 6,450 | | | | 6,427 | |
| Chicago, Midway Airport Project, Series C (NATL) | | | | | | | | |
| 5.500%, 01/01/2014 | | | 1,300 | | | | 1,419 | |
| Granite Single Family Mortgage, Series C Escrowed to Maturity | | | | | | | | |
| 7.750%, 10/01/2011 § | | | 395 | | | | 431 | |
| Illinois Development Finance Authority, Elgin School District, Zero Coupon Bond (FSA) | | | | | | | | |
4.249%, 01/01/2018 ¤ | | | 2,750 | | | | 1,923 | |
Illinois Development Finance Authority, Elmhurst Community School District #205 Pre-refunded 01/01/2011 @ 100 (FSA) | | | | | | | | |
6.375%, 01/01/2013 ◊ | | | 1,025 | | | | 1,102 | |
| Illinois Development Finance Authority, Midwestern University, Series B | | | | | | | | |
| Pre-refunded 05/15/2011 @ 101 | | | | | | | | |
5.750%, 05/15/2016 ◊ | | | 350 | | | | 382 | |
Illinois Educational Facilities Authority, Art Institute of Chicago
Mandatory Put 03/01/2017 @ 100 | | | | | | | | |
| 4.750%, 03/01/2030 | | | 1,000 | | | | 1,056 | |
Illinois Educational Facilities Authority, Art Institute of Chicago
Mandatory Put 03/01/2016 @ 100 | | | | | | | | |
| 4.125%, 03/01/2030 | | | 500 | | | | 512 | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | | | | | | | |
| 5.400%, 05/15/2014 | | | 1,000 | | | | 700 | |
| 5.500%, 05/15/2015 | | | 1,000 | | | | 650 | |
| Illinois Finance Authority, Edward Hospital, | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 6.000%, 02/01/2025 | | | 1,200 | | | | 1,206 | |
| 6.000%, 02/01/2026 | | | 1,280 | | | | 1,283 | |
| 6.000%, 02/01/2028 | | | 500 | | | | 498 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 1,000 | | | | 685 | |
| Illinois Finance Authority, Friendship Village Schaumburg, Series A | | | | | | | | |
| 5.000%, 02/15/2015 | | | 2,500 | | | | 2,234 | |
| Illinois Finance Authority, Landing at Plymouth Project, Series A | | | | | | | | |
| 5.250%, 05/15/2014 | | | 1,320 | | | | 1,212 | |
| Illinois Finance Authority, OSF Healthcare System, Series A | | | | | | | | |
| 7.000%, 11/15/2029 | | | 4,000 | | | | 4,132 | |
Illinois Finance Authority, Peoples Gas, Light and Coke Co., Series A
Mandatory Put 06/01/2016 @ 100 (AMBAC) | | | | | | | | |
| 4.300%, 06/01/2035 | | | 1,500 | | | | 1,470 | |
| Illinois Finance Authority, Roosevelt University | | | | | | | | |
| 5.250%, 04/01/2022 | | | 500 | | | | 460 | |
| 5.400%, 04/01/2027 | | | 1,750 | | | | 1,566 | |
| Illinois Finance Authority, Rush University Medical Center, Series A | | | | | | | | |
| 6.750%, 11/01/2024 | | | 2,000 | | | | 2,141 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.500%, 02/15/2014 | | | 2,430 | | | | 2,285 | |
| Illinois Health Facilities Authority, Evangelical Escrowed to Maturity | | | | | | | | |
| 6.750%, 04/15/2012 § | | | 845 | | | | 887 | |
| Illinois Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity | | | | | | | | |
| 10.000%, 01/01/2015 § | | | 525 | | | | 653 | |
| Illinois Sales Tax, Series S | | | | | | | | |
| 5.100%, 06/15/2010 | | | 2,000 | | | | 2,087 | |
| Illinois Sports Facilities Authority, State Tax Supported, Convertible CABs (AMBAC) | | | | | | | | |
0.000% through 06/15/2010,
thereafter 4.750%, 06/15/2013 ◗ | | | 1,405 | | | | 1,452 | |
0.000% through 06/15/2010,
thereafter 5.100%, 06/15/2016 ◗ | | | 1,620 | | | | 1,689 | |
| Metropolitan Pier & Exposition Authority, State Sales Tax, | | | | | | | | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.550%, 12/15/2011 | | | 675 | | | | 693 | |
| Series B, Convertible CABs (NATL) | | | | | | | | |
0.000% through 06/15/2012,
thereafter 5.200%, 06/15/2017 ◗ | | | 1,000 | | | | 956 | |
| Morton Grove, Residential Housing Escrowed to Maturity (NATL) | | | | | | | | |
| 7.350%, 09/01/2009 § | | | 5,570 | | | | 5,635 | |
| Southwestern Illinois Development Authority, Anderson Hospital | | | | | | | | |
| 5.125%, 08/15/2026 | | | 2,000 | | | | 1,617 | |
The accompanying notes are an integral part of the financial statements.
46 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Southwestern Illinois Development Authority, Local Government Program, Triad School District #2 (NATL) | | | | | | | | |
| 5.000%, 10/01/2018 | | $ | 1,000 | | | $ | 1,049 | |
| | | | | | | | | |
| | | | | | | | 50,492 | |
| | | | | | | | | |
| General Obligations – 9.6% |
| Bolingbrook Park District, Series A (CIFG) | | | | | | | | |
| 4.500%, 01/01/2017 | | | 1,840 | | | | 1,912 | |
| Chicago, Series A, Convertible CABs (NATL) | | | | | | | | |
0.000% through 01/01/2011,
thereafter 5.300%, 01/01/2016 ◗ | | | 2,000 | | | | 2,102 | |
| Chicago City Colleges Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
3.271%, 01/01/2015 ¤ | | | 7,000 | | | | 5,856 | |
| Chicago Park District, Limited Tax, | | | | | | | | |
| Series B (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2020 | | | 5,545 | | | | 5,777 | |
| Chicago Project & Refunding, Series A (FGIC) (NATL) | | | | | | | | |
| 5.250%, 01/01/2011 | | | 2,345 | | | | 2,475 | |
| Series A, Escrowed to Maturity (FGIC) | | | | | | | | |
| 5.250%, 01/01/2011 § | | | 2,655 | | | | 2,827 | |
| Cook County, Series A (NATL) | | | | | | | | |
| 6.250%, 11/15/2011 | | | 1,000 | | | | 1,108 | |
| Cook County School District #102, La Grange Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
3.139%, 12/01/2013 ¤ | | | 2,440 | | | | 2,126 | |
| Cook County Community Unit School District #401, Elmwood Park Zero Coupon Bond (FSA) | | | | | | | | |
2.409%, 12/01/2011 ¤ | | | 3,625 | | | | 3,421 | |
| Cook County High School District #205, Thornton Township (AGTY) | | | | | | | | |
| 5.250%, 12/01/2021 | | | 3,465 | | | | 3,750 | |
| Cook County High School District #209, Proviso Township (FSA) | | | | | | | | |
| 5.000%, 12/01/2016 | | | 1,000 | | | | 1,113 | |
| Cook County School District #123, Oak Lawn, Zero Coupon Bond (NATL) | | | | | | | | |
4.099%, 12/01/2015 ¤ | | | 2,250 | | | | 1,734 | |
| Cook County School District #88, Bellwood, Series B (FSA) | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,675 | | | | 1,795 | |
| Du Page County Community High School District #94, West Chicago (FSA) | | | | | | | | |
| 7.250%, 11/01/2009 | | | 1,780 | | | | 1,819 | |
| Elk Grove Village (NATL) | | | | | | | | |
| 4.125%, 01/01/2019 | | | 1,000 | | | | 1,023 | |
| Grundy & Will Counties Community Unit School District #1 | | | | | | | | |
| 5.875%, 02/01/2019 | | | 1,550 | | | | 1,739 | |
| 5.875%, 02/01/2022 | | | 2,100 | | | | 2,306 | |
| 5.875%, 02/01/2024 | | | 2,545 | | | | 2,768 | |
| Illinois, First Series | | | | | | | | |
| 5.500%, 08/01/2015 | | | 4,500 | | | | 4,674 | |
| Lake County School District #56, Gurnee (FGIC) (NATL) | | | | | | | | |
| 8.375%, 01/01/2010 | | | 1,290 | | | | 1,336 | |
| Madison & Jersey Counties Unit School District #11, Alton, Zero Coupon Bond (FSA) | | | | | | | | |
4.802%, 12/01/2019 ¤ | | | 2,100 | | | | 1,281 | |
| McCook | | | | | | | | |
| 5.000%, 12/01/2026 | | | 500 | | | | 502 | |
| 5.100%, 12/01/2028 | | | 1,000 | | | | 984 | |
| Rockford School District #205 (FGIC) (NATL) | | | | | | | | |
| 5.000%, 02/01/2014 | | | 500 | | | | 541 | |
| Southwestern Illinois Development Authority, Edwardsville Community (FSA) | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,000 | | | | 1,101 | |
| St Clair County, Alternative Revenue Source | | | | | | | | |
4.500%, 10/01/2020 « | | | 1,000 | | | | 1,012 | |
5.000%, 10/01/2022 « | | | 1,100 | | | | 1,139 | |
| Will & Grundy Counties Community College District #525, Joliet Junior College | | | | | | | | |
| 6.250%, 06/01/2024 | | | 535 | | | | 605 | |
| 5.750%, 06/01/2025 | | | 1,150 | | | | 1,252 | |
| 5.750%, 06/01/2026 | | | 310 | | | | 336 | |
| Will County School District #86, Joliet Zero Coupon Bond (FSA) | | | | | | | | |
4.172%, 11/01/2017 ¤ | | | 3,870 | | | | 2,743 | |
| Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA) | | | | | | | | |
4.950%, 01/01/2017 ¤ | | | 3,000 | | | | 2,079 | |
| | | | | | | | | |
| | | | | | | | 65,236 | |
| | | | | | | | | |
| | | | | | | | 115,728 | |
| | | | | | | | | |
Indiana – 1.3% |
| Revenue Bonds – 1.1% |
| Anderson Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2017 | | | 710 | | | | 632 | |
| Avon Community School Building Corporation, First Mortgage (AMBAC) (STAID) | | | | | | | | |
| 4.500%, 07/15/2020 | | | 1,000 | | | | 1,000 | |
| Indiana Transportation Finance Authority, Series A, Escrowed to Maturity (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 § | | | 180 | | | | 194 | |
| Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 | | | 1,820 | | | | 2,026 | |
| Indiana University, Series K Zero Coupon Bond (NATL) | | | | | | | | |
1.705%, 08/01/2011 ¤ | | | 250 | | | | 241 | |
| Portage Township Multi-School Building Corporation, First Mortgage (NATL) (STAID) | | | | | | | | |
| 4.000%, 07/15/2018 | | | 1,250 | | | | 1,281 | |
| St. Joseph County Economic Development, Holy Cross Village, Notre Dame Project, Series A | | | | | | | | |
| 5.750%, 05/15/2016 | | | 450 | | | | 401 | |
| 5.550%, 05/15/2019 | | | 230 | | | | 187 | |
| St. Joseph County Hospital Authority, Memorial Health System, Series A (NATL) | | | | | | | | |
| 4.750%, 08/15/2012 | | | 1,000 | | | | 1,006 | |
Zionsville Community Schools Building, First Mortgage, Pre-refunded 01/15/2012 @ 100 (FGIC) (STAID) | | | | | | | | |
5.750%, 07/15/2015 ◊ | | | 775 | | | | 861 | |
| | | | | | | | | |
| | | | | | | | 7,829 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Gary Sanitation District, Special Taxing District (RAAI) | | | | | | | | |
| 3.750%, 02/01/2011 | | | 1,260 | | | | 1,243 | |
| | | | | | | | | |
| | | | | | | | 9,072 | |
| | | | | | | | | |
Iowa – 1.4% |
| Revenue Bonds – 1.4% |
| Iowa Finance Authority, Retirement Community, Friendship Haven Project, Series A | | | | | | | | |
| 5.750%, 11/15/2019 | | | 500 | | | | 412 | |
First American Funds 2009 Annual Report 47
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Iowa Higher Education Authority, Private College Facility, Central College Project (RAAI) | | | | | | | | |
| 5.450%, 10/01/2026 | | $ | 1,000 | | | $ | 940 | |
Iowa Higher Education Authority, Wartburg College Project, Pre-refunded 10/01/2012 @ 100 (ACA) | | | | | | | | |
5.500%, 10/01/2028 ◊ | | | 2,000 | | | | 2,259 | |
| Series A | | | | | | | | |
| 4.700%, 10/01/2016 | | | 925 | | | | 871 | |
| 4.750%, 10/01/2017 | | | 1,100 | | | | 1,020 | |
| 4.800%, 10/01/2018 | | | 1,155 | | | | 1,056 | |
| 5.000%, 10/01/2023 | | | 1,475 | | | | 1,286 | |
| Muscatine Electric, Escrowed to Maturity | | | | | | | | |
| 9.700%, 01/01/2013 § | | | 1,140 | | | | 1,341 | |
| | | | | | | | | |
| | | | | | | | 9,185 | |
| | | | | | | | | |
Kansas – 3.4% |
| Revenue Bonds – 2.6% |
| Johnson County Residual, Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
1.956%, 05/01/2012 § ¤ | | | 7,500 | | | | 7,097 | |
| Kansas Development Finance Authority, Adventist Health | | | | | | | | |
5.500%, 11/15/2023 « | | | 2,200 | | | | 2,240 | |
| Kansas Development Finance Authority, Health Facilities, Hays Medical Center, Series L | | | | | | | | |
| 4.500%, 11/15/2017 | | | 1,405 | | | | 1,378 | |
| Kansas Development Finance Authority, Health Facilities, Stormont-Vail Healthcare Services, Series F | | | | | | | | |
| 5.000%, 11/15/2021 | | | 500 | | | | 480 | |
| Kansas Development Finance Authority, Kansas State Projects, Series K (NATL) | | | | | | | | |
| 4.500%, 11/01/2019 | | | 1,850 | | | | 1,929 | |
| La Cygne Environmental Improvement, Kansas City Power & Light (SGI) | | | | | | | | |
| 4.050%, 03/01/2015 | | | 1,000 | | | | 1,028 | |
| Olathe Health Facilities, Olathe Medical Center | | | | | | | | |
| 5.125%, 09/01/2021 | | | 1,000 | | | | 990 | |
| Olathe Senior Living Facility, Catholic Care Campus, Series A | | | | | | | | |
| 5.750%, 11/15/2013 | | | 700 | | | | 673 | |
| 5.750%, 11/15/2014 | | | 765 | | | | 727 | |
| 5.750%, 11/15/2015 | | | 820 | | | | 760 | |
| Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) | | | | | | | | |
| 6.700%, 06/01/2029 | | | 240 | | | | 245 | |
| | | | | | | | | |
| | | | | | | | 17,547 | |
| | | | | | | | | |
| General Obligations – 0.8% |
| Johnson County Unified School District #231, Series B (AMBAC) | | | | | | | | |
| 4.000%, 10/01/2017 | | | 500 | | | | 503 | |
| Johnson County Unified School District #232, Series A (FSA) | | | | | | | | |
| 4.250%, 09/01/2016 | | | 400 | | | | 423 | |
| Johnson County Unified School District #512, Shawnee Mission | | | | | | | | |
| 4.875%, 10/01/2019 | | | 2,000 | | | | 2,177 | |
| Junction City, Series DU (FSA) | | | | | | | | |
| 4.100%, 09/01/2020 | | | 1,500 | | | | 1,489 | |
| Sedgwick County School District #267 (AMBAC) | | | | | | | | |
| 5.250%, 11/01/2012 | | | 1,045 | | | | 1,142 | |
| | | | | | | | | |
| | | | | | | | 5,734 | |
| | | | | | | | | |
| | | | | | | | 23,281 | |
| | | | | | | | | |
Kentucky – 0.6% |
| Revenue Bonds – 0.6% |
Kentucky Economic Development Finance Authority, Louisville Arena Project,
Subseries A-1 (AGTY) | | | | | | | | |
| 5.750%, 12/01/2028 | | | 2,000 | | | | 2,063 | |
| Kentucky Turnpike Authority, Escrowed to Maturity | | | | | | | | |
| 7.200%, 07/01/2009 § | | | 245 | | | | 245 | |
| 6.000%, 07/01/2011 § | | | 365 | | | | 388 | |
| Louisville/Jefferson County Metropolitan Government College, Bellarmine University, Series A | | | | | | | | |
| 6.000%, 05/01/2028 | | | 1,135 | | | | 1,125 | |
| | | | | | | | | |
| | | | | | | | 3,821 | |
| | | | | | | | | |
Louisiana – 0.6% |
| Revenue Bonds – 0.3% |
| Louisiana Local Government Environmental Facilities, Community Development Authority (AMT) | | | | | | | | |
| 6.650%, 01/01/2025 | | | 475 | | | | 384 | |
| St. Tammany Parish Sales Tax, District #3, Sales & Use Tax (CIFG) | | | | | | | | |
| 5.000%, 06/01/2017 | | | 1,405 | | | | 1,458 | |
| | | | | | | | | |
| | | | | | | | 1,842 | |
| | | | | | | | | |
| General Obligations – 0.3% |
| Calcasieu Parish School District #23, Public School Improvement | | | | | | | | |
| 4.600%, 02/15/2020 | | | 500 | | | | 488 | |
| 4.800%, 02/15/2022 | | | 200 | | | | 196 | |
| Louisiana, Series B (CIFG) | | | | | | | | |
| 5.000%, 07/15/2015 | | | 1,300 | | | | 1,408 | |
| | | | | | | | | |
| | | | | | | | 2,092 | |
| | | | | | | | | |
| | | | | | | | 3,934 | |
| | | | | | | | | |
Maine – 0.4% |
| Revenue Bond – 0.1% |
| Maine Health & Higher Educational Facilities Authority, Series B (FGIC) (NATL) | | | | | | | | |
| 4.125%, 07/01/2018 | | | 740 | | | | 758 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Maine Municipal Bond Bank, Series B (FSA) | | | | | | | | |
| 5.750%, 11/01/2010 | | | 2,000 | | | | 2,127 | |
| | | | | | | | | |
| | | | | | | | 2,885 | |
| | | | | | | | | |
Maryland – 0.2% |
| Revenue Bonds – 0.2% |
| Westminster Educational Facilities, McDaniel College | | | | | | | | |
| 5.000%, 11/01/2013 | | | 350 | | | | 370 | |
| 4.000%, 11/01/2015 | | | 700 | | | | 693 | |
| | | | | | | | | |
| | | | | | | | 1,063 | |
| | | | | | | | | |
Massachusetts – 2.5% |
| Revenue Bonds – 2.3% |
| Massachusetts Bay Transportation Authority, Series A (COMGTY) | | | | | | | | |
| 6.250%, 03/01/2012 | | | 1,875 | | | | 2,102 | |
| Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC) (NATL) | | | | | | | | |
| 5.750%, 03/01/2010 | | | 1,100 | | | | 1,138 | |
| Massachusetts, Special Obligation, Series A | | | | | | | | |
| 5.500%, 06/01/2013 | | | 1,000 | | | | 1,128 | |
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Massachusetts Development Finance Agency, Health Care Facilities, Adventcare Project, Series A | | | | | | | | |
| 6.650%, 10/15/2028 | | $ | 2,500 | | | $ | 1,938 | |
| Massachusetts Health & Educational Facilities Authority, Berkshire Health System, Series F (AGTY) | | | | | | | | |
| 5.000%, 10/01/2015 | | | 2,000 | | | | 2,085 | |
| Massachusetts Health & Educational Facilities Authority, Caregroup, Series E-1 | | | | | | | | |
| 5.000%, 07/01/2028 | | | 250 | | | | 223 | |
| Massachusetts Health & Educational Facilities Authority, Partners Healthcare System, Series A (NATL) | | | | | | | | |
| 5.100%, 07/01/2010 | | | 3,000 | | | | 3,007 | |
| Massachusetts Port Authority, Escrowed to Maturity | | | | | | | | |
| 13.000%, 07/01/2013 § | | | 2,935 | | | | 3,628 | |
| | | | | | | | | |
| | | | | | | | 15,249 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Springfield, State Qualified Municipal Purpose Loan (FSA) (STAID) | | | | | | | | |
| 4.500%, 08/01/2020 | | | 1,400 | | | | 1,467 | |
| | | | | | | | | |
| | �� | | | | | | 16,716 | |
| | | | | | | | | |
Michigan – 3.0% |
| Revenue Bonds – 2.4% |
| Detroit Water Supply System | | | | | | | | |
| Escrowed to Maturity (FGIC) | | | | | | | | |
| 6.250%, 07/01/2012 § | | | 230 | | | | 245 | |
| Kalamazoo Hospital Finance Authority, Bronson Hospital, Series A (FSA) | | | | | | | | |
| 5.000%, 05/15/2020 | | | 2,675 | | | | 2,666 | |
| Michigan Grant Anticipation Bonds (FSA) | | | | | | | | |
| 4.500%, 09/15/2015 | | | 1,000 | | | | 1,043 | |
Michigan Hospital Finance Authority, Henry Ford Health System, Series A Pre-refunded 03/01/2013 @ 100 | | | | | | | | |
5.500%, 03/01/2015 ◊ | | | 3,150 | | | | 3,569 | |
| Michigan Municipal Board Authority, Local Government Loan Program, Group A, Series B (AMBAC) | | | | | | | | |
| 5.000%, 12/01/2018 | | | 600 | | | | 599 | |
| Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity | | | | | | | | |
| 7.000%, 11/01/2015 § | | | 1,300 | | | | 1,615 | |
| Wayne Charter County Airport, Series A (AMT) (NATL) | | | | | | | | |
| 5.250%, 12/01/2009 | | | 5,000 | | | | 5,035 | |
| Western Michigan University (FSA) | | | | | | | | |
| 5.000%, 11/15/2023 | | | 1,300 | | | | 1,352 | |
| | | | | | | | | |
| | | | | | | | 16,124 | |
| | | | | | | | | |
| General Obligations – 0.6% |
| Algonac Community Schools, School Building & Site, Series I (FSA) (MQSBLF) | | | | | | | | |
| 4.000%, 05/01/2019 | | | 840 | | | | 834 | |
| Constantine Public Schools (MQSBLF) | | | | | | | | |
| 5.000%, 05/01/2016 | | | 1,075 | | | | 1,168 | |
Rochester Community School District, Series 1 Pre-refunded 05/01/2010 @ 100 (FGIC) (MQSBLF) | | | | | | | | |
5.375%, 05/01/2011 ◊ | | | 2,000 | | | | 2,081 | |
| | | | | | | | | |
| | | | | | | | 4,083 | |
| | | | | | | | | |
| | | | | | | | 20,207 | |
| | | | | | | | | |
Minnesota – 1.9% |
| Revenue Bonds – 1.9% |
| Aitkin Health Care Facilities, Riverwood Healthcare Center | | | | | | | | |
| 5.375%, 02/01/2017 | | | 1,590 | | | | 1,449 | |
| Minneapolis & St. Paul Metropolitan Airports Commission, Series A (NATL) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,165 | | | | 1,196 | |
| Minneapolis Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.375%, 11/15/2023 | | | 2,000 | | | | 2,112 | |
| Minneapolis Hospital, St. Mary’s Hospital & Rehabilitation Center, Escrowed to Maturity | | | | | | | | |
| 10.000%, 06/01/2013 § | | | 550 | | | | 652 | |
| Minnesota Agricultural & Economic Development Board, Health Care System, Series A | | | | | | | | |
| 5.875%, 11/15/2011 | | | 2,135 | | | | 2,223 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2020 | | | 1,255 | | | | 1,169 | |
| 5.500%, 05/01/2021 | | | 815 | | | | 752 | |
| Minnesota Higher Education Facilities Authority, College of Art & Design, Series 6-K | | | | | | | | |
| 5.000%, 05/01/2012 | | | 295 | | | | 313 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, Series C | | | | | | | | |
| 5.250%, 12/01/2011 | | | 1,485 | | | | 1,464 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System, Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 1,235 | | | | 1,243 | |
| | | | | | | | | |
| | | | | | | | 12,573 | |
| | | | | | | | | |
Mississippi – 0.2% |
| Revenue Bond – 0.2% |
| Mississippi Hospital Equipment & Facilities Authority, Mississippi Baptist Health Systems, Series A | | | | | | | | |
| 5.000%, 08/15/2016 | | | 1,440 | | | | 1,415 | |
| | | | | | | | | |
Missouri – 1.9% |
| Revenue Bonds – 1.8% |
| Hannibal Industrial Development Authority, Health Facilities, Hannibal Regional Hospital | | | | | | | | |
| 4.350%, 03/01/2014 | | | 1,405 | | | | 1,372 | |
| Kansas City Special Obligation, East Village Project, Series B (AGTY) | | | | | | | | |
| 5.000%, 04/15/2022 | | | 505 | | | | 533 | |
| Missouri Development Finance Board Infrastructure Facilities, Independence-Crackerneck Creek, Series B | | | | | | | | |
| 5.125%, 03/01/2022 | | | 2,000 | | | | 1,805 | |
| Missouri Development Finance Board, Infrastructure Facilities, Independence Electric System Project, Series D | �� | | | | | | | |
| 5.625%, 06/01/2029 | | | 1,250 | | | | 1,257 | |
| Missouri Development Finance Board, Midwest Research Institute Project | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,130 | | | | 1,026 | |
| Missouri Health & Educational Facilities Authority, Senior Living Facilities, Lutheran, Series B | | | | | | | | |
| 4.350%, 02/01/2015 | | | 850 | | | | 782 | |
| 4.375%, 02/01/2016 | | | 930 | | | | 838 | |
| Missouri Joint Municipal Electric Utilities, Commission Power Project, Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2018 | | | 2,000 | | | | 2,081 | |
First American Funds 2009 Annual Report 49
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Missouri Joint Municipal Electric Utilities, Commission Power Project, Plum Point Project (NATL) | | | | | | | | |
| 4.200%, 01/01/2018 | | $ | 1,000 | | | $ | 905 | |
| Osage Beach Tax Increment, Prewitts Point Project | | | | | | | | |
| 4.800%, 05/01/2016 | | | 1,650 | | | | 1,361 | |
| | | | | | | | | |
| | | | | | | | 11,960 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Missouri Development Finance Board, Infrastructure Facilities, Independence-Centerpoint, Series F | | | | | | | | |
| 5.375%, 04/01/2024 | | | 1,000 | | | | 959 | |
| | | | | | | | | |
| | | | | | | | 12,919 | |
| | | | | | | | | |
Montana – 0.5% |
| Revenue Bonds – 0.5% |
| Montana Facilities Finance Authority, Health Care Facilities, Master Loan Project, Northeast Montana, Series B | | | | | | | | |
| 4.500%, 05/01/2018 | | | 405 | | | | 408 | |
| Montana Facilities Finance Authority, Senior Living, St. Johns Lutheran, Series A | | | | | | | | |
| 5.750%, 05/15/2016 | | | 1,800 | | | | 1,568 | |
| 6.000%, 05/15/2025 | | | 1,675 | | | | 1,271 | |
| | | | | | | | | |
| | | | | | | | 3,247 | |
| | | | | | | | | |
Nebraska – 1.5% |
| Revenue Bonds – 1.5% |
| Douglas County Hospital Authority #2, Nebraska Medical Center, Clarkson Regional Health Guaranty (AGTY) | | | | | | | | |
| 5.000%, 11/15/2011 | | | 2,860 | | | | 2,962 | |
| Douglas County Hospital Authority #3, Methodist Health | | | | | | | | |
| 5.750%, 11/01/2028 | | | 1,000 | | | | 946 | |
| Douglas County Zoo Facilities, Omaha’s Henry Doorly Zoo Project | | | | | | | | |
| 4.750%, 09/01/2017 | | | 745 | | | | 759 | |
| 4.750%, 09/01/2018 | | | 740 | | | | 746 | |
| Lancaster County Hospital Authority #1, BryanLGH Medical Center Project | | | | | | | | |
| 4.000%, 06/01/2018 | | | 2,000 | | | | 1,870 | |
| Nebraska Investment Finance Authority, Great Plains Regional Medical Center Project (RAAI) | | | | | | | | |
| 4.700%, 11/15/2011 | | | 500 | | | | 517 | |
| 4.800%, 11/15/2012 | | | 500 | | | | 518 | |
| 4.900%, 11/15/2013 | | | 600 | | | | 619 | |
| Omaha Public Power District, Nebraska Electric, Series A | | | | | | | | |
| 4.100%, 02/01/2019 | | | 1,370 | | | | 1,399 | |
| | | | | | | | | |
| | | | | | | | 10,336 | |
| | | | | | | | | |
Nevada – 0.4% |
| Revenue Bonds – 0.3% |
| Carson City Hospital, Carson-Tahoe Hospital | | | | | | | | |
| 5.750%, 09/01/2011 | | | 550 | | | | 558 | |
| 5.750%, 09/01/2012 | | | 580 | | | | 588 | |
| Escrowed to Maturity | | | | | | | | |
| 5.750%, 09/01/2011 § | | | 450 | | | | 491 | |
| 5.750%, 09/01/2012 § | | | 475 | | | | 534 | |
| | | | | | | | | |
| | | | | | | | 2,171 | |
| | | | | | | | | |
| General Obligation – 0.1% |
| Washoe County, Escrowed to Maturity | | | | | | | | |
| 9.875%, 08/01/2009 § | | | 820 | | | | 827 | |
| | | | | | | | | |
| | | | | | | | 2,998 | |
| | | | | | | | | |
New Hampshire – 0.5% |
| Revenue Bonds – 0.5% |
| New Hampshire Health & Education Facilities Authority, Covenant Health | | | | | | | | |
| 5.375%, 07/01/2024 | | | 1,250 | | | | 1,155 | |
| New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital | | | | | | | | |
| 5.500%, 07/01/2025 | | | 1,000 | | | | 868 | |
| New Hampshire Municipal Bond Bank, Series A (NATL) | | | | | | | | |
| 4.500%, 02/15/2020 | | | 1,300 | | | | 1,371 | |
| | | | | | | | | |
| | | | | | | | 3,394 | |
| | | | | | | | | |
New Jersey – 0.3% |
| Revenue Bond – 0.3% |
| New Jersey Economic Development Authority, Cigarette Tax | | | | | | | | |
| 5.500%, 06/15/2016 | | | 2,000 | | | | 1,896 | |
| | | | | | | | | |
New York – 1.5% |
| Revenue Bond – 0.7% |
| Long Island Power Authority, Series B | | | | | | | | |
| 5.250%, 12/01/2013 | | | 4,000 | | | | 4,324 | |
| | | | | | | | | |
| General Obligations – 0.8% |
| New York | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 08/01/2015 | | | 3,220 | | | | 3,484 | |
| Series D | | | | | | | | |
| 5.500%, 06/01/2012 | | | 2,000 | | | | 2,191 | |
| | | | | | | | | |
| | | | | | | | 5,675 | |
| | | | | | | | | |
| | | | | | | | 9,999 | |
| | | | | | | | | |
North Carolina – 1.9% |
| Revenue Bonds – 1.8% |
| North Carolina Eastern Power Agency | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 5.250%, 01/01/2022 | | | 1,700 | | | | 1,717 | |
| Series D | | | | | | | | |
| 5.375%, 01/01/2013 | | | 2,955 | | | | 3,162 | |
| North Carolina Capital Facilities Finance Agency, Education Facilities, Meredith College | | | | | | | | |
| 5.250%, 06/01/2020 | | | 900 | | | | 874 | |
| North Carolina Medical Care Commission, Health Care Facilities, First Mortgage Presbyterian, Series B | | | | | | | | |
| 4.875%, 10/01/2013 | | | 2,035 | | | | 1,971 | |
| 5.000%, 10/01/2014 | | | 2,120 | | | | 2,028 | |
| North Carolina, Municipal Power Agency #1, Catawba Electric, Series A (FSA) | | | | | | | | |
| 5.250%, 01/01/2016 | | | 2,000 | | | | 2,114 | |
| | | | | | | | | |
| | | | | | | | 11,866 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Randolph County (AMBAC) | | | | | | | | |
| 5.000%, 02/01/2018 | | | 815 | | | | 861 | |
| | | | | | | | | |
| | | | | | | | 12,727 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
50 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
North Dakota – 0.2% |
| Revenue Bond – 0.1% |
| Ward County Health Care Facility, Trinity Obligated Group | | | | | | | | |
| 5.000%, 07/01/2014 | | $ | 1,180 | | | $ | 1,149 | |
| | | | | | | | | |
| General Obligation – 0.1% |
| Mandan, Series D (NATL) | | | | | | | | |
| 4.000%, 05/01/2017 | | | 460 | | | | 463 | |
| | | | | | | | | |
| | | | | | | | 1,612 | |
| | | | | | | | | |
Ohio – 1.4% |
| Revenue Bonds – 0.8% |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.500%, 08/15/2024 | | | 1,230 | | | | 1,110 | |
| Lorain County Hospital, Catholic Healthcare Partners, Series B (NATL) | | | | | | | | |
| 5.375%, 09/01/2009 | | | 1,000 | | | | 1,006 | |
| Miami County Hospital Facilities, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2016 | | | 750 | | | | 716 | |
| Ohio Higher Education Facilities, John Carroll University Project | | | | | | | | |
| 4.000%, 04/01/2014 | | | 1,135 | | | | 1,146 | |
| 4.500%, 04/01/2015 | | | 1,000 | | | | 1,029 | |
| Ohio Water Development Authority, Escrowed to Maturity | | | | | | | | |
| 9.375%, 12/01/2010 § | | | 380 | | | | 400 | |
| | | | | | | | | |
| | | | | | | | 5,407 | |
| | | | | | | | | |
| General Obligations – 0.4% |
| Barberton City School District (OSDCEP) | | | | | | | | |
| 4.750%, 12/01/2021 | | | 1,260 | | | | 1,314 | |
| Mason City School District (FSA) | | | | | | | | |
| 4.375%, 12/01/2019 | | | 1,095 | | | | 1,158 | |
| Richland County, Limited Tax, Correctional Facilities Improvement (AGTY) | | | | | | | | |
| 5.875%, 12/01/2024 | | | 500 | | | | 544 | |
| | | | | | | | | |
| | | | | | | | 3,016 | |
| | | | | | | | | |
| Certificate of Participation – 0.2% |
| Akron (AGTY) | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,000 | | | | 1,104 | |
| | | | | | | | | |
| | | | | | | | 9,527 | |
| | | | | | | | | |
Oklahoma – 1.3% |
| Revenue Bonds – 1.3% |
| Cherokee County Economic Development Authority, Series A, Escrowed to Maturity Zero Coupon Bond (AMBAC) | | | | | | | | |
1.522%, 11/01/2011 § ¤ | | | 3,340 | | | | 3,224 | |
| McClain County Economic Development Authority, Educational Facilities Lease, Newcastle Public Schools Project | | | | | | | | |
| 5.000%, 09/01/2009 | | | 510 | | | | 511 | |
| 5.000%, 09/01/2011 | | | 345 | | | | 350 | |
| 5.000%, 09/01/2012 | | | 355 | | | | 360 | |
| 4.125%, 09/01/2013 | | | 250 | | | | 242 | |
| Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project (AMT) | | | | | | | | |
| 5.750%, 01/01/2023 | | | 1,430 | | | | 1,052 | |
South Oklahoma City Pre-refunded 02/01/2010 @ 100 | | | | | | | | |
9.750%, 02/01/2013 ◊ | | | 2,145 | | | | 2,247 | |
| Tulsa Industrial Authority, Educational Facilities, Holland Hall School Project, Series B | | | | | | | | |
| 4.600%, 12/01/2009 | | | 610 | | | | 616 | |
| | | | | | | | | |
| | | | | | | | 8,602 | |
| | | | | | | | | |
Oregon – 0.2% |
| General Obligation – 0.2% |
| Yamhill County School District #40, McMinnville (FSA) (SBG) | | | | | | | | |
| 5.000%, 06/15/2019 | | | 1,415 | | | | 1,535 | |
| | | | | | | | | |
Pennsylvania – 1.6% |
| Revenue Bonds – 1.3% |
| Allegheny County Hospital, University of Pittsburgh Medical Center, Series B | | | | | | | | |
| 5.000%, 06/15/2018 | | | 3,000 | | | | 3,006 | |
| Delaware County College Authority, Neumann College | | | | | | | | |
| 5.250%, 10/01/2020 | | | 535 | | | | 505 | |
| 5.375%, 10/01/2021 | | | 565 | | | | 534 | |
| Delaware County Hospital Authority, Crozer-Chester Medical Center (RAAI) | | | | | | | | |
| 5.000%, 12/15/2015 | | | 1,275 | | | | 1,136 | |
| 5.000%, 12/15/2017 | | | 1,405 | | | | 1,200 | |
| Montgomery County Industrial Development Authority, Whitemarsh Continuing Care | | | | | | | | |
| 6.125%, 02/01/2028 | | | 1,000 | | | | 664 | |
| Westmoreland County Industrial Development Authority, Retirement Community, Redstone, Series A | | | | | | | | |
| 5.375%, 01/01/2014 | | | 1,100 | | | | 1,025 | |
| 5.500%, 01/01/2016 | | | 1,200 | | | | 1,041 | |
| | | | | | | | | |
| | | | | | | | 9,111 | |
| | | | | | | | | |
| General Obligations – 0.3% |
| Bethel Park School District | | | | | | | | |
| 4.125%, 08/01/2020 (STAID) | | | 1,315 | | | | 1,312 | |
| Ephrata Area School District (FGIC) (NATL) (STAID) | | | | | | | | |
| 4.500%, 04/15/2018 | | | 400 | | | | 407 | |
| | | | | | | | | |
| | | | | | | | 1,719 | |
| | | | | | | | | |
| | | | | | | | 10,830 | |
| | | | | | | | | |
Puerto Rico – 0.7% |
| Revenue Bond – 0.2% |
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2
Mandatory Put 07/01/2017 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.500%, 07/01/2035 | | | 1,000 | | | | 988 | |
| | | | | | | | | |
| General Obligation – 0.5% |
| Puerto Rico Commonwealth, Public Improvement, Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 4,000 | | | | 3,632 | |
| | | | | | | | | |
| | | | | | | | 4,620 | |
| | | | | | | | | |
South Carolina – 1.4% |
| Revenue Bonds – 1.4% |
| Charleston Educational Excellence Financing Corporation, Charleston County School District Project | | | | | | | | |
| 5.000%, 12/01/2013 | | | 2,000 | | | | 2,162 | |
Lexington County Health Services District, Pre-refunded 11/01/2013 @ 100 | | | | | | | | |
5.500%, 11/01/2023 ◊ | | | 2,000 | | | | 2,293 | |
First American Funds 2009 Annual Report 51
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| South Carolina Jobs Economic Development Authority, Palmetto Health Alliance | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 08/01/2013 | | $ | 1,000 | | | $ | 1,031 | |
| Series C | | | | | | | | |
| 6.000%, 08/01/2013 | | | 2,000 | | | | 2,061 | |
| South Carolina Public Service Authority Series A (NATL) | | | | | | | | |
| 5.500%, 01/01/2010 | | | 1,665 | | | | 1,707 | |
| | | | | | | | | |
| | | | | | | | 9,254 | |
| | | | | | | | | |
South Dakota – 1.1% |
| Revenue Bonds – 0.8% |
| South Dakota Health & Educational Facilities Authority, Vocational Education Program (AGTY) | | | | | | | | |
| 5.125%, 08/01/2028 | | | 1,500 | | | | 1,518 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 4.750%, 09/01/2011 | | | 530 | | | | 540 | |
| 5.000%, 09/01/2012 | | | 1,000 | | | | 1,025 | |
| 5.000%, 09/01/2013 | | | 1,000 | | | | 1,023 | |
| 5.000%, 09/01/2025 | | | 1,770 | | | | 1,580 | |
| | | | | | | | | |
| | | | | | | | 5,686 | |
| | | | | | | | | |
| Certificate of Participation – 0.3% |
| Deadwood, Series 2005 (ACA) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 2,385 | | | | 2,021 | |
| | | | | | | | | |
| | | | | | | | 7,707 | |
| | | | | | | | | |
Tennessee – 4.5% |
| Revenue Bonds – 4.2% |
| Chattanooga Health, Educational & Housing Facilities Board, Catholic Health Initiatives, Series D | | | | | | | | |
| 6.125%, 10/01/2028 | | | 2,265 | | | | 2,403 | |
| Jackson Hospital, Jackson-Madison Project | | | | | | | | |
| 5.250%, 04/01/2023 | | | 4,000 | | | | 3,915 | |
| Memphis-Shelby Counties Sports Authority, Memphis Arena Project, | | | | | | | | |
| Series A | | | | | | | | |
5.125%, 11/01/2024 « | | | 3,900 | | | | 3,825 | |
| Series B | | | | | | | | |
5.250%, 11/01/2025 « | | | 1,290 | | | | 1,268 | |
| Series C (NATL) | | | | | | | | |
| 5.000%, 11/01/2017 | | | 3,175 | | | | 3,314 | |
| Metropolitan Government of Nashville & Davidson County, Water Sewer, Escrowed to Maturity | | | | | | | | |
| 6.400%, 04/01/2011 § | | | 1,030 | | | | 1,127 | |
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare Pre-refunded 09/01/2012 @ 100 | | | | | | | | |
6.000%, 09/01/2016 ◊ | | | 565 | | | | 641 | |
6.000%, 09/01/2016 ◊ | | | 935 | | | | 1,060 | |
| Shelby County Health, Educational & Housing Facilities Board, St. Jude Children’s Research | | | | | | | | |
| 5.000%, 07/01/2009 | | | 100 | | | | 100 | |
| Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health System Project (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 2,000 | | | | 1,791 | |
| Escrowed to Maturity | | | | | | | | |
| 6.250%, 09/01/2011 § | | | 1,465 | | | | 1,621 | |
| 6.250%, 09/01/2012 § | | | 1,085 | | | | 1,242 | |
| Pre-refunded 09/01/2012 @ 101 | | | | | | | | |
6.500%, 09/01/2013 ◊ | | | 2,215 | | | | 2,541 | |
| Tennessee Energy Acquisition Corporation, Gas Revenue, Series A | | | | | | | | |
| 5.000%, 09/01/2014 | | | 3,500 | | | | 3,388 | |
| | | | | | | | | |
| | | | | | | | 28,236 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Memphis (NATL) | | | | | | | | |
| 5.000%, 10/01/2016 | | | 2,000 | | | | 2,226 | |
| | | | | | | | | |
| | | | | | | | 30,462 | |
| | | | | | | | | |
Texas – 10.2% |
| Revenue Bonds – 4.2% |
Brazos River Harbor Navigation District, Brazoria County Environmental, Dow Chemical Company Project, Series A-5
Mandatory Put 05/15/2012 @ 100 (AMT) | | | | | | | | |
| 5.700%, 05/15/2033 | | | 1,000 | | | | 954 | |
| El Paso Water & Sewer, Series A (FSA) | | | | | | | | |
| 4.000%, 03/01/2018 | | | 650 | | | | 665 | |
| Grapevine Industrial Development Corporation, Air Cargo (AMT) | | | | | | | | |
| 6.500%, 01/01/2024 | | | 480 | | | | 385 | |
| Gregg County Health Facilities Development Corporation, Good Shepherd Medical Center Project, Series A | | | | | | | | |
| 5.750%, 10/01/2009 | | | 2,895 | | | | 2,903 | |
| 5.000%, 10/01/2013 | | | 1,230 | | | | 1,212 | |
| Harris County Health Facilities Development Corporation, Memorial Hermann Healthcare System, Series B | | | | | | | | |
| 7.125%, 12/01/2031 | | | 1,950 | | | | 2,087 | |
Houston Health Facilities Development Corporation, Buckingham Senior Living Community, Series A Pre-refunded 02/15/2014 @ 101 | | | | | | | | |
7.000%, 02/15/2023 ◊ | | | 2,000 | | | | 2,361 | |
| League City Waterworks & Sewer System (FSA) | | | | | | | | |
| 4.000%, 02/15/2018 | | | 1,230 | | | | 1,260 | |
| 4.375%, 02/15/2023 | | | 1,315 | | | | 1,307 | |
| Lubbock Educational Facilities Authority, Lubbock Christian University | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,000 | | | | 933 | |
| North Texas Tollway Authority, First Tier, Series A | | | | | | | | |
| 6.000%, 01/01/2024 | | | 2,500 | | | | 2,633 | |
| Series E-3 Mandatory Put 01/01/2016 @ 100 | | | | | | | | |
| 5.750%, 01/01/2038 | | | 3,000 | | | | 3,042 | |
| Odessa Housing Finance Corporation, Residual Value, Escrowed to Maturity Zero Coupon Bond (NATL) | | | | | | | | |
1.965%, 06/01/2012 § ¤ | | | 1,465 | | | | 1,384 | |
| San Leanna Education Facilities Corporation, Higher Education, Saint Edwards University Project | | | | | | | | |
| 5.000%, 06/01/2019 | | | 575 | | | | 556 | |
| Tarrant County Cultural Education Facilities, Finance Corporation Retirement Facilities, Northwest Senior Housing, Edgemere Project, Series A | | | | | | | | |
| 5.750%, 11/15/2014 | | | 1,235 | | | | 1,179 | |
| Texas Transportation Commission, First Tier | | | | | | | | |
| 5.000%, 04/01/2017 | | | 2,000 | | | | 2,249 | |
The accompanying notes are an integral part of the financial statements.
52 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
| Travis County Health Facilities, Development Corporation Retirement Facilities, Querencia Barton Creek Project | | | | | | | | |
| 5.250%, 11/15/2017 | | $ | 1,000 | | | $ | 783 | |
| 5.500%, 11/15/2025 | | | 900 | | | | 612 | |
| Tyler Health Facilities Development Corporation, Mother Frances Hospital | | | | | | | | |
| 5.250%, 07/01/2012 | | | 1,000 | | | | 990 | |
| Victoria Utilities Systems (AMBAC) | | | | | | | | |
| 4.400%, 12/01/2019 | | | 1,000 | | | | 1,012 | |
| | | | | | | | | |
| | | | | | | | 28,507 | |
| | | | | | | | | |
| General Obligations – 6.0% |
| Alvin Independent School District, Schoolhouse (PSFG) | | | | | | | | |
| 4.125%, 02/15/2019 | | | 1,110 | | | | 1,149 | |
| Brownsville (NATL) | | | | | | | | |
| 5.000%, 02/15/2017 | | | 2,125 | | | | 2,240 | |
| Corinth (NATL) | | | | | | | | |
| 4.500%, 02/15/2019 | | | 1,180 | | | | 1,207 | |
| Dallas (NATL) | | | | | | | | |
| 4.500%, 02/15/2027 | | | 5,000 | | | | 5,000 | |
| Dallas County Utilities & Reclamation District | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.150%, 02/15/2022 | | | 5,715 | | | | 5,383 | |
| El Paso County (NATL) | | | | | | | | |
| 5.000%, 02/15/2018 | | | 2,440 | | | | 2,692 | |
| Elgin Independent School District, School Building (PSFG) | | | | | | | | |
| 4.375%, 08/01/2019 | | | 1,120 | | | | 1,183 | |
| Frisco (AMBAC) | | | | | | | | |
| 4.500%, 02/15/2016 | | | 2,045 | | | | 2,218 | |
| (FGIC) (NATL) | | | | | | | | |
| 5.000%, 02/15/2018 | | | 1,125 | | | | 1,148 | |
| 5.000%, 02/15/2019 | | | 1,675 | | | | 1,690 | |
| Galena Park Independent School District, School Building (PSFG) | | | | | | | | |
| 4.000%, 08/15/2019 | | | 1,070 | | | | 1,107 | |
| Giddings Independent School District, School Building, Series A (PSFG) | | | | | | | | |
| 4.250%, 02/15/2019 | | | 875 | | | | 917 | |
| Grand Prairie Independent School District, School Building, Series A (PSFG) | | | | | | | | |
| 4.500%, 02/15/2018 | | | 635 | | | | 684 | |
| Howard County Junior College District (AMBAC) | | | | | | | | |
| 4.250%, 02/15/2018 | | | 715 | | | | 723 | |
| Kaufman County (FSA) | | | | | | | | |
| 5.000%, 02/15/2017 | | | 1,000 | | | | 1,065 | |
| Lubbock, Water Works System, Series A (FSA) | | | | | | | | |
| 4.500%, 02/15/2019 | | | 300 | | | | 315 | |
| Mansfield Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2022 | | | 770 | | | | 820 | |
| Montgomery County (FSA) | | | | | | | | |
| 4.000%, 03/01/2017 | | | 220 | | | | 228 | |
| North Harris Montgomery Community College District (FGIC) (NATL) | | | | | | | | |
| 5.375%, 02/15/2015 | | | 95 | | | | 102 | |
| Northwest Texas Independent School District (PSFG) | | | | | | | | |
| 4.500%, 02/15/2026 | | | 1,000 | | | | 1,003 | |
| Plano Independent School District, School Building, Series A | | | | | | | | |
| 5.000%, 02/15/2025 | | | 1,000 | | | | 1,055 | |
| San Angelo, Series A (NATL) | | | | | | | | |
| 4.400%, 02/15/2019 | | | 875 | | | | 912 | |
| San Antonio | | | | | | | | |
| 4.125%, 02/01/2019 | | | 1,000 | | | | 1,039 | |
| 4.250%, 02/01/2020 | | | 1,140 | | | | 1,176 | |
| Sunnyvale School District, School Building (PSFG) | | | | | | | | |
| 4.400%, 02/15/2020 | | | 870 | | | | 907 | |
| Teague Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2019 | | | 2,210 | | | | 2,448 | |
| Texas, Water Financial Assistance, Series A | | | | | | | | |
| 5.000%, 08/01/2017 | | | 1,500 | | | | 1,694 | |
| Victoria Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2018 | | | 500 | | | | 557 | |
| | | | | | | | | |
| | | | | | | | 40,662 | |
| | | | | | | | | |
| | | | | | | | 69,169 | |
| | | | | | | | | |
Utah – 0.7% |
| Revenue Bonds – 0.6% |
| Salt Lake & Sandy Metropolitan Water District, Series A (AMBAC) | | | | | | | | |
| 5.000%, 07/01/2015 | | | 2,500 | | | | 2,793 | |
South Jordan, Sales Tax Pre-refunded 08/15/2011 @ 100 (AMBAC) | | | | | | | | |
5.500%, 08/15/2018 ◊ | | | 1,000 | | | | 1,095 | |
| Weber Basin Water Conservancy District, Series A (AMBAC) | | | | | | | | |
| 4.375%, 10/01/2018 | | | 400 | | | | 420 | |
| | | | | | | | | |
| | | | | | | | 4,308 | |
| | | | | | | | | |
| General Obligation – 0.1% |
| Ashley Valley Water & Sewer Improvement District, Escrowed to Maturity (AMBAC) | | | | | | | | |
| 10.900%, 01/01/2010 § | | | 315 | | | | 330 | |
| | | | | | | | | |
| | | | | | | | 4,638 | |
| | | | | | | | | |
Washington – 3.8% |
| Revenue Bonds – 0.6% |
| Snohomish County Housing Authority | | | | | | | | |
| 6.300%, 04/01/2016 | | | 790 | | | | 795 | |
| Washington Housing Finance Commission, Skyline at First Hill Project, Series B | | | | | | | | |
| 5.100%, 01/01/2013 | | | 3,000 | | | | 2,851 | |
| | | | | | | | | |
| | | | | | | | 3,646 | |
| | | | | | | | | |
| General Obligations – 3.2% |
| Clark County School District #37, Vancouver (FSA) | | | | | | | | |
| 5.250%, 12/01/2014 | | | 1,515 | | | | 1,707 | |
| King County School District #401, Highline Public Schools (FSA) (SBG) | | | | | | | | |
| 5.250%, 12/01/2025 | | | 500 | | | | 532 | |
| King County School District #412, Shoreline (SBG) | | | | | | | | |
| 5.750%, 12/01/2021 | | | 265 | | | | 300 | |
| Snohomish County, Limited Tax (NATL) | | | | | | | | |
| 5.375%, 12/01/2019 | | | 4,440 | | | | 4,598 | |
| Pre-refunded 12/01/2011 @ 100 (NATL) | | | | | | | | |
5.375%, 12/01/2019 ◊ | | | 560 | | | | 614 | |
| Spokane County School District #356, Central Valley, Series B Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
3.201%, 12/01/2014 ¤ | | | 5,690 | | | | 4,791 | |
| Spokane County School District #81, Spokane (NATL) | | | | | | | | |
| 5.000%, 06/01/2016 | | | 1,000 | | | | 1,107 | |
First American Funds 2009 Annual Report 53
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) | |
| DESCRIPTION | | PAR | | | FAIR VALUE | |
| | |
| |
Washington
Series C | | | | | | | | |
| 5.500%, 07/01/2014 | | $ | 2,275 | | | $ | 2,606 | |
| Series S-5, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
3.449%, 01/01/2016 ¤ | | | 3,000 | | | | 2,402 | |
| Washington, Various Purpose, Series R-A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2025 | | | 3,000 | | | | 3,109 | |
| | | | | | | | | |
| | | | | | | | 21,766 | |
| | | | | | | | | |
| | | | | | | | 25,412 | |
| | | | | | | | | |
Wisconsin – 1.8% |
| Revenue Bonds – 1.6% |
Franklin Solid Waste Disposal, Waste Management Wisconsin Income, Series A
Mandatory Put 05/01/2016 @ 100 (AMT) | | | | | | | | |
| 4.950%, 11/01/2016 | | | 2,000 | | | | 1,860 | |
| Wisconsin Health & Educational Facilities Authority, Aurora Health Care Income, Series A | | | | | | | | |
| 5.500%, 02/15/2020 | | | 1,500 | | | | 1,443 | |
| Wisconsin Health & Educational Facilities Authority, Eastcastle Place Income Project | | | | | | | | |
| 5.750%, 12/01/2019 | | | 2,000 | | | | 1,718 | |
| Wisconsin Health & Educational Facilities Authority, Fort Healthcare Income Project | | | | | | | | |
| 5.375%, 05/01/2018 | | | 1,250 | | | | 1,176 | |
| Wisconsin Health & Educational Facilities Authority, Marshfield Clinic, Series B | | | | | | | | |
| 5.500%, 02/15/2013 | | | 850 | | | | 867 | |
| Wisconsin Health & Educational Facilities Authority, Southwest Health Center, Series A | | | | | | | | |
| 6.125%, 04/01/2024 | | | 1,500 | | | | 1,241 | |
| Wisconsin Health & Educational Facilities Authority, Vernon Memorial Healthcare Income Project | | | | | | | | |
| 4.650%, 03/01/2015 | | | 910 | | | | 857 | |
| Wisconsin Health & Educational Facilities Authority, Wisconsin Medical College, Series A (NATL) | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,450 | | | | 1,502 | |
| | | | | | | | | |
| | | | | | | | 10,664 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Door County, Series A Crossover Refunded 09/01/2011 @ 100 (FGIC) | | | | | | | | |
5.125%, 09/01/2016 z | | | 1,720 | | | | 1,837 | |
| | | | | | | | | |
| | | | | | | | 12,501 | |
| | | | | | | | | |
Wyoming – 0.3% |
| Revenue Bond – 0.3% |
Lincoln County, Pacificorp Project
Mandatory Put 06/03/2013 @ 100 (AMT) | | | | | | | | |
| 4.125%, 11/01/2025 | | | 2,250 | | | | 2,233 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $647,866) | | | | | | | 655,117 | |
| | | | | | | | | |
Short-Term Investments – 3.6% |
| Money Market Fund – 3.6% |
First American Tax Free Obligations Fund, Class Z Å | | | 24,253,795 | | | $ | 24,254 | |
| | | | | | | | | |
| Variable Rate Demand Note v – 0.0% |
| Colorado Educational & Cultural Facilities Authority, National Jewish Federation Board Program, Series A-9 (LOC: Bank of America) | | | | | | | | |
| 0.320%, 09/01/2036 | | $ | 300 | | | | 300 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $24,554) | | | | | | | 24,554 | |
| | | | | | | | | |
Total Investments 5 – 100.3% | | | | | | | | |
(Cost $672,420) | | | | | | | 679,671 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (0.3)% | | | | | | | (2,259 | ) |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 677,412 | |
| | | | | | | | | |
| | |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
| |
| Y | | Auction rate security. The coupon rate shown represents the rate as of June 30, 2009. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $9,429 or 1.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| z | | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| v | | Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and a right of demand to receive payment of the principal plus accrued interest at specified dates. The coupon rate shown represents the rate as of June 30, 2009. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $672,420. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 24,710 | |
| Gross unrealized depreciation | | | (17,459 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 7,251 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $12,153, which represents 1.8% of total net assets. |
| |
| CIFG – | CDC IXIS Financial Guaranty |
| |
| CMI – | California Mortgage Insurance Program |
| |
| COMTGY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHA – | Federal Housing Authority |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
The accompanying notes are an integral part of the financial statements.
54 First American Funds 2009 Annual Report
Intermediate Tax Free Fund (concluded)
| |
| MQSBLF – | Michigan Qualified School Board Loan Fund Program |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| OSDCEP – | Ohio School District Credit Enhancement Program |
| |
| PSFG – | Permanent School Fund Guaranty |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SBG – | School Board Guaranty |
| |
| SGI – | Syncora Guarantee Inc. |
| |
| SMO – | State Moral Obligation |
| |
| STAID – | State Aid Withholding |
| |
| VA – | Veterans Administration |
Intermediate Tax Free Fund (concluded)
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 94.2% |
| Revenue Bonds – 66.5% |
| Continuing Care Retirement Communities – 1.0% |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, Series A | | | | | | | | |
| 5.550%, 07/01/2027 | | $ | 1,000 | | | $ | 738 | |
| Glencoe Health Care Facilities, Glencoe Regional Health Services Project | | | | | | | | |
Pre-refunded 04/01/2011 @ 101 | | | | | | | | |
7.400%, 04/01/2021 ◊ | | | 1,000 | | | | 1,117 | |
| | | | | | | | | |
| | | | | | | | 1,855 | |
| | | | | | | | | |
| Economic Development – 1.5% |
| Minneapolis Community Development Agency, | | | | | | | | |
Series G-3, Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
5.350%, 12/01/2021 ◊ | | | 1,000 | | | | 1,103 | |
| Minneapolis Development Revenue, Common Bond Series 1A (AMT) | | | | | | | | |
| 4.550%, 12/01/2013 | | | 480 | | | | 497 | |
| 4.625%, 12/01/2014 | | | 505 | | | | 520 | |
| Minneapolis Supported Development, Common Bond, Series 2A (AMT) | | | | | | | | |
| 5.125%, 06/01/2022 | | | 1,000 | | | | 892 | |
| | | | | | | | | |
| | | | | | | | 3,012 | |
| | | | | | | | | |
| Education – 12.9% |
| Minneapolis, The Blake School Project | | | | | | | | |
| 5.000%, 09/01/2012 | | | 445 | | | | 466 | |
| Minnesota Colleges & Universities, Series A | | | | | | | | |
| 4.000%, 10/01/2022 | | | 985 | | | | 964 | |
| 4.000%, 10/01/2023 | | | 1,755 | | | | 1,699 | |
| Minnesota Higher Education Facilities Authority, Augsburg College, | | | | | | | | |
| Series 4-Y | | | | | | | | |
| 5.000%, 10/01/2011 | | | 500 | | | | 499 | |
| 5.000%, 10/01/2012 | | | 500 | | | | 496 | |
| Series 6-C | | | | | | | | |
| 4.750%, 05/01/2018 | | | 1,075 | | | | 988 | |
| Series 6-J1 | | | | | | | | |
| 5.000%, 05/01/2013 | | | 320 | | | | 339 | |
| 5.000%, 05/01/2016 | | | 375 | | | | 391 | |
| 5.000%, 05/01/2020 | | | 1,295 | | | | 1,300 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2018 | | | 1,125 | | | | 1,066 | |
| 5.500%, 05/01/2019 | | | 1,185 | | | | 1,114 | |
| 5.500%, 05/01/2024 | | | 1,050 | | | | 942 | |
| Minnesota Higher Education Facilities Authority, College of Art & Design, | | | | | | | | |
| Series 5-K | | | | | | | | |
| 5.000%, 05/01/2011 | | | 170 | | | | 175 | |
| Series 6-K | | | | | | | | |
| 5.000%, 05/01/2013 | | | 310 | | | | 328 | |
| 5.000%, 05/01/2014 | | | 320 | | | | 337 | |
| 5.000%, 05/01/2015 | | | 340 | | | | 358 | |
| 5.000%, 05/01/2016 | | | 355 | | | | 370 | |
| 5.000%, 05/01/2017 | | | 370 | | | | 383 | |
| Minnesota Higher Education Facilities Authority, St. Benedict College, Series V | | | | | | | | |
| 4.500%, 03/01/2017 | | | 1,585 | | | | 1,599 | |
| Minnesota Higher Education Facilities Authority, St. Catherine College, Series 5-N1 | | | | | | | | |
| 5.250%, 10/01/2022 | | | 500 | | | | 471 | |
First American Funds 2009 Annual Report 55
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Minnesota Higher Education Facilities Authority, St. John’s University, Series 6-U | | | | | | | | |
| 4.200%, 10/01/2019 | | $ | 290 | | | $ | 286 | |
| 4.300%, 10/01/2020 | | | 385 | | | | 379 | |
| 4.500%, 10/01/2022 | | | 145 | | | | 143 | |
| Minnesota Higher Education Facilities Authority, St. Olaf College, Series 6-O | | | | | | | | |
| 5.000%, 10/01/2016 | | | 500 | | | | 539 | |
| 4.500%, 10/01/2019 | | | 250 | | | | 244 | |
| Minnesota Higher Education Facilities Authority, St. Scholastica College, | | | | | | | | |
| Series 5-J | | | | | | | | |
| 5.250%, 12/01/2011 | | | 300 | | | | 301 | |
| Series 6-S | | | | | | | | |
| 4.375%, 12/01/2016 | | | 360 | | | | 330 | |
| 4.500%, 12/01/2017 | | | 380 | | | | 345 | |
| Minnesota Higher Education Facilities Authority, University of St. Thomas, | | | | | | | | |
| Series 6-I | | | | | | | | |
| 4.000%, 04/01/2014 | | | 1,045 | | | | 1,088 | |
| Series 6-X | | | | | | | | |
| 4.500%, 04/01/2021 | | | 500 | | | | 498 | |
| 5.000%, 04/01/2024 | | | 1,250 | | | | 1,276 | |
| Moorhead Educational Facilities, Concordia College, Series A | | | | | | | | |
| 4.100%, 12/15/2014 | | | 500 | | | | 509 | |
| 4.200%, 12/15/2015 | | | 880 | | | | 891 | |
| 4.300%, 12/15/2016 | | | 925 | | | | 929 | |
| 5.000%, 12/15/2018 | | | 1,005 | | | | 1,032 | |
| 5.000%, 12/15/2019 | | | 1,060 | | | | 1,076 | |
| University of Minnesota, Series C | | | | | | | | |
| 5.000%, 12/01/2019 | | | 1,000 | | | | 1,116 | |
| | | | | | | | | |
| | | | | | | | 25,267 | |
| | | | | | | | | |
| Healthcare ⊳ – 26.0% |
| Aitkin Health Care Facilities, Riverwood Healthcare Center | | | | | | | | |
| 5.250%, 02/01/2015 | | | 735 | | | | 685 | |
| Bemidji Health Care Facilities, North County Health Services | | | | | | | | |
| 4.125%, 09/01/2013 | | | 300 | | | | 299 | |
| 4.250%, 09/01/2015 | | | 500 | | | | 486 | |
| 5.000%, 09/01/2017 | | | 500 | | | | 499 | |
| 5.000%, 09/01/2018 | | | 1,050 | | | | 1,034 | |
| 5.000%, 09/01/2019 | | | 1,110 | | | | 1,085 | |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.000%, 06/01/2016 | | | 425 | | | | 379 | |
| 5.000%, 06/01/2017 | | | 1,340 | | | | 1,170 | |
| 5.000%, 06/01/2019 | | | 1,320 | | | | 1,106 | |
Duluth Economic Development Authority, Benedictine Health System-St. Mary’s Pre-refunded 02/15/2014 @ 100 | | | | | | | | |
5.375%, 02/15/2022 ◊ | | | 2,045 | | | | 2,330 | |
| Glencoe Health Care Facilities, Regional Health Services Project | | | | | | | | |
| 5.000%, 04/01/2013 | | | 760 | | | | 755 | |
| 5.000%, 04/01/2014 | | | 800 | | | | 784 | |
| 5.000%, 04/01/2015 | | | 845 | | | | 818 | |
| 5.000%, 04/01/2017 | | | 1,815 | | | | 1,706 | |
| Hastings Health Care Facility, Regina Medical Center (ACA) | | | | | | | | |
| 5.000%, 09/15/2013 | | | 400 | | | | 384 | |
| Maple Grove Health Care Facilities, North Memorial Health Care | | | | | | | | |
| 4.500%, 09/01/2017 | | | 1,730 | | | | 1,695 | |
| Maple Grove Health Care System, Maple Grove Hospital | | | | | | | | |
| 5.000%, 05/01/2017 | | | 1,000 | | | | 999 | |
| Marshall Medical Center, Avera Marshall Regional Medical Center Project | | | | | | | | |
| 4.500%, 11/01/2013 | | | 345 | | | | 342 | |
| 4.750%, 11/01/2020 | | | 1,155 | | | | 1,046 | |
| Meeker County Hospital Facilities, Memorial Hospital Project | | | | | | | | |
| 5.625%, 11/01/2022 | | | 1,000 | | | | 898 | |
Minneapolis Health Care System, Allina Health System, Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
6.000%, 11/15/2023 ◊ | | | 2,500 | | | | 2,868 | |
5.750%, 11/15/2032 ◊ | | | 1,300 | | | | 1,481 | |
| Minneapolis Health Care System, Fairview Health Services, | | | | | | | | |
| Series A | | | | | | | | |
| 6.375%, 11/15/2023 | | | 4,000 | | | | 4,223 | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 5.000%, 05/15/2012 § | | | 605 | | | | 668 | |
| Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project | | | | | | | | |
| 5.500%, 02/01/2011 | | | 280 | | | | 288 | |
| 5.500%, 02/01/2012 | | | 200 | | | | 208 | |
| 5.500%, 02/01/2015 | | | 730 | | | | 750 | |
| Minnesota Agricultural & Economic Development Board, Health Care Systems, Series A (NATL) | | | | | | | | |
| 5.500%, 11/15/2017 | | | 305 | | | | 308 | |
| 5.750%, 11/15/2026 | | | 10 | | | | 10 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, Series C | | | | | | | | |
| 5.750%, 12/01/2015 | | | 2,320 | | | | 2,207 | |
| Northfield Hospital | | | | | | | | |
| 5.000%, 11/01/2013 | | | 880 | | | | 881 | |
| 5.000%, 11/01/2014 | | | 920 | | | | 910 | |
| 5.500%, 11/01/2017 | | | 1,080 | | | | 1,067 | |
| Plymouth Health Facilities, Westhealth Project, | | | | | | | | |
| Series A (FSA) | | | | | | | | |
| 6.200%, 06/01/2011 | | | 935 | | | | 938 | |
| Redwood Falls Hospital Facilities, Redwood Area Hospital Project | | | | | | | | |
| 5.000%, 12/01/2021 | | | 1,015 | | | | 848 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 4.000%, 09/01/2012 | | | 305 | | | | 302 | |
| 5.000%, 09/01/2017 | | | 1,785 | | | | 1,752 | |
| St. Louis Park Health Care Facilities, Park Nicollet Health Services, Series C | | | | | | | | |
| 5.625%, 07/01/2026 | | | 2,500 | | | | 2,474 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System, Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2015 | | | 500 | | | | 518 | |
| 5.000%, 11/15/2019 | | | 1,200 | | | | 1,208 | |
| St. Paul Housing & Redevelopment Authority, Health Partners Obligated Group Project | | | | | | | | |
| 5.250%, 05/15/2019 | | | 1,350 | | | | 1,299 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 5.150%, 11/15/2020 | | | 1,840 | | | | 1,497 | |
| St. Paul Port Authority, HealthEast Midway Campus, Series A | | | | | | | | |
| 5.250%, 05/01/2015 | | | 1,500 | | | | 1,363 | |
| 5.750%, 05/01/2025 | | | 2,000 | | | | 1,648 | |
The accompanying notes are an integral part of the financial statements.
56 First American Funds 2009 Annual Report
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Stillwater Health Care, Health Systems Obligated Group | | | | | | | | |
| 4.250%, 06/01/2015 | | $ | 500 | | | $ | 491 | |
| 4.250%, 06/01/2016 | | | 260 | | | | 252 | |
| Todd, Morrison, Cass & Wadena Counties, United Hospital District | | | | | | | | |
| 4.000%, 12/01/2013 | | | 400 | | | | 411 | |
| Winona Health Care Facilities, Series A | | | | | | | | |
| 5.300%, 07/01/2017 | | | 525 | | | | 517 | |
| Winona Health Care Facilities, Winona Health Obligated Group | | | | | | | | |
| 5.000%, 07/01/2020 | | | 1,000 | | | | 926 | |
| | | | | | | | | |
| | | | | | | | 50,813 | |
| | | | | | | | | |
| Housing – 1.2% |
| Dakota County Housing & Redevelopment Authority, Single Family Mortgages (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.125%, 10/01/2020 | | | 32 | | | | 32 | |
| Moorhead Senior Housing, Sheyenne Crossing Project | | | | | | | | |
| 5.600%, 04/01/2025 | | | 2,000 | | | | 1,522 | |
| Worthington Housing Authority, Meadows Worthington Project, Series A | | | | | | | | |
| 5.000%, 11/01/2017 | | | 1,000 | | | | 833 | |
| | | | | | | | | |
| | | | | | | | 2,387 | |
| | | | | | | | | |
| Lease Revenue – 2.8% |
| Andover Economic Development Authority Public Facilities, Community Center, Crossover Refunded 02/01/2014 @ 100 | | | | | | | | |
5.000%, 02/01/2019 z | | | 730 | | | | 799 | |
5.000%, 02/01/2019 z | | | 495 | | | | 541 | |
| Pine County Housing & Redevelopment Authority, Series A | | | | | | | | |
| 4.500%, 02/01/2016 | | | 465 | | | | 474 | |
| 4.500%, 02/01/2017 | | | 385 | | | | 388 | |
| St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | | | | | | | | |
| 4.500%, 12/01/2019 | | | 180 | | | | 179 | |
| 4.500%, 12/01/2020 | | | 290 | | | | 286 | |
| St. Paul Housing & Redevelopment Authority, Smith Avenue Transit Center | | | | | | | | |
| 4.000%, 06/01/2012 | | | 195 | | | | 198 | |
| St. Paul Port Authority, Office Building | | | | | | | | |
| 5.000%, 12/01/2019 | | | 2,415 | | | | 2,508 | |
| | | | | | | | | |
| | | | | | | | 5,373 | |
| | | | | | | | | |
| Miscellaneous – 0.8% |
| Seaway Port Authority of Duluth, Cargill Income Project | | | | | | | | |
| 4.200%, 05/01/2013 | | | 1,500 | | | | 1,509 | |
| | | | | | | | | |
| Tax Revenue – 1.8% |
| Hennepin County Sales Tax, Ballpark Project | | | | | | | | |
| Series B | | | | | | | | |
| 4.375%, 12/15/2022 | | | 555 | | | | 563 | |
| 5.000%, 12/15/2029 | | | 1,000 | | | | 1,030 | |
| Minneapolis St. Anthony Falls Project | | | | | | | | |
| 5.000%, 02/01/2017 | | | 1,040 | | | | 829 | |
| 5.300%, 02/01/2021 | | | 570 | | | | 411 | |
| Minneapolis Tax Increment, Grant Park Project | | | | | | | | |
| 5.200%, 02/01/2022 | | | 1,000 | | | | 738 | |
| | | | | | | | | |
| | | | | | | | 3,571 | |
| | | | | | | | | |
| Transportation – 7.3% |
| Minneapolis & St. Paul Metropolitan Airports Commission, | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,000 | | | | 1,026 | |
| 5.000%, 01/01/2020 | | | 2,200 | | | | 2,244 | |
| Series B (AMBAC) (AMT) | | | | | | | | |
| 5.000%, 01/01/2020 | | | 2,125 | | | | 2,010 | |
| Series B (AMT) (FGIC) (NATL) | | | | | | | | |
| 5.750%, 01/01/2010 | | | 2,380 | | | | 2,418 | |
| 5.625%, 01/01/2014 | | | 1,000 | | | | 1,011 | |
Series C, Pre-refunded 01/01/2011 @ 100 (FGIC) | | | | | | | | |
5.125%, 01/01/2020 ◊ | | | 3,095 | | | | 3,288 | |
| Minnesota Public Facilities Authority Transportation | | | | | | | | |
| 5.000%, 03/01/2012 | | | 970 | | | | 992 | |
| Puerto Rico Commonwealth, Highway & Transportation Authority, Series X (IBC) (NATL) | | | | | | | | |
| 5.500%, 07/01/2013 | | | 1,250 | | | | 1,284 | |
| | | | | | | | | |
| | | | | | | | 14,273 | |
| | | | | | | | | |
| Utilities – 11.2% |
| Chaska Electric, Series A | | | | | | | | |
| 5.650%, 10/01/2009 | | | 720 | | | | 727 | |
| 5.650%, 10/01/2010 | | | 760 | | | | 796 | |
| 4.200%, 10/01/2015 | | | 1,000 | | | | 1,034 | |
| Cohasset Pollution Control, Allete Project (IBCC) (RAAI) | | | | | | | | |
| 4.950%, 07/01/2022 | | | 2,230 | | | | 2,090 | |
| Litchfield Electric Utilities, Series C (AGTY) | | | | | | | | |
| 5.000%, 02/01/2029 | | | 500 | | | | 504 | |
| Marshall Public Utilities, | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 3.500%, 07/01/2016 | | | 315 | | | | 314 | |
| 3.500%, 07/01/2017 | | | 275 | | | | 268 | |
| 3.750%, 07/01/2018 | | | 340 | | | | 332 | |
| Minnesota State Municipal Power Agency | | | | | | | | |
| 4.125%, 10/01/2017 | | | 420 | | | | 423 | |
| 5.250%, 10/01/2022 | | | 1,000 | | | | 1,028 | |
Northern Municipal Power Agency, Minnesota Electric Systems,
Series A (AGTY) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,000 | | | | 1,040 | |
| 5.000%, 01/01/2021 | | | 2,000 | | | | 2,032 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2013 | | | 380 | | | | 408 | |
| 5.000%, 01/01/2017 | | | 460 | | | | 484 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | | | | | | | | |
| 5.000%, 07/01/2016 | | | 500 | | | | 521 | |
| Shakopee Public Utilities, Series A (FSA) | | | | | | | | |
| 4.250%, 02/01/2018 | | | 295 | | | | 303 | |
| Southern Minnesota Municipal Power Agency, Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2011 | | | 1,270 | | | | 1,286 | |
| 5.250%, 01/01/2014 | | | 2,000 | | | | 2,165 | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
4.574%, 01/01/2020 ¤ | | | 3,500 | | | | 2,177 | |
4.763%, 01/01/2021 ¤ | | | 5,000 | | | | 2,909 | |
| Western Minnesota Municipal Power Agency, Series A (AMBAC) | | | | | | | | |
| 5.500%, 01/01/2011 | | | 1,000 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 21,845 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 129,905 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 57
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| General Obligations – 26.2% |
| Anoka County Capital Improvement, | | | | | | | | |
| Series A | | | | | | | | |
| 4.100%, 02/01/2018 | | $ | 610 | | | $ | 637 | |
| 5.000%, 02/01/2020 | | | 1,000 | | | | 1,095 | |
| Series B | | | | | | | | |
| 4.550%, 01/01/2011 | | | 1,335 | | | | 1,374 | |
| Series C | | | | | | | | |
| 4.100%, 02/01/2018 | | | 285 | | | | 301 | |
| 4.200%, 02/01/2019 | | | 595 | | | | 626 | |
| Series D | | | | | | | | |
| 5.000%, 02/01/2024 | | | 500 | | | | 522 | |
| Anoka-Hennepin Independent School District #11 Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2014 z | | | 2,000 | | | | 2,085 | |
| Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2012 z | | | 1,000 | | | | 1,042 | |
5.375%, 02/01/2013 z | | | 600 | | | | 617 | |
| Burnsville Independent School District #191, Alternative Facilities, Series A (MSDCEP) | | | | | | | | |
| 4.250%, 02/01/2020 | | | 1,200 | | | | 1,253 | |
| Chaska Independent School District #112, School Building, Series A (MSDCEP) (NATL) | | | | | | | | |
| 4.250%, 02/01/2019 | | | 1,000 | | | | 1,056 | |
| Chatfield Independent School District #227, School Building, Series A (FSA) (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 450 | | | | 477 | |
| Dakota County Capital Improvement, Series C | | | | | | | | |
| 4.850%, 02/01/2010 | | | 1,000 | | | | 1,026 | |
| Dakota County Community Development Agency, Senior Housing Facilities, Series A | | | | | | | | |
| 4.375%, 01/01/2019 | | | 510 | | | | 532 | |
| 4.500%, 01/01/2020 | | | 215 | | | | 223 | |
| Dassel Cokato Independent School District #466, School Building, Series A (MSCDEP) | | | | | | | | |
| 4.000%, 03/01/2014 | | | 300 | | | | 321 | |
| Duluth DECC Improvement, Series A | | | | | | | | |
| 4.500%, 02/01/2021 | | | 1,160 | | | | 1,202 | |
| 4.500%, 02/01/2022 | | | 465 | | | | 477 | |
| 4.625%, 02/01/2024 | | | 1,100 | | | | 1,124 | |
| Duluth Independent School District #709, | | | | | | | | |
| Series A (FSA) (MSDCEP) | | | | | | | | |
| 4.250%, 02/01/2022 | | | 1,150 | | | | 1,168 | |
| Lakeville Independent School District #194, | | | | | | | | |
| Series A, Crossover Refunded 02/01/2013 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.000%, 02/01/2022 z | | | 1,260 | | | | 1,373 | |
| Minneapolis Special School District #1 (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 1,135 | | | | 1,188 | |
| Moorhead Independent School District #152, Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.000%, 04/01/2015 z | | | 3,450 | | | | 3,722 | |
5.000%, 04/01/2016 z | | | 2,510 | | | | 2,708 | |
| Mounds View Independent School District #621, School Building, Series A (MSDCEP) | | | | | | | | |
| 3.250%, 02/01/2017 | | | 625 | | | | 625 | |
| 4.000%, 02/01/2021 | | | 1,000 | | | | 1,000 | |
| 4.000%, 02/01/2022 | | | 750 | | | | 745 | |
| Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.250%, 02/01/2012 z | | | 1,000 | | | | 1,056 | |
| Series A, Crossover Refunded 02/01/2012 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2019 z | | | 2,565 | | | | 2,681 | |
| Series A, Crossover Refunded 02/01/2012 @ 100 (MSDCEP) (NATL) | | | | | | | | |
5.000%, 02/01/2018 z | | | 2,340 | | | | 2,392 | |
| Pequot Lakes Independent School District #186, Crossover Refunded 02/01/2012 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.125%, 02/01/2018 z | | | 500 | | | | 541 | |
| Perham, Disposal System (AMT) | | | | | | | | |
| 5.850%, 05/01/2015 | | | 1,205 | | | | 1,210 | |
| Puerto Rico Commonwealth (NATL) | | | | | | | | |
| 6.000%, 07/01/2014 | | | 1,605 | | | | 1,681 | |
| Series A | | | | | | | | |
| 5.500%, 07/01/2018 | | | 1,000 | | | | 969 | |
| 5.500%, 07/01/2018 | | | 575 | | | | 557 | |
| Series A (SGI) | | | | | | | | |
| 5.500%, 07/01/2017 | | | 1,000 | | | | 979 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 985 | |
| Robbinsdale Independent School District #281, Alternative Facility, Series B (MSDCEP) | | | | | | | | |
| 4.500%, 02/01/2021 | | | 500 | | | | 528 | |
| Rochester Wastewater, Series A | | | | | | | | |
| 4.000%, 12/01/2018 | | | 1,140 | | | | 1,208 | |
| Sauk Rapids Independent School District #47, | | | | | | | | |
| Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 89.37 (FSA) (MSDCEP) | | | | | | | | |
2.215%, 02/01/2013 z¤ | | | 1,055 | | | | 910 | |
| Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 94.63 (FSA) (MSDCEP) | | | | | | | | |
2.213%, 02/01/2012 z¤ | | | 1,790 | | | | 1,636 | |
| South Washington County, Independent School District #833, Series B (FSA) (MSDCEP) | | | | | | | | |
| 5.000%, 02/01/2015 | | | 1,030 | | | | 1,104 | |
| St. Cloud Library Sales Tax, Series B (FSA) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 1,000 | | | | 1,045 | |
| St. Michael Independent School District #885, Crossover Refunded 02/01/2012 @ 100 (FSA) (MSDCEP) | | | | | | | | |
5.000%, 02/01/2014 z | | | 1,190 | | | | 1,279 | |
5.000%, 02/01/2017 z | | | 1,000 | | | | 1,074 | |
| Wright County Jail, Series A (MCCEP) | | | | | | | | |
| 4.500%, 12/01/2020 | | | 640 | | | | 678 | |
| Zumbrota-Mazeppa Independent School District #2805, Alternative Facilities, | | | | | | | | |
| Series A (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 200 | | | | 209 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 51,241 | |
| | | | | | | | | |
| Certificates of Participation – 1.5% |
| Duluth Independent School District #709, | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 1,890 | | | | 1,931 | |
| Northeast Metropolitan Intermediate School District #916 | | | | | | | | |
| 4.250%, 01/01/2015 | | | 1,000 | | | | 1,015 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 2,946 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $184,014) | | | | | | | 184,092 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2009 Annual Report
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (concluded) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE |
| |
| |
Short-Term Investments – 4.8% |
| Money Market Fund – 0.2% |
| Federated Minnesota Municipal Cash Trust | | | 402,875 | | | $ | 403 | |
| | | | | | | | | |
| Variable Rate Demand Notes v – 4.6% |
| Minnesota Higher Education Facilities Authority, Carleton College, Series 5-G | | | | | | | | |
| 0.270%, 11/01/2029 | | $ | 2,000 | | | | 2,000 | |
| Cohasset Power & Light Company Project, | | | | | | | | |
| Series A (LOC: LaSalle Bank) | | | | | | | | |
| 0.400%, 06/01/2020 | | | 7,000 | | | | 7,000 | |
| | | | | | | | | |
| | | | | | | | 9,000 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $9,403) | | | | | | | 9,403 | |
| | | | | | | | | |
Total Investments 5 – 99.0% | | | | | | | | |
(Cost $193,417) | | | | | | | 193,495 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.0% | | | | | | | 1,964 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 195,459 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| ⊳ | | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| z | | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| v | | Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and a right of demand to receive payment of the principal plus accrued interest at specified dates. The coupon rate shown represents the rate as of June 30, 2009. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $193,417. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 5,504 | |
| Gross unrealized depreciation | | | (5,426 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 78 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $8,590, which represents 4.4% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
| |
| IBC – | Insured Bond Certificate |
| |
| IBCC – | Insured Bond Custodial Certificate |
| |
| MCCEP – | Minnesota County Credit Enhancement Program |
| |
| MSDCEP – | Minnesota School District Credit Enhancement Program |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
| | | | | | | | | |
| Minnesota Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 98.2% |
| Revenue Bonds – 86.4% |
| Continuing Care Retirement Communities – 2.6% |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, Series A | | | | | | | | |
| 5.700%, 07/01/2042 | | $ | 1,750 | | | $ | 1,208 | |
| Golden Valley Covenant Retirement Communities, Series A | | | | | | | | |
| 5.500%, 12/01/2029 | | | 1,450 | | | | 1,169 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 1,275 | | | | 778 | |
| Prior Lake Senior Housing, Shepherds Path, Series B | | | | | | | | |
| 5.700%, 08/01/2036 | | | 1,000 | | | | 751 | |
| | | | | | | | | |
| | | | | | | | 3,906 | |
| | | | | | | | | |
| Economic Development – 1.0% |
| Minnesota Agricultural & Economic Development Board, Minnesota Small Business Program, Series A (AMT) | | | | | | | | |
| 5.550%, 08/01/2016 | | | 500 | | | | 441 | |
| Minnesota Agricultural & Economic Development Board, Small Business Development, Series D (AMT) | | | | | | | | |
| 7.250%, 08/01/2020 | | | 1,065 | | | | 1,028 | |
| | | | | | | | | |
| | | | | | | | 1,469 | |
| | | | | | | | | |
| Education – 8.9% |
| Baytown Lease Revenue, St. Croix Preparatory Academy, Series A | | | | | | | | |
| 7.000%, 08/01/2038 | | | 1,500 | | | | 1,223 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2026 | | | 1,725 | | | | 1,522 | |
| 5.500%, 05/01/2027 | | | 820 | | | | 717 | |
| Minnesota Higher Education Facilities Authority, College of Art & Design, Series 6-K | | | | | | | | |
| 5.000%, 05/01/2026 | | | 30 | | | | 28 | |
| Minnesota Higher Education Facilities Authority, University of St. Thomas, Series 6-X | | | | | | | | |
| 5.250%, 04/01/2039 | | | 5,000 | | | | 4,977 | |
| Minnesota Higher Education Facilities Authority, Vermilion Community College Project, | | | | | | | | |
| Series 3-T | | | | | | | | |
| 6.000%, 01/01/2013 | | | 290 | | | | 290 | |
| St. Paul Housing & Redevelopment Authority, Community Peace Academy Project, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 12/01/2036 | | | 800 | | | | 511 | |
| St. Paul Housing & Redevelopment Authority, St. Paul Academy & Summit School Project, | | | | | | | | |
| 5.000%, 10/01/2024 | | | 2,000 | | | | 2,003 | |
| University of Minnesota | | | | | | | | |
| Series A | | | | | | | | |
| 5.125%, 04/01/2034 | | | 1,000 | | | | 1,027 | |
| Series C | | | | | | | | |
| 5.000%, 12/01/2020 | | | 1,000 | | | | 1,102 | |
| | | | | | | | | |
| | | | | | | | 13,400 | |
| | | | | | | | | |
| Healthcare ⊳ – 29.1% |
| Chippewa County, Montevideo Hospital Project | | | | | | | | |
| 5.500%, 03/01/2037 | | | 1,500 | | | | 1,152 | |
First American Funds 2009 Annual Report 59
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.000%, 06/01/2029 | | $ | 3,150 | | | $ | 2,185 | |
| 5.500%, 06/01/2035 | | | 350 | | | | 240 | |
Duluth Economic Development Authority, Benedictine Health System-St.Mary’s Pre-refunded 02/15/2014 @ 100 | | | | | | | | |
5.250%, 02/15/2028 ◊ | | | 1,065 | | | | 1,208 | |
| Glencoe Health Care Facilities, Regional Health Services Project | | | | | | | | |
| 5.000%, 04/01/2031 | | | 2,000 | | | | 1,532 | |
| Maple Grove Health Care Facilities, North Memorial Health Care | | | | | | | | |
| 5.000%, 09/01/2035 | | | 2,000 | | | | 1,703 | |
| Maple Grove Health Care System, Maple Grove Hospital | | | | | | | | |
| 4.500%, 05/01/2023 | | | 1,500 | | | | 1,294 | |
| 5.250%, 05/01/2025 | | | 1,000 | | | | 930 | |
| Marshall Medical Center, Weiner Memorial Medical Center Project, Series A | | | | | | | | |
| 5.250%, 11/01/2016 | | | 305 | | | | 303 | |
| 5.850%, 11/01/2023 | | | 875 | | | | 842 | |
| Meeker County Hospital Facilities, Memorial Hospital Project | | | | | | | | |
| 5.750%, 11/01/2027 | | | 1,000 | | | | 854 | |
| Minneapolis Health Care System, Allina Health System, Series A | | | | | | | | |
| Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
6.000%, 11/15/2023 ◊ | | | 1,500 | | | | 1,721 | |
5.750%, 11/15/2032 ◊ | | | 2,400 | | | | 2,734 | |
| Minneapolis Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.625%, 11/15/2028 | | | 3,000 | | | | 3,157 | |
| Minnesota Agricultural & Economic Development Board, Fairview Health Services, | | | | | | | | |
| Series A | | | | | | | | |
| 6.375%, 11/15/2029 | | | 125 | | | | 126 | |
Series A, Pre-refunded 11/15/2010 @ 101 | | | | | | | | |
6.375%, 11/15/2029 ◊ | | | 3,875 | | | | 4,198 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 12/01/2019 | | | 1,000 | | | | 845 | |
| Series C | | | | | | | | |
| 6.200%, 12/01/2022 | | | 1,000 | | | | 823 | |
| New Hope Housing & Health Care Facilities, Masonic Home North Ridge | | | | | | | | |
| 5.750%, 03/01/2015 | | | 1,600 | | | | 1,494 | |
| Redwood Falls Hospital Facilities, Redwood Area Hospital Project | | | | | | | | |
| 5.125%, 12/01/2036 | | | 3,000 | | | | 2,064 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 5.250%, 09/01/2034 | | | 2,000 | | | | 1,686 | |
| St. Louis Park Health Care Facilities, Park Nicollet Health Services, | | | | | | | | |
Series B, Pre-refunded 07/01/2014 @ 100 | | | | | | | | |
5.500%, 07/01/2025 ◊ | | | 2,000 | | | | 2,286 | |
| Series C | | | | | | | | |
| 5.750%, 07/01/2030 | | | 1,000 | | | | 977 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System, Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2012 | | | 2,500 | | | | 2,614 | |
| St. Paul Housing & Redevelopment Authority, Episcopal Nursing Home | | | | | | | | |
| 5.630%, 10/01/2033 | | | 2,282 | | | | 1,588 | |
| St. Paul Housing & Redevelopment Authority, Health Partners Obligation Group Project | | | | | | | | |
| 5.250%, 05/15/2026 | | | 2,000 | | | | 1,753 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 6.000%, 11/15/2030 | | | 800 | | | | 624 | |
| St. Paul Housing & Redevelopment Authority, Regions Hospital Project | | | | | | | | |
| 5.250%, 05/15/2018 | | | 500 | | | | 485 | |
| St. Paul Port Authority, HealthEast Midway Campus, | | | | | | | | |
| Series A | | | | | | | | |
| 5.875%, 05/01/2030 | | | 900 | | | | 697 | |
| Series B | | | | | | | | |
| 6.000%, 05/01/2030 | | | 1,800 | | | | 1,416 | |
| | | | | | | | | |
| | | | | | | | 43,531 | |
| | | | | | | | | |
| Housing – 12.4% |
| Cottage Grove Senior Housing, PHS/Cottage Grove Inc. Project, Series A | | | | | | | | |
| 5.000%, 12/01/2031 | | | 850 | | | | 596 | |
| Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project (GNMA) | | | | | | | | |
| 5.900%, 04/20/2042 | | | 2,000 | | | | 2,035 | |
| Hopkins Elderly Housing, St. Therese Project, | | | | | | | | |
| Series A (FHA) (GNMA) | | | | | | | | |
| 5.600%, 11/20/2017 | | | 440 | | | | 443 | |
Maplewood Multifamily Housing, Carefree Cottages II
Mandatory Put 04/15/2019 @ 100 (AMT) (FNMA) | | | | | | | | |
| 4.800%, 04/15/2034 | | | 2,000 | | | | 1,988 | |
| Minneapolis & St. Paul Housing Financing Board, Single Family Mortgage, | | | | | | | | |
| Series A4 (AMT) (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.000%, 11/01/2038 | | | 958 | | | | 902 | |
| Minneapolis Housing, Keeler Apartments Project, Series A | | | | | | | | |
| 5.000%, 10/01/2037 | | | 1,350 | | | | 900 | |
| Minneapolis Multifamily Housing, Vantage Flats Project (AMT) (GNMA) | | | | | | | | |
| 5.200%, 10/20/2048 | | | 875 | | | | 834 | |
| Minnesota Housing Finance Agency, Residential Housing, | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.650%, 07/01/2033 | | | 665 | | | | 664 | |
| Series B1-RMK (AMT) | | | | | | | | |
| 5.350%, 07/01/2033 | | | 1,305 | | | | 1,252 | |
| Series D (AMT) | | | | | | | | |
| 4.700%, 07/01/2027 | | | 3,465 | | | | 3,114 | |
| Series F (AMT) | | | | | | | | |
| 5.400%, 07/01/2030 | | | 2,185 | | | | 2,132 | |
| Minnesota Housing Finance Agency, Single Family Mortgage, Series C (AMT) | | | | | | | | |
| 6.100%, 07/01/2030 | | | 280 | | | | 280 | |
| Moorhead Senior Housing, Sheyenne Crossing Project | | | | | | | | |
| 5.650%, 04/01/2041 | | | 1,620 | | | | 1,111 | |
| St. Paul Housing & Redevelopment Authority, Rossy & Richard Shaller, Series A | | | | | | | | |
| 5.250%, 10/01/2042 | | | 1,100 | | | | 719 | |
| White Bear Lake, Multifamily Housing, Lake Square, Series A (FHA) | | | | | | | | |
| 6.000%, 08/01/2020 | | | 1,020 | | | | 1,021 | |
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2009 Annual Report
| | | | | | | | | |
| Minnesota Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Worthington Housing Authority, Meadows Worthington Project, Series A | | | | | | | | |
| 5.375%, 05/01/2037 | | $ | 880 | | | $ | 578 | |
| | | | | | | | | |
| | | | | | | | 18,569 | |
| | | | | | | | | |
| Lease Revenue – 4.8% |
| Lakeville Housing & Redevelopment Authority, Ice Arena Project | | | | | | | | |
| 4.625%, 02/01/2032 | | | 585 | | | | 528 | |
| New Brighton Economic Development Authority, Public Safety Facility, Series A | | | | | | | | |
| 4.900%, 02/01/2015 | | | 850 | | | | 856 | |
| 5.000%, 02/01/2016 | | | 895 | | | | 900 | |
| 5.100%, 02/01/2017 | | | 900 | | | | 905 | |
| Pine County Housing & Redevelopment Authority, Series A | | | | | | | | |
| 5.000%, 02/01/2028 | | | 1,000 | | | | 927 | |
| 5.000%, 02/01/2031 | | | 1,890 | | | | 1,707 | |
| St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | | | | | | | | |
| 4.750%, 12/01/2026 | | | 500 | | | | 476 | |
| St. Paul Port Authority, Regions Hospital Parking Ramp Project, Series 1 | | | | | | | | |
| 5.000%, 08/01/2036 | | | 1,375 | | | | 871 | |
| | | | | | | | | |
| | | | | | | | 7,170 | |
| | | | | | | | | |
| Miscellaneous – 1.2% |
| Little Canada Commercial Development, RLF Minnesota Project | | | | | | | | |
| 5.000%, 04/01/2013 | | | 650 | | | | 636 | |
| Seaway Port Authority of Duluth, Cargill Income Project | | | | | | | | |
| 4.200%, 05/01/2013 | | | 1,130 | | | | 1,137 | |
| | | | | | | | | |
| | | | | | | | 1,773 | |
| | | | | | | | | |
| Recreational Facility Authority – 1.1% |
| Moorhead Golf Course, Series B | | | | | | | | |
| 5.875%, 12/01/2021 | | | 2,000 | | | | 1,701 | |
| | | | | | | | | |
| Tax Revenue – 0.3% |
| Minneapolis St. Anthony Falls Project | | | | | | | | |
| 5.650%, 02/01/2027 | | | 400 | | | | 264 | |
| 5.750%, 02/01/2027 | | | 300 | | | | 200 | |
| | | | | | | | | |
| | | | | | | | 464 | |
| | | | | | | | | |
| Transportation – 6.4% |
| Minneapolis & St. Paul Metropolitan Airports Commission, Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2017 | | | 1,000 | | | | 1,061 | |
| 5.000%, 01/01/2019 | | | 3,250 | | | | 3,365 | |
| 5.000%, 01/01/2020 | | | 5,000 | | | | 5,135 | |
| | | | | | | | | |
| | | | | | | | 9,561 | |
| | | | | | | | | |
| Utilities – 18.6% |
| Chaska Electric, Series A | | | | | | | | |
| 6.100%, 10/01/2030 | | | 45 | | | | 45 | |
| Minnesota Public Facilities Authority, Clean Water, Series B | | | | | | | | |
| 5.000%, 03/01/2018 | | | 2,000 | | | | 2,271 | |
| Northern Municipal Power Agency, Minnesota Electric Systems, | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 5.000%, 01/01/2018 | | | 1,985 | | | | 2,090 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2026 | | | 2,000 | | | | 2,007 | |
| Puerto Rico Electric Power Authority, Series SS (NATL) | | | | | | | | |
| 5.000%, 07/01/2024 | | | 2,000 | | | | 1,874 | |
| Southern Minnesota Municipal Power Agency, | | | | | | | | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
4.365%, 01/01/2019 ¤ | | | 4,000 | | | | 2,653 | |
4.763%, 01/01/2021 ¤ | | | 5,265 | | | | 3,064 | |
5.020%, 01/01/2023 ¤ | | | 3,000 | | | | 1,536 | |
5.139%, 01/01/2024 ¤ | | | 11,000 | | | | 5,271 | |
5.238%, 01/01/2025 ¤ | | | 4,770 | | | | 2,140 | |
5.318%, 01/01/2026 ¤ | | | 6,300 | | | | 2,649 | |
5.397%, 01/01/2027 ¤ | | | 3,000 | | | | 1,181 | |
| Western Minnesota Municipal Power Agency, Escrowed to Maturity (NATL) | | | | | | | | |
| 9.750%, 01/01/2016 § | | | 410 | | | | 560 | |
| Series A (AMBAC) | | | | | | | | |
| 5.500%, 01/01/2015 | | | 550 | | | | 578 | |
| | | | | | | | | |
| | | | | | | | 27,919 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 129,463 | |
| | | | | | | | | |
| General Obligations – 10.4% |
| Burnsville Independent School District #191, Alternative Facilities, Series A (MSDCEP) | | | | | | | | |
| 4.500%, 02/01/2022 | | | 1,430 | | | | 1,478 | |
| Hopkins Independent School District #270, | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2026 | | | 1,000 | | | | 970 | |
| Minneapolis Sports Arena Project | | | | | | | | |
| 5.100%, 04/01/2013 | | | 500 | | | | 501 | |
| 5.100%, 10/01/2013 | | | 250 | | | | 251 | |
| Minnesota | | | | | | | | |
| 5.000%, 08/01/2013 | | | 2,000 | | | | 2,261 | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2018 | | | 2,000 | | | | 2,300 | |
| Minnesota Highway & Various Purpose | | | | | | | | |
| 5.000%, 08/01/2020 | | | 3,800 | | | | 4,217 | |
| Mounds View Independent School District #621, Series A (MSDCEP) | | | | | | | | |
| 3.500%, 02/01/2018 | | | 2,070 | | | | 2,081 | |
| Perham, Disposal System (AMT) | | | | | | | | |
| 6.000%, 05/01/2022 | | | 1,500 | | | | 1,467 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 15,526 | |
| | | | | | | | | |
| Certificate of Participation – 1.4% |
| Duluth Independent School District #709, | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 2,000 | | | | 2,043 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $156,066) | | | | | | | 147,032 | |
| | | | | | | | | |
Short-Term Investments – 0.8% |
| Money Market Fund – 0.7% |
| Federated Minnesota Municipal Cash Trust | | | 1,014,283 | | | | 1,014 | |
| | | | | | | | | |
| Variable Rate Demand Note v – 0.1% |
| Brown County, Martin Luther College Project | | | | | | | | |
| 3.530%, 09/01/2024 | | $ | 200 | | | | 200 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $1,214) | | | | | | | 1,214 | |
| | | | | | | | | |
Total Investments 5 – 99.0% | | | | | | | | |
(Cost $157,280) | | | | | | | 148,246 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.0% | | | | | | | 1,554 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 149,800 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 61
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
Minnesota Tax Free Fund (concluded)
| | |
| ⊳ | | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements. |
| |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| v | | Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and a right of demand to receive payment of the principal plus accrued interest at specified dates. The coupon rate shown represents the rate as of June 30, 2009. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $157,452. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 3,279 | |
| Gross unrealized depreciation | | | (12,485 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (9,206 | ) |
| | | | | |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $14,102, which represents 9.4% of total net assets. |
| |
| FHA – | Federal Housing Administration |
| |
| FHLMC – | Federal Home Loan Mortgage Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| GNMA – | Government National Mortgage Association |
| |
| MSDCEP – | Minnesota School District Credit Enhancement Program |
| |
| NATL – | National Public Finance Guarantee Corporation |
Minnesota Tax Free Fund (concluded)
| | | | | | | | | |
| Missouri Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 97.9% |
| Revenue Bonds – 83.1% |
| Continuing Care Retirement Communities – 4.0% |
| Cole County Industrial Development Authority, Lutheran Services Heisinger Project | | | | | | | | |
| 5.250%, 02/01/2024 | | $ | 2,000 | | | $ | 1,659 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 500 | | | | 342 | |
| Lee’s Summit Industrial Development Authority, Senior Living Facilities, John Knox Village Group, Series A | | | | | | | | |
| 5.000%, 08/15/2014 | | | 1,035 | | | | 966 | |
| Missouri Health & Educational Facilities Authority, Senior Living Facilities, Lutheran Senior, Series A | | | | | | | | |
| 5.375%, 02/01/2035 | | | 1,500 | | | | 1,117 | |
| St. Louis County Industrial Development Authority, Friendship Village West, Series A | | | | | | | | |
| 5.500%, 09/01/2028 | | | 2,000 | | | | 1,628 | |
| | | | | | | | | |
| | | | | | | | 5,712 | |
| | | | | | | | | |
| Education – 7.3% |
| Curators University System Facilities, Series A | | | | | | | | |
| 5.000%, 11/01/2033 | | | 1,000 | | | | 1,001 | |
| Lincoln University Auxiliary System (AGTY) | | | | | | | | |
| 5.125%, 06/01/2037 | | | 1,000 | | | | 966 | |
| Missouri Development Finance Board, Midwest Research Institute Project | | | | | | | | |
| 5.000%, 11/01/2017 | | | 1,185 | | | | 1,052 | |
| Missouri Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project | | | | | | | | |
| 5.000%, 11/01/2019 | | | 2,540 | | | | 2,638 | |
| Missouri Health & Educational Facilities Authority, Washington University, Series A | | | | | | | | |
| 5.000%, 02/15/2019 | | | 1,465 | | | | 1,600 | |
| 5.375%, 03/15/2039 | | | 3,000 | | | | 3,141 | |
| | | | | | | | | |
| | | | | | | | 10,398 | |
| | | | | | | | | |
| Healthcare – 20.2% |
| Boone County Hospital | | | | | | | | |
| 5.050%, 08/01/2020 | | | 1,200 | | | | 1,143 | |
| 5.625%, 08/01/2038 | | | 2,000 | | | | 1,823 | |
| Cape Girardeau County Industrial Development Authority, Health Care Facilities, Southeast Missouri Hospital | | | | | | | | |
| 5.625%, 06/01/2022 | | | 245 | | | | 231 | |
| Pre-refunded 06/01/2012 @ 100 | | | | | | | | |
5.625%, 06/01/2022 ◊ | | | 1,255 | | | | 1,397 | |
| Cape Girardeau County Industrial Development Authority, Health Care Facilities, St. Francis Medical Center, Series A | | | | | | | | |
| 5.125%, 06/01/2023 | | | 250 | | | | 247 | |
| 5.125%, 06/01/2024 | | | 200 | | | | 194 | |
| 5.500%, 06/01/2029 | | | 500 | | | | 492 | |
| 5.750%, 06/01/2039 | | | 2,000 | | | | 1,972 | |
| Carthage Hospital | | | | | | | | |
| 6.000%, 04/01/2038 | | | 1,000 | | | | 668 | |
| Cass County Hospital | | | | | | | | |
| 5.500%, 05/01/2027 | | | 2,000 | | | | 1,623 | |
| Clinton County Industrial Development Authority, Health Facilities, Cameron Regional Medical Center | | | | | | | | |
| 5.000%, 12/01/2037 | | | 1,000 | | | | 576 | |
The accompanying notes are an integral part of the financial statements.
62 First American Funds 2009 Annual Report
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Hannibal Industrial Development Authority, Health Facilities | | | | | | | | |
| 4.300%, 03/01/2013 | | $ | 1,345 | | | $ | 1,330 | |
| 5.000%, 03/01/2022 | | | 1,000 | | | | 906 | |
| Indiana Finance Authority Health Systems, Sisters of St. Francis Health | | | | | | | | |
| 5.250%, 11/01/2024 | | | 1,000 | | | | 1,004 | |
| Joplin Industrial Development Authority Health Facilities, Freeman Health Systems Project | | | | | | | | |
| 5.500%, 02/15/2024 | | | 2,000 | | | | 1,768 | |
| Missouri Health & Educational Facilities Authority, BJC Health System, Series A Escrowed to Maturity | | | | | | | | |
| 6.750%, 05/15/2012 § | | | 3,310 | | | | 3,817 | |
| Missouri Health & Educational Facilities Authority, Jefferson Memorial Hospital (RAAI) | | | | | | | | |
| 5.000%, 08/15/2019 | | | 2,300 | | | | 2,245 | |
| Missouri Health & Educational Facilities Authority, Lake Regional Health System Project | | | | | | | | |
| 5.000%, 02/15/2012 | | | 515 | | | | 518 | |
| Missouri Health & Educational Facilities Authority, SSM Health Care, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2036 | | | 2,000 | | | | 1,898 | |
| Series B (NATL) | | | | | | | | |
| 5.000%, 06/01/2018 | | | 445 | | | | 447 | |
Missouri Health & Educational Facilities Authority, St. Luke’s Health, Series 2003-B (FSA) | | | | | | | | |
| 5.500%, 11/15/2032 | | | 2,000 | | | | 2,048 | |
| Saline County Industrial Development Authority, Health Facilities, John Fitzgibbon Memorial Hospital | | | | | | | | |
| 5.625%, 12/01/2035 | | | 1,000 | | | | 657 | |
| St. Louis County Industrial Development Authority, Health Facilities, Ranken-Jordan Project | | | | | | | | |
| 4.250%, 11/15/2014 | | | 125 | | | | 111 | |
| 5.000%, 11/15/2027 | | | 670 | | | | 407 | |
| 5.000%, 11/15/2035 | | | 1,300 | | | | 746 | |
Series A, Pre-refunded 11/15/2013 @ 100 | | | | | | | | |
6.625%, 11/15/2035 ◊ | | | 500 | | | | 596 | |
| | | | | | | | | |
| | | | | | | | 28,864 | |
| | | | | | | | | |
| Housing – 4.1% |
| Missouri Housing Development Commission, Homeownership Loan Program, | | | | | | | | |
| Series A1 (AMT) (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.300%, 03/01/2039 | | | 655 | | | | 631 | |
| Series B (AMT) (FNMA) (GNMA) | | | | | | | | |
| 4.800%, 09/01/2031 | | | 2,175 | | | | 1,966 | |
| Series C1 (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.000%, 09/01/2037 | | | 520 | | | | 475 | |
| Riverside Industrial Development Authority, Riverside Horizons Project, Series A (ACA) | | | | | | | | |
| 5.000%, 05/01/2027 | | | 1,500 | | | | 1,313 | |
| University City Industrial Development Authority, Multifamily Canterbury, Series A (GNMA) | | | | | | | | |
| 5.950%, 12/20/2025 | | | 1,400 | | | | 1,399 | |
| | | | | | | | | |
| | | | | | | | 5,784 | |
| | | | | | | | | |
| Lease Revenue – 17.3% |
Cape Girardeau County, Jackson School District #R-2 (NATL) | | | | | | | | |
| 5.250%, 03/01/2026 | | | 1,000 | | | | 1,018 | |
| Clay County Public Building Authority, | | | | | | | | |
| Series A (FSA) | | | | | | | | |
| 5.125%, 05/15/2014 | | | 2,000 | | | | 2,005 | |
| Kansas City Municipal Assistance, Capital Appreciation Leasehold, Series B-1, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.408%, 04/15/2027 ¤ | | | 2,000 | | | | 774 | |
| Kansas City Special Facilities, MCI Overhaul Base Project, Series G (AMT) | | | | | | | | |
| 4.750%, 09/01/2028 | | | 4,000 | | | | 3,103 | |
| Missouri Board of Public Buildings, Special Obligation, Series A | | | | | | | | |
| 5.000%, 10/15/2027 | | | 1,000 | | | | 1,026 | |
| Missouri Board of Public Buildings, State Office Building Special Obligation, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 05/01/2017 | | | 1,000 | | | | 1,056 | |
| 5.125%, 05/01/2026 | | | 5,000 | | | | 5,081 | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 05/01/2024 | | | 5,000 | | | | 5,078 | |
| Missouri Development Finance Board, Infrastructure Facilities, Branson, Series A | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,000 | | | | 931 | |
| 5.375%, 12/01/2022 | | | 750 | | | | 683 | |
| Missouri Development Finance Board, Infrastructure Facilities, Independence Water System Improvement, Series C | | | | | | | | |
| 5.750%, 11/01/2029 | | | 500 | | | | 500 | |
Platte County School District #R-3 (MDDP) | | | | | | | | |
| 5.000%, 03/01/2028 | | | 200 | | | | 202 | |
| Springfield Public Building, Capital Improvement Program (AMBAC) | | | | | | | | |
| 5.000%, 03/01/2024 | | | 2,000 | | | | 2,053 | |
| St. Louis Municipal Finance Leasehold, Convention Center Capital Improvement, Series A, Zero Coupon Bond (AGTY) | | | | | | | | |
6.352%, 07/15/2026 ¤ « | | | 1,000 | | | | 345 | |
6.433%, 07/15/2027 ¤ « | | | 1,000 | | | | 319 | |
6.462%, 07/15/2028 ¤ « | | | 1,000 | | | | 298 | |
6.552%, 07/15/2029 ¤ « | | | 1,000 | | | | 275 | |
| | | | | | | | | |
| | | | | | | | 24,747 | |
| | | | | | | | | |
| Miscellaneous – 2.4% |
| Kennett Industrial Development Authority, Manac Trailers USA Inc. Project (LOC: Region’s Bank) (AMT) | | | | | | | | |
| 4.250%, 03/01/2022 | | | 1,500 | | | | 1,296 | |
| 4.250%, 03/01/2024 | | | 500 | | | | 415 | |
| Missouri Development Finance Board, Infrastructure Facilities, Eastland Center Project, Series A | | | | | | | | |
| 4.250%, 04/01/2015 | | | 1,010 | | | | 1,022 | |
| Sugar Creek Industrial Development, Lafarge North America, Series A (AMT) | | | | | | | | |
| 5.650%, 06/01/2037 | | | 1,000 | | | | 737 | |
| | | | | | | | | |
| | | | | | | | 3,470 | |
| | | | | | | | | |
| Revolving Funds – 6.7% |
| Missouri Environmental Improvement & Energy Resources Authority, Water Pollution Control, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 01/01/2029 | | | 1,000 | | | | 1,111 | |
| Series B | | | | | | | | |
| 5.250%, 01/01/2015 | | | 1,225 | | | | 1,241 | |
First American Funds 2009 Annual Report 63
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Series C | | | | | | | | |
| 4.750%, 07/01/2023 | | $ | 410 | | | $ | 430 | |
| 5.000%, 07/01/2023 | | | 6,655 | | | | 6,853 | |
| | | | | | | | | |
| | | | | | | | 9,635 | |
| | | | | | | | | |
| Tax Revenue – 9.2% |
| Columbia Special Obligation, Electric Utility Improvement, Series A | | | | | | | | |
| 5.000%, 10/01/2021 | | | 400 | | | | 427 | |
| 5.000%, 10/01/2023 | | | 445 | | | | 470 | |
| 5.125%, 10/01/2030 | | | 500 | | | | 511 | |
| Fenton Tax Increment Revenue, Gravois Bluffs Redevelopment Project | | | | | | | | |
| 5.000%, 04/01/2014 | | | 1,000 | | | | 1,009 | |
| Harrisonville Towne Center Project | | | | | | | | |
| 4.375%, 11/01/2017 | | | 340 | | | | 339 | |
| 4.500%, 11/01/2022 | | | 715 | | | | 670 | |
| Howard Bend Levee District (SGI) | | | | | | | | |
| 5.500%, 03/01/2026 | | | 1,745 | | | | 1,650 | |
| Jackson County Special Obligation, Harry S Truman Sports Complex (AMBAC) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 3,000 | | | | 3,000 | |
| Kansas City Tax Increment Financing Commission, Maincor Project, Series A | | | | | | | | |
| 5.250%, 03/01/2018 | | | 500 | | | | 419 | |
| Missouri Development Finance Board, Independence Centerpoint Project, Series E | | | | | | | | |
| 5.125%, 04/01/2025 | | | 1,000 | | | | 949 | |
| Missouri Development Finance Board, Independence Crackerneck Creek Project, Series B | | | | | | | | |
| 5.000%, 03/01/2025 | | | 1,000 | | | | 861 | |
| Osage Beach Tax Increment, Prewitt’s Point Project | | | | | | | | |
| 5.000%, 05/01/2023 | | | 1,455 | | | | 993 | |
| Raytown Live Redevelopment Plan, Project #1 | | | | | | | | |
| 5.125%, 12/01/2031 | | | 1,000 | | | | 922 | |
| Riverside Tax Increment, L-385 Levee Project | | | | | | | | |
| 5.250%, 05/01/2020 | | | 1,000 | | | | 932 | |
| | | | | | | | | |
| | | | | | | | 13,152 | |
| | | | | | | | | |
| Transportation – 2.4% |
| Missouri Highways & Transportation Commission | | | | | | | | |
| 4.750%, 05/01/2027 | | | 360 | | | | 367 | |
Series A, Pre-refunded 02/01/2011 @ 100 | | | | | | | | |
5.250%, 02/01/2020 ◊ | | | 2,000 | | | | 2,137 | |
| Puerto Rico Commonwealth Highway & Transportation Authority, Series K | | | | | | | | |
| 5.000%, 07/01/2017 | | | 1,000 | | | | 948 | |
| | | | | | | | | |
| | | | | | | | 3,452 | |
| | | | | | | | | |
| Utilities – 9.5% |
| Carroll County Public Water Supply, District #1 | | | | | | | | |
| 6.000%, 03/01/2039 | | | 500 | | | | 506 | |
| Kansas City Sanitary Sewer System, Series A | | | | | | | | |
| 5.250%, 01/01/2034 | | | 2,000 | | | | 2,030 | |
| Kansas City Water, Series A | | | | | | | | |
| 5.250%, 12/01/2032 | | | 500 | | | | 509 | |
| Metropolitan St. Louis Sewer District, Wastewater Systems, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 05/01/2038 | | | 500 | | | | 527 | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 05/01/2023 | | | 1,075 | | | | 1,109 | |
| Missouri Development Finance Board, Independence Water System Improvements (AMBAC) | | | | | | | | |
| 5.000%, 11/01/2024 | | | 1,000 | | | | 989 | |
| Missouri Joint Municipal Electric Utility Commission, Power Project, Iatan 2 Project, | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 01/01/2039 | | | 2,000 | | | | 2,017 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2028 | | | 1,000 | | | | 965 | |
| Missouri Joint Municipal Electric Utility, Commission, Power Project, Plum Point Project (NATL) | | | | | | | | |
| 5.000%, 01/01/2016 | | | 1,500 | | | | 1,505 | |
| North Central Regional Water Commission, Waterworks Systems | | | | | | | | |
| 5.000%, 01/01/2037 | | | 2,070 | | | | 1,648 | |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | | 1,000 | | | | 953 | |
| St. Joseph Industrial Development Authority, Sewer System Improvements Project | | | | | | | | |
| 4.750%, 04/01/2020 | | | 500 | | | | 489 | |
| 4.750%, 04/01/2021 | | | 390 | | | | 379 | |
| | | | | | | | | |
| | | | | | | | 13,626 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 118,840 | |
| | | | | | | | | |
| General Obligations – 7.5% |
| Blue Springs Neighborhood Improvement | | | | | | | | |
| 5.000%, 02/15/2029 | | | 850 | | | | 860 | |
| Jackson County School District #4, Blue Springs, Series A | | | | | | | | |
| 4.750%, 03/01/2026 | | | 2,000 | | | | 2,042 | |
| Jackson County School District #7, Lee’s Summit | | | | | | | | |
| 4.750%, 03/01/2027 | | | 1,000 | | | | 1,018 | |
| Jefferson City School District, Series A Escrowed to Maturity | | | | | | | | |
| 6.700%, 03/01/2011 § | | | 525 | | | | 557 | |
| North Kansas City School District #74, Direct Deposit Program (MDDP) | | | | | | | | |
| 5.000%, 03/01/2019 | | | 500 | | | | 559 | |
Platte County School District #R-3 (NATL) | | | | | | | | |
| 5.000%, 03/01/2024 | | | 685 | | | | 711 | |
| Puerto Rico Commonwealth, Public Improvement, Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 1,000 | | | | 894 | |
| Richmond Heights, Manhasset Village Neighborhood | | | | | | | | |
| 4.500%, 04/01/2026 | | | 690 | | | | 639 | |
| St. Charles County, Francis Howell School District, Direct Deposit Program (FGIC) (MDDP) (NATL) | | | | | | | | |
| 5.250%, 03/01/2018 | | | 2,095 | | | | 2,411 | |
| (MDDP) | | | | | | | | |
| 5.000%, 03/01/2027 | | | 1,000 | | | | 1,058 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 10,749 | |
| | | | | | | | | |
| Certificates of Participation – 7.3% |
| Belton Refunding & Improvement (NATL) | | | | | | | | |
| 4.375%, 03/01/2019 | | | 500 | | | | 450 | |
| 4.500%, 03/01/2022 | | | 500 | | | | 436 | |
| 5.250%, 03/01/2029 | | | 355 | | | | 300 | |
| Cottleville | | | | | | | | |
| 5.125%, 08/01/2026 | | | 200 | | | | 169 | |
| 5.250%, 08/01/2031 | | | 1,700 | | | | 1,370 | |
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2009 Annual Report
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Hazelwood School District, Energy Improvements Project | | | | | | | | |
| 4.500%, 03/01/2017 | | $ | 515 | | | $ | 531 | |
| 4.500%, 03/01/2018 | | | 445 | | | | 453 | |
| Kansas City Metropolitan Junior College District | | | | | | | | |
| 4.500%, 07/01/2021 | | | 1,375 | | | | 1,406 | |
| Lincoln County Public Water Supply, District #1 | | | | | | | | |
| 6.750%, 06/15/2035 | | | 1,500 | | | | 1,471 | |
| Missouri School Boards Association, Liberty Public School District #53 (FSA) | | | | | | | | |
| 5.250%, 03/01/2025 | | | 1,015 | | | | 1,072 | |
| Texas County Justice Center Project (AGTY) | | | | | | | | |
| 4.500%, 12/01/2025 | | | 2,400 | | | | 2,295 | |
| Union, Series A | | | | | | | | |
| 5.200%, 07/01/2023 | | | 520 | | | | 496 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 10,449 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $146,438) | | | | | | | 140,038 | |
| | | | | | | | | |
| Short-Term Investment – 1.9% |
First American Tax Free Obligations Fund, Class Z Å | | | | | | | | |
(Cost $2,762) | | | 2,761,921 | | | | 2,762 | |
| | | | | | | | | |
Total Investments 5 – 99.8% | | | | | | | | |
(Cost $149,200) | | | | | | | 142,800 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.2% | | | | | | | 245 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 143,045 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $1,240 or 0.9% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $149,200. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 2,915 | |
| Gross unrealized depreciation | | | (9,315 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (6,400 | ) |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $8,623, which represents 6.0% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHLMC – | Federal Home Loan Mortgage Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
| |
| MDDP – | Missouri Direct Deposit Program |
Missouri Tax Free Fund (concluded)
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
First American Funds 2009 Annual Report 65
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Nebraska Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 98.3% |
| Revenue Bonds – 76.2% |
| Continuing Care Retirement Communities – 2.4% |
| Colorado Health Facilities Authority, Christian Living Communities Project, Series A | | | | | | | | |
| 5.750%, 01/01/2026 | | $ | 100 | | | $ | 82 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 275 | | | | 168 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 200 | | | | 159 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 5.000%, 09/01/2025 | | | 600 | | | | 535 | |
| | | | | | | | | |
| | | | | | | | 944 | |
| | | | | | | | | |
| Education – 19.6% |
| Anderson, Indiana, Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2032 | | | 575 | | | | 406 | |
| Colorado Educational & Cultural Facilities Authority, Charter School | | | | | | | | |
| 5.625%, 05/01/2040 | | | 990 | | | | 863 | |
| Missouri Health & Educational Facilities Authority, Washington University, Series A | | | | | | | | |
| 5.375%, 03/15/2039 | | | 500 | | | | 524 | |
| Nebraska Educational Finance Authority (RAAI) | | | | | | | | |
| 5.000%, 04/01/2017 | | | 605 | | | | 576 | |
| Nebraska Elementary & Secondary School Finance Authority, Boy’s Town Project | | | | | | | | |
| 4.750%, 09/01/2028 | | | 500 | | | | 484 | |
| Nebraska Utility Corporation, University of Nebraska, Lincoln Project | | | | | | | | |
| 5.250%, 01/01/2015 | | | 1,045 | | | | 1,121 | |
| University of Nebraska Facilities Corporation, Medical Center Research Project | | | | | | | | |
| 5.000%, 02/15/2015 | | | 500 | | | | 528 | |
| University of Nebraska, Lincoln Memorial Stadium, Series A | | | | | | | | |
| 5.000%, 11/01/2015 | | | 500 | | | | 528 | |
| University of Nebraska, Lincoln Student Fees | | | | | | | | |
| 5.000%, 07/01/2022 | | | 750 | | | | 771 | |
| University of Nebraska, Omaha Health & Recreation Project | | | | | | | | |
| 5.000%, 05/15/2033 | | | 1,000 | | | | 1,001 | |
| University of Nebraska, Omaha Student Facilities Project | | | | | | | | |
| 5.000%, 05/15/2032 | | | 350 | | | | 351 | |
| University of Nebraska, Omaha Student Housing Project | | | | | | | | |
| 5.000%, 05/15/2023 | | | 500 | | | | 514 | |
| | | | | | | | | |
| | | | | | | | 7,667 | |
| | | | | | | | | |
| Healthcare – 20.4% |
| Adams County Hospital Authority #1, Mary Lanning Memorial Hospital Project (RAAI) | | | | | | | | |
| 5.250%, 12/15/2033 | | | 1,000 | | | | 874 | |
| Colorado Health Facilities Authority, Evangelical Lutheran, Series B | | | | | | | | |
| 5.000%, 06/01/2039 | | | 500 | | | | 499 | |
| Douglas County Hospital Authority #2, Boy’s Town Project | | | | | | | | |
| 4.750%, 09/01/2028 | | | 1,000 | | | | 921 | |
| Douglas County Hospital Authority #2, Children’s Hospital | | | | | | | | |
| 6.000%, 08/15/2028 | | | 1,000 | | | | 1,016 | |
| Douglas County Hospital Authority #3, Methodist Health | | | | | | | | |
| 5.500%, 11/01/2038 | | | 1,000 | | | | 876 | |
| Halifax Florida Hospital, Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 600 | | | | 462 | |
| Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A | | | | | | | | |
| 5.250%, 02/15/2030 | | | 600 | | | | 495 | |
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project, Series A Pre-refunded 06/01/2011 @ 100 (AMBAC) | | | | | | | | |
5.000%, 06/01/2019 ◊ | | | 500 | | | | 538 | |
Madison County Hospital Authority #1, Faith Regional Health Services Project Pre-refunded 01/01/2012 @ 100 (RAAI) | | | | | | | | |
5.500%, 07/01/2021 ◊ | | | 500 | | | | 547 | |
| Nebraska Investment Finance Authority, Great Plains Regional Medical Center Project (RAAI) | | | | | | | | |
| 5.200%, 11/15/2016 | | | 250 | | | | 255 | |
| 5.300%, 11/15/2017 | | | 805 | | | | 822 | |
| Platte County Hospital Authority #1, Columbus Community Hospital Project (RAAI) | | | | | | | | |
| 5.850%, 05/01/2014 | | | 650 | | | | 659 | |
| | | | | | | | | |
| | | | | | | | 7,964 | |
| | | | | | | | | |
| Housing – 1.5% |
| Nebraska Investment Finance Authority, Single Family Housing, Series D (AMT) | | | | | | | | |
| 4.950%, 09/01/2026 | | | 5 | | | | 5 | |
| Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments (GNMA) | | | | | | | | |
| 5.150%, 11/20/2022 | | | 580 | | | | 586 | |
| | | | | | | | | |
| | | | | | | | 591 | |
| | | | | | | | | |
| Miscellaneous – 3.0% |
| Forsyth, Montana, Pollution Control, Northwestern Corporation (AMBAC) | | | | | | | | |
| 4.650%, 08/01/2023 | | | 585 | | | | 489 | |
| Washington County Wastewater & Solid Waste Disposal Facilities, Cargill Income Project (AMT) | | | | | | | | |
| 4.850%, 04/01/2035 | | | 500 | | | | 400 | |
| Washington County Wastewater Facilities, Cargill Income Project (AMT) | | | | | | | | |
| 5.900%, 11/01/2027 | | | 300 | | | | 293 | |
| | | | | | | | | |
| | | | | | | | 1,182 | |
| | | | | | | | | |
| Recreational Facility Authority – 3.3% |
| Douglas County Zoo Facility, Omaha’s Henry Doorly Zoo Project | | | | | | | | |
| 4.750%, 09/01/2024 | | | 1,365 | | | | 1,272 | |
| | | | | | | | | |
| Revolving Funds – 1.5% |
| Nebraska Investment Finance Authority, Drinking Water System | | | | | | | | |
| 5.150%, 01/01/2016 | | | 580 | | | | 584 | |
| | | | | | | | | |
| Tax Revenue – 3.0% |
| Omaha Special Tax | | | | | | | | |
| 5.250%, 10/15/2028 | | | 650 | | | | 678 | |
| Omaha Special Tax, Series A | | | | | | | | |
| 5.125%, 02/01/2032 | | | 500 | | | | 504 | |
| | | | | | | | | |
| | | | | | | | 1,182 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2009 Annual Report
| | | | | | | | | |
| Nebraska Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Utilities – 21.5% |
| Burt County Public Power District, Electric Systems | | | | | | | | |
| 4.850%, 07/01/2026 | | $ | 335 | | | $ | 303 | |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 750 | | | | 639 | |
| Grand Island Electric Systems (NATL) | | | | | | | | |
| 5.125%, 08/15/2016 | | | 750 | | | | 795 | |
| Hastings Electric Systems (FSA) | | | | | | | | |
| 5.000%, 01/01/2015 | | | 250 | | | | 263 | |
| Lincoln Electric Systems | | | | | | | | |
| 5.000%, 09/01/2026 | | | 250 | | | | 253 | |
| Municipal Energy Agency of Nebraska, Power Supply Systems, Series A (BHAC) | | | | | | | | |
| 5.375%, 04/01/2039 | | | 150 | | | | 155 | |
| Nebraska Public Power District, Series B | | | | | | | | |
| 5.000%, 01/01/2033 | | | 500 | | | | 490 | |
| Omaha Public Power District, Electric Revenue, Series A | | | | | | | | |
| 5.500%, 02/01/2033 | | | 1,000 | | | | 1,039 | |
| 5.500%, 02/01/2035 | | | 1,200 | | | | 1,241 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | | | | | | | | |
| 5.000%, 07/01/2025 | | | 500 | | | | 484 | |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | | 1,000 | | | | 953 | |
| South Sioux City Combined Electric, Water & Sewer | | | | | | | | |
| 4.750%, 08/01/2027 | | | 250 | | | | 221 | |
| Southern Nebraska Public Power District, Electric Systems | | | | | | | | |
| 5.250%, 12/15/2028 | | | 1,500 | | | | 1,581 | |
| | | | | | | | | |
| | | | | | | | 8,417 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 29,803 | |
| | | | | | | | | |
| General Obligations – 22.1% |
| Brown County | | | | | | | | |
| 4.350%, 06/15/2026 | | | 200 | | | | 194 | |
| 4.700%, 12/15/2026 | | | 400 | | | | 389 | |
| Buffalo County (AGTY) | | | | | | | | |
| 6.000%, 12/15/2028 | | | 195 | | | | 208 | |
| Douglas County School District #10, Elkhorn Public Schools | | | | | | | | |
| 6.000%, 06/15/2028 | | | 500 | | | | 527 | |
| Douglas County School District #17, Millard Public Schools | | | | | | | | |
| 4.000%, 06/15/2017 | | | 1,000 | | | | 1,036 | |
| Douglas County School District #54, Ralston Public Schools (FSA) | | | | | | | | |
| 5.000%, 12/15/2016 | | | 845 | | | | 902 | |
| La Vista | | | | | | | | |
| 4.800%, 12/15/2026 | | | 345 | | | | 340 | |
| Lancaster County Correctional Facility, Joint Public Agency Building | | | | | | | | |
| 2.000%, 12/01/2010 | | | 1,000 | | | | 1,016 | |
| Lancaster County School District #1, Lincoln Public Schools | | | | | | | | |
| 5.250%, 07/15/2019 | | | 220 | | | | 228 | |
Lincoln-Lancaster County Public Building Commission, Tax Supported Lease Rental | | | | | | | | |
| 4.500%, 10/15/2026 | | | 750 | | | | 743 | |
| Omaha | | | | | | | | |
| 5.750%, 10/15/2028 | | | 450 | | | | 502 | |
| Omaha-Douglas Public Building Commission | | | | | | | | |
| 4.900%, 05/01/2016 | | | 500 | | | | 527 | |
| 5.100%, 05/01/2020 | | | 300 | | | | 311 | |
| Puerto Rico Commonwealth, Series C-7 (NATL) | | | | | | | | |
| 6.000%, 07/01/2027 | | | 250 | | | | 248 | |
| Puerto Rico Commonwealth, Public Improvement, Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 375 | | | | 335 | |
| Saunders County (FSA) | | | | | | | | |
| 5.000%, 11/01/2030 | | | 650 | | | | 640 | |
| Scotts Bluff County | | | | | | | | |
| 4.550%, 01/15/2026 | | | 500 | | | | 500 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 8,646 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $39,032) | | | | | | | 38,449 | |
| | | | | | | | | |
Short-Term Investment – 0.9% |
First American Tax Free Obligations Fund, Class Z Å | | | | | | | | |
(Cost $353) | | | 353,470 | | | | 353 | |
| | | | | | | | | |
Total Investments 5 – 99.2% | | | | | | | | |
(Cost $39,385) | | | | | | | 38,802 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.8% | | | | | | | 319 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 39,121 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $39,628. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,016 | |
| Gross unrealized depreciation | | | (1,842 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (826 | ) |
| | | | | |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $698, which represents 1.8% of total net assets. |
| |
| BHAC – | Berkshire Hathaway Assurance Corporation |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance, Inc. |
First American Funds 2009 Annual Report 67
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Ohio Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 96.9% |
| Revenue Bonds – 64.6% |
| Continuing Care Retirement Communities – 2.8% |
| Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2026 | | $ | 800 | | | $ | 554 | |
| Series A (RAAI) | | | | | | | | |
| 5.125%, 07/01/2022 | | | 500 | | | | 456 | |
| Hamilton County Health Care, Life Enriching Communities Project, Series A | | | | | | | | |
| 5.000%, 01/01/2027 | | | 400 | | | | 286 | |
| | | | | | | | | |
| | | | | | | | 1,296 | |
| | | | | | | | | |
| Education – 17.5% |
| Cincinnati Port Development Authority, Economic Development Authority, Sisters of Mercy | | | | | | | | |
| 5.000%, 10/01/2025 | | | 250 | | | | 225 | |
| Ohio Higher Educational Facilities, Baldwin-Wallace College Project | | | | | | | | |
| 5.000%, 12/01/2013 | | | 750 | | | | 792 | |
| Ohio Higher Educational Facilities, College of Wooster Project | | | | | | | | |
| 5.000%, 09/01/2020 | | | 400 | | | | 405 | |
| Ohio Higher Educational Facilities, John Carroll University Project | | | | | | | | |
| 5.000%, 04/01/2019 | | | 1,000 | | | | 1,014 | |
| Ohio Higher Educational Facilities, Mount Union College Project | | | | | | | | |
| 5.000%, 10/01/2031 | | | 1,000 | | | | 917 | |
| Ohio Higher Educational Facilities, Ohio Northern University Project | | | | | | | | |
| 5.000%, 05/01/2026 | | | 1,000 | | | | 941 | |
| Ohio Higher Educational Facilities, Otterbein College Project, Series A | | | | | | | | |
| 5.500%, 12/01/2028 | | | 500 | | | | 507 | |
| Ohio Higher Educational Facilities, University of Dayton Project | | | | | | | | |
| 5.375%, 12/01/2029 | | | 645 | | | | 649 | |
| Ohio Higher Educational Facilities, Wittenburg University 2005 Project | | | | | | | | |
| 5.000%, 12/01/2024 | | | 505 | | | | 414 | |
Ohio Higher Educational Facilities, Xavier University Project Pre-refunded 05/01/2013 @ 100 (FGIC) | | | | | | | | |
5.250%, 05/01/2016 ◊ | | | 1,000 | | | | 1,121 | |
University of Cincinnati, Series A
(FGIC) (NATL) | | | | | | | | |
| 5.500%, 06/01/2014 | | | 1,000 | | | | 1,073 | |
| | | | | | | | | |
| | | | | | | | 8,058 | |
| | | | | | | | | |
| Healthcare – 11.8% |
| Akron, Bath & Copley Joint Township Hospital Facilities, Summa Health Systems, Series A (RAAI) | | | | | | | | |
| 5.250%, 11/15/2016 | | | 300 | | | | 296 | |
| Fairfield County Hospital Facilities, Fairfield Medical Center Project (RAAI) | | | | | | | | |
| 5.000%, 06/15/2022 | | | 345 | | | | 314 | |
| Franklin County Hospital, Nationwide Childrens, Series A | | | | | | | | |
| 4.750%, 11/01/2023 | | | 365 | | | | 350 | |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.625%, 08/15/2029 | | | 750 | | | | 661 | |
| Lorain County Hospital, Catholic Healthcare | | | | | | | | |
| 5.500%, 10/01/2017 | | | 350 | | | | 374 | |
| Lucas County Hospital, Promedica Healthcare, Series D | | | | | | | | |
| 5.000%, 11/15/2038 | | | 400 | | | | 354 | |
| Miami County Hospital Facilities, Refunding & Improvement, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,000 | | | | 823 | |
| Montgomery County, Catholic Health Initiatives, Series D | | | | | | | | |
| 6.250%, 10/01/2033 | | | 100 | | | | 105 | |
| Ohio Higher Educational Facilities, University Hospital Health System, Series 2009A | | | | | | | | |
| 6.750%, 01/15/2039 | | | 500 | | | | 511 | |
| Richland County Hospital Facilities, Medcentral Health Systems | | | | | | | | |
| 5.250%, 11/15/2036 | | | 535 | | | | 446 | |
| Ross County Hospital, Adena Health Systems | | | | | | | | |
| 5.500%, 12/01/2028 | | | 500 | | | | 485 | |
| Scioto County Hospital, Southern Ohio Medical Center | | | | | | | | |
| 5.750%, 02/15/2038 | | | 800 | | | | 738 | |
| | | | | | | | | |
| | | | | | | | 5,457 | |
| | | | | | | | | |
| Housing – 5.7% |
| Ohio Housing Finance Agency, Residential Mortgage Backed Securities, | | | | | | | | |
| Series C (GNMA) (FNMA) (FHLMC) | | | | | | | | |
5.200%, 09/01/2029 « | | | 1,000 | | | | 1,000 | |
| Series E (AMT) (FNMA) (GNMA) | | | | | | | | |
| 4.850%, 09/01/2026 | | | 645 | | | | 621 | |
| Series F (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.450%, 09/01/2033 | | | 995 | | | | 1,018 | |
| | | | | | | | | |
| | | | | | | | 2,639 | |
| | | | | | | | | |
| Lease Revenue – 4.5% |
| Cleveland-Cuyahoga County Port Authority, Rita Project (RAAI) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 750 | | | | 685 | |
| Riversouth Authority, Lazarus Building Redevelopment, Series A | | | | | | | | |
| 5.750%, 12/01/2027 | | | 400 | | | | 322 | |
| Riversouth Authority, Riverfront Area Redevelopment, Series A | | | | | | | | |
| 5.250%, 12/01/2017 | | | 1,000 | | | | 1,079 | |
| | | | | | | | | |
| | | | | | | | 2,086 | |
| | | | | | | | | |
| Miscellaneous – 2.2% |
| Toledo-Lucas County Port Authority Facilities, Cargill Income Project, Series B | | | | | | | | |
| 4.500%, 12/01/2015 | | | 1,000 | | | | 1,031 | |
| | | | | | | | | |
| Revolving Funds – 2.4% |
Ohio Water Development Authority, Water Pollution Control Pre-refunded 06/01/2012 @ 100 | | | | | | | | |
5.050%, 12/01/2021 ◊ | | | 1,000 | | | | 1,107 | |
| | | | | | | | | |
| Tax Revenue – 1.1% |
| Buckeye Tobacco Settlement, Series A2 | | | | | | | | |
| 5.875%, 06/01/2030 | | | 200 | | | | 141 | |
| Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project | | | | | | | | |
| 5.250%, 12/01/2023 | | | 400 | | | | 357 | |
| | | | | | | | | |
| | | | | | | | 498 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2009 Annual Report
| | | | | | | | | |
| Ohio Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Transportation – 2.1% |
| Columbus Regional Airport Authority (NATL) | | | | | | | | |
| 5.000%, 01/01/2028 | | $ | 1,000 | | | $ | 962 | |
| | | | | | | | | |
| Utilities – 14.5% |
| American Municipal Power, Prairie State Energy Campus Project, Series A | | | | | | | | |
| 5.000%, 02/15/2031 | | | 1,000 | | | | 962 | |
| Columbus Sewer System, Series A | | | | | | | | |
| 4.250%, 06/01/2030 | | | 1,000 | | | | 945 | |
| Hamilton County Sewer System, Metropolitan Sewer District, Series A (NATL) | | | | | | | | |
| 5.000%, 12/01/2026 | | | 930 | | | | 957 | |
| Hamilton Electric, Series A (FSA) | | | | | | | | |
| 4.300%, 10/15/2016 | | | 1,000 | | | | 1,064 | |
| Montgomery County Water, Greater Moraine Beaver (AMBAC) | | | | | | | | |
| 5.375%, 11/15/2016 | | | 1,000 | | | | 1,011 | |
| Northeast Ohio Regional Sewer District, Wastewater (NATL) | | | | | | | | |
| 4.500%, 11/15/2037 | | | 700 | | | | 632 | |
| Ohio Water Development Authority, Fresh Water Services Escrowed to Maturity (AMBAC) | | | | | | | | |
| 5.800%, 12/01/2011 § | | | 750 | | | | 752 | |
| Puerto Rico Electric Power Authority, | | | | | | | | |
| Series WW | | | | | | | | |
| 5.375%, 07/01/2023 | | | 400 | | | | 391 | |
| | | | | | | | | |
| | | | | | | | 6,714 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 29,848 | |
| | | | | | | | | |
| General Obligations – 32.3% |
| Cincinnati City School District, Classroom Construction & Improvement (FGIC) (NATL) | | | | | | | | |
| 5.250%, 12/01/2019 | | | 535 | | | | 595 | |
| 5.250%, 12/01/2027 | | | 380 | | | | 400 | |
| Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC) (NATL) | | | | | | | | |
| 5.000%, 12/01/2011 | | | 500 | | | | 534 | |
| Franklin County | | | | | | | | |
| 4.500%, 12/01/2027 | | | 690 | | | | 699 | |
| Gahanna (NATL) | | | | | | | | |
| 5.000%, 12/01/2027 | | | 400 | | | | 412 | |
| Greene County, General Infrastructure (AMBAC) | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 1,052 | |
| Highland School District Zero Coupon Bond (OSDCEP) | | | | | | | | |
4.978%, 12/01/2022 ¤ | | | 100 | | | | 52 | |
| Highland School District, School Facilities Construction & Improvement (OSDCEP) | | | | | | | | |
| 5.375%, 12/01/2033 | | | 1,000 | | | | 1,044 | |
| Ohio Common Schools, Series A | | | | | | | | |
| 5.125%, 09/15/2022 | | | 1,000 | | | | 1,044 | |
Ohio Higher Education,
Series A | | | | | | | | |
| 5.000%, 08/01/2022 | | | 1,000 | | | | 1,025 | |
Series A, Pre-refunded 02/01/2011 @ 100 | | | | | | | | |
5.000%, 02/01/2019 ◊ | | | 1,000 | | | | 1,063 | |
| Series B | | | | | | | | |
| 5.000%, 11/01/2015 | | | 1,000 | | | | 1,071 | |
| Ohio State Infrastructure Improvement, Series A | | | | | | | | |
| 5.500%, 02/01/2020 | | | 1,000 | | | | 1,158 | |
Ohio State Parks & Recreational Facilities, Series II-A (FSA) | | | | | | | | |
| 5.250%, 02/01/2020 | | | 1,000 | | | | 1,079 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 260 | | | | 256 | |
| Sidney City School District (FGIC) (NATL) | | | | | | | | |
| 4.375%, 12/01/2027 | | | 755 | | | | 687 | |
| Solon Rebuilding & Improvement | | | | | | | | |
| 5.000%, 12/01/2021 | | | 1,000 | | | | 1,064 | |
| St. Marys City School District, Construction & Improvement (FSA) (OSDCEP) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 600 | | | | 606 | |
| Toledo City School District, School Facilities Improvement (FSA) (OSDCEP) | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 1,087 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 14,928 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $45,475) | | | | | | | 44,776 | |
| | | | | | | | | |
Short-Term Investment – 4.8% |
| Federated Ohio Municipal Cash Trust | | | | | | | | |
(Cost $2,236) | | | 2,236,159 | | | | 2,236 | |
| | | | | | | | | |
Total Investments 5 – 101.7% | | | | | | | | |
(Cost $47,711) | | | | | | | 47,012 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (1.7)% | | | | | | | (782 | ) |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 46,230 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009 the total cost of investments purchased on a when-issued basis was $1,000 or 2.2% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $47,806. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,104 | |
| Gross unrealized depreciation | | | (1,898 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (794 | ) |
| | | | | |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $621, which represents 1.3% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHLMC – | Federal Home Loan Mortgage Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| FSA – | Financial Security Assurance |
| |
| GNMA – | Government National Mortgage Association |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| OSDCEP – | Ohio School District Credit Enhancement Program |
| |
| RAAI – | Radian Asset Assurance Inc. |
First American Funds 2009 Annual Report 69
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 95.9% |
| Revenue Bonds – 42.7% |
| Continuing Care Retirement Communities – 2.8% |
| Clackamas County Hospital Facilities Authority, Robison Jewish Home | | | | | | | | |
| 5.125%, 10/01/2024 | | $ | 1,000 | | | $ | 682 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 1,000 | | | | 685 | |
| Multnomah County Hospital Facilities Authority, Terwilliger Plaza Project | | | | | | | | |
| 6.500%, 12/01/2029 | | | 2,000 | | | | 1,619 | |
| Series A | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 730 | |
| | | | | | | | | |
| | | | | | | | 3,716 | |
| | | | | | | | | |
| Education – 4.5% |
| Forest Grove Campus Improvement, Pacific University Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 05/01/2022 | | | 2,500 | | | | 2,264 | |
| Oregon Facilities Authority, Linfield College Project, Series A | | | | | | | | |
| 5.000%, 10/01/2025 | | | 1,000 | | | | 911 | |
| Oregon Facilities Authority, University of Portland Projects, Series A | | | | | | | | |
| 4.500%, 04/01/2021 | | | 2,000 | | | | 1,770 | |
| Oregon Facilities Authority, Willamette University Projects, Series A | | | | | | | | |
| 4.300%, 10/01/2021 | | | 1,085 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 5,949 | |
| | | | | | | | | |
| Healthcare – 8.6% |
| Clackamas County Hospital Facilities Authority, Legacy Health System | | | | | | | | |
| 5.250%, 02/15/2011 | | | 2,000 | | | | 2,026 | |
| 5.375%, 02/15/2012 | | | 1,000 | | | | 1,011 | |
| Series A | | | | | | | | |
| 5.000%, 07/15/2021 | | | 1,000 | | | | 988 | |
| Deschutes County Facilities Authority, Cascade Healthcare | | | | | | | | |
| 7.375%, 01/01/2023 | | | 1,500 | | | | 1,664 | |
| Series B (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2016 | | | 250 | | | | 251 | |
| Klamath Falls Community Hospital Authority, Merle West Medical Center Project (AGTY) | | | | | | | | |
| 4.750%, 09/01/2020 | | | 1,425 | | | | 1,342 | |
| Medford Hospital Facilities Authority, Asante Health System, Series A (NATL) | | | | | | | | |
| 5.250%, 08/15/2011 | | | 325 | | | | 326 | |
| 5.375%, 08/15/2012 | | | 320 | | | | 321 | |
| Multnomah County Hospital Facilities Authority, Providence Health System | | | | | | | | |
| 5.250%, 10/01/2022 | | | 1,000 | | | | 1,025 | |
| Salem Hospital Facility Authority, Series A | | | | | | | | |
| 5.750%, 08/15/2023 | | | 1,500 | | | | 1,538 | |
| Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A | | | | | | | | |
| 5.000%, 03/01/2012 | | | 690 | | | | 727 | |
| | | | | | | | | |
| | | | | | | | 11,219 | |
| | | | | | | | | |
| Housing – 1.5% |
| Oregon Housing & Community Services, Series A | | | | | | | | |
| 6.400%, 07/01/2018 | | | 175 | | | | 175 | |
| Series D | | | | | | | | |
| 4.750%, 07/01/2022 | | | 1,250 | | | | 1,265 | |
| Series E (FHA) | | | | | | | | |
| 5.750%, 07/01/2013 | | | 210 | | | | 215 | |
| Oregon Housing & Community Services, Single Family, Series A | | | | | | | | |
| 4.050%, 01/01/2018 | | | 245 | | | | 246 | |
| | | | | | | | | |
| | | | | | | | 1,901 | |
| | | | | | | | | |
| Lease Revenue – 0.8% |
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2,
Mandatory Put 07/01/2012 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.500%, 07/01/2035 | | | 1,000 | | | | 988 | |
| | | | | | | | | |
| Recreational Facility Authority – 0.8% |
| Portland Urban Renewal & Redevelopment, Convention Center, Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/15/2015 | | | 1,000 | | | | 1,033 | |
| | | | | | | | | |
| Tax Revenue – 6.1% |
| Keizer Assessment Area A | | | | | | | | |
| 5.200%, 06/01/2031 | | | 1,000 | | | | 972 | |
| Medford Urban Renewal Agency | | | | | | | | |
| 4.500%, 06/01/2013 | | | 1,010 | | | | 1,061 | |
| Oregon Department of Administrative Services Lottery, Series A (FSA) | | | | | | | | |
| 5.000%, 04/01/2012 | | | 1,050 | | | | 1,078 | |
| Portland Economic Development, Broadway Project, Series A | | | | | | | | |
| 5.125%, 04/01/2016 | | | 880 | | | | 950 | |
| 6.250%, 04/01/2023 | | | 1,355 | | | | 1,487 | |
| Portland Urban Renewal & Redevelopment, South Park Blocks, Series B | | | | | | | | |
| 5.000%, 06/15/2021 | | | 2,030 | | | | 2,184 | |
| Seaside Urban Renewal Agency, Greater Seaside Urban Renewal | | | | | | | | |
| 4.750%, 06/01/2015 | | | 280 | | | | 277 | |
| | | | | | | | | |
| | | | | | | | 8,009 | |
| | | | | | | | | |
| Transportation – 6.5% |
Oregon Department of Transportation, Highway User Tax,
Pre-refunded 11/15/2010 @ 100 | | | | | | | | |
5.125%, 11/15/2014 ◊ | | | 2,260 | | | | 2,399 | |
| Series A | | | | | | | | |
| 5.000%, 11/15/2024 | | | 1,000 | | | | 1,041 | |
Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
5.500%, 11/15/2016 ◊ | | | 1,000 | | | | 1,134 | |
| Port Morrow | | | | | | | | |
| 4.875%, 06/01/2020 | | | 1,000 | | | | 774 | |
| Portland International Airport, | | | | | | | | |
| Series 12-A (FGIC) (NATL) | | | | | | | | |
| 5.250%, 07/01/2011 | | | 1,165 | | | | 1,174 | |
| 5.250%, 07/01/2012 | | | 2,000 | | | | 2,015 | |
| | | | | | | | | |
| | | | | | | | 8,537 | |
| | | | | | | | | |
| Utilities – 11.1% |
| Eugene Electric Utilities (FSA) | | | | | | | | |
| 5.000%, 08/01/2011 | | | 1,305 | | | | 1,309 | |
| Lane County Metropolitan Wastewater Management | | | | | | | | |
| 5.000%, 11/01/2022 | | | 1,500 | | | | 1,560 | |
| (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2021 | | | 820 | | | | 850 | |
| Port of St. Helens Pollution Control, Portland General Electric | | | | | | | | |
| 4.800%, 04/01/2010 | | | 2,450 | | | | 2,430 | |
| 4.800%, 06/01/2010 | | | 400 | | | | 396 | |
| Portland Sewer System, First Lien, Series A | | | | | | | | |
| 4.750%, 06/15/2024 | | | 1,000 | | | | 1,025 | |
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2009 Annual Report
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Portland Sewer System, Second Lien, Series B (NATL) | | | | | | | | |
| 5.000%, 06/15/2023 | | $ | 1,175 | | | $ | 1,239 | |
| Portland Water System, Second Lien, Series A (NATL) | | | | | | | | |
| 4.375%, 10/01/2024 | | | 500 | | | | 500 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGTY) | | | | | | | | |
| 5.000%, 07/01/2025 | | | 1,500 | | | | 1,453 | |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.375%, 07/01/2023 | | | 800 | | | | 783 | |
| Washington County Clean Water Services (FGIC) (NATL) | | | | | | | | |
| 5.125%, 10/01/2014 | | | 1,790 | | | | 1,886 | |
| (NATL) | | | | | | | | |
| 5.000%, 10/01/2014 | | | 1,000 | | | | 1,115 | |
| | | | | | | | | |
| | | | | | | | 14,546 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 55,898 | |
| | | | | | | | | |
| General Obligations – 49.9% |
| Chemeketa Community College District (SBG) | | | | | | | | |
| 5.500%, 06/15/2024 | | | 1,000 | | | | 1,103 | |
| Escrowed to Maturity (FGIC) | | | | | | | | |
| 5.500%, 06/01/2013 § | | | 2,170 | | | | 2,480 | |
| Clackamas & Washington Counties School District #3JT, West Linn-Wilsonville (SBG) | | | | | | | | |
| 4.125%, 06/15/2025 | | | 1,125 | | | | 1,109 | |
| Clackamas Community College District (NATL) | | | | | | | | |
| 5.000%, 05/01/2019 | | | 1,145 | | | | 1,231 | |
| Clackamas County School District #115, | | | | | | | | |
| Series B (NATL) (SBG) | | | | | | | | |
| 4.500%, 06/15/2021 | | | 1,975 | | | | 2,040 | |
| Clackamas County School District #12, North | | | | | | | | |
| Clackamas, Deferred Interest, Series B Convertible CABs (FSA) (SBG) | | | | | | | | |
| 0.000% through 06/14/2011, | | | | | | | | |
thereafter 5.000% 06/15/2022 ◗ | | | 3,135 | | | | 2,999 | |
| Clackamas County School District #46, Oregon Trail, Series A (SBG) | | | | | | | | |
| 5.000%, 06/15/2024 | | | 1,000 | | | | 1,058 | |
| Clackamas County School District #7J, Lake Oswego (FSA) | | | | | | | | |
| 5.250%, 06/01/2025 | | | 200 | | | | 225 | |
| Clackamas County School District #86, Canby (FSA) (SBG) | | | | | | | | |
| 5.000%, 06/15/2018 | | | 1,000 | | | | 1,068 | |
| 5.000%, 06/15/2021 | | | 1,305 | | | | 1,361 | |
Deschutes & Jefferson Counties School District #2-J, Redmond, | | | | | | | | |
| Series A (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.000%, 06/15/2013 | | | 1,250 | | | | 1,385 | |
| Series B, Zero Coupon Bond (FGIC) (NATL) (SBG) | | | | | | | | |
4.447%, 06/15/2021 ¤ | | | 1,000 | | | | 591 | |
| Series B, Zero Coupon Bond (SBG) | | | | | | | | |
4.549%, 06/15/2022 ¤ | | | 3,030 | | | | 1,692 | |
Deschutes County School District #6, Pre-refunded 06/15/2011 @ 100 (FGIC) (SBG) | | | | | | | | |
5.500%, 06/15/2014 ◊ | | | 1,725 | | | | 1,876 | |
| Deschutes County (FSA) | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,755 | | | | 1,917 | |
| Hood River County School District (SBG) | | | | | | | | |
| 5.250%, 06/15/2016 | | | 1,030 | | | | 1,099 | |
| Jackson County School District #549C, Medford (SBG) | | | | | | | | |
| 5.000%, 06/15/2012 | | | 2,000 | | | | 2,192 | |
| Josephine County Unit School District, Three Rivers (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.000%, 12/15/2019 | | | 1,000 | | | | 1,106 | |
| Lane County School District #40, Creswell (SBG) | | | | | | | | |
| 5.000%, 06/15/2011 | | | 1,120 | | | | 1,160 | |
Linn County Community School District #9, Lebanon, Pre-refunded 06/15/2013 @ 100 (FGIC) (SBG) | | | | | | | | |
5.550%, 06/15/2021 ◊ | | | 1,000 | | | | 1,147 | |
| Marion & Clackamas Counties School District #4J, Silver Falls (NATL) (SBG) | | | | | | | | |
| 4.500%, 06/15/2022 | | | 1,305 | | | | 1,340 | |
| McMinnville School District #40 (FSA) | | | | | | | | |
| 5.500%, 06/15/2013 | | | 1,000 | | | | 1,139 | |
| Metro | | | | | | | | |
| 5.250%, 09/01/2014 | | | 1,000 | | | | 1,064 | |
| 5.000%, 06/01/2020 | | | 1,635 | | | | 1,791 | |
Multnomah County School District #7, Reynolds, Pre-refunded 06/15/2011 @ 100 (SBG) | | | | | | | | |
5.625%, 06/15/2015 ◊ | | | 1,000 | | | | 1,089 | |
Multnomah-Clackamas Counties School District #10JT, Gresham-Barlow, Pre-refunded 06/15/2011 @ 100 (FSA) (SBG) | | | | | | | | |
5.500%, 06/15/2013 ◊ | | | 1,780 | | | | 1,936 | |
| (FSA) (SBG) | | | | | | | | |
| 5.250%, 06/15/2017 | | | 1,000 | | | | 1,150 | |
| Multnomah-Clackamas Counties School District #28JT, Zero Coupon Bond (AMBAC) (SBG) | | | | | | | | |
4.473%, 06/01/2016 ¤ | | | 1,000 | | | | 736 | |
| North Lincoln Fire & Rescue District #1 (FSA) | | | | | | | | |
| 4.250%, 02/01/2018 | | | 125 | | | | 131 | |
| Pacific City Joint Water Sanitation Authority | | | | | | | | |
| 4.650%, 07/01/2022 | | | 455 | | | | 433 | |
Portland Community College District, Series A Pre-refunded 06/01/2011 @ 100 | | | | | | | | |
5.375%, 06/01/2015 ◊ | | | 1,375 | | | | 1,490 | |
| Portland Emergency Facilities, Series A | | | | | | | | |
| 5.000%, 06/01/2012 | | | 1,060 | | | | 1,063 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 985 | |
| Puerto Rico Public Buildings Authority, | | | | | | | | |
| Series J, Mandatory Put 07/01/2012 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.000%, 07/01/2036 | | | 1,000 | | | | 993 | |
| Salem-Keizer School District #24J, | | | | | | | | |
| Series B, Deferred Interest, Zero Coupon Bond (SBG) | | | | | | | | |
4.719%, 06/15/2022 ¤ | | | 2,500 | | | | 1,366 | |
| The Dalles | | | | | | | | |
| 4.000%, 06/01/2017 | | | 130 | | | | 134 | |
| 4.000%, 06/01/2018 | | | 140 | | | | 142 | |
| 4.000%, 06/01/2019 | | | 75 | | | | 75 | |
| Tualatin Hills Park & Recreation District (FGIC) (NATL) | | | | | | | | |
| 5.750%, 03/01/2013 | | | 870 | | | | 989 | |
Umatilla County School District #16R, Pendleton (FGIC) (NATL) | | | | | | | | |
| 5.250%, 07/01/2014 | | | 1,540 | | | | 1,690 | |
First American Funds 2009 Annual Report 71
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Wasco County School District #12 (FSA) (SBG) | | | | | | | | |
| 5.500%, 06/15/2014 | | $ | 1,080 | | | $ | 1,243 | |
Washington & Clackamas Counties School District #23J, Tigard (FGIC) (NATL) | | | | | | | | |
| 5.500%, 06/01/2013 | | | 1,000 | | | | 1,128 | |
| Zero Coupon Bond | | | | | | | | |
2.824%, 06/15/2014 ¤ | | | 1,030 | | | | 896 | |
| Washington County | | | | | | | | |
| 5.000%, 06/01/2022 | | | 1,525 | | | | 1,645 | |
Washington County School District #48J, Beaverton, Series A (FSA) | | | | | | | | |
| 5.000%, 06/01/2014 | | | 1,600 | | | | 1,805 | |
| 5.000%, 06/01/2016 | | | 1,500 | | | | 1,662 | |
Washington, Multnomah & Yamhill Counties School District #1J | | | | | | | | |
| 5.000%, 11/01/2014 | | | 1,000 | | | | 1,121 | |
Washington, Multnomah & Yamhill Counties School District #1J, Hillsboro (NATL) | | | | | | | | |
| 5.000%, 06/15/2019 | | | 2,490 | | | | 2,703 | |
Yamhill County School District #29-J, Newberg (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.250%, 06/15/2015 | | | 1,260 | | | | 1,446 | |
| 5.250%, 06/15/2016 | | | 1,835 | | | | 2,111 | |
| Yamhill County School District #40, McMinnville (FSA) (SBG) | | | | | | | | |
| 5.000%, 06/15/2023 | | | 1,005 | | | | 1,057 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 65,392 | |
| | | | | | | | | |
| Certificates of Participation – 3.3% |
| Multnomah County | | | | | | | | |
| 4.750%, 08/01/2011 | | | 1,685 | | | | 1,690 | |
| Oregon Department of Administrative Services, | | | | | | | | |
| Series A | | | | | | | | |
| 4.700%, 05/01/2025 | | | 1,500 | | | | 1,499 | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,060 | | | | 1,120 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 4,309 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $123,308) | | | | | | | 125,599 | |
| | | | | | | | | |
| Short-Term Investment – 3.3% |
First American Tax Free Obligations Fund, Class Z Å | | | | | | | | |
(Cost $4,267) | | | 4,267,054 | | | | 4,267 | |
| | | | | | | | | |
Total Investments 5 – 99.2% | | | | | | | | |
(Cost $127,575) | | | | | | | 129,866 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.8% | | | | | | | 1,056 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 130,922 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) – These bonds initially pay no interest but accrete in value from the date of issuance through the conversion date, at which time the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
Oregon Intermediate Tax Free Fund (concluded)
| | |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $127,861. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 4,590 | |
| Gross unrealized depreciation | | | (2,585 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 2,005 | |
| | | | | |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| COMGTY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHA – | Federal Housing Administration |
| |
| FSA – | Financial Security Assurance |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SBG – | School Bond Guaranty Program |
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2009 Annual Report
| | | | | | | | | |
| Short Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 85.7% |
| Alaska – 1.1% |
| Revenue Bond – 1.1% |
| Alaska Railroad Corporation, Capital Grant Receipts (FGIC) (NATL) | | | | | | | | |
| 5.000%, 08/01/2012 | | $ | 1,825 | | | $ | 1,949 | |
| | | | | | | | | |
| Arizona – 6.7% |
| Revenue Bonds – 2.8% |
| Maricopa County Hospital, Sun Health Corporation, Escrowed to Maturity | | | | | | | | |
| 5.000%, 04/01/2011 § | | | 3,815 | | | | 4,076 | |
| Salt River Project, Arizona Agriculture Improvement & Power District Electric Systems, Series A | | | | | | | | |
| 5.000%, 01/01/2020 | | | 500 | | | | 543 | |
| University Medical Center Corporation, Hospital Revenue | | | | | | | | |
| 5.000%, 07/01/2009 | | | 500 | | | | 500 | |
| | | | | | | | | |
| | | | | | | | 5,119 | |
| | | | | | | | | |
| Certificate of Participation – 3.9% |
| Arizona School Facilities Board Certificates, | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 09/01/2009 | | | 7,000 | | | | 7,052 | |
| | | | | | | | | |
| | | | | | | | 12,171 | |
| | | | | | | | | |
| Arkansas – 1.5% |
| Revenue Bond – 1.5% |
| North Little Rock Health Facilities Board, Baptist Health, Series B | | | | | | | | |
| 5.375%, 12/01/2019 | | | 2,750 | | | | 2,814 | |
| | | | | | | | | |
| California – 0.3% |
| Revenue Bond – 0.3% |
| California Statewide Communities Development Authority, Daughters of Charity Health, Series F | | | | | | | | |
| 5.000%, 07/01/2009 | | | 500 | | | | 500 | |
| | | | | | | | | |
| Colorado – 4.7% |
| Revenue Bonds – 3.5% |
| Colorado Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 4.500%, 12/01/2009 | | | 500 | | | | 499 | |
| Colorado Health Facilities Authority, Evangelical Lutheran | | | | | | | | |
| 5.000%, 06/01/2010 | | | 435 | | | | 443 | |
| Series B, Mandatory Put 12/01/2014 @ 100 | | | | | | | | |
| 5.000%, 06/01/2039 | | | 2,400 | | | | 2,396 | |
| Colorado Health Facilities Authority, Yampa Valley Medical Center Project | | | | | | | | |
| 5.000%, 09/15/2013 | | | 1,000 | | | | 993 | |
Denver City & County Airport, Subseries A2,
Mandatory Put 05/15/2010 @ 100 (AMT) | | | | | | | | |
| 5.250%, 11/15/2032 | | | 2,000 | | | | 2,029 | |
| | | | | | | | | |
| | | | | | | | 6,360 | |
| | | | | | | | | |
| General Obligation – 1.2% |
| Denver City & County School District #1, | | | | | | | | |
| Series A (STAID) | | | | | | | | |
| 5.250%, 12/01/2023 | | | 2,000 | | | | 2,166 | |
| | | | | | | | | |
| | | | | | | | 8,526 | |
| | | | | | | | | |
| Florida – 12.6% |
| Revenue Bonds – 12.6% |
| Florida Department of Environmental Protection Preservation, Florida Forever, Series B (NATL) | | | | | | | | |
| 5.000%, 07/01/2011 | | | 10,000 | | | | 10,540 | |
| Florida Hurricane Catastrophe Fund Financial Corporation, Series A | | | | | | | | |
| 5.000%, 07/01/2010 | | | 4,000 | | | | 4,090 | |
| 5.250%, 07/01/2012 | | | 4,000 | | | | 4,173 | |
Miami-Dade County Health Facilities Authority
Mandatory Put 08/01/2011 @ 100 (NATL) | | | | | | | | |
| 4.125%, 08/01/2046 | | | 1,000 | | | | 1,005 | |
| South Miami Health Facilities Authority, Baptist Health South Florida Group | | | | | | | | |
| 5.000%, 08/15/2012 | | | 2,000 | | | | 2,104 | |
| Tallahassee Energy Systems (NATL) | | | | | | | | |
| 5.000%, 10/01/2012 | | | 1,000 | | | | 1,079 | |
| | | | | | | | | |
| | | | | | | | 22,991 | |
| | | | | | | | | |
| Georgia – 6.1% |
| Revenue Bond – 3.0% |
| Gwinnett County Water & Sewer Authority | | | | | | | | |
| 5.000%, 08/01/2022 | | | 5,000 | | | | 5,516 | |
| | | | | | | | | |
| General Obligation – 3.1% |
| Georgia, Series B | | | | | | | | |
| 5.000%, 07/01/2021 | | | 5,000 | | | | 5,560 | |
| | | | | | | | | |
| | | | | | | | 11,076 | |
| | | | | | | | | |
| Illinois – 2.4% |
| Revenue Bonds – 2.4% |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | | | | | | | |
| 5.100%, 05/15/2011 | | | 1,000 | | | | 966 | |
| Illinois Finance Authority, Landing at Plymouth Place Project, Series A | | | | | | | | |
| 5.000%, 05/15/2011 | | | 500 | | | | 494 | |
| Illinois Finance Authority, Rush University Medical Center, Series A | | | | | | | | |
| 5.000%, 11/01/2013 | | | 1,630 | | | | 1,696 | |
| 5.000%, 11/01/2014 | | | 1,105 | | | | 1,144 | |
| | | | | | | | | |
| | | | | | | | 4,300 | |
| | | | | | | | | |
| Indiana – 0.5% |
| Revenue Bond – 0.5% |
| Anderson Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2012 | | | 990 | | | | 971 | |
| | | | | | | | | |
| Iowa – 5.2% |
| Revenue Bonds – 5.2% |
| Iowa Finance Authority Health Facilities, Care Initiatives Project, Series A | | | | | | | | |
| 5.000%, 07/01/2009 | | | 1,000 | | | | 1,000 | |
| Iowa Higher Education, Private College Facility, Grinnell | | | | | | | | |
| 2.100%, 12/01/2011 | | | 4,000 | | | | 4,043 | |
| Muscatine Electric, Series A (AMBAC) | | | | | | | | |
| 5.500%, 01/01/2010 | | | 4,385 | | | | 4,480 | |
| | | | | | | | | |
| | | | | | | | 9,523 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 73
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Kansas – 1.4% |
| Revenue Bonds – 1.4% |
| Olathe Health Facilities, Olathe Medical Center | | | | | | | | |
| 4.000%, 09/01/2012 | | $ | 1,150 | | | $ | 1,167 | |
| Series A, Mandatory Put 03/01/2013 @ 100 | | | | | | | | |
| 4.125%, 09/01/2037 | | | 1,350 | | | | 1,377 | |
| | | | | | | | | |
| | | | | | | | 2,544 | |
| | | | | | | | | |
| Louisiana – 1.1% |
| Revenue Bond – 1.1% |
| Tangipahoa Parish Hospital Service District #1, North Oaks Medical Center Project, Series A | | | | | | | | |
| 5.000%, 02/01/2011 | | | 2,035 | | | | 2,007 | |
| | | | | | | | | |
| Massachusetts – 1.1% |
| Revenue Bond – 1.1% |
Massachusetts Health & Educational Facilities Authority, Northeastern University, Series T-1,
Mandatory Put 02/16/2012 @ 100 | | | | | | | | |
| 4.125%, 10/01/2037 | | | 2,000 | | | | 2,011 | |
| | | | | | | | | |
| Michigan – 3.5% |
| Revenue Bond – 2.8% |
| Michigan Hospital Finance Authority, Ascension, | | | | | | | | |
| Series B3, Mandatory Put 08/15/2010 @ 100 | | | | | | | | |
| 2.750%, 11/15/2033 | | | 5,000 | | | | 5,021 | |
| | | | | | | | | |
| General Obligation – 0.7% |
| Warren School District, School Improvement (FGIC) (NATL) | | | | | | | | |
| 5.000%, 05/01/2012 | | | 1,200 | | | | 1,297 | |
| | | | | | | | | |
| | | | | | | | 6,318 | |
| | | | | | | | | |
| Minnesota – 2.8% |
| Revenue Bonds – 1.1% |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2016 | | | 910 | | | | 882 | |
| 5.500%, 05/01/2017 | | | 1,065 | | | | 1,020 | |
| St. Paul Port Authority Lease Revenue, HealthEast Midway Campus, Series 3-A | | | | | | | | |
| 5.000%, 05/01/2010 | | | 170 | | | | 168 | |
| | | | | | | | | |
| | | | | | | | 2,070 | |
| | | | | | | | | |
| General Obligation – 1.7% |
| Bemidji Temporary Sales Tax | | | | | | | | |
| 4.500%, 02/01/2012 | | | 3,000 | | | | 3,079 | |
| | | | | | | | | |
| | | | | | | | 5,149 | |
| | | | | | | | | |
| Missouri – 2.8% |
| Revenue Bonds – 1.8% |
Bi-state Development Agency, Missouri-Illinois Metropolitan District, Metrolink, Series A,
Mandatory Put 10/01/2009 @ 100
(LOC: JP Morgan Chase Bank) | | | | | | | | |
| 3.950%, 10/01/2035 | | | 2,500 | | | | 2,518 | |
Osage Beach Tax Increment, Prewitt’s
Point Project | | | | | | | | |
| 4.625%, 05/01/2011 | | | 895 | | | | 859 | |
| | | | | | | | | |
| | | | | | | | 3,377 | |
| | | | | | | | | |
| Certificate of Participation – 1.0% |
| Independence School District, Series C (FSA) | | | | | | | | |
| 3.250%, 03/01/2014 | | | 1,750 | | | | 1,753 | |
| | | | | | | | | |
| | | | | | | | 5,130 | |
| | | | | | | | | |
| Nebraska – 1.4% |
| Revenue Bond – 1.4% |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 3,000 | | | | 2,554 | |
| | | | | | | | | |
| New Hampshire – 2.5% |
| Revenue Bonds – 2.5% |
| New Hampshire Health & Education Facilities Authority, Concord Hospital, Series D2 | | | | | | | | |
| 5.000%, 05/01/2010 | | | 1,915 | | | | 1,930 | |
| 5.000%, 05/01/2011 | | | 2,585 | | | | 2,606 | |
| | | | | | | | | |
| | | | | | | | 4,536 | |
| | | | | | | | | |
| New York – 2.0% |
| General Obligation – 2.0% |
| New York, Series A | | | | | | | | |
| 5.000%, 08/01/2011 | | | 3,435 | | | | 3,658 | |
| | | | | | | | | |
| North Carolina – 3.0% |
| General Obligation – 3.0% |
| North Carolina Public Improvement, Series A | | | | | | | | |
| 5.000%, 03/01/2020 | | | 5,000 | | | | 5,545 | |
| | | | | | | | | |
| Oregon – 4.7% |
| Revenue Bond – 2.9% |
| Oregon Department of Administrative Services, Lottery Revenue, Series A | | | | | | | | |
| 5.000%, 04/01/2022 | | | 5,000 | | | | 5,369 | |
| | | | | | | | | |
| General Obligation – 1.8% |
| Salem | | | | | | | | |
| 5.000%, 06/01/2021 | | | 3,000 | | | | 3,213 | |
| | | | | | | | | |
| | | | | | | | 8,582 | |
| | | | | | | | | |
| South Carolina – 3.2% |
| Revenue Bonds – 1.3% |
| Georgetown County Pollution Control Facilities, International Paper Company Project, Series A | | | | | | | | |
| 5.125%, 02/01/2012 | | | 1,500 | | | | 1,471 | |
| Richland County Environmental Improvement, Series A | | | | | | | | |
| 4.600%, 09/01/2012 | | | 1,000 | | | | 974 | |
| | | | | | | | | |
| | | | | | | | 2,445 | |
| | | | | | | | | |
| Certificate of Participation – 1.9% |
| Scago Public Facilities Corporation, Lancaster County Project (AGTY) | | | | | | | | |
| 3.500%, 12/01/2011 | | | 3,315 | | | | 3,422 | |
| | | | | | | | | |
| | | | | | | | 5,867 | |
| | | | | | | | | |
| Texas – 5.4% |
| Revenue Bonds – 2.9% |
| Lower Colorado River Authority (AMBAC) | | | | | | | | |
| 5.000%, 05/15/2012 | | | 2,685 | | | | 2,874 | |
| Tyler Health Facilities Development Corporation, East Texas Medical Center, Series A | | | | | | | | |
| 5.000%, 11/01/2009 | | | 1,000 | | | | 1,000 | |
| 5.000%, 11/01/2010 | | | 1,500 | | | | 1,497 | |
| | | | | | | | | |
| | | | | | | | 5,371 | |
| | | | | | | | | |
| General Obligation – 2.5% |
| Texas Public Finance Authority | | | | | | | | |
| 5.000%, 10/01/2010 | | | 4,275 | | | | 4,498 | |
| | | | | | | | | |
| | | | | | | | 9,869 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2009 Annual Report
| | | | | | | | | |
| Short Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Virginia – 8.6% |
| Revenue Bonds – 8.6% |
Amelia County Industrial Development Authority, Solid Waste Disposal, Waste Management Project
Mandatory Put 04/01/2010 @ 100 (AMT) | | | | | | | | |
| 4.800%, 04/01/2027 | | $ | 2,000 | | | $ | 2,009 | |
| Virginia Housing Development Authority, Commonwealth Mortgage, Subseries D1 (AMT) | | | | | | | | |
| 4.300%, 01/01/2014 | | | 7,000 | | | | 7,066 | |
| Virginia Public Building Authority, Series A | | | | | | | | |
| 5.000%, 08/01/2014 | | | 6,000 | | | | 6,647 | |
| | | | | | | | | |
| | | | | | | | 15,722 | |
| | | | | | | | | |
| Wisconsin – 1.1% |
| Revenue Bond – 1.1% |
| Wisconsin Health & Educational Facilities Authority, Froedtert & Community Health, | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 04/01/2010 | | | 1,940 | | | | 1,974 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $154,228) | | | | | | | 156,287 | |
| | | | | | | | | |
Short-Term Investments – 12.7% |
| Money Market Fund – 5.1% |
First American Tax Free Obligations Fund, Class Z Å | | | 9,286,552 | | | | 9,287 | |
| | | | | | | | | |
| Variable Rate Demand Notes v – 7.6% |
| Cohasset Power & Light Company Project, | | | | | | | | |
| Series A (LOC: LaSalle Bank) | | | | | | | | |
| 0.400%, 06/01/2020 | | $ | 5,830 | | | | 5,830 | |
| Milwaukee Redevelopment Authority, Yankee Hill Apartments (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.220%, 09/01/2025 | | | 1,100 | | | | 1,100 | |
| South Fulton Municipal Regional Water & Sewer Authority (LOC: Bank of America) | | | | | | | | |
| 0.320%, 01/01/2033 | | | 7,000 | | | | 7,000 | |
| | | | | | | | | |
| | | | | | | | 13,930 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $23,217) | | | | | | | 23,217 | |
| | | | | | | | | |
Total Investments 5 – 98.4% | | | | | | | | |
(Cost $177,445) | | | | | | | 179,504 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.6% | | | | | | | 2,822 | |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 182,326 | |
| | | | | | | | | |
| | |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| v | | Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and a right of demand to receive payment of the principal plus accrued interest at specified dates. The coupon rate shown represents the rate as of June 30, 2009. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $177,864. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 2,856 | |
| Gross unrealized depreciation | | | (1,216 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 1,640 | |
| | | | | |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
Short Tax Free Fund (concluded)
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate market value of securities subject to the AMT was $11,104, which represents 6.1% of total net assets. |
| |
| FGIC – | Financial Guarantee Insurance Corporation |
| |
| FSA – | Financial Security Assurance |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| STAID – | State Aid Withholding |
First American Funds 2009 Annual Report 75
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Municipal Bonds – 97.6% |
| Alabama – 0.4% |
| Revenue Bonds – 0.4% |
| Camden Industrial Development Board, Weyerhaeuser Company, | | | | | | | | |
Series A, Pre-refunded 12/01/2013 @ 100 | | | | | | | | |
6.125%, 12/01/2024 ◊ | | $ | 1,000 | | | $ | 1,163 | |
Series B, Pre-refunded 12/01/2013 @ 100 (AMT) | | | | | | | | |
6.375%, 12/01/2024 ◊ | | | 350 | | | | 403 | |
| | | | | | | | | |
| | | | | | | | 1,566 | |
| | | | | | | | | |
| Alaska – 1.3% |
| Revenue Bonds – 1.3% |
| Alaska Energy Authority, Bradley Lake, Third Series (FSA) | | | | | | | | |
| 6.000%, 07/01/2010 | | | 1,000 | | | | 1,038 | |
| 6.000%, 07/01/2011 | | | 4,040 | | | | 4,308 | |
| | | | | | | | | |
| | | | | | | | 5,346 | |
| | | | | | | | | |
| Arizona – 7.0% |
| Revenue Bonds – 5.5% |
| Arizona Health Facilities Authority, The Terraces Project, Series A | | | | | | | | |
| Pre-refunded 11/15/2013 @ 101 | | | | | | | | |
7.500%, 11/15/2023 ◊ | | | 3,000 | | | | 3,569 | |
| Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A | | | | | | | | |
| 5.250%, 07/01/2032 | | | 3,500 | | | | 3,179 | |
| Mohave County Industrial Development Authority, Correctional Facilities Contract, Mohave Prison Expansion Project | | | | | | | | |
| 8.000%, 05/01/2025 | | | 4,500 | | | | 4,957 | |
| Pima County Industrial Development Authority, American Charter Schools Foundation, | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 07/01/2026 | | | 3,555 | | | | 2,728 | |
| Scottsdale Municipal Property Corporation, Excise Tax, Water and Sewer Development Project, Series A | | | | | | | | |
| 5.000%, 07/01/2021 | | | 4,300 | | | | 4,683 | |
| Scottsdale Industrial Development Authority, Scottsdale Healthcare, Series A | | | | | | | | |
| 5.000%, 09/01/2022 | | | 1,000 | | | | 954 | |
| 5.250%, 09/01/2030 | | | 2,000 | | | | 1,817 | |
| Tempe Industrial Development Authority, Friendship Village Project, Series A | | | | | | | | |
| 5.375%, 12/01/2013 | | | 1,021 | | | | 959 | |
| | | | | | | | | |
| | | | | | | | 22,846 | |
| | | | | | | | | |
| General Obligation – 1.5% |
| Gila County Unified School District #10, Payson School Improvement Project of 2006, Series A (AMBAC) | | | | | | | | |
| 1.000% through 07/01/2009, thereafter 5.250%, 07/01/2022 | | | 6,630 | | | | 6,408 | |
| | | | | | | | | |
| | | | | | | | 29,254 | |
| | | | | | | | | |
| Arkansas – 0.2% |
| Revenue Bond – 0.2% |
| Washington County Arkansas Hospital, Regional Medical Center, Series B | | | | | | | | |
| 5.000%, 02/01/2030 | | | 1,000 | | | | 814 | |
| | | | | | | | | |
| California – 5.1% |
| Revenue Bonds – 4.7% |
| California Department of Water Reserves, Central Water Revenue | | | | | | | | |
| 5.000%, 12/01/2021 | | | 2,000 | | | | 2,154 | |
| California Pollution Control Financing Authority, Solid Waste Disposal, Waste Management Incorporated Project, | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 2,500 | | | | 2,143 | |
| Series C (AMT) | | | | | | | | |
| 5.125%, 11/01/2023 | | | 5,000 | | | | 4,520 | |
| California Statewide Communities Development Authority, St. Joseph, | | | | | | | | |
| Series B (FGIC) | | | | | | | | |
| 5.450%, 07/01/2026 | | | 1,050 | | | | 1,044 | |
| Series C (FGIC) | | | | | | | | |
| 5.450%, 07/01/2026 | | | 1,050 | | | | 1,044 | |
| Chula Vista Industrial Development, San Diego Gas & Electric, Series A (AMT) | | | | | | | | |
| 4.900%, 03/01/2023 | | | 2,500 | | | | 2,255 | |
| Loma Linda University Medical Center, Hospital Revenue, Series A | | | | | | | | |
| 8.250%, 12/01/2038 | | | 1,500 | | | | 1,573 | |
| Southern California Public Power Authority, Transmission Project Revenue, Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 4,000 | | | | 4,159 | |
| Ventura County Area Housing Authority, Mira Vista Senior Apartments, Series A (AMBAC) | | | | | | | | |
| (AMT) | | | | | | | | |
| 5.000%, 12/01/2022 | | | 1,000 | | | | 922 | |
| | | | | | | | | |
| | | | | | | | 19,814 | |
| | | | | | | | | |
| General Obligation – 0.4% |
Poway Unified School District, Election of 2008, District 2007-1A, Zero Coupon Bond | | | | | | | | |
6.168%, 08/01/2023 ¤ | | | 3,775 | | | | 1,605 | |
| | | | | | | | | |
| | | | | | | | 21,419 | |
| | | | | | | | | |
| Colorado – 3.5% |
| Revenue Bonds – 3.3% |
Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
7.250%, 12/01/2021 ◊ | | | 1,500 | | | | 1,717 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities, Series B | | | | | | | | |
| 6.125%, 12/01/2033 | | | 1,150 | | | | 966 | |
| Colorado Health Facilities Authority, Evangelical Lutheran | | | | | | | | |
| 5.900%, 10/01/2027 | | | 2,500 | | | | 2,445 | |
| 5.000%, 06/01/2029 | | | 2,000 | | | | 1,738 | |
Colorado Health Facilities Authority, Parkview Medical Center Project Pre-refunded 09/01/2011 @ 100 | | | | | | | | |
6.500%, 09/01/2020 ◊ | | | 1,000 | | | | 1,108 | |
| Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | | | | | | | | |
| 5.700%, 07/01/2018 | | | 1,590 | | | | 1,533 | |
| La Junta Hospital, Arkansas Valley Medical Center Project | | | | | | | | |
| 6.000%, 04/01/2019 | | | 1,000 | | | | 977 | |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2009 Annual Report
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Northwest Parkway Public Highway Authority, Zero Coupon Bond, Pre-refunded 06/15/2011 @ 33.455 (AMBAC) | | | | | | | | |
1.930%, 06/15/2029 ◊ ¤ | | $ | 10,000 | | | $ | 3,222 | |
| | | | | | | | | |
| | | | | | | | 13,706 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Antelope Water Systems General Improvement District | | | | | | | | |
| 5.125%, 12/01/2035 | | | 1,000 | | | | 834 | |
| | | | | | | | | |
| | | | | | | | 14,540 | |
| | | | | | | | | |
| Delaware – 1.3% |
| Revenue Bond – 1.3% |
| Delaware Transportation Authority Revenue | | | | | | | | |
| 5.000%, 07/01/2019 | | | 5,000 | | | | 5,615 | |
| | | | | | | | | |
| Florida – 4.6% |
| Revenue Bonds – 4.0% |
Halifax Hospital Medical Center, Series B1
(FSA) | | | | | | | | |
| 5.500%, 06/01/2038 | | | 6,000 | | | | 5,684 | |
| Palm Beach County Health Facilities Authority Retirement Community, Acts Retirement Life, | | | | | | | | |
| Series A | | | | | | | | |
| 4.500%, 11/15/2036 | | | 10,000 | | | | 6,862 | |
| Palm Beach County Health Facilities Authority, Waterford Project | | | | | | | | |
| 5.875%, 11/15/2037 | | | 5,700 | | | | 4,375 | |
| | | | | | | | | |
| | | | | | | | 16,921 | |
| | | | | | | | | |
| Certificate of Participation – 0.6% |
| Palm Beach County School Board (FGIC) (NATL) | | | | | | | | |
| 5.000%, 08/01/2018 | | | 2,415 | | | | 2,508 | |
| | | | | | | | | |
| | | | | | | | 19,429 | |
| | | | | | | | | |
| Georgia – 1.4% |
| Revenue Bonds – 1.4% |
Fulton County Development Authority, Maxon Atlantic Station, Series A,
Mandatory Put 03/01/2015 @ 100 (AMT) | | | | | | | | |
| 5.125%, 03/01/2026 | | | 2,300 | | | | 2,084 | |
| Fulton County Residential Care Facilities, Canterbury Court Project, Series A | | | | | | | | |
| 6.125%, 02/15/2026 | | | 1,500 | | | | 1,179 | |
| 6.125%, 02/15/2034 | | | 2,500 | | | | 1,843 | |
| Georgia Municipal Electric Authority Power, | | | | | | | | |
| Series BB (NATL) | | | | | | | | |
| 5.250%, 01/01/2025 | | | 1,000 | | | | 1,007 | |
| | | | | | | | | |
| | | | | | | | 6,113 | |
| | | | | | | | | |
| Idaho – 0.2% |
| Revenue Bond – 0.2% |
| Idaho Health Facilities Authority Revenue, Trinity Health Group, Series B | | | | | | | | |
| 6.250%, 12/01/2033 | | | 750 | | | | 785 | |
| | | | | | | | | |
| Illinois – 5.7% |
| Revenue Bonds – 4.7% |
| Bolingbrook, Residential Mortgages Escrowed to Maturity (FGIC) (VEREX) | | | | | | | | |
| 7.500%, 08/01/2010 § | | | 625 | | | | 652 | |
| Illinois Finance Authority, Landing at Plymouth Place Project, Series A | | | | | | | | |
| 6.000%, 05/15/2037 | | | 2,300 | | | | 1,620 | |
| Illinois Finance Authority, Luther Oaks Project, | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 08/15/2039 | | | 2,000 | | | | 1,345 | |
| Illinois Finance Authority, Roosevelt University | | | | | | | | |
| 5.500%, 04/01/2037 | | | 2,800 | | | | 2,394 | |
| Illinois Finance Authority, Rush University Medical Center, Series A | | | | | | | | |
| 7.250%, 11/01/2030 | | | 3,680 | | | | 4,038 | |
| Illinois Finance Authority, Silver Cross Hospital | | | | | | | | |
| 5.500%, 08/15/2030 | | | 3,230 | | | | 2,614 | |
| Illinois Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.875%, 12/01/2031 | | | 4,500 | | | | 3,499 | |
| Series A (RAAI) | | | | | | | | |
| 5.500%, 12/01/2022 | | | 4,000 | | | | 3,378 | |
| Northern Illinois University, Auxiliary Facilities Systems (FGIC) (NATL) | | | | | | | | |
| 5.700%, 04/01/2016 | | | 120 | | | | 120 | |
| | | | | | | | | |
| | | | | | | | 19,660 | |
| | | | | | | | | |
| General Obligations – 1.0% |
| Chicago Illinois Board of Education, Series C | | | | | | | | |
| 5.000%, 12/01/2020 | | | 2,000 | | | | 2,043 | |
| Grundy & Will Counties Community School District #1 | | | | | | | | |
| 5.875%, 08/01/2028 | | | 2,250 | | | | 2,391 | |
| | | | | | | | | |
| | | | | | | | 4,434 | |
| | | | | | | | | |
| | | | | | | | 24,094 | |
| | | | | | | | | |
| Indiana – 2.4% |
| Revenue Bonds – 2.4% |
| Indiana Health & Educational Facilities Financing Authority, Community Foundation | | | | | | | | |
| 5.500%, 03/01/2037 | | | 2,830 | | | | 2,395 | |
| Indiana Municipal Power Agency, Power Supply, | | | | | | | | |
| Series B (NATL) | | | | | | | | |
| 6.000%, 01/01/2012 | | | 1,000 | | | | 1,085 | |
| Indiana Transportation Finance Authority, | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 | | | 2,000 | | | | 2,226 | |
| Indianapolis Airport Authority, Special Facilities, Federal Express Corporation Project (GTY: Federal Express) (AMT) | | | | | | | | |
| 5.100%, 01/15/2017 | | | 3,000 | | | | 2,709 | |
| Portage Economic Development, Ameriplex Project | | | | | | | | |
| 5.000%, 07/15/2023 | | | 1,000 | | | | 870 | |
| 5.000%, 01/15/2027 | | | 775 | | | | 647 | |
| | | | | | | | | |
| | | | | | | | 9,932 | |
| | | | | | | | | |
| Iowa – 0.1% |
| Revenue Bond – 0.1% |
| Muscatine Electric, Escrowed to Maturity | | | | | | | | |
| 6.700%, 01/01/2013 § | | | 530 | | | | 580 | |
| | | | | | | | | |
| Kansas – 1.5% |
| Revenue Bonds – 1.5% |
| Kansas Department of Transportation, Highway Revenue, Series B2 | | | | | | | | |
| 5.000%, 09/01/2022 | | | 500 | | | | 545 | |
| Kansas Development Finance Authority, Hospital Revenue, Adventist Health | | | | | | | | |
5.500%, 11/15/2029 « | | | 4,500 | | | | 4,462 | |
| Olathe Senior Living Facility, Catholic Care Campus, Series A | | | | | | | | |
| 6.000%, 11/15/2038 | | | 2,000 | | | | 1,416 | |
| | | | | | | | | |
| | | | | | | | 6,423 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 77
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Louisiana – 0.8% |
| Revenue Bonds – 0.8% |
| Jefferson Parish, Home Mortgage Authority Escrowed to Maturity (FGIC) (FHA) (VA) | | | | | | | | |
| 7.100%, 08/01/2011 § | | $ | 1,000 | | | $ | 1,114 | |
| Rapides Financial Authority, Cleco Power LLC Project (AMBAC) (AMT) | | | | | | | | |
| 4.700%, 11/01/2036 | | | 3,000 | | | | 2,109 | |
| | | | | | | | | |
| | | | | | | | 3,223 | |
| | | | | | | | | |
| Maryland – 1.4% |
| General Obligation – 1.4% |
| Prince Georges County Public Improvement | | | | | | | | |
| 5.000%, 07/15/2017 | | | 5,000 | | | | 5,712 | |
| | | | | | | | | |
| Massachusetts – 0.7% |
| Revenue Bonds – 0.7% |
| Massachusetts Development Finance Agency Health Care Facilities, Adventcare, Series A | | | | | | | | |
| 6.750%, 10/15/2037 | | | 2,850 | | | | 2,130 | |
| Massachusetts Health & Educational Facilities Authority, UMass Memorial Issue, Series D | | | | | | | | |
| 5.000%, 07/01/2033 | | | 1,000 | | | | 756 | |
| | | | | | | | | |
| | | | | | | | 2,886 | |
| | | | | | | | | |
| Michigan – 2.8% |
| Revenue Bonds – 2.8% |
| Kalamazoo Hospital Financial Authority, Bronson Hospital (FSA) | | | | | | | | |
| 5.000%, 05/15/2026 | | | 7,665 | | | | 7,320 | |
| Michigan Hospital Financial Authority, McLaren Health Care, Series A | | | | | | | | |
| 5.250%, 05/15/2018 | | | 1,000 | | | | 1,003 | |
| Royal Oak Hospital Finance Authority, William Beaumont Hospital | | | | | | | | |
| 8.000%, 09/01/2029 | | | 3,000 | | | | 3,362 | |
| | | | | | | | | |
| | | | | | | | 11,685 | |
| | | | | | | | | |
| Minnesota – 7.4% |
| Revenue Bonds – 7.4% |
| Chippewa County, Montevideo Hospital Project | | | | | | | | |
| 5.500%, 03/01/2037 | | | 4,000 | | | | 3,072 | |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects, | | | | | | | | |
| Series A | | | | | | | | |
| 5.700%, 07/01/2042 | | | 2,790 | | | | 1,925 | |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.200%, 06/01/2025 | | | 1,000 | | | | 750 | |
| 5.000%, 06/01/2029 | | | 1,500 | | | | 1,040 | |
| Minneapolis Healthcare System, Fairview Health Services, Series A | | | | | | | | |
| 6.625%, 11/15/2028 | | | 3,000 | | | | 3,157 | |
| Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A | | | | | | | | |
| 6.375%, 11/15/2029 | | | 95 | | | | 96 | |
| Monticello, Big Lake Community Hospital, | | | | | | | | |
| Series C | | | | | | | | |
| 6.200%, 12/01/2022 | | | 2,995 | | | | 2,465 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 5.250%, 09/01/2034 | | | 1,000 | | | | 843 | |
| St. Paul Housing & Redevelopment Authority, Allina Health Systems, Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 4,500 | | | | 4,530 | |
| St. Paul Housing & Redevelopment Authority, Health Care Facilities, HealthPartners Obligated Group Project | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,500 | | | | 1,315 | |
| 5.250%, 05/15/2036 | | | 3,900 | | | | 3,134 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 6.000%, 11/15/2030 | | | 2,000 | | | | 1,561 | |
| 6.000%, 11/15/2035 | | | 1,000 | | | | 756 | |
| St. Paul Housing & Redevelopment Hospital Authority, HealthEast Project | | | | | | | | |
| 5.250%, 11/15/2014 | | | 990 | | | | 920 | |
| 6.000%, 11/15/2025 | | | 2,000 | | | | 1,683 | |
| St. Paul Sales Tax, Series B (SGI) | | | | | | | | |
| 5.650%, 11/01/2017 | | | 2,290 | | | | 2,324 | |
| Stillwater Health Care, Health System Obligation Group | | | | | | | | |
| 5.000%, 06/01/2035 | | | 2,000 | | | | 1,683 | |
| | | | | | | | | |
| | | | | | | | 31,254 | |
| | | | | | | | | |
| Mississippi – 1.7% |
| Revenue Bond – 1.7% |
| Mississippi Development Bank Special Obligation, Jackson Public School District (FSA) | | | | | | | | |
| 5.500%, 04/01/2020 | | | 6,350 | | | | 7,022 | |
| | | | | | | | | |
| Missouri – 3.5% |
| Revenue Bonds – 3.5% |
| Bi-State Development Agency, Missouri-Illinois Metropolitan District, St. Clair County Metrolink Project (FSA) | | | | | | | | |
| 5.250%, 07/01/2027 | | | 3,185 | | | | 3,138 | |
| Boone County Hospital | | | | | | | | |
| 5.625%, 08/01/2038 | | | 5,500 | | | | 5,014 | |
| St. Louis Industrial Development Authority, Sewer and Solid Waste Disposal Facilities (AMT) | | | | | | | | |
| 4.875%, 03/01/2032 | | | 8,000 | | | | 5,900 | |
| Sugar Creek, Lafarge North America, Series A | | | | | | | | |
| (AMT) | | | | | | | | |
| 5.650%, 06/01/2037 | | | 1,000 | | | | 737 | |
| | | | | | | | | |
| | | | | | | | 14,789 | |
| | | | | | | | | |
| Montana – 0.9% |
| Revenue Bonds – 0.9% |
| Forsyth Pollution Control, Northwestern Corporation (AMBAC) | | | | | | | | |
| 4.650%, 08/01/2023 | | | 2,500 | | | | 2,090 | |
| Montana Facilities Financial Authority, Senior Living St. John’s Lutheran, Series A | | | | | | | | |
| 6.125%, 05/15/2036 | | | 2,500 | | | | 1,737 | |
| | | | | | | | | |
| | | | | | | | 3,827 | |
| | | | | | | | | |
| Nebraska – 4.7% |
| Revenue Bonds – 4.7% |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 5,000 | | | | 4,256 | |
| Nebraska Public Power District, Series B | | | | | | | | |
| 5.000%, 01/01/2020 | | | 2,750 | | | | 2,880 | |
| Omaha Public Power District, Electric Revenue, | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 02/01/2039 | | | 1,000 | | | | 1,033 | |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2009 Annual Report
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Washington County Wastewater Facilities, Cargill Project (AMT) | | | | | | | | |
| 5.900%, 11/01/2027 | | $ | 1,700 | | | $ | 1,658 | |
| 4.850%, 04/01/2035 | | | 12,500 | | | | 10,013 | |
| | | | | | | | | |
| | | | | | | | 19,840 | |
| | | | | | | | | |
| Nevada – 1.9% |
| Revenue Bonds – 1.9% |
| Carson City Hospital Revenue, Carson-Tahoe Hospital | | | | | | | | |
| 5.750%, 09/01/2031 | | | 2,740 | | | | 2,264 | |
| Pre-refunded 09/01/2012 @ 101 | | | | | | | | |
5.750%, 09/01/2031 ◊ | | | 2,260 | | | | 2,560 | |
| Clark County Industrial Development, Southwest Gas Corporation Project, | | | | | | | | |
| Series A (AMBAC) (AMT) | | | | | | | | |
| 5.250%, 07/01/2034 | | | 4,000 | | | | 3,117 | |
| Series A (AMT) (FGIC) | | | | | | | | |
| 4.750%, 09/01/2036 | | | 80 | | | | 57 | |
| | | | | | | | | |
| | | | | | | | 7,998 | |
| | | | | | | | | |
| New Hampshire – 0.4% |
| Revenue Bonds – 0.4% |
| New Hampshire Health & Educational Facilities Authority, Covenant Health | | | | | | | | |
| 5.375%, 07/01/2024 | | | 1,250 | | | | 1,155 | |
| New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital | | | | | | | | |
| 5.875%, 07/01/2034 | | | 800 | | | | 673 | |
| | | | | | | | | |
| | | | | | | | 1,828 | |
| | | | | | | | | |
| North Carolina – 1.6% |
| Revenue Bonds – 1.6% |
| North Carolina Medical Care Community Health Care Facilities, 1st Mortgage Presbyterian, Series B | | | | | | | | |
| 5.200%, 10/01/2021 | | | 1,500 | | | | 1,301 | |
| North Carolina Medical Care Community Health Care Facilities, Pennybyrn at Maryfield, Series A | | | | | | | | |
| 6.000%, 10/01/2023 | | | 2,800 | | | | 2,267 | |
| North Carolina Medical Care Community Retirement Facilities, Southminster Project, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 10/01/2037 | | | 4,150 | | | | 2,935 | |
| | | | | | | | | |
| | | | | | | | 6,503 | |
| | | | | | | | | |
| North Dakota – 0.7% |
| Revenue Bond – 0.5% |
| North Dakota State Board of Higher Education, Bismarck State College | | | | | | | | |
| 5.350%, 05/01/2030 | | | 2,500 | | | | 1,973 | |
| | | | | | | | | |
| General Obligations – 0.2% |
| West Fargo, Series A (AGTY) | | | | | | | | |
| 4.000%, 05/01/2017 | | | 550 | | | | 561 | |
| 4.000%, 05/01/2018 | | | 540 | | | | 546 | |
| | | | | | | | | |
| | | | | | | | 1,107 | |
| | | | | | | | | |
| | | | | | | | 3,080 | |
| | | | | | | | | |
| Ohio – 2.1% |
| Revenue Bonds – 2.1% |
Cincinnati Water System Pre-refunded 06/01/2011 @ 100 | | | | | | | | |
5.000%, 12/01/2020 ◊ | | | 125 | | | | 134 | |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.625%, 08/15/2029 | | | 3,250 | | | | 2,863 | |
| Miami County Hospital Facilities, Refunding & Improvement, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,000 | | | | 823 | |
| Ohio Higher Educational Facility, Baldwin-Wallace College Project | | | | | | | | |
| 5.125%, 12/01/2017 | | | 1,490 | | | | 1,513 | |
| 5.250%, 12/01/2019 | | | 1,540 | | | | 1,552 | |
| Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project | | | | | | | | |
| 5.250%, 12/01/2023 | | | 2,000 | | | | 1,784 | |
| | | | | | | | | |
| | | | | | | | 8,669 | |
| | | | | | | | | |
| Oregon – 0.7% |
| Revenue Bonds – 0.7% |
| Gilliam County Solid Waste Disposal, Waste Management Project (AMT) | | | | | | | | |
| 5.250%, 07/01/2029 | | | 1,500 | | | | 1,315 | |
| Oregon Health Sciences University, Series A | | | | | | | | |
| 5.750%, 07/01/2039 | | | 1,750 | | | | 1,713 | |
| | | | | | | | | |
| | | | | | | | 3,028 | |
| | | | | | | | | |
| Pennsylvania – 3.1% |
| Revenue Bonds – 2.6% |
| Delaware County Authority College Revenue, Neumann College | | | | | | | | |
| 6.125%, 10/01/2034 | | | 1,000 | | | | 949 | |
| Erie County Industrial Development Authority, International Paper Company Project, | | | | | | | | |
| Series A (AMT) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,350 | | | | 1,148 | |
| Montgomery County Industrial Development Authority, Whitemarsh Continuing Care | | | | | | | | |
| 6.250%, 02/01/2035 | | | 2,090 | | | | 1,347 | |
| Pennsylvania Economic Development Authority, Allegheny Energy Supply | | | | | | | | |
7.000%, 07/15/2039 « | | | 5,000 | | | | 5,046 | |
| State Public School Building Authority, Delaware County Community College Project (FSA) | | | | | | | | |
| 5.000%, 10/01/2024 | | | 1,600 | | | | 1,678 | |
| Westmoreland County Industrial Development Authority, Redstone Retirement Community, | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 01/01/2026 | | | 1,200 | | | | 894 | |
| | | | | | | | | |
| | | | | | | | 11,062 | |
| | | | | | | | | |
| General Obligation – 0.5% |
| Bethel Park School District (STAID) | | | | | | | | |
| 5.100%, 08/01/2033 | | | 2,000 | | | | 1,978 | |
| | | | | | | | | |
| | | | | | | | 13,040 | |
| | | | | | | | | |
| Puerto Rico – 2.9% |
| Revenue Bond – 2.7% |
| Puerto Rico Electric Power Authority, Series VV (NATL) | | | | | | | | |
| 5.250%, 07/01/2029 | | | 11,785 | | | | 11,184 | |
| | | | | | | | | |
| General Obligations – 0.2% |
| Puerto Rico Commonwealth, Series A | | | | | | | | |
| 5.000%, 07/01/2027 | | | 550 | | | | 475 | |
| Puerto Rico Commonwealth, Public Improvement (NATL) | | | | | | | | |
| 5.750%, 07/01/2026 | | | 500 | | | | 522 | |
| | | | | | | | | |
| | | | | | | | 997 | |
| | | | | | | | | |
| | | | | | | | 12,181 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 79
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| South Carolina – 1.4% |
| Revenue Bonds – 0.8% |
| Georgetown County Environmental Improvement, International Paper, Series A (AMT) | | | | | | | | |
| 5.550%, 12/01/2029 | | $ | 700 | | | $ | 539 | |
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance,
Series A | | | | | | | | |
| 6.125%, 08/01/2023 | | | 1,250 | | | | 1,192 | |
Series C, Pre-refunded 08/01/2013 @ 100 | | | | | | | | |
6.375%, 08/01/2034 ◊ | | | 1,115 | | | | 1,265 | |
6.375%, 08/01/2034 ◊ | | | 135 | | | | 155 | |
| | | | | | | | | |
| | | | | | | | 3,151 | |
| | | | | | | | | |
| General Obligation – 0.6% |
| South Carolina Infrastructure, Series A | | | | | | | | |
| 3.000%, 10/01/2024 | | | 3,000 | | | | 2,523 | |
| | | | | | | | | |
| | | | | | | | 5,674 | |
| | | | | | | | | |
| South Dakota – 3.9% |
| Revenue Bonds – 3.6% |
| Sioux Falls, Dow Rummel Village Project, | | | | | | | | |
Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
6.625%, 11/15/2023 ◊ | | | 2,270 | | | | 2,645 | |
| South Dakota Economic Development Finance Authority, Pooled Loan DTS Project, Series A (AMT) | | | | | | | | |
| 5.500%, 04/01/2019 | | | 1,055 | | | | 1,036 | |
| South Dakota Economic Development Finance Authority, Pooled Loan Program – Davis Family, | | | | | | | | |
| Series 4A (AMT) | | | | | | | | |
| 6.000%, 04/01/2029 | | | 1,400 | | | | 1,376 | |
| South Dakota Economic Development Finance Authority, Pooled Loan Program – Spearfish Forest, Series A (AMT) | | | | | | | | |
| 5.875%, 04/01/2028 | | | 2,000 | | | | 1,950 | |
| South Dakota Health & Educational Facilities Authority, Vocational Education Program (AGTY) | | | | | | | | |
| 5.500%, 08/01/2038 | | | 7,000 | | | | 7,084 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 5.000%, 09/01/2031 | | | 1,250 | | | | 1,044 | |
| | | | | | | | | |
| | | | | | | | 15,135 | |
| | | | | | | | | |
| Certificate of Participation – 0.3% |
| Deadwood (ACA) | | | | | | | | |
| 5.000%, 11/01/2020 | | | 1,500 | | | | 1,214 | |
| | | | | | | | | |
| | | | | | | | 16,349 | |
| | | | | | | | | |
| Tennessee – 1.8% |
| Revenue Bonds – 1.5% |
Johnson City Health & Educational Facilities Board, Mountain States Health, Series A Pre-refunded 07/01/2012 @ 103 | | | | | | | | |
7.500%, 07/01/2033 ◊ | | | 2,500 | | | | 2,834 | |
Shelby County Health, Educational, & Housing Facilities Board, Methodist Healthcare Pre-refunded 09/01/2012 @ 100 | | | | | | | | |
6.500%, 09/01/2021 ◊ | | | 1,125 | | | | 1,293 | |
6.500%, 09/01/2021 ◊ | | | 1,875 | | | | 2,155 | |
| | | | | | | | | |
| | | | | | | | 6,282 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Shelby County | | | | | | | | |
| 5.000%, 04/01/2020 | | | 1,000 | | | | 1,113 | |
| | | | | | | | | |
| | | | | | | | 7,395 | |
| | | | | | | | | |
| Texas – 14.2% |
| Revenue Bonds – 11.7% |
| Abilene Health Facilities Development, Sears Methodist Retirement Project | | | | | | | | |
| 5.875%, 11/15/2018 | | | 500 | | | | 427 | |
| Series A | | | | | | | | |
| 5.875%, 11/15/2018 | | | 2,500 | | | | 2,135 | |
| 7.000%, 11/15/2033 | | | 4,000 | | | | 3,072 | |
Bexar County Housing Finance Corporation, American Opportunity Housing, Series A
(NATL) | | | | | | | | |
| 5.800%, 01/01/2031 | | | 2,000 | | | | 1,452 | |
| Brazos County Health Facilities, Franciscan Services Corporation, St. Joseph Regional | | | | | | | | |
| 5.000%, 01/01/2023 | | | 3,635 | | | | 3,231 | |
| Crawford Education Facilities, University of St. Thomas Project | | | | | | | | |
| 5.250%, 10/01/2022 | | | 1,300 | | | | 1,170 | |
| 5.375%, 10/01/2027 | | | 1,750 | | | | 1,524 | |
| Dallas Area Rapid Transit Sales Tax, Senior Lien | | | | | | | | |
| 5.000%, 12/01/2018 | | | 2,000 | | | | 2,241 | |
| Harris County Health Facilities Development Corporation, Memorial Hermann Healthcare System, Series B | | | | | | | | |
| 7.250%, 12/01/2035 | | | 2,000 | | | | 2,144 | |
| Lubbock Educational Facilities Authority, Lubbock Christian University | | | | | | | | |
| 5.125%, 11/01/2027 | | | 1,000 | | | | 819 | |
| 5.250%, 11/01/2037 | | | 2,500 | | | | 1,929 | |
| North Texas Tollway Authority, First Tier, | | | | | | | | |
Series E-3
Mandatory Put 01/01/2016 @ 100 | | | | | | | | |
| 5.750%, 01/01/2038 | | | 4,500 | | | | 4,563 | |
| Red River Authority Sewer & Solidwaste Disposal, Excel Corporation Project (AMT) | | | | | | | | |
| 6.100%, 02/01/2022 | | | 3,775 | | | | 3,684 | |
| San Antonio Electric & Gas | | | | | | | | |
| 5.000%, 02/01/2025 | | | 4,000 | | | | 4,167 | |
| Series A | | | | | | | | |
| 5.250%, 02/01/2025 | | | 10,000 | | | | 10,658 | |
| San Marcos Waterworks & Wastewater Systems (FSA) | | | | | | | | |
| 5.000%, 08/15/2026 | | | 1,000 | | | | 1,025 | |
| Tarrant County Cultural Education Retirement Facilities, Northwest Senior Housing Edgemere Project, Series A | | | | | | | | |
| 6.000%, 11/15/2026 | | | 1,600 | | | | 1,350 | |
| Travis County Health Facilities, Querencia Barton Creek Project | | | | | | | | |
| 5.500%, 11/15/2025 | | | 1,300 | | | | 884 | |
| 5.650%, 11/15/2035 | | | 4,100 | | | | 2,657 | |
| | | | | | | | | |
| | | | | | | | 49,132 | |
| | | | | | | | | |
| General Obligations – 2.5% |
| Fort Bend Independent School District Escrowed to Maturity (PSFG) | | | | | | | | |
| 5.000%, 02/15/2014 § | | | 500 | | | | 566 | |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2009 Annual Report
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Humble Independent School District, | | | | | | | | |
| Series A (AGTY) | | | | | | | | |
| 5.250%, 02/15/2022 | | $ | 2,635 | | | $ | 2,828 | |
| San Marcos Certificates of Obligation (FSA) | | | | | | | | |
| 5.000%, 08/15/2025 | | | 1,000 | | | | 1,037 | |
| 5.000%, 08/15/2027 | | | 1,000 | | | | 1,025 | |
| Texas Transportation Commission, Mobility Fund | | | | | | | | |
| 5.000%, 04/01/2028 | | | 5,000 | | | | 5,167 | |
| | | | | | | | | |
| | | | | | | | 10,623 | |
| | | | | | | | | |
| | | | | | | | 59,755 | |
| | | | | | | | | |
| Utah – 1.2% |
| Revenue Bonds – 1.2% |
| Intermountain Power Agency, Utah Power Supply, | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 6.500%, 07/01/2011 | | | 365 | | | | 395 | |
| Series A, Escrowed to Maturity (AMBAC) | | | | | | | | |
| 6.500%, 07/01/2011 § | | | 635 | | | | 704 | |
| Uintah County Municipal Building Authority, Lease Revenue | | | | | | | | |
| 5.500%, 06/01/2037 | | | 4,000 | | | | 3,856 | |
| | | | | | | | | |
| | | | | | | | 4,955 | |
| | | | | | | | | |
| Vermont – 0.2% |
| Revenue Bond – 0.2% |
| Vermont Economic Development Authority, Wake Robin Corporation Project, Series A | | | | | | | | |
| 5.250%, 05/01/2026 | | | 1,000 | | | | 743 | |
| | | | | | | | | |
| Virginia – 0.2% |
| Revenue Bond – 0.2% |
| Arlington County Industrial Development Authority, Berkeley Apartments (AMT) (FNMA) | | | | | | | | |
| 5.850%, 12/01/2020 | | | 1,000 | | | | 1,036 | |
| | | | | | | | | |
| Washington – 0.2% |
| Revenue Bond – 0.2% |
| Washington Public Power Supply System, Nuclear Project #3, Series B | | | | | | | | |
| 7.125%, 07/01/2016 | | | 600 | | | | 745 | |
| | | | | | | | | |
| Wisconsin – 1.8% |
| Revenue Bonds – 1.8% |
| Wisconsin Health & Educational Facilities Authority, Beaver Dam Community Hospitals, | | | | | | | | |
| Series A | | | | | | | | |
| 6.750%, 08/15/2034 | | | 2,000 | | | | 1,516 | |
| Wisconsin Health & Educational Facilities Authority, Children’s Hospital of Wisconsin | | | | | | | | |
| 5.250%, 08/15/2024 | | | 2,000 | | | | 2,022 | |
| Wisconsin Health & Educational Facilities Authority, Eastcastle Place Income Project | | | | | | | | |
| 6.000%, 12/01/2024 | | | 1,000 | | | | 798 | |
| Wisconsin Health & Educational Facilities Authority, New Castle Place Project, Series A | | | | | | | | |
| 7.000%, 12/01/2031 | | | 2,000 | | | | 1,662 | |
| Wisconsin Health & Educational Facilities Authority, Southwest Health Center, Series A | | | | | | | | |
| 6.250%, 04/01/2034 | | | 2,000 | | | | 1,403 | |
| | | | | | | | | |
| | | | | | | | 7,401 | |
| | | | | | | | | |
| Wyoming – 0.7% |
| Revenue Bonds – 0.7% |
| Teton County Hospital District, St. John’s Medical Center | | | | | | | | |
| 6.750%, 12/01/2022 | | | 2,100 | | | | 1,889 | |
| 6.750%, 12/01/2027 | | | 1,500 | | | | 1,259 | |
| | | | | | | | | |
| | | | | | | | 3,148 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $444,930) | | | | | | | 409,676 | |
| | | | | | | | | |
Short-Term Investment – 3.3% |
First American Tax Free Obligations Fund, Class Z Å | | | | | | | | |
(Cost $13,679) | | | 13,678,627 | | | | 13,679 | |
| | | | | | | | | |
Total Investments 5 – 100.9% | | | | | | | | |
(Cost $458,609) | | | | | | | 423,355 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (0.9)% | | | | | | | (3,589 | ) |
| | | | | | | | | |
Total Net Assets 100.0% | | | | | | $ | 419,766 | |
| | | | | | | | | |
| | |
| ◊ | | Pre-refunded issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. These bonds mature at the call date and price indicated. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $9,392 or 2.3% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| § | | Escrowed to Maturity issues are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest. If callable, these bonds may still be subject to call prior to maturity. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $459,159. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 9,474 | |
| Gross unrealized depreciation | | | (45,278 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (35,804 | ) |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2009, the aggregate value of securities subject to the AMT was $52,244 which represents 12.4% total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHA – | Federal Housing Administration |
| |
| FNMA – | Federal National Mortgage Association |
| |
| FSA – | Financial Security Assurance |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| PSFG – | Permanent School Fund Guarantee |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
| |
| STAID – | State Aid Withholding |
| |
| VA – | Veterans Administration |
First American Funds 2009 Annual Report 81
| |
| Statements ofAssets and Liabilities | June 30, 2009, all dollars and shares are rounded to thousands (000), except per share data |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Minnesota
| | | |
| | | Arizona
| | | | California
| | | | Colorado
| | | | Intermediate
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| Unaffiliated investments, at cost | | $ | 22,997 | | | | $ | 100,338 | | | | $ | 65,861 | | | | $ | 648,166 | | | | $ | 193,417 | | | |
| Affiliated money market fund, at cost | | | — | | | | | — | | | | | 400 | | | | | 24,254 | | | | | — | | | |
| |
| |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated investments, at fair value (note 2) | | $ | 21,854 | | | | $ | 97,009 | | | | $ | 64,848 | | | | $ | 655,417 | | | | $ | 193,495 | | | |
| Affiliated money market fund, at fair value (note 2) | | | — | | | | | — | | | | | 400 | | | | | 24,254 | | | | | — | | | |
| Receivable for dividends and interest | | | 404 | | | | | 1,390 | | | | | 503 | | | | | 8,172 | | | | | 2,564 | | | |
| Receivable for investments sold | | | — | | | | | — | | | | | — | | | | | 54 | | | | | — | | | |
| Receivable for capital shares sold | | | 110 | | | | | 64 | | | | | 1 | | | | | 2,336 | | | | | 121 | | | |
| Receivable from advisor (note 3) | | | 11 | | | | | 7 | | | | | 14 | | | | | — | | | | | — | | | |
| Prepaid expenses and other assets | | | 3 | | | | | 1 | | | | | 2 | | | | | 6 | | | | | 1 | | | |
| |
| |
Total assets | | | 22,382 | | | | | 98,471 | | | | | 65,768 | | | | | 690,239 | | | | | 196,181 | | | |
| |
| |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Dividends payable | | | 72 | | | | | 308 | | | | | 199 | | | | | 2,158 | | | | | 537 | | | |
| Payable for investments purchased | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| Payable for investments purchased on a when-issued basis | | | — | | | | | — | | | | | — | | | | | 9,429 | | | | | — | | | |
| Payable for capital shares redeemed | | | 24 | | | | | 1 | | | | | 9 | | | | | 822 | | | | | 44 | | | |
| Payable to affiliates (note 3) | | | 15 | | | | | 31 | | | | | 25 | | | | | 378 | | | | | 108 | | | |
| Payable for distribution and shareholder servicing fees | | | 2 | | | | | 4 | | | | | 4 | | | | | 2 | | | | | 1 | | | |
| Accrued expenses and other liabilities | | | 29 | | | | | 30 | | | | | 31 | | | | | 38 | | | | | 32 | | | |
| |
| |
Total liabilities | | | 142 | | | | | 374 | | | | | 268 | | | | | 12,827 | | | | | 722 | | | |
| |
| |
Net assets | | $ | 22,240 | | | | $ | 98,097 | | | | $ | 65,500 | | | | $ | 677,412 | | | | $ | 195,459 | | | |
| |
| |
COMPOSITION OF NET ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio capital | | $ | 23,494 | | | | $ | 101,363 | | | | $ | 66,473 | | | | $ | 670,990 | | | | $ | 195,375 | | | |
| Undistributed (distributions in excess of) net investment income | | | 3 | | | | | (7 | ) | | | | (48 | ) | | | | (372 | ) | | | | (82 | ) | | |
| Accumulated net realized gain (loss) on investments (note 2) | | | (114 | ) | | | | 70 | | | | | 88 | | | | | (457 | ) | | | | 88 | | | |
| Net unrealized appreciation (depreciation) of investments | | | (1,143 | ) | | | | (3,329 | ) | | | | (1,013 | ) | | | | 7,251 | | | | | 78 | | | |
| |
| |
Net assets | | $ | 22,240 | | | | $ | 98,097 | | | | $ | 65,500 | | | | $ | 677,412 | | | | $ | 195,459 | | | |
| |
| |
Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 6,410 | | | | $ | 16,417 | | | | $ | 11,088 | | | | $ | 35,017 | | | | $ | 23,019 | | | |
Shares issued and outstanding
($0.0001 par value – 2 billion authorized) | | | 632 | | | | | 1,599 | | | | | 1,155 | | | | | 3,349 | | | | | 2,379 | | | |
| Net asset value and redemption price per share | | $ | 10.14 | | | | $ | 10.27 | | | | $ | 9.60 | | | | $ | 10.46 | | | | $ | 9.67 | | | |
Maximum offering price per share1 | | $ | 10.59 | | | | $ | 10.73 | | | | $ | 10.03 | | | | $ | 10.70 | | | | $ | 9.89 | | | |
Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,462 | | | | $ | 4,064 | | | | $ | 2,891 | | | | | — | | | | | — | | | |
Shares issued and outstanding
($0.0001 par value – 2 billion authorized) | | | 144 | | | | | 395 | | | | | 302 | | | | | — | | | | | — | | | |
Net asset value, offering price, and redemption price per share2 | | $ | 10.12 | | | | $ | 10.28 | | | | $ | 9.57 | | | | | — | | | | | — | | | |
Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 14,368 | | | | $ | 77,616 | | | | $ | 51,521 | | | | $ | 642,395 | | | | $ | 172,440 | | | |
Shares issued and outstanding
($0.0001 par value – 2 billion authorized) | | | 1,417 | | | | | 7,561 | | | | | 5,356 | | | | | 61,571 | | | | | 17,927 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 10.14 | | | | $ | 10.27 | | | | $ | 9.62 | | | | $ | 10.43 | | | | $ | 9.62 | | | |
| |
| |
| | |
| | 1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. |
| |
| | 2 | Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
82 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Oregon
| | | | | | | | | | | |
| | | Minnesota
| | | | Missouri
| | | | Nebraska
| | | | Ohio
| | | | Intermediate
| | | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | $ | 157,280 | | | | $ | 146,438 | | | | $ | 39,032 | | | | $ | 47,711 | | | | $ | 123,308 | | | | $ | 168,158 | | | | $ | 444,930 | | | |
| | | | — | | | | | 2,762 | | | | | 353 | | | | | — | | | | | 4,267 | | | | | 9,287 | | | | | 13,679 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 148,246 | | | | $ | 140,038 | | | | $ | 38,449 | | | | $ | 47,012 | | | | $ | 125,599 | | | | $ | 170,217 | | | | $ | 409,676 | | | |
| | | | — | | | | | 2,762 | | | | | 353 | | | | | — | | | | | 4,267 | | | | | 9,287 | | | | | 13,679 | | | |
| | | | 2,022 | | | | | 1,978 | | | | | 519 | | | | | 458 | | | | | 1,177 | | | | | 2,291 | | | | | 6,485 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| | | | 90 | | | | | 113 | | | | | — | | | | | — | | | | | 2,024 | | | | | 1,020 | | | | | 1,569 | | | |
| | | | — | | | | | — | | | | | 17 | | | | | 6 | | | | | — | | | | | — | | | | | — | | | |
| | | | 2 | | | | | 2 | | | | | 4 | | | | | 1 | | | | | 1 | | | | | — | | | | | 5 | | | |
| |
| |
| | | | 150,360 | | | | | 144,893 | | | | | 39,342 | | | | | 47,477 | | | | | 133,068 | | | | | 182,815 | | | | | 431,414 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 284 | | | | | 491 | | | | | 121 | | | | | 148 | | | | | 400 | | | | | 358 | | | | | 1,679 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 1,636 | | | | | — | | | | | — | | | |
| | | | — | | | | | 1,240 | | | | | — | | | | | 1,000 | | | | | — | | | | | — | | | | | 9,392 | | | |
| | | | 147 | | | | | 4 | | | | | 50 | | | | | 50 | | | | | 10 | | | | | 21 | | | | | 302 | | | |
| | | | 81 | | | | | 77 | | | | | 18 | | | | | 19 | | | | | 67 | | | | | 78 | | | | | 233 | | | |
| | | | 17 | | | | | 4 | | | | | 3 | | | | | — | | | | | 1 | | | | | — | | | | | 4 | | | |
| | | | 31 | | | | | 32 | | | | | 29 | | | | | 30 | | | | | 32 | | | | | 32 | | | | | 38 | | | |
| |
| |
| | | | 560 | | | | | 1,848 | | | | | 221 | | | | | 1,247 | | | | | 2,146 | | | | | 489 | | | | | 11,648 | | | |
| |
| |
| | | $ | 149,800 | | | | $ | 143,045 | | | | $ | 39,121 | | | | $ | 46,230 | | | | $ | 130,922 | | | | $ | 182,326 | | | | $ | 419,766 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 160,132 | | | | $ | 148,788 | | | | $ | 40,340 | | | | $ | 47,518 | | | | $ | 129,551 | | | | $ | 184,116 | | | | $ | 462,622 | | | |
| | | | 31 | | | | | (28 | ) | | | | (17 | ) | | | | (17 | ) | | | | (1 | ) | | | | (7 | ) | | | | (9 | ) | | |
| | | | (1,329 | ) | | | | 685 | | | | | (619 | ) | | | | (572 | ) | | | | (919 | ) | | | | (3,842 | ) | | | | (7,593 | ) | | |
| | | | (9,034 | ) | | | | (6,400 | ) | | | | (583 | ) | | | | (699 | ) | | | | 2,291 | | | | | 2,059 | | | | | (35,254 | ) | | |
| |
| |
| | | $ | 149,800 | | | | $ | 143,045 | | | | $ | 39,121 | | | | $ | 46,230 | | | | $ | 130,922 | | | | $ | 182,326 | | | | $ | 419,766 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 87,218 | | | | $ | 22,766 | | | | $ | 5,847 | | | | $ | 1,048 | | | | $ | 10,963 | | | | $ | 3,376 | | | | $ | 35,276 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8,738 | | | | | 2,049 | | | | | 594 | | | | | 106 | | | | | 1,122 | | | | | 347 | | | | | 3,655 | | | |
| | | $ | 9.98 | | | | $ | 11.11 | | | | $ | 9.84 | | | | $ | 9.90 | | | | $ | 9.77 | | | | $ | 9.74 | | | | $ | 9.65 | | | |
| | | $ | 10.42 | | | | $ | 11.60 | | | | $ | 10.28 | | | | $ | 10.34 | | | | $ | 9.99 | | | | $ | 9.96 | | | | $ | 10.08 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 20,489 | | | | $ | 757 | | | | $ | 2,585 | | | | $ | 399 | | | | | — | | | | | — | | | | $ | 3,442 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2,062 | | | | | 68 | | | | | 265 | | | | | 41 | | | | | — | | | | | — | | | | | 358 | | | |
| | | $ | 9.94 | | | | $ | 11.08 | | | | $ | 9.76 | | | | $ | 9.76 | | | | | — | | | | | — | | | | $ | 9.61 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 42,093 | | | | $ | 119,522 | | | | $ | 30,689 | | | | $ | 44,783 | | | | $ | 119,959 | | | | $ | 178,950 | | | | $ | 381,048 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4,223 | | | | | 10,752 | | | | | 3,121 | | | | | 4,524 | | | | | 12,278 | | | | | 18,374 | | | | | 39,432 | | | |
| | | $ | 9.97 | | | | $ | 11.12 | | | | $ | 9.83 | | | | $ | 9.90 | | | | $ | 9.77 | | | | $ | 9.74 | | | | $ | 9.66 | | | |
| |
| |
First American Funds 2009 Annual Report 83
| |
| Statements ofOperations | For the year ended June 30, 2009, all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Minnesota
| | | |
| | | Arizona
| | | | California
| | | | Colorado
| | | | Intermediate
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest from unaffiliated investments | | $ | 1,282 | | | | $ | 3,444 | | | | $ | 2,295 | | | | $ | 32,999 | | | | $ | 9,076 | | | |
| Dividends from unaffiliated money market fund | | | 9 | | | | | 11 | | | | | — | | | | | — | | | | | — | | | |
| Dividends from affiliated money market fund | | | — | | | | | — | | | | | 9 | | | | | 100 | | | | | 1 | | | |
| |
| |
Total investment income | | | 1,291 | | | | | 3,455 | | | | | 2,304 | | | | | 33,099 | | | | | 9,077 | | | |
| |
| |
EXPENSES (note 3): | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees | | | 123 | | | | | 336 | | | | | 217 | | | | | 3,287 | | | | | 958 | | | |
| Administration fees | | | 61 | | | | | 159 | | | | | 105 | | | | | 1,486 | | | | | 438 | | | |
| Transfer agent fees | | | 79 | | | | | 80 | | | | | 80 | | | | | 59 | | | | | 59 | | | |
| Custodian fees | | | 1 | | | | | 4 | | | | | 2 | | | | | 33 | | | | | 10 | | | |
| Legal fees | | | 16 | | | | | 18 | | | | | 18 | | | | | 16 | | | | | 15 | | | |
| Audit fees | | | 33 | | | | | 34 | | | | | 35 | | | | | 33 | | | | | 33 | | | |
| Registration fees | | | 7 | | | | | 7 | | | | | 6 | | | | | 29 | | | | | 5 | | | |
| Postage & printing fees | | | 2 | | | | | 4 | | | | | 4 | | | | | 38 | | | | | 12 | | | |
| Directors’ fees | | | 29 | | | | | 32 | | | | | 32 | | | | | 29 | | | | | 29 | | | |
| Other expenses | | | 19 | | | | | 21 | | | | | 21 | | | | | 20 | | | | | 19 | | | |
| Distribution and shareholder servicing fees: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 16 | | | | | 35 | | | | | 20 | | | | | 71 | | | | | 58 | | | |
| Class C | | | 9 | | | | | 19 | | | | | 19 | | | | | — | | | | | — | | | |
| |
| |
Total expenses | | | 395 | | | | | 749 | | | | | 559 | | | | | 5,101 | | | | | 1,636 | | | |
| |
| |
| Less: Fee waivers (note 3) | | | (247 | ) | | | | (373 | ) | | | | (304 | ) | | | | (491 | ) | | | | (283 | ) | | |
| |
| |
Total net expenses | | | 148 | | | | | 376 | | | | | 255 | | | | | 4,610 | | | | | 1,353 | | | |
| |
| |
Investment income – net | | | 1,143 | | | | | 3,079 | | | | | 2,049 | | | | | 28,489 | | | | | 7,724 | | | |
| |
| |
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 48 | | | | | 82 | | | | | 145 | | | | | (457 | ) | | | | 277 | | | |
| Futures contracts | | | (75 | ) | | | | — | | | | | — | | | | | — | | | | | — | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (767 | ) | | | | (3,078 | ) | | | | (872 | ) | | | | (2,077 | ) | | | | (1,942 | ) | | |
| Futures contracts | | | 1 | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| |
| |
Net gain (loss) on investments and futures contracts | | | (793 | ) | | | | (2,996 | ) | | | | (727 | ) | | | | (2,534 | ) | | | | (1,665 | ) | | |
| |
| |
Net increase (decrease) in net assets resulting from operations | | $ | 350 | | | | $ | 83 | | | | $ | 1,322 | | | | $ | 25,955 | | | | $ | 6,059 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
84 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Oregon
| | | | | | | | | | | |
| | | Minnesota
| | | | Missouri
| | | | Nebraska
| | | | Ohio
| | | | Intermediate
| | | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7,777 | | | | $ | 7,652 | | | | $ | 1,926 | | | | $ | 2,257 | | | | $ | 5,721 | | | | $ | 5,397 | | | | $ | 24,218 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| | | | 1 | | | | | 17 | | | | | 7 | | | | | — | | | | | 16 | | | | | 84 | | | | | 146 | | | |
| |
| |
| | | | 7,778 | | | | | 7,669 | | | | | 1,933 | | | | | 2,257 | | | | | 5,737 | | | | | 5,481 | | | | | 24,364 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 752 | | | | | 738 | | | | | 187 | | | | | 233 | | | | | 632 | | | | | 797 | | | | | 2,100 | | | |
| | | | 344 | | | | | 339 | | | | | 90 | | | | | 111 | | | | | 289 | | | | | 364 | | | | | 953 | | | |
| | | | 82 | | | | | 81 | | | | | 80 | | | | | 79 | | | | | 58 | | | | | 58 | | | | | 80 | | | |
| | | | 7 | | | | | 8 | | | | | 2 | | | | | 2 | | | | | 6 | | | | | 8 | | | | | 21 | | | |
| | | | 16 | | | | | 16 | | | | | 16 | | | | | 16 | | | | | 16 | | | | | 16 | | | | | 16 | | | |
| | | | 33 | | | | | 33 | | | | | 33 | | | | | 33 | | | | | 33 | | | | | 33 | | | | | 33 | | | |
| | | | 7 | | | | | 8 | | | | | 8 | | | | | 6 | | | | | 6 | | | | | 28 | | | | | 37 | | | |
| | | | 11 | | | | | 10 | | | | | 2 | | | | | 3 | | | | | 8 | | | | | 10 | | | | | 28 | | | |
| | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | |
| | | | 19 | | | | | 19 | | | | | 19 | | | | | 20 | | | | | 19 | | | | | 19 | | | | | 20 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 224 | | | | | 55 | | | | | 14 | | | | | 2 | | | | | 17 | | | | | 6 | | | | | 81 | | | |
| | | | 125 | | | | | 4 | | | | | 14 | | | | | 2 | | | | | — | | | | | — | | | | | 20 | | | |
| |
| |
| | | | 1,649 | | | | | 1,340 | | | | | 494 | | | | | 536 | | | | | 1,113 | | | | | 1,368 | | | | | 3,418 | | | |
| |
| |
| | | | (337 | ) | | | | (250 | ) | | | | (280 | ) | | | | (299 | ) | | | | (219 | ) | | | | (415 | ) | | | | (450 | ) | | |
| |
| |
| | | | 1,312 | | | | | 1,090 | | | | | 214 | | | | | 237 | | | | | 894 | | | | | 953 | | | | | 2,968 | | | |
| |
| |
| | | | 6,466 | | | | | 6,579 | | | | | 1,719 | | | | | 2,020 | | | | | 4,843 | | | | | 4,528 | | | | | 21,396 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (810 | ) | | | | 685 | | | | | (202 | ) | | | | (353 | ) | | | | (498 | ) | | | | 34 | | | | | (5,558 | ) | | |
| | | | (154 | ) | | | | — | | | | | (245 | ) | | | | (195 | ) | | | | (324 | ) | | | | (2,092 | ) | | | | (676 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (6,522 | ) | | | | (4,614 | ) | | | | (344 | ) | | | | (255 | ) | | | | 1,808 | | | | | 2,012 | | | | | (24,517 | ) | | |
| | | | — | | | | | — | | | | | — | | | | | 2 | | | | | 3 | | | | | 70 | | | | | — | | | |
| |
| |
| | | | (7,486 | ) | | | | (3,929 | ) | | | | (791 | ) | | | | (801 | ) | | | | 989 | | | | | 24 | | | | | (30,751 | ) | | |
| |
| |
| | | $ | (1,020 | ) | | | $ | 2,650 | | | | $ | 928 | | | | $ | 1,219 | | | | $ | 5,832 | | | | $ | 4,552 | | | | $ | (9,355 | ) | | |
| |
| |
First American Funds 2009 Annual Report 85
| |
| Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Arizona
| | | | California
| | | | Colorado
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 1,143 | | | $ | 1,257 | | | | $ | 3,079 | | | $ | 1,716 | | | | $ | 2,049 | | | $ | 1,031 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 48 | | | | (80 | ) | | | | 82 | | | | (1 | ) | | | | 145 | | | | 144 | | | |
| Futures contracts | | | (75 | ) | | | 6 | | | | | — | | | | — | | | | | — | | | | — | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (767 | ) | | | (836 | ) | | | | (3,078 | ) | | | (1,044 | ) | | | | (872 | ) | | | (802 | ) | | |
| Futures contracts | | | 1 | | | | (1 | ) | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | 350 | | | | 346 | | | | | 83 | | | | 671 | | | | | 1,322 | | | | 373 | | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (287 | ) | | | (306 | ) | | | | (622 | ) | | | (469 | ) | | | | (367 | ) | | | (287 | ) | | |
| Class C | | | (59 | ) | | | (51 | ) | | | | (115 | ) | | | (57 | ) | | | | (123 | ) | | | (108 | ) | | |
| Class Y | | | (809 | ) | | | (894 | ) | | | | (2,343 | ) | | | (1,201 | ) | | | | (1,611 | ) | | | (622 | ) | | |
| Net realized gain on investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (21 | ) | | | | — | | | | (38 | ) | | | | (46 | ) | | | (22 | ) | | |
| Class C | | | — | | | | (3 | ) | | | | — | | | | (4 | ) | | | | (24 | ) | | | (9 | ) | | |
| Class Y | | | — | | | | (62 | ) | | | | — | | | | (93 | ) | | | | (132 | ) | | | (44 | ) | | |
| |
| |
| Total distributions | | | (1,155 | ) | | | (1,337 | ) | | | | (3,080 | ) | | | (1,862 | ) | | | | (2,303 | ) | | | (1,092 | ) | | |
| |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 397 | | | | 359 | | | | | 4,306 | | | | 2,890 | | | | | 877 | | | | 611 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | 4,782 | | | | — | | | | | 5,874 | | | | — | | | |
| Reinvestment of distributions | | | 80 | | | | 94 | | | | | 398 | | | | 343 | | | | | 323 | | | | 243 | | | |
| Payments for redemptions | | | (573 | ) | | | (1,849 | ) | | | | (4,585 | ) | | | (2,258 | ) | | | | (1,135 | ) | | | (3,633 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | (96 | ) | | | (1,396 | ) | | | | 4,901 | | | | 975 | | | | | 5,939 | | | | (2,779 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 170 | | | | 300 | | | | | 1,946 | | | | 1,518 | | | | | 598 | | | | 433 | | | |
| Reinvestment of distributions | | | 36 | | | | 36 | | | | | 81 | | | | 46 | | | | | 118 | | | | 102 | | | |
| Payments for redemptions (note 3) | | | (80 | ) | | | (459 | ) | | | | (327 | ) | | | (543 | ) | | | | (494 | ) | | | (474 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class C transactions | | | 126 | | | | (123 | ) | | | | 1,700 | | | | 1,021 | | | | | 222 | | | | 61 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 5,993 | | | | 3,964 | | | | | 11,939 | | | | 19,459 | | | | | 1,672 | | | | 7,641 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | 54,350 | | | | — | | | | | 42,389 | | | | — | | | |
| Reinvestment of distributions | | | 111 | | | | 167 | | | | | 65 | | | | 89 | | | | | 87 | | | | 39 | | | |
| Payments for redemptions | | | (8,692 | ) | | | (5,247 | ) | | | | (16,902 | ) | | | (13,029 | ) | | | | (8,391 | ) | | | (4,833 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | (2,588 | ) | | | (1,116 | ) | | | | 49,452 | | | | 6,519 | | | | | 35,757 | | | | 2,847 | | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | (2,558 | ) | | | (2,635 | ) | | | | 56,053 | | | | 8,515 | | | | | 41,918 | | | | 129 | | | |
| |
| |
| Total increase (decrease) in net assets | | | (3,363 | ) | | | (3,626 | ) | | | | 53,056 | | | | 7,324 | | | | | 40,937 | | | | (590 | ) | | |
Net assets at beginning of year | | | 25,603 | | | | 29,229 | | | | | 45,041 | | | | 37,717 | | | | | 24,563 | | | | 25,153 | | | |
| |
| |
Net assets at end of year | | $ | 22,240 | | | $ | 25,603 | | | | $ | 98,097 | | | $ | 45,041 | | | | $ | 65,500 | | | $ | 24,563 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income at end of year | | $ | 3 | | | $ | 15 | | | | $ | (7 | ) | | $ | 1 | | | | $ | (48 | ) | | $ | 15 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
86 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Minnesota
| | | | | | | | | | | | | | | |
| | | Intermediate
| | | | Intermediate
| | | | Minnesota
| | | | Missouri
| | | | Nebraska
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 28,489 | | | $ | 25,731 | | | | $ | 7,724 | | | $ | 7,694 | | | | $ | 6,466 | | | $ | 7,190 | | | | $ | 6,579 | | | $ | 6,593 | | | | $ | 1,719 | | | $ | 1,628 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (457 | ) | | | 970 | | | | | 277 | | | | 359 | | | | | (810 | ) | | | 912 | | | | | 685 | | | | 337 | | | | | (202 | ) | | | (168 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | (154 | ) | | | (138 | ) | | | | — | | | | — | | | | | (245 | ) | | | 10 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2,077 | ) | | | (7,129 | ) | | | | (1,942 | ) | | | (1,613 | ) | | | | (6,522 | ) | | | (7,169 | ) | | | | (4,614 | ) | | | (4,461 | ) | | | | (344 | ) | | | (557 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| | | | 25,955 | | | | 19,572 | | | | | 6,059 | | | | 6,440 | | | | | (1,020 | ) | | | 795 | | | | | 2,650 | | | | 2,469 | | | | | 928 | | | | 913 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1,243 | ) | | | (1,135 | ) | | | | (936 | ) | | | (835 | ) | | | | (3,870 | ) | | | (4,350 | ) | | | | (955 | ) | | | (949 | ) | | | | (253 | ) | | | (256 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | (735 | ) | | | (627 | ) | | | | (21 | ) | | | (18 | ) | | | | (90 | ) | | | (65 | ) | | |
| | | | (28,122 | ) | | | (24,290 | ) | | | | (6,863 | ) | | | (6,991 | ) | | | | (1,856 | ) | | | (2,281 | ) | | | | (5,710 | ) | | | (5,628 | ) | | | | (1,415 | ) | | | (1,294 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (22 | ) | | | (98 | ) | | | | (67 | ) | | | (58 | ) | | | | (519 | ) | | | (553 | ) | | | | (51 | ) | | | (62 | ) | | | | — | | | | (33 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | (109 | ) | | | (88 | ) | | | | (1 | ) | | | (1 | ) | | | | — | | | | (9 | ) | | |
| | | | (483 | ) | | | (2,016 | ) | | | | (447 | ) | | | (463 | ) | | | | (234 | ) | | | (292 | ) | | | | (283 | ) | | | (344 | ) | | | | — | | | | (147 | ) | | |
| |
| |
| | | | (29,870 | ) | | | (27,539 | ) | | | | (8,313 | ) | | | (8,347 | ) | | | | (7,323 | ) | | | (8,191 | ) | | | | (7,021 | ) | | | (7,002 | ) | | | | (1,758 | ) | | | (1,804 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 12,873 | | | | 3,233 | | | | | 9,912 | | | | 10,123 | | | | | 11,454 | | | | 21,625 | | | | | 2,562 | | | | 747 | | | | | 1,265 | | | | 606 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 899 | | | | 903 | | | | | 687 | | | | 503 | | | | | 2,771 | | | | 3,046 | | | | | 517 | | | | 493 | | | | | 166 | | | | 172 | | | |
| | | | (6,277 | ) | | | (5,974 | ) | | | | (9,326 | ) | | | (9,511 | ) | | | | (23,953 | ) | | | (24,967 | ) | | | | (2,921 | ) | | | (2,390 | ) | | | | (1,154 | ) | | | (2,045 | ) | | |
| |
| |
| | | | 7,495 | | | | (1,838 | ) | | | | 1,273 | | | | 1,115 | | | | | (9,728 | ) | | | (296 | ) | | | | 158 | | | | (1,150 | ) | | | | 277 | | | | (1,267 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | 4,451 | | | | 8,918 | | | | | 342 | | | | — | | | | | 819 | | | | 623 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | 585 | | | | 505 | | | | | 17 | | | | 19 | | | | | 47 | | | | 43 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | (3,560 | ) | | | (2,833 | ) | | | | (2 | ) | | | (117 | ) | | | | (66 | ) | | | (386 | ) | | |
| |
| |
| | | | — | | | | — | | | | | — | | | | — | | | | | 1,476 | | | | 6,590 | | | | | 357 | | | | (98 | ) | | | | 800 | | | | 280 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 174,306 | | | | 220,502 | | | | | 39,545 | | | | 38,462 | | | | | 17,375 | | | | 19,010 | | | | | 29,215 | | | | 40,288 | | | | | 7,086 | | | | 4,011 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 2,666 | | | | 2,647 | | | | | 279 | | | | 217 | | | | | 100 | | | | 214 | | | | | 190 | | | | 175 | | | | | 91 | | | | 107 | | | |
| | | | (161,514 | ) | | | (139,275 | ) | | | | (41,124 | ) | | | (30,220 | ) | | | | (18,223 | ) | | | (28,113 | ) | | | | (43,791 | ) | | | (29,502 | ) | | | | (5,323 | ) | | | (6,372 | ) | | |
| |
| |
| | | | 15,458 | | | | 83,874 | | | | | (1,300 | ) | | | 8,459 | | | | | (748 | ) | | | (8,889 | ) | | | | (14,386 | ) | | | 10,961 | | | | | 1,854 | | | | (2,254 | ) | | |
| |
| |
| | | | 22,953 | | | | 82,036 | | | | | (27 | ) | | | 9,574 | | | | | (9,000 | ) | | | (2,595 | ) | | | | (13,871 | ) | | | 9,713 | | | | | 2,931 | | | | (3,241 | ) | | |
| |
| |
| | | | 19,038 | | | | 74,069 | | | | | (2,281 | ) | | | 7,667 | | | | | (17,343 | ) | | | (9,991 | ) | | | | (18,242 | ) | | | 5,180 | | | | | 2,101 | | | | (4,132 | ) | | |
| | | | 658,374 | | | | 584,305 | | | | | 197,740 | | | | 190,073 | | | | | 167,143 | | | | 177,134 | | | | | 161,287 | | | | 156,107 | | | | | 37,020 | | | | 41,152 | | | |
| |
| |
| | | $ | 677,412 | | | $ | 658,374 | | | | $ | 195,459 | | | $ | 197,740 | | | | $ | 149,800 | | | $ | 167,143 | | | | $ | 143,045 | | | $ | 161,287 | | | | $ | 39,121 | | | $ | 37,020 | | | |
| |
| |
| | | $ | (372 | ) | | $ | 505 | | | | $ | (82 | ) | | $ | (7 | ) | | | $ | 31 | | | $ | 26 | | | | $ | (28 | ) | | $ | 79 | | | | $ | (17 | ) | | $ | 22 | | | |
| |
| |
First American Funds 2009 Annual Report 87
| |
| Statements ofChanges in Net Assets | all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Oregon
| | | | | | | | | | | |
| | | Ohio
| | | | Intermediate
| | | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 2,020 | | | $ | 1,842 | | | | $ | 4,843 | | | $ | 4,599 | | | | $ | 4,528 | | | $ | 4,866 | | | | $ | 21,396 | | | $ | 23,325 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (353 | ) | | | 84 | | | | | (498 | ) | | | (96 | ) | | | | 34 | | | | 497 | | | | | (5,558 | ) | | | 1,353 | | | |
| Futures contracts | | | (195 | ) | | | 6 | | | | | (324 | ) | | | — | | | | | (2,092 | ) | | | — | | | | | (676 | ) | | | (668 | ) | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (255 | ) | | | (856 | ) | | | | 1,808 | | | | (532 | ) | | | | 2,012 | | | | 1,053 | | | | | (24,517 | ) | | | (24,039 | ) | | |
| Futures contracts | | | 2 | | | | (2 | ) | | | | 3 | | | | (3 | ) | | | | 70 | | | | (70 | ) | | | | — | | | | — | | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | 1,219 | | | | 1,074 | | | | | 5,832 | | | | 3,968 | | | | | 4,552 | | | | 6,346 | | | | | (9,355 | ) | | | (29 | ) | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (31 | ) | | | (25 | ) | | | | (256 | ) | | | (256 | ) | | | | (68 | ) | | | (75 | ) | | | | (1,662 | ) | | | (1,517 | ) | | |
| Class C | | | (10 | ) | | | (7 | ) | | | | — | | | | — | | | | | — | | | | — | | | | | (138 | ) | | | (106 | ) | | |
| Class Y | | | (2,005 | ) | | | (1,807 | ) | | | | (4,645 | ) | | | (4,379 | ) | | | | (4,419 | ) | | | (4,968 | ) | | | | (19,833 | ) | | | (21,409 | ) | | |
| Net realized gain on investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (2 | ) | | | | — | | | | (5 | ) | | | | — | | | | — | | | | | (51 | ) | | | (200 | ) | | |
| Class C | | | — | | | | (1 | ) | | | | — | | | | — | | | | | — | | | | — | | | | | (5 | ) | | | (15 | ) | | |
| Class Y | | | — | | | | (140 | ) | | | | — | | | | (77 | ) | | | | — | | | | — | | | | | (587 | ) | | | (2,753 | ) | | |
| |
| |
| Total distributions | | | (2,046 | ) | | | (1,982 | ) | | | | (4,901 | ) | | | (4,717 | ) | | | | (4,487 | ) | | | (5,043 | ) | | | | (22,276 | ) | | | (26,000 | ) | | |
| |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 425 | | | | 149 | | | | | 6,281 | | | | 748 | | | | | 1,472 | | | | 245 | | | | | 6,423 | | | | 4,582 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 24 | | | | 16 | | | | | 141 | | | | 134 | | | | | 49 | | | | 71 | | | | | 1,203 | | | | 1,212 | | | |
| Payments for redemptions | | | (36 | ) | | | (329 | ) | | | | (1,497 | ) | | | (2,793 | ) | | | | (435 | ) | | | (438 | ) | | | | (5,718 | ) | | | (6,234 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | 413 | | | | (164 | ) | | | | 4,925 | | | | (1,911 | ) | | | | 1,086 | | | | (122 | ) | | | | 1,908 | | | | (440 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 266 | | | | 70 | | | | | — | | | | — | | | | | — | | | | — | | | | | 967 | | | | 1,184 | | | |
| Reinvestment of distributions | | | 5 | | | | 2 | | | | | — | | | | — | | | | | — | | | | — | | | | | 68 | | | | 59 | | | |
| Payments for redemptions (note 3) | | | (117 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (550 | ) | | | (478 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class C transactions | | | 154 | | | | 72 | | | | | — | | | | — | | | | | — | | | | — | | | | | 485 | | | | 765 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 6,084 | | | | 12,297 | | | | | 25,178 | | | | 26,153 | | | | | 99,972 | | | | 50,001 | | | | | 98,620 | | | | 113,242 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 294 | | | | 294 | | | | | 87 | | | | 122 | | | | | 216 | | | | 265 | | | | | 749 | | | | 1,585 | | | |
| Payments for redemptions | | | (9,288 | ) | | | (5,409 | ) | | | | (26,966 | ) | | | (14,100 | ) | | | | (65,306 | ) | | | (69,032 | ) | | | | (137,800 | ) | | | (181,303 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | (2,910 | ) | | | 7,182 | | | | | (1,701 | ) | | | 12,175 | | | | | 34,882 | | | | (18,766 | ) | | | | (38,431 | ) | | | (66,476 | ) | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | (2,343 | ) | | | 7,090 | | | | | 3,224 | | | | 10,264 | | | | | 35,968 | | | | (18,888 | ) | | | | (36,038 | ) | | | (66,151 | ) | | |
| |
| |
| Total increase (decrease) in net assets | | | (3,170 | ) | | | 6,182 | | | | | 4,155 | | | | 9,515 | | | | | 36,033 | | | | (17,585 | ) | | | | (67,669 | ) | | | (92,180 | ) | | |
Net assets at beginning of year | | | 49,400 | | | | 43,218 | | | | | 126,767 | | | | 117,252 | | | | | 146,293 | | | | 163,878 | | | | | 487,435 | | | | 579,615 | | | |
| |
| |
Net assets at end of year | | $ | 46,230 | | | $ | 49,400 | | | | $ | 130,922 | | | $ | 126,767 | | | | $ | 182,326 | | | $ | 146,293 | | | | $ | 419,766 | | | $ | 487,435 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income at end of year | | $ | (17 | ) | | $ | 9 | | | | $ | (1 | ) | | $ | 57 | | | | $ | (7 | ) | | $ | (48 | ) | | | $ | (9 | ) | | $ | 228 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
88 First American Funds 2009 Annual Report
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| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
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Arizona Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.43 | | | | $ | 0.45 | | | | $ | (0.29 | ) | | | $ | 0.16 | | | | $ | (0.45 | ) | | | $ | — | | | | $ | (0.45 | ) | | | $ | 10.14 | | | |
20081 | | | 10.79 | | | | | 0.45 | | | | | (0.33 | ) | | | | 0.12 | | | | | (0.45 | ) | | | | (0.03 | ) | | | | (0.48 | ) | | | | 10.43 | | | |
20071 | | | 10.85 | | | | | 0.46 | | | | | (0.01 | ) | | | | 0.45 | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.51 | ) | | | | 10.79 | | | |
20062 | | | 11.19 | | | | | 0.33 | | | | | (0.25 | ) | | | | 0.08 | | | | | (0.33 | ) | | | | (0.09 | ) | | | | (0.42 | ) | | | | 10.85 | | | |
20053 | | | 11.42 | | | | | 0.46 | | | | | (0.07 | ) | | | | 0.39 | | | | | (0.49 | ) | | | | (0.13 | ) | | | | (0.62 | ) | | | | 11.19 | | | |
20043 | | | 11.33 | | | | | 0.49 | | | | | 0.12 | | | | | 0.61 | | | | | (0.47 | ) | | | | (0.05 | ) | | | | (0.52 | ) | | | | 11.42 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.41 | | | | $ | 0.41 | | | | $ | (0.29 | ) | | | $ | 0.12 | | | | $ | (0.41 | ) | | | $ | — | | | | $ | (0.41 | ) | | | $ | 10.12 | | | |
20081 | | | 10.78 | | | | | 0.41 | | | | | (0.34 | ) | | | | 0.07 | | | | | (0.41 | ) | | | | (0.03 | ) | | | | (0.44 | ) | | | | 10.41 | | | |
20071 | | | 10.84 | | | | | 0.41 | | | | | (0.01 | ) | | | | 0.40 | | | | | (0.40 | ) | | | | (0.06 | ) | | | | (0.46 | ) | | | | 10.78 | | | |
20062 | | | 11.18 | | | | | 0.30 | | | | | (0.25 | ) | | | | 0.05 | | | | | (0.30 | ) | | | | (0.09 | ) | | | | (0.39 | ) | | | | 10.84 | | | |
20053 | | | 11.41 | | | | | 0.42 | | | | | (0.08 | ) | | | | 0.34 | | | | | (0.44 | ) | | | | (0.13 | ) | | | | (0.57 | ) | | | | 11.18 | | | |
20043 | | | 11.31 | | | | | 0.43 | | | | | 0.14 | | | | | 0.57 | | | | | (0.42 | ) | | | | (0.05 | ) | | | | (0.47 | ) | | | | 11.41 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.43 | | | | $ | 0.47 | | | | $ | (0.28 | ) | | | $ | 0.19 | | | | $ | (0.48 | ) | | | $ | — | | | | $ | (0.48 | ) | | | $ | 10.14 | | | |
20081 | | | 10.80 | | | | | 0.47 | | | | | (0.33 | ) | | | | 0.14 | | | | | (0.48 | ) | | | | (0.03 | ) | | | | (0.51 | ) | | | | 10.43 | | | |
20071 | | | 10.85 | | | | | 0.48 | | | | | — | | | | | 0.48 | | | | | (0.47 | ) | | | | (0.06 | ) | | | | (0.53 | ) | | | | 10.80 | | | |
20062 | | | 11.19 | | | | | 0.35 | | | | | (0.25 | ) | | | | 0.10 | | | | | (0.35 | ) | | | | (0.09 | ) | | | | (0.44 | ) | | | | 10.85 | | | |
20053 | | | 11.43 | | | | | 0.50 | | | | | (0.09 | ) | | | | 0.41 | | | | | (0.52 | ) | | | | (0.13 | ) | | | | (0.65 | ) | | | | 11.19 | | | |
20043 | | | 11.33 | | | | | 0.50 | | | | | 0.15 | | | | | 0.65 | | | | | (0.50 | ) | | | | (0.05 | ) | | | | (0.55 | ) | | | | 11.43 | | | |
| |
| |
California Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.71 | | | | $ | 0.46 | | | | $ | (0.44 | ) | | | $ | 0.02 | | | | $ | (0.46 | ) | | | $ | — | | | | $ | (0.46 | ) | | | $ | 10.27 | | | |
20081 | | | 10.98 | | | | | 0.46 | | | | | (0.23 | ) | | | | 0.23 | | | | | (0.46 | ) | | | | (0.04 | ) | | | | (0.50 | ) | | | | 10.71 | | | |
20071 | | | 10.96 | | | | | 0.45 | | | | | 0.06 | | | | | 0.51 | | | | | (0.45 | ) | | | | (0.04 | ) | | | | (0.49 | ) | | | | 10.98 | | | |
20062 | | | 11.24 | | | | | 0.33 | | | | | (0.26 | ) | | | | 0.07 | | | | | (0.33 | ) | | | | (0.02 | ) | | | | (0.35 | ) | | | | 10.96 | | | |
20053 | | | 11.40 | | | | | 0.44 | | | | | (0.05 | ) | | | | 0.39 | | | | | (0.44 | ) | | | | (0.11 | ) | | | | (0.55 | ) | | | | 11.24 | | | |
20043 | | | 11.40 | | | | | 0.46 | | | | | 0.08 | | | | | 0.54 | | | | | (0.46 | ) | | | | (0.08 | ) | | | | (0.54 | ) | | | | 11.40 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.72 | | | | $ | 0.41 | | | | $ | (0.44 | ) | | | $ | (0.03 | ) | | | $ | (0.41 | ) | | | $ | — | | | | $ | (0.41 | ) | | | $ | 10.28 | | | |
20081 | | | 10.99 | | | | | 0.40 | | | | | (0.22 | ) | | | | 0.18 | | | | | (0.41 | ) | | | | (0.04 | ) | | | | (0.45 | ) | | | | 10.72 | | | |
20071 | | | 10.97 | | | | | 0.41 | | | | | 0.05 | | | | | 0.46 | | | | | (0.40 | ) | | | | (0.04 | ) | | | | (0.44 | ) | | | | 10.99 | | | |
20062 | | | 11.25 | | | | | 0.30 | | | | | (0.26 | ) | | | | 0.04 | | | | | (0.30 | ) | | | | (0.02 | ) | | | | (0.32 | ) | | | | 10.97 | | | |
20053 | | | 11.41 | | | | | 0.40 | | | | | (0.05 | ) | | | | 0.35 | | | | | (0.40 | ) | | | | (0.11 | ) | | | | (0.51 | ) | | | | 11.25 | | | |
20043 | | | 11.41 | | | | | 0.41 | | | | | 0.09 | | | | | 0.50 | | | | | (0.42 | ) | | | | (0.08 | ) | | | | (0.50 | ) | | | | 11.41 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.71 | | | | $ | 0.48 | | | | $ | (0.45 | ) | | | $ | 0.03 | | | | $ | (0.47 | ) | | | $ | — | | | | $ | (0.47 | ) | | | $ | 10.27 | | | |
20081 | | | 10.98 | | | | | 0.48 | | | | | (0.23 | ) | | | | 0.25 | | | | | (0.48 | ) | | | | (0.04 | ) | | | | (0.52 | ) | | | | 10.71 | | | |
20071 | | | 10.97 | | | | | 0.47 | | | | | 0.05 | | | | | 0.52 | | | | | (0.47 | ) | | | | (0.04 | ) | | | | (0.51 | ) | | | | 10.98 | | | |
20062 | | | 11.25 | | | | | 0.35 | | | | | (0.26 | ) | | | | 0.09 | | | | | (0.35 | ) | | | | (0.02 | ) | | | | (0.37 | ) | | | | 10.97 | | | |
20053 | | | 11.40 | | | | | 0.47 | | | | | (0.04 | ) | | | | 0.43 | | | | | (0.47 | ) | | | | (0.11 | ) | | | | (0.58 | ) | | | | 11.25 | | | |
20043 | | | 11.40 | | | | | 0.48 | | | | | 0.09 | | | | | 0.57 | | | | | (0.49 | ) | | | | (0.08 | ) | | | | (0.57 | ) | | | | 11.40 | | | |
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| | |
| | 1 | For the period July 1 to June 30 in the fiscal year indicated. |
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| | 2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
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| | 3 | For the period October 1 to September 30 in the fiscal year indicated. |
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| | 4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
90 First American Funds 2009 Annual Report
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| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return4 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.75 | % | | | $ | 6,410 | | | | | 0.75 | % | | | | 4.51 | % | | | | 1.76 | % | | | | 3.50 | % | | | | 18 | % | | |
| | | | 1.10 | | | | | 6,705 | | | | | 0.75 | | | | | 4.20 | | | | | 1.63 | | | | | 3.32 | | | | | 30 | | | |
| | | | 4.12 | | | | | 8,359 | | | | | 0.75 | | | | | 4.11 | | | | | 1.64 | | | | | 3.22 | | | | | 25 | | | |
| | | | 0.73 | | | | | 9,041 | | | | | 0.75 | | | | | 4.02 | | | | | 1.47 | | | | | 3.30 | | | | | 47 | | | |
| | | | 3.49 | | | | | 9,547 | | | | | 0.75 | | | | | 4.14 | | | | | 1.18 | | | | | 3.71 | | | | | 20 | | | |
| | | | 5.50 | | | | | 9,008 | | | | | 0.75 | | | | | 4.16 | | | | | 1.12 | | | | | 3.79 | | | | | 21 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.35 | % | | | $ | 1,462 | | | | | 1.15 | % | | | | 4.11 | % | | | | 2.16 | % | | | | 3.10 | % | | | | 18 | % | | |
| | | | 0.61 | | | | | 1,376 | | | | | 1.15 | | | | | 3.79 | | | | | 2.03 | | | | | 2.91 | | | | | 30 | | | |
| | | | 3.71 | | | | | 1,541 | | | | | 1.15 | | | | | 3.70 | | | | | 2.12 | | | | | 2.73 | | | | | 25 | | | |
| | | | 0.42 | | | | | 1,358 | | | | | 1.15 | | | | | 3.62 | | | | | 2.22 | | | | | 2.55 | | | | | 47 | | | |
| | | | 3.08 | | | | | 1,628 | | | | | 1.15 | | | | | 3.74 | | | | | 1.93 | | | | | 2.96 | | | | | 20 | | | |
| | | | 5.17 | | | | | 1,588 | | | | | 1.15 | | | | | 3.76 | | | | | 1.87 | | | | | 3.04 | | | | | 21 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.00 | % | | | $ | 14,368 | | | | | 0.50 | % | | | | 4.75 | % | | | | 1.51 | % | | | | 3.74 | % | | | | 18 | % | | |
| | | | 1.26 | | | | | 17,522 | | | | | 0.50 | | | | | 4.45 | | | | | 1.38 | | | | | 3.57 | | | | | 30 | | | |
| | | | 4.48 | | | | | 19,329 | | | | | 0.50 | | | | | 4.36 | | | | | 1.39 | | | | | 3.47 | | | | | 25 | | | |
| | | | 0.92 | | | | | 15,614 | | | | | 0.50 | | | | | 4.27 | | | | | 1.22 | | | | | 3.55 | | | | | 47 | | | |
| | | | 3.65 | | | | | 14,035 | | | | | 0.50 | | | | | 4.39 | | | | | 0.93 | | | | | 3.96 | | | | | 20 | | | |
| | | | 5.85 | | | | | 9,520 | | | | | 0.50 | | | | | 4.42 | | | | | 0.87 | | | | | 4.05 | | | | | 21 | | | |
| |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.29 | % | | | $ | 16,417 | | | | | 0.65 | % | | | | 4.51 | % | | | | 1.28 | % | | | | 3.88 | % | | | | 27 | % | | |
| | | | 2.11 | | | | | 12,076 | | | | | 0.67 | | | | | 4.19 | | | | | 1.46 | | | | | 3.40 | | | | | 45 | | | |
| | | | 4.62 | | | | | 11,375 | | | | | 0.75 | | | | | 4.00 | | | | | 1.46 | | | | | 3.29 | | | | | 36 | | | |
| | | | 0.63 | | | | | 10,783 | | | | | 0.75 | | | | | 3.99 | | | | | 1.34 | | | | | 3.40 | | | | | 24 | | | |
| | | | 3.50 | | | | | 11,888 | | | | | 0.75 | | | | | 3.88 | | | | | 1.15 | | | | | 3.48 | | | | | 14 | | | |
| | | | 4.93 | | | | | 9,513 | | | | | 0.75 | | | | | 4.03 | | | | | 1.09 | | | | | 3.69 | | | | | 16 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.21 | )% | | | $ | 4,064 | | | | | 1.15 | % | | | | 4.01 | % | | | | 1.68 | % | | | | 3.48 | % | | | | 27 | % | | |
| | | | 1.61 | | | | | 2,480 | | | | | 1.15 | | | | | 3.68 | | | | | 1.85 | | | | | 2.98 | | | | | 45 | | | |
| | | | 4.17 | | | | | 1,507 | | | | | 1.15 | | | | | 3.60 | | | | | 1.98 | | | | | 2.77 | | | | | 36 | | | |
| | | | 0.33 | | | | | 3,592 | | | | | 1.15 | | | | | 3.60 | | | | | 2.09 | | | | | 2.66 | | | | | 24 | | | |
| | | | 3.11 | | | | | 3,068 | | | | | 1.15 | | | | | 3.47 | | | | | 1.90 | | | | | 2.72 | | | | | 14 | | | |
| | | | 4.52 | | | | | 1,294 | | | | | 1.15 | | | | | 3.65 | | | | | 1.84 | | | | | 2.96 | | | | | 16 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.44 | % | | | $ | 77,616 | | | | | 0.50 | % | | | | 4.62 | % | | | | 1.03 | % | | | | 4.09 | % | | | | 27 | % | | |
| | | | 2.28 | | | | | 30,485 | | | | | 0.50 | | | | | 4.36 | | | | | 1.20 | | | | | 3.66 | | | | | 45 | | | |
| | | | 4.78 | | | | | 24,835 | | | | | 0.50 | | | | | 4.25 | | | | | 1.21 | | | | | 3.54 | | | | | 36 | | | |
| | | | 0.82 | | | | | 21,767 | | | | | 0.50 | | | | | 4.24 | | | | | 1.09 | | | | | 3.65 | | | | | 24 | | | |
| | | | 3.85 | | | | | 19,556 | | | | | 0.50 | | | | | 4.12 | | | | | 0.90 | | | | | 3.72 | | | | | 14 | | | |
| | | | 5.19 | | | | | 16,047 | | | | | 0.50 | | | | | 4.29 | | | | | 0.84 | | | | | 3.95 | | | | | 16 | | | |
| |
| |
First American Funds 2009 Annual Report 91
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| �� | | Total from
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
| |
Colorado Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.28 | | | | $ | 0.41 | | | | $ | (0.56 | ) | | | $ | (0.15 | ) | | | $ | (0.45 | ) | | | $ | (0.08 | ) | | | $ | (0.53 | ) | | | $ | 9.60 | | | |
20081 | | | 10.61 | | | | | 0.48 | | | | | (0.33 | ) | | | | 0.15 | | | | | (0.45 | ) | | | | (0.03 | ) | | | | (0.48 | ) | | | | 10.28 | | | |
20071 | | | 10.73 | | | | | 0.46 | | | | | (0.02 | ) | | | | 0.44 | | | | | (0.48 | ) | | | | (0.08 | ) | | | | (0.56 | ) | | | | 10.61 | | | |
20062 | | | 11.30 | | | | | 0.35 | | | | | (0.26 | ) | | | | 0.09 | | | | | (0.34 | ) | | | | (0.32 | ) | | | | (0.66 | ) | | | | 10.73 | | | |
20053 | | | 11.52 | | | | | 0.49 | | | | | (0.11 | ) | | | | 0.38 | | | | | (0.51 | ) | | | | (0.09 | ) | | | | (0.60 | ) | | | | 11.30 | | | |
20043 | | | 11.57 | | | | | 0.51 | | | | | 0.02 | | | | | 0.53 | | | | | (0.50 | ) | | | | (0.08 | ) | | | | (0.58 | ) | | | | 11.52 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.26 | | | | $ | 0.41 | | | | $ | (0.61 | ) | | | $ | (0.20 | ) | | | $ | (0.41 | ) | | | $ | (0.08 | ) | | | $ | (0.49 | ) | | | $ | 9.57 | | | |
20081 | | | 10.59 | | | | | 0.42 | | | | | (0.31 | ) | | | | 0.11 | | | | | (0.41 | ) | | | | (0.03 | ) | | | | (0.44 | ) | | | | 10.26 | | | |
20071 | | | 10.71 | | | | | 0.42 | | | | | (0.02 | ) | | | | 0.40 | | | | | (0.44 | ) | | | | (0.08 | ) | | | | (0.52 | ) | | | | 10.59 | | | |
20062 | | | 11.28 | | | | | 0.32 | | | | | (0.27 | ) | | | | 0.05 | | | | | (0.30 | ) | | | | (0.32 | ) | | | | (0.62 | ) | | | | 10.71 | | | |
20053 | | | 11.50 | | | | | 0.43 | | | | | (0.10 | ) | | | | 0.33 | | | | | (0.46 | ) | | | | (0.09 | ) | | | | (0.55 | ) | | | | 11.28 | | | |
20043 | | | 11.56 | | | | | 0.44 | | | | | 0.03 | | | | | 0.47 | | | | | (0.45 | ) | | | | (0.08 | ) | | | | (0.53 | ) | | | | 11.50 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.29 | | | | $ | 0.44 | | | | $ | (0.58 | ) | | | $ | (0.14 | ) | | | $ | (0.45 | ) | | | $ | (0.08 | ) | | | $ | (0.53 | ) | | | $ | 9.62 | | | |
20081 | | | 10.63 | | | | | 0.49 | | | | | (0.32 | ) | | | | 0.17 | | | | | (0.48 | ) | | | | (0.03 | ) | | | | (0.51 | ) | | | | 10.29 | | | |
20071 | | | 10.75 | | | | | 0.50 | | | | | (0.03 | ) | | | | 0.47 | | | | | (0.51 | ) | | | | (0.08 | ) | | | | (0.59 | ) | | | | 10.63 | | | |
20062 | | | 11.32 | | | | | 0.37 | | | | | (0.26 | ) | | | | 0.11 | | | | | (0.36 | ) | | | | (0.32 | ) | | | | (0.68 | ) | | | | 10.75 | | | |
20053 | | | 11.53 | | | | | 0.51 | | | | | (0.09 | ) | | | | 0.42 | | | | | (0.54 | ) | | | | (0.09 | ) | | | | (0.63 | ) | | | | 11.32 | | | |
20043 | | | 11.59 | | | | | 0.52 | | | | | 0.03 | | | | | 0.55 | | | | | (0.53 | ) | | | | (0.08 | ) | | | | (0.61 | ) | | | | 11.53 | | | |
| |
| |
Intermediate Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.51 | | | | $ | 0.45 | | | | $ | (0.03 | ) | | | $ | 0.42 | | | | $ | (0.46 | ) | | | $ | (0.01 | ) | | | $ | (0.47 | ) | | | $ | 10.46 | | | |
20081 | | | 10.63 | | | | | 0.44 | | | | | (0.09 | ) | | | | 0.35 | | | | | (0.43 | ) | | | | (0.04 | ) | | | | (0.47 | ) | | | | 10.51 | | | |
20071 | | | 10.63 | | | | | 0.44 | | | | | 0.01 | | | | | 0.45 | | | | | (0.44 | ) | | | | (0.01 | ) | | | | (0.45 | ) | | | | 10.63 | | | |
20062 | | | 10.92 | | | | | 0.32 | | | | | (0.26 | ) | | | | 0.06 | | | | | (0.32 | ) | | | | (0.03 | ) | | | | (0.35 | ) | | | | 10.63 | | | |
20053 | | | 11.18 | | | | | 0.44 | | | | | (0.19 | ) | | | | 0.25 | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.51 | ) | | | | 10.92 | | | |
20043 | | | 11.30 | | | | | 0.44 | | | | | (0.10 | ) | | | | 0.34 | | | | | (0.45 | ) | | | | (0.01 | ) | | | | (0.46 | ) | | | | 11.18 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.49 | | | | $ | 0.45 | | | | $ | (0.04 | ) | | | $ | 0.41 | | | | $ | (0.46 | ) | | | $ | (0.01 | ) | | | $ | (0.47 | ) | | | $ | 10.43 | | | |
20081 | | | 10.61 | | | | | 0.44 | | | | | (0.08 | ) | | | | 0.36 | | | | | (0.44 | ) | | | | (0.04 | ) | | | | (0.48 | ) | | | | 10.49 | | | |
20071 | | | 10.61 | | | | | 0.45 | | | | | 0.01 | | | | | 0.46 | | | | | (0.45 | ) | | | | (0.01 | ) | | | | (0.46 | ) | | | | 10.61 | | | |
20062 | | | 10.90 | | | | | 0.33 | | | | | (0.26 | ) | | | | 0.07 | | | | | (0.33 | ) | | | | (0.03 | ) | | | | (0.36 | ) | | | | 10.61 | | | |
20053 | | | 11.16 | | | | | 0.46 | | | | | (0.19 | ) | | | | 0.27 | | | | | (0.47 | ) | | | | (0.06 | ) | | | | (0.53 | ) | | | | 10.90 | | | |
20043 | | | 11.28 | | | | | 0.46 | | | | | (0.11 | ) | | | | 0.35 | | | | | (0.46 | ) | | | | (0.01 | ) | | | | (0.47 | ) | | | | 11.16 | | | |
| |
| |
| | |
| | 1 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 3 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
92 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return4 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.20 | )% | | | $ | 11,088 | | | | | 0.75 | % | | | | 4.58 | % | | | | 1.45 | % | | | | 3.88 | % | | | | 41 | % | | |
| | | | 1.52 | | | | | 5,815 | | | | | 0.75 | | | | | 4.40 | | | | | 1.80 | | | | | 3.35 | | | | | 49 | | | |
| | | | 4.13 | | | | | 8,788 | | | | | 0.75 | | | | | 4.27 | | | | | 1.75 | | | | | 3.27 | | | | | 47 | | | |
| | | | 0.77 | | | | | 8,507 | | | | | 0.75 | | | | | 4.30 | | | | | 1.52 | | | | | 3.53 | | | | | 35 | | | |
| | | | 3.36 | | | | | 8,362 | | | | | 0.75 | | | | | 4.23 | | | | | 1.18 | | | | | 3.80 | | | | | 30 | | | |
| | | | 4.71 | | | | | 10,598 | | | | | 0.75 | | | | | 4.25 | | | | | 1.09 | | | | | 3.91 | | | | | 12 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.70 | )% | | | $ | 2,891 | | | | | 1.15 | % | | | | 4.19 | % | | | | 1.85 | % | | | | 3.49 | % | | | | 41 | % | | |
| | | | 1.12 | | | | | 2,859 | | | | | 1.15 | | | | | 3.98 | | | | | 2.20 | | | | | 2.93 | | | | | 49 | | | |
| | | | 3.72 | | | | | 2,888 | | | | | 1.15 | | | | | 3.87 | | | | | 2.24 | | | | | 2.78 | | | | | 47 | | | |
| | | | 0.47 | | | | | 3,007 | | | | | 1.15 | | | | | 3.90 | | | | | 2.27 | | | | | 2.78 | | | | | 35 | | | |
| | | | 2.95 | | | | | 3,423 | | | | | 1.15 | | | | | 3.83 | | | | | 1.93 | | | | | 3.05 | | | | | 30 | | | |
| | | | 4.21 | | | | | 3,787 | | | | | 1.15 | | | | | 3.85 | | | | | 1.84 | | | | | 3.16 | | | | | 12 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.85 | )% | | | $ | 51,521 | | | | | 0.50 | % | | | | 4.81 | % | | | | 1.20 | % | | | | 4.11 | % | | | | 41 | % | | |
| | | | 1.67 | | | | | 15,889 | | | | | 0.50 | | | | | 4.63 | | | | | 1.55 | | | | | 3.58 | | | | | 49 | | | |
| | | | 4.39 | | | | | 13,477 | | | | | 0.50 | | | | | 4.51 | | | | | 1.50 | | | | | 3.51 | | | | | 47 | | | |
| | | | 0.96 | | | | | 10,181 | | | | | 0.50 | | | | | 4.58 | | | | | 1.27 | | | | | 3.81 | | | | | 35 | | | |
| | | | 3.70 | | | | | 8,363 | | | | | 0.50 | | | | | 4.48 | | | | | 0.93 | | | | | 4.05 | | | | | 30 | | | |
| | | | 4.87 | | | | | 9,439 | | | | | 0.50 | | | | | 4.51 | | | | | 0.84 | | | | | 4.17 | | | | | 12 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.09 | % | | | $ | 35,017 | | | | | 0.75 | % | | | | 4.29 | % | | | | 1.02 | % | | | | 4.02 | % | | | | 13 | % | | |
| | | | 3.33 | | | | | 27,554 | | | | | 0.77 | | | | | 4.10 | | | | | 1.02 | | | | | 3.85 | | | | | 19 | | | |
| | | | 4.27 | | | | | 29,687 | | | | | 0.85 | | | | | 4.08 | | | | | 1.02 | | | | | 3.91 | | | | | 27 | | | |
| | | | 0.56 | | | | | 32,521 | | | | | 0.85 | | | | | 3.95 | | | | | 1.05 | | | | | 3.75 | | | | | 15 | | | |
| | | | 2.31 | | | | | 34,658 | | | | | 0.85 | | | | | 3.98 | | | | | 1.05 | | | | | 3.78 | | | | | 15 | | | |
| | | | 3.06 | | | | | 35,276 | | | | | 0.85 | | | | | 3.98 | | | | | 1.05 | | | | | 3.78 | | | | | 10 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.05 | % | | | $ | 642,395 | | | | | 0.70 | % | | | | 4.34 | % | | | | 0.77 | % | | | | 4.27 | % | | | | 13 | % | | |
| | | | 3.41 | | | | | 630,820 | | | | | 0.70 | | | | | 4.17 | | | | | 0.77 | | | | | 4.10 | | | | | 19 | | | |
| | | | 4.43 | | | | | 554,618 | | | | | 0.70 | | | | | 4.23 | | | | | 0.77 | | | | | 4.16 | | | | | 27 | | | |
| | | | 0.67 | | | | | 596,306 | | | | | 0.70 | | | | | 4.10 | | | | | 0.80 | | | | | 4.00 | | | | | 15 | | | |
| | | | 2.47 | | | | | 641,141 | | | | | 0.70 | | | | | 4.13 | | | | | 0.80 | | | | | 4.03 | | | | | 15 | | | |
| | | | 3.22 | | | | | 637,361 | | | | | 0.70 | | | | | 4.13 | | | | | 0.80 | | | | | 4.03 | | | | | 10 | | | |
| |
| |
First American Funds 2009 Annual Report 93
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
| |
Minnesota
Intermediate Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.75 | | | | $ | 0.38 | | | | $ | (0.05 | ) | | | $ | 0.33 | | | | $ | (0.38 | ) | | | $ | (0.03 | ) | | | $ | (0.41 | ) | | | $ | 9.67 | | | |
20081 | | | 9.83 | | | | | 0.39 | | | | | (0.05 | ) | | | | 0.34 | | | | | (0.39 | ) | | | | (0.03 | ) | | | | (0.42 | ) | | | | 9.75 | | | |
20071 | | | 9.88 | | | | | 0.39 | | | | | (0.01 | ) | | | | 0.38 | | | | | (0.38 | ) | | | | (0.05 | ) | | | | (0.43 | ) | | | | 9.83 | | | |
20062 | | | 10.16 | | | | | 0.29 | | | | | (0.22 | ) | | | | 0.07 | | | | | (0.29 | ) | | | | (0.06 | ) | | | | (0.35 | ) | | | | 9.88 | | | |
20053 | | | 10.34 | | | | | 0.39 | | | | | (0.15 | ) | | | | 0.24 | | | | | (0.39 | ) | | | | (0.03 | ) | | | | (0.42 | ) | | | | 10.16 | | | |
20043 | | | 10.44 | | | | | 0.39 | | | | | (0.08 | ) | | | | 0.31 | | | | | (0.39 | ) | | | | (0.02 | ) | | | | (0.41 | ) | | | | 10.34 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.69 | | | | $ | 0.39 | | | | $ | (0.04 | ) | | | $ | 0.35 | | | | $ | (0.39 | ) | | | $ | (0.03 | ) | | | $ | (0.42 | ) | | | $ | 9.62 | | | |
20081 | | | 9.78 | | | | | 0.39 | | | | | (0.05 | ) | | | | 0.34 | | | | | (0.40 | ) | | | | (0.03 | ) | | | | (0.43 | ) | | | | 9.69 | | | |
20071 | | | 9.83 | | | | | 0.40 | | | | | — | | | | | 0.40 | | | | | (0.40 | ) | | | | (0.05 | ) | | | | (0.45 | ) | | | | 9.78 | | | |
20062 | | | 10.11 | | | | | 0.30 | | | | | (0.22 | ) | | | | 0.08 | | | | | (0.30 | ) | | | | (0.06 | ) | | | | (0.36 | ) | | | | 9.83 | | | |
20053 | | | 10.29 | | | | | 0.40 | | | | | (0.15 | ) | | | | 0.25 | | | | | (0.40 | ) | | | | (0.03 | ) | | | | (0.43 | ) | | | | 10.11 | | | |
20043 | | | 10.40 | | | | | 0.41 | | | | | (0.10 | ) | | | | 0.31 | | | | | (0.40 | ) | | | | (0.02 | ) | | | | (0.42 | ) | | | | 10.29 | | | |
| |
| |
Minnesota Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.48 | | | | $ | 0.43 | | | | $ | (0.44 | ) | | | $ | (0.01 | ) | | | $ | (0.43 | ) | | | $ | (0.06 | ) | | | $ | (0.49 | ) | | | $ | 9.98 | | | |
20081 | | | 10.93 | | | | | 0.44 | | | | | (0.38 | ) | | | | 0.06 | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.51 | ) | | | | 10.48 | | | |
20071 | | | 10.97 | | | | | 0.46 | | | | | (0.02 | ) | | | | 0.44 | | | | | (0.45 | ) | | | | (0.03 | ) | | | | (0.48 | ) | | | | 10.93 | | | |
20062 | | | 11.21 | | | | | 0.35 | | | | | (0.21 | ) | | | | 0.14 | | | | | (0.35 | ) | | | | (0.03 | ) | | | | (0.38 | ) | | | | 10.97 | | | |
20053 | | | 11.23 | | | | | 0.45 | | | | | 0.03 | | | | | 0.48 | | | | | (0.45 | ) | | | | (0.05 | ) | | | | (0.50 | ) | | | | 11.21 | | | |
20043 | | | 11.34 | | | | | 0.44 | | | | | (0.01 | ) | | | | 0.43 | | | | | (0.45 | ) | | | | (0.09 | ) | | | | (0.54 | ) | | | | 11.23 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.44 | | | | $ | 0.38 | | | | $ | (0.44 | ) | | | $ | (0.06 | ) | | | $ | (0.38 | ) | | | $ | (0.06 | ) | | | $ | (0.44 | ) | | | $ | 9.94 | | | |
20081 | | | 10.89 | | | | | 0.40 | | | | | (0.39 | ) | | | | 0.01 | | | | | (0.40 | ) | | | | (0.06 | ) | | | | (0.46 | ) | | | | 10.44 | | | |
20071 | | | 10.93 | | | | | 0.42 | | | | | (0.02 | ) | | | | 0.40 | | | | | (0.41 | ) | | | | (0.03 | ) | | | | (0.44 | ) | | | | 10.89 | | | |
20062 | | | 11.17 | | | | | 0.31 | | | | | (0.20 | ) | | | | 0.11 | | | | | (0.32 | ) | | | | (0.03 | ) | | | | (0.35 | ) | | | | 10.93 | | | |
20053 | | | 11.19 | | | | | 0.41 | | | | | 0.03 | | | | | 0.44 | | | | | (0.41 | ) | | | | (0.05 | ) | | | | (0.46 | ) | | | | 11.17 | | | |
20043 | | | 11.31 | | | | | 0.39 | | | | | (0.01 | ) | | | | 0.38 | | | | | (0.41 | ) | | | | (0.09 | ) | | | | (0.50 | ) | | | | 11.19 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.47 | | | | $ | 0.44 | | | | $ | (0.44 | ) | | | $ | — | | | | $ | (0.44 | ) | | | $ | (0.06 | ) | | | $ | (0.50 | ) | | | $ | 9.97 | | | |
20081 | | | 10.92 | | | | | 0.46 | | | | | (0.38 | ) | | | | 0.08 | | | | | (0.47 | ) | | | | (0.06 | ) | | | | (0.53 | ) | | | | 10.47 | | | |
20071 | | | 10.96 | | | | | 0.48 | | | | | (0.01 | ) | | | | 0.47 | | | | | (0.48 | ) | | | | (0.03 | ) | | | | (0.51 | ) | | | | 10.92 | | | |
20062 | | | 11.20 | | | | | 0.36 | | | | | (0.20 | ) | | | | 0.16 | | | | | (0.37 | ) | | | | (0.03 | ) | | | | (0.40 | ) | | | | 10.96 | | | |
20053 | | | 11.22 | | | | | 0.48 | | | | | 0.03 | | | | | 0.51 | | | | | (0.48 | ) | | | | (0.05 | ) | | | | (0.53 | ) | | | | 11.20 | | | |
20043 | | | 11.33 | | | | | 0.47 | | | | | (0.01 | ) | | | | 0.46 | | | | | (0.48 | ) | | | | (0.09 | ) | | | | (0.57 | ) | | | | 11.22 | | | |
| |
| |
Missouri Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 11.40 | | | | $ | 0.47 | | | | $ | (0.26 | ) | | | $ | 0.21 | | | | $ | (0.47 | ) | | | $ | (0.03 | ) | | | $ | (0.50 | ) | | | $ | 11.11 | | | |
20081 | | | 11.72 | | | | | 0.46 | | | | | (0.29 | ) | | | | 0.17 | | | | �� | (0.46 | ) | | | | (0.03 | ) | | | | (0.49 | ) | | | | 11.40 | | | |
20071 | | | 11.76 | | | | | 0.45 | | | | | 0.05 | | | | | 0.50 | | | | | (0.45 | ) | | | | (0.09 | ) | | | | (0.54 | ) | | | | 11.72 | | | |
20062 | | | 12.14 | | | | | 0.34 | | | | | (0.29 | ) | | | | 0.05 | | | | | (0.34 | ) | | | | (0.09 | ) | | | | (0.43 | ) | | | | 11.76 | | | |
20053 | | | 12.32 | | | | | 0.45 | | | | | (0.12 | ) | | | | 0.33 | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.51 | ) | | | | 12.14 | | | |
20043 | | | 12.37 | | | | | 0.45 | | | | | (0.02 | ) | | | | 0.43 | | | | | (0.45 | ) | | | | (0.03 | ) | | | | (0.48 | ) | | | | 12.32 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 11.36 | | | | $ | 0.43 | | | | $ | (0.25 | ) | | | $ | 0.18 | | | | $ | (0.43 | ) | | | $ | (0.03 | ) | | | $ | (0.46 | ) | | | $ | 11.08 | | | |
20081 | | | 11.69 | | | | | 0.41 | | | | | (0.30 | ) | | | | 0.11 | | | | | (0.41 | ) | | | | (0.03 | ) | | | | (0.44 | ) | | | | 11.36 | | | |
20071 | | | 11.73 | | | | | 0.41 | | | | | 0.04 | | | | | 0.45 | | | | | (0.40 | ) | | | | (0.09 | ) | | | | (0.49 | ) | | | | 11.69 | | | |
20062 | | | 12.12 | | | | | 0.30 | | | | | (0.30 | ) | | | | — | | | | | (0.30 | ) | | | | (0.09 | ) | | | | (0.39 | ) | | | | 11.73 | | | |
20053 | | | 12.29 | | | | | 0.40 | | | | | (0.11 | ) | | | | 0.29 | | | | | (0.40 | ) | | | | (0.06 | ) | | | | (0.46 | ) | | | | 12.12 | | | |
20043 | | | 12.35 | | | | | 0.40 | | | | | (0.03 | ) | | | | 0.37 | | | | | (0.40 | ) | | | | (0.03 | ) | | | | (0.43 | ) | | | | 12.29 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 11.40 | | | | $ | 0.49 | | | | $ | (0.24 | ) | | | $ | 0.25 | | | | $ | (0.50 | ) | | | $ | (0.03 | ) | | | $ | (0.53 | ) | | | $ | 11.12 | | | |
20081 | | | 11.73 | | | | | 0.48 | | | | | (0.30 | ) | | | | 0.18 | | | | | (0.48 | ) | | | | (0.03 | ) | | | | (0.51 | ) | | | | 11.40 | | | |
20071 | | | 11.76 | | | | | 0.48 | | | | | 0.06 | | | | | 0.54 | | | | | (0.48 | ) | | | | (0.09 | ) | | | | (0.57 | ) | | | | 11.73 | | | |
20062 | | | 12.15 | | | | | 0.36 | | | | | (0.30 | ) | | | | 0.06 | | | | | (0.36 | ) | | | | (0.09 | ) | | | | (0.45 | ) | | | | 11.76 | | | |
20053 | | | 12.32 | | | | | 0.48 | | | | | (0.11 | ) | | | | 0.37 | | | | | (0.48 | ) | | | | (0.06 | ) | | | | (0.54 | ) | | | | 12.15 | | | |
20043 | | | 12.38 | | | | | 0.48 | | | | | (0.03 | ) | | | | 0.45 | | | | | (0.48 | ) | | | | (0.03 | ) | | | | (0.51 | ) | | | | 12.32 | | | |
| |
| |
| | |
| | 1 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 3 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
94 First American Funds 2009 Annual Report
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| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return4 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3.53 | % | | | $ | 23,019 | | | | | 0.75 | % | | | | 4.00 | % | | | | 1.07 | % | | | | 3.68 | % | | | | 18 | % | | |
| | | | 3.53 | | | | | 22,059 | | | | | 0.77 | | | | | 3.95 | | | | | 1.07 | | | | | 3.65 | | | | | 15 | | | |
| | | | 3.87 | | | | | 21,153 | | | | | 0.85 | | | | | 3.86 | | | | | 1.07 | | | | | 3.64 | | | | | 18 | | | |
| | | | 0.74 | | | | | 26,526 | | | | | 0.85 | | | | | 3.85 | | | | | 1.08 | | | | | 3.62 | | | | | 11 | | | |
| | | | 2.33 | | | | | 32,326 | | | | | 0.85 | | | | | 3.78 | | | | | 1.06 | | | | | 3.57 | | | | | 15 | | | |
| | | | 3.03 | | | | | 35,047 | | | | | 0.85 | | | | | 3.77 | | | | | 1.05 | | | | | 3.57 | | | | | 8 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3.71 | % | | | $ | 172,440 | | | | | 0.70 | % | | | | 4.04 | % | | | | 0.82 | % | | | | 3.92 | % | | | | 18 | % | | |
| | | | 3.51 | | | | | 175,681 | | | | | 0.70 | | | | | 4.02 | | | | | 0.82 | | | | | 3.90 | | | | | 15 | | | |
| | | | 4.05 | | | | | 168,920 | | | | | 0.70 | | | | | 4.01 | | | | | 0.82 | | | | | 3.89 | | | | | 18 | | | |
| | | | 0.85 | | | | | 175,485 | | | | | 0.70 | | | | | 4.00 | | | | | 0.83 | | | | | 3.87 | | | | | 11 | | | |
| | | | 2.50 | | | | | 197,251 | | | | | 0.70 | | | | | 3.93 | | | | | 0.81 | | | | | 3.82 | | | | | 15 | | | |
| | | | 3.10 | | | | | 216,906 | | | | | 0.70 | | | | | 3.92 | | | | | 0.80 | | | | | 3.82 | | | | | 8 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.07 | % | | | $ | 87,218 | | | | | 0.85 | % | | | | 4.32 | % | | | | 1.11 | % | | | | 4.06 | % | | | | 28 | % | | |
| | | | 0.54 | | | | | 102,089 | | | | | 0.87 | | | | | 4.14 | | | | | 1.10 | | | | | 3.91 | | | | | 37 | | | |
| | | | 4.05 | | | | | 106,732 | | | | | 0.95 | | | | | 4.10 | | | | | 1.10 | | | | | 3.95 | | | | | 20 | | | |
| | | | 1.28 | | | | | 101,142 | | | | | 0.95 | | | | | 4.15 | | | | | 1.10 | | | | | 4.00 | | | | | 11 | | | |
| | | | 4.42 | | | | | 106,783 | | | | | 0.95 | | | | | 4.04 | | | | | 1.06 | | | | | 3.93 | | | | | 16 | | | |
| | | | 3.94 | | | | | 114,981 | | | | | 0.95 | | | | | 3.87 | | | | | 1.05 | | | | | 3.77 | | | | | 25 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.42 | )% | | | $ | 20,489 | | | | | 1.35 | % | | | | 3.82 | % | | | | 1.51 | % | | | | 3.66 | % | | | | 28 | % | | |
| | | | 0.06 | | | | | 20,061 | | | | | 1.35 | | | | | 3.63 | | | | | 1.50 | | | | | 3.48 | | | | | 37 | | | |
| | | | 3.65 | | | | | 14,221 | | | | | 1.35 | | | | | 3.69 | | | | | 1.58 | | | | | 3.46 | | | | | 20 | | | |
| | | | 0.98 | | | | | 10,359 | | | | | 1.35 | | | | | 3.75 | | | | | 1.85 | | | | | 3.25 | | | | | 11 | | | |
| | | | 4.02 | | | | | 9,841 | | | | | 1.35 | | | | | 3.64 | | | | | 1.81 | | | | | 3.18 | | | | | 16 | | | |
| | | | 3.45 | | | | | 10,387 | | | | | 1.35 | | | | | 3.47 | | | | | 1.80 | | | | | 3.02 | | | | | 25 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.23 | % | | | $ | 42,093 | | | | | 0.70 | % | | | | 4.47 | % | | | | 0.86 | % | | | | 4.31 | % | | | | 28 | % | | |
| | | | 0.71 | | | | | 44,993 | | | | | 0.70 | | | | | 4.32 | | | | | 0.85 | | | | | 4.17 | | | | | 37 | | | |
| | | | 4.31 | | | | | 56,181 | | | | | 0.70 | | | | | 4.35 | | | | | 0.85 | | | | | 4.20 | | | | | 20 | | | |
| | | | 1.47 | | | | | 48,760 | | | | | 0.70 | | | | | 4.40 | | | | | 0.85 | | | | | 4.25 | | | | | 11 | | | |
| | | | 4.69 | | | | | 46,471 | | | | | 0.70 | | | | | 4.29 | | | | | 0.81 | | | | | 4.18 | | | | | 16 | | | |
| | | | 4.20 | | | | | 42,900 | | | | | 0.70 | | | | | 4.12 | | | | | 0.80 | | | | | 4.02 | | | | | 25 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.01 | % | | | $ | 22,766 | | | | | 0.95 | % | | | | 4.25 | % | | | | 1.12 | % | | | | 4.08 | % | | | | 17 | % | | |
| | | | 1.44 | | | | | 23,135 | | | | | 0.95 | | | | | 3.92 | | | | | 1.10 | | | | | 3.77 | | | | | 20 | | | |
| | | | 4.23 | | | | | 24,945 | | | | | 0.95 | | | | | 3.78 | | | | | 1.10 | | | | | 3.63 | | | | | 33 | | | |
| | | | 0.38 | | | | | 26,972 | | | | | 0.95 | | | | | 3.74 | | | | | 1.09 | | | | | 3.60 | | | | | 20 | | | |
| | | | 2.74 | | | | | 30,188 | | | | | 0.95 | | | | | 3.65 | | | | | 1.06 | | | | | 3.54 | | | | | 19 | | | |
| | | | 3.60 | | | | | 27,114 | | | | | 0.95 | | | | | 3.68 | | | | | 1.05 | | | | | 3.58 | | | | | 15 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.70 | % | | | $ | 757 | | | | | 1.35 | % | | | | 3.85 | % | | | | 1.52 | % | | | | 3.68 | % | | | | 17 | % | | |
| | | | 0.95 | | | | | 406 | | | | | 1.35 | | | | | 3.53 | | | | | 1.50 | | | | | 3.38 | | | | | 20 | | | |
| | | | 3.84 | | | | | 518 | | | | | 1.35 | | | | | 3.35 | | | | | 1.57 | | | | | 3.13 | | | | | 33 | | | |
| | | | 0.00 | | | | | 214 | | | | | 1.35 | | | | | 3.34 | | | | | 1.84 | | | | | 2.85 | | | | | 20 | | | |
| | | | 2.42 | | | | | 190 | | | | | 1.35 | | | | | 3.25 | | | | | 1.81 | | | | | 2.79 | | | | | 19 | | | |
| | | | 3.11 | | | | | 218 | | | | | 1.35 | | | | | 3.28 | | | | | 1.80 | | | | | 2.83 | | | | | 15 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.36 | % | | | $ | 119,522 | | | | | 0.70 | % | | | | 4.49 | % | | | | 0.87 | % | | | | 4.32 | % | | | | 17 | % | | |
| | | | 1.60 | | | | | 137,746 | | | | | 0.70 | | | | | 4.17 | | | | | 0.85 | | | | | 4.02 | | | | | 20 | | | |
| | | | 4.58 | | | | | 130,644 | | | | | 0.70 | | | | | 4.03 | | | | | 0.85 | | | | | 3.88 | | | | | 33 | | | |
| | | | 0.49 | | | | | 138,394 | | | | | 0.70 | | | | | 3.99 | | | | | 0.84 | | | | | 3.85 | | | | | 20 | | | |
| | | | 3.08 | | | | | 151,710 | | | | | 0.70 | | | | | 3.90 | | | | | 0.81 | | | | | 3.79 | | | | | 19 | | | |
| | | | 3.77 | | | | | 152,676 | | | | | 0.70 | | | | | 3.93 | | | | | 0.80 | | | | | 3.83 | | | | | 15 | | | |
| |
| |
First American Funds 2009 Annual Report 95
Financial Highlights For a share outstanding throughout the indicated periods.
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
| |
Nebraska Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.06 | | | | $ | 0.43 | | | | $ | (0.21 | ) | | | $ | 0.22 | | | | $ | (0.44 | ) | | | $ | — | | | | $ | (0.44 | ) | | | $ | 9.84 | | | |
20081 | | | 10.30 | | | | | 0.42 | | | | | (0.20 | ) | | | | 0.22 | | | | | (0.41 | ) | | | | (0.05 | ) | | | | (0.46 | ) | | | | 10.06 | | | |
20071 | | | 10.33 | | | | | 0.42 | | | | | 0.02 | | | | | 0.44 | | | | | (0.42 | ) | | | | (0.05 | ) | | | | (0.47 | ) | | | | 10.30 | | | |
20062 | | | 10.58 | | | | | 0.31 | | | | | (0.24 | ) | | | | 0.07 | | | | | (0.30 | ) | | | | (0.02 | ) | | | | (0.32 | ) | | | | 10.33 | | | |
20053 | | | 10.66 | | | | | 0.39 | | | | | (0.05 | ) | | | | 0.34 | | | | | (0.42 | ) | | | | — | | | | | (0.42 | ) | | | | 10.58 | | | |
20043 | | | 10.66 | | | | | 0.41 | | | | | 0.03 | | | | | 0.44 | | | | | (0.40 | ) | | | | (0.04 | ) | | | | (0.44 | ) | | | | 10.66 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.99 | | | | $ | 0.39 | | | | $ | (0.22 | ) | | | $ | 0.17 | | | | $ | (0.40 | ) | | | $ | — | | | | $ | (0.40 | ) | | | $ | 9.76 | | | |
20081 | | | 10.23 | | | | | 0.38 | | | | | (0.20 | ) | | | | 0.18 | | | | | (0.37 | ) | | | | (0.05 | ) | | | | (0.42 | ) | | | | 9.99 | | | |
20071 | | | 10.26 | | | | | 0.37 | | | | | 0.02 | | | | | 0.39 | | | | | (0.37 | ) | | | | (0.05 | ) | | | | (0.42 | ) | | | | 10.23 | | | |
20062 | | | 10.50 | | | | | 0.27 | | | | | (0.22 | ) | | | | 0.05 | | | | | (0.27 | ) | | | | (0.02 | ) | | | | (0.29 | ) | | | | 10.26 | | | |
20053 | | | 10.58 | | | | | 0.35 | | | | | (0.06 | ) | | | | 0.29 | | | | | (0.37 | ) | | | | — | | | | | (0.37 | ) | | | | 10.50 | | | |
20043 | | | 10.58 | | | | | 0.35 | | | | | 0.04 | | | | | 0.39 | | | | | (0.35 | ) | | | | (0.04 | ) | | | | (0.39 | ) | | | | 10.58 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.06 | | | | $ | 0.45 | | | | $ | (0.22 | ) | | | $ | 0.23 | | | | $ | (0.46 | ) | | | $ | — | | | | $ | (0.46 | ) | | | $ | 9.83 | | | |
20081 | | | 10.30 | | | | | 0.44 | | | | | (0.19 | ) | | | | 0.25 | | | | | (0.44 | ) | | | | (0.05 | ) | | | | (0.49 | ) | | | | 10.06 | | | |
20071 | | | 10.33 | | | | | 0.44 | | | | | 0.02 | | | | | 0.46 | | | | | (0.44 | ) | | | | (0.05 | ) | | | | (0.49 | ) | | | | 10.30 | | | |
20062 | | | 10.58 | | | | | 0.32 | | | | | (0.23 | ) | | | | 0.09 | | | | | (0.32 | ) | | | | (0.02 | ) | | | | (0.34 | ) | | | | 10.33 | | | |
20053 | | | 10.66 | | | | | 0.43 | | | | | (0.07 | ) | | | | 0.36 | | | | | (0.44 | ) | | | | — | | | | | (0.44 | ) | | | | 10.58 | | | |
20043 | | | 10.65 | | | | | 0.43 | | | | | 0.04 | | | | | 0.47 | | | | | (0.42 | ) | | | | (0.04 | ) | | | | (0.46 | ) | | | | 10.66 | | | |
| |
| |
Ohio Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.02 | | | | $ | 0.40 | | | | $ | (0.12 | ) | | | $ | 0.28 | | | | $ | (0.40 | ) | | | $ | — | | | | $ | (0.40 | ) | | | $ | 9.90 | | | |
20081 | | | 10.20 | | | | | 0.39 | | | | | (0.15 | ) | | | | 0.24 | | | | | (0.39 | ) | | | | (0.03 | ) | | | | (0.42 | ) | | | | 10.02 | | | |
20071 | | | 10.17 | | | | | 0.38 | | | | | 0.05 | | | | | 0.43 | | | | | (0.38 | ) | | | | (0.02 | ) | | | | (0.40 | ) | | | | 10.20 | | | |
20062 | | | 10.42 | | | | | 0.29 | | | | | (0.25 | ) | | | | 0.04 | | | | | (0.28 | ) | | | | (0.01 | ) | | | | (0.29 | ) | | | | 10.17 | | | |
20053 | | | 10.52 | | | | | 0.36 | | | | | (0.06 | ) | | | | 0.30 | | | | | (0.36 | ) | | | | (0.04 | ) | | | | (0.40 | ) | | | | 10.42 | | | |
20043 | | | 10.54 | | | | | 0.36 | | | | | 0.07 | | | | | 0.43 | | | | | (0.35 | ) | | | | (0.10 | ) | | | | (0.45 | ) | | | | 10.52 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.89 | | | | $ | 0.37 | | | | $ | (0.13 | ) | | | $ | 0.24 | | | | $ | (0.37 | ) | | | $ | — | | | | $ | (0.37 | ) | | | $ | 9.76 | | | |
20081 | | | 10.07 | | | | | 0.35 | | | | | (0.15 | ) | | | | 0.20 | | | | | (0.35 | ) | | | | (0.03 | ) | | | | (0.38 | ) | | | | 9.89 | | | |
20071 | | | 10.05 | | | | | 0.33 | | | | | 0.05 | | | | | 0.38 | | | | | (0.34 | ) | | | | (0.02 | ) | | | | (0.36 | ) | | | | 10.07 | | | |
20062 | | | 10.32 | | | | | 0.25 | | | | | (0.26 | ) | | | | (0.01 | ) | | | | (0.25 | ) | | | | (0.01 | ) | | | | (0.26 | ) | | | | 10.05 | | | |
20053 | | | 10.41 | | | | | 0.32 | | | | | (0.05 | ) | | | | 0.27 | | | | | (0.32 | ) | | | | (0.04 | ) | | | | (0.36 | ) | | | | 10.32 | | | |
20043 | | | 10.44 | | | | | 0.29 | | | | | 0.09 | | | | | 0.38 | | | | | (0.31 | ) | | | | (0.10 | ) | | | | (0.41 | ) | | | | 10.41 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.01 | | | | $ | 0.42 | | | | $ | (0.10 | ) | | | $ | 0.32 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 9.90 | | | |
20081 | | | 10.19 | | | | | 0.41 | | | | | (0.15 | ) | | | | 0.26 | | | | | (0.41 | ) | | | | (0.03 | ) | | | | (0.44 | ) | | | | 10.01 | | | |
20071 | | | 10.17 | | | | | 0.41 | | | | | 0.04 | | | | | 0.45 | | | | | (0.41 | ) | | | | (0.02 | ) | | | | (0.43 | ) | | | | 10.19 | | | |
20062 | | | 10.43 | | | | | 0.30 | | | | | (0.25 | ) | | | | 0.05 | | | | | (0.30 | ) | | | | (0.01 | ) | | | | (0.31 | ) | | | | 10.17 | | | |
20053 | | | 10.53 | | | | | 0.38 | | | | | (0.05 | ) | | | | 0.33 | | | | | (0.39 | ) | | | | (0.04 | ) | | | | (0.43 | ) | | | | 10.43 | | | |
20043 | | | 10.55 | | | | | 0.38 | | | | | 0.07 | | | | | 0.45 | | | | | (0.37 | ) | | | | (0.10 | ) | | | | (0.47 | ) | | | | 10.53 | | | |
| |
| |
Oregon Intermediate Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.68 | | | | $ | 0.36 | | | | $ | 0.09 | | | | $ | 0.45 | | | | $ | (0.36 | ) | | | $ | — | | | | $ | (0.36 | ) | | | $ | 9.77 | | | |
20081 | | | 9.72 | | | | | 0.35 | | | | | (0.02 | ) | | | | 0.33 | | | | | (0.36 | ) | | | | (0.01 | ) | | | | (0.37 | ) | | | | 9.68 | | | |
20071 | | | 9.78 | | | | | 0.37 | | | | | (0.02 | ) | | | | 0.35 | | | | | (0.37 | ) | | | | (0.04 | ) | | | | (0.41 | ) | | | | 9.72 | | | |
20062 | | | 10.07 | | | | | 0.27 | | | | | (0.25 | ) | | | | 0.02 | | | | | (0.27 | ) | | | | (0.04 | ) | | | | (0.31 | ) | | | | 9.78 | | | |
20053 | | | 10.30 | | | | | 0.36 | | | | | (0.19 | ) | | | | 0.17 | | | | | (0.36 | ) | | | | (0.04 | ) | | | | (0.40 | ) | | | | 10.07 | | | |
20043 | | | 10.43 | | | | | 0.37 | | | | | (0.05 | ) | | | | 0.32 | | | | | (0.37 | ) | | | | (0.08 | ) | | | | (0.45 | ) | | | | 10.30 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.68 | | | | $ | 0.37 | | | | $ | 0.10 | | | | $ | 0.47 | | | | $ | (0.38 | ) | | | $ | — | | | | $ | (0.38 | ) | | | $ | 9.77 | | | |
20081 | | | 9.72 | | | | | 0.37 | | | | | (0.03 | ) | | | | 0.34 | | | | | (0.37 | ) | | | | (0.01 | ) | | | | (0.38 | ) | | | | 9.68 | | | |
20071 | | | 9.78 | | | | | 0.38 | | | | | (0.02 | ) | | | | 0.36 | | | | | (0.38 | ) | | | | (0.04 | ) | | | | (0.42 | ) | | | | 9.72 | | | |
20062 | | | 10.07 | | | | | 0.28 | | | | | (0.25 | ) | | | | 0.03 | | | | | (0.28 | ) | | | | (0.04 | ) | | | | (0.32 | ) | | | | 9.78 | | | |
20053 | | | 10.30 | | | | | 0.38 | | | | | (0.19 | ) | | | | 0.19 | | | | | (0.38 | ) | | | | (0.04 | ) | | | | (0.42 | ) | | | | 10.07 | | | |
20043 | | | 10.43 | | | | | 0.39 | | | | | (0.05 | ) | | | | 0.34 | | | | | (0.39 | ) | | | | (0.08 | ) | | | | (0.47 | ) | | | | 10.30 | | | |
| |
| |
| | |
| | 1 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 3 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
96 First American Funds 2009 Annual Report
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| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return4 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.33 | % | | | $ | 5,847 | | | | | 0.75 | % | | | | 4.41 | % | | | | 1.50 | % | | | | 3.66 | % | | | | 34 | % | | |
| | | | 2.19 | | | | | 5,689 | | | | | 0.75 | | | | | 4.06 | | | | | 1.47 | | | | | 3.34 | | | | | 22 | | | |
| | | | 4.24 | | | | | 7,091 | | | | | 0.75 | | | | | 3.97 | | | | | 1.44 | | | | | 3.28 | | | | | 39 | | | |
| | | | 0.65 | | | | | 6,910 | | | | | 0.75 | | | | | 3.89 | | | | | 1.30 | | | | | 3.34 | | | | | 35 | | | |
| | | | 3.20 | | | | | 7,136 | | | | | 0.75 | | | | | 3.78 | | | | | 1.12 | | | | | 3.41 | | | | | 21 | | | |
| | | | 4.18 | | | | | 4,925 | | | | | 0.75 | | | | | 3.82 | | | | | 1.08 | | | | | 3.49 | | | | | 17 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.84 | % | | | $ | 2,585 | | | | | 1.15 | % | | | | 4.02 | % | | | | 1.90 | % | | | | 3.27 | % | | | | 34 | % | | |
| | | | 1.81 | | | | | 1,798 | | | | | 1.15 | | | | | 3.65 | | | | | 1.87 | | | | | 2.93 | | | | | 22 | | | |
| | | | 3.86 | | | | | 1,559 | | | | | 1.15 | | | | | 3.56 | | | | | 1.92 | | | | | 2.79 | | | | | 39 | | | |
| | | | 0.46 | | | | | 1,487 | | | | | 1.15 | | | | | 3.49 | | | | | 2.05 | | | | | 2.59 | | | | | 35 | | | |
| | | | 2.81 | | | | | 1,565 | | | | | 1.15 | | | | | 3.38 | | | | | 1.87 | | | | | 2.66 | | | | | 21 | | | |
| | | | 3.80 | | | | | 1,861 | | | | | 1.15 | | | | | 3.42 | | | | | 1.83 | | | | | 2.74 | | | | | 17 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.48 | % | | | $ | 30,689 | | | | | 0.50 | % | | | | 4.67 | % | | | | 1.25 | % | | | | 3.92 | % | | | | 34 | % | | |
| | | | 2.45 | | | | | 29,533 | | | | | 0.50 | | | | | 4.31 | | | | | 1.22 | | | | | 3.59 | | | | | 22 | | | |
| | | | 4.51 | | | | | 32,502 | | | | | 0.50 | | | | | 4.22 | | | | | 1.19 | | | | | 3.53 | | | | | 39 | | | |
| | | | 0.85 | | | | | 31,347 | | | | | 0.50 | | | | | 4.14 | | | | | 1.05 | | | | | 3.59 | | | | | 35 | | | |
| | | | 3.45 | | | | | 32,418 | | | | | 0.50 | | | | | 4.03 | | | | | 0.87 | | | | | 3.66 | | | | | 21 | | | |
| | | | 4.54 | | | | | 29,722 | | | | | 0.50 | | | | | 4.07 | | | | | 0.83 | | | | | 3.74 | | | | | 17 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.99 | % | | | $ | 1,048 | | | | | 0.75 | % | | | | 4.09 | % | | | | 1.39 | % | | | | 3.45 | % | | | | 12 | % | | |
| | | | 2.38 | | | | | 635 | | | | | 0.75 | | | | | 3.81 | | | | | 1.39 | | | | | 3.17 | | | | | 12 | | | |
| | | | 4.28 | | | | | 808 | | | | | 0.75 | | | | | 3.70 | | | | | 1.41 | | | | | 3.04 | | | | | 33 | | | |
| | | | 0.40 | | | | | 841 | | | | | 0.75 | | | | | 3.60 | | | | | 1.28 | | | | | 3.07 | | | | | 11 | | | |
| | | | 2.86 | | | | | 988 | | | | | 0.75 | | | | | 3.41 | | | | | 1.11 | | | | | 3.05 | | | | | 13 | | | |
| | | | 4.16 | | | | | 1,200 | | | | | 0.75 | | | | | 3.43 | | | | | 1.08 | | | | | 3.10 | | | | | 19 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.52 | % | | | $ | 399 | | | | | 1.15 | % | | | | 3.68 | % | | | | 1.79 | % | | | | 3.04 | % | | | | 12 | % | | |
| | | | 2.00 | | | | | 255 | | | | | 1.15 | | | | | 3.39 | | | | | 1.78 | | | | | 2.76 | | | | | 12 | | | |
| | | | 3.81 | | | | | 187 | | | | | 1.15 | | | | | 3.29 | | | | | 1.90 | | | | | 2.54 | | | | | 33 | | | |
| | | | (0.08 | ) | | | | 209 | | | | | 1.15 | | | | | 3.22 | | | | | 2.03 | | | | | 2.34 | | | | | 11 | | | |
| | | | 2.58 | | | | | 174 | | | | | 1.15 | | | | | 3.01 | | | | | 1.86 | | | | | 2.30 | | | | | 13 | | | |
| | | | 3.69 | | | | | 120 | | | | | 1.15 | | | | | 3.03 | | | | | 1.83 | | | | | 2.35 | | | | | 19 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3.36 | % | | | $ | 44,783 | | | | | 0.50 | % | | | | 4.35 | % | | | | 1.14 | % | | | | 3.71 | % | | | | 12 | % | | |
| | | | 2.63 | | | | | 48,510 | | | | | 0.50 | | | | | 4.06 | | | | | 1.14 | | | | | 3.42 | | | | | 12 | | | |
| | | | 4.44 | | | | | 42,223 | | | | | 0.50 | | | | | 3.94 | | | | | 1.16 | | | | | 3.28 | | | | | 33 | | | |
| | | | 0.49 | | | | | 40,606 | | | | | 0.50 | | | | | 3.85 | | | | | 1.03 | | | | | 3.32 | | | | | 11 | | | |
| | | | 3.12 | | | | | 41,104 | | | | | 0.50 | | | | | 3.66 | | | | | 0.86 | | | | | 3.30 | | | | | 13 | | | |
| | | | 4.42 | | | | | 39,240 | | | | | 0.50 | | | | | 3.68 | | | | | 0.82 | | | | | 3.36 | | | | | 19 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.77 | % | | | $ | 10,963 | | | | | 0.85 | % | | | | 3.70 | % | | | | 1.12 | % | | | | 3.43 | % | | | | 19 | % | | |
| | | | 3.39 | | | | | 5,967 | | | | | 0.85 | | | | | 3.64 | | | | | 1.12 | | | | | 3.37 | | | | | 15 | | | |
| | | | 3.54 | | | | | 7,895 | | | | | 0.85 | | | | | 3.71 | | | | | 1.12 | | | | | 3.44 | | | | | 43 | | | |
| | | | 0.16 | | | | | 9,456 | | | | | 0.85 | | | | | 3.62 | | | | | 1.11 | | | | | 3.36 | | | | | 13 | | | |
| | | | 1.67 | | | | | 9,356 | | | | | 0.85 | | | | | 3.56 | | | | | 1.06 | | | | | 3.35 | | | | | 20 | | | |
| | | | 3.20 | | | | | 8,700 | | | | | 0.85 | | | | | 3.62 | | | | | 1.05 | | | | | 3.42 | | | | | 12 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.92 | % | | | $ | 119,959 | | | | | 0.70 | % | | | | 3.84 | % | | | | 0.87 | % | | | | 3.67 | % | | | | 19 | % | | |
| | | | 3.54 | | | | | 120,800 | | | | | 0.70 | | | | | 3.78 | | | | | 0.87 | | | | | 3.61 | | | | | 15 | | | |
| | | | 3.70 | | | | | 109,357 | | | | | 0.70 | | | | | 3.86 | | | | | 0.87 | | | | | 3.69 | | | | | 43 | | | |
| | | | 0.28 | | | | | 111,344 | | | | | 0.70 | | | | | 3.77 | | | | | 0.86 | | | | | 3.61 | | | | | 13 | | | |
| | | | 1.82 | | | | | 133,613 | | | | | 0.70 | | | | | 3.71 | | | | | 0.81 | | | | | 3.60 | | | | | 20 | | | |
| | | | 3.35 | | | | | 137,869 | | | | | 0.70 | | | | | 3.77 | | | | | 0.80 | | | | | 3.67 | | | | | 12 | | | |
| |
| |
First American Funds 2009 Annual Report 97
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total From
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
| |
Short Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.79 | | | | $ | 0.28 | | | | $ | (0.07 | ) | | | $ | 0.21 | | | | $ | (0.26 | ) | | | $ | — | | | | $ | (0.26 | ) | | | $ | 9.74 | | | |
20081 | | | 9.70 | | | | | 0.30 | | | | | 0.10 | | | | | 0.40 | | | | | (0.31 | ) | | | | — | | | | | (0.31 | ) | | | | 9.79 | | | |
20071 | | | 9.68 | | | | | 0.28 | | | | | 0.03 | | | | | 0.31 | | | | | (0.29 | ) | | | | — | | | | | (0.29 | ) | | | | 9.70 | | | |
20062 | | | 9.78 | | | | | 0.19 | | | | | (0.09 | ) | | | | 0.10 | | | | | (0.20 | ) | | | | — | | | | | (0.20 | ) | | | | 9.68 | | | |
20053 | | | 9.96 | | | | | 0.24 | | | | | (0.17 | ) | | | | 0.07 | | | | | (0.25 | ) | | | | — | | | | | (0.25 | ) | | | | 9.78 | | | |
20043 | | | 10.18 | | | | | 0.26 | | | | | (0.17 | ) | | | | 0.09 | | | | | (0.25 | ) | | | | (0.06 | ) | | | | (0.31 | ) | | | | 9.96 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 9.79 | | | | $ | 0.27 | | | | $ | (0.05 | ) | | | $ | 0.22 | | | | $ | (0.27 | ) | | | $ | — | | | | $ | (0.27 | ) | | | $ | 9.74 | | | |
20081 | | | 9.70 | | | | | 0.31 | | | | | 0.10 | | | | | 0.41 | | | | | (0.32 | ) | | | | — | | | | | (0.32 | ) | | | | 9.79 | | | |
20071 | | | 9.68 | | | | | 0.31 | | | | | 0.01 | | | | | 0.32 | | | | | (0.30 | ) | | | | — | | | | | (0.30 | ) | | | | 9.70 | | | |
20062 | | | 9.78 | | | | | 0.21 | | | | | (0.10 | ) | | | | 0.11 | | | | | (0.21 | ) | | | | — | | | | | (0.21 | ) | | | | 9.68 | | | |
20053 | | | 9.96 | | | | | 0.26 | | | | | (0.18 | ) | | | | 0.08 | | | | | (0.26 | ) | | | | — | | | | | (0.26 | ) | | | | 9.78 | | | |
20043 | | | 10.18 | | | | | 0.27 | | | | | (0.17 | ) | | | | 0.10 | | | | | (0.26 | ) | | | | (0.06 | ) | | | | (0.32 | ) | | | | 9.96 | | | |
| |
| |
Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.26 | | | | $ | 0.48 | | | | $ | (0.59 | ) | | | $ | (0.11 | ) | | | $ | (0.48 | ) | | | $ | (0.02 | ) | | | $ | (0.50 | ) | | | $ | 9.65 | | | |
20081 | | | 10.77 | | | | | 0.45 | | | | | (0.46 | ) | | | | (0.01 | ) | | | | (0.44 | ) | | | | (0.06 | ) | | | | (0.50 | ) | | | | 10.26 | | | |
20071 | | | 10.86 | | | | | 0.45 | | | | | — | | | | | 0.45 | | | | | (0.45 | ) | | | | (0.09 | ) | | | | (0.54 | ) | | | | 10.77 | | | |
20062 | | | 11.10 | | | | | 0.35 | | | | | (0.20 | ) | | | | 0.15 | | | | | (0.35 | ) | | | | (0.04 | ) | | | | (0.39 | ) | | | | 10.86 | | | |
20053 | | | 11.18 | | | | | 0.47 | | | | | 0.03 | | | | | 0.50 | | | | | (0.47 | ) | | | | (0.11 | ) | | | | (0.58 | ) | | | | 11.10 | | | |
20043 | | | 11.28 | | | | | 0.47 | | �� | | | 0.02 | | | | | 0.49 | | | | | (0.48 | ) | | | | (0.11 | ) | | | | (0.59 | ) | | | | 11.18 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.21 | | | | $ | 0.42 | | | | $ | (0.57 | ) | | | $ | (0.15 | ) | | | $ | (0.43 | ) | | | $ | (0.02 | ) | | | $ | (0.45 | ) | | | $ | 9.61 | | | |
20081 | | | 10.72 | | | | | 0.39 | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.39 | ) | | | | (0.06 | ) | | | | (0.45 | ) | | | | 10.21 | | | |
20071 | | | 10.81 | | | | | 0.40 | | | | | 0.01 | | | | | 0.41 | | | | | (0.41 | ) | | | | (0.09 | ) | | | | (0.50 | ) | | | | 10.72 | | | |
20062 | | | 11.05 | | | | | 0.32 | | | | | (0.20 | ) | | | | 0.12 | | | | | (0.32 | ) | | | | (0.04 | ) | | | | (0.36 | ) | | | | 10.81 | | | |
20053 | | | 11.13 | | | | | 0.42 | | | | | 0.03 | | | | | 0.45 | | | | | (0.42 | ) | | | | (0.11 | ) | | | | (0.53 | ) | | | | 11.05 | | | |
20043 | | | 11.24 | | | | | 0.43 | | | | | — | | | | | 0.43 | | | | | (0.43 | ) | | | | (0.11 | ) | | | | (0.54 | ) | | | | 11.13 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20091 | | $ | 10.27 | | | | $ | 0.49 | | | | $ | (0.59 | ) | | | $ | (0.10 | ) | | | $ | (0.49 | ) | | | $ | (0.02 | ) | | | $ | (0.51 | ) | | | $ | 9.66 | | | |
20081 | | | 10.78 | | | | | 0.46 | | | | | (0.46 | ) | | | | — | | | | | (0.45 | ) | | | | (0.06 | ) | | | | (0.51 | ) | | | | 10.27 | | | |
20071 | | | 10.87 | | | | | 0.48 | | | | | — | | | | | 0.48 | | | | | (0.48 | ) | | | | (0.09 | ) | | | | (0.57 | ) | | | | 10.78 | | | |
20062 | | | 11.11 | | | | | 0.37 | | | | | (0.20 | ) | | | | 0.17 | | | | | (0.37 | ) | | | | (0.04 | ) | | | | (0.41 | ) | | | | 10.87 | | | |
20053 | | | 11.19 | | | | | 0.50 | | | | | 0.02 | | | | | 0.52 | | | | | (0.49 | ) | | | | (0.11 | ) | | | | (0.60 | ) | | | | 11.11 | | | |
20043 | | | 11.29 | | | | | 0.50 | | | | | 0.01 | | | | | 0.51 | | | | | (0.50 | ) | | | | (0.11 | ) | | | | (0.61 | ) | | | | 11.19 | | | |
| |
| |
| | |
| | 1 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 2 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 3 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 4 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
98 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return4 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.17 | % | | | $ | 3,376 | | | | | 0.75 | % | | | | 2.71 | % | | | | 1.11 | % | | | | 2.35 | % | | | | 70 | % | | |
| | | | 4.17 | | | | | 2,308 | | | | | 0.75 | | | | | 3.05 | | | | | 1.11 | | | | | 2.69 | | | | | 58 | | | |
| | | | 3.22 | | | | | 2,410 | | | | | 0.75 | | | | | 2.94 | | | | | 1.08 | | | | | 2.61 | | | | | 57 | | | |
| | | | 1.02 | | | | | 3,321 | | | | | 0.75 | | | | | 2.65 | | | | | 1.08 | | | | | 2.32 | | | | | 22 | | | |
| | | | 0.67 | | | | | 4,103 | | | | | 0.75 | | | | | 2.46 | | | | | 1.06 | | | | | 2.15 | | | | | 37 | | | |
| | | | 0.90 | | | | | 6,329 | | | | | 0.75 | | | | | 2.55 | | | | | 1.05 | | | | | 2.25 | | | | | 30 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.32 | % | | | $ | 178,950 | | | | | 0.60 | % | | | | 2.84 | % | | | | 0.86 | % | | | | 2.58 | % | | | | 70 | % | | |
| | | | 4.33 | | | | | 143,985 | | | | | 0.60 | | | | | 3.20 | | | | | 0.86 | | | | | 2.94 | | | | | 58 | | | |
| | | | 3.37 | | | | | 161,468 | | | | | 0.60 | | | | | 3.09 | | | | | 0.83 | | | | | 2.86 | | | | | 57 | | | |
| | | | 1.13 | | | | | 235,900 | | | | | 0.60 | | | | | 2.80 | | | | | 0.83 | | | | | 2.57 | | | | | 22 | | | |
| | | | 0.83 | | | | | 329,647 | | | | | 0.60 | | | | | 2.62 | | | | | 0.81 | | | | | 2.41 | | | | | 37 | | | |
| | | | 1.05 | | | | | 419,359 | | | | | 0.60 | | | | | 2.70 | | | | | 0.80 | | | | | 2.50 | | | | | 30 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.80 | )% | | | $ | 35,276 | | | | | 0.75 | % | | | | 5.07 | % | | | | 1.04 | % | | | | 4.78 | % | | | | 34 | % | | |
| | | | (0.05 | ) | | | | 35,557 | | | | | 0.78 | | | | | 4.28 | | | | | 1.02 | | | | | 4.04 | | | | | 52 | | | |
| | | | 4.16 | | | | | 37,760 | | | | | 0.95 | | | | | 4.08 | | | | | 1.03 | | | | | 4.00 | | | | | 31 | | | |
| | | | 1.37 | | | | | 36,519 | | | | | 0.95 | | | | | 4.28 | | | | | 1.06 | | | | | 4.17 | | | | | 13 | | | |
| | | | 4.51 | | | | | 38,205 | | | | | 0.95 | | | | | 4.20 | | | | | 1.06 | | | | | 4.09 | | | | | 8 | | | |
| | | | 4.45 | | | | | 40,156 | | | | | 0.95 | | | | | 4.18 | | | | | 1.05 | | | | | 4.08 | | | | | 23 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.30 | )% | | | $ | 3,442 | | | | | 1.35 | % | | | | 4.48 | % | | | | 1.44 | % | | | | 4.39 | % | | | | 34 | % | | |
| | | | (0.61 | ) | | | | 3,104 | | | | | 1.35 | | | | | 3.72 | | | | | 1.43 | | | | | 3.64 | | | | | 52 | | | |
| | | | 3.76 | | | | | 2,495 | | | | | 1.35 | | | | | 3.67 | | | | | 1.51 | | | | | 3.51 | | | | | 31 | | | |
| | | | 1.06 | | | | | 2,210 | | | | | 1.35 | | | | | 3.87 | | | | | 1.81 | | | | | 3.41 | | | | | 13 | | | |
| | | | 4.13 | | | | | 2,712 | | | | | 1.35 | | | | | 3.80 | | | | | 1.81 | | | | | 3.34 | | | | | 8 | | | |
| | | | 3.92 | | | | | 2,682 | | | | | 1.35 | | | | | 3.77 | | | | | 1.80 | | | | | 3.32 | | | | | 23 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.75 | )% | | | $ | 381,048 | | | | | 0.70 | % | | | | 5.10 | % | | | | 0.79 | % | | | | 5.01 | % | | | | 34 | % | | |
| | | | 0.04 | | | | | 448,774 | | | | | 0.70 | | | | | 4.36 | | | | | 0.78 | | | | | 4.28 | | | | | 52 | | | |
| | | | 4.42 | | | | | 539,360 | | | | | 0.70 | | | | | 4.32 | | | | | 0.78 | | | | | 4.24 | | | | | 31 | | | |
| | | | 1.57 | | | | | 455,910 | | | | | 0.70 | | | | | 4.53 | | | | | 0.81 | | | | | 4.42 | | | | | 13 | | | |
| | | | 4.77 | | | | | 436,303 | | | | | 0.70 | | | | | 4.45 | | | | | 0.81 | | | | | 4.34 | | | | | 8 | | | |
| | | | 4.71 | | | | | 416,651 | | | | | 0.70 | | | | | 4.43 | | | | | 0.80 | | | | | 4.33 | | | | | 23 | | | |
| |
| |
First American Funds 2009 Annual Report 99
| |
| Notes toFinancial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2009, FAIF offered 40 funds, including the funds listed above. Effective at the close of business on January 16, 2009, California Intermediate Tax Free Fund and Colorado Intermediate Tax Free Fund merged with California Tax Free Fund and Colorado Tax Free Fund, respectively. California Tax Free Fund and Colorado Tax Free Fund are the accounting survivors. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund are each diversified open-end management investment companies. Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund are each non-diversified open-end management investment companies. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.
The funds offer Class A and Class Y shares. Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund are sold with a maximum front-end sales charge of 4.25%. Class A shares of Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund are sold with a maximum front-end sales charge of 2.25%. Class C shares may be subject to a contingent deferred sales charge of 1.00% for 12 months. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.
The funds’ prospectuses provide descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.
| |
| 2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Investments in open-end funds are valued at their respective net asset values on the valuation date.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, Inc. (“FAF Advisors”), on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a domestic stock exchange are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than foreign currency forward contracts), swaps, and over-the-counter options on securities and indices are valued at the quotations received from an independent pricing service, if available.
When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that
100 First American Funds 2009 Annual Report
materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations. As of June 30, 2009, the funds held no investments in fair valued securities.
The funds adopted Statement of Financial Accounting Standard No. 157, Fair Value Measurements (“FAS 157”) and FASB Staff Position (“FSP”) 157-4. FSP 157-4 clarifies FAS 157 and requires an entity to evaluate certain factors to determine whether there has been a significant decrease in volume and level of activity for the security such that recent transactions and quoted prices may not be determinative of fair value and further analysis and adjustment may be necessary to estimate fair value. The FSP also requires enhanced disclosure regarding the inputs and valuation techniques used to measure fair value in those instances as well as expanded disclosure of valuation levels for major security types. FAS 157 requires each fund to classify its securities based on valuation method, using the following three levels:
Level 1 — Quoted prices in active markets for identical securities.
Level 2 — Other significant observable inputs (including quoted prices for similar securities, with similar interest rates, prepayment speeds, credit risk, etc.).
Level 3 — Significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments). Generally, the types of securities included in Level 3 of a fund are securities for which there are limited or no observable fair value inputs available, and as such the fair value is determined through independent broker quotations or management’s fair value procedures established by the funds’ board of directors.
The valuation levels are not necessarily an indication of the risk associated with investing in these investments. Industry implementation of FAS 157 level classifications continues to develop and it may be some period of time before industry practices become more uniform. For this reason, care should be exercised in interpreting this information and/or using it for comparison with other mutual funds.
As of June 30, 2009, each fund’s investments in securities were classified as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Arizona Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 17,075 | | | $ | — | | | $ | 17,075 | |
| General Obligations | | | — | | | | 3,061 | | | | — | | | | 3,061 | |
| Certificates of Participation | | | — | | | | 1,261 | | | | — | | | | 1,261 | |
| Short-Term Investment | | | 457 | | | | — | | | | — | | | | 457 | |
| |
| |
| Total Investments | | $ | 457 | | | $ | 21,397 | | | $ | — | | | $ | 21,854 | |
| |
| |
California Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 66,033 | | | $ | — | | | $ | 66,033 | |
| General Obligations | | | — | | | | 24,923 | | | | — | | | | 24,923 | |
| Certificates of Participation | | | — | | | | 4,915 | | | | — | | | | 4,915 | |
| Short-Term Investment | | | 1,138 | | | | — | | | | — | | | | 1,138 | |
| |
| |
| Total Investments | | $ | 1,138 | | | $ | 95,871 | | | $ | — | | | $ | 97,009 | |
| |
| |
Colorado Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 49,210 | | | $ | — | | | $ | 49,210 | |
| General Obligations | | | — | | | | 11,341 | | | | — | | | | 11,341 | |
| Certificates of Participation | | | — | | | | 4,297 | | | | — | | | | 4,297 | |
| Short-Term Investment | | | 400 | | | | — | | | | — | | | | 400 | |
| |
| |
| Total Investments | | $ | 400 | | | $ | 64,848 | | | $ | — | | | $ | 65,248 | |
| |
| |
Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 440,156 | | | $ | — | | | $ | 440,156 | |
| General Obligations | | | — | | | | 199,926 | | | | — | | | | 199,926 | |
| Certificates of Participation | | | — | | | | 15,035 | | | | — | | | | 15,035 | |
| Short-Term Investments | | | 24,254 | | | | 300 | | | | — | | | | 24,554 | |
| |
| |
| Total Investments | | $ | 24,254 | | | $ | 655,417 | | | $ | — | | | $ | 679,671 | |
| |
| |
Minnesota Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 129,905 | | | $ | — | | | $ | 129,905 | |
| General Obligations | | | — | | | | 51,241 | | | | — | | | | 51,241 | |
| Certificates of Participation | | | — | | | | 2,946 | | | | — | | | | 2,946 | |
| Short-Term Investments | | | 403 | | | | 9,000 | | | | — | | | | 9,403 | |
| |
| |
| Total Investments | | $ | 403 | | | $ | 193,092 | | | $ | — | | | $ | 193,495 | |
| |
| |
First American Funds 2009 Annual Report 101
| |
| Notes to Financial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Minnesota Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 129,463 | | | $ | — | | | $ | 129,463 | |
| General Obligations | | | — | | | | 15,526 | | | | — | | �� | | 15,526 | |
| Certificate of Participation | | | — | | | | 2,043 | | | | — | | | | 2,043 | |
| Short-Term Investments | | | 1,014 | | | | 200 | | | | — | | | | 1,214 | |
| |
| |
| Total Investments | | $ | 1,014 | | | $ | 147,232 | | | $ | — | | | $ | 148,246 | |
| |
| |
Missouri Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 118,840 | | | $ | — | | | $ | 118,840 | |
| General Obligations | | | — | | | | 10,749 | | | | — | | | | 10,749 | |
| Certificates of Participation | | | — | | | | 10,449 | | | | — | | | | 10,449 | |
| Short-Term Investment | | | 2,762 | | | | — | | | | — | | | | 2,762 | |
| |
| |
| Total Investments | | $ | 2,762 | | | $ | 140,038 | | | $ | — | | | $ | 142,800 | |
| |
| |
Nebraska Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 29,803 | | | $ | — | | | $ | 29,803 | |
| General Obligations | | | — | | | | 8,646 | | | | — | | | | 8,646 | |
| Short-Term Investment | | | 353 | | | | — | | | | — | | | | 353 | |
| |
| |
| Total Investments | | $ | 353 | | | $ | 38,449 | | | $ | — | | | $ | 38,802 | |
| |
| |
Ohio Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 29,848 | | | $ | — | | | $ | 29,848 | |
| General Obligations | | | — | | | | 14,928 | | | | — | | | | 14,928 | |
| Short-Term Investment | | | 2,236 | | | | — | | | | — | | | | 2,236 | |
| |
| |
| Total Investments | | $ | 2,236 | | | $ | 44,776 | | | $ | — | | | $ | 47,012 | |
| |
| |
Oregon Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 55,898 | | | $ | — | | | $ | 55,898 | |
| General Obligations | | | — | | | | 65,392 | | | | — | | | | 65,392 | |
| Certificates of Participation | | | — | | | | 4,309 | | | | — | | | | 4,309 | |
| Short-Term Investment | | | 4,267 | | | | — | | | | — | | | | 4,267 | |
| |
| |
| Total Investments | | $ | 4,267 | | | $ | 125,599 | | | $ | — | | | $ | 129,866 | |
| |
| |
Short Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 115,044 | | | $ | — | | | $ | 115,044 | |
| General Obligations | | | — | | | | 29,016 | | | | — | | | | 29,016 | |
| Certificates of Participation | | | — | | | | 12,227 | | | | — | | | | 12,227 | |
| Short-Term Investments | | | 9,287 | | | | 13,930 | | | | — | | | | 23,217 | |
| |
| |
| Total Investments | | $ | 9,287 | | | $ | 170,217 | | | $ | — | | | $ | 179,504 | |
| |
| |
Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 368,620 | | | $ | — | | | $ | 368,620 | |
| General Obligations | | | — | | | | 37,334 | | | | — | | | | 37,334 | |
| Certificates of Participation | | | — | | | | 3,722 | | | | — | | | | 3,722 | |
| Short-Term Investment | | | 13,679 | | | | — | | | | — | | | | 13,679 | |
| |
| |
| Total Investments | | $ | 13,679 | | | $ | 409,676 | | | $ | — | | | $ | 423,355 | |
| |
| |
SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Interest income, including amortization of bond premiums and accretion of bond discounts, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying cost of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared daily and are payable in cash or reinvested in additional shares of the fund at the net asset value on the last business day of each month. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income or excise taxes is required.
As of June 30, 2009, the funds did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax
102 First American Funds 2009 Annual Report
authority. Generally, tax authorities can examine all the tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to book and tax differences for straddle loss deferrals, classification of dividends paid by the funds, and tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256.
To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.
On the Statements of Assets and Liabilities, the following reclassifications were made:
| | | | | | | | | | | | | |
| | | Accumulated
| | | Undistributed
| | | | |
| | | Net Realized
| | | Net Investment
| | | Portfolio
| |
| Fund | | Gain (Loss) | | | Income | | | Capital | |
| | |
| California Tax Free Fund | | $ | (11 | ) | | $ | (7 | ) | | $ | 18 | |
| Colorado Tax Free Fund | | | 4 | | | | (11 | ) | | | 7 | |
| Intermediate Tax Free Fund | | | 1 | | | | (1 | ) | | | — | |
| |
| |
The character of distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal years ended June 30, 2009 and June 30, 2008 (adjusted by dividends payable as of June 30, 2009 and June 30, 2008) were as follows:
| | | | | | | | | | | | | | | | | |
| | | June 30, 2009 | |
| | |
| | | Tax Exempt
| | | Ordinary
| | | Long Term
| | | | |
| Fund | | Income | | | Income | | | Gain | | | Total | |
| | |
| Arizona Tax Free Fund | | $ | 1,159 | | | $ | — | | | $ | — | | | $ | 1,159 | |
| California Tax Free Fund | | | 2,894 | | | | — | | | | — | | | | 2,894 | |
| Colorado Tax Free Fund | | | 1,960 | | | | 67 | | | | 139 | | | | 2,166 | |
| Intermediate Tax Free Fund | | | 29,152 | | | | 307 | | | | 201 | | | | 29,660 | |
| Minnesota Intermediate Tax Free Fund | | | 7,840 | | | | 13 | | | | 514 | | | | 8,367 | |
| Minnesota Tax Free Fund | | | 6,482 | | | | 2 | | | | 862 | | | | 7,346 | |
| Missouri Tax Free Fund | | | 6,705 | | | | 62 | | | | 273 | | | | 7,040 | |
| Nebraska Tax Free Fund | | | 1,745 | | | | — | | | | — | | | | 1,745 | |
| Ohio Tax Free Fund | | | 2,045 | | | | — | | | | — | | | | 2,045 | |
| Oregon Intermediate Tax Free Fund | | | 4,872 | | | | 4 | | | | — | | | | 4,876 | |
| Short Tax Free Fund | | | 4,466 | | | | — | | | | — | | | | 4,466 | |
| Tax Free Fund | | | 21,627 | | | | 26 | | | | 643 | | | | 22,296 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| | | June 30, 2008 | |
| | |
| | | Tax Exempt
| | | Ordinary
| | | Long Term
| | | | |
| Fund | | Income | | | Income | | | Gain | | | Total | |
| | |
| Arizona Tax Free Fund | | $ | 1,257 | | | $ | 4 | | | $ | 86 | | | $ | 1,347 | |
| California Tax Free Fund | | | 1,706 | | | | 51 | | | | 84 | | | | 1,841 | |
| Colorado Tax Free Fund | | | 1,003 | | | | 6 | | | | 75 | | | | 1,084 | |
| Intermediate Tax Free Fund | | | 25,493 | | | | 284 | | | | 1,841 | | | | 27,618 | |
| Minnesota Intermediate Tax Free Fund | | | 7,834 | | | | 29 | | | | 501 | | | | 8,364 | |
| Minnesota Tax Free Fund | | | 7,300 | | | | 59 | | | | 875 | | | | 8,234 | |
| Missouri Tax Free Fund | | | 6,574 | | | | 81 | | | | 327 | | | | 6,982 | |
| Nebraska Tax Free Fund | | | 1,629 | | | | 11 | | | | 178 | | | | 1,818 | |
| Ohio Tax Free Fund | | | 1,819 | | | | 6 | | | | 129 | | | | 1,954 | |
| Oregon Intermediate Tax Free Fund | | | 4,655 | | | | 33 | | | | 54 | | | | 4,742 | |
| Short Tax Free Fund | | | 5,139 | | | | — | | | | — | | | | 5,139 | |
| Tax Free Fund | | | 23,113 | | | | 28 | | | | 2,968 | | | | 26,109 | |
| |
| |
First American Funds 2009 Annual Report 103
| |
| Notes to Financial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
As of June 30, 2009, the funds’ most recently completed fiscal year-end, the components of accumulated earnings (deficit) on a tax-basis were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Accumulated
| | | | | | Total
| |
| | | Undistributed
| | | Undistributed
| | | Undistributed
| | | Capital and
| | | Unrealized
| | | Accumulated
| |
| | | Ordinary
| | | Tax Exempt
| | | Long Term
| | | Post-October
| | | Appreciation
| | | Earnings
| |
| Fund | | Income | | | Income | | | Capital Gains | | | Losses | | | (Depreciation) | | | (Deficit) | |
| | |
| Arizona Tax Free Fund | | $ | 6 | | | $ | 77 | | | $ | — | | | $ | (78 | ) | | $ | (1,180 | ) | | $ | (1,175 | ) |
| California Tax Free Fund | | | 15 | | | | 301 | | | | 71 | | | | — | | | | (3,329 | ) | | | (2,942 | ) |
| Colorado Tax Free Fund | | | 9 | | | | 157 | | | | 87 | | | | — | | | | (1,013 | ) | | | (760 | ) |
| Intermediate Tax Free Fund | | | 377 | | | | 1,419 | | | | — | | | | (457 | ) | | | 7,251 | | | | 8,590 | |
| Minnesota Intermediate Tax Free Fund | | | 20 | | | | 444 | | | | 88 | | | | — | | | | 78 | | | | 630 | |
| Minnesota Tax Free Fund | | | 34 | | | | 289 | | | | 10 | | | | (1,166 | ) | | | (9,206 | ) | | | (10,039 | ) |
| Missouri Tax Free Fund | | | 4 | | | | 467 | | | | 686 | | | | — | | | | (6,400 | ) | | | (5,243 | ) |
| Nebraska Tax Free Fund | | | 6 | | | | 105 | | | | — | | | | (375 | ) | | | (826 | ) | | | (1,090 | ) |
| Ohio Tax Free Fund | | | — | | | | 138 | | | | — | | | | (477 | ) | | | (794 | ) | | | (1,133 | ) |
| Oregon Intermediate Tax Free Fund | | | 16 | | | | 390 | | | | — | | | | (632 | ) | | | 2,005 | | | | 1,779 | |
| Short Tax Free Fund | | | 11 | | | | 349 | | | | — | | | | (3,423 | ) | | | 1,640 | | | | (1,423 | ) |
| Tax Free Fund | | | 198 | | | | 1,479 | | | | — | | | | (7,043 | ) | | | (35,804 | ) | | | (41,170 | ) |
| |
| |
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses deferred due to straddles.
As of June 30, 2009, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the funds’ fiscal year-ends as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Expiration Year | |
| | |
| Fund | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | Total | |
| | |
| Arizona Tax Free Fund | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 33 | | | $ | 45 | | | $ | 78 | |
| Intermediate Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 256 | | | | 256 | |
| Nebraska Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 25 | | | | 333 | | | | 358 | |
| Ohio Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 225 | | | | 225 | |
| Oregon Intermediate Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 38 | | | | 551 | | | | 589 | |
| Short Tax Free Fund | | | — | | | | — | | | | — | | | | 153 | | | | 550 | | | | 1,144 | | | | — | | | | 312 | | | | 2,159 | |
| |
| |
Certain funds incurred a loss for tax purposes for the period from November 1, 2008 to June 30, 2009. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2010. The following funds had deferred losses:
| | | | | |
| Fund | | Amount | |
| | |
| Intermediate Tax Free Fund | | $ | 201 | |
| Minnesota Tax Free Fund | | | 1,166 | |
| Nebraska Tax Free Fund | | | 17 | |
| Ohio Tax Free Fund | | | 252 | |
| Oregon Intermediate Tax Free Fund | | | 43 | |
| Short Tax Free Fund | | | 1,264 | |
| Tax Free Fund | | | 7,043 | |
| |
| |
DERIVATIVES – The funds adopted FASB Statement No. 161, Disclosure about Derivative Instruments and Hedging Activities (“FAS 161”), and FASB Staff Position FAS No. 133-1 and FIN 45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FAS 161 (“FAS 133-1”).
FAS 161 amends FASB Statement No. 133, Accounting for Derivatives and Hedging Activities (“FAS 133”). FAS 161 provides enhanced disclosures about the funds’ use of and accounting for derivative instruments and the effect of derivative instruments on the funds’ results of operations and financial position. Under FAS 161, disclosure regarding derivative fair value and gain/loss by contract type (e.g., interest rate contracts, foreign exchange contracts, credit contracts, etc.) is required and derivatives accounted for as hedging instruments under FAS 133 must be disclosed separately from derivatives that do not qualify for hedge accounting under FAS 133. Because investment companies account for their derivatives at fair value and record any changes in fair value in current period earnings, the funds’ derivatives are not accounted for as hedging instruments under FAS 133. As such, even though the funds may use derivatives in an attempt to achieve an economic hedge, the funds’ derivatives are not considered to be hedging instruments under FAS 133. Currently, the funds do not trade in derivatives in a significant way.
FUTURES TRANSACTIONS – The funds are subject to interest rate risk in the normal course of pursuing their investment objectives. In order to gain exposure to or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, a fund is required to deposit cash or pledge U.S. Government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are
104 First American Funds 2009 Annual Report
recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes. During the fiscal year, Arizona Tax Free Fund, Minnesota Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund held interest rate futures contracts. The gains or losses recognized on these interest rate futures contracts are disclosed in the funds’ Statements of Operations. For the fiscal year ended June 30, 2009, the quarterly average gross notional amounts for long and short contracts for each fund were $456, $0, $0, $684, $2,169, -$8,694, and $0, respectively. As of June 30, 2009, the funds held no outstanding futures contracts.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. As of June 30, 2009, the following funds had outstanding commitments to purchase securities on a when-issued or forward-commitment basis:
| | | | | |
| Fund | | Cost | |
| | |
| Intermediate Tax Free Fund | | $ | 9,429 | |
| Missouri Tax Free Fund | | | 1,240 | |
| Ohio Tax Free Fund | | | 1,000 | |
| Tax Free Fund | | | 9,392 | |
| |
| |
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. As of June 30, 2009, the funds held no investments in illiquid securities.
INVERSE FLOATERS – As part of their investment strategy, the funds may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate (“inverse floaters”). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject a fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the funds invest in inverse floaters, the net asset value of the funds’ shares may be more volatile than if the funds did not invest in such securities. As of and for the fiscal year ended June 30, 2009, the funds held no investments in inverse floaters.
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the Securities and Exchange Commission, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds.
First American Funds 2009 Annual Report 105
| |
| Notes to Financial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
The funds did not have any interfund lending transactions during the fiscal year ended June 30, 2009.
DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
EVENTS SUBSEQUENT TO FISCAL YEAR END – Management has evaluated fund related events and transactions that occurred subsequent to June 30, 2009, through August 21, 2009, the date of issuance of the funds’ financial statements. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the funds’ financial statements.
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee equal, on an annual basis, to 0.50% of the fund’s average daily net assets. FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2010, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:
| | | | | | | | | | | | | | | |
| | | Share Class | | | |
| |
| Fund | | A | | | C | | | Y | | | |
| |
| Arizona Tax Free Fund | | | 0.75 | % | | | 1.15 | % | | | 0.50 | % | | |
| California Tax Free Fund | | | 0.65 | * | | | 1.15 | | | | 0.50 | | | |
| Colorado Tax Free Fund | | | 0.75 | | | | 1.15 | | | | 0.50 | | | |
| Intermediate Tax Free Fund | | | 0.75 | * | | | NA | | | | 0.70 | | | |
| Minnesota Intermediate Tax Free Fund | | | 0.75 | * | | | NA | | | | 0.70 | | | |
| Minnesota Tax Free Fund | | | 0.85 | * | | | 1.35 | | | | 0.70 | | | |
| Missouri Tax Free Fund | | | 0.85 | * | | | 1.35 | | | | 0.70 | | | |
| Nebraska Tax Free Fund | | | 0.75 | | | | 1.15 | | | | 0.50 | | | |
| Ohio Tax Free Fund | | | 0.75 | | | | 1.15 | | | | 0.50 | | | |
| Oregon Intermediate Tax Free Fund | | | 0.85 | | | | NA | | | | 0.70 | | | |
| Short Tax Free Fund | | | 0.75 | | | | NA | | | | 0.60 | | | |
| Tax Free Fund | | | 0.75 | * | | | 1.35 | | | | 0.70 | | | |
| |
| |
NA = Not Applicable
| | |
| | * | Prior to September 1, 2007, FAF Advisors had contractually agreed to waive fees and reimburse other fund expenses so that the total annual Class A operating expenses, after waivers by the advisor and the distributor, did not exceed 0.75%, 0.85%, 0.85%, 0.95%, and 0.95% of average daily net assets for California Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, and Tax Free Fund, respectively. Prior to June 18, 2009, FAF Advisors had contractually agreed to waive fees and reimburse other fund expenses so that the total annual Class A operating expenses, after waivers by the advisor and the distributor, did not exceed 0.95% of average daily net assets for Missouri Tax Free Fund. |
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. This reimbursement, if any, is included in “Fee waivers” in the Statements of Operations.
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, and administrative services and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.25% of the aggregate average daily net assets of all open-end funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
106 First American Funds 2009 Annual Report
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.
For the fiscal year ended June 30, 2009, custodian fees were not increased as a result of overdrafts and were not decreased as a result of interest earned.
DISTRIBUTION AND SHAREHOLDER SERVICING (12B-1) FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under Rule 12b-1 of the Investment Company Act, each of the funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% and 0.65% of each fund’s average daily net assets of Class A and Class C shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Quasar is currently waiving a portion of its 12b-1 fees for Class A shares, limiting its fees to 0.15% of average daily net assets for Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. Effective September 1, 2007, FAF Advisors is waiving an additional amount of Class A 12b-1 fees equal to 0.10%, 0.10%, 0.10%, 0.10%, and 0.20% of average daily net assets of Class A shares for California Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, and Tax Free Fund, respectively. Effective June 18, 2009, FAF Advisors is waiving an additional amount of Class A 12b-1 fees equal to 0.10% of average daily net assets of Class A shares for Missouri Tax Free Fund.
For the fiscal year ended June 30, 2009, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Intermediate Tax Free Fund | | $ | 28 | |
| Minnesota Intermediate Tax Free Fund | | | 23 | |
| Oregon Intermediate Tax Free Fund | | | 7 | |
| Short Tax Free Fund | | | 3 | |
| |
| |
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2009:
| | | | | |
| Fund | | Amount | |
| | |
| Arizona Tax Free Fund | | $ | 2 | |
| California Tax Free Fund | | | 41 | |
| Colorado Tax Free Fund | | | 12 | |
| Intermediate Tax Free Fund | | | 22 | |
| Minnesota Intermediate Tax Free Fund | | | 19 | |
| Minnesota Tax Free Fund | | | 106 | |
| Missouri Tax Free Fund | | | 48 | |
| Nebraska Tax Free Fund | | | 8 | |
| Ohio Tax Free Fund | | | 3 | |
| Oregon Intermediate Tax Free Fund | | | 6 | |
| Short Tax Free Fund | | | 3 | |
| Tax Free Fund | | | 32 | |
| |
| |
OTHER FEES AND EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended June 30, 2009, legal fees and expenses of $74 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) of 1.00% is imposed on redemptions made in the Class C shares for the first 12 months. The CDSC is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.
For the fiscal year ended June 30, 2009, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Arizona Tax Free Fund | | $ | — | |
| California Tax Free Fund | | | 88 | |
| Colorado Tax Free Fund | | | 9 | |
| Intermediate Tax Free Fund | | | 75 | |
| Minnesota Intermediate Tax Free Fund | | | 33 | |
| Minnesota Tax Free Fund | | | 116 | |
| Missouri Tax Free Fund | | | 45 | |
| Nebraska Tax Free Fund | | | 17 | |
| Ohio Tax Free Fund | | | 12 | |
| Oregon Intermediate Tax Free Fund | | | 86 | |
| Short Tax Free Fund | | | 14 | |
| Tax Free Fund | | | 68 | |
| |
| |
First American Funds 2009 Annual Report 107
| |
| Notes to Financial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
| |
| 4 > | Capital Share Transactions |
FAIF has 370 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Arizona | | | | | | | California | | | | | | | Colorado | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 39 | | | | 34 | | | | | 417 | | | | 266 | | | | | 59 | | | | 59 | | | |
| Shares issued from merger | | | — | | | | — | | | | | 459 | | | | — | | | | | 614 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 8 | | | | 9 | | | | | 39 | | | | 32 | | | | | 34 | | | | 23 | | | |
| Shares redeemed | | | (58 | ) | | | (175 | ) | | | | (444 | ) | | | (206 | ) | | | | (118 | ) | | | (344 | ) | | |
| |
| |
Total Class A transactions | | | (11 | ) | | | (132 | ) | | | | 471 | | | | 92 | | | | | 589 | | | | (262 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 17 | | | | 28 | | | | | 189 | | | | 139 | | | | | 63 | | | | 41 | | | |
| Shares issued in lieu of cash distributions | | | 3 | | | | 3 | | | | | 8 | | | | 4 | | | | | 12 | | | | 10 | | | |
| Shares redeemed | | | (8 | ) | | | (42 | ) | | | | (33 | ) | | | (49 | ) | | | | (52 | ) | | | (45 | ) | | |
| |
| |
Total Class C transactions | | | 12 | | | | (11 | ) | | | | 164 | | | | 94 | | | | | 23 | | | | 6 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 609 | | | | 369 | | | | | 1,184 | | | | 1,780 | | | | | 264 | | | | 735 | | | |
| Shares issued from merger | | | — | | | | — | | | | | 5,217 | | | | — | | | | | 4,418 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 11 | | | | 16 | | | | | 6 | | | | 8 | | | | | 10 | | | | 3 | | | |
| Shares redeemed | | | (882 | ) | | | (496 | ) | | | | (1,693 | ) | | | (1,203 | ) | | | | (879 | ) | | | (463 | ) | | |
| |
| |
Total Class Y transactions | | | (262 | ) | | | (111 | ) | | | | 4,714 | | | | 585 | | | | | 3,813 | | | | 275 | | | |
| |
| |
Net increase (decrease) in capital shares | | | (261 | ) | | | (254 | ) | | | | 5,349 | | | | 771 | | | | | 4,425 | | | | 19 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Minnesota
| | | | | | | |
| | | Intermediate
| | | | Intermediate
| | | | Minnesota
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,244 | | | | 302 | | | | | 1,026 | | | | 1,028 | | | | | 1,152 | | | | 2,021 | | | |
| Shares issued in lieu of cash distributions | | | 87 | | | | 85 | | | | | 72 | | | | 51 | | | | | 283 | | | | 286 | | | |
| Shares redeemed | | | (604 | ) | | | (559 | ) | | | | (982 | ) | | | (967 | ) | | | | (2,438 | ) | | | (2,328 | ) | | |
| |
| |
Total Class A transactions | | | 727 | | | | (172 | ) | | | | 116 | | | | 112 | | | | | (1,003 | ) | | | (21 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | — | | | | — | | | | | — | | | | — | | | | | 448 | | | | 834 | | | |
| Shares issued in lieu of cash distributions | | | — | | | | — | | | | | — | | | | — | | | | | 60 | | | | 47 | | | |
| Shares redeemed | | | — | | | | — | | | | | — | | | | — | | | | | (368 | ) | | | (265 | ) | | |
| |
| |
Total Class C transactions | | | — | | | | — | | | | | — | | | | — | | | | | 140 | | | | 616 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 16,958 | | | | 20,697 | | | | | 4,173 | | | | 3,918 | | | | | 1,806 | | | | 1,769 | | | |
| Shares issued in lieu of cash distributions | | | 258 | | | | 249 | | | | | 29 | | | | 22 | | | | | 10 | | | | 20 | | | |
| Shares redeemed | | | (15,803 | ) | | | (13,086 | ) | | | | (4,400 | ) | | | (3,082 | ) | | | | (1,892 | ) | | | (2,635 | ) | | |
| |
| |
Total Class Y transactions | | | 1,413 | | | | 7,860 | | | | | (198 | ) | | | 858 | | | | | (76 | ) | | | (846 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 2,140 | | | | 7,688 | | | | | (82 | ) | | | 970 | | | | | (939 | ) | | | (251 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Missouri
| | | | Nebraska
| | | | Ohio
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | �� | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 242 | | | | 64 | | | | | 129 | | | | 59 | | | | | 44 | | | | 15 | | | |
| Shares issued in lieu of cash distributions | | | 47 | | | | 43 | | | | | 17 | | | | 17 | | | | | 3 | | | | 1 | | | |
| Shares redeemed | | | (270 | ) | | | (205 | ) | | | | (117 | ) | | | (199 | ) | | | | (4 | ) | | | (32 | ) | | |
| |
| |
Total Class A transactions | | | 19 | | | | (98 | ) | | | | 29 | | | | (123 | ) | | | | 43 | | | | (16 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 31 | | | | — | | | | | 87 | | | | 62 | | | | | 27 | | | | 7 | | | |
| Shares issued in lieu of cash distributions | | | 1 | | | | 2 | | | | | 5 | | | | 4 | | | | | 1 | | | | — | | | |
| Shares redeemed | | | — | | | | (10 | ) | | | | (7 | ) | | | (38 | ) | | | | (13 | ) | | | — | | | |
| |
| |
Total Class C transactions | | | 32 | | | | (8 | ) | | | | 85 | | | | 28 | | | | | 15 | | | | 7 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 2,680 | | | | 3,466 | | | | | 732 | | | | 393 | | | | | 624 | | | | 1,203 | | | |
| Shares issued in lieu of cash distributions | | | 18 | | | | 15 | | | | | 9 | | | | 11 | | | | | 30 | | | | 29 | | | |
| Shares redeemed | | | (4,026 | ) | | | (2,542 | ) | | | | (556 | ) | | | (624 | ) | | | | (975 | ) | | | (530 | ) | | |
| |
| |
Total Class Y transactions | | | (1,328 | ) | | | 939 | | | | | 185 | | | | (220 | ) | | | | (321 | ) | | | 702 | | | |
| |
| |
Net increase (decrease) in capital shares | | | (1,277 | ) | | | 833 | | | | | 299 | | | | (315 | ) | | | | (263 | ) | | | 693 | | | |
| |
| |
108 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Oregon
| | | | | | | | | | | |
| | | Intermediate
| | | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 645 | | | | 77 | | | | | 152 | | | | 25 | | | | | 677 | | | | 434 | | | |
| Shares issued in lieu of cash distributions | | | 14 | | | | 13 | | | | | 5 | | | | 7 | | | | | 128 | | | | 116 | | | |
| Shares redeemed | | | (154 | ) | | | (285 | ) | | | | (46 | ) | | | (44 | ) | | | | (617 | ) | | | (590 | ) | | |
| |
| |
Total Class A transactions | | | 505 | | | | (195 | ) | | | | 111 | | | | (12 | ) | | | | 188 | | | | (40 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | — | | | | — | | | | | — | | | | — | | | | | 106 | | | | 112 | | | |
| Shares issued in lieu of cash distributions | | | — | | | | — | | | | | — | | | | — | | | | | 7 | | | | 5 | | | |
| Shares redeemed | | | — | | | | — | | | | | — | | | | — | | | | | (59 | ) | | | (46 | ) | | |
| |
| |
Total Class C transactions | | | — | | | | — | | | | | — | | | | — | | | | | 54 | | | | 71 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 2,596 | | | | 2,658 | | | | | 10,407 | | | | 5,089 | | | | | 10,641 | | | | 10,737 | | | |
| Shares issued in lieu of cash distributions | | | 9 | | | | 12 | | | | | 22 | | | | 27 | | | | | 81 | | | | 150 | | | |
| Shares redeemed | | | (2804 | ) | | | (1,440 | ) | | | | (6,768 | ) | | | (7,044 | ) | | | | (14,997 | ) | | | (17,212 | ) | | |
| |
| |
Total Class Y transactions | | | (199 | ) | | | 1,230 | | | | | 3,661 | | | | (1,928 | ) | | | | (4,275 | ) | | | (6,325 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 306 | | | | 1,035 | | | | | 3,772 | | | | (1,940 | ) | | | | (4,033 | ) | | | (6,294 | ) | | |
| |
| |
Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash.
| |
| 5 > | Investment Security Transactions |
During the fiscal year ended June 30, 2009, purchases of securities and proceeds from sales of securities, other than government securities and temporary investments in short-term securities, were as follows:
| | | | | | | | | |
| Fund | | Purchases | | | Sales | |
| | |
| Arizona Tax Free Fund | | $ | 4,169 | | | $ | 7,195 | |
| California Tax Free Fund | | | 77,440 | * | | | 22,095 | |
| Colorado Tax Free Fund | | | 66,141 | * | | | 23,298 | |
| Intermediate Tax Free Fund | | | 100,547 | | | | 81,486 | |
| Minnesota Intermediate Tax Free Fund | | | 36,829 | | | | 33,225 | |
| Minnesota Tax Free Fund | | | 40,487 | | | | 50,061 | |
| Missouri Tax Free Fund | | | 24,510 | | | | 40,821 | |
| Nebraska Tax Free Fund | | | 15,042 | | | | 12,549 | |
| Ohio Tax Free Fund | | | 5,491 | | | | 8,977 | |
| Oregon Intermediate Tax Free Fund | | | 24,010 | | | | 24,032 | |
| Short Tax Free Fund | | | 114,941 | | | | 95,814 | |
| Tax Free Fund | | | 140,034 | | | | 183,769 | |
| |
| |
| | |
| | * | California Tax Free Fund includes $59,217 from California Intermediate Tax Free Fund, and Colorado Tax Free Fund includes $48,495 from Colorado Intermediate Tax Free Fund that were acquired in fund mergers as described in Note 8. These amounts are excluded for purposes of calculating the funds’ portfolio turnover rates. |
| |
| 6 > | Concentration of Credit Risk |
Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund invest in debt instruments of municipal issuers in specific states. Although these funds monitor investment concentration, the issuers’ ability to meet their obligations may be affected by economic developments in the specific state or region. Additionally, each state has various guidelines relating to the tax treatment of the income distributed from each fund.
As of June 30, 2009, Minnesota Intermediate Tax Free Fund and Minnesota Tax Free Fund each had a significant portion of their assets invested in the healthcare sector. The healthcare sector may be more greatly impacted by investment performance, financing costs, demand for elective procedures, bad debt experience, and government reimbursement rates. However, within the healthcare sector, the funds hold bonds that are pre-refunded or escrowed to maturity issues. These bonds are typically backed by U.S. Government obligations, which secure the timely payment of principal and interest, and therefore, reduce the risk.
7 > Indemnifications
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
First American Funds 2009 Annual Report 109
| |
| Notes to Financial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
As of the close of business on January 16, 2009, California Tax Free Fund and Colorado Tax Free Fund acquired the assets and assumed the liabilities of California Intermediate Tax Free Fund and Colorado Intermediate Tax Free Fund, respectively. Each acquiring fund was deemed to be the accounting survivor in each acquisition. The reorganizations were completed after shareholders approved the mergers on December 30, 2008.
The mergers were accomplished by tax free exchanges as detailed below:
| | | | | | | | | | | | | | | | | |
| California Tax Free Fund | | Class A | | | Class C | | | Class Y | | | Total | |
| | |
| Net assets of California Intermediate Tax Free Fund | | $ | 4,782 | | | | — | | | $ | 54,350 | | | $ | 59,132 | |
| |
| |
| California Intermediate Tax Free Fund shares exchanged | | | 481 | | | | — | | | | 5,458 | | | | 5,939 | |
| |
| |
| California Tax Free Fund shares issued | | | 459 | | | | — | | | | 5,217 | | | | 5,676 | |
| |
| |
| Net assets of California Tax Free Fund immediately before the merger | | $ | 13,536 | | | $ | 2,718 | | | $ | 22,462 | | | $ | 38,716 | |
| |
| |
| Net assets of California Tax Free Fund immediately after the merger | | $ | 18,318 | | | $ | 2,718 | | | $ | 76,812 | | | $ | 97,848 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| Colorado Tax Free Fund | | Class A | | | Class C | | | Class Y | | | Total | |
| | |
| Net assets of Colorado Intermediate Tax Free Fund | | $ | 5,874 | | | | — | | | $ | 42,389 | | | $ | 48,263 | |
| |
| |
| Colorado Intermediate Tax Free Fund shares exchanged | | | 577 | | | | — | | | | 4,170 | | | | 4,747 | |
| |
| |
| Colorado Tax Free Fund shares issued | | | 614 | | | | — | | | | 4,418 | | | | 5,032 | |
| |
| |
| Net assets of Colorado Tax Free Fund immediately before the merger | | $ | 4,995 | | | $ | 2,897 | | | $ | 15,034 | | | $ | 22,926 | |
| |
| |
| Net assets of Colorado Tax Free Fund immediately after the merger | | $ | 10,869 | | | $ | 2,897 | | | $ | 57,423 | | | $ | 71,189 | |
| |
| |
The components of California Intermediate Tax Free Fund’s and Colorado Intermediate Tax Free Fund’s net assets prior to adjustments for any permanent book-to-tax differences at the merger date were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Accumulated Net
| | | | |
| | | | | | Portfolio
| | | Undistributed Net
| | | Realized Gain
| | | Net Unrealized
| |
| | | Total Net Assets | | | Capital | | | Investment Income | | | (Loss) | | | Appreciation | |
| | |
| California Intermediate Tax Free Fund | | $ | 59,132 | | | $ | 59,023 | | | $ | 33 | | | $ | (10 | ) | | $ | 86 | |
| |
| |
| Colorado Intermediate Tax Free Fund | | | 48,263 | | | | 47,655 | | | | 18 | | | | 4 | | | | 586 | |
| |
| |
110 First American Funds 2009 Annual Report
| |
| Notice to Shareholders | June 30, 2009 (unaudited) |
TAX INFORMATION
The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2010 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2009, each fund hereby designates long-term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the year as follows:
| | | | | | | | | | | | | | | | | | | |
| | | Long Term
| | | | | | Ordinary
| | | | | | |
| | | Capital Gains
| | | | | | Income
| | | Total
| | | |
| | | Distributions
| | | Tax Exempt
| | | Distributions
| | | Distributions
| | | |
| Fund | | (Tax Basis) | | | Interest | | | (Tax Basis) | | | (Tax Basis) (a) | | | |
| |
| Arizona Tax Free Fund | | | 0 | % | | | 100 | % | | | 0 | % | | | 100 | % | | |
| California Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Colorado Tax Free Fund | | | 6 | | | | 91 | | | | 3 | | | | 100 | | | |
| Intermediate Tax Free Fund | | | 1 | | | | 98 | | | | 1 | | | | 100 | | | |
| Minnesota Intermediate Tax Free Fund | | | 6 | | | | 94 | | | | 0 | | | | 100 | | | |
| Minnesota Tax Free Fund | | | 12 | | | | 88 | | | | 0 | | | | 100 | | | |
| Missouri Tax Free Fund | | | 4 | | | | 95 | | | | 1 | | | | 100 | | | |
| Nebraska Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Ohio Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Oregon Intermediate Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Short Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Tax Free Fund | | | 3 | | | | 97 | | | | 0 | | | | 100 | | | |
| |
| |
| | |
| | (a) | None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Additional Information Applicable to Foreign Shareholders Only:
The percentage of taxable ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows:
| | | | | | | |
| Fund | | | | | |
| |
| Arizona Tax Free Fund | | | 0.00 | % | | |
| California Tax Free Fund | | | 0.08 | | | |
| Colorado Tax Free Fund | | | 4.76 | | | |
| Intermediate Tax Free Fund | | | 0.11 | | | |
| Minnesota Intermediate Tax Free Fund | | | 1.76 | | | |
| Minnesota Tax Free Fund | | | 3.24 | | | |
| Missouri Tax Free Fund | | | 0.03 | | | |
| Nebraska Tax Free Fund | | | 0.00 | | | |
| Ohio Tax Free Fund | | | 0.11 | | | |
| Oregon Intermediate Tax Free Fund | | | 1.98 | | | |
| Short Tax Free Fund | | | 0.00 | | | |
| Tax Free Fund | | | 4.78 | | | |
| |
| |
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:
| | | | | | | |
| Fund | | | | | |
| |
| Arizona Tax Free Fund | | | 0 | % | | |
| California Tax Free Fund | | | 0 | | | |
| Colorado Tax Free Fund | | | 95 | | | |
| Intermediate Tax Free Fund | | | 99 | | | |
| Minnesota Intermediate Tax Free Fund | | | 0 | | | |
| Minnesota Tax Free Fund | | | 0 | | | |
| Missouri Tax Free Fund | | | 99 | | | |
| Nebraska Tax Free Fund | | | 0 | | | |
| Ohio Tax Free Fund | | | 0 | | | |
| Oregon Intermediate Tax Free Fund | | | 0 | | | |
| Short Tax Free Fund | | | 0 | | | |
| Tax Free Fund | | | 0 | | | |
| |
| |
First American Funds 2009 Annual Report 111
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities, is available at firstamericanfunds.com and on the Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge, upon request, by calling 800.677.FUND.
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available without charge (1) upon request by calling 800.677.FUND and (2) on the Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 800.SEC.0330.
QUARTERLY PORTFOLIO HOLDINGS
Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter end.
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).
At a meeting on May 5-7, 2009, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”). In advance of the meeting, the Board received materials relating to the Agreement, and had the opportunity to ask questions and request further information in connection with its consideration. At a subsequent meeting on June 16-18, 2009, the Board concluded its consideration of and approved the Agreement through June 30, 2010.
Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the Funds, the Board separately considered and approved the Agreement with respect to each Fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of FAF Advisors’ services to each Fund, (2) the investment performance of the Funds, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement with respect to any Fund.
Before approving the Agreement, the independent directors met in executive session with their independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality, and Extent of Investment Advisory Services
The Board examined the nature, quality, and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Funds, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the types of services customarily provided by investment advisors in the fund industry. The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer.
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, quality, and extent of the services provided by FAF Advisors under the Agreement.
112 First American Funds 2009 Annual Report
Investment Performance of the Funds
The Board considered the performance of each Fund on a gross-of-expenses basis, including comparative information provided by an independent data service, regarding the median performance of a group of comparable funds selected by that data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods reviewed by the Board all ended on February 28, 2009, except as noted below. In the case of each state-specific Fund, the Board considered that the Fund’s benchmark index is a national municipal index, rather than a state-specific index, and noted FAF Advisors’ assertion that the Board should, therefore, treat the Fund’s performance universe as a more meaningful source of comparative performance data.
Arizona Tax Free Fund. The Board considered that the Fund underperformed the performance universe median for the one-, three- and five-year periods. The Board considered FAF Advisors’ assertion that, with respect to the Fund’s performance universe, the Fund’s performance was negatively impacted during the past year primarily by the Fund’s overweight position in BBB and non-rated bonds, which experienced increasingly larger spreads during the second half of 2008. The Board also considered FAF Advisors’ assertion that during the first quarter of 2009, supply and demand for BBB bonds have become more balanced as flows into municipal bond funds that invest in lower-rated securities have increased. The Board noted that the Fund’s performance improved during the quarter ended March 31, 2009, with the Fund ranking in the 24th percentile of its performance universe. The Board concluded that, in light of the Fund’s improved performance and FAF Advisors’ long-term positive outlook, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Colorado Tax Free Fund, Minnesota Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund and Tax Free Fund. For each of these Funds, the Board considered that the Fund underperformed the performance universe median for the one-, three-, five- and, if applicable, ten-year periods, except that Short Tax Free Fund outperformed its performance universe median for the ten-year period. The Board considered FAF Advisors’ assertion that, with respect to the Funds’ performance universe, each Fund’s performance was negatively impacted during the past year primarily by the Fund’s overweight position in BBB and non-rated bonds, which experienced increasingly larger spreads during the second half of 2008. The Board considered FAF Advisors’ assertion that Fund performance for the one-year period differed so materially from its performance universe that its ranking for longer periods was impacted significantly. The Board also considered FAF Advisors’ assertion that during the first quarter of 2009, supply and demand for BBB bonds have become more balanced as flows into municipal bond funds that invest in lower-rated securities have increased. The Board noted that each Fund’s performance has improved in 2009, as the Colorado Tax Free Fund and Minnesota Tax Free Fund each ranked in the 27th percentile, the Oregon Intermediate Tax Free Fund ranked in the 12th percentile, the Short Tax Free Fund ranked in the 17th percentile and the Tax Free Fund ranked in the 5th percentile of the Funds’ respective performance universes for the quarter ended March 31, 2009. The Board concluded that, in light of each Fund’s improved performance and FAF Advisors’ outlook, it would be in the interest of each Fund and its shareholders to renew the Agreement.
California Tax Free Fund, Intermediate Tax Free Fund and Missouri Tax Free Fund. For each of these Funds, the Board considered that the Fund outperformed or performed competitively against the performance universe median for the one-, three-, five- and, if applicable, ten-year periods. The Board concluded that, in light of each Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Nebraska Tax Free Fund and Ohio Tax Free Fund. For each of these Funds, the Board considered that the Fund outperformed the performance universe median for the one-year period, though it underperformed for the three- and five-year periods. The Board concluded that, in light of each Fund’s competitive recent performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Minnesota Intermediate Tax Free Fund. The Board considered that the Fund performed competitively against the performance universe median for the five-and ten-year periods, though it underperformed the performance universe median for the one- and three-year periods. The Board also noted that the Fund’s performance has improved, with the Fund ranking in the 4th percentile of its performance universe for the quarter ended March 31, 2009. The Board concluded that, in light of the Fund’s competitive long-term performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Costs of Services and Profits Realized by FAF Advisors
The Board examined FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board examined fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.
First American Funds 2009 Annual Report 113
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s total expense ratio after waivers compared to the median total expense ratio of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
Further detail considered by the Board regarding the advisory fees and total expense ratios of each Fund is set forth below:
Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund and Tax Free Fund. For each of these Funds, the Board considered that the advisory fee, after waivers, and the total expense ratio, after waivers, were lower than or equal to the peer group median. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Minnesota Tax Free Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than the peer group median. Though the Fund’s total expense ratio was higher than the peer group median, the Board noted that it was within a range consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Missouri Tax Free Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than the peer group median. The Board also considered that the Fund’s total expense ratio was higher than the peer group median. The Board took note of FAF Advisors’ commitment to reimburse 10 basis points of Class A share Rule 12b-1 fees, which will bring the Fund’s total expense ratio within a range consistent with FAF Advisors’ pricing philosophy. The Board concluded that, in light of the foregoing, the Fund’s current advisory fee and total expense ratio are reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered information presented by FAF Advisors to support its assertion that the median total expense ratio of a Fund’s peer group should reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group and any economies of scale which those funds realize. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders will effectively receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules and any such economies of scale. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement.
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, transfer agent, distributor and custodian, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
After full consideration of these factors, the Board concluded that approval of the Agreement was in the interest of the respective Fund and its shareholders.
114 First American Funds 2009 Annual Report
Directors and Officers of the Funds
| | | | | | | | | | | |
| Independent Directors |
| | | | | | | | | | | Other
|
| | | Position(s)
| | Term of Office
| | | | Number of Portfolios
| | Directorships
|
Name, Address, and
| | Held
| | and Length of
| | Principal Occupation(s)
| | in Fund Complex
| | Held by
|
| Year of Birth | | with Funds | | Time Served | | During Past 5 Years | | Overseen by Director | | Director † |
| |
Benjamin R. Field III
P.O. Box 1329
Minneapolis, MN
55440-1329
(1938) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | | Retired | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Roger A. Gibson
P.O. Box 1329
Minneapolis, MN
55440-1329 (1946) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
October 1997 | | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 until retirement in June 2004 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Victoria J. Herget
P.O. Box 1329
Minneapolis, MN
55440-1329 (1951) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | | Investment consultant and non-profit board member since 2001; Board Chair, United Educators Insurance Company | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
John P. Kayser
P.O. Box 1329
Minneapolis, MN
55440-1329 (1949) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
October 2006 | | Retired; Principal from 1983 to 2004, William Blair & Company, LLC, a Chicago-based investment firm | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Leonard W. Kedrowski
P.O. Box 1329
Minneapolis, MN
55440-1329 (1941) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993 | | Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Richard K. Riederer
P.O. Box 1329
Minneapolis, MN
55440-1329 (1944) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
August 2001 | | Owner and Chief Executive Officer, RKR Consultants, Inc., a consulting company providing advice on business strategy, mergers and acquisitions, and non-profit board member since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | Cliffs Natural Resources, Inc. (a
producer of
iron ore
pellets and coal) |
| |
| |
Joseph D. Strauss
P.O. Box 1329
Minneapolis, MN
55440-1329 (1940) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
April 1991 | | Attorney At Law, Owner, and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman, and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning, and public relations organization; Owner, Chairman, and Chief Executive Officer, ExcensusTM LLC, a strategic demographic planning and application development firm | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Virginia L. Stringer
P.O. Box 1329
Minneapolis, MN
55440-1329 (1944) | | Chair; Director | | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | | Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Chair, St. Paul Riverfront Corporation, since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
First American Funds 2009 Annual Report 115
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
| | | | | | | | | | | |
| Independent Directors – concluded |
| | | | | | | | | | | Other
|
| | | Position(s)
| | Term of Office
| | | | Number of Portfolios
| | Directorships
|
Name, Address, and
| | Held
| | and Length of
| | Principal Occupation(s)
| | in Fund Complex
| | Held by
|
| Year of Birth | | with Funds | | Time Served | | During Past 5 Years | | Overseen by Director | | Director † |
| |
James M. Wade
P.O. Box 1329
Minneapolis, MN
55440-1329 (1943) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
August 2001 | | Owner and President, Jim Wade Homes, a homebuilding company | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
| |
| † | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800.677.FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
116 First American Funds 2009 Annual Report
| | | | | | | |
| Officers |
| | | Position(s)
| | Term of Office
| | |
Name, Address, and
| | Held
| | and Length of
| | |
| Year of Birth | | with Funds | | Time Served | | Principal Occupation(s) During Past 5 Years |
| |
Thomas S. Schreier, Jr.
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1962)* | | President & Vice
President – Investments | | Re-elected by the Board annually; President of FAIF since February 2001 | | Chief Executive Officer, FAF Advisors, Inc.; Chief Investment Officer, FAF Advisors, Inc., since September 2007 |
| |
| |
Jeffery M. Wilson
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1956)* | | Vice President – Administration | | Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000 | | Senior Vice President, FAF Advisors, Inc. |
| |
| |
Charles D. Gariboldi, Jr.
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1959)* | | Treasurer | | Re-elected by the Board annually; Treasurer of FAIF since October 2004 | | Mutual Funds Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of Investment Accounting and Fund Treasurer, Thrivent Financial for Lutherans |
| |
| |
Jill M. Stevenson
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1965)* | | Assistant Treasurer | | Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005 | | Mutual Funds Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. |
| |
| |
David H. Lui
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1960)* | | Chief Compliance Officer | | Re-elected by the Board annually; Chief Compliance Officer of FAIF since March 2005 | | Chief Compliance Officer, First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc., and Chief Compliance Counsel, Franklin Templeton Investments |
| |
| |
Jason K. Mitchell
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1976)* | | Anti-Money Laundering Officer | | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since December 2008 and from September 2006 through August 2008 | | Compliance Manager, FAF Advisors, Inc., since June 2006; prior thereto, Compliance Analyst, FAF Advisors, Inc., from October 2004 to June 2006; prior thereto, Senior Systems Helpdesk Analyst, Wachovia Retirement Services |
| |
| |
Kathleen L. Prudhomme
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1953)* | | Secretary | | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF from September 1998 through December 2004 | | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm |
| |
| |
James D. Alt
Dorsey & Whitney, LLP
50 South Sixth Street
Suite 1500,
Minneapolis, MN 55402
(1951) | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002 | | Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm |
| |
| |
James R. Arnold
U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(1957)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003 | | Senior Vice President, U.S. Bancorp Fund Services, LLC |
| |
| |
Richard J. Ertel
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1967)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004 | | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc., from September 2004 to May 2006; prior thereto, Counsel, FAF Advisors, Inc. |
| |
| |
Michael W. Kremenak
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1978)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since February 2009 | | Counsel, FAF Advisors Inc., since January 2009; prior thereto, Associate, Skadden, Arps, Slate, Meagher & Flom LLP, from September 2005 to January 2009 |
| |
| |
| |
| * | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, Ertel, and Kremenak, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Mr. Arnold is an officer of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as transfer agent for FAIF. |
First American Funds 2009 Annual Report 117
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair of Saint Paul Riverfront Corporation;
former Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Director of Charterhouse Group, Inc.
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; Chair of United Educators Insurance Company;
former Managing Director of Zurich Scudder Investments
John Kayser
Director of First American Investment Funds, Inc.
Retired; former Principal, Chief Financial Officer, and Chief Administrative
Officer of William Blair & Company, LLC
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Owner and Chief Executive Officer of RKR Consultants, Inc.
Joseph Strauss
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
First American Investment Funds’ Board of Directors is comprised entirely of
independent directors.
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the fiscal year ended June 30, 2009. The portfolio managers views are subject to change at any time based upon market or other conditions. This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.
The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
| | | | | |
INVESTMENT ADVISOR
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, Minnesota 55402
ADMINISTRATOR
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, Minnesota 55402
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202 | | CUSTODIAN
U.S. Bank National Association
60 Livingston Avenue
St. Paul, Minnesota 55101
DISTRIBUTOR
Quasar Distributors, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202 | | INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
Dorsey & Whitney LLP
50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402 |
In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
0202-09 8/2009 AR-TAXFREEINCOME
Table of Contents
| | | | | |
| | | 1 | |
| | | 2 | |
Management Discussions and
Performance Summaries | | | 4 | |
| | | 20 | |
| | | 24 | |
| | | 25 | |
| | | 64 | |
| | | 68 | |
| | | 70 | |
| | | 74 | |
| | | 84 | |
| | | 103 | |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2009.
This report includes portfolio commentaries, comparative performance graphs and tables, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.
Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.
Sincerely,
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Virginia L. Stringer
Chairperson of the Board
First American Investment Funds, Inc. | | Thomas S. Schreier, Jr.
President
First American Investment Funds, Inc. |
First American Funds 2009 Annual Report 1
As a shareholder in First American Funds, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.
The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (common stock, bonds, etc.) and by industry classification (banking, communications, etc.). This information is useful for analyzing how your fund’s assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and presents the fund’s net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the fund’s net assets (assets minus liabilities) by the number of shares outstanding. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund’s assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet paid.
The Statement of Operations details the dividends and interest income earned from securities as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.
The Statement of Changes in Net Assets describes how the fund’s net assets were affected by its operating results, distributions to shareholders, and shareholder transactions during the reporting period. This statement is important to investors because it shows exactly what caused the fund’s net asset size to change during the period.
The Financial Highlights provide a per-share breakdown of the components that affected the fund’s NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. Expense ratios can vary across funds for a number of reasons, including differences in advisory fees and the average shareholder account size. The portfolio turnover rate represents the percentage of the fund’s holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase and sale of securities.
The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies.
We hope this guide to your shareholder report will help you get the most out of this important resource. You can visit First American Funds’ website for other useful information on each of our funds, including fund prices, performance, fund manager bios, dividends, and downloadable fact sheets. For more information, call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
2 First American Funds 2009 Annual Report
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Core Bond Fund
Investment Objective: providing high current income consistent with limited risk to capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Core Bond Fund (the “fund”), Class Y shares, returned -1.22% for the fiscal year ended June 30, 2009 (Class A shares returned -1.37% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Aggregate Bond Index*, returned 6.05% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
Fund performance was negatively affected by greater-than-expected volatility of the financial markets. We had positioned the fund with overweights to corporate bonds, particularly in the financial sector, and securitized debt in mid-2008 at what were historically cheap valuations at the time. We believed that the economic downturn would be manageable and policy actions would be supportive; in hindsight we proved to be early in adding to these positions given the harshness of the post-Lehman Brothers bankruptcy environment. On the positive side, the fund has avoided significant permanent impairments and has recovered strongly as the market has stabilized.
What strategic moves were made by the fund and why?
As the credit crunch accelerated and uncertainty regarding the repayment of even the highest quality bonds mounted, we rigorously reviewed our fundamental credit and structural analysis to optimize portfolio recovery value. Our comfort level with the fundamental creditworthiness of the fund’s assets allowed us to weather the storm and to retain our conviction toward overweights to corporate and mortgage securities. As 2009 progressed, we opportunistically added to our corporate bond position as many new issues came to market at concessions. We generally funded these additions by reducing our exposure to agency mortgage securities, which we think have become too expensive as a result of ongoing noneconomic purchases of these securities by the Federal Reserve to keep mortgage rates at low levels. Looking ahead, we believe that the economy will return to positive growth in the latter half of 2009 and that the expansion, though meager by historical post-recession standards, will be robust enough to extend the recent outperformance of most non-Treasury securities.
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| * | Unlike mutual funds, index returns and category averages do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
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| Corporate Bonds | | | 44 | .8 | % |
| U.S. Government Agency Mortgage-Backed Securities | | | 26 | .0 | |
| Asset-Backed Securities | | | 20 | .5 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 9 | .4 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 3 | .0 | |
| U.S. Government & Agency Securities | | | 0 | .6 | |
| Preferred Stocks | | | 0 | .1 | |
| Short-Term Investments | | | 2 | .0 | |
Other Assets and Liabilities, Net2 | | | (6 | .4 | ) |
| | | | | | |
| | | | 100 | .0 | % |
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Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| AAA | | | 42 | .9 | % |
| AA | | | 5 | .0 | |
| A | | | 18 | .2 | |
| BBB | | | 26 | .3 | |
| BB or Lower | | | 7 | .6 | |
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| | | | 100 | .0 | % |
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| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
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| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
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| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
4 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
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| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
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Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (5 | .55)% | | | 1.90 | % | | | 3.90 | % | | | — | |
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| Class B | | | (6 | .74)% | | | 1.66 | % | | | 3.59 | % | | | — | |
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| Class C | | | (3 | .13)% | | | 2.00 | % | | | 3.58 | % | | | — | |
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Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | (1 | .37)% | | | 2.78 | % | | | 4.36 | % | | | — | |
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| Class B | | | (2 | .12)% | | | 2.00 | % | | | 3.59 | % | | | — | |
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| Class C | | | (2 | .21)% | | | 2.00 | % | | | 3.58 | % | | | — | |
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| Class R | | | (1 | .43)% | | | 2.59 | % | | | — | | | | 3.17 | % |
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| Class Y | | | (1 | .22)% | | | 3.02 | % | | | 4.61 | % | | | — | |
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Barclays Capital Aggregate Bond Index3 | | | 6 | .05% | | | 5.01 | % | | | 5.98 | % | | | 5.16 | % |
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The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
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| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0.0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
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| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.01%, 1.76%, 1.76%, 1.26%, and 0.76%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.95%, 1.70%, 1.70%, 1.20%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital Aggregate Bond Index3.
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| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
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| 3 | An unmanaged index comprised of the Barclays Capital Government/Credit Bond Index, the Barclays Capital Mortgage-Backed Securities Index, and the Barclays Capital Asset-Backed Securities Index. The Barclays Capital Government/Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Barclays Capital Mortgage-Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Barclays Capital Asset-Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans. |
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| 4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 5
High Income Bond Fund
Investment Objective: providing high level of current income
How did the fund perform for the fiscal year ended June 30, 2009?
The First American High Income Bond Fund (the “fund”), Class Y shares, returned -7.01% for the fiscal year ended June 30, 2009 (Class A shares returned -7.26% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) High Yield 2% Issuer Capped Index*, returned -1.91% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in high yield loans and bonds. The environment worsened for high yield on a couple of different fronts. First, amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-yield bonds caused by indiscriminate selling created unprecedented volatility along with severe price declines. Later, as the credit crunch spilled over into the real economy, investors became concerned about the ability of high-yield issuers to refinance debt. During this period of much tighter credit conditions, the specter of corporate defaults loomed large. High-yield corporate bonds suffered through their worst performance on record during 2008 as losses during this period essentially wiped out five years of gains. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
On December 16, the option-adjusted spread on the fund’s benchmark index widened from 569 bp (basis points) to an all-time high of 1,971 bp over Treasuries, in response to the dramatic events within the global financial sector, including the collapse of Lehman Brothers in late September. This dramatic spread-widening resulted in price declines within the fund, especially during the fourth quarter. As the macro backdrop weakened significantly during the summer months, market liquidity all but dried up, making risk-reduction very challenging. In this environment, only Treasuries and the very safest of corporate securities were spared from severe price declines. Fund underperformance during this period was mostly a result of “mark to market” risk (i.e. prices of less liquid securities being marked down in price as a direct result of the lack of market liquidity and/or indiscriminate forced selling from overleveraged investors). The fund’s performance benefited by avoiding the most highly levered, late-cycle leveraged buyout (LBO) credits (those that were predominantly brought to market during 2007) and maintaining underweights to the auto and housing sectors. Exposure to a handful of smaller, cyclical credits in the basic industries sector detracted from performance as worldwide demand for steel, aluminum, chemicals, and forest products fell in the fourth quarter of 2008 and into 2009. Challenging credit conditions during the period were reflected by a significantly higher number of defaulted bonds in the fund’s portfolio, year over year.
What strategic moves were made by the fund and why?
As the worst of the financial crisis began to take hold, the fund took steps to reduce portfolio risk wherever liquidity allowed and to underweight the lower-rated tiers within the high-yield universe (single-B and CCC-rated securities). Again, this was not always possible, as most market participants were attempting to do the same. As the financial crisis began to grow from one of systemic risk to one of broader economic risk, the fund took further steps to reduce exposure to cyclical credits in favor of defensive sectors such as food and beverage, supermarkets, and utilities. Finally, after the market lost nearly one-third (-29.82%) of its value during the fall of 2008, we determined that market prices had overreacted on the downside and selectively began to add risk back into the portfolio. We brought our weighting in CCC-rated securities, those securities that had suffered a 44.3% price decline in 2008, back in line with the market index, and also added securities in the auto finance and technology sectors. These moves began to pay off in 2009 as the market snapped back with a vengeance starting in March 2009. We have also begun to add back investments in selected financials, as the surviving financial entities should emerge from the recent bout of market stress with sounder balance sheets and improved prospects. We had decreased our exposure to emerging market corporates in 2008, but here again we hope to begin looking at new opportunities as the financial markets and world economy continue to stabilize.
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| * | Unlike mutual funds, index returns and category averages do not reflect any expenses, transaction costs, or cash flow effects |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| High Yield Corporate Bonds | | | 77 | .3 | % |
| Investment Grade Corporate Bonds | | | 5 | .3 | |
| Convertible Securities | | | 3 | .4 | |
| Preferred Stocks | | | 2 | .5 | |
| Exchange-Traded Funds | | | 2 | .3 | |
| Closed-End Funds | | | 1 | .6 | |
| Asset-Backed Securities | | | 0 | .6 | |
| Common Stocks | | | 0 | .6 | |
| Short-Term Investments | | | 5 | .9 | |
Other Assets and Liabilities, Net2 | | | 0 | .5 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
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Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| A or Higher | | | 5 | .0 | % |
| BBB | | | 10 | .6 | |
| BB | | | 35 | .4 | |
| B | | | 27 | .5 | |
| CCC or Lower | | | 21 | .5 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
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| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
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| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
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| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
6 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 8/30/2001 | | 9/24/20014 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (11.16 | )% | | | 2.12 | % | | | 3.27 | % | | | — | |
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| Class B | | | (12.12 | )% | | | 1.95 | % | | | 3.11 | % | | | — | |
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| Class C | | | (8.81 | )% | | | 2.25 | % | | | 3.08 | % | | | — | |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | (7.26 | )% | | | 3.01 | % | | | 3.85 | % | | | — | |
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| Class B | | | (7.99 | )% | | | 2.23 | % | | | 3.11 | % | | | — | |
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| Class C | | | (7.98 | )% | | | 2.25 | % | | | 3.08 | % | | | — | |
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| Class R | | | (7.49 | )% | | | 2.75 | % | | | — | | | | 4.35 | % |
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| Class Y | | | (7.01 | )% | | | 3.27 | % | | | 4.13 | % | | | — | |
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Barclays Capital High Yield 2% Issuer Capped Index3 | | | (1.91 | )% | | | 4.36 | % | | | 6.11 | % | | | 7.13 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
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| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0.0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
The fund invests in lower-rated and non-rated securities which present a greater risk of loss to principal and interest than higher-rated securities.
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| | Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
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| | The fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices. |
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| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.35%, 2.10%, 2.10%, 1.60%, and 1.10%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.10%, 1.85%, 1.85%, 1.35%, and 0.85%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,5 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 8/30/2001 to 6/30/2009) as compared to the Barclays Capital High Yield 2% Issuer Capped Index3.
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| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
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| 3 | An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity with total index allocation to an individual issuer being limited to 2%. |
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| 4 | The performance since inception of the index is calculated from the month end following the inception of the class. |
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| 5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 7
Inflation Protected Securities Fund
Investment Objective: providing total return while providing protection against inflation
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Inflation Protected Securities Fund (the “fund”), Class Y shares, returned -2.03% for the fiscal year ended June 30, 2009 (Class A shares returned -2.18% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) U.S. TIPS Index*, returned -1.11% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
The Treasury Inflation Protected Securities (“TIPS”) market was not immune to the increasingly downbeat economic outlook; nor was it immune to the deleveraging forces that took valuations to levels reflecting dire deflationary prospects. 2009 has seen a rapid normalization of valuations in TIPS, as investors tempered their concerns about deflation. As economic news improved, the larger concern has become hyperinflation, with investors increasingly worried about the inflationary impact of the Federal Reserve’s extraordinarily accommodative monetary policy measures.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s allocation to non-Treasury bonds presented the most significant drag on performance during the fiscal year. Financial market dislocations in the second half of 2008, coupled with sharply lower economic growth expectations and aggressive Federal Reserve (the “Fed”) easing of interest rates, conspired to push Treasury rates to historically low yield levels and conversely, risk assets to historically wide spreads. TIPS performed in concert with risk assets, turning in a horrific performance in the second half of 2008, only to recover strongly year-to-date in 2009. The fund was successful in its tactical duration strategy during the period, taking advantage of extreme shifts in sentiment that saw rates traverse a wide range. TIPS breakeven strategy – seeking to benefit from differences between TIPS and Treasury yields relative to the rate of inflation – successfully took advantage of the cheapening of TIPS in 2008 but gave back some gains with the strong normalization in 2009, for a net small drag to fund performance. Our positioning for a steeper yield curve was productive, as both investors’ preference for safety and the Fed easing benefited the front end of the Treasury curve, while increasingly poor sponsorship of the Treasury market, particularly at ever richer yield levels, punished the longer maturities.
What strategic moves were made by the fund and why?
We increased the fund’s allocation to risk (non-Treasury) sectors, on the view that with the cheapening of these assets, valuations more than fully reflected the deteriorating economic and credit fundamentals. We have reduced the fund’s allocation to TIPS in the rapid normalization during the first half of 2009, as inflation should remain low and in fact decline further in the context of a slow recovery in the economy. Since seasonal trends should begin to turn less favorable for Consumer Price Index adjustments, we reduced our positions in shorter maturity TIPS in favor of those with longer maturity.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| U.S. Government & Agency Securities | | | 89 | .1 | % |
| Asset-Backed Securities | | | 4 | .2 | |
| Corporate Bonds | | | 2 | .4 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Security | | | 1 | .0 | |
| Municipal Bond | | | 0 | .5 | |
| Convertible Securities | | | 0 | .2 | |
| Preferred Stocks | | | 0 | .1 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security | | | 0 | .1 | |
| Exchange-Traded Fund | | | 0 | .1 | |
| Short-Term Investments | | | 2 | .4 | |
Other Assets and Liabilities, Net2 | | | (0 | .1 | ) |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| AAA | | | 95 | .1 | % |
| AA | | | 0 | .5 | |
| A | | | 0 | .8 | |
| BBB | | | 1 | .3 | |
| BB or Lower | | | 2 | .3 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
8 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | | | | | 1 year | | 10/01/2004 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | (6.31 | )% | | | 2.58 | % |
| |
| |
| Class C | | | | | | | | | | | (3.97 | )% | | | 2.70 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | (2.18 | )% | | | 3.52 | % |
| |
| |
| Class C | | | | | | | | | | | (3.03 | )% | | | 2.70 | % |
| |
| |
| Class R | | | | | | | | | | | (2.43 | )% | | | 3.29 | % |
| |
| |
| Class Y | | | | | | | | | | | (2.03 | )% | | | 3.74 | % |
| |
| |
Barclays Capital U.S. TIPS Index3 | | | | | | | | | | | (1.11 | )% | | | 4.50 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
| |
| | Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
| |
| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class C, Class R, and Class Y shares was 1.08%, 1.83%, 1.33%, and 0.83%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class C, Class R, and Class Y shares do not exceed 0.85%, 1.60%, 1.10%, and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/01/2004 to 6/30/2009) as compared to the Barclays Capital U.S. TIPS Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index comprised of inflation-protected securities issued by the U.S. Treasury that have at least one year to final maturity, at least $250 million par amount outstanding, and are investment-grade rated (Baa or better). |
| |
| 4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 9
Intermediate Government Bond Fund
Investment Objective: providing current income that is exempt from state income tax, to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Intermediate Government Bond Fund (the “fund”), Class Y shares, returned 5.46% for the fiscal year ended June 30, 2009 (Class A shares returned 5.30% without taking the sales charge into account). By comparison, the fund’s benchmarks, the Barclays Capital (formerly Lehman) Intermediate Treasury Bond Index*, returned 6.13% and the Barclays Capital (formerly Lehman) Intermediate Government Bond Index*, returned 6.42% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
Amid the fear and panic, Treasuries enjoyed a singular bid that saw yields dive to historically low levels. With the return of calm and the willingness and ability to take risks, investors have broadly sold Treasuries, rejecting the low yield levels and seeking out opportunities in non-Treasury sectors.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s allocation to agency debt securities hurt performance as all non-Treasury products, including agencies, performed poorly. Agency securities also underperformed Treasuries as the government-sponsored entities like Fannie Mae and Freddie Mac came under close scrutiny for their subprime and Alt-A (riskier than prime but less so than subprime) holdings and declining capital. The fund was successful in its tactical duration strategy during the period, taking advantage of extreme shifts in sentiment that saw rates traverse a wide range. Our positioning for a steeper yield curve was productive, as both investors’ preference for safety and the Federal Reserve (the “Fed”) easing benefited the front end of the Treasury curve. The fund’s position in non-index Treasury inflation-protected securities (“TIPS”) benefited fund performance, especially during the first half of 2009, amid the rapid normalization of TIPS breakeven rates (i.e., differences between TIPS and Treasury yields relative to the rate of inflation).
What strategic moves were made by the fund and why?
We have steadily reduced the fund’s allocation to agency debt securities as these securities have risen to near-historically tight spread levels, largely due to Fed buybacks. Our duration strategy will continue to be tactical, but with a bias to be short the benchmark, as technical factors (a large Treasury supply and poor investor sponsorship) will likely continue to weigh on rates.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| U.S. Government & Agency Securities | | | 96 | .2 | % |
| Short-Term Investments | | | 4 | .1 | |
Other Assets and Liabilities, Net2 | | | (0 | .3 | ) |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. |
10 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10/25/2002 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 2 | .98% | | | 3.92 | % | | | 3.33 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 5 | .30% | | | 4.39 | % | | | 3.68 | % |
| |
| |
| Class Y | | | 5 | .46% | | | 4.55 | % | | | 3.84 | % |
| |
| |
Barclays Capital Intermediate Treasury Bond Index3 | | | 6 | .13% | | | 4.92 | % | | | 4.22 | % |
| |
| |
Barclays Capital Intermediate Government Bond Index4 | | | 6 | .42% | | | 5.00 | % | | | 4.35 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
| |
| | Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. |
| |
| | Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
| |
| | As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.34% and 1.09%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors. |
Value of $10,000 Investment1,2,5 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2009) as compared to the Barclays Capital Intermediate Treasury Bond Index3 and the Barclays Capital Intermediate Government Bond Index4.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index comprised of public obligations of the U.S. Treasury with a remaining maturity between one and 10 years. |
| |
| 4 | Previously, the fund used the Barclays Capital Intermediate Treasury Bond Index as a benchmark. Going forward, the fund’s performance will be compared to the Barclays Capital Intermediate Government Bond Index because it more closely reflects the fund’s investment universe. The Barclays Capital Intermediate Government Bond Index is an unmanaged index comprised of 70% U.S. Treasury securities and 30% agency securities, all with remaining maturities of between one and ten years. |
| |
| 5 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 11
Intermediate Term Bond Fund
Investment Objective: providing current income to the extent consistent with preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Intermediate Bond Fund (the “fund”), Class Y shares, returned 1.26% for the fiscal year ended June 30, 2009 (Class A shares returned 1.21% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Intermediate Government/Credit Bond Index* returned 5.27% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
Greater-than-expected volatility of the financial markets hampered fund performance. In mid-2008, we had positioned the fund with overweights to corporate bonds (especially in the financial sector) and securitized debt, hoping to benefit from what were historically cheap valuations at the time. Our conviction that the economic downturn would be manageable and policy actions supportive was challenged by the harshness of the post-Lehman Brothers bankruptcy environment. In retrospect, it is clear that we should have deferred adding to the fund’s corporate bond positions till later in the fiscal year. On the positive note, we have steered the fund clear from any significant or lasting impairment. In fact, the fund’s performance has enjoyed a rebound as the market has stabilized.
What strategic moves were made by the fund and why?
Prompted by the accelerating credit crunch and the uncertainty regarding the integrity of even the highest quality bonds, we launched an extensive review of our fundamental credit and structural analysis to optimize portfolio recovery value. This scrutiny confirmed the fundamental creditworthiness of the fund’s assets, helping us stay the course and validating our earlier move to overweight corporates and mortgage securities. Throughout the first two quarters of 2009, we opportunistically added to our corporate bond position as many new issues came to market at concessions. We generally funded these additions by trimming the fund’s positions in high-quality Treasury and agency securities’ which offered little value after the flight to quality of 2008. As we look ahead, we expect the economy to return to positive growth in the latter half of 2009. This expansion, though meager by historical post-recession standards, should prove enough to extend the recent outperformance of most non-Treasury securities.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | |
| Corporate Bonds | | | 56.4 | % |
| Asset-Backed Securities | | | 25.8 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 4.7 | |
| U.S. Government & Agency Securities | | | 3.6 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 2.6 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 1.8 | |
| Municipal Bond | | | 0.2 | |
| Preferred Stocks | | | 0.1 | |
| Short-Term Investments | | | 3.7 | |
Other Assets and Liabilities, Net2 | | | 1.1 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | |
| AAA | | | 36.8 | % |
| AA | | | 5.3 | |
| A | | | 22.3 | |
| BBB | | | 30.0 | |
| BB or Lower | | | 5.6 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
12 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (1 | .09)% | | | 2.78 | % | | | 4.36 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 1 | .21% | | | 3.24 | % | | | 4.59 | % |
| |
| |
| Class Y | | | 1 | .26% | | | 3.39 | % | | | 4.77 | % |
| |
| |
Barclays Capital Intermediate Government/Credit Bond Index3 | | | 5 | .27% | | | 4.57 | % | | | 5.66 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.01% and 0.76%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.85% and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital Intermediate Government/Credit Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. In each case with maturities or one to 10 years. |
| |
| 4 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 13
Short Term Bond Fund
Investment Objective: providing current income while maintaining a high degree of principal stability
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Short Term Bond Fund (the “fund”), Class Y shares, returned 2.48% for the fiscal year ended June 30, 2009 (Class A shares returned 2.22% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barlcays Capital (formerly Lehman) 1-3 Year Government/Credit Bond Index*, returned 4.90% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
Fund performance was mixed during the fiscal year. The fund is generally underweight in Treasuries compared to its benchmark, which caused it to lag amid the flight to quality in the fourth quarter of 2008. The fund is also typically positioned with a large weighting – between 25% and 50% of fund assets – to extremely high-quality securitized paper. This segment of the market was perhaps the most levered of all fixed-income sectors heading into 2008 and, as leverage was unwound, performed much worse than expected amid the massive forced selling in the fourth quarter of 2008. At the same time, the fund generally avoided pitfalls surrounding subprime, collateralized debt obligations (CDOs), and other leveraged structures that resulted in many permanent impairments across the fixed-income market. Consequently, the fund has shown a high propensity for recovery – both against the benchmark and against peers – as debt markets stabilize.
What strategic moves were made by the fund and why?
As the credit crunch accelerated and uncertainty regarding the repayment of even the highest quality bonds mounted, we rigorously reviewed our fundamental credit and structural analysis to optimize portfolio recovery value. Our comfort level with the fundamental creditworthiness of the fund’s assets allowed us to weather the storm and to retain our conviction toward overweights to corporate and mortgage securities.
Forced selling late in the year caused most segments of the asset-backed securities market to trade at significant discounts to their intrinsic value. We added significantly to our positions in tier-one credit card and auto-securitized paper in late 2008 and early 2009 as we felt these sectors would regain sponsorship as the U.S. implemented policy initiatives to restart the securitized market by lining up favorable financing terms for newly issued securities as the year unfolded. We also selectively added to our positions in corporate bonds, both new issue and secondary, as we believe this sector will continue to perform well as the economic recovery unfolds. We funded these new positions by investing stockpiled cash and by reducing our exposure to short maturity residential mortgage securities, which we view as relatively unattractive given heightened levels of prepayment risk in the low-rate environment. Looking ahead, we expect short Treasury securities to continue to post low returns due to a combination of extremely low rates and high levels of issuance. The fund will be positioned with an underweight to Treasuries for the foreseeable future.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| Asset-Backed Securities | | | 36 | .2 | % |
| Corporate Bonds | | | 28 | .1 | |
| U.S. Government & Agency Securities | | | 13 | .5 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 8 | .9 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 6 | .9 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 3 | .5 | |
| Short-Term Investments | | | 2 | .8 | |
Other Assets and Liabilities, Net2 | | | 0 | .1 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| AAA | | | 58 | .9 | % |
| AA | | | 4 | .9 | |
| A | | | 13 | .0 | |
| BBB | | | 18 | .2 | |
| BB or Lower | | | 5 | .0 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
14 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | (0 | .10)% | | | 2.51 | % | | | 3.72 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 2 | .22% | | | 2.98 | % | | | 3.96 | % |
| |
| |
| Class Y | | | 2 | .48% | | | 3.15 | % | | | 4.11 | % |
| |
| |
Barclays Capital 1-3 Year Government/Credit Bond Index3 | | | 4 | .90% | | | 4.21 | % | | | 4.87 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A and Class Y shares was 1.06% and 0.81%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A and Class Y shares do not exceed 0.75% and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital 1-3 Year Government/Credit Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index of one-to-three-year Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. |
| |
| 4 | Performance for Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
First American Funds 2009 Annual Report 15
Total Return Bond Fund
Investment Objective: providing high level of current income consistent with prudent risk to capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American Total Return Bond Fund (the “fund”), Class Y shares, returned 0.52% for the fiscal year ended June 30, 2009 (Class A shares returned 0.16% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Aggregate Bond Index*, returned 6.05% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
The volatility of the financial markets exceeded our expectations, detracting from fund performance. Seeking to take advantage of historically cheap valuations in mid-2008, we had moved to an overweight position in corporate bonds, particularly in the financial sector, and securitized debt. The move, however, proved premature, as became apparent in the light of the harsh post-Lehman Brothers bankruptcy environment. On the upside, the fund has suffered no lasting impairments and, with the market stabilizing, recovered from earlier underperformance during the most recent quarter. The portfolio’s weighting to out-of-index sectors (high yield, emerging markets, and nondollar denominated bonds) underperformed in the second half of 2008, correlating with the broader decline in financial markets and associated flight to quality into Treasuries and the U.S. dollar. However, these sectors had less impact on the portfolio than high-grade corporates and securitized assets. These non-core sectors have contributed positively to the fund recently, given improved credit conditions as well as a decline in the dollar and rising Treasury yields.
What strategic moves were made by the fund and why?
Because the intensifying credit crunch cast doubt on the soundness of even the highest quality bonds, we undertook a thorough review of our fundamental credit and structural analysis to optimize portfolio recovery value. This process reaffirmed the fundamental creditworthiness of the fund’s assets, allowing the fund to navigate market turbulence and ultimately vindicating our earlier decision to overweigh corporates, particularly large, systemically important financials, and mortgage securities. We actively managed the fund during the period, selectively hedging to manage company-specific risks. In late 2008 and as 2009 progressed, we opportunistically added to our corporate bond position, particularly as many new issues came to market at concessions. These additions were funded by reductions in our exposure to agency mortgage and asset-backed securities (mortgages have become too expensive because of the Federal Reserve’s ongoing non-economic purchases of them, intended to keep mortgage rates at low levels). As we look to the future, we anticipate a return to positive economic growth in the latter half of 2009. This expansion, though modest by historical post-recession standards, should be sufficient to extend the recent outperformance of most non-Treasury securities. Yields and spreads available in these sectors continue to reflect a very difficult economic environment and offer attractive compensation to investors.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| Corporate Bonds | | | 58 | .8 | % |
| Asset-Backed Securities | | | 16 | .0 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 13 | .4 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 11 | .0 | |
| Preferred Stocks | | | 0 | .6 | |
| Convertible Securities | | | 0 | .3 | |
| Municipal Bond | | | 0 | .2 | |
| U.S. Government & Agency Security | | | 0 | .2 | |
| Short-Term Investments | | | 4 | .4 | |
Other Assets and Liabilities, Net2 | | | (4 | .9 | ) |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| AAA | | | 25 | .0 | % |
| AA | | | 4 | .7 | |
| A | | | 19 | .9 | |
| BBB | | | 33 | .5 | |
| BB or Lower | | | 16 | .9 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
16 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/01/2000 | | 9/24/2001 |
| |
| | | | | | | | | | | | | | | | | |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (4 | .10)% | | | 2.59 | % | | | 4.61 | % | | | — | |
| |
| |
| Class B | | | (5 | .13)% | | | 2.37 | % | | | 4.30 | % | | | — | |
| |
| |
| Class C | | | (1 | .39)% | | | 2.73 | % | | | 4.30 | % | | | — | |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 0 | .16% | | | 3.48 | % | | | 5.09 | % | | | — | |
| |
| |
| Class B | | | (0 | .58)% | | | 2.70 | % | | | 4.30 | % | | | — | |
| |
| |
| Class C | | | (0 | .48)% | | | 2.73 | % | | | 4.30 | % | | | — | |
| |
| |
| Class R | | | 0 | .02% | | | 3.27 | % | | | — | | | | 4.08 | % |
| |
| |
| Class Y | | | 0 | .52% | | | 3.75 | % | | | 5.35 | % | | | — | |
| |
| |
Barclays Capital Aggregate Bond Index3 | | | 6 | .05% | | | 5.01 | % | | | 6.31 | % | | | 5.16 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0.0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
A portion of the fund’s portfolio may consist of lower-related debt obligations, which are commonly called “high-yield” securities or “junk bonds.” High-yield securities generally have more volatile prices and carry more risk to principal than investment-grade securities. The fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.12%, 1.87%, 1.87%, 1.37%, and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.00%, 1.75%, 1.75%, 1.25%, , and 0.75%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment 1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/01/2000 to 6/30/2009) as compared to the Barclays Capital Aggregate Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index comprised of the Barclays Capital Government/Credit Bond Index, the Barclays Capital Mortgage-Backed Securities Index, and the Barclays Capital Asset-Backed Securities Index. The Barclays Capital Government/Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Barclays Capital Mortgage-Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Barclays Capital Asset-Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans. |
| |
| 4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 17
U.S. Government Mortgage Fund
Investment Objective: providing high current income to the extent consistent with the preservation of capital
How did the fund perform for the fiscal year ended June 30, 2009?
The First American U.S. Government Mortgage Fund (the “fund”), Class Y shares, returned 2.00% for the fiscal year ended June 30, 2009 (Class A shares returned 1.74% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital (formerly Lehman) Mortgage-Backed Securities Index*, returned 9.38% for the same period.
What were the general economic and market conditions during the fiscal year?
The fixed-income markets endured unprecedented volatility during the 12 months ended June 30, 2009. After the Lehman Brothers bankruptcy, and financial troubles at AIG and the government-sponsored enterprises (Fannie Mae and Freddie Mac), the domestic financial system destabilized, freezing global credit markets as 2008 wore on. Counterparty risk management became extreme and access to financing evaporated, leading to an acceleration of the deleveraging in the high-quality fixed-income markets. With credit availability scarce, economic growth plunged and stocks fell to levels not seen since the mid-1990s. Amid the deteriorating economic environment and total risk aversion by investors, the supply/demand equation in high-quality bonds caused by forced selling created unprecedented volatility in the fixed-income markets. Investment-grade corporate and mortgage-related securities posted extremely poor results in the final quarter of 2008, trailing Treasury securities in some cases by 20% or more, as investors shunned these securities for the safety of government bonds. Entering 2009, policymakers took creative steps to reopen debt markets, including the introduction of the Temporary Liquidity Guarantee Program, the Troubled Asset Relief Program, and the Term Asset-Backed Securities Loan Facility. Ultimately, these programs were successful in helping to reopen the markets. As these initiatives took hold, concerns about further deterioration of the financial system abated; equity prices rallied after the release of the stress tests showed no systemic undercapitalization of financials; and corporate and mortgage-related bonds recovered substantial portions of their underperformance from later 2008.
How did market conditions and investment strategies affect the fund’s performance?
We had positioned the fund with overweights to the nonagency and commercial mortgage-backed sectors. These sectors performed much worse than expected during the fourth quarter of 2008 due to the massive deleveraging and the complete shut down in the financing markets for all types of securities. These sectors recovered nicely in the first half of 2009 but did not completely recover the spread widening that took place in late 2008. Our overweights to these sectors caused us to lag the benchmark for the 12 months ended June 30, 2009.
What strategic moves were made by the fund and why?
As the credit crunch accelerated and uncertainty regarding the repayment of even the highest quality bonds mounted, we rigorously reviewed our fundamental credit and structural analysis to optimize portfolio recovery value. Our comfort level with the fundamental creditworthiness of the fund’s assets allowed us to weather the storm and to retain our conviction toward overweights to nonagency and commercial mortgage-backed securities. Throughout this time frame we opportunistically, though modestly, added to our nonagency and commercial mortgages at the highest point in the capital structure. Those trades, combined with our previous overweights, proved to be very good trades as we benefited heavily when the market recovered in the first half of 2009. Over the 12-month time frame, we strategically moved out of nonagency positions with little recovery value and moved into other securities with more upside potential. We also maintained a modest underweight in the agency mortgage sector, opting to carry our overweight in the sectors with more recovery value. That said, we did tactically trade agency mortgage-backed securities and added them when it became more apparent that the government was going to support the sector. As spreads tightened, we reallocated to other parts of the market once again. Within the agency mortgage portion of the fund, we maintained an overweight to higher coupons due to our outlook for subdued refinancing activity and slower-than-expected prepays for higher coupons. The increase in coupon bias was a positive contributor to performance during the past year as higher coupons outperformed. With the better outlook for the economy, we believe the fund continues to have recovery value. That, coupled with the outlook for no meaningful permanent impairments in the fund, gives us reason to maintain the current strategy into the near future.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Sector Allocation as of June 30, 20091 (% of net assets)
| | | | | | |
| U.S. Government Agency Mortgage-Backed Securities | | | 90 | .9% | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 11 | .6 | |
| Asset-Backed Securities | | | 9 | .2 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 0 | .7 | |
| Short-Term Investments | | | 4 | .4 | |
Other Assets and Liabilities, Net2 | | | (16 | .8) | |
| | | | | | |
| | | | 100 | .0% | |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20093 (% of market value)
| | | | | | |
| AAA | | | 89 | .4 | % |
| AA | | | 6 | .3 | |
| A | | | 1 | .5 | |
| BBB | | | 0 | .6 | |
| BB or Lower | | | 2 | .2 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
| |
| 1 | Sector allocations are subject to change and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments in cash market securities and do not reflect the impact on sector allocation of holding derivative instruments, such as credit default swap agreements. See footnote 2 below and the fund’s Schedule of Investments for derivatives held at June 30, 2009. |
| |
| 2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables and payables on derivative instruments based on mark-to-market adjustments as well as receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
| |
| 3 | Reflects ratings provided by Moody’s Investor Service, Standard & Poor’s, and/or Fitch or, in the case of unrated securities and derivatives, a credit quality determination by the fund’s investment advisor. Credit quality percentages reflect both the fund’s direct investments in securities and the fund’s credit default swap agreements. Credit default swaps are weighted using the notional market value of the swap. |
18 First American Funds 2009 Annual Report
Annual Performance1,2 as of June 30, 2009
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Since Inception | |
| | | 1 year | | | 5 years | | | 10 years | | | 9/24/2001 | |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | (2.58 | )% | | | 2.16 | % | | | 3.95 | % | | | — | |
| |
| |
| Class B | | | (3.84 | )% | | | 1.78 | % | | | 3.60 | % | | | — | |
| |
| |
| Class C | | | 0.03 | % | | | 2.28 | % | | | — | | | | 2.52 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 1.74 | % | | | 3.05 | % | | | 4.40 | % | | | — | |
| |
| |
| Class B | | | 0.98 | % | | | 2.29 | % | | | 3.60 | % | | | — | |
| |
| |
| Class C | | | 0.99 | % | | | 2.28 | % | | | — | | | | 2.52 | % |
| |
| |
| Class R | | | 1.49 | % | | | 2.77 | % | | | 4.22 | % | | | — | |
| |
| |
| Class Y | | | 2.00 | % | | | 3.31 | % | | | 4.61 | % | | | — | |
| |
| |
Barclays Capital Mortgage-Backed Securities Index3 | | | 9.38 | % | | | 5.98 | % | | | 6.29 | % | | | 5.53 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.
| |
| 1 | Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0.0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
On September 24, 2001, the U.S. Government Mortgage Fund became the successor by merger to the Firstar U.S. Government Securities Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar U.S. Government Securities Fund. The Firstar U.S. Government Securities Fund was organized on November 27, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc.
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
As of the most recent prospectus, the fund’s total annual operating expense ratio (before waivers and including any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.18%, 1.93%, 1.93%, 1.43%, and 0.93%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least June 30, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.95%, 1.70%, 1.70%, 1.20%, and 0.70%, respectively. These fee waivers and expense reimbursements may be terminated at any time after June 30, 2010, at the discretion of the advisor. Prior to that time, such waivers and reimbursements may not be terminated without the approval of the fund’s board of directors.
Value of $10,000 Investment1,2,4 as of June 30, 2009
The chart at right illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/1999 to 6/30/2009) as compared to the Barclays Capital Mortgage-Backed Securities Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
| |
| 3 | An unmanaged index comprised of mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. It is formed by grouping the universe of more than 600,000 individual fixed-rate MBS pools into approximately 3,500 generic aggregates. The aggregates included are priced daily using a matrix pricing routine based on trade price quotations by agency, program, coupon, and degree of seasoning. |
| |
| 4 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance of these classes will vary due to their different expense structures. |
First American Funds 2009 Annual Report 19
Expense Examples
As a shareholder of one or more of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested in a fund at the beginning of the period and held for the entire period from January 1, 2009 to June 30, 2009.
Actual Expenses
For each class of each fund, two lines are presented in the table below — the first line for each class provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular fund and class, to estimate the expenses that you paid over the period. Simply divide your account value in the fund and class by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for your fund and class to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class of each fund, the second line for each class provides information about hypothetical account values and hypothetical expenses based on the respective fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the tables for each class of each fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Core Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,107.40 | | | $ | 4.96 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.08 | | | $ | 4.76 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,103.20 | | | $ | 8.87 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.36 | | | $ | 8.50 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,102.70 | | | $ | 8.86 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.36 | | | $ | 8.50 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,106.70 | | | $ | 6.27 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.84 | | | $ | 6.01 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,108.90 | | | $ | 3.66 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 10.74%, 10.32%, 10.27%, 10.67%, and 10.89% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
20 First American Funds 2009 Annual Report
High Income Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,286.30 | | | $ | 6.24 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.51 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,281.60 | | | $ | 10.47 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.57 | | | $ | 9.25 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,283.30 | | | $ | 10.47 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.62 | | | $ | 9.25 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,285.10 | | | $ | 7.65 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,289.60 | | | $ | 4.83 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.10%, 1.85%, 1.85%, 1.35%, and 0.85% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 28.63%, 28.16%, 28.33%, 28.51%, and 28.96% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Inflation Protected Securities Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,060.60 | | | $ | 4.34 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual4 | | $ | 1,000.00 | | | $ | 1,055.60 | | | $ | 8.05 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.96 | | | $ | 7.90 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual4 | | $ | 1,000.00 | | | $ | 1,059.30 | | | $ | 5.62 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.51 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,060.90 | | | $ | 3.07 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.82 | | | $ | 3.01 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.58%, 1.10%, and 0.60% for Class A, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 4 | Based on the actual returns for the six-month period ended June 30, 2009 of 6.06%, 5.56%, 5.93%, and 6.09% for Class A, Class C, Class R, and Class Y, respectively. |
Intermediate Government Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 984.00 | | | $ | 3.64 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.12 | | | $ | 3.71 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 984.70 | | | $ | 2.95 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.82 | | | $ | 3.01 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.74% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 6 | Based on the actual returns for the six-month period ended June 30, 2009 of -1.60% and -1.53% for Class A and Class Y, respectively. |
First American Funds 2009 Annual Report 21
Expense Examples
Intermediate Term Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,106.40 | | | $ | 4.44 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,106.40 | | | $ | 3.66 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 10.64% and 10.64% for Class A and Class Y, respectively. |
Short Term Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,075.80 | | | $ | 3.86 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,076.60 | | | $ | 3.09 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.82 | | | $ | 3.01 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 4 | Based on the actual returns for the six-month period ended June 30, 2009 of 7.58% and 7.66% for Class A and Class Y, respectively. |
Total Return Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,176.00 | | | $ | 5.40 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.84 | | | $ | 5.01 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual6 | | $ | 1,000.00 | | | $ | 1,172.70 | | | $ | 9.43 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.12 | | | $ | 8.75 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual6 | | $ | 1,000.00 | | | $ | 1,173.00 | | | $ | 9.43 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.12 | | | $ | 8.75 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual6 | | $ | 1,000.00 | | | $ | 1,176.30 | | | $ | 6.75 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 6.26 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,179.00 | | | $ | 4.05 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.00%, 1.75%, 1.75%, 1.25%, and 0.75% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 6 | Based on the actual returns for the six-month period ended June 30, 2009 of 17.60%, 17.27%, 17.30%, 17.63%, and 17.90% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
22 First American Funds 2009 Annual Report
U.S. Government Mortgage Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/09 to
|
| | | Value (1/01/09)
| | Value (6/30/09)
| | 6/30/09) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,057.60 | | | $ | 4.85 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.08 | | | $ | 4.76 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,054.80 | | | $ | 8.66 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.36 | | | $ | 8.50 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,054.00 | | | $ | 8.66 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.36 | | | $ | 8.50 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,056.50 | | | $ | 6.12 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.84 | | | $ | 6.01 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,058.90 | | | $ | 3.57 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2009 of 5.76%, 5.48%, 5.40%, 5.65%, and 5.89% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds 2009 Annual Report 23
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Core Bond, High Income Bond, Inflation Protected Securities, Intermediate Government Bond, Intermediate Term Bond, Short Term Bond, Total Return Bond, and U.S. Government Mortgage Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2009, and the related statements of operations, changes in net assets and financial highlights for each of the periods indicated therein. 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 audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2009 by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds listed above of First American Investment Funds, Inc. at June 30, 2009, the results of their operations, changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Minneapolis, Minnesota
August 21, 2009
24 First American Funds 2009 Annual Report
| | | | | | | | | |
| Core Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Corporate Bonds – 44.8% |
| Banking – 8.8% |
| Bank of America | | | | | | | | |
| 5.750%, 12/01/2017 | | $ | 8,035 | | | $ | 7,155 | |
| 5.650%, 05/01/2018 | | | 5,870 | | | | 5,187 | |
| 7.625%, 06/01/2019 | | | 4,105 | | | | 4,123 | |
8.000%, 12/29/2049 Δ 6 | | | 8,730 | | | | 7,291 | |
| BB&T | | | | | | | | |
| 6.850%, 04/30/2019 | | | 4,860 | | | | 5,054 | |
| Citigroup | | | | | | | | |
| 6.125%, 11/21/2017 | | | 5,430 | | | | 4,761 | |
| 8.500%, 05/22/2019 | | | 3,500 | | | | 3,560 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2057 Δ | | | 15,545 | | | | 12,122 | |
| Fifth Third Bancorp | | | | | | | | |
6.250%, 05/01/2013 6 | | | 6,410 | | | | 6,299 | |
| First National Bank of Chicago | | | | | | | | |
| 8.080%, 01/05/2018 | | | 1,248 | | | | 1,377 | |
| HSBC Holdings | | | | | | | | |
| 6.800%, 06/01/2038 | | | 6,370 | | | | 6,402 | |
| JPMorgan Chase | | | | | | | | |
| 5.150%, 10/01/2015 | | | 8,115 | | | | 7,999 | |
| Series 1 | | | | | | | | |
| 7.900%, 04/29/2049 Δ | | | 9,800 | | | | 8,576 | |
| JPMorgan Chase Capital XX | | | | | | | | |
| Series T | | | | | | | | |
| 6.550%, 09/29/2036 | | | 2,510 | | | | 1,995 | |
| JPMorgan Chase Capital XXII | | | | | | | | |
| Series V | | | | | | | | |
| 6.450%, 02/02/2037 | | | 2,110 | | | | 1,687 | |
| Lloyds TSB Group | | | | | | | | |
6.267%, 12/31/2049 Δ n | | | 5,000 | | | | 1,700 | |
| National City Preferred Capital Trust I | | | | | | | | |
| 12.000%, 12/29/2049 Δ | | | 3,355 | | | | 3,509 | |
| Rabobank Nederland | | | | | | | | |
11.000%, 06/30/2019 Δ 6 n | | | 1,000 | | | | 1,112 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 3,675 | | | | 3,614 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 2,525 | | | | 1,490 | |
| Wachovia | | | | | | | | |
| 5.750%, 06/15/2017 | | | 2,820 | | | | 2,782 | |
| 5.750%, 02/01/2018 | | | 1,410 | | | | 1,385 | |
| Wells Fargo | | | | | | | | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 6,630 | | | | 5,503 | |
| Wells Fargo Bank | | | | | | | | |
| 5.950%, 08/26/2036 | | | 3,415 | | | | 3,056 | |
| Wells Fargo Capital X | | | | | | | | |
| 5.950%, 12/15/2036 | | | 2,760 | | | | 2,043 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 9,600 | | | | 7,968 | |
| Wells Fargo Capital XV | | | | | | | | |
9.750%, 12/29/2049 Δ 6 | | | 3,305 | | | | 3,198 | |
| | | | | | | | | |
| | | | | | | | 120,948 | |
| | | | | | | | | |
| Basic Industry – 2.6% |
| Arcelormittal | | | | | | | | |
| 6.125%, 06/01/2018 | | | 6,200 | | | | 5,425 | |
| BHP Billiton Finance | | | | | | | | |
| 6.500%, 04/01/2019 | | | 2,995 | | | | 3,326 | |
| Celulosa Arauco y Constitucion | | | | | | | | |
| 5.625%, 04/20/2015 | | | 3,000 | | | | 2,910 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 1,500 | | | | 1,395 | |
| International Paper | | | | | | | | |
| 8.700%, 06/15/2038 | | | 2,300 | | | | 2,052 | |
| Rio Tinto Finance U.S.A. | | | | | | | | |
| 6.500%, 07/15/2018 | | | 3,385 | | | | 3,387 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 2,640 | | | | 2,387 | |
| Teck Cominco Limited | | | | | | | | |
| 6.125%, 10/01/2035 | | | 2,785 | | | | 2,043 | |
| U.S. Steel | | | | | | | | |
| 7.000%, 02/01/2018 | | | 3,650 | | | | 3,171 | |
| Vale Overseas | | | | | | | | |
| 6.250%, 01/11/2016 | | | 2,380 | | | | 2,433 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n | | | 2,055 | | | | 1,706 | |
| Yara International | | | | | | | | |
7.875%, 06/11/2019 n | | | 5,000 | | | | 5,210 | |
| | | | | | | | | |
| | | | | | | | 35,445 | |
| | | | | | | | | |
| Brokerage – 4.9% |
| Bear Stearns | | | | | | | | |
| 7.250%, 02/01/2018 | | | 3,750 | | | | 3,953 | |
| Goldman Sachs Capital II | | | | | | | | |
| 5.793%, 12/29/2049 Δ | | | 2,415 | | | | 1,472 | |
| Goldman Sachs Group | | | | | | | | |
| 6.150%, 04/01/2018 | | | 13,020 | | | | 12,676 | |
| 7.500%, 02/15/2019 | | | 6,000 | | | | 6,424 | |
| 6.750%, 10/01/2037 | | | 3,685 | | | | 3,276 | |
| Merrill Lynch | | | | | | | | |
| 6.050%, 05/16/2016 | | | 9,935 | | | | 8,896 | |
| Series MTN | | | | | | | | |
| 6.150%, 04/25/2013 | | | 7,020 | | | | 7,030 | |
| Morgan Stanley | | | | | | | | |
| 5.375%, 10/15/2015 | | | 8,270 | | | | 8,103 | |
| Series MTN | | | | | | | | |
| 6.625%, 04/01/2018 | | | 15,160 | | | | 15,113 | |
| | | | | | | | | |
| | | | | | | | 66,943 | |
| | | | | | | | | |
| Capital Goods – 1.1% |
| Boeing | | | | | | | | |
6.875%, 03/15/2039 6 | | | 3,560 | | | | 3,983 | |
| Caterpillar | | | | | | | | |
| 8.250%, 12/15/2038 | | | 2,630 | | | | 3,259 | |
| Caterpillar Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 7.150%, 02/15/2019 | | | 4,730 | | | | 5,063 | |
| Siemens Financiering | | | | | | | | |
6.125%, 08/17/2026 n | | | 3,070 | | | | 3,123 | |
| | | | | | | | | |
| | | | | | | | 15,428 | |
| | | | | | | | | |
| Communications – 6.0% |
| AT&T | | | | | | | | |
6.550%, 02/15/2039 6 | | | 5,530 | | | | 5,520 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 n | | | 3,450 | | | | 3,445 | |
9.500%, 11/15/2018 n | | | 3,090 | | | | 3,693 | |
| British Telecom | | | | | | | | |
| 5.950%, 01/15/2018 | | | 5,345 | | | | 4,817 | |
| Comcast | | | | | | | | |
| 6.300%, 11/15/2017 | | | 9,142 | | | | 9,675 | |
| Deutsche Telekom | | | | | | | | |
| 6.750%, 08/20/2018 | | | 5,055 | | | | 5,365 | |
| DirecTV Holdings | | | | | | | | |
| 7.625%, 05/15/2016 | | | 1,295 | | | | 1,259 | |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | | 2,575 | | | | 2,515 | |
First American Funds 2009 Annual Report 25
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| News America | | | | | | | | |
6.900%, 03/01/2019 6 n | | $ | 6,500 | | | $ | 6,773 | |
| 6.650%, 11/15/2037 | | | 3,590 | | | | 3,229 | |
| Rogers Communications | | | | | | | | |
| 6.800%, 08/15/2018 | | | 8,220 | | | | 8,812 | |
| Telecom Italia Capital | | | | | | | | |
| 7.175%, 06/18/2019 | | | 4,740 | | | | 4,805 | |
| Telefonica Emisiones | | | | | | | | |
5.877%, 07/15/2019 « | | | 5,000 | | | | 5,155 | |
| Time Warner Cable | | | | | | | | |
8.750%, 02/14/2019 6 | | | 6,000 | | | | 6,990 | |
| 7.300%, 07/01/2038 | | | 1,725 | | | | 1,797 | |
6.750%, 06/15/2039 6 | | | 2,410 | | | | 2,346 | |
| Verizon Communications | | | | | | | | |
6.900%, 04/15/2038 6 | | | 5,870 | | | | 6,124 | |
| | | | | | | | | |
| | | | | | | | 82,320 | |
| | | | | | | | | |
| Consumer Cyclical – 1.6% |
| Home Depot | | | | | | | | |
| 5.875%, 12/16/2036 | | | 3,570 | | | | 3,150 | |
| International Game Technology | | | | | | | | |
| 7.500%, 06/15/2019 | | | 3,000 | | | | 3,027 | |
| R.R. Donnelley & Sons | | | | | | | | |
11.250%, 02/01/2019 6 | | | 3,000 | | | | 3,176 | |
| Target | | | | | | | | |
| 7.000%, 01/15/2038 | | | 4,285 | | | | 4,567 | |
| Viacom | | | | | | | | |
| 6.875%, 04/30/2036 | | | 4,105 | | | | 3,782 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 4,905 | | | | 4,658 | |
| | | | | | | | | |
| | | | | | | | 22,360 | |
| | | | | | | | | |
| Consumer Non Cyclical – 3.4% |
| Altria Group | | | | | | | | |
| 9.950%, 11/10/2038 | | | 6,055 | | | | 6,989 | |
| Anheuser-Busch InBev | | | | | | | | |
8.200%, 01/15/2039 6 n | | | 7,730 | | | | 8,609 | |
| Bunge Limited Finance | | | | | | | | |
| 8.500%, 06/15/2019 | | | 5,000 | | | | 5,228 | |
| ConAgra Foods | | | | | | | | |
| 7.000%, 04/15/2019 | | | 2,090 | | | | 2,291 | |
| Constellation Brands | | | | | | | | |
| 7.250%, 05/15/2017 | | | 1,000 | | | | 925 | |
| HCA | | | | | | | | |
9.250%, 11/15/2016 6 | | | 1,100 | | | | 1,083 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 3,455 | | | | 3,639 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 3,350 | | | | 3,467 | |
| Roche Holdings | | | | | | | | |
6.000%, 03/01/2019 n | | | 1,870 | | | | 1,994 | |
7.000%, 03/01/2039 n | | | 3,230 | | | | 3,745 | |
| Smithfield Foods | | | | | | | | |
| 7.000%, 08/01/2011 | | | 1,600 | | | | 1,520 | |
| UnitedHealth Group | | | | | | | | |
| 6.625%, 11/15/2037 | | | 4,084 | | | | 3,662 | |
| 6.875%, 02/15/2038 | | | 3,185 | | | | 2,948 | |
| | | | | | | | | |
| | | | | | | | 46,100 | |
| | | | | | | | | |
| Electric – 2.2% |
| MidAmerican Energy Holdings | | | | | | | | |
| 6.125%, 04/01/2036 | | | 5,185 | | | | 5,125 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 4,100 | | | | 4,176 | |
| Oncor Electric Delivery | | | | | | | | |
| 7.000%, 05/01/2032 | | | 5,115 | | | | 5,440 | |
| Pacific Gas & Electric | | | | | | | | |
| 6.050%, 03/01/2034 | | | 4,650 | | | | 4,824 | |
| Taqa Abu Dhabi National Energy | | | | | | | | |
6.165%, 10/25/2017 n | | | 4,315 | | | | 4,085 | |
| Transalta | | | | | | | | |
| 6.650%, 05/15/2018 | | | 3,470 | | | | 3,355 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 2,880 | | | | 3,091 | |
| | | | | | | | | |
| | | | | | | | 30,096 | |
| | | | | | | | | |
| Energy – 5.0% |
| Anadarko Petroleum | | | | | | | | |
| 8.700%, 03/15/2019 | | | 6,500 | | | | 7,281 | |
| Canadian National Resources | | | | | | | | |
| 5.900%, 02/01/2018 | | | 3,355 | | | | 3,427 | |
| Canadian Oil Sands | | | | | | | | |
7.750%, 05/15/2019 n | | | 4,690 | | | | 4,796 | |
| ConocoPhillips | | | | | | | | |
| 6.500%, 02/01/2039 | | | 7,215 | | | | 7,680 | |
| Encana | | | | | | | | |
| 6.500%, 02/01/2038 | | | 2,670 | | | | 2,735 | |
| Marathon Oil | | | | | | | | |
| 5.900%, 03/15/2018 | | | 1,945 | | | | 1,950 | |
| 7.500%, 02/15/2019 | | | 3,500 | | | | 3,820 | |
| Nexen | | | | | | | | |
| 6.400%, 05/15/2037 | | | 3,475 | | | | 3,192 | |
| Petro-Canada | | | | | | | | |
| 6.800%, 05/15/2038 | | | 6,235 | | | | 6,147 | |
| Pride International | | | | | | | | |
| 8.500%, 06/15/2019 | | | 1,000 | | | | 987 | |
| Smith International | | | | | | | | |
| 9.750%, 03/15/2019 | | | 6,375 | | | | 7,364 | |
| Suncor Energy | | | | | | | | |
| 6.100%, 06/01/2018 | | | 4,000 | | | | 4,021 | |
| Talisman Energy | | | | | | | | |
| 7.750%, 06/01/2019 | | | 6,500 | | | | 7,201 | |
| Tengizchevroil Finance | | | | | | | | |
6.124%, 11/15/2014 n | | | 3,658 | | | | 3,293 | |
| Weatherford International | | | | | | | | |
| 7.000%, 03/15/2038 | | | 1,755 | | | | 1,690 | |
| XTO Energy | | | | | | | | |
| 6.375%, 06/15/2038 | | | 2,450 | | | | 2,504 | |
| | | | | | | | | |
| | | | | | | | 68,088 | |
| | | | | | | | | |
| Finance – 3.4% |
| American Express | | | | | | | | |
8.125%, 05/20/2019 6 | | | 4,210 | | | | 4,369 | |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 4,730 | | | | 4,918 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 5,780 | | | | 5,905 | |
| Capital One Financial | | | | | | | | |
| 7.375%, 05/23/2014 | | | 2,505 | | | | 2,583 | |
| CIT Group | | | | | | | | |
| 5.650%, 02/13/2017 | | | 2,650 | | | | 1,495 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 4,390 | | | | 3,895 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 Δ n | | | 3,270 | | | | 1,921 | |
| General Electric Capital | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.875%, 01/10/2039 | | | 4,915 | | | | 4,424 | |
The accompanying notes are an integral part of the financial statements.
26 First American Funds 2009 Annual Report
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | $ | 3,855 | | | $ | 2,933 | |
| Rockies Express Pipeline | | | | | | | | |
7.500%, 07/15/2038 n | | | 2,635 | | | | 2,846 | |
| SLM | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.400%, 10/25/2011 | | | 4,705 | | | | 4,232 | |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 n | | | 8,475 | | | | 7,288 | |
| | | | | | | | | |
| | | | | | | | 46,809 | |
| | | | | | | | | |
| Insurance – 2.6% |
| Allied World Assurance | | | | | | | | |
| 7.500%, 08/01/2016 | | | 6,480 | | | | 5,487 | |
| American International Group | | | | | | | | |
8.175%, 05/15/2058 Δ n | | | 7,005 | | | | 1,998 | |
| Chubb | | | | | | | | |
| 5.750%, 05/15/2018 | | | 1,930 | | | | 2,002 | |
| Genworth Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.515%, 05/22/2018 | | | 3,940 | | | | 2,634 | |
| Hartford Financial Services Group | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 5,860 | | | | 4,490 | |
| MetLife | | | | | | | | |
| 6.750%, 06/01/2016 | | | 3,400 | | | | 3,461 | |
| 7.717%, 02/15/2019 | | | 2,095 | | | | 2,241 | |
| MetLife Capital Trust IV | | | | | | | | |
7.875%, 12/15/2037 n | | | 3,735 | | | | 3,025 | |
| Prudential Financial | | | | | | | | |
| 5.900%, 03/17/2036 | | | 2,500 | | | | 1,998 | |
| Series MTN | | | | | | | | |
| 6.625%, 12/01/2037 | | | 3,000 | | | | 2,599 | |
| Travelers | | | | | | | | |
| 5.900%, 06/02/2019 | | | 4,000 | | | | 4,121 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2037 Δ n | | | 2,860 | | | | 2,060 | |
| | | | | | | | | |
| | | | | | | | 36,116 | |
| | | | | | | | | |
| Natural Gas – 0.4% |
| Kinder Morgan Energy Partners | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.950%, 01/15/2038 | | | 3,060 | | | | 2,964 | |
| NGPL Pipeco | | | | | | | | |
7.119%, 12/15/2017 n | | | 2,640 | | | | 2,767 | |
| | | | | | | | | |
| | | | | | | | 5,731 | |
| | | | | | | | | |
| Other Utility – 0.2% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 3,105 | | | | 2,981 | |
| | | | | | | | | |
| Real Estate – 0.9% |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 8,270 | | | | 7,173 | |
| Prologis 2006 – REIT | | | | | | | | |
| 5.750%, 04/01/2016 | | | 6,835 | | | | 5,387 | |
| | | | | | | | | |
| | | | | | | | 12,560 | |
| | | | | | | | | |
| Technology – 0.8% |
| Chartered Semiconductor | | | | | | | | |
6.375%, 08/03/2015 6 | | | 1,715 | | | | 1,474 | |
| Computer Sciences | | | | | | | | |
| 6.500%, 03/15/2018 | | | 3,835 | | | | 3,919 | |
| National Semiconductor | | | | | | | | |
| 6.600%, 06/15/2017 | | | 5,345 | | | | 4,675 | |
| NXP BV/NXP Funding | | | | | | | | |
10.000%, 07/15/2013 n | | | 77 | | | | 56 | |
| | | | | | | | | |
| | | | | | | | 10,124 | |
| | | | | | | | | |
| Transportation – 0.9% |
| American Airlines | | | | | | | | |
10.375%, 07/02/2019 « | | | 2,500 | | | | 2,500 | |
| Delta Airlines | | | | | | | | |
Series 2001-1, Class B | | | | | | | | |
7.711%, 09/18/2011 6 | | | 2,305 | | | | 1,936 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 2,945 | | | | 2,659 | |
| Norfolk Southern | | | | | | | | |
| 5.900%, 06/15/2019 | | | 5,000 | | | | 5,182 | |
| | | | | | | | | |
| | | | | | | | 12,277 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $631,003) | | | | | | | 614,326 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 26.0% |
| Adjustable Rate Δ – 2.9% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 4.104%, 05/01/2025, #846757 | | | 214 | | | | 215 | |
| 4.221%, 04/01/2029, #847190 | | | 1,132 | | | | 1,141 | |
| 5.060%, 03/01/2030, #847180 | | | 1,436 | | | | 1,463 | |
| 3.942%, 07/01/2030, #847240 | | | 1,900 | | | | 1,929 | |
| 4.201%, 06/01/2031, #846984 | | | 738 | | | | 736 | |
5.769%, 07/01/2036, #1K1238 6 | | | 9,475 | | | | 9,919 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 4.212%, 08/01/2030, #555843 | | | 4,385 | | | | 4,430 | |
| 3.738%, 03/01/2031, #545359 | | | 305 | | | | 307 | |
| 4.137%, 09/01/2033, #725553 | | | 1,629 | | | | 1,657 | |
5.257%, 11/01/2034, #735054 6 | | | 8,034 | | | | 8,456 | |
5.847%, 09/01/2037, #946441 6 | | | 8,892 | | | | 9,335 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 4.625%, 08/20/2023, #008259 | | | 1 | | | | 1 | |
| | | | | | | | | |
| | | | | | | | 39,589 | |
| | | | | | | | | |
| Fixed Rate – 23.1% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 4.500%, 03/01/2018, #P10023 | | | 1,996 | | | | 2,061 | |
| 4.500%, 05/01/2018, #P10032 | | | 3,817 | | | | 3,945 | |
| 6.500%, 01/01/2028, #G00876 | | | 790 | | | | 849 | |
| 6.500%, 11/01/2028, #C00676 | | | 1,625 | | | | 1,747 | |
| 6.500%, 12/01/2028, #C00689 | | | 1,166 | | | | 1,254 | |
| 6.500%, 04/01/2029, #C00742 | | | 662 | | | | 711 | |
6.500%, 07/01/2031, #A17212 6 | | | 2,983 | | | | 3,201 | |
| 6.000%, 11/01/2033, #A15521 | | | 2,330 | | | | 2,448 | |
| 7.000%, 08/01/2037, #H09059 | | | 6,754 | | | | 7,236 | |
5.955%, 09/01/2037, #1G2163 6 | | | 8,309 | | | | 8,753 | |
| 7.000%, 09/01/2037, #H01292 | | | 3,496 | | | | 3,745 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 3.790%, 07/01/2013, #386314 | | | 16,463 | | | | 16,757 | |
| 5.500%, 02/01/2014, #440780 | | | 1,189 | | | | 1,255 | |
| 7.000%, 02/01/2015, #535206 | | | 293 | | | | 309 | |
| 7.000%, 08/01/2016, #591038 | | | 433 | | | | 460 | |
| 5.500%, 12/01/2017, #673010 | | | 2,861 | | | | 3,023 | |
6.000%, 10/01/2022, #254513 6 | | | 2,865 | | | | 3,029 | |
5.500%, 01/01/2025, #255575 6 | | | 7,015 | | | | 7,296 | |
| 7.000%, 04/01/2026, #340798 | | | 267 | | | | 294 | |
| 7.000%, 05/01/2026, #250551 | | | 318 | | | | 350 | |
| 6.000%, 08/01/2027, #256852 | | | 7,390 | | | | 7,764 | |
| 6.500%, 02/01/2029, #252255 | | | 1,410 | | | | 1,521 | |
| 6.500%, 12/01/2031, #254169 | | | 3,222 | | | | 3,437 | |
First American Funds 2009 Annual Report 27
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
6.000%, 04/01/2032, #745101 6 | | $ | 6,784 | | | $ | 7,060 | |
| 7.000%, 07/01/2032, #254379 | | | 1,962 | | | | 2,143 | |
| 7.000%, 07/01/2032, #545813 | | | 842 | | | | 923 | |
| 7.000%, 07/01/2032, #545815 | | | 538 | | | | 589 | |
| 6.000%, 09/01/2032, #254447 | | | 3,258 | | | | 3,435 | |
6.000%, 03/01/2033, #688330 6 | | | 5,337 | | | | 5,627 | |
5.500%, 04/01/2033, #694605 6 | | | 6,717 | | | | 6,970 | |
6.500%, 05/01/2033, #555798 6 | | | 4,345 | | | | 4,670 | |
5.500%, 07/01/2033, #709446 6 | | | 8,384 | | | | 8,699 | |
5.500%, 10/01/2033, #555800 6 | | | 4,992 | | | | 5,180 | |
| 6.000%, 11/01/2033, #772130 | | | 634 | | | | 668 | |
| 6.000%, 11/01/2033, #772256 | | | 893 | | | | 941 | |
| 5.000%, 03/01/2034, #725248 | | | 2,985 | | | | 3,053 | |
5.000%, 03/01/2034, #725250 6 | | | 5,509 | | | | 5,636 | |
| 5.000%, 06/01/2034, #782909 | | | 2 | | | | 1 | |
6.500%, 06/01/2034, #735273 6 | | | 6,865 | | | | 7,376 | |
4.500%, 07/01/2034 « | | | 28,735 | | | | 28,672 | |
| 6.000%, 10/01/2034, #781776 | | | 1,547 | | | | 1,626 | |
6.500%, 04/01/2036, #831377 6 | | | 4,644 | | | | 4,954 | |
| 6.000%, 08/01/2036, #885536 | | | 3,119 | | | | 3,267 | |
6.500%, 08/01/2036, #893318 6 | | | 5,947 | | | | 6,373 | |
6.000%, 09/01/2036, #900555 6 | | | 5,515 | | | | 5,783 | |
6.500%, 09/01/2036, #831799 6 | | | 6,998 | | | | 7,465 | |
5.500%, 04/01/2037, #918883 « | | | 6,794 | | | | 7,024 | |
| 6.500%, 08/01/2037, #256845 | | | 2,348 | | | | 2,504 | |
6.000%, 09/01/2037, #256890 6 | | | 5,414 | | | | 5,650 | |
| 5.000%, 03/01/2038, #973241 | | | 20,655 | | | | 21,063 | |
| 5.000%, 05/01/2038, #983077 | | | 3,825 | | | | 3,901 | |
| 6.000%, 06/01/2038, #889706 | | | 798 | | | | 835 | |
5.500%, 07/15/2038 « | | | 30,285 | | | | 31,260 | |
5.500%, 08/01/2038, #988027 6 | | | 13,365 | | | | 13,815 | |
5.000%, 06/01/2039 « | | | 27,785 | | | | 28,289 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 7.500%, 11/15/2030, #537699 | | | 316 | | | | 346 | |
| | | | | | | | | |
| | | | | | | | 317,243 | |
| | | | | | | | | |
Total U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $347,545) | | | | | | | 356,832 | |
| | | | | | | | | |
Asset-Backed Securities – 20.5% |
| Automotive – 2.3% |
| BMW Vehicle Owner Trust | | | | | | | | |
Series 2006-A, Class A4 | | | | | | | | |
| 5.070%, 08/25/2011 | | | 2,775 | | | | 2,824 | |
| Capital One Prime Auto Receivables Trust | | | | | | | | |
Series 2006-1, Class A4 | | | | | | | | |
| 5.010%, 11/15/2011 | | | 946 | | | | 958 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 6,500 | | | | 6,647 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2005-4, Class A2 | | | | | | | | |
| 4.850%, 06/15/2012 | | | 4,302 | | | | 4,386 | |
| Hertz Vehicle Financing | | | | | | | | |
Series 2005-2A, Class A6 | | | | | | | | |
5.080%, 11/25/2011 n | | | 9,450 | | | | 9,219 | |
| Honda Auto Receivables Owner Trust | | | | | | | | |
Series 2006-3, Class A4 | | | | | | | | |
| 5.110%, 04/15/2012 | | | 1,431 | | | | 1,469 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
Series 2006-B, Class A4 | | | | | | | | |
| 5.220%, 11/15/2011 | | | 997 | | | | 1,015 | |
Series 2007-B, Class A3 | | | | | | | | |
| 5.030%, 05/16/2011 | | | 1,122 | | | | 1,141 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2008-1, Class A3 | | | | | | | | |
| 4.160%, 04/16/2012 | | | 3,000 | | | | 3,058 | |
| | | | | | | | | |
| | | | | | | | 30,717 | |
| | | | | | | | | |
| Credit Cards – 3.4% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.674%, 08/15/2011 Δ | | | 4,125 | | | | 3,934 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.900%, 04/15/2013 Δ | | | 3,000 | | | | 2,976 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2005-A3, Class A3 | | | | | | | | |
| 4.050%, 03/15/2013 | | | 4,500 | | | | 4,588 | |
Series 2006-A14, Class A | | | | | | | | |
| 0.329%, 08/15/2013 Δ | | | 3,900 | | | | 3,844 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 5,000 | | | | 5,144 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.749%, 05/15/2013 Δ | | | 697 | | | | 649 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.569%, 06/18/2013 Δ | | | 1,430 | | | | 1,322 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 5,275 | | | | 5,285 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.639%, 01/15/2013 Δ | | | 4,150 | | | | 3,789 | |
Series 2008-A3, Class A3 | | | | | | | | |
| 5.100%, 10/15/2013 | | | 10,000 | | | | 10,375 | |
| MBNA Master Credit Card Trust | | | | | | | | |
Series 2000-E, Class A | | | | | | | | |
| 7.800%, 10/15/2012 | | | 1,000 | | | | 1,052 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
0.744%, 05/15/2014 Δ n ¥ | | | 4,075 | | | | 3,831 | |
| | | | | | | | | |
| | | | | | | | 46,789 | |
| | | | | | | | | |
| Home Equity – 0.0% |
| Amresco Residential Security Mortgage | | | | | | | | |
Series 1997-3, Class A9 | | | | | | | | |
6.960%, 03/25/2027 ¥ | | | 54 | | | | 45 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-SC1, Class M2 | | | | | | | | |
| 2.559%, 09/25/2023 Δ | | | 766 | | | | 314 | |
| | | | | | | | | |
| | | | | | | | 359 | |
| | | | | | | | | |
| Manufactured Housing – 0.2% |
| Green Tree Financial | | | | | | | | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 3,257 | | | | 3,181 | |
| | | | | | | | | |
| Other – 14.2% |
| Banc of America Commercial Mortgage | | | | | | | | |
Series 2004-5, Class A3 | | | | | | | | |
| 4.561%, 11/10/2041 | | | 14,830 | | | | 13,227 | |
Series 2005-5, Class AM | | | | | | | | |
| 5.176%, 10/10/2045 Δ | | | 7,055 | | | | 4,407 | |
Series 2006-2, Class A4 | | | | | | | | |
| 5.929%, 05/10/2045 | | | 4,085 | | | | 3,407 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 Δ | | | 10,000 | | | | 8,896 | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.413%, 06/11/2050 | | | 4,115 | | | | 1,347 | |
The accompanying notes are an integral part of the financial statements.
28 First American Funds 2009 Annual Report
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 Δ n ¥ | | $ | 3,165 | | | $ | 640 | |
| Citigroup Commercial Mortgage Trust | | | | | | | | |
Series 2008-C7, Class AJ | | | | | | | | |
| 6.299%, 12/10/2049 Δ | | | 4,950 | | | | 1,422 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-CD4, Class A2B | | | | | | | | |
| 5.205%, 12/11/2049 | | | 4,700 | | | | 4,299 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2004-RS1, Class A | | | | | | | | |
4.018%, 03/03/2041 n ¥ | | | 4,354 | | | | 3,023 | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | | 9,225 | | | | 7,834 | |
| Crown Castle Towers | | | | | | | | |
Series 2005-1A, Class B | | | | | | | | |
4.878%, 06/15/2035 n | | | 10,765 | | | | 10,442 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2005-C3, Class A2 | | | | | | | | |
| 4.853%, 07/10/2045 | | | 11,590 | | | | 11,362 | |
| Global Signal Trust | | | | | | | | |
Series 2004-2A, Class A | | | | | | | | |
4.232%, 12/15/2014 n | | | 11,480 | | | | 11,365 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 6,675 | | | | 6,598 | |
Series 2007-GG11, Class AJ | | | | | | | | |
| 6.207%, 12/10/2049 Δ | | | 8,685 | | | | 3,526 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-RR2, Class A1 | | | | | | | | |
5.818%, 06/23/2046 n ¥ | | | 4,305 | | | | 990 | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 | | | 29,475 | | | | 22,273 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2005-LDP5, Class B | | | | | | | | |
5.499%, 12/15/2044 Δ ¥ | | | 2,750 | | | | 1,303 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2004-C2, Class A4 | | | | | | | | |
| 4.367%, 03/15/2036 | | | 6,000 | | | | 5,080 | |
Series 2005-C7, Class A2 | | | | | | | | |
| 5.103%, 11/15/2030 | | | 12,940 | | | | 12,610 | |
Series 2007-C7, Class AM | | | | | | | | |
| 6.166%, 09/15/2045 Δ | | | 4,775 | | | | 2,304 | |
Series 2008-C1, Class AJ | | | | | | | | |
| 6.317%, 04/15/2041 Δ | | | 2,350 | | | | 891 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.127%, 07/12/2038 Δ ¥ | | | 3,102 | | | | 1,366 | |
Series 2005-LC1, Class AM | | | | | | | | |
| 5.441%, 01/12/2044 Δ | | | 5,938 | | | | 3,861 | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 13,520 | | | | 8,936 | |
| Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | | | | | |
Series 2007-8, Class AM | | | | | | | | |
| 6.156%, 08/12/2049 Δ | | | 7,670 | | | | 3,518 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2005-HQ6, Class B | | | | | | | | |
5.152%, 08/13/2042 Δ ¥ | | | 1,340 | | | | 648 | |
Series 2005-HQ6, Class C | | | | | | | | |
5.172%, 08/13/2042 Δ ¥ | | | 1,270 | | | | 588 | |
| Morgan Stanley Dean Witter Capital I | | | | | | | | |
Series 2002-TOP7, Class A2 | | | | | | | | |
| 5.980%, 01/15/2039 | | | 12,505 | | | | 12,744 | |
| Small Business Administration | | | | | | | | |
Series 2006-P10B, Class 1 | | | | | | | | |
| 5.681%, 08/10/2016 | | | 10,528 | | | | 11,117 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-C19, Class A5 | | | | | | | | |
| 4.661%, 05/15/2044 | | | 13,390 | | | | 11,878 | |
Series 2007-C33, Class AJ | | | | | | | | |
| 6.100%, 02/15/2051 Δ | | | 4,945 | | | | 1,313 | |
Series 2007-C34, Class AJ | | | | | | | | |
| 6.147%, 05/15/2046 Δ | | | 5,184 | | | | 1,536 | |
| | | | | | | | | |
| | | | | | | | 194,751 | |
| | | | | | | | | |
| Utilities – 0.4% |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-2, Class A2 | | | | | | | | |
| 5.030%, 03/25/2014 | | | 4,565 | | | | 4,745 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $328,043) | | | | | | | 280,542 | |
| | | | | | | | | |
Collateralized Mortgage Obligation-Private Mortgage-Backed Securities – 9.4% |
| Adjustable Rate Δ – 3.6% |
| Citigroup Mortgage Loan Trust | | | | | | | | |
Series 2005-7, Class 2A1A | | | | | | | | |
| 4.862%, 09/25/2035 | | | 6,720 | | | | 4,972 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-OA17, Class 1A1A | | | | | | | | |
| 0.511%, 12/20/2046 | | | 6,124 | | | | 2,451 | |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.296%, 02/25/2034 | | | 2,469 | | | | 2,254 | |
Series 2006-HYB5, Class 3A1A | | | | | | | | |
| 6.041%, 09/20/2036 | | | 11,289 | | | | 5,124 | |
| Harborview Mortgage Loan Trust | | | | | | | | |
Series 2006-1, Class 2A1A | | | | | | | | |
| 0.568%, 03/19/2036 | | | 10,040 | | | | 4,229 | |
Series 2007-4, Class 2A1 | | | | | | | | |
| 0.548%, 07/19/2047 | | | 10,865 | | | | 4,272 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 5.444%, 03/25/2035 Δ | | | 1,740 | | | | 823 | |
| JPMorgan Alternative Loan Trust | | | | | | | | |
Series 2007-S1, Class A1 | | | | | | | | |
| 0.594%, 04/25/2047 | | | 4,227 | | | | 1,984 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2005-A1, Class 3A2 | | | | | | | | |
| 5.020%, 02/25/2035 | | | 4,939 | | | | 2,690 | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.941%, 01/25/2037 | | | 1,332 | | | | 290 | |
| Residential Funding Mortgage Securities I | | | | | | | | |
Series 2006-SA2, Class 4A1 | | | | | | | | |
| 5.863%, 08/25/2036 | | | 9,982 | | | | 6,630 | |
| Structured Adjustable Rate Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 4.565%, 08/25/2034 | | | 413 | | | | 276 | |
| Wachovia Mortgage Loan Trust | | | | | | | | |
Series 2005-B, Class 1A1 | | | | | | | | |
| 5.008%, 10/20/2035 | | | 5,508 | | | | 4,444 | |
| Washington Mutual | | | | | | | | |
Series 2007-HY2, Class 3A2 | | | | | | | | |
| 5.857%, 09/25/2036 | | | 1,909 | | | | 348 | |
First American Funds 2009 Annual Report 29
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2003-D, Class A1 | | | | | | | | |
| 4.396%, 02/25/2033 | | $ | 1,213 | | | $ | 1,093 | |
Series 2006-AR1, Class 2A2 | | | | | | | | |
| 5.545%, 03/25/2036 | | | 8,275 | | | | 6,616 | |
| | | | | | | | | |
| | | | | | | | 48,496 | |
| | | | | | | | | |
| Fixed Rate – 5.8% |
| Banc of America Funding | | | | | | | | |
Series 2007-4, Class 1A2 | | | | | | | | |
| 5.500%, 06/25/2037 | | | 2,899 | | | | 1,543 | |
| Banc of America Mortgage Securities | | | | | | | | |
Series 2003-6, Class 1A30 | | | | | | | | |
| 4.750%, 08/25/2033 | | | 5,550 | | | | 5,460 | |
| BCAP LLC Trust | | | | | | | | |
Series 2006-RR1, Class PB | | | | | | | | |
| 5.000%, 11/25/2036 | | | 2,090 | | | | 1,814 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-12CB, Class 1A1 | | | | | | | | |
| 5.000%, 07/25/2019 | | | 4,634 | | | | 4,378 | |
Series 2004-24CB, Class 1A1 | | | | | | | | |
| 6.000%, 11/25/2034 | | | 3,798 | | | | 3,171 | |
Series 2004-2CB, Class 1A1 | | | | | | | | |
| 4.250%, 03/25/2034 | | | 1,957 | | | | 1,829 | |
Series 2004-J1, Class 1A1 | | | | | | | | |
| 6.000%, 02/25/2034 | | | 697 | | | | 652 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 3,433 | | | | 2,559 | |
| Countrywide Home Loans | | | | | | | | |
Series 2007-17, Class 1A1 | | | | | | | | |
| 6.000%, 10/25/2037 | | | 12,211 | | | | 8,973 | |
| Credit Suisse First Boston Mortgage Securities | | | | | | | | |
Series 2003-8, Class DB1 | | | | | | | | |
| 6.241%, 04/25/2033 | | | 4,495 | | | | 3,045 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2006-J1, Class A1 | | | | | | | | |
| 5.750%, 04/25/2036 | | | 3,968 | | | | 3,018 | |
Series Series 2004-J5, Class A7 | | | | | | | | |
| 6.500%, 01/25/2035 | | | 311 | | | | 300 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.905%, 03/25/2043 ¥ | | | 791 | | | | 598 | |
| Lehman Brothers Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.550%, 07/25/2047 | | | 7,825 | | | | 6,182 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2004-1, Class 3A1 | | | | | | | | |
| 7.000%, 01/25/2034 | | | 1,020 | | | | 893 | |
Series 2005-2, Class 1A3 | | | | | | | | |
| 6.500%, 03/25/2035 | | | 2,411 | | | | 2,020 | |
| Residential Asset Mortgage Products | | | | | | | | |
Series 2003-SL1, Class M1 | | | | | | | | |
7.326%, 04/25/2031 ¥ | | | 7,363 | | | | 6,408 | |
Series 2004-SL4, Class A3 | | | | | | | | |
| 6.500%, 07/25/2032 | | | 2,013 | | | | 1,842 | |
| Washington Mutual Mortgage Pass-Through Certificates | | | | | | | | |
Series 2007-2, Class 3A1 | | | | | | | | |
| 5.500%, 04/25/2022 | | | 5,952 | | | | 5,336 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2005-14, Class 2A1 | | | | | | | | |
| 5.500%, 12/25/2035 | | | 1,617 | | | | 1,345 | |
Series 2005-AR13, Class A1 | | | | | | | | |
| 5.310%, 05/25/2035 | | | 1,591 | | | | 1,125 | |
Series 2007-10, Class 1A1 | | | | | | | | |
| 6.000%, 07/25/2037 | | | 8,184 | | | | 6,280 | |
Series 2007-13, Class A8 | | | | | | | | |
| 6.000%, 09/25/2037 | | | 9,477 | | | | 8,007 | |
Series 2007-2, Class 1A8 | | | | | | | | |
| 5.750%, 03/25/2037 | | | 3,493 | | | | 2,901 | |
| Westam Mortgage Financial | | | | | | | | |
| Series 11, Class A | | | | | | | | |
6.360%, 08/26/2020 ¥ | | | 45 | | | | 45 | |
| | | | | | | | | |
| | | | | | | | 79,724 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation-Private Mortgage-Backed Securities | | | | | | | | |
(Cost $175,773) | | | | | | | 128,220 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 3.0% |
| Fixed Rate – 2.9% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1022, Class J | | | | | | | | |
| 6.000%, 12/15/2020 | | | 29 | | | | 29 | |
| Series 162, Class F | | | | | | | | |
| 7.000%, 05/15/2021 | | | 82 | | | | 88 | |
| Series 1790, Class A | | | | | | | | |
| 7.000%, 04/15/2022 | | | 54 | | | | 57 | |
| Series 188, Class H | | | | | | | | |
| 7.000%, 09/15/2021 | | | 164 | | | | 177 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 4,952 | | | | 5,034 | |
| Series 2901, Class UB | | | | | | | | |
| 5.000%, 03/15/2033 | | | 5,000 | | | | 5,124 | |
| Series 6, Class C | | | | | | | | |
| 9.050%, 06/15/2019 | | | 17 | | | | 18 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1988-24, Class G | | | | | | | | |
| 7.000%, 10/25/2018 | | | 41 | | | | 45 | |
Series 1989-24, Class H | | | | | | | | |
| 9.000%, 07/25/2019 | | | 35 | | | | 39 | |
Series 1989-90, Class E | | | | | | | | |
| 8.700%, 12/25/2019 | | | 5 | | | | 5 | |
Series 1990-102, Class J | | | | | | | | |
| 6.500%, 08/25/2020 | | | 29 | | | | 31 | |
Series 1990-105, Class J | | | | | | | | |
| 6.500%, 09/25/2020 | | | 278 | | | | 302 | |
Series 1990-30, Class E | | | | | | | | |
| 6.500%, 03/25/2020 | | | 24 | | | | 26 | |
Series 1990-61, Class H | | | | | | | | |
| 7.000%, 06/25/2020 | | | 29 | | | | 31 | |
Series 1990-72, Class B | | | | | | | | |
| 9.000%, 07/25/2020 | | | 22 | | | | 25 | |
Series 1991-56, Class M | | | | | | | | |
| 6.750%, 06/25/2021 | | | 89 | | | | 94 | |
Series 1992-120, Class C | | | | | | | | |
| 6.500%, 07/25/2022 | | | 33 | | | | 35 | |
Series 2003-3, Class BC | | | | | | | | |
| 5.000%, 02/25/2018 | | | 14,030 | | | | 14,891 | |
Series 2005-44, Class PC | | | | | | | | |
| 5.000%, 11/25/2027 | | | 5,900 | | | | 6,121 | |
Series 2005-62, Class JE | | | | | | | | |
| 5.000%, 06/25/2035 | | | 7,921 | | | | 8,231 | |
| | | | | | | | | |
| | | | | | | | 40,403 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
30 First American Funds 2009 Annual Report
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Z-Bonds x – 0.1% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1118, Class Z | | | | | | | | |
| 8.250%, 07/15/2021 | | $ | 47 | | | $ | 51 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1991-134, Class Z | | | | | | | | |
| 7.000%, 10/25/2021 | | | 199 | | | | 215 | |
Series 1996-35, Class Z | | | | | | | | |
| 7.000%, 07/25/2026 | | | 890 | | | | 964 | |
| | | | | | | | | |
| | | | | | | | 1,230 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $39,136) | | | | | | | 41,633 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 0.6% |
| U.S. Treasuries – 0.6% |
| U.S. Treasury Notes | | | | | | | | |
| 2.250%, 05/31/2014 | | | 3,315 | | | | 3,271 | |
| 0.875%, 02/28/2011 | | | 4,245 | | | | 4,242 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $7,489) | | | | | | | 7,513 | |
| | | | | | | | | |
Preferred Stocks – 0.1% |
| Banking – 0.1% |
| Bank of America | | | | | | | | |
| Series MER | | | 79,000 | | | | 1,602 | |
| | | | | | | | | |
| Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
| Series S | | | 218,000 | | | | 292 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $7,149) | | | | | | | 1,894 | |
| | | | | | | | | |
Short-Term Investments – 2.0% |
| Money Market Fund – 1.8% |
First American Prime Obligations Fund
Class Z Å | | | 24,403,563 | | | | 24,404 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.2% |
U.S. Treasury Bills o | | | | | | | | |
| 0.175%, 09/24/2009 | | $ | 330 | | | | 330 | |
| 0.185%, 10/08/2009 | | | 1,290 | | | | 1,289 | |
| 0.362%, 02/11/2010 | | | 1,800 | | | | 1,796 | |
| | | | | | | | | |
| | | | | | | | 3,415 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $27,818) | | | | | | | 27,819 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 14.7% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $202,331) | | | 202,331,310 | | | | 202,331 | |
| | | | | | | | | |
Total Investments 5 – 121.1% | | | | | | | | |
(Cost $1,766,287) | | | | | | | 1,661,110 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (21.1)% | | | | | | | (289,369 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 1,371,741 | |
| | | | | | | | | |
| | |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $197,715 at June 30, 2009. See note 2 in Notes to Financial Statements. |
Core Bond Fund (continued)
| | |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $129,824 or 9.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $100,893 or 7.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $19,485 or 1.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| x | | Z-Bonds – Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate shown represents current yield based upon the cost basis and estimated future cash flows. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $1,771,396. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 40,917 | |
| Gross unrealized depreciation | | | (151,203 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (110,286 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | | | | |
| | | | | | Contracts
| | | Notional
| | Unrealized
| |
| | | Settlement
| | | Purchased
| | | Contract
| | Appreciation
| |
| Description | | Month | | | (Sold) | | | Value | | (Depreciation) | |
| | |
| Canadian Dollar Currency Futures | | | September 2009 | | | | 37 | | | $ | 3,186 | | $ | (178 | ) |
| U.S. Treasury 2 Year Note Futures | | | September 2009 | | | | 332 | | | | 71,785 | | | (98 | ) |
| U.S. Treasury 5 Year Note Futures | | | September 2009 | | | | 1,028 | | | | 117,931 | | | (714 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2009 | | | | (1,167 | ) | | | (135,682) | | | 346 | |
| U.S. Treasury Long Bond Futures | | | September 2009 | | | | (437 | ) | | | (51,723) | | | (506 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (1,150 | ) |
| | | | | | | | | | | | | | | | |
First American Funds 2009 Annual Report 31
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
Core Bond Fund (concluded)
Credit Default Swap Agreements
Credit Default Swap on Corporate Issues
Sell Protection1
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Implied
| | | | | | | |
| | | | | | | | | | | Credit
| | | | | | | |
| | | | | | | | | | | Spread at
| | | | | | | |
| | | Reference
| | Receive
| | | Expiration
| | | June 30,
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Fixed Rate | | | Date | | | 20092 | | | Amount3 | | | Appreciation | |
| | |
| JPMorgan | | General Electric
Capital Corporation | | | 5.000% | | | | 06/20/2014 | | | | 4.100% | | | $ | 10,000 | | | $ | 1,215 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Credit Default Swaps on Credit Indices
Sell Protection1
| | | | | | | | | | | | | | | | | | | |
| | | | | Receive
| | | | | | | | | Unrealized
| |
| | | Reference
| | Fixed
| | | Expiration
| | | Notional
| | | Appreciation
| |
| Counterparty | | Index | | Rate | | | Date | | | Amount3 | | | (Depreciation) | |
| | |
| Deutsche Bank | | Markit CDX HVOL11
Index | | | 3.850% | | | | 12/20/2013 | | | $ | 10,200 | | | $ | 124 | |
| Deutsche Bank | | Markit CDX HVOL12
Index | | | 5.000% | | | | 06/20/2014 | | | | 19,000 | | | | (319 | ) |
| JPMorgan | | Markit iTraxx Asia
ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 1,800 | | | | (114 | ) |
| JPMorgan | | Markit iTraxx Asia
ex-Japan Index | | | 5.000% | | | | 12/20/2013 | | | | 3,600 | | | | 599 | |
| UBS | | Markit iTraxx Asia
ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 2,900 | | | | (217 | ) |
| UBS | | Markit iTraxx Asia
ex-Japan Index | | | 5.000% | | | | 12/20/2013 | | | | 1,000 | | | | 154 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | 227 | |
| | | | | | | | | | | | | | | | | | | |
| | |
| | 1 | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. |
| |
| | 2 | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment /performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular reference entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the reference entity. |
| |
| | 3 | The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
Interest Rate Swap Agreement
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 4.045% | | | | 11/14/2018 | | | $ | 8,000 | | | $ | (217 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| High Income Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
High Yield Corporate Bonds – 77.3% |
| Banking – 0.5% |
| ABN AMRO | | | | | | | | |
6.523%, 12/29/2049 Δ n | | $ | 1,000 | | | $ | 605 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2057 Δ | | | 500 | | | | 390 | |
| | | | | | | | | |
| | | | | | | | 995 | |
| | | | | | | | | |
| Basic Industry – 9.6% |
| AbitibiBowater | | | | | | | | |
9.000%, 08/01/2009 ª | | | 500 | | | | 75 | |
| AK Steel | | | | | | | | |
| 7.750%, 06/15/2012 | | | 550 | | | | 534 | |
| Aleris International | | | | | | | | |
10.000%, 12/15/2016 ª | | | 1,000 | | | | 21 | |
| Berry Plastics | | | | | | | | |
| 5.881%, 02/15/2015 Δ | | | 500 | | | | 441 | |
| Cellu Tissue Holdings | | | | | | | | |
11.500%, 06/01/2014 n | | | 1,000 | | | | 983 | |
| Coalcorp Mining | | | | | | | | |
| Series A | | | | | | | | |
12.000%, 08/31/2011 Æ | | | 375 | | | | 174 | |
| Domtar | | | | | | | | |
| 5.375%, 12/01/2013 | | | 750 | | | | 622 | |
| Exopack Holdings | | | | | | | | |
11.250%, 02/01/2014 ¥ | | | 1,000 | | | | 820 | |
| Georgia Gulf | | | | | | | | |
| 7.125%, 12/15/2013 | | | 275 | | | | 76 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 1,250 | | | | 1,163 | |
| Griffin Coal Mining | | | | | | | | |
9.500%, 12/01/2016 n Æ | | | 1,000 | | | | 515 | |
| Hexion US Finance | | | | | | | | |
| 9.750%, 11/15/2014 | | | 1,000 | | | | 450 | |
| Industrias Metal | | | | | | | | |
11.250%, 10/22/2014 n Æ | | | 1,000 | | | | 610 | |
| Intertape Polymer Group | | | | | | | | |
8.500%, 08/01/2014 ¥ | | | 1,850 | | | | 816 | |
| Massey Energy | | | | | | | | |
| 6.875%, 12/15/2013 | | | 1,250 | | | | 1,144 | |
| Mercer International | | | | | | | | |
| 9.250%, 02/15/2013 | | | 750 | | | | 315 | |
| Millar Western Forest | | | | | | | | |
7.750%, 11/15/2013 Æ | | | 700 | | | | 322 | |
| Newark Group | | | | | | | | |
9.750%, 03/15/2014 ª ¥ | | | 800 | | | | 17 | |
| Noble Group Limited | | | | | | | | |
6.625%, 03/17/2015 n Æ | | | 750 | | | | 638 | |
| Nortek | | | | | | | | |
| 10.000%, 12/01/2013 | | | 1,000 | | | | 802 | |
| Nova Chemicals | | | | | | | | |
4.538%, 11/15/2013 Δ Æ | | | 1,250 | | | | 1,034 | |
| Owens Corning | | | | | | | | |
| 6.500%, 12/01/2016 | | | 1,400 | | | | 1,227 | |
| Solo Cup | | | | | | | | |
10.500%, 11/01/2013 n | | | 1,000 | | | | 1,003 | |
| Teck Resources | | | | | | | | |
9.750%, 05/15/2014 n Æ | | | 2,000 | | | | 2,070 | |
| Temple-Inland | | | | | | | | |
| 6.625%, 01/15/2016 | | | 2,000 | | | | 1,816 | |
| United States Steel | | | | | | | | |
| 5.650%, 06/01/2013 | | | 1,000 | | | | 900 | |
The accompanying notes are an integral part of the financial statements.
32 First American Funds 2009 Annual Report
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| USG | | | | | | | | |
| 7.750%, 01/15/2018 | | $ | 1,000 | | | $ | 850 | |
| Vedanta Resources | | | | | | | | |
8.750%, 01/15/2014 n Æ | | | 1,410 | | | | 1,283 | |
| | | | | | | | | |
| | | | | | | | 20,721 | |
| | | | | | | | | |
| Capital Goods – 3.8% |
| BE Aerospace | | | | | | | | |
8.500%, 07/01/2018 6 | | | 1,500 | | | | 1,414 | |
| Graham Packaging | | | | | | | | |
| 9.875%, 10/15/2014 | | | 900 | | | | 837 | |
| Hawker Beechcraft Acquisition | | | | | | | | |
| 9.750%, 04/01/2017 | | | 700 | | | | 294 | |
| Owens-Brockway | | | | | | | | |
7.375%, 05/15/2016 n | | | 1,250 | | | | 1,212 | |
| Terex | | | | | | | | |
| 7.375%, 01/15/2014 | | | 1,050 | | | | 961 | |
| Textron Financial | | | | | | | | |
| 4.600%, 05/03/2010 | | | 1,000 | | | | 955 | |
| 5.125%, 11/01/2010 | | | 1,000 | | | | 933 | |
| United Rentals North America | | | | | | | | |
10.875%, 06/15/2016 n | | | 1,000 | | | | 960 | |
| Vought Aircraft Industries | | | | | | | | |
| 8.000%, 07/15/2011 | | | 1,000 | | | | 625 | |
| | | | | | | | | |
| | | | | | | | 8,191 | |
| | | | | | | | | |
| Communications – 11.1% |
| Central European Media Entertainment | | | | | | | | |
3.500%, 03/15/2013 n Æ | | | 1,250 | | | | 802 | |
| Charter Communications Holdings II | | | | | | | | |
| Class A | | | | | | | | |
10.250%, 10/01/2013 n ª | | | 1,655 | | | | 1,638 | |
| Citizens Communications | | | | | | | | |
| 9.000%, 8/15/2031 | | | 1,300 | | | | 1,073 | |
| Clear Channel Communications | | | | | | | | |
| 6.875%, 06/15/2018 | | | 1,000 | | | | 218 | |
| Cricket Communications I | | | | | | | | |
7.750%, 05/15/2016 n | | | 1,000 | | | | 962 | |
| Crown Castle International | | | | | | | | |
9.000%, 01/15/2015 6 | | | 1,250 | | | | 1,272 | |
| CSC Holdings | | | | | | | | |
8.500%, 04/15/2014 n | | | 1,000 | | | | 991 | |
8.625%, 02/15/2019 n | | | 1,000 | | | | 973 | |
| Series B | | | | | | | | |
| 7.625%, 04/01/2011 | | | 1,165 | | | | 1,153 | |
| Dex Media West | | | | | | | | |
| Series B | | | | | | | | |
8.500%, 08/15/2010 ª | | | 500 | | | | 360 | |
| Fairpoint Communications | | | | | | | | |
| 13.125%, 04/01/2018 | | | 1,000 | | | | 195 | |
| Frontier Communications | | | | | | | | |
| 8.250%, 05/01/2014 | | | 1,750 | | | | 1,654 | |
| Inmarsat Finance II | | | | | | | | |
10.375%, 11/15/2012 Æ | | | 1,425 | | | | 1,475 | |
| Intelsat Bermuda | | | | | | | | |
11.250%, 06/15/2016 Æ | | | 1,850 | | | | 1,887 | |
| Intelsat Intermediate Holdings | | | | | | | | |
0.000% through 02/01/10,
thereafter 9.500%, 02/01/2015 n Æ 6 | | | 900 | | | | 805 | |
| Level 3 Financing | | | | | | | | |
| 12.250%, 03/15/2013 | | | 500 | | | | 475 | |
| Metropcs Wireless | | | | | | | | |
| 9.250%, 11/01/2014 | | | 350 | | | | 348 | |
| Nextel Communications | | | | | | | | |
| Series E | | | | | | | | |
6.875%, 10/31/2013 6 | | | 1,500 | | | | 1,241 | |
| Nielsen Finance | | | | | | | | |
11.500%, 05/01/2016 n | | | 600 | | | | 584 | |
0.000% through 08/01/11,
thereafter 12.500%, 08/01/2016 Δ | | | 550 | | | | 353 | |
| Qwest Capital Funding | | | | | | | | |
| 7.250%, 02/15/2011 | | | 2,200 | | | | 2,134 | |
| Sprint Capital | | | | | | | | |
| 8.750%, 03/15/2032 | | | 850 | | | | 684 | |
| Vimpelcom | | | | | | | | |
8.250%, 05/23/2016 n Æ | | | 1,000 | | | | 838 | |
| Windstream | | | | | | | | |
| 8.125%, 08/01/2013 | | | 1,750 | | | | 1,693 | |
| Young Broadcasting | | | | | | | | |
10.000%, 03/01/2011 ª | | | 500 | | | | 1 | |
| | | | | | | | | |
| | | | | | | | 23,809 | |
| | | | | | | | | |
| Consumer Cyclical – 18.9% |
| Allison Transmission | | | | | | | | |
11.250%, 11/01/2015 n | | | 1,500 | | | | 1,050 | |
| AMC Entertainment | | | | | | | | |
8.750%, 06/01/2019 n 6 | | | 1,000 | | | | 940 | |
| Ameristar Casinos | | | | | | | | |
9.250%, 06/01/2014 n | | | 1,000 | | | | 1,020 | |
| Bon-Ton Department Stores | | | | | | | | |
| 10.250%, 03/15/2014 | | | 750 | | | | 326 | |
| Burlington Coat Factory | | | | | | | | |
11.125%, 04/15/2014 6 | | | 1,000 | | | | 795 | |
| Denny’s | | | | | | | | |
10.000%, 10/01/2012 6 | | | 1,150 | | | | 1,115 | |
| Exide Technologies | | | | | | | | |
| 10.500%, 03/15/2013 | | | 1,000 | | | | 815 | |
| Fontainebleau Las Vegas | | | | | | | | |
11.000%, 06/15/2015 n ª | | | 1,000 | | | | 37 | |
| Ford Motor | | | | | | | | |
| 7.450%, 07/16/2031 | | | 1,000 | | | | 590 | |
| Ford Motor Credit | | | | | | | | |
| 9.875%, 08/10/2011 | | | 4,000 | | | | 3,700 | |
| General Motors | | | | | | | | |
8.250%, 07/15/2023 ª | | | 1,250 | | | | 153 | |
| General Nutrition Center | | | | | | | | |
| 6.404%, 03/15/2014 Δ | | | 770 | | | | 616 | |
| Goodyear Tire & Rubber | | | | | | | | |
10.500%, 05/15/2016 6 | | | 1,000 | | | | 1,010 | |
| Greektown Holdings | | | | | | | | |
| Series Pool #392484 | | | | | | | | |
10.750%, 12/01/2013 n ª | | | 30 | | | | 2 | |
| Hanesbrands | | | | | | | | |
| 4.593%, 12/15/2014 Δ | | | 1,250 | | | | 1,006 | |
| Harrahs | | | | | | | | |
11.250%, 06/01/2017 n | | | 1,000 | | | | 945 | |
10.000%, 12/15/2018 n | | | 1,650 | | | | 949 | |
| Host Hotels & Resorts | | | | | | | | |
| Series Q | | | | | | | | |
| 6.750%, 06/01/2016 | | | 1,000 | | | | 867 | |
| Interpublic Group | | | | | | | | |
| 6.250%, 11/15/2014 | | | 1,250 | | | | 1,094 | |
| JCPenney | | | | | | | | |
| 7.400%, 04/01/2037 | | | 600 | | | | 474 | |
| Lear | | | | | | | | |
| Series B | | | | | | | | |
8.500%, 12/01/2013 ª | | | 850 | | | | 221 | |
| Limited Brands | | | | | | | | |
8.500%, 06/15/2019 n | | | 1,000 | | | | 958 | |
| Macy’s Retail Holdings | | | | | | | | |
| 7.450%, 07/15/2017 | | | 2,250 | | | | 1,958 | |
First American Funds��2009 Annual Report 33
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Marfrig Overseas | | | | | | | | |
9.625%, 11/16/2016 n Æ | | $ | 1,000 | | | $ | 820 | |
| MGM Mirage | | | | | | | | |
8.375%, 02/01/2011 6 | | | 900 | | | | 720 | |
13.000%, 11/15/2013 n | | | 1,000 | | | | 1,095 | |
10.375%, 05/15/2014 n | | | 500 | | | | 519 | |
| Mohegan Tribal Gaming Authority | | | | | | | | |
| 7.125%, 08/15/2014 | | | 925 | | | | 629 | |
| Neiman Marcus Group | | | | | | | | |
| 10.375%, 10/15/2015 | | | 700 | | | | 409 | |
| Oxford Industries | | | | | | | | |
11.375%, 07/15/2015 n | | | 1,000 | | | | 974 | |
| Parkson Retail Group | | | | | | | | |
7.125%, 05/30/2012 Æ | | | 1,000 | | | | 965 | |
| Pep Boys-Manny, Moe & Jack | | | | | | | | |
| 7.500%, 12/15/2014 | | | 900 | | | | 743 | |
| Pinnacle Entertainment I | | | | | | | | |
7.500%, 06/15/2015 6 | | | 1,500 | | | | 1,283 | |
| Realogy | | | | | | | | |
| 10.500%, 04/15/2014 | | | 500 | | | | 216 | |
| Rite Aid | | | | | | | | |
9.750%, 06/12/2016 n | | | 1,000 | | | | 1,000 | |
| 10.375%, 07/15/2016 | | | 2,250 | | | | 2,025 | |
| Royal Caribbean Cruises | | | | | | | | |
7.000%, 06/15/2013 Æ | | | 750 | | | | 655 | |
| RSC Equipment Rental | | | | | | | | |
10.000%, 07/15/2017 n | | | 1,000 | | | | 1,000 | |
| Sally Holdings | | | | | | | | |
10.500%, 11/15/2016 6 | | | 1,300 | | | | 1,287 | |
| Seminole Hard Rock Entertainment | | | | | | | | |
3.129%, 03/15/2014 Δ n | | | 1,000 | | | | 690 | |
| Snoqualmie Entertainment | | | | | | | | |
9.125%, 02/01/2015 n | | | 1,000 | | | | 520 | |
| Susser Holdings | | | | | | | | |
| 10.625%, 12/15/2013 | | | 800 | | | | 802 | |
| Tenneco | | | | | | | | |
| 8.125%, 11/15/2015 | | | 650 | | | | 514 | |
| Toys R Us | | | | | | | | |
| 7.875%, 04/15/2013 | | | 1,500 | | | | 1,253 | |
| Trimas | | | | | | | | |
| 9.875%, 06/15/2012 | | | 1,000 | | | | 860 | |
| Wyndham Worldwide | | | | | | | | |
| 6.000%, 12/01/2016 | | | 1,400 | | | | 1,095 | |
| | | | | | | | | |
| | | | | | | | 40,715 | |
| | | | | | | | | |
| Consumer Non Cyclical – 8.4% |
| Albertson’s | | | | | | | | |
| 8.700%, 05/01/2030 | | | 1,000 | | | | 873 | |
| Alliance One International | | | | | | | | |
10.000%, 07/15/2016 n | | | 1,000 | | | | 948 | |
| Apria Healthcare Group I | | | | | | | | |
11.250%, 11/01/2014 n | | | 1,500 | | | | 1,447 | |
| Cardinal Health | | | | | | | | |
| 9.500%, 04/15/2015 | | | 750 | | | | 391 | |
| Community Health Systems | | | | | | | | |
| 8.875%, 07/15/2015 | | | 1,000 | | | | 980 | |
| Constellation Brands | | | | | | | | |
| 7.250%, 05/15/2017 | | | 1,000 | | | | 925 | |
| Cott Beverages USA | | | | | | | | |
| 8.000%, 12/15/2011 | | | 1,000 | | | | 930 | |
| Del Monte | | | | | | | | |
| 8.625%, 12/15/2012 | | | 800 | | | | 810 | |
| HCA | | | | | | | | |
| 6.750%, 07/15/2013 | | | 2,000 | | | | 1,760 | |
| Health Management Association | | | | | | | | |
| 6.125%, 04/15/2016 | | | 1,300 | | | | 1,115 | |
| Ingles Markets | | | | | | | | |
8.875%, 05/15/2017 n 6 | | | 1,250 | | | | 1,231 | |
| JBS USA | | | | | | | | |
11.625%, 05/01/2014 n | | | 850 | | | | 803 | |
| Sealy Mattress | | | | | | | | |
10.875%, 04/15/2016 n | | | 600 | | | | 628 | |
| Select Medical | | | | | | | | |
| 7.625%, 02/01/2015 | | | 700 | | | | 569 | |
| Smithfield Foods | | | | | | | | |
| 7.000%, 08/01/2011 | | | 1,600 | | | | 1,520 | |
| 4.000%, 06/30/2013 | | | 1,000 | | | | 892 | |
10.000%, 07/15/2014 n | | | 500 | | | | 494 | |
| Stater Brothers Holdings | | | | | | | | |
| 7.750%, 04/15/2015 | | | 1,000 | | | | 960 | |
| Surgical Care Affiliates | | | | | | | | |
8.875%, 07/15/2015 n | | | 1,000 | | | | 770 | |
| | | | | | | | | |
| | | | | | | | 18,046 | |
| | | | | | | | | |
| Electric – 5.2% |
| AES | | | | | | | | |
9.750%, 04/15/2016 n | | | 1,000 | | | | 1,013 | |
| AES Red Oak | | | | | | | | |
| Series B | | | | | | | | |
| 9.200%, 11/30/2029 | | | 1,000 | | | | 845 | |
| Calpine Construction | | | | | | | | |
8.000%, 06/01/2016 n | | | 1,500 | | | | 1,436 | |
| CMS Energy | | | | | | | | |
| 6.300%, 02/01/2012 | | | 2,000 | | | | 1,940 | |
| 2.044%, 01/15/2013 Δ | | | 1,000 | | | | 830 | |
| Edison Mission Energy | | | | | | | | |
| 7.750%, 06/15/2016 | | | 700 | | | | 570 | |
| Majapahit Holdings | | | | | | | | |
7.750%, 10/17/2016 n Æ | | | 1,000 | | | | 880 | |
| Mirant Americas Generation | | | | | | | | |
| 8.500%, 10/01/2021 | | | 750 | | | | 593 | |
| NRG Energy | | | | | | | | |
| 7.375%, 02/01/2016 | | | 850 | | | | 804 | |
| RRI Energy | | | | | | | | |
7.625%, 06/15/2014 6 | | | 1,000 | | | | 915 | |
| Texas Competitive Electric Holdings | | | | | | | | |
| Series A | | | | | | | | |
| 10.250%, 11/01/2015 | | | 2,300 | | | | 1,432 | |
| | | | | | | | | |
| | | | | | | | 11,258 | |
| | | | | | | | | |
| Energy – 6.4% |
| Berry Petroleum | | | | | | | | |
| 10.250%, 06/01/2014 | | | 750 | | | | 757 | |
| Chesapeake Energy | | | | | | | | |
| 9.500%, 02/15/2015 | | | 1,500 | | | | 1,511 | |
| Citic Resources | | | | | | | | |
6.750%, 05/15/2014 n Æ | | | 1,000 | | | | 925 | |
| Connacher Oil & Gas | | | | | | | | |
11.750%, 07/15/2014 n Æ | | | 500 | | | | 482 | |
10.250%, 12/15/2015 n Æ | | | 500 | | | | 303 | |
| Forest Oil | | | | | | | | |
8.500%, 02/15/2014 n | | | 1,500 | | | | 1,474 | |
| Gibson Energy | | | | | | | | |
11.750%, 05/27/2014 n Æ | | | 1,000 | | | | 990 | |
| Indo Integrated Energy B | | | | | | | | |
| 8.500%, 06/01/2012 | | | 500 | | | | 471 | |
| Linn Energy | | | | | | | | |
11.750%, 05/15/2017 n | | | 500 | | | | 486 | |
| Lupatech Finance | | | | | | | | |
9.875%, 07/10/2049 n Æ | | | 750 | | | | 604 | |
The accompanying notes are an integral part of the financial statements.
34 First American Funds 2009 Annual Report
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Mariner Energy | | | | | | | | |
| 11.750%, 06/30/2016 | | $ | 1,000 | | | $ | 995 | |
| 8.000%, 05/15/2017 | | | 1,000 | | | | 830 | |
| Opti Canada | | | | | | | | |
7.875%, 12/15/2014 Æ | | | 500 | | | | 324 | |
| Petrohawk Energy | | | | | | | | |
| 9.125%, 07/15/2013 | | | 1,500 | | | | 1,492 | |
| Sabine Pass LNG | | | | | | | | |
| 7.500%, 11/30/2016 | | | 745 | | | | 602 | |
| Stone Energy | | | | | | | | |
| 6.750%, 12/15/2014 | | | 900 | | | | 567 | |
| Tesoro | | | | | | | | |
| 6.625%, 11/01/2015 | | | 1,000 | | | | 897 | |
| | | | | | | | | |
| | | | | | | | 13,710 | |
| | | | | | | | | |
| Finance – 2.6% |
| American General Finance | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.850%, 06/01/2013 | | | 345 | | | | 198 | |
| CIT Group | | | | | | | | |
| 4.125%, 11/03/2009 | | | 1,000 | | | | 948 | |
| 7.625%, 11/30/2012 | | | 1,000 | | | | 685 | |
| Glen Meadow | | | | | | | | |
6.505%, 02/12/2067 Δ n | | | 1,000 | | | | 509 | |
| GMAC | | | | | | | | |
6.625%, 05/15/2012 n | | | 1,000 | | | | 835 | |
6.750%, 12/01/2014 n | | | 800 | | | | 628 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 Δ n | | | 1,000 | | | | 370 | |
| Nuveen Investments | | | | | | | | |
| 5.500%, 09/15/2015 | | | 2,050 | | | | 1,035 | |
| Residential Capital | | | | | | | | |
8.500%, 05/15/2010 6 | | | 500 | | | | 435 | |
| | | | | | | | | |
| | | | | | | | 5,643 | |
| | | | | | | | | |
| Industrial Other – 0.8% |
| Crown Cork & Seal | | | | | | | | |
| 7.375%, 12/15/2026 | | | 1,000 | | | | 850 | |
| RBS Global & Rexnord | | | | | | | | |
| 9.500%, 08/01/2014 | | | 1,000 | | | | 855 | |
| | | | | | | | | |
| | | | | | | | 1,705 | |
| | | | | | | | | |
| Insurance – 0.4% |
| American International Group | | | | | | | | |
| 6.250%, 03/15/2037 | | | 2,000 | | | | 495 | |
8.175%, 05/15/2058 Δ n | | | 1,000 | | | | 285 | |
| | | | | | | | | |
| | | | | | | | 780 | |
| | | | | | | | | |
| Natural Gas – 3.0% |
| Copano Energy | | | | | | | | |
| 7.750%, 06/01/2018 | | | 750 | | | | 677 | |
| El Paso | | | | | | | | |
| 12.000%, 12/12/2013 | | | 500 | | | | 550 | |
| El Paso Energy | | | | | | | | |
| Series MTN | | | | | | | | |
| 7.800%, 08/01/2031 | | | 650 | | | | 530 | |
| Enterprise Products | | | | | | | | |
| 8.375%, 08/01/2066 Δ | | | 2,505 | | | | 2,017 | |
| Plains Exploration & Production | | | | | | | | |
| 7.750%, 06/15/2015 | | | 850 | | | | 795 | |
| Southern Union | | | | | | | | |
| 7.200%, 11/01/2066 Δ | | | 1,600 | | | | 1,088 | |
| Targa Resources | | | | | | | | |
| 8.500%, 11/01/2013 | | | 1,000 | | | | 747 | |
| | | | | | | | | |
| | | | | | | | 6,404 | |
| | | | | | | | | |
| Real Estate – 0.9% |
| Agile Property Holdings – REIT | | | | | | | | |
9.000%, 09/22/2013 n Æ | | | 750 | | | | 683 | |
| CB Richard Ellis | | | | | | | | |
11.625%, 06/15/2017 n | | | 500 | | | | 487 | |
| Lippo Karawaci Finance | | | | | | | | |
8.875%, 03/09/2011 Æ | | | 1,000 | | | | 860 | |
| | | | | | | | | |
| | | | | | | | 2,030 | |
| | | | | | | | | |
| Technology – 1.9% |
| First Data | | | | | | | | |
| 9.875%, 09/24/2015 | | | 2,000 | | | | 1,420 | |
| Freescale Semiconductor | | | | | | | | |
| 9.125%, 12/15/2014 | | | 2,541 | | | | 940 | |
| Magnachip Semiconductor | | | | | | | | |
6.875%, 12/15/2011 ª Æ | | | 750 | | | | — | |
| NXP BV/NXP Funding | | | | | | | | |
10.000%, 07/15/2013 n Æ | | | 131 | | | | 95 | |
| Seagate Technology | | | | | | | | |
6.800%, 10/01/2016 Æ | | | 500 | | | | 429 | |
| Spansion | | | | | | | | |
5.345%, 06/01/2013 n ª | | | 2,000 | | | | 1,300 | |
| | | | | | | | | |
| | | | | | | | 4,184 | |
| | | | | | | | | |
| Transportation – 3.8% |
| American Airlines | | | | | | | | |
| Series 2001-1 | | | | | | | | |
| 7.379%, 11/23/2017 | | | 1,193 | | | | 585 | |
| Series 2001-2 | | | | | | | | |
| 8.608%, 04/01/2011 | | | 820 | | | | 656 | |
| BLT Finance BV | | | | | | | | |
7.500%, 05/15/2014 n Æ | | | 300 | | | | 177 | |
| Continental Airlines | | | | | | | | |
Series 1997-1, Class A | | | | | | | | |
| 7.461%, 10/01/2016 | | | 582 | | | | 512 | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 1,500 | | | | 1,065 | |
| Delta Airlines | | | | | | | | |
Series 2001-1, Class B | | | | | | | | |
| 7.711%, 09/18/2011 | | | 2,100 | | | | 1,764 | |
Series 2007-1, Class C | | | | | | | | |
| 8.954%, 08/10/2014 | | | 459 | | | | 298 | |
| Navios Maritime Holdings | | | | | | | | |
| 9.500%, 12/15/2014 | | | 1,100 | | | | 902 | |
| Railamerica | | | | | | | | |
9.250%, 07/01/2017 n | | | 1,350 | | | | 1,303 | |
| Swift Transportation | | | | | | | | |
12.500%, 05/15/2017 n | | | 500 | | | | 175 | |
| United Airlines | | | | | | | | |
Series 2007-1, Class A | | | | | | | | |
| 6.636%, 01/02/2024 | | | 931 | | | | 697 | |
| | | | | | | | | |
| | | | | | | | 8,134 | |
| | | | | | | | | |
Total High Yield Corporate Bonds | | | | | | | | |
(Cost $182,224) | | | | | | | 166,325 | |
| | | | | | | | | |
Investment Grade Corporate Bonds – 5.3% |
| Basic Industry – 1.5% |
| Arcelormittal | | | | | | | | |
6.125%, 06/01/2018 Æ | | | 1,000 | | | | 875 | |
| International Paper | | | | | | | | |
7.400%, 06/15/2014 6 | | | 1,150 | | | | 1,145 | |
| 9.375%, 05/15/2019 | | | 500 | | | | 510 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 750 | | | | 678 | |
| | | | | | | | | |
| | | | | | | | 3,208 | |
| | | | | | | | | |
First American Funds 2009 Annual Report 35
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Consumer Cyclical – 0.7% |
| Whirlpool | | | | | | | | |
| 8.600%, 05/01/2014 | | $ | 1,500 | | | $ | 1,567 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.3% |
| CVS Caremark | | | | | | | | |
| 6.302%, 06/01/2037 Δ | | | 1,000 | | | | 740 | |
| | | | | | | | | |
| Energy – 0.7% |
| Gazprom International | | | | | | | | |
7.201%, 02/01/2020 n Æ | | | 563 | | | | 529 | |
TNK-BP Finance | | | | | | | | |
6.125%, 03/20/2012 n Æ | | | 1,000 | | | | 923 | |
| | | | | | | | | |
| | | | | | | | 1,452 | |
| | | | | | | | | |
| Finance – 1.0% |
| General Electric Capital | | | | | | | | |
| 6.375%, 11/15/2067 Δ | | | 1,250 | | | | 834 | |
| SLM | | | | | | | | |
| Series MTN | | | | | | | | |
| 1.252%, 07/26/2010 Δ | | | 1,500 | | | | 1,361 | |
| | | | | | | | | |
| | | | | | | | 2,195 | |
| | | | | | | | | |
| Real Estate – 0.6% |
| Brandywine Operating Partnership – REIT | | | | | | | | |
| 5.750%, 04/01/2012 | | | 1,325 | | | | 1,198 | |
| | | | | | | | | |
| Transportation – 0.5% |
| Con-way | | | | | | | | |
| 7.250%, 01/15/2018 | | | 1,300 | | | | 1,102 | |
| | | | | | | | | |
Total Investment Grade Corporate Bonds | | | | | | | | |
(Cost $11,494) | | | | | | | 11,462 | |
| | | | | | | | | |
Convertible Securities – 3.4% |
| Basic Industry – 0.3% |
| Peabody Energy | | | | | | | | |
| 4.750%, 12/15/2041 | | $ | 750 | | | | 539 | |
| | | | | | | | | |
| Consumer Cyclical – 0.1% |
| Charming Shoppes | | | | | | | | |
| 1.125%, 05/01/2014 | | $ | 480 | | | | 281 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.8% |
| Chiquita Brands | | | | | | | | |
| 4.250%, 08/15/2016 | | $ | 1,000 | | | | 703 | |
Archer Daniels Midland = | | | 12,000 | | | | 438 | |
| Bunge Limited | | | 8,400 | | | | 680 | |
| | | | | | | | | |
| | | | | | | | 1,821 | |
| | | | | | | | | |
| Energy – 0.4% |
| Headwaters | | | | | | | | |
2.875%, 06/01/2016 ¥ | | $ | 1,500 | | | | 806 | |
| | | | | | | | | |
| Finance – 0.2% |
| CIT Group | | | | | | | | |
| Series C | | | 24,000 | | | | 419 | |
| | | | | | | | | |
| Insurance – 0.4% |
| American Equity Investment Life | | | | | | | | |
| 5.250%, 12/06/2024 | | $ | 1,250 | | | | 905 | |
| | | | | | | | | |
| Real Estate – 0.8% |
| American Real Estate | | | | | | | | |
4.000%, 08/15/2013 Δ n ¥ | | $ | 1,250 | | | | 881 | |
| Boston Properties | | | | | | | | |
| 2.875%, 02/15/2037 | | $ | 1,000 | | | | 877 | |
| | | | | | | | | |
| | | | | | | | 1,758 | |
| | | | | | | | | |
| Technology – 0.4% |
| Advanced Micro Devices | | | | | | | | |
| 6.000%, 05/01/2015 | | | 900 | | | | 422 | |
| Hutchinson Technology | | | | | | | | |
| 3.250%, 01/15/2026 | | $ | 1,000 | | | | 435 | |
| | | | | | | | | |
| | | | | | | | 857 | |
| | | | | | | | | |
Total Convertible Securities | | | | | | | | |
(Cost $9,188) | | | | | | | 7,386 | |
| | | | | | | | | |
Preferred Stocks – 2.5% |
| Communications – 0.3% |
| US Cellular | | | 32,000 | | | | 652 | |
| | | | | | | | | |
| Energy – 0.4% |
| Constellation Energy Group | | | | | | | | |
Series A 6 | | | 25,000 | | | | 548 | |
| Nexen | | | | | | | | |
Series B Æ | | | 10,600 | | | | 218 | |
| | | | | | | | | |
| | | | | | | | 766 | |
| | | | | | | | | |
| Finance – 0.3% |
| Freddie Mac | | | 20,000 | | | | 16 | |
Prudential Financial 6 | | | 25,000 | | | | 590 | |
Regions Financing Trust III 6 | | | 4,300 | | | | 85 | |
| | | | | | | | | |
| | | | | | | | 691 | |
| | | | | | | | | |
| Insurance – 0.9% |
| Aspen Insurance Holdings | | | | | | | | |
Series A Æ | | | 50,000 | | | | 801 | |
| Endurance Specialty Holdings | | | | | | | | |
Series A Æ | | | 20,900 | | | | 366 | |
| MetLife | | | | | | | | |
| Series B | | | 15,000 | | | | 308 | |
| Renaissancere Holdings | | | | | | | | |
Series D Æ | | | 21,440 | | | | 418 | |
| | | | | | | | | |
| | | | | | | | 1,893 | |
| | | | | | | | | |
| Real Estate – 0.6% |
| American Home Mortgage Investments – REIT | | | | | | | | |
Series B ª ¥ = | | | 10,000 | | | | — | |
| Ashford Hospitality Trust – REIT | | | | | | | | |
| Series D | | | 4,500 | | | | 51 | |
| Duke Realty – REIT | | | | | | | | |
| Series O | | | 29,700 | | | | 522 | |
| First Industrial Realty Trust – REIT | | | | | | | | |
| Series J | | | 14,000 | | | | 160 | |
| Hospitality Properties Trust – REIT | | | | | | | | |
| Series C | | | 20,000 | | | | 310 | |
| National Retail Properties – REIT | | | | | | | | |
| Series C | | | 12,600 | | | | 251 | |
| | | | | | | | | |
| | | | | | | | 1,294 | |
| | | | | | | | | |
| Transportation – 0.0% |
Delta Air Contingent Value = | | | 8,000,000 | | | | 56 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $7,786) | | | | | | | 5,352 | |
| | | | | | | | | |
Exchange-Traded Funds – 2.3% |
iShares iBoxx $ High Yield Corporate Bond Fund 6 | | | 24,500 | | | | 1,953 | |
Powershares Financial Preferred Portfolio 6 | | | 29,000 | | | | 422 | |
| SPDR Barclays Capital High Yield Bond Fund | | | 43,000 | | | | 1,513 | |
SPDR DB International Government Inflation-Protected Bond Fund 6 | | | 19,400 | | | | 1,016 | |
| | | | | | | | | |
Total Exchange-Traded Funds | | | | | | | | |
(Cost $4,532) | | | | | | | 4,904 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
36 First American Funds 2009 Annual Report
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE |
| |
| |
Closed-End Funds – 1.6% |
| Aberdeen Asia-Pacific Income Fund Δ | | | 26,000 | | | $ | 145 | |
| DCA Total Return Fund | | | 69,900 | | | | 109 | |
| Franklin Templeton Limited Duration Income Trust | | | 50,100 | | | | 520 | |
Gabelli Global Gold Natural Resources & Income Trust Δ 6 | | | 16,000 | | | | 217 | |
| Highland Credit Strategies Fund | | | 128,000 | | | | 628 | |
| ING Clarion Global Real Estate Income Fund | | | 49,000 | | | | 238 | |
| Nuveen Equity Premium Opportunity Fund | | | 48,600 | | | | 536 | |
| Nuveen Multi-Strategy Income and Growth Fund | | | 64,000 | | | | 358 | |
| Pioneer Floating Rate Trust | | | 73,000 | | | $ | 694 | |
| Western Asset Global Partners Income Fund | | | 4,000 | | | | 37 | |
| | | | | | | | | |
Total Closed-End Funds | | | | | | | | |
(Cost $4,282) | | | | | | | 3,482 | |
| | | | | | | | | |
Asset-Backed Securities – 0.6% |
Manufactured Housing – 0.0% |
| Green Tree Financial | | | | | | | | |
Series 1998-1, Class A4 | | | | | | | | |
6.040%, 11/01/2029 ¥ | | $ | 6 | | | | 6 | |
| | | | | | | | | |
| Other – 0.6% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.413%, 06/11/2050 | | | 460 | | | | 150 | |
| Exum | | | | | | | | |
Series 2007-1A, Class C | | | | | | | | |
4.327%, 03/22/2014 Δ n ª ¥ ⊡ | | | 1,024 | | | | 544 | |
Series 2007-2A, Class C | | | | | | | | |
4.727%, 06/22/2014 Δ n ª ¥ ⊡ | | | 1,046 | | | | 567 | |
| | | | | | | | | |
| | | | | | | | 1,261 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $2,410) | | | | | | | 1,267 | |
| | | | | | | | | |
Common Stocks – 0.6% |
| Banking – 0.2% |
| Bank of America | | | 38,910 | | | | 513 | |
| | | | | | | | | |
| Communications – 0.0% |
Adelphia Recovery Trust = | | | 958,406 | | | | 24 | |
Viatel Holding Bermuda Æ ¥ = ⊡ | | | 1 | | | | — | |
| | | | | | | | | |
| | | | | | | | 24 | |
| | | | | | | | | |
| Consumer Cyclical – 0.0% |
| Leggett & Platt | | | 6,500 | | | | 99 | |
| | | | | | | | | |
| Consumer Discretionary – 0.1% |
| Target | | | 4,000 | | | | 158 | |
| | | | | | | | | |
| Energy – 0.2% |
Pengrowth Energy Trust Æ 6 | | | 51,000 | | | | 403 | |
| | | | | | | | | |
| Industrials – 0.0% |
Delta Air Lines = | | | 12,066 | | | | 70 | |
| | | | | | | | | |
| Real Estate – 0.1% |
Macerich – REIT 6 | | | 5,884 | | | | 104 | |
| | | | | | | | | |
Total Common Stocks | | | | | | | | |
(Cost $1,257) | | | | | | | 1,371 | |
| | | | | | | | | |
Short-Term Investments – 5.9% |
| Money Market Fund – 5.8% |
| First American Prime Obligations Fund, | | | | | | | | |
Class Z Å | | | 12,449,178 | | | | 12,449 | |
| | | | | | | | | |
| U.S. Treasury Obligation – 0.1% |
| U.S. Treasury Bill | | | | | | | | |
0.362%, 02/11/2010 o | | $ | 200 | | | | 200 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $12,649) | | | | | | | 12,649 | |
| | | | | | | | | |
Investment Purchased with Proceeds
from Securities Lending – 8.0% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $17,157) | | | 17,156,607 | | | | 17,157 | |
| | | | | | | | | |
Total Investments5 – 107.5% | | | | | | | | |
(Cost $252,979) | | | | | | | 231,355 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (7.5)% | | | | | | | (16,148 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 215,207 | |
| | | | | | | | | |
| | |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $56,359 or 26.2% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ª | | Security in default at June 30, 2009. |
| |
| Æ | | Represents a foreign high yield (non-investment grade) U.S. dollar denominated security. On June 30, 2009, the value of these investments was $26,178 which represents 12.2% of total net assets. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $4,457 or 2.1% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $16,751 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| = | | Non-income producing security. |
| |
| ⊡ | | Security is fair valued. As of June 30, 2009, the value of these investments was $1,111 or 0.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $253,512. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 9,403 | |
| Gross unrealized depreciation | | | (31,560 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (22,157 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
First American Funds 2009 Annual Report 37
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
High Income Bond Fund (concluded)
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | |
| | | | | | Number of
| | | Notional
| | Unrealized
| |
| | | Settlement
| | | Contracts
| | | Contract
| | Appreciation
| |
| Description | | Month | | | Purchased | | | Value | | (Depreciation) | |
| | |
| Eurodollar 90 Day Futures | | | December 2009 | | | | 40 | | | $39,640 | | $ | 3 | |
| Eurodollar 90 Day Futures | | | March 2010 | | | | 60 | | | 59,296 | | | (11 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | (8 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | |
| Inflation Protected Securities Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
U.S. Government & Agency Securities – 89.1% |
| Inflation Protected U.S. Treasuries ◄ – 89.1% |
| U.S. Treasury Bonds | | | | | | | | |
| 2.375%, 01/15/2025 | | $ | 15,101 | | | $ | 15,521 | |
| 2.000%, 01/15/2026 | | | 4,002 | | | | 3,918 | |
| 2.375%, 01/15/2027 | | | 740 | | | | 766 | |
| 1.750%, 01/15/2028 | | | 254 | | | | 240 | |
| 3.625%, 04/15/2028 | | | 11,008 | | | | 13,395 | |
| 3.875%, 04/15/2029 | | | 12,030 | | | | 15,263 | |
| U.S. Treasury Notes | | | | | | | | |
0.875%, 04/15/2010 6 | | | 10,906 | | | | 10,906 | |
| 3.500%, 01/15/2011 | | | 1,562 | | | | 1,630 | |
2.375%, 04/15/2011 6 | | | 12,193 | | | | 12,554 | |
| 2.000%, 04/15/2012 | | | 525 | | | | 540 | |
3.000%, 07/15/2012 6 | | | 5,514 | | | | 5,842 | |
1.875%, 07/15/2013 6 | | | 5,398 | | | | 5,537 | |
2.000%, 01/15/2014 6 | | | 17,090 | | | | 17,480 | |
2.000%, 07/15/2014 6 | | | 3,959 | | | | 4,052 | |
1.625%, 01/15/2015 6 | | | 8,235 | | | | 8,197 | |
| 1.875%, 07/15/2015 | | | 7,032 | | | | 7,109 | |
2.000%, 01/15/2016 6 | | | 7,090 | | | | 7,197 | |
| 2.500%, 07/15/2016 | | | 6,931 | | | | 7,276 | |
| 2.375%, 01/15/2017 | | | 7,142 | | | | 7,452 | |
2.625%, 07/15/2017 6 | | | 5,247 | | | | 5,591 | |
1.625%, 01/15/2018 6 | | | 4,275 | | | | 4,233 | |
1.375%, 07/15/2018 6 | | | 692 | | | | 671 | |
| 2.125%, 01/15/2019 | | | 1,018 | | | | 1,052 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $158,007) | | | | | | | 156,422 | |
| | | | | | | | | |
Asset-Backed Securities – 4.2% |
| Credit Cards – 1.2% |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2007-A8, Class A8 | | | | | | | | |
| 5.650%, 09/20/2019 | | | 1,075 | | | | 1,094 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.639%, 01/15/2013 Δ | | | 500 | | | | 457 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
0.719%, 05/15/2014 Δ n ¥ | | | 625 | | | | 587 | |
| | | | | | | | | |
| | | | | | | | 2,138 | |
| | | | | | | | | |
| Other – 3.0% |
| GMAC Commercial Mortgage Securities | | | | | | | | |
Series 2003-C3, Class A2 | | | | | | | | |
| 4.223%, 04/10/2040 | | | 847 | | | | 843 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2007-GG11, Class A4 | | | | | | | | |
| 5.736%, 12/10/2049 | | | 1,000 | | | | 804 | |
Series 2007-GG11, Class AJ | | | | | | | | |
| 6.207%, 12/10/2049 Δ | | | 2,000 | | | | 812 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 | | | 2,010 | | | | 1,519 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 1,000 | | | | 661 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C33, Class AJ | | | | | | | | |
| 6.100%, 02/15/2051 Δ | | | 1,000 | | | | 266 | |
The accompanying notes are an integral part of the financial statements.
38 First American Funds 2009 Annual Report
| | | | | | | | | |
| Inflation Protected Securities Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Series 2007-C34, Class AJ | | | | | | | | |
| 6.147%, 05/15/2046 Δ | | $ | 1,000 | | | $ | 296 | |
| | | | | | | | | |
| | | | | | | | 5,201 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $10,397) | | | | | | | 7,339 | |
| | | | | | | | | |
Corporate Bonds – 2.4% |
| Basic Industry – 1.2% |
| FMG Finance | | | | | | | | |
10.000%, 09/01/2013 n | | | 500 | | | | 480 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 150 | | | | 139 | |
| Griffin Coal Mining | | | | | | | | |
9.500%, 12/01/2016 n | | | 300 | | | | 155 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 950 | | | | 859 | |
| USG | | | | | | | | |
| 7.750%, 01/15/2018 | | | 100 | | | | 85 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n | | | 400 | | | | 332 | |
| | | | | | | | | |
| | | | | | | | 2,050 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.2% |
| HCA | | | | | | | | |
| 9.250%, 11/15/2016 | | | 100 | | | | 98 | |
| Smithfield Foods | | | | | | | | |
| 7.000%, 08/01/2011 | | | 275 | | | | 261 | |
| | | | | | | | | |
| | | | | | | | 359 | |
| | | | | | | | | |
| Insurance – 1.0% |
| Allstate Life Global Funding Trust | | | | | | | | |
| Series MTN | | | | | | | | |
| 0.670%, 03/01/2010 Δ | | | 900 | | | | 874 | |
| Pacific Life Global Funding | | | | | | | | |
1.800%, 02/06/2016 Δ n | | | 1,000 | | | | 877 | |
| | | | | | | | | |
| | | | | | | | 1,751 | |
| | | | | | | | | |
| Transportation – 0.0% |
| Delta Airlines | | | | | | | | |
Series 2001-1, Class B | | | | | | | | |
| 7.711%, 09/18/2011 | | | 100 | | | | 84 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $4,689) | | | | | | | 4,244 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Security – 1.0% |
| Fixed Rate – 1.0% |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2007-13, Class A8 | | | | | | | | |
| 6.000%, 09/25/2037 | | | | | | | | |
(Cost $2,028) | | | 2,068 | | | | 1,747 | |
| | | | | | | | | |
Municipal Bond – 0.5% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | | | | | | |
6.950%, 09/01/2016 ¥ | | | | | | | | |
(Cost $845) | | | 845 | | | | 791 | |
| | | | | | | | | |
Convertible Securities – 0.2% |
| Basic Industry – 0.0% |
| Freeport-McMoran Copper & Gold | | | 1,500 | | | $ | 119 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.1% |
| Bunge Limited | | | 1,500 | | | | 121 | |
| | | | | | | | | |
| Energy – 0.1% |
| Headwaters | | | | | | | | |
2.875%, 06/01/2016 ¥ | | | 280 | | | | 151 | |
| | | | | | | | | |
Total Convertible Securities | | | | | | | | |
(Cost $630) | | | | | | | 391 | |
| | | | | | | | | |
Preferred Stocks – 0.1% |
Banking – 0.1% |
| Bank of America | | | | | | | | |
| Series MER | | | 8,400 | | | | 170 | |
| | | | | | | | | |
| Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
| Series S | | | 16,000 | | | | 22 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $610) | | | | | | | 192 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security – 0.1% |
| Fixed Rate – 0.1% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | | | | | | |
(Cost $173) | | $ | 173 | | | | 176 | |
| | | | | | | | | |
Exchange-Traded Fund – 0.1% |
iShares iBoxx $ High Yield Corporate Bond Fund 6 | | | | | | | | |
(Cost $136) | | | 1,800 | | | | 144 | |
| | | | | | | | | |
Short-Term Investments – 2.4% |
| Money Market Fund – 2.2% |
First American Prime Obligations Fund,
Class Z Å | | | 3,818,696 | | | | 3,819 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.2% |
U.S. Treasury Bills o | | | | | | | | |
| 0.175%, 09/24/2009 | | $ | 55 | | | | 55 | |
| 0.185%, 10/08/2009 | | | 100 | | | | 100 | |
| 0.362%, 02/11/2010 | | | 200 | | | | 199 | |
| | | | | | | | | |
| | | | | | | | 354 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $4,173) | | | | | | | 4,173 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 30.8% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $54,175) | | | 54,175,163 | | | | 54,175 | |
| | | | | | | | | |
Total Investments 5 – 130.9% | | | | | | | | |
(Cost $235,863) | | | | | | | 229,794 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (30.9)% | | | | | | | (54,186 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 175,608 | |
| | | | | | | | | |
| | |
| ◄ | | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
First American Funds 2009 Annual Report 39
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
Inflation Protected Securities Fund (continued)
| | |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $53,222 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $2,570 or 1.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $1,529 or 0.9% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $236,950. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,946 | |
| Gross unrealized depreciation | | | (9,102 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (7,156 | ) |
| | | | | |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | Notional
| | Unrealized
| |
| | | Settlement
| | | Contracts
| | | Contract
| | Appreciation
| |
| Description | | Month | | | Purchased | | | Value | | (Depreciation) | |
| | |
| Canadian Dollar Currency Futures | | | September 2009 | | | | 6 | | | $ | 517 | | $ | (29 | ) |
| U.S. Treasury 2 Year Note Futures | | | September 2009 | | | | 21 | | | | 4,541 | | | 16 | |
| U.S. Treasury 5 Year Note Futures | | | September 2009 | | | | 27 | | | | 3,097 | | | (20 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2009 | | | | 11 | | | | 1,279 | | | (1 | ) |
| U.S. Treasury Long Bond Futures | | | September 2009 | | | | 12 | | | | 1,420 | | | 38 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 4 | |
| | | | | | | | | | | | | | | | |
Credit Default Swap Agreement
Credit Default Swap on Credit Indices
Sell Protection1
| | | | | | | | | | | | | | | | | | | |
| | | | | Receive
| | | | | | | | | | |
| | | Reference
| | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Date | | | Amount2 | | | Depreciation | |
| | |
| UBS | | Markit iTraxx Asia
ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | $ | 1,300 | | | $ | (116 | ) |
| | | | | | | | | | | | | | | | | | | |
| | |
| | 1 | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or |
Inflation Protected Securities Fund (concluded)
(ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index.
| | |
| | 2 | The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
Interest Rate Swap Agreement
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 4.045% | | | | 11/14/18 | | | $ | 1,000 | | | $ | (27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
40 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Government Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
U.S. Government & Agency Securities – 96.2% |
| U.S. Agency Debentures – 44.5% |
| Federal Farm Credit Bank | | | | | | | | |
| 4.125%, 07/17/2009 | | $ | 1,100 | | | $ | 1,102 | |
| 4.500%, 10/05/2009 | | | 1,000 | | | | 1,011 | |
| 4.125%, 11/13/2009 | | | 1,560 | | | | 1,582 | |
| 4.750%, 05/07/2010 | | | 1,500 | | | | 1,554 | |
| 2.250%, 07/01/2010 | | | 1,365 | | | | 1,388 | |
| 5.250%, 09/13/2010 | | | 1,000 | | | | 1,052 | |
| 3.750%, 12/06/2010 | | | 1,575 | | | | 1,639 | |
| 5.750%, 01/18/2011 | | | 1,800 | | | | 1,933 | |
| 4.875%, 02/18/2011 | | | 1,600 | | | | 1,699 | |
| 2.625%, 04/21/2011 | | | 1,500 | | | | 1,539 | |
| 3.875%, 08/25/2011 | | | 3,600 | | | | 3,787 | |
| 2.250%, 04/24/2012 | | | 2,740 | | | | 2,771 | |
| 2.125%, 06/18/2012 | | | 1,130 | | | | 1,134 | |
| 4.500%, 10/17/2012 | | | 1,565 | | | | 1,684 | |
| 3.875%, 10/07/2013 | | | 1,350 | | | | 1,421 | |
| 2.625%, 04/17/2014 | | | 1,400 | | | | 1,388 | |
| Federal Home Loan Bank | | | | | | | | |
| 4.875%, 03/12/2010 | | | 870 | | | | 897 | |
| 3.375%, 08/13/2010 | | | 1,430 | | | | 1,475 | |
| 5.125%, 09/10/2010 | | | 900 | | | | 950 | |
| 4.375%, 09/17/2010 | | | 710 | | | | 742 | |
| 4.250%, 06/10/2011 | | | 1,500 | | | | 1,586 | |
| 2.250%, 04/13/2012 | | | 2,500 | | | | 2,530 | |
| 1.875%, 06/20/2012 | | | 2,000 | | | | 1,997 | |
| 4.625%, 10/10/2012 | | | 910 | | | | 983 | |
| 5.000%, 11/17/2017 | | | 1,865 | | | | 1,984 | |
| Tennessee Valley Authority | | | | | | | | |
1.160%, 01/15/2010 ¤ | | | 1,135 | | | | 1,129 | |
| 5.625%, 01/18/2011 | | | 2,000 | | | | 2,141 | |
| 6.790%, 05/23/2012 | | | 3,175 | | | | 3,584 | |
| 6.000%, 03/15/2013 | | | 2,725 | | | | 3,044 | |
| | | | | | | | | |
| | | | | | | | 49,726 | |
| | | | | | | | | |
| U.S. Treasuries – 51.7% |
| U.S. Treasury Bonds | | | | | | | | |
| 11.750%, 11/15/2014 | | | 1,575 | | | | 1,640 | |
| 8.750%, 05/15/2017 | | | 1,135 | | | | 1,554 | |
| 9.125%, 05/15/2018 | | | 1,260 | | | | 1,805 | |
| 9.000%, 11/15/2018 | | | 1,125 | | | | 1,612 | |
| 8.875%, 02/15/2019 | | | 830 | | | | 1,184 | |
| 8.125%, 08/15/2019 | | | 1,665 | | | | 2,283 | |
| 8.500%, 02/15/2020 | | | 1,250 | | | | 1,758 | |
| 8.750%, 08/15/2020 | | | 3,300 | | | | 4,727 | |
| U.S. Treasury Notes | | | | | | | | |
| 3.625%, 12/31/2012 | | | 960 | | | | 1,018 | |
| 2.750%, 02/28/2013 | | | 1,000 | | | | 1,028 | |
| 3.375%, 07/31/2013 | | | 7,350 | | | | 7,702 | |
| 2.000%, 11/30/2013 | | | 1,170 | | | | 1,153 | |
| 4.750%, 05/15/2014 | | | 9,700 | | | | 10,694 | |
| 4.250%, 08/15/2014 | | | 12,200 | | | | 13,157 | |
| 7.500%, 11/15/2016 | | | 2,265 | | | | 2,889 | |
| 3.750%, 11/15/2018 | | | 3,550 | | | | 3,611 | |
| | | | | | | | | |
| | | | | | | | 57,815 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $106,930) | | | | | | $ | 107,541 | |
| | | | | | | | | |
Short-Term Investments – 4.1% |
First American Government Obligations Fund, Class Z Å | | | 2,029,515 | | | | 2,029 | |
First American U.S. Treasury Money Market Fund, Class Z Å | | | 2,566,542 | | | | 2,567 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $4,596) | | | | | | | 4,596 | |
| | | | | | | | | |
Total Investments 5 – 100.3% | | | | | | | | |
(Cost $111,526) | | | | | | | 112,137 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (0.3)% | | | | | | | (388 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 111,749 | |
| | | | | | | | | |
| | |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $111,547. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 2,145 | |
| Gross unrealized depreciation | | | (1,555 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 590 | |
| | | | | |
First American Funds 2009 Annual Report 41
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Corporate Bonds – 56.4% |
| Banking – 9.1% |
| Bank of America | | | | | | | | |
| 5.750%, 12/01/2017 | | $ | 4,015 | | | $ | 3,575 | |
| 5.650%, 05/01/2018 | | | 1,745 | | | | 1,542 | |
| 7.625%, 06/01/2019 | | | 4,000 | | | | 4,018 | |
| 8.000%, 12/29/2049 Δ | | | 7,810 | | | | 6,523 | |
| BB&T | | | | | | | | |
| 6.850%, 04/30/2019 | | | 2,665 | | | | 2,772 | |
| Citigroup | | | | | | | | |
| 6.125%, 11/21/2017 | | | 4,590 | | | | 4,024 | |
| 6.125%, 05/15/2018 | | | 1,100 | | | | 962 | |
| 8.500%, 05/22/2019 | | | 3,000 | | | | 3,052 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2057 Δ | | | 1,475 | | | | 1,150 | |
| Credit Suisse New York | | | | | | | | |
| 5.500%, 05/01/2014 | | | 2,825 | | | | 2,935 | |
| Fifth Third Bancorp | | | | | | | | |
6.250%, 05/01/2013 6 | | | 3,745 | | | | 3,680 | |
| Fifth Third Bank | | | | | | | | |
| Series BKNT | | | | | | | | |
| 4.200%, 02/23/2010 | | | 1,250 | | | | 1,249 | |
| JPMorgan Chase | | | | | | | | |
4.650%, 06/01/2014 6 | | | 2,755 | | | | 2,748 | |
| 5.150%, 10/01/2015 | | | 3,290 | | | | 3,243 | |
| Series 1 | | | | | | | | |
| 7.900%, 04/29/2049 Δ | | | 4,085 | | | | 3,575 | |
| JPMorgan Chase Capital XXII | | | | | | | | |
| Series V | | | | | | | | |
| 6.450%, 02/02/2037 | | | 1,750 | | | | 1,400 | |
| Keycorp | | | | | | | | |
| 6.500%, 05/14/2013 | | | 1,000 | | | | 996 | |
| National City Preferred Capital Trust I | | | | | | | | |
| 12.000%, 12/29/2049 Δ | | | 1,560 | | | | 1,632 | |
| North Fork Bancorp | | | | | | | | |
| 5.875%, 08/15/2012 | | | 3,130 | | | | 2,866 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 2,040 | | | | 2,006 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 1,170 | | | | 690 | |
| Wachovia | | | | | | | | |
| 5.750%, 06/15/2017 | | | 1,450 | | | | 1,431 | |
| 5.750%, 02/01/2018 | | | 560 | | | | 550 | |
| Wells Fargo | | | | | | | | |
| 4.375%, 01/31/2013 | | | 4,000 | | | | 4,034 | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 3,365 | | | | 2,793 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 3,545 | | | | 2,942 | |
| Wells Fargo Capital XV | | | | | | | | |
9.750%, 12/29/2049 Δ 6 | | | 1,760 | | | | 1,703 | |
| | | | | | | | | |
| | | | | | | | 68,091 | |
| | | | | | | | | |
| Basic Industry – 2.9% |
| Arcelormittal | | | | | | | | |
| 5.375%, 06/01/2013 | | | 7,835 | | | | 7,504 | |
| BHP Billiton Finance | | | | | | | | |
| 6.500%, 04/01/2019 | | | 1,650 | | | | 1,832 | |
| Celulosa Arauco Constitucion | | | | | | | | |
| 5.625%, 04/20/2015 | | | 2,000 | | | | 1,940 | |
| E.I. Du Pont de Nemours | | | | | | | | |
| 5.000%, 01/15/2013 | | | 1,315 | | | | 1,383 | |
| Rio Tinto Financial | | | | | | | | |
| 5.875%, 07/15/2013 | | | 3,300 | | | | 3,321 | |
| Teck Cominco | | | | | | | | |
| 5.375%, 10/01/2015 | | | 2,810 | | | | 2,389 | |
| U.S. Steel | | | | | | | | |
| 7.000%, 02/01/2018 | | | 1,750 | | | | 1,520 | |
| Vale Overseas | | | | | | | | |
| 6.250%, 01/11/2016 | | | 1,525 | | | | 1,559 | |
| | | | | | | | | |
| | | | | | | | 21,448 | |
| | | | | | | | | |
| Brokerage – 4.8% |
| Goldman Sachs Capital II | | | | | | | | |
| 5.793%, 12/29/2049 Δ | | | 1,165 | | | | 710 | |
| Goldman Sachs Group | | | | | | | | |
| 6.150%, 04/01/2018 | | | 11,900 | | | | 11,586 | |
| 7.500%, 02/15/2019 | | | 1,525 | | | | 1,633 | |
| Merrill Lynch | | | | | | | | |
| 5.450%, 02/05/2013 | | | 2,950 | | | | 2,871 | |
| 6.050%, 05/16/2016 | | | 4,625 | | | | 4,141 | |
| Series MTN | | | | | | | | |
| 6.150%, 04/25/2013 | | | 1,860 | | | | 1,863 | |
| Morgan Stanley | | | | | | | | |
| 5.375%, 10/15/2015 | | | 6,550 | | | | 6,418 | |
| Series MTN | | | | | | | | |
| 6.625%, 04/01/2018 | | | 6,700 | | | | 6,679 | |
| | | | | | | | | |
| | | | | | | | 35,901 | |
| | | | | | | | | |
| Capital Goods – 1.3% |
| BAE Systems Holdings | | | | | | | | |
6.375%, 06/01/2019 n | | | 2,000 | | | | 2,045 | |
| Boeing | | | | | | | | |
| 6.000%, 03/15/2019 | | | 2,670 | | | | 2,911 | |
| Caterpillar Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 7.150%, 02/15/2019 | | | 2,565 | | | | 2,746 | |
| John Deere Capital | | | | | | | | |
| Series MTN | | | | | | | | |
| 4.500%, 04/03/2013 | | | 1,990 | | | | 2,030 | |
| | | | | | | | | |
| | | | | | | | 9,732 | |
| | | | | | | | | |
| Communications – 5.9% |
| AT&T | | | | | | | | |
5.800%, 02/15/2019 6 | | | 3,350 | | | | 3,401 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 n | | | 1,845 | | | | 1,842 | |
| British Telecom | | | | | | | | |
| 5.950%, 01/15/2018 | | | 2,415 | | | | 2,177 | |
| Comcast | | | | | | | | |
| 6.300%, 11/15/2017 | | | 6,315 | | | | 6,684 | |
| Deutsche Telekom | | | | | | | | |
| 5.875%, 08/20/2013 | | | 6,560 | | | | 6,881 | |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | | 1,170 | | | | 1,143 | |
| Nokia | | | | | | | | |
| 5.375%, 05/15/2019 | | | 700 | | | | 708 | |
| Rogers Communications | | | | | | | | |
| 6.800%, 08/15/2018 | | | 1,390 | | | | 1,490 | |
| Telecom Italia Capital | | | | | | | | |
| 7.175%, 06/18/2019 | | | 2,570 | | | | 2,605 | |
| Time Warner Cable | | | | | | | | |
| 8.250%, 02/14/2014 | | | 2,000 | | | | 2,242 | |
| 6.750%, 07/01/2018 | | | 2,025 | | | | 2,109 | |
| Verizon Communications | | | | | | | | |
| 5.250%, 04/15/2013 | | | 6,900 | | | | 7,242 | |
| 8.750%, 11/01/2018 | | | 3,270 | | | | 3,873 | |
| Vodafone Group | | | | | | | | |
| 5.625%, 02/27/2017 | | | 2,000 | | | | 2,031 | |
| | | | | | | | | |
| | | | | | | | 44,428 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
42 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Consumer Cyclical – 2.6% |
| American Honda Finance | | | | | | | | |
| Series MTN | | | | | | | | |
4.625%, 04/02/2013 n | | $ | 3,660 | | | $ | 3,466 | |
| Home Depot | | | | | | | | |
| 5.875%, 12/16/2036 | | | 1,775 | | | | 1,566 | |
| McDonald’s | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.350%, 03/01/2018 | | | 1,740 | | | | 1,836 | |
| Target | | | | | | | | |
5.125%, 01/15/2013 6 | | | 6,025 | | | | 6,382 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 3,165 | | | | 3,006 | |
| Yum! Brands | | | | | | | | |
| 8.875%, 04/15/2011 | | | 2,740 | | | | 2,991 | |
| | | | | | | | | |
| | | | | | | | 19,247 | |
| | | | | | | | | |
| Consumer Non Cyclical – 6.2% |
| Altria Group | | | | | | | | |
| 9.700%, 11/10/2018 | | | 3,000 | | | | 3,439 | |
| Anheuser-Busch InBev | | | | | | | | |
7.750%, 01/15/2019 n | | | 3,450 | | | | 3,773 | |
| ConAgra Foods | | | | | | | | |
| 5.875%, 04/15/2014 | | | 2,595 | | | | 2,751 | |
| Covidien International | | | | | | | | |
| 5.450%, 10/15/2012 | | | 2,240 | | | | 2,369 | |
| Express Scripts | | | | | | | | |
| 6.250%, 06/15/2014 | | | 3,000 | | | | 3,174 | |
| Genentech | | | | | | | | |
| 4.750%, 07/15/2015 | | | 1,650 | | | | 1,705 | |
| General Mills | | | | | | | | |
| 5.700%, 02/15/2017 | | | 4,410 | | | | 4,643 | |
| 5.650%, 02/15/2019 | | | 1,635 | | | | 1,709 | |
| Kellogg | | | | | | | | |
| 4.450%, 05/30/2016 | | | 2,620 | | | | 2,622 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 1,225 | | | | 1,290 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 1,815 | | | | 1,878 | |
| Philip Morris | | | | | | | | |
| 4.875%, 05/16/2013 | | | 5,000 | | | | 5,247 | |
| Roche Holdings | | | | | | | | |
6.000%, 03/01/2019 n | | | 2,100 | | | | 2,239 | |
| Schering-Plough | | | | | | | | |
| 5.550%, 12/01/2013 | | | 4,595 | | | | 4,936 | |
| UnitedHealth Group | | | | | | | | |
| 4.875%, 02/15/2013 | | | 2,965 | | | | 2,997 | |
| 6.000%, 02/15/2018 | | | 2,000 | | | | 1,920 | |
| | | | | | | | | |
| | | | | | | | 46,692 | |
| | | | | | | | | |
| Electric – 2.8% |
| MidAmerican Energy Holdings | | | | | | | | |
| 5.875%, 10/01/2012 | | | 3,445 | | | | 3,669 | |
| National Rural Utilities | | | | | | | | |
| 10.375%, 11/01/2018 | | | 3,100 | | | | 3,887 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 2,100 | | | | 2,139 | |
| Oncor Electric Delivery | | | | | | | | |
| 6.375%, 01/15/2015 | | | 3,140 | | | | 3,283 | |
| PPL Energy Supply | | | | | | | | |
| 6.300%, 07/15/2013 | | | 2,000 | | | | 2,097 | |
| Taqa Abu Dhabi National Energy | | | | | | | | |
6.165%, 10/25/2017 n | | | 2,030 | | | | 1,921 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 3,780 | | | | 4,058 | |
| | | | | | | | | |
| | | | | | | | 21,054 | |
| | | | | | | | | |
| Energy – 4.8% |
| Anadarko Petroleum | | | | | | | | |
| 5.950%, 09/15/2016 | | | 4,000 | | | | 3,946 | |
| Canadian National Resources | | | | | | | | |
| 5.900%, 02/01/2018 | | | 660 | | | | 674 | |
| ConocoPhillips | | | | | | | | |
6.000%, 01/15/2020 6 | | | 3,280 | | | | 3,512 | |
| Encana | | | | | | | | |
| 6.500%, 05/15/2019 | | | 700 | | | | 750 | |
| Hess | | | | | | | | |
| 8.125%, 02/15/2019 | | | 2,750 | | | | 3,131 | |
| Marathon Oil | | | | | | | | |
| 5.900%, 03/15/2018 | | | 1,420 | | | | 1,424 | |
| 7.500%, 02/15/2019 | | | 2,060 | | | | 2,248 | |
| Nexen | | | | | | | | |
| 5.650%, 05/15/2017 | | | 4,180 | | | | 4,056 | |
| Suncor Energy | | | | | | | | |
| 6.100%, 06/01/2018 | | | 1,275 | | | | 1,282 | |
| Talisman Energy | | | | | | | | |
| 7.750%, 06/01/2019 | | | 2,500 | | | | 2,769 | |
| Tengizchevroil Finance | | | | | | | | |
6.124%, 11/15/2014 n | | | 2,432 | | | | 2,189 | |
| Weatherford International | | | | | | | | |
| 5.950%, 06/15/2012 | | | 3,690 | | | | 3,853 | |
| XTO Energy | | | | | | | | |
4.625%, 06/15/2013 6 | | | 3,000 | | | | 3,011 | |
| 5.650%, 04/01/2016 | | | 3,295 | | | | 3,336 | |
| | | | | | | | | |
| | | | | | | | 36,181 | |
| | | | | | | | | |
| Finance – 5.2% |
| American Express | | | | | | | | |
7.250%, 05/20/2014 6 | | | 4,125 | | | | 4,267 | |
| American Express Centurion | | | | | | | | |
| Series BKNT | | | | | | | | |
| 5.550%, 10/17/2012 | | | 2,035 | | | | 2,033 | |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 2,405 | | | | 2,500 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 3,140 | | | | 3,208 | |
| Capital One Financial | | | | | | | | |
| 6.150%, 09/01/2016 | | | 1,775 | | | | 1,571 | |
| CIT Group | | | | | | | | |
| 5.650%, 02/13/2017 | | | 1,955 | | | | 1,103 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 2,395 | | | | 2,125 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 Δ n | | | 1,635 | | | | 961 | |
| General Electric Capital | | | | | | | | |
4.800%, 05/01/2013 6 | | | 6,235 | | | | 6,242 | |
| Series MTN | | | | | | | | |
| 5.625%, 09/15/2017 | | | 3,955 | | | | 3,785 | |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | | 2,635 | | | | 2,005 | |
| Janus Capital Group | | | | | | | | |
| 6.700%, 06/15/2017 | | | 1,620 | | | | 1,415 | |
| Rockies Express Pipeline | | | | | | | | |
6.850%, 07/15/2018 n | | | 2,000 | | | | 2,114 | |
| SLM | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.400%, 10/25/2011 | | | 2,270 | | | | 2,042 | |
First American Funds 2009 Annual Report 43
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 n | | $ | 4,125 | | | $ | 3,547 | |
| | | | | | | | | |
| | | | | | | | 38,918 | |
| | | | | | | | | |
| Industrial Other – 0.6% |
| Johnson Controls | | | | | | | | |
5.250%, 01/15/2011 6 | | | 4,720 | | | | 4,771 | |
| | | | | | | | | |
| Insurance – 2.8% |
| Ace INA Holdings | | | | | | | | |
| 5.700%, 02/15/2017 | | | 2,765 | | | | 2,753 | |
| Allied World Assurance | | | | | | | | |
| 7.500%, 08/01/2016 | | | 3,040 | | | | 2,574 | |
| American International Group | | | | | | | | |
8.250%, 08/15/2018 n | | | 3,000 | | | | 1,766 | |
| Hartford Financial Services Group | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 3,055 | | | | 2,341 | |
| Met Life Global Funding I | | | | | | | | |
5.125%, 04/10/2013 n | | | 3,730 | | | | 3,794 | |
| MetLife | | | | | | | | |
| 7.717%, 02/15/2019 | | | 1,170 | | | | 1,251 | |
| Pacific Life Global Funding | | | | | | | | |
5.150%, 04/15/2013 n | | | 2,205 | | | | 2,198 | |
| Prudential Financial | | | | | | | | |
| 5.100%, 09/20/2014 | | | 3,235 | | | | 3,056 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2037 Δ n | | | 1,530 | | | | 1,102 | |
| | | | | | | | | |
| | | | | | | | 20,835 | |
| | | | | | | | | |
| Natural Gas – 0.6% |
| Kinder Morgan Energy Partners | | | | | | | | |
| 5.000%, 12/15/2013 | | | 4,560 | | | | 4,487 | |
| | | | | | | | | |
| Other Utility – 0.2% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 1,420 | | | | 1,363 | |
| | | | | | | | | |
| Real Estate – 1.9% |
| Health Care – REIT | | | | | | | | |
| 5.875%, 05/15/2015 | | | 3,775 | | | | 3,293 | |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 4,300 | | | | 3,730 | |
| iStar Financial – REIT | | | | | | | | |
| 5.650%, 09/15/2011 | | | 2,000 | | | | 1,160 | |
| Prologis – REIT | | | | | | | | |
| 5.500%, 04/01/2012 | | | 3,080 | | | | 2,835 | |
| Prologis 2006 – REIT | | | | | | | | |
| 5.750%, 04/01/2016 | | | 3,525 | | | | 2,778 | |
| | | | | | | | | |
| | | | | | | | 13,796 | |
| | | | | | | | | |
| Sovereign – 0.2% |
| United Mexican States | | | �� | | | | | |
| 5.625%, 01/15/2017 | | | 1,400 | | | | 1,415 | |
| | | | | | | | | |
| Technology – 1.7% |
| Chartered Semiconductor | | | | | | | | |
| 5.750%, 08/03/2010 | | | 1,500 | | | | 1,469 | |
| Computer Sciences | | | | | | | | |
| 6.500%, 03/15/2018 | | | 3,490 | | | | 3,566 | |
| Jabil Circuit | | | | | | | | |
| 5.875%, 07/15/2010 | | | 1,315 | | | | 1,289 | |
| Motorola | | | | | | | | |
| 8.000%, 11/01/2011 | | | 3,900 | | | | 3,926 | |
| National Semiconductor | | | | | | | | |
| 6.600%, 06/15/2017 | | | 2,930 | | | | 2,562 | |
| | | | | | | | | |
| | | | | | | | 12,812 | |
| | | | | | | | | |
| Transportation – 2.8% |
| AEP Texas Central | | | | | | | | |
| Series A-2 | | | | | | | | |
| 4.980%, 07/01/2013 | | | 9,695 | | | | 10,141 | |
| Burlington Northern Santa Fe | | | | | | | | |
| 5.650%, 05/01/2017 | | | 3,485 | | | | 3,557 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 1,445 | | | | 1,305 | |
| FedEx | | | | | | | | |
| 8.000%, 01/15/2019 | | | 2,000 | | | | 2,279 | |
| Union Pacific | | | | | | | | |
| 5.750%, 11/15/2017 | | | 3,320 | | | | 3,346 | |
| | | | | | | | | |
| | | | | | | | 20,628 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $424,433) | | | | | | | 421,799 | |
| | | | | | | | | |
Asset-Backed Securities – 25.8% |
| Automotive – 5.3% |
| Capital One Prime Auto Receivables Trust | | | | | | | | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.890%, 01/15/2012 | | | 1,905 | | | | 1,935 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 4,000 | | | | 4,091 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2005-4, Class A2 | | | | | | | | |
| 4.850%, 06/15/2012 | | | 2,490 | | | | 2,539 | |
| Hertz Vehicle Financing | | | | | | | | |
Series 2005-2A, Class A6 | | | | | | | | |
5.080%, 11/25/2011 n | | | 5,200 | | | | 5,073 | |
| Honda Auto Receivables Owner Trust | | | | | | | | |
Series 2005-6, Class A4 | | | | | | | | |
| 4.930%, 03/18/2011 | | | 4,025 | | | | 4,105 | |
| Huntington Auto Trust | | | | | | | | |
Series 2009-1A, Class A2 | | | | | | | | |
3.480%, 07/15/2011 n | | | 3,375 | | | | 3,401 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
Series 2007-B, Class A4 | | | | | | | | |
| 5.160%, 03/17/2014 | | | 5,500 | | | | 5,730 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2006-2, Class A4 | | | | | | | | |
| 5.370%, 02/15/2012 | | | 2,726 | | | | 2,799 | |
Series 2007-1, Class A3 | | | | | | | | |
| 5.430%, 10/17/2011 | | | 1,196 | | | | 1,218 | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.900%, 02/15/2012 | | | 682 | | | | 694 | |
Series 2008-1, Class A3 | | | | | | | | |
| 4.160%, 04/16/2012 | | | 2,000 | | | | 2,038 | |
| Wachovia Auto Loan Owner Trust | | | | | | | | |
Series 2006-2A, Class A4 | | | | | | | | |
| 5.230%, 03/20/2012 | | | 1,800 | | | | 1,832 | |
| Wachovia Auto Owner Trust | | | | | | | | |
Series 2005-B, Class A4 | | | | | | | | |
| 4.840%, 04/20/2011 | | | 3,093 | | | | 3,128 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2007-B, Class A3A | | | | | | | | |
| 5.280%, 01/17/2012 | | | 984 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 39,587 | |
| | | | | | | | | |
| Credit Cards – 5.6% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 1.525%, 08/15/2011 Δ | | | 1,930 | | | | 1,841 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2007-A8, Class A8 | | | | | | | | |
| 5.590%, 11/17/2014 | | | 5,865 | | | | 6,179 | |
The accompanying notes are an integral part of the financial statements.
44 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.900%, 04/15/2013 Δ | | $ | 2,500 | | | $ | 2,480 | |
| Cabela’s Master Credit Card Trust | | | | | | | | |
Series 2008-1A, Class A2 | | | | | | | | |
1.301%, 12/16/2013 Δ n | | | 2,910 | | | | 2,855 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2005-A3, Class A3 | | | | | | | | |
| 4.050%, 03/15/2013 | | | 2,500 | | | | 2,549 | |
Series 2008-3A, Class A3 | | | | | | | | |
| 5.050%, 02/15/2016 | | | 4,095 | | | | 4,242 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 3,000 | | | | 3,086 | |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2006-A4, Class A4 | | | | | | | | |
| 5.450%, 05/10/2013 | | | 11,195 | | | | 11,798 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 3,530 | | | | 3,537 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 1.515%, 01/15/2013 Δ | | | 1,940 | | | | 1,771 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
1.595%, 05/15/2014 Δ n ¥ | | | 1,920 | | | | 1,805 | |
| | | | | | | | | |
| | | | | | | | 42,143 | |
| | | | | | | | | |
| Equipment Leases – 0.5% |
| Caterpillar Financial Asset Trust | | | | | | | | |
Series 2007-A, Class A3A | | | | | | | | |
| 5.340%, 06/25/2012 | | | 3,770 | | | | 3,849 | |
| | | | | | | | | |
| Home Equity – 0.3% |
| Amresco Residential Security Mortgage | | | | | | | | |
Series 1997-3, Class A9 | | | | | | | | |
6.960%, 03/25/2027 ¥ | | | 37 | | | | 31 | |
| Contimortgage Home Equity Loan Trust | | | | | | | | |
Series 1997-2, Class A9 | | | | | | | | |
7.900%, 04/15/2028 ¥ | | | 29 | | | | 26 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-5, Class AF5 | | | | | | | | |
| 5.739%, 02/25/2034 | | | 3,634 | | | | 1,964 | |
| | | | | | | | | |
| | | | | | | | 2,021 | |
| | | | | | | | | |
| Manufactured Housing – 0.5% |
| Green Tree Financial | | | | | | | | |
Series 1996-9, Class A5 | | | | | | | | |
7.200%, 01/15/2028 ¥ | | | 103 | | | | 95 | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 Δ n | | | 1,750 | | | | 1,709 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 2,304 | | | | 2,272 | |
| | | | | | | | | |
| | | | | | | | 4,076 | |
| | | | | | | | | |
| Other – 11.6% |
| Banc of America Commercial Mortgage | | | | | | | | |
Series 2005-5, Class AM | | | | | | | | |
| 5.176%, 10/10/2045 Δ | | | 3,370 | | | | 2,105 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2007-PW15, Class A2 | | | | | | | | |
| 5.205%, 02/11/2044 | | | 3,605 | | | | 3,321 | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.210%, 06/11/2050 Δ | | | 1,775 | | | | 581 | |
Series 2007-T28, Class D | | | | | | | | |
5.991%, 09/11/2042 Δ n ¥ | | | 1,470 | | | | 297 | |
Citigroup Commercial Mortgage Trust Series 2008-C7, Class AJ | | | | | | | | |
| 6.299%, 12/10/2049 Δ | | | 2,145 | | | | 616 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-CD4, Class A2B | | | | | | | | |
| 5.205%, 12/11/2049 | | | 2,340 | | | | 2,140 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2004-RS1, Class A | | | | | | | | |
4.018%, 03/03/2041 n ¥ | | | 2,349 | | | | 1,631 | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | | 5,040 | | | | 4,280 | |
| Crown Castle Towers | | | | | | | | |
Series 2005-1A, Class B | | | | | | | | |
4.878%, 06/15/2035 n | | | 3,465 | | | | 3,361 | |
| Global Signal Trust | | | | | | | | |
Series 2004-2A, Class A | | | | | | | | |
4.232%, 12/15/2014 n | | | 7,390 | | | | 7,316 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 2,355 | | | | 2,328 | |
Series 2007-GG11, Class AJ | | | | | | | | |
| 6.003%, 12/10/2049 Δ | | | 4,150 | | | | 1,685 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-GG6, Class A2 | | | | | | | | |
| 5.560%, 04/10/2038 | | | 11,945 | | | | 11,569 | |
Series 2006-GG8, Class A2 | | | | | | | | |
| 5.479%, 11/10/2039 | | | 15,495 | | | | 14,463 | |
Series 2006-RR2, Class A1 | | | | | | | | |
5.689%, 06/23/2046 n ¥ | | | 2,242 | | | | 516 | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 | | | 10,060 | | | | 7,602 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2005-LDP5, Class B | | | | | | | | |
5.334%, 12/15/2044 Δ ¥ | | | 1,230 | | | | 583 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.127%, 07/12/2038 Δ ¥ | | | 1,455 | | | | 641 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2005-HQ6, Class B | | | | | | | | |
5.152%, 08/13/2042 Δ ¥ | | | 630 | | | | 305 | |
Series 2005-HQ6, Class C | | | | | | | | |
5.172%, 08/13/2042 Δ ¥ | | | 590 | | | | 273 | |
| Small Business Administration | | | | | | | | |
Series 2006-P10A, Class 1 | | | | | | | | |
| 5.408%, 02/10/2016 | | | 4,541 | | | | 4,771 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C30, Class A3 | | | | | | | | |
| 5.246%, 12/15/2043 | | | 10,280 | | | | 8,959 | |
Series 2007-C33, Class AJ | | | | | | | | |
| 5.902%, 02/15/2051 Δ | | | 2,315 | | | | 614 | |
Series 2007-C34, Class A2 | | | | | | | | |
| 5.569%, 05/15/2046 | | | 7,210 | | | | 6,243 | |
Series 2007-C34, Class AJ | | | | | | | | |
| 5.952%, 05/15/2046 Δ | | | 2,375 | | | | 704 | |
| | | | | | | | | |
| | | | | | | | 86,904 | |
| | | | | | | | | |
| Utilities – 2.0% |
| Centerpoint Energy Transition | | | | | | | | |
Series 2008-A, Class A1 | | | | | | | | |
| 4.192%, 02/01/2020 | | | 5,834 | | | | 5,915 | |
First American Funds 2009 Annual Report 45
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-1, Class A3 | | | | | | | | |
| 4.140%, 09/25/2012 | | $ | 8,676 | | | $ | 8,837 | |
| | | | | | | | | |
| | | | | | | | 14,752 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $211,510) | | | | | | | 193,332 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 4.7% |
| Adjustable Rate Δ – 2.2% |
| Countrywide Home Loans | | | | | | | | |
Series 2006-HYB5, Class 3A1A | | | | | | | | |
| 5.944%, 09/20/2036 | | | 6,056 | | | | 2,749 | |
| CS First Boston Mortgage Securities | | | | | | | | |
Series 2003-AR24, Class 2A4 | | | | | | | | |
| 4.814%, 10/25/2033 | | | 6,039 | | | | 4,947 | |
| Harborview Mortgage Loan Trust | | | | | | | | |
Series 2007-4, Class 2A1 | | | | | | | | |
| 0.801%, 07/19/2047 | | | 5,136 | | | | 2,019 | |
| Structured Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 5.329%, 08/25/2034 | | | 286 | | | | 191 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2003-J, Class 2A5 | | | | | | | | |
| 4.451%, 10/25/2033 | | | 5,852 | | | | 5,676 | |
Series 2004-E, Class A5 | | | | | | | | |
| 3.662%, 05/25/2034 | | | 1,057 | | | | 1,054 | |
| | | | | | | | | |
| | | | | | | | 16,636 | |
| | | | | | | | | |
| Fixed Rate – 2.5% |
| Banc of America Mortgage Securities | | | | | | | | |
Series 2005-5, Class 1A21 | | | | | | | | |
| 5.000%, 06/25/2035 | | | 5,208 | | | | 5,021 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-2CB, Class 1A1 | | | | | | | | |
| 4.250%, 03/25/2034 | | | 1,328 | | | | 1,242 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,615 | | | | 1,204 | |
| Salomon Brothers Mortgage Securities | | | | | | | | |
Series 1986-1, Class A | | | | | | | | |
6.000%, 12/25/2011 ¥ | | | 6 | | | | 6 | |
| Washington Mutual Mortgage Pass-Through Certificates | | | | | | | | |
Series 2007-2, Class 3A1 | | | | | | | | |
| 5.500%, 04/25/2022 | | | 2,925 | | | | 2,622 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2005-3, Class A9 | | | | | | | | |
| 5.500%, 05/25/2035 | | | 3,488 | | | | 1,896 | |
Series 2005-AR13, Class A1 | | | | | | | | |
| 5.310%, 05/25/2035 | | | 2,598 | | | | 1,838 | |
Series 2007-2, Class 1A8 | | | | | | | | |
| 5.750%, 03/25/2037 | | | 5,911 | | | | 4,909 | |
| Westam Mortgage Financial | | | | | | | | |
| Series 11, Class A | | | | | | | | |
6.360%, 08/26/2020 ¥ | | | 26 | | | | 26 | |
| | | | | | | | | |
| | | | | | | | 18,764 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | | | | | | |
(Cost $45,511) | | | | | | | 35,400 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 3.6% |
| U.S. Agency Debentures – 2.9% |
| Federal Agricultural Mortgage Corporation | | | | | | | | |
5.500%, 07/15/2011 6 n | | | 13,900 | | | | 14,828 | |
| Federal National Mortgage Association | | | | | | | | |
4.120%, 05/06/2013 6 | | | 6,550 | | | | 6,618 | |
| | | | | | | | | |
| | | | | | | | 21,446 | |
| | | | | | | | | |
| U.S. Treasuries – 0.7% |
| U.S. Treasury Notes | | | | | | | | |
| 0.875%, 02/28/2011 | | | 5,360 | | | | 5,356 | |
2.750%, 02/15/2019 6 | | | 270 | | | | 253 | |
| | | | | | | | | |
| | | | | | | | 5,609 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $26,137) | | | | | | | 27,055 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 2.6% |
| Fixed Rate – 2.6% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1167, Class E | | | | | | | | |
| 7.500%, 11/15/2021 | | | 19 | | | | 19 | |
| Series 1286, Class A | | | | | | | | |
| 6.000%, 05/15/2022 | | | 53 | | | | 52 | |
| Series 2750, Class HE | | | | | | | | |
| 5.000%, 02/15/2019 | | | 5,930 | | | | 6,273 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 3,353 | | | | 3,408 | |
| Series 2780, Class QC | | | | | | | | |
| 4.500%, 03/15/2017 | | | 9,149 | | | | 9,365 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1990-89, Class K | | | | | | | | |
| 6.500%, 07/25/2020 | | | 14 | | | | 15 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $18,179) | | | | | | | 19,132 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 1.8% |
| Adjustable Rate Δ – 1.3% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 5.150%, 04/01/2029, #847190 | | | 1,059 | | | | 1,068 | |
| 5.307%, 01/01/2028, #786281 | | | 800 | | | | 820 | |
| 5.451%, 10/01/2030, #847209 | | | 2,681 | | | | 2,695 | |
| 5.192%, 05/01/2031, # 847161 | | | 948 | | | | 958 | |
| 5.341%, 09/01/2033, #847210 | | | 2,388 | | | | 2,404 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.303%, 09/01/2033, #725111 | | | 1,526 | | | | 1,540 | |
| | | | | | | | | |
| | | | | | | | 9,485 | |
| | | | | | | | | |
| Fixed Rate – 0.5% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series K001, Class A3 | | | | | | | | |
| 5.469%, 01/25/2012 | | | 3,536 | | | | 3,739 | |
| | | | | | | | | |
Total U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $13,248) | | | | | | | 13,224 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
46 First American Funds 2009 Annual Report
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
Municipal Bond – 0.2% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | | | | | | |
6.950%, 09/01/2016 ¥ | | | | | | | | |
(Cost $1,800) | | $ | 1,800 | | | $ | 1,685 | |
| | | | | | | | | |
Preferred Stocks – 0.1% |
| Banking – 0.1% |
| Bank of America | | | | | | | | |
| Series MER | | | 34,300 | | | | 696 | |
| | | | | | | | | |
| Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
| Series S | | | 104,000 | | | | 139 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $3,330) | | | | | | | 835 | |
| | | | | | | | | |
Short-Term Investments – 3.7% |
| Money Market Fund – 3.6% |
| First American Prime Obligations Fund, | | | | | | | | |
Class Z Å | | | 26,689,253 | | | | 26,689 | |
| | | | | | | | | |
| U.S. Treasury Obligation – 0.1% |
| U.S. Treasury Bill | | | | | | | | |
0.362%, 02/11/2010 o | | $ | 700 | | | | 699 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $27,388) | | | | | | | 27,388 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 6.9% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $51,662) | | | 51,662,177 | | | | 51,662 | |
| | | | | | | | | |
Total Investments 5 – 105.8% | | | | | | | | |
(Cost $823,198) | | | | | | | 791,512 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (5.8)% | | | | | | | (43,076 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 748,436 | |
| | | | | | | | | |
| | |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $50,427 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $81,334 or 10.9% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $7,920 or 1.1% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
Intermediate Term Bond Fund (concluded)
| | |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $826,824. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 18,868 | |
| Gross unrealized depreciation | | | (54,180 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (35,312 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | | | | |
| | | | | | Contracts
| | | Notional
| | | |
| | | Settlement
| | | Purchased
| | | Contract
| | Unrealized
| |
| Description | | Month | | | (Sold) | | | Value | | Depreciation | |
| | |
| U.S. Treasury 2 Year Note Futures | | | September 2009 | | | | 272 | | | $ | 58,812 | | $ | (84 | ) |
| U.S. Treasury 5 Year Note Futures | | | September 2009 | | | | 624 | | | | 71,585 | | | (774 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2009 | | | | (152 | ) | | | (17,672) | | | (204 | ) |
| U.S. Treasury Long Bond Futures | | | September 2009 | | | | (106 | ) | | | (12,546) | | | (94 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (1,156 | ) |
| | | | | | | | | | | | | | | | |
Credit Default Swap Agreements
Credit Default Swaps on Credit Indices
Sell Protection1
| | | | | | | | | | | | | | | | | | | |
| | | | | Receive
| | | | | | | | | Unrealized
| |
| | | Reference
| | Fixed
| | | Expiration
| | | Notional
| | | Appreciation
| |
| Counterparty | | Index | | Rate | | | Date | | | Amount2 | | | (Depreciation) | |
| | |
| Deutsche Bank | | Markit CDX HVOL11 Index | | | 3.850% | | | | 12/20/2013 | | | $ | 5,900 | | | $ | 44 | |
| Deutsche Bank | | Markit CDX HVOL12 Index | | | 5.000% | | | | 06/20/2014 | | | | 10,400 | | | | (117 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | (73 | ) |
| | | | | | | | | | | | | | | | | | | |
| | |
| 1 | | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. |
| |
| 2 | | The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
Interest Rate Swap Agreement
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | | Receive
| | | | | | | | | | | | | |
| | | Rate
| | | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 4.045% | | | | 11/14/2018 | | | $ | 4,000 | | | $ | (108 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
First American Funds 2009 Annual Report 47
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Asset-Backed Securities – 36.2% |
| Automotive – 7.1% |
| Bank of America Auto Trust | | | | | | | | |
Series 2008-1A, Class A3A | | | | | | | | |
4.970%, 09/20/2012 n | | $ | 4,610 | | | $ | 4,729 | |
| BMW Vehicle Owner Trust | | | | | | | | |
Series 2006-A, Class A4 | | | | | | | | |
| 5.070%, 08/25/2011 | | | 1,247 | | | | 1,269 | |
| Capital One Prime Auto Receivables Trust | | | | | | | | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.890%, 01/15/2012 | | | 1,524 | | | | 1,548 | |
| DaimlerChrysler Auto Trust | | | | | | | | |
Series 2006-C, Class A4 | | | | | | | | |
| 4.980%, 11/08/2011 | | | 986 | | | | 1,002 | |
Series 2008-A, Class A3A | | | | | | | | |
| 3.700%, 06/08/2012 | | | 1,600 | | | | 1,619 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 1,750 | | | | 1,790 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2006-1, Class A2 | | | | | | | | |
5.040%, 10/15/2012 n | | | 1,578 | | | | 1,618 | |
| Huntington Auto Trust | | | | | | | | |
Series 2009-1A, Class A2 | | | | | | | | |
3.480%, 07/15/2011 n | | | 1,625 | | | | 1,637 | |
| JPMorgan Auto Receivables Trust | | | | | | | | |
Series 2007-A, Class A3 | | | | | | | | |
5.190%, 02/15/2011 n | | | 1,459 | | | | 1,472 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
Series 2008-B, Class A3 | | | | | | | | |
| 4.460%, 04/16/2012 | | | 1,600 | | | | 1,645 | |
Series 2009-A, Class A2 | | | | | | | | |
| 2.940%, 07/15/2011 | | | 3,000 | | | | 3,040 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2006-2, Class A4 | | | | | | | | |
| 5.370%, 02/15/2012 | | | 1,444 | | | | 1,482 | |
| Wachovia Auto Loan Owner Trust | | | | | | | | |
Series 2006-2A, Class A4 | | | | | | | | |
5.230%, 03/20/2012 n | | | 1,000 | | | | 1,018 | |
Series 2006-2A, Class A3 | | | | | | | | |
5.230%, 08/20/2011 n | | | 51 | | | | 52 | |
| Wachovia Auto Owner Trust | | | | | | | | |
Series 2007-A, Class A3 | | | | | | | | |
| 5.390%, 09/20/2011 | | | 1,598 | | | | 1,627 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2006-A, Class A4 | | | | | | | | |
| 5.030%, 10/17/2011 | | | 315 | | | | 320 | |
Series 2007-B, Class A3A | | | | | | | | |
| 5.280%, 01/17/2012 | | | 1,348 | | | | 1,375 | |
| | | | | | | | | |
| | | | | | | | 27,243 | |
| | | | | | | | | |
| Credit Cards – 11.0% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.674%, 08/15/2011 Δ | | | 905 | | | | 863 | |
Series 2008-2, Class A | | | | | | | | |
| 4.020%, 01/18/2011 | | | 800 | | | | 812 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.900%, 04/15/2013 Δ | | | 1,270 | | | | 1,260 | |
| Bank One Issuance Trust | | | | | | | | |
Series 2004-B2, Class B2 | | | | | | | | |
| 4.370%, 04/15/2012 | | | 1,200 | | | | 1,207 | |
| Cabela’s Master Credit Card Trust | | | | | | | | |
Series 2008-1A, Class A2 | | | | | | | | |
1.301%, 12/16/2013 n Δ | | | 1,415 | | | | 1,388 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2005-A3, Class A3 | | | | | | | | |
| 4.050%, 03/15/2013 | | | 5,716 | | | | 5,826 | |
Series 2007-A9, Class A9 | | | | | | | | |
| 4.950%, 08/15/2012 | | | 1,000 | | | | 1,011 | |
Series 2008-3A, Class A3 | | | | | | | | |
| 5.050%, 02/15/2016 | | | 2,000 | | | | 2,072 | |
Series 2008-A1, Class A | | | | | | | | |
| 1.094%, 11/15/2012 Δ | | | 1,265 | | | | 1,265 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A7, Class A7 | | | | | | | | |
| 0.994%, 11/15/2011 Δ | | | 220 | | | | 220 | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 2,000 | | | | 2,058 | |
Series 2009-A5, Class A5 | | | | | | | | |
| 1.115%, 06/15/2012 Δ | | | 2,000 | | | | 2,000 | |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2006-A4, Class A4 | | | | | | | | |
| 5.450%, 05/10/2013 | | | 5,245 | | | | 5,528 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.749%, 05/15/2013 Δ | | | 185 | | | | 172 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.569%, 06/18/2013 Δ | | | 380 | | | | 351 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.639%, 01/15/2013 Δ | | | 885 | | | | 808 | |
Series 2008-A3, Class A3 | | | | | | | | |
| 5.100%, 10/15/2013 | | | 1,455 | | | | 1,510 | |
| Household Credit Card Master Note Trust I | | | | | | | | |
Series 2006-1, Class A | | | | | | | | |
| 5.100%, 06/15/2012 | | | 5,450 | | | | 5,462 | |
| MBNA Credit Card Master Note Trust | | | | | | | | |
Series 2005-A3, Class A3 | | | | | | | | |
| 4.100%, 10/15/2012 | | | 1,825 | | | | 1,862 | |
Series 2005-A6, Class A6 | | | | | | | | |
| 4.500%, 01/15/2013 | | | 1,165 | | | | 1,198 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-A4A, Class A4 | | | | | | | | |
5.200%, 10/15/2014 n | | | 3,000 | | | | 3,118 | |
Series 2007-C1, Class C1 | | | | | | | | |
0.744%, 05/15/2014 n Δ ¥ | | | 1,855 | | | | 1,744 | |
| | | | | | | | | |
| | | | | | | | 41,735 | |
| | | | | | | | | |
| Equipment Leases – 0.6% |
| Caterpillar Financial Asset Trust | | | | | | | | |
Series 2007-A, Class A3A | | | | | | | | |
| 5.340%, 06/25/2012 | | | 1,764 | | | | 1,801 | |
| MBNA Practice Solutions Owner Trust | | | | | | | | |
Series 2005-2, Class A4 | | | | | | | | |
4.470%, 06/15/2013 n | | | 403 | | | | 409 | |
| | | | | | | | | |
| | | | | | | | 2,210 | |
| | | | | | | | | |
| Home Equity – 0.6% |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-5, Class AF5 | | | | | | | | |
| 5.739%, 02/25/2034 | | | 2,061 | | | | 1,114 | |
| Equivantage Home Equity Loan Trust | | | | | | | | |
Series 1996-1, Class A | | | | | | | | |
6.550%, 10/25/2025 ¥ | | | 30 | | | | 28 | |
The accompanying notes are an integral part of the financial statements.
48 First American Funds 2009 Annual Report
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Series 1996-4, Class A | | | | | | | | |
7.250%, 01/25/2028 ¥ | | $ | 198 | | | $ | 170 | |
| IMC Home Equity Loan Trust | | | | | | | | |
Series 1998-3, Class A7 | | | | | | | | |
6.720%, 08/20/2029 ¥ | | | 1,386 | | | | 1,066 | |
| | | | | | | | | |
| | | | | | | | 2,378 | |
| | | | | | | | | |
| Manufactured Housing – 1.0% |
| Green Tree Financial | | | | | | | | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 752 | | | | 734 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 685 | | | | 675 | |
Series 2005-B, Class A2 | | | | | | | | |
| 5.247%, 12/15/2018 | | | 2,525 | | | | 2,460 | |
| | | | | | | | | |
| | | | | | | | 3,869 | |
| | | | | | | | | |
| Other – 13.0% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2002-TOP6, Class A1 | | | | | | | | |
| 5.920%, 10/15/2036 | | | 867 | | | | 882 | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.413%, 06/11/2050 | | | 730 | | | | 239 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-CD4, Class A2B | | | | | | | | |
| 5.205%, 12/11/2049 | | | 1,385 | | | | 1,267 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2004-RS1, Class A | | | | | | | | |
4.018%, 03/03/2041 n ¥ | | | 1,242 | | | | 862 | |
| Crown Castle Towers | | | | | | | | |
Series 2005-1A, Class B | | | | | | | | |
4.878%, 06/15/2035 n | | | 2,438 | | | | 2,365 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2001-2, Class A2 | | | | | | | | |
| 5.850%, 08/11/2033 | | | 2,362 | | | | 2,368 | |
Series 2001-3, Class A2 | | | | | | | | |
| 6.070%, 06/10/2038 | | | 3,250 | | | | 3,268 | |
| Global Signal Trust | | | | | | | | |
Series 2004-2A, Class A | | | | | | | | |
4.232%, 12/15/2014 n | | | 4,380 | | | | 4,337 | |
| GMAC Commercial Mortgage Securities | | | | | | | | |
Series 2003-C2, Class A2 | | | | | | | | |
| 5.668%, 05/10/2040 | | | 3,500 | | | | 3,452 | |
Series 2004-C1, Class A2 | | | | | | | | |
| 4.100%, 03/10/2038 | | | 1,845 | | | | 1,819 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2005-GG5, Class A2 | | | | | | | | |
| 5.117%, 04/10/2037 | | | 8,840 | | | | 8,518 | |
| GS Commercial Mortgage | | | | | | | | |
Series 2007-GG10, Class A1 | | | | | | | | |
| 5.690%, 08/10/2045 | | | 1,224 | | | | 1,235 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 Δ | | | 3,000 | | | | 2,267 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2001-CIB2, Class A3 | | | | | | | | |
| 6.429%, 04/15/2035 | | | 7,905 | | | | 8,048 | |
| Morgan Stanley Dean Witter Capital I | | | | | | | | |
Series 2002-TOP7, Class A2 | | | | | | | | |
| 5.980%, 01/15/2039 | | | 4,555 | | | | 4,642 | |
| Small Business Administration | | | | | | | | |
Series 2006-P10A, Class 1 | | | | | | | | |
| 5.408%, 02/10/2016 | | | 2,209 | | | | 2,321 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C30, Class A3 | | | | | | | | |
| 5.246%, 12/15/2043 | | | 1,739 | | | | 1,515 | |
| | | | | | | | | |
| | | | | | | | 49,405 | |
| | | | | | | | | |
| Utilities – 2.9% |
| Centerpoint Energy | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.970%, 08/01/2014 | | | 4,144 | | | | 4,328 | |
| Oncor Electric Delivery Transition Bond Company | | | | | | | | |
Series 2003-1, Class A2 | | | | | | | | |
| 4.030%, 02/15/2012 | | | 956 | | | | 966 | |
| Peco Energy Transition Trust | | | | | | | | |
Series 2001-A, Class A1 | | | | | | | | |
| 6.520%, 12/31/2010 | | | 2,240 | | | | 2,335 | |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-2, Class A2 | | | | | | | | |
| 5.030%, 03/25/2014 | | | 1,859 | | | | 1,933 | |
| PSE&G Transition Funding | | | | | | | | |
Series 2001-1, Class A6 | | | | | | | | |
| 6.610%, 06/15/2015 | | | 1,190 | | | | 1,300 | |
| | | | | | | | | |
| | | | | | | | 10,862 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $136,389) | | | | | | | 137,702 | |
| | | | | | | | | |
Corporate Bonds – 28.1% |
| Banking – 7.8% |
| Bank of America | | | | | | | | |
| 7.800%, 02/15/2010 | | | 2,500 | | | | 2,570 | |
| 2.100%, 04/30/2012 | | | 1,500 | | | | 1,502 | |
| Bank One | | | | | | | | |
| 7.875%, 08/01/2010 | | | 2,700 | | | | 2,830 | |
| BB&T | | | | | | | | |
5.700%, 04/30/2014 6 | | | 1,000 | | | | 1,021 | |
| Citigroup | | | | | | | | |
| 4.125%, 02/22/2010 | | | 2,000 | | | | 2,000 | |
| 2.125%, 04/30/2012 | | | 1,500 | | | | 1,507 | |
| 5.300%, 10/17/2012 | | | 2,500 | | | | 2,412 | |
| Credit Suisse | | | | | | | | |
4.875%, 08/15/2010 6 | | | 1,500 | | | | 1,547 | |
| Credit Suisse New York | | | | | | | | |
| 5.500%, 05/01/2014 | | | 1,000 | | | | 1,039 | |
| Fifth Third Bank | | | | | | | | |
| Series BKNT | | | | | | | | |
| 4.200%, 02/23/2010 | | | 1,000 | | | | 999 | |
| First Union National Bank | | | | | | | | |
| 7.800%, 08/18/2010 | | | 1,000 | | | | 1,041 | |
| HSBC Finance | | | | | | | | |
| 6.750%, 05/15/2011 | | | 2,345 | | | | 2,411 | |
| JPMorgan Chase | | | | | | | | |
2.200%, 06/15/2012 6 | | | 1,500 | | | | 1,508 | |
| Key Bank | | | | | | | | |
| 3.200%, 06/15/2012 | | | 1,500 | | | | 1,551 | |
| M&I Bank | | | | | | | | |
| Series BKNT | | | | | | | | |
| 4.400%, 03/15/2010 | | | 1,000 | | | | 980 | |
| National City | | | | | | | | |
4.000%, 02/01/2011 6 | | | 1,000 | | | | 983 | |
| Union Planters | | | | | | | | |
| 4.375%, 12/01/2010 | | | 1,000 | | | | 969 | |
First American Funds 2009 Annual Report 49
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Wells Fargo | | | | | | | | |
| 4.625%, 08/09/2010 | | $ | 2,750 | | | $ | 2,820 | |
| | | | | | | | | |
| | | | | | | | 29,690 | |
| | | | | | | | | |
| Basic Industry – 1.0% |
| Arcelormittal | | | | | | | | |
| 5.375%, 06/01/2013 | | | 900 | | | | 862 | |
| BHP Billiton Finance | | | | | | | | |
| 5.500%, 04/01/2014 | | | 1,000 | | | | 1,073 | |
| Georgia-Pacific | | | | | | | | |
8.125%, 05/15/2011 6 | | | 500 | | | | 500 | |
| Rio Tinto Financial | | | | | | | | |
| 8.950%, 05/01/2014 | | | 1,000 | | | | 1,111 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n | | | 420 | | | | 349 | |
| | | | | | | | | |
| | | | | | | | 3,895 | |
| | | | | | | | | |
| Brokerage – 2.5% |
| Goldman Sachs Group | | | | | | | | |
6.875%, 01/15/2011 6 | | | 3,000 | | | | 3,171 | |
| 1.625%, 07/15/2011 | | | 1,580 | | | | 1,589 | |
| Merrill Lynch | | | | | | | | |
| 5.450%, 02/05/2013 | | | 1,250 | | | | 1,217 | |
| Morgan Stanley | | | | | | | | |
| 4.000%, 01/15/2010 | | | 2,000 | | | | 2,020 | |
2.250%, 03/13/2012 6 | | | 1,525 | | | | 1,538 | |
| | | | | | | | | |
| | | | | | | | 9,535 | |
| | | | | | | | | |
| Communications – 1.9% |
| AT&T | | | | | | | | |
| 7.300%, 11/15/2011 | | | 1,500 | | | | 1,645 | |
| DirecTV Holdings | | | | | | | | |
| 7.625%, 05/15/2016 | | | 360 | | | | 350 | |
| Time Warner Cable | | | | | | | | |
| 5.400%, 07/02/2012 | | | 1,250 | | | | 1,292 | |
| Verizon New England | | | | | | | | |
| 6.500%, 09/15/2011 | | | 1,500 | | | | 1,597 | |
| Verizon Wireless | | | | | | | | |
3.750%, 05/20/2011 n | | | 1,000 | | | | 1,020 | |
| Vodafone Airtouch | | | | | | | | |
| 7.750%, 02/15/2010 | | | 1,500 | | | | 1,551 | |
| | | | | | | | | |
| | | | | | | | 7,455 | |
| | | | | | | | | |
| Consumer Cyclical – 1.2% |
| Harrahs Operating | | | | | | | | |
10.000%, 12/15/2015 n | | | 2,000 | | | | 1,220 | |
| Staples | | | | | | | | |
9.750%, 01/15/2014 6 | | | 1,000 | | | | 1,117 | |
| Whirlpool | | | | | | | | |
| 8.000%, 05/01/2012 | | | 1,000 | | | | 1,035 | |
| Yum! Brands | | | | | | | | |
| 8.875%, 04/15/2011 | | | 1,260 | | | | 1,375 | |
| | | | | | | | | |
| | | | | | | | 4,747 | |
| | | | | | | | | |
| Consumer Non Cyclical – 3.7% |
| Anheuser-Busch InBev | | | | | | | | |
7.200%, 01/15/2014 n | | | 1,000 | | | | 1,075 | |
| Cardinal Health | | | | | | | | |
| 6.750%, 02/15/2011 | | | 1,250 | | | | 1,316 | |
| ConAgra Foods | | | | | | | | |
| 5.875%, 04/15/2014 | | | 1,000 | | | | 1,060 | |
| Covidien International | | | | | | | | |
| 5.150%, 10/15/2010 | | | 3,000 | | | | 3,087 | |
| Eli Lilly & Co. | | | | | | | | |
| 3.550%, 03/06/2012 | | | 1,000 | | | | 1,036 | |
| Express Scripts | | | | | | | | |
| 5.250%, 06/15/2012 | | | 1,000 | | | | 1,033 | |
| Kraft Foods | | | | | | | | |
| 5.625%, 11/01/2011 | | | 1,500 | | | | 1,594 | |
| McKesson | | | | | | | | |
| 6.500%, 02/15/2014 | | | 1,105 | | | | 1,177 | |
| Pfizer | | | | | | | | |
| 4.450%, 03/15/2012 | | | 1,000 | | | | 1,049 | |
| Smithfield Foods | | | | | | | | |
| 7.000%, 08/01/2011 | | | 320 | | | | 304 | |
| UnitedHealth Group | | | | | | | | |
| 4.875%, 02/15/2013 | | | 1,500 | | | | 1,516 | |
| | | | | | | | | |
| | | | | | | | 14,247 | |
| | | | | | | | | |
| Electric – 1.0% |
| Arizona Public Service | | | | | | | | |
| 6.375%, 10/15/2011 | | | 2,000 | | | | 2,075 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 5.875%, 10/01/2012 | | | 1,555 | | | | 1,656 | |
| | | | | | | | | |
| | | | | | | | 3,731 | |
| | | | | | | | | |
| Energy – 1.2% |
| Anadarko Petroleum | | | | | | | | |
| 5.950%, 09/15/2016 | | | 1,000 | | | | 987 | |
| ConocoPhillips | | | | | | | | |
| 4.750%, 02/01/2014 | | | 900 | | | | 937 | |
| Husky Energy | | | | | | | | |
| 5.900%, 06/15/2014 | | | 1,000 | | | | 1,046 | |
| Weatherford International | | | | | | | | |
| 5.150%, 03/15/2013 | | | 1,500 | | | | 1,496 | |
| | | | | | | | | |
| | | | | | | | 4,466 | |
| | | | | | | | | |
| Finance – 4.2% |
| American Express Travel | | | | | | | | |
5.250%, 11/21/2011 n | | | 2,450 | | | | 2,435 | |
| Ameriprise Financial | | | | | | | | |
| 5.350%, 11/15/2010 | | | 1,000 | | | | 998 | |
| Capital One Bank | | | | | | | | |
| 6.500%, 06/13/2013 | | | 1,500 | | | | 1,483 | |
| Countrywide Financial | | | | | | | | |
| Series MTNA | | | | | | | | |
| 4.500%, 06/15/2010 | | | 2,000 | | | | 1,980 | |
| General Electric Capital | | | | | | | | |
| 2.200%, 06/08/2012 | | | 1,510 | | | | 1,517 | |
| Series MTN | | | | | | | | |
| 5.250%, 10/19/2012 | | | 3,000 | | | | 3,084 | |
| GMAC | | | | | | | | |
| 2.200%, 12/19/2012 | | | 1,750 | | | | 1,743 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 n Δ | | | 1,000 | | | | 370 | |
| International Lease Finance | | | | | | | | |
5.000%, 04/15/2010 6 | | | 2,525 | | | | 2,313 | |
| | | | | | | | | |
| | | | | | | | 15,923 | |
| | | | | | | | | |
| Insurance – 0.7% |
| Allstate Life Global Funding Trust | | | | | | | | |
| 5.375%, 04/30/2013 | | | 1,500 | | | | 1,551 | |
| Prudential Financial | | | | | | | | |
| Series MTNB | | | | | | | | |
| 4.500%, 07/15/2013 | | | 1,000 | | | | 940 | |
| | | | | | | | | |
| | | | | | | | 2,491 | |
| | | | | | | | | |
| Natural Gas – 0.4% |
| Consolidated Natural Gas | | | | | | | | |
| Series C | | | | | | | | |
| 6.250%, 11/01/2011 | | | 1,575 | | | | 1,681 | |
| | | | | | | | | |
| Real Estate – 0.3% |
| iStar Financial – REIT | | | | | | | | |
| 6.000%, 12/15/2010 | | | 1,500 | | | | 1,035 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
50 First American Funds 2009 Annual Report
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Technology – 1.2% |
| Analog Devices | | | | | | | | |
| 5.000%, 07/01/2014 | | $ | 1,000 | | | $ | 1,002 | |
| Chartered Semiconductor | | | | | | | | |
| 5.750%, 08/03/2010 | | | 1,500 | | | | 1,468 | |
| Jabil Circuit | | | | | | | | |
| 5.875%, 07/15/2010 | | | 825 | | | | 809 | |
| Motorola | | | | | | | | |
| 8.000%, 11/01/2011 | | | 1,200 | | | | 1,208 | |
| | | | | | | | | |
| | | | | | | | 4,487 | |
| | | | | | | | | |
| Transportation – 1.0% |
| CSX | | | | | | | | |
| 5.750%, 03/15/2013 | | | 1,500 | | | | 1,538 | |
| FedEx | | | | | | | | |
| 7.375%, 01/15/2014 | | | 1,000 | | | | 1,080 | |
| United Parcel Service | | | | | | | | |
| 3.875%, 04/01/2014 | | | 1,000 | | | | 1,031 | |
| | | | | | | | | |
| | | | | | | | 3,649 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $106,757) | | | | | | | 107,032 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 13.5% |
| U.S. Agency Debentures – 5.2% |
| Federal Home Loan Bank | | | | | | | | |
| 2.750%, 06/18/2010 | | | 755 | | | | 771 | |
1.625%, 07/27/2011 6 | | | 5,550 | | | | 5,581 | |
2.250%, 04/13/2012 6 | | | 6,000 | | | | 6,072 | |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| 5.125%, 10/23/2012 | | | 1,000 | | | | 1,014 | |
| Federal National Mortgage Association | | | | | | | | |
4.120%, 05/06/2013 6 | | | 6,300 | | | | 6,366 | |
| | | | | | | | | |
| | | | | | | | 19,804 | |
| | | | | | | | | |
| U.S. Treasuries – 8.3% |
| U.S. Treasury Notes | | | | | | | | |
| 0.875%, 04/15/2010 ◄ | | | 3,377 | | | | 3,377 | |
4.875%, 04/30/2011 6 | | | 3,075 | | | | 3,287 | |
4.625%, 10/31/2011 6 | | | 6,235 | | | | 6,713 | |
1.125%, 12/15/2011 6 | | | 3,345 | | | | 3,328 | |
4.125%, 08/31/2012 6 | | | 13,765 | | | | 14,785 | |
| | | | | | | | | |
| | | | | | | | 31,490 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $51,183) | | | | | | | 51,294 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 8.9% |
| Adjustable RateΔ – 4.4% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 5.177%, 12/01/2026, #786591 | | | 529 | | | | 543 | |
| 4.188%, 01/01/2029, #846946 | | | 430 | | | | 433 | |
| 5.098%, 10/01/2029, #786853 | | | 270 | | | | 275 | |
| 5.379%, 04/01/2030, #972055 | | | 314 | | | | 323 | |
| 3.992%, 05/01/2030, #847014 | | | 253 | | | | 253 | |
| 4.309%, 06/01/2031, #847367 | | | 185 | | | | 187 | |
| 4.282%, 08/01/2032, #847331 | | | 2,358 | | | | 2,399 | |
| 5.175%, 09/01/2032, #847652 | | | 1,390 | | | | 1,413 | |
| 4.504%, 10/01/2032, #847063 | | | 227 | | | | 232 | |
| 2.799%, 05/01/2033, #780456 | | | 913 | | | | 913 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 4.227%, 11/01/2025, #433988 | | | 578 | | | | 580 | |
| 4.133%, 10/01/2030, #847241 | | | 1,675 | | | | 1,698 | |
| 5.373%, 06/01/2031, #625338 | | | 304 | | | | 308 | |
| 5.124%, 12/01/2031, #535363 | | | 1,498 | | | | 1,544 | |
| 5.096%, 03/01/2032, #545791 | | | 52 | | | | 53 | |
| 3.165%, 05/01/2032, #634948 | | | 143 | | | | 144 | |
| 3.355%, 05/01/2032, #545717 | | | 371 | | | | 373 | |
| 4.833%, 10/01/2032, #661645 | | | 97 | | | | 100 | |
| 4.686%, 12/01/2032, #671884 | | | 280 | | | | 289 | |
| 4.377%, 04/01/2034, #775389 | | | 218 | | | | 224 | |
| 4.256%, 07/01/2034, #795242 | | | 2,483 | | | | 2,531 | |
| 3.938%, 08/01/2036, #555369 | | | 274 | | | | 276 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 4.625%, 08/20/2021, #008824 | | | 147 | | | | 150 | |
| 4.625%, 07/20/2022, #008006 | | | 207 | | | | 212 | |
| 4.625%, 09/20/2025, #008699 | | | 110 | | | | 112 | |
| 5.375%, 04/20/2026, #008847 | | | 89 | | | | 92 | |
| 4.625%, 08/20/2027, #080106 | | | 31 | | | | 32 | |
| 4.375%, 01/20/2028, #080154 | | | 49 | | | | 50 | |
| 5.375%, 05/20/2029, #080283 | | | 144 | | | | 148 | |
| 3.875%, 11/20/2030, #80469 | | | 227 | | | | 230 | |
| 5.375%, 04/20/2031, #080507 | | | 98 | | | | 101 | |
| 4.625%, 08/20/2031, #80535 | | | 313 | | | | 320 | |
| 4.500%, 02/20/2032, #080580 | | | 82 | | | | 84 | |
| | | | | | | | | |
| | | | | | | | 16,622 | |
| | | | | | | | | |
| Fixed Rate – 4.5% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series K001, Class A3 | | | | | | | | |
| 5.469%, 01/25/2012 | | | 1,964 | | | | 2,078 | |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 4.500%, 05/01/2018, #G11618 | | | 4,429 | | | | 4,595 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.500%, 05/01/2012, #254340 | | | 413 | | | | 426 | |
| 5.000%, 03/01/2013, #254682 | | | 300 | | | | 309 | |
| 4.000%, 12/01/2013, #255039 | | | 2,292 | | | | 2,330 | |
| 4.000%, 12/01/2019, #AA5298 | | | 2,279 | | | | 2,331 | |
| 4.500%, 04/01/2024, #AA4312 | | | 4,916 | | | | 5,023 | |
| | | | | | | | | |
| | | | | | | | 17,092 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $33,596) | | | | | | | 33,714 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities – 6.9% |
| Adjustable Rate Δ – 4.3% |
| Citigroup Mortgage Loan Trust | | | | | | | | |
Series 2005-7, Class 2A1A | | | | | | | | |
| 4.862%, 09/25/2035 | | | 2,267 | | | | 1,678 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-OA17, Class 1A1A | | | | | | | | |
| 0.511%, 12/20/2046 | | | 4,481 | | | | 1,793 | |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.296%, 02/25/2034 | | | 497 | | | | 454 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class B1 | | | | | | | | |
5.086%, 01/25/2035 ¥ | | | 1,991 | | | | 301 | |
| Harborview Mortgage Loan Trust | | | | | | | | |
Series 2006-1, Class 2A1A | | | | | | | | |
| 0.568%, 03/19/2036 | | | 4,488 | | | | 1,891 | |
First American Funds 2009 Annual Report 51
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Series 2007-4, Class 2A1 | | | | | | | | |
| 0.548%, 07/19/2047 | | $ | 2,443 | | | $ | 960 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 5.444%, 03/25/2035 | | | 612 | | | | 289 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2004-A1, Class 3A1 | | | | | | | | |
| 4.956%, 02/25/2034 | | | 1,306 | | | | 1,168 | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.941%, 01/25/2037 | | | 666 | | | | 145 | |
| Sequoia Mortgage Trust | | | | | | | | |
Series 2007-1, Class 2A1 | | | | | | | | |
| 5.824%, 02/20/2047 | | | 893 | | | | 615 | |
| Structured Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 4.565%, 08/25/2034 | | | 225 | | | | 151 | |
| Washington Mutual | | | | | | | | |
Series 2007-HY2, Class 3A2 | | | | | | | | |
| 5.857%, 09/25/2036 | | | 773 | | | | 141 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2004-E, Class A5 | | | | | | | | |
| 3.662%, 05/25/2034 | | | 688 | | | | 687 | |
Series 2005-AR10, Class 2A5 | | | | | | | | |
| 3.902%, 06/25/2035 | | | 432 | | | | 418 | |
Series 2006-AR10, Class 5A2 | | | | | | | | |
| 5.595%, 07/25/2036 | | | 2,543 | | | | 2,323 | |
Series 2006-AR14, Class 2A3 | | | | | | | | |
| 6.077%, 10/25/2036 | | | 4,958 | | | | 3,402 | |
| | | | | | | | | |
| | | | | | | | 16,416 | |
| | | | | | | | | |
| Fixed Rate – 2.6% |
| Citigroup Mortgage Loan Trust | | | | | | | | |
Series 2005-WF1, Class A2 | | | | | | | | |
| 4.490%, 02/25/2035 | | | 1,295 | | | | 1,211 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,934 | | | | 1,442 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2006-J1, Class A1 | | | | | | | | |
| 5.750%, 04/25/2036 | | | 1,701 | | | | 1,293 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2004-13, Class 10A1 | | | | | | | | |
| 8.000%, 01/25/2035 | | | 610 | | | | 507 | |
| Thornburg Mortgage Securities Trust | | | | | | | | |
Series 2007-4, Class 3A1 | | | | | | | | |
| 6.201%, 09/25/2037 | | | 2,076 | | | | 1,334 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2005-AR13, Class A1 | | | | | | | | |
| 5.310%, 05/25/2035 | | | 2,458 | | | | 1,739 | |
Series 2006-3, Class A1 | | | | | | | | |
| 5.500%, 03/25/2036 | | | 896 | | | | 740 | |
Series 2007-2, Class 1A8 | | | | | | | | |
| 5.750%, 03/25/2037 | | | 2,232 | | | | 1,854 | |
| | | | | | | | | |
| | | | | | | | 10,120 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities
(Cost $38,417) | | | | | | | 26,536 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
U.S. Government Agency Mortgage-Backed Securities – 3.5% |
| Fixed Rate – 3.5% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1022, Class J | | | | | | | | |
| 6.000%, 12/15/2020 | | | 29 | | | | 29 | |
| Series 2738, Class UA | | | | | | | | |
| 3.570%, 12/15/2023 | | | 232 | | | | 233 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 2,450 | | | | 2,490 | |
| Series 2780, Class QC | | | | | | | | |
| 4.500%, 03/15/2017 | | | 4,484 | | | | 4,589 | |
| Federal National Mortgage Association | | | | | | | | |
3.834%, 07/05/2014 ¤ | | | 4,000 | | | | 3,317 | |
Series 1992-150, Class MA | | | | | | | | |
| 5.500%, 09/25/2022 | | | 77 | | | | 83 | |
Series 2004-90, Class GA | | | | | | | | |
| 4.350%, 03/25/2034 | | | 2,557 | | | | 2,608 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation –
U.S. Government Agency
Mortgage-Backed Securities
(Cost $13,005) | | | | | | | 13,349 | |
| | | | | | | | | |
Short-Term Investments – 2.8% |
| Money Market Fund – 2.5% |
First American Prime Obligations Fund, Class Z Å | | | 9,469,901 | | | | 9,470 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.3% |
U.S. Treasury Bills o | | | | | | | | |
| 0.175%, 09/24/2009 | | $ | 205 | | | | 205 | |
| 0.200%, 10/22/2009 | | | 335 | | | | 335 | |
| 0.362%, 02/11/2010 | | | 600 | | | | 598 | |
| | | | | | | | | |
| | | | | | | | 1,138 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $10,608) | | | | | | | 10,608 | |
| | | | | | | | | |
Investment Purchased with Proceeds
from Securities Lending – 14.5% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $55,264) | | | 55,263,948 | | | | 55,264 | |
| | | | | | | | | |
Total Investments 5 – 114.4% | | | | | | | | |
(Cost $445,219) | | | | | | | 435,499 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (14.4)% | | | | | | | (54,771 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 380,728 | |
| | | | | | | | | |
| | |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $31,952 or 8.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $4,171 or 1.1% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $54,072 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| ◄ | | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
| |
| ¤ | | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield as of June 30, 2009. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
52 First American Funds 2009 Annual Report
Short Term Bond Fund (continued)
| | |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $446,383. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 7,828 | |
| Gross unrealized depreciation | | | (18,712 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (10,884 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | | | | | |
| | | | | | Contracts
| | | Notional
| | | Unrealized
| |
| | | Settlement
| | | Purchased
| | | Contract
| | | Appreciation
| |
| Description | | Month | | | (Sold) | | | Value | | | (Depreciation) | |
| | |
| Canadian Dollar Currency Futures | | | September 2009 | | | | 6 | | | $ | 517 | | | $ | (29 | ) |
| U.S. Treasury 2 Year Note Futures | | | September 2009 | | | | 328 | | | | 70,920 | | | | (118 | ) |
| U.S. Treasury 5 Year Note Futures | | | September 2009 | | | | (33 | ) | | | (3,786 | ) | | | 38 | |
| U.S. Treasury 10 Year Note Futures | | | September 2009 | | | | (37 | ) | | | (4,302 | ) | | | (50 | ) |
| U.S. Treasury Long Bond Futures | | | September 2009 | | | | (28 | ) | | | (3,314 | ) | | | (22 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (181 | ) |
| | | | | | | | | | | | | | | | | |
Credit Default Swap Agreements
Credit Default Swaps on Credit Indices
Sell Protection1
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Unrealized
| |
| | | Reference
| | Receive
| | | Expiration
| | | Notional
| | | Appreciation
| |
| Counterparty | | Index | | Fixed Rate | | | Date | | | Amount2 | | | (Depreciation) | |
| | |
| Deutsche Bank | | Markit CDX HVOL11 Index | | | 3.850% | | | | 12/20/2013 | | | $ | 1,700 | | | $ | 21 | |
| Deutsche Bank | | Markit CDX HVOL12 Index | | | 5.000% | | | | 06/20/2014 | | | | 6,800 | | | | 201 | |
| JPMorgan | | Markit CDX IG7 Index | | | 0.250% | | | | 12/20/2009 | | | | 24,300 | | | | (186 | ) |
| JPMorgan | | Markit iTraxx Asia ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 600 | | | | (38 | ) |
| UBS | | Markit iTraxx Asia ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 1,700 | | | | (150 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | (152 | ) |
| | | | | | | | | | | | | | | | | | | |
| | |
| 1 | | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. |
| |
| 2 | | The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
Short Term Bond Fund (concluded)
Interest Rate Swap Agreement
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 4.045% | | | | 11/14/2018 | | | $ | 2,000 | | | $ | (54 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
First American Funds 2009 Annual Report 53
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
Corporate Bonds – 58.8% |
| Banking – 11.1% |
| Bank of America | | | | | | | | |
| 5.750%, 12/01/2017 | | $ | 1,460 | | | $ | 1,300 | |
| 5.650%, 05/01/2018 | | | 1,110 | | | | 981 | |
| 7.625%, 06/01/2019 | | | 1,385 | | | | 1,391 | |
8.000%, 12/29/2049 Δ 6 | | | 7,440 | | | | 6,214 | |
| BB&T | | | | | | | | |
| 6.850%, 04/30/2019 | | | 2,125 | | | | 2,210 | |
| Citigroup | | | | | | | | |
| 6.125%, 11/21/2017 | | | 2,360 | | | | 2,069 | |
| 8.500%, 05/22/2019 | | | 2,130 | | | | 2,167 | |
| 6.125%, 08/25/2036 | | | 6,245 | | | | 4,650 | |
| 6.875%, 03/05/2038 | | | 2,550 | | | | 2,252 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2057 Δ | | | 5,835 | | | | 4,550 | |
| Fifth Third Bancorp | | | | | | | | |
6.250%, 05/01/2013 6 | | | 4,105 | | | | 4,034 | |
| HSBC Holdings | | | | | | | | |
| 6.800%, 06/01/2038 | | | 3,020 | | | | 3,035 | |
| JPMorgan Chase | | | | | | | | |
| Series 1 | | | | | | | | |
| 7.900%, 04/29/2049 Δ | | | 7,800 | | | | 6,826 | |
| JPMorgan Chase Capital XX | | | | | | | | |
| Series T | | | | | | | | |
| 6.550%, 09/29/2036 | | | 8,390 | | | | 6,669 | |
| Key Bank | | | | | | | | |
| 7.413%, 05/06/2015 | | | 1,485 | | | | 1,331 | |
| Keycorp | | | | | | | | |
| 6.500%, 05/14/2013 | | | 450 | | | | 448 | |
| Lloyds TSB Group | | | | | | | | |
6.267%, 12/31/2049 Δ n Æ | | | 3,260 | | | | 1,108 | |
| National City Preferred Capital Trust I | | | | | | | | |
| 12.000%, 12/29/2049 Δ | | | 2,060 | | | | 2,155 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 2,350 | | | | 2,311 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 4,265 | | | | 2,516 | |
| Wells Fargo | | | | | | | | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 6,585 | | | | 5,466 | |
| Wells Fargo Bank | | | | | | | | |
| 5.950%, 08/26/2036 | | | 710 | | | | 636 | |
| Wells Fargo Capital X | | | | | | | | |
| 5.950%, 12/15/2036 | | | 945 | | | | 699 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 8,650 | | | | 7,180 | |
| | | | | | | | | |
| | | | | | | | 72,198 | |
| | | | | | | | | |
| Basic Industry – 4.3% |
| Arcelormittal | | | | | | | | |
| 5.375%, 06/01/2013 | | | 3,145 | | | | 3,012 | |
| 6.125%, 06/01/2018 | | | 3,155 | | | | 2,761 | |
| BHP Billiton Finance | | | | | | | | |
| 6.500%, 04/01/2019 | | | 1,425 | | | | 1,582 | |
| Braskem Finance | | | | | | | | |
7.250%, 06/05/2018 6 n Æ | | | 1,470 | | | | 1,367 | |
| Celulosa Arauco Y Constitucion | | | | | | | | |
| 8.625%, 08/15/2010 | | | 1,500 | | | | 1,573 | |
| FMG Finance | | | | | | | | |
10.000%, 09/01/2013 n Æ | | | 1,130 | | | | 1,085 | |
| Freeport-McMoran Copper & Gold | | | | | | | | |
| 8.375%, 04/01/2017 | | | 1,595 | | | | 1,607 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 1,055 | | | | 981 | |
| Griffin Coal Mining | | | | | | | | |
9.500%, 12/01/2016 n Æ | | | 1,100 | | | | 566 | |
| International Paper | | | | | | | | |
| 8.700%, 06/15/2038 | | | 1,545 | | | | 1,378 | |
| Noble Group Limited | | | | | | | | |
6.625%, 03/17/2015 n Æ | | | 1,385 | | | | 1,177 | |
| Nova Chemicals | | | | | | | | |
6.500%, 01/15/2012 6 Æ | | | 1,175 | | | | 1,105 | |
| Rio Tinto Finance U.S.A. | | | | | | | | |
| 6.500%, 07/15/2018 | | | 2,325 | | | | 2,326 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 1,265 | | | | 1,144 | |
| Teck Cominco Limited | | | | | | | | |
6.125%, 10/01/2035 Æ | | | 1,575 | | | | 1,155 | |
| USG | | | | | | | | |
| 7.750%, 01/15/2018 | | | 1,150 | | | | 978 | |
| U.S. Steel | | | | | | | | |
| 7.000%, 02/01/2018 | | | 2,250 | | | | 1,955 | |
| Vale Overseas | | | | | | | | |
| 6.250%, 01/11/2016 | | | 1,020 | | | | 1,043 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n Æ | | | 1,400 | | | | 1,162 | |
| | | | | | | | | |
| | | | | | | | 27,957 | |
| | | | | | | | | |
| Brokerage – 5.6% |
| Goldman Sachs Capital II | | | | | | | | |
| 5.793%, 12/29/2049 Δ | | | 8,975 | | | | 5,470 | |
| Goldman Sachs Group | | | | | | | | |
| 6.150%, 04/01/2018 | | | 5,140 | | | | 5,004 | |
| 6.750%, 10/01/2037 | | | 6,085 | | | | 5,410 | |
| Merrill Lynch | | | | | | | | |
| 5.450%, 02/05/2013 | | | 2,490 | | | | 2,423 | |
| 6.050%, 05/16/2016 | | | 6,235 | | | | 5,583 | |
| Morgan Stanley | | | | | | | | |
| 5.375%, 10/15/2015 | | | 3,895 | | | | 3,816 | |
7.300%, 05/13/2019 6 | | | 3,820 | | | | 3,961 | |
| Series MTN | | | | | | | | |
| 6.625%, 04/01/2018 | | | 4,625 | | | | 4,611 | |
| | | | | | | | | |
| | | | | | | | 36,278 | |
| | | | | | | | | |
| Capital Goods – 1.0% |
| Boeing | | | | | | | | |
6.875%, 03/15/2039 6 | | | 1,665 | | | | 1,863 | |
| Caterpillar Financial | | | | | | | | |
| Series MTN | | | | | | | | |
7.150%, 02/15/2019 6 | | | 2,550 | | | | 2,730 | |
| Martin Marietta Material | | | | | | | | |
| 6.600%, 04/15/2018 | | | 850 | | | | 808 | |
| Siemens Financiering | | | | | | | | |
6.125%, 08/17/2026 n | | | 1,350 | | | | 1,373 | |
| | | | | | | | | |
| | | | | | | | 6,774 | |
| | | | | | | | | |
| Communications – 4.4% |
| AT&T | | | | | | | | |
6.550%, 02/15/2039 6 | | | 3,010 | | | | 3,005 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 n | | | 1,975 | | | | 1,972 | |
| British Telecom | | | | | | | | |
| 5.950%, 01/15/2018 | | | 2,050 | | | | 1,848 | |
| Comcast | | | | | | | | |
| 6.300%, 11/15/2017 | | | 735 | | | | 778 | |
| 6.400%, 05/15/2038 | | | 1,630 | | | | 1,596 | |
| Deutsche Telekom | | | | | | | | |
| 8.250%, 06/15/2030 | | | 1,235 | | | | 1,446 | |
| DirecTV Holdings | | | | | | | | |
| 7.625%, 05/15/2016 | | | 1,000 | | | | 972 | |
The accompanying notes are an integral part of the financial statements.
54 First American Funds 2009 Annual Report
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | $ | 1,545 | | | $ | 1,509 | |
| News America | | | | | | | | |
| 6.650%, 11/15/2037 | | | 3,300 | | | | 2,968 | |
| Rogers Communications | | | | | | | | |
| 6.800%, 08/15/2018 | | | 1,870 | | | | 2,005 | |
| Telecom Italia Capital | | | | | | | | |
| 7.175%, 06/18/2019 | | | 2,250 | | | | 2,281 | |
| Telefonica Emisiones | | | | | | | | |
| 7.045%, 06/20/2036 | | | 2,475 | | | | 2,743 | |
| Time Warner Cable | | | | | | | | |
| 7.300%, 07/01/2038 | | | 1,180 | | | | 1,229 | |
6.750%, 06/15/2039 6 | | | 1,515 | | | | 1,474 | |
| Verizon Communications | | | | | | | | |
6.900%, 04/15/2038 6 | | | 2,620 | | | | 2,733 | |
| Vimpelcom | | | | | | | | |
8.250%, 05/23/2016 n Æ | | | 550 | | | | 460 | |
| | | | | | | | | |
| | | | | | | | 29,019 | |
| | | | | | | | | |
| Consumer Cyclical – 1.7% |
| Galaxy Entertainment | | | | | | | | |
9.875%, 12/15/2012 n Æ | | | 575 | | | | 483 | |
| Home Depot | | | | | | | | |
| 5.875%, 12/16/2036 | | | 1,540 | | | | 1,359 | |
| Shimao Property Holdings | | | | | | | | |
8.000%, 12/01/2016 n Æ | | | 620 | | | | 487 | |
| Target | | | | | | | | |
| 7.000%, 01/15/2038 | | | 3,875 | | | | 4,130 | |
| Viacom | | | | | | | | |
| 6.875%, 04/30/2036 | | | 1,975 | | | | 1,819 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 2,920 | | | | 2,773 | |
| | | | | | | | | |
| | | | | | | | 11,051 | |
| | | | | | | | | |
| Consumer Non Cyclical – 3.9% |
| Altria Group | | | | | | | | |
| 9.950%, 11/10/2038 | | | 3,960 | | | | 4,571 | |
| Anheuser-Busch InBev | | | | | | | | |
8.200%, 01/15/2039 6 n | | | 2,135 | | | | 2,378 | |
| ConAgra Foods | | | | | | | | |
| 7.000%, 04/15/2019 | | | 1,040 | | | | 1,140 | |
| Constellation Brands | | | | | | | | |
| 7.250%, 05/15/2017 | | | 1,000 | | | | 925 | |
| CVS Caremark | | | | | | | | |
| 6.302%, 06/01/2037 Δ | | | 2,660 | | | | 1,969 | |
| Fisher Scientific International | | | | | | | | |
| 6.750%, 08/15/2014 | | | 785 | | | | 807 | |
| HCA | | | | | | | | |
9.250%, 11/15/2016 6 | | | 725 | | | | 714 | |
8.500%, 04/15/2019 n | | | 285 | | | | 279 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 1,235 | | | | 1,301 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 1,590 | | | | 1,645 | |
| Pfizer | | | | | | | | |
| 7.200%, 03/15/2039 | | | 1,645 | | | | 1,953 | |
| Roche Holdings | | | | | | | | |
6.000%, 03/01/2019 n | | | 2,190 | | | | 2,335 | |
7.000%, 03/01/2039 n | | | 1,770 | | | | 2,052 | |
| Smithfield Foods | | | | | | | | |
| 7.000%, 08/01/2011 | | | 1,870 | | | | 1,776 | |
| UnitedHealth Group | | | | | | | | |
| 6.875%, 02/15/2038 | | | 1,970 | | | | 1,824 | |
| | | | | | | | | |
| | | | | | | | 25,669 | |
| | | | | | | | | |
| Electric – 2.8% |
| Dynegy Holdings | | | | | | | | |
| 7.750%, 06/01/2019 | | | 1,190 | | | | 927 | |
| ISA Capital Brasil | | | | | | | | |
8.800%, 01/30/2017 n Æ | | | 1,150 | | | | 1,179 | |
| Majapahit Holdings | | | | | | | | |
7.750%, 10/17/2016 n Æ | | | 1,850 | | | | 1,628 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 6.125%, 04/01/2036 | | | 2,630 | | | | 2,600 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 1,685 | | | | 1,716 | |
| Oncor Electric Delivery | | | | | | | | |
| 7.000%, 05/01/2032 | | | 2,210 | | | | 2,350 | |
| Pacific Gas & Electric | | | | | | | | |
| 6.050%, 03/01/2034 | | | 1,590 | | | | 1,650 | |
| Taqa Abu Dhabi National Energy | | | | | | | | |
6.165%, 10/25/2017 n | | | 2,455 | | | | 2,324 | |
| Transalta | | | | | | | | |
| 6.650%, 05/15/2018 | | | 2,305 | | | | 2,228 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 1,550 | | | | 1,664 | |
| | | | | | | | | |
| | | | | | | | 18,266 | |
| | | | | | | | | |
| Energy – 6.8% |
| Anadarko Petroleum | | | | | | | | |
| 8.700%, 03/15/2019 | | | 2,915 | | | | 3,266 | |
| Canadian National Resources | | | | | | | | |
| 5.900%, 02/01/2018 | | | 1,370 | | | | 1,399 | |
| Canadian Oil Sands | | | | | | | | |
7.750%, 05/15/2019 n | | | 2,170 | | | | 2,219 | |
| Chesapeake Energy | | | | | | | | |
| 9.500%, 02/15/2015 | | | 1,535 | | | | 1,547 | |
| ConocoPhillips | | | | | | | | |
| 6.500%, 02/01/2039 | | | 3,915 | | | | 4,167 | |
| Encana | | | | | | | | |
| 6.500%, 02/01/2038 | | | 1,495 | | | | 1,532 | |
| Gazprom International | | | | | | | | |
7.201%, 02/01/2020 n | | | 751 | | | | 706 | |
| Halliburton | | | | | | | | |
| 7.450%, 09/15/2039 | | | 1,715 | | | | 2,001 | |
| Hess | | | | | | | | |
| 7.125%, 03/15/2033 | | | 1,950 | | | | 1,953 | |
| Lukoil International Finance | | | | | | | | |
6.356%, 06/07/2017 n | | | 670 | | | | 596 | |
6.656%, 06/07/2022 n | | | 2,585 | | | | 2,094 | |
| Marathon Oil | | | | | | | | |
| 5.900%, 03/15/2018 | | | 1,175 | | | | 1,178 | |
| Mariner Energy | | | | | | | | |
| 7.500%, 04/15/2013 | | | 1,330 | | | | 1,210 | |
| Nexen | | | | | | | | |
| 6.400%, 05/15/2037 | | | 2,240 | | | | 2,057 | |
| Petro-Canada | | | | | | | | |
| 6.800%, 05/15/2038 | | | 1,570 | | | | 1,548 | |
| Pioneer Natural Resource | | | | | | | | |
| 6.650%, 03/15/2017 | | | 1,445 | | | | 1,265 | |
| Pride International | | | | | | | | |
| 8.500%, 06/15/2019 | | | 725 | | | | 716 | |
| Smith International | | | | | | | | |
| 9.750%, 03/15/2019 | | | 2,955 | | | | 3,413 | |
| StatoilHydro | | | | | | | | |
| 5.250%, 04/15/2019 | | | 1,315 | | | | 1,354 | |
| Suncor Energy | | | | | | | | |
| 6.100%, 06/01/2018 | | | 1,700 | | | | 1,709 | |
| Talisman Energy | | | | | | | | |
| 7.750%, 06/01/2019 | | | 2,110 | | | | 2,337 | |
First American Funds 2009 Annual Report 55
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Tengizchevroil Finance | | | | | | | | |
6.124%, 11/15/2014 n | | $ | 931 | | | $ | 838 | |
| Tesoro | | | | | | | | |
| 6.625%, 11/01/2015 | | | 1,250 | | | | 1,122 | |
| Weatherford International | | | | | | | | |
| 7.000%, 03/15/2038 | | | 1,260 | | | | 1,213 | |
| Whiting Petroleum | | | | | | | | |
| 7.000%, 02/01/2014 | | | 1,115 | | | | 1,034 | |
| XTO Energy | | | | | | | | |
| 6.375%, 06/15/2038 | | | 1,640 | | | | 1,676 | |
| | | | | | | | | |
| | | | | | | | 44,150 | |
| | | | | | | | | |
| Finance – 5.1% |
| American Express | | | | | | | | |
8.125%, 05/20/2019 6 | | | 1,860 | | | | 1,930 | |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 2,470 | | | | 2,568 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 2,810 | | | | 2,871 | |
| Capital One Financial | | | | | | | | |
| 7.375%, 05/23/2014 | | | 2,025 | | | | 2,088 | |
6.150%, 09/01/2016 6 | | | 2,265 | | | | 2,005 | |
| CIT Group | | | | | | | | |
| 5.650%, 02/13/2017 | | | 1,735 | | | | 979 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 2,885 | | | | 2,559 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 Δ n | | | 2,190 | | | | 1,286 | |
| General Electric Capital | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.875%, 01/10/2039 | | | 4,705 | | | | 4,235 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 Δ n | | | 2,815 | | | | 1,042 | |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | | 2,615 | | | | 1,990 | |
| Janus Capital Group | | | | | | | | |
6.700%, 06/15/2017 6 | | | 1,700 | | | | 1,485 | |
| Rockies Express Pipeline | | | | | | | | |
7.500%, 07/15/2038 n | | | 1,760 | | | | 1,901 | |
| RSHB Capital | | | | | | | | |
7.750%, 05/29/2018 n | | | 2,120 | | | | 1,908 | |
| SLM | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.400%, 10/25/2011 | | | 1,935 | | | | 1,740 | |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 n | | | 3,490 | | | | 3,001 | |
| | | | | | | | | |
| | | | | | | | 33,588 | |
| | | | | | | | | |
| Insurance – 4.4% |
| ACE INA Holdings | | | | | | | | |
5.900%, 06/15/2019 6 | | | 2,360 | | | | 2,366 | |
| Allied World Assurance | | | | | | | | |
| 7.500%, 08/01/2016 | | | 3,070 | | | | 2,600 | |
| American International Group | | | | | | | | |
8.175%, 05/15/2058 Δ n | | | 5,405 | | | | 1,542 | |
| Chubb | | | | | | | | |
| 5.750%, 05/15/2018 | | | 3,440 | | | | 3,568 | |
| Genworth Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.515%, 05/22/2018 | | | 2,640 | | | | 1,765 | |
| Hartford Financial Services Group | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 3,275 | | | | 2,509 | |
| Liberty Mutual Group | | | | | | | | |
7.000%, 03/15/2037 Δ n | | | 1,705 | | | | 978 | |
| MetLife | | | | | | | | |
| 6.750%, 06/01/2016 | | | 1,600 | | | | 1,629 | |
| 7.717%, 02/15/2019 | | | 1,135 | | | | 1,214 | |
| MetLife Capital Trust IV | | | | | | | | |
7.875%, 12/15/2037 n | | | 2,220 | | | | 1,798 | |
| Prudential Financial | | | | | | | | |
| 5.500%, 03/15/2016 | | | 1,650 | | | | 1,547 | |
| 7.375%, 06/15/2019 | | | 1,885 | | | | 1,851 | |
| 5.900%, 03/17/2036 | | | 1,555 | | | | 1,243 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2037 Δ n | | | 5,495 | | | | 3,956 | |
| | | | | | | | | |
| | | | | | | | 28,566 | |
| | | | | | | | | |
| Natural Gas – 0.7% |
| Enterprise Products | | | | | | | | |
| 8.375%, 08/01/2066 Δ | | | 860 | | | | 692 | |
| Kinder Morgan Energy Partners | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.950%, 01/15/2038 | | | 1,920 | | | | 1,860 | |
| NGPL Pipeco | | | | | | | | |
7.119%, 12/15/2017 n | | | 1,585 | | | | 1,661 | |
| Southern Union | | | | | | | | |
| 7.200%, 11/01/2066 Δ | | | 545 | | | | 371 | |
| | | | | | | | | |
| | | | | | | | 4,584 | |
| | | | | | | | | |
| Other Utility – 0.3% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 1,730 | | | | 1,661 | |
| | | | | | | | | |
| Real Estate – 1.8% |
| Agile Property Holdings – REIT | | | | | | | | |
9.000%, 09/22/2013 6 n Æ | | | 1,715 | | | | 1,561 | |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 5,200 | | | | 4,510 | |
| iStar Financial – REIT | | | | | | | | |
| 8.625%, 06/01/2013 | | | 1,950 | | | | 1,014 | |
| Lippo Karawaci Finance | | | | | | | | |
8.875%, 03/09/2011 Æ | | | 1,000 | | | | 860 | |
| Prologis 2006 – REIT | | | | | | | | |
| 5.750%, 04/01/2016 | | | 3,395 | | | | 2,676 | |
| Simon Property Group – REIT | | | | | | | | |
| 10.350%, 04/01/2019 | | | 760 | | | | 863 | |
| | | | | | | | | |
| | | | | | | | 11,484 | |
| | | | | | | | | |
| Sovereign – 1.0% |
| Bundesrepublic Deutschland | | | | | | | | |
3.500%, 07/04/2019 ¬ | | EUR | 4,600 | | | | 6,516 | |
| | | | | | | | | |
| Technology – 1.4% |
| Chartered Semiconductor | | | | | | | | |
6.375%, 08/03/2015 6 Æ | | $ | 380 | | | | 327 | |
| Computer Sciences | | | | | | | | |
| 6.500%, 03/15/2018 | | | 2,485 | | | | 2,539 | |
| Dell | | | | | | | | |
| 5.625%, 04/15/2014 | | | 1,390 | | | | 1,468 | |
| LG Electronics | | | | | | | | |
5.000%, 06/17/2010 n ¥ | | | 785 | | | | 780 | |
| National Semiconductor | | | | | | | | |
| 6.600%, 06/15/2017 | | | 3,245 | | | | 2,838 | |
| NXP BV/NXP Funding | | | | | | | | |
10.000%, 07/15/2013 n Æ | | | 166 | | | | 121 | |
| Seagate Technology International | | | | | | | | |
10.000%, 05/01/2014 n Æ | | | 780 | | | | 804 | |
| Spansion | | | | | | | | |
5.345%, 06/01/2013 n u | | | 500 | | | | 325 | |
| | | | | | | | | |
| | | | | | | | 9,202 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
56 First American Funds 2009 Annual Report
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Transportation – 2.5% |
| American Airlines | | | | | | | | |
| Series 2001-2 | | | | | | | | |
| 8.608%, 04/01/2011 | | $ | 1,350 | | | $ | 1,080 | |
| Canadian Pacific Railroad | | | | | | | | |
| 6.500%, 05/15/2018 | | | 4,880 | | | | 4,850 | |
| Continental Airlines | | | | | | | | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 1,465 | | | | 1,040 | |
| CSX | | | | | | | | |
| 7.375%, 02/01/2019 | | | 3,045 | | | | 3,307 | |
| Delta Airlines | | | | | | | | |
Series 2001-1, Class B | | | | | | | | |
7.711%, 09/18/2011 6 | | | 1,096 | | | | 921 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 1,915 | | | | 1,729 | |
| Union Pacific | | | | | | | | |
| 6.125%, 02/15/2020 | | | 3,175 | | | | 3,292 | |
| | | | | | | | | |
| | | | | | | | 16,219 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $405,153) | | | | | | | 383,182 | |
| | | | | | | | | |
Asset-Backed Securities – 16.0% |
| Automotive – 0.7% |
| Hertz Vehicle Financing | | | | | | | | |
Series 2005-2A, Class A6 | | | | | | | | |
5.080%, 11/25/2011 n | | | 4,375 | | | | 4,268 | |
| | | | | | | | | |
| Credit Cards – 1.7% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.674%, 08/15/2011 Δ | | | 2,250 | | | | 2,146 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.749%, 05/15/2013 Δ | | | 380 | | | | 354 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.569%, 06/18/2013 Δ | | | 790 | | | | 730 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 3,655 | | | | 3,662 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.639%, 01/15/2013 Δ | | | 2,370 | | | | 2,164 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
0.744%, 05/15/2014 Δ n ¥ | | | 2,150 | | | | 2,021 | |
| | | | | | | | | |
| | | | | | | | 11,077 | |
| | | | | | | | | |
| Home Equity – 0.0% |
| GRMT Mortgage Loan Trust | | | | | | | | |
Series 2001-1A, Class M1 | | | | | | | | |
7.772%, 07/20/2031 n ¥ | | | 149 | | | | 130 | |
| | | | | | | | | |
| Manufactured Housing – 0.5% |
| Green Tree Financial | | | | | | | | |
Series 1996-8, Class A7 | | | | | | | | |
| 8.050%, 10/15/2027 Δ | | | 207 | | | | 194 | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 2,324 | | | | 2,270 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 537 | | | | 530 | |
| | | | | | | | | |
| | | | | | | | 2,994 | |
| | | | | | | | | |
| Other – 13.1% |
| Banc of America Commercial Mortgage | | | | | | | | |
Series 2005-5, Class AM | | | | | | | | |
| 5.176%, 10/10/2045 Δ | | | 4,445 | | | | 2,776 | |
Series 2006-2, Class A4 | | | | | | | | |
| 5.739%, 05/10/2045 Δ | | | 785 | | | | 654 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 Δ | | | 4,765 | | | | 4,239 | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.413%, 06/11/2050 Δ | | | 2,335 | | | | 764 | |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 Δ n ¥ | | | 1,780 | | | | 360 | |
| Citigroup Commercial Mortgage Trust | | | | | | | | |
Series 2008-C7, Class AJ | | | | | | | | |
| 6.299%, 12/10/2049 Δ | | | 1,595 | | | | 458 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-CD4, Class A2B | | | | | | | | |
| 5.205%, 12/11/2049 | | | 1,360 | | | | 1,244 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2004-RS1, Class A | | | | | | | | |
4.018%, 03/03/2041 n ¥ | | | 2,184 | | | | 1,517 | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | | 1,805 | | | | 1,533 | |
| Crown Castle Towers | | | | | | | | |
Series 2005-1A, Class B | | | | | | | | |
4.878%, 06/15/2035 n | | | 3,920 | | | | 3,802 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2005-C3, Class A2 | | | | | | | | |
| 4.853%, 07/10/2045 | | | 7,405 | | | | 7,259 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 707 | | | | 698 | |
Series 2005-GG5, Class A2 | | | | | | | | |
| 5.117%, 04/10/2037 | | | 3,805 | | | | 3,666 | |
Series 2005-GG5, Class A5 | | | | | | | | |
| 5.224%, 04/10/2037 Δ | | | 4 | | | | 3 | |
Series 2007-GG11, Class AJ | | | | | | | | |
| 6.207%, 12/10/2049 Δ | | | 4,810 | | | | 1,953 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-GG6, Class A2 | | | | | | | | |
| 5.506%, 04/10/2038 | | | 4,450 | | | | 4,310 | |
Series 2006-GG8, Class A2 | | | | | | | | |
| 5.479%, 11/10/2039 | | | 9,940 | | | | 9,278 | |
Series 2006-GG8, Class A4 | | | | | | | | |
| 5.560%, 11/10/2039 | | | 3,135 | | | | 2,557 | |
Series 2006-RR2, Class A1 | | | | | | | | |
5.818%, 06/23/2046 n ¥ | | | 1,513 | | | | 348 | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 Δ | | | 15,005 | | | | 11,339 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2005-LDP5, Class B | | | | | | | | |
5.499%, 12/15/2044 Δ ¥ | | | 1,490 | | | | 706 | |
Series 2007-CB20, Class AJ | | | | | | | | |
| 6.303%, 02/12/2051 Δ | | | 2,085 | | | | 628 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2004-C2, Class A4 | | | | | | | | |
| 4.367%, 03/15/2036 | | | 4,000 | | | | 3,387 | |
Series 2005-C7, Class A2 | | | | | | | | |
| 5.103%, 11/15/2030 | | | 2,500 | | | | 2,436 | |
Series 2007-C7, Class AM | | | | | | | | |
| 6.166%, 09/15/2045 Δ | | | 3,160 | | | | 1,525 | |
Series 2008-C1, Class AJ | | | | | | | | |
| 6.317%, 04/15/2041 Δ | | | 1,585 | | | | 601 | |
First American Funds 2009 Annual Report 57
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.127%, 07/12/2038 Δ ¥ | | $ | 1,730 | | | $ | 762 | |
Series 2005-LC1, Class AM | | | | | | | | |
| 5.441%, 01/12/2044 Δ | | | 3,500 | | | | 2,276 | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 8,395 | | | | 5,549 | |
| Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | | | | | |
Series 2007-8, Class AM | | | | | | | | |
| 6.156%, 08/12/2049 Δ | | | 4,400 | | | | 2,018 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2003-IQ6, Class A4 | | | | | | | | |
| 4.970%, 12/15/2041 | | | 5,112 | | | | 4,785 | |
Series 2005-HQ6, Class B | | | | | | | | |
5.152%, 08/13/2042 Δ ¥ | | | 745 | | | | 360 | |
Series 2005-HQ6, Class C | | | | | | | | |
| 5.172%, 08/13/2042 Δ | | | 705 | | | | 327 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C33, Class AJ | | | | | | | | |
| 6.100%, 02/15/2051 Δ | | | 2,745 | | | | 729 | |
Series 2007-C34, Class AJ | | | | | | | | |
| 6.147%, 05/15/2046 Δ | | | 2,905 | | | | 861 | |
| | | | | | | | | |
| | | | | | | | 85,708 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $133,140) | | | | | | | 104,177 | |
| | | | | | | | | |
U.S. Government Agency
Mortgage-Backed Securities – 13.4% |
| Adjustable Rate Δ – 0.9% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 6.052%, 10/01/2029, #1L0117 | | | 753 | | | | 772 | |
| 3.942%, 07/01/2030, #847240 | | | 805 | | | | 818 | |
| 5.140%, 05/01/2033, #847411 | | | 570 | | | | 581 | |
5.769%, 07/01/2036, #1K1238 6 | | | 2,510 | | | | 2,628 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 4.137%, 09/01/2033, #725553 | | | 340 | | | | 346 | |
| 5.199%, 01/01/2035, #745548 | | | 811 | | | | 822 | |
| | | | | | | | | |
| | | | | | | | 5,967 | |
| | | | | | | | | |
| Fixed Rate – 12.5% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
6.500%, 07/01/2031, #A17212 6 | | | 2,018 | | | | 2,166 | |
| 7.000%, 08/01/2037, #H09059 | | | 3,703 | | | | 3,967 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.500%, 02/01/2025, #255628 | | | 2,029 | | | | 2,111 | |
5.500%, 10/01/2025, #255956 6 | | | 7,479 | | | | 7,776 | |
6.000%, 04/01/2032, #745101 6 | | | 645 | | | | 671 | |
| 5.500%, 06/01/2033, #843435 | | | 858 | | | | 891 | |
| 5.000%, 03/01/2034, #725205 | | | 992 | | | | 1,015 | |
5.000%, 03/01/2034, #725250 6 | | | 891 | | | | 911 | |
| 6.000%, 03/01/2034, #745324 | | | 1,336 | | | | 1,409 | |
4.500%, 07/01/2034 « | | | 19,760 | | | | 19,717 | |
5.500%, 09/01/2034, #725773 6 | | | 1,476 | | | | 1,531 | |
6.500%, 04/01/2036, #831377 6 | | | 1,054 | | | | 1,124 | |
| 6.500%, 04/01/2036, #852909 | | | 652 | | | | 695 | |
6.500%, 08/01/2036, #893318 6 | | | 1,524 | | | | 1,633 | |
6.500%, 09/01/2036, #897129 6 | | | 3,037 | | | | 3,240 | |
5.500%, 04/01/2037, #918883 « | | | 1,664 | | | | 1,721 | |
6.000%, 09/01/2037, #256890 6 | | | 2,496 | | | | 2,605 | |
| 5.000%, 05/01/2038, #963258 | | | 6,960 | | | | 7,097 | |
5.500%, 07/15/2038 « | | | 13,000 | | | | 13,418 | |
| 5.500%, 12/01/2038, #AA0889 | | | 7,590 | | | | 7,846 | |
| | | | | | | | | |
| | | | | | | | 81,544 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $85,386) | | | | | | | 87,511 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities – 11.0% |
| Adjustable Rate Δ – 3.4% |
| Citigroup Mortgage Loan Trust | | | | | | | | |
Series 2004-HYB4, Class HAII | | | | | | | | |
| 5.350%, 10/25/2034 | | | 8,030 | | | | 5,332 | |
Series 2005-7, Class 2A1A | | | | | | | | |
| 4.862%, 09/25/2035 | | | 1,163 | | | | 861 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-OA17, Class 1A1A | | | | | | | | |
| 0.511%, 12/20/2046 | | | 3,734 | | | | 1,494 | |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.296%, 02/25/2034 | | | 1,362 | | | | 1,243 | |
Series 2006-HYB5, Class 3A1A | | | | | | | | |
| 6.041%, 09/20/2036 | | | 6,373 | | | | 2,893 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class B1 | | | | | | | | |
5.086%, 01/25/2035 ¥ | | | 2,036 | | | | 308 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 5.444%, 03/25/2035 | | | 704 | | | | 333 | |
| JPMorgan Alternative Loan Trust | | | | | | | | |
Series 2007-S1, Class A1 | | | | | | | | |
| 0.594%, 04/25/2047 | | | 2,520 | | | | 1,183 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2004-A1, Class 3A1 | | | | | | | | |
| 4.956%, 02/25/2034 | | | 3,127 | | | | 2,797 | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.941%, 01/25/2037 | | | 2,377 | | | | 518 | |
| Residential Funding Mortgage Securities I | | | | | | | | |
Series 2006-SA2, Class 4A1 | | | | | | | | |
| 5.863%, 08/25/2036 | | | 2,385 | | | | 1,584 | |
| Wachovia Mortgage Loan Trust | | | | | | | | |
Series 2005-B, Class 1A1 | | | | | | | | |
| 5.008%, 10/20/2035 | | | 897 | | | | 723 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2005-AR10, Class 2A5 | | | | | | | | |
| 3.902%, 06/25/2035 | | | 527 | | | | 509 | |
Series 2006-AR1, Class 2A2 | | | | | | | | |
| 5.545%, 03/25/2036 | | | 2,889 | | | | 2,310 | |
| | | | | | | | | |
| | | | | | | | 22,088 | |
| | | | | | | | | |
| Fixed Rate – 7.6% |
| Bank of America Alternative Loan Trust | | | | | | | | |
Series 2007-1, Class 2A2 | | | | | | | | |
| 6.477%, 04/25/2037 | | | 2,271 | | | | 1,282 | |
| Chase Mortgage Finance | | | | | | | | |
Series 2003-S11, Class 1A1 | | | | | | | | |
| 5.000%, 10/25/2033 | | | 2,241 | | | | 1,946 | |
Series 2003-S13, Class A16 | | | | | | | | |
| 5.000%, 11/25/2033 | | | 6,435 | | | | 5,587 | |
| Chaseflex Trust | | | | | | | | |
Series 2005-2, Class 4A1 | | | | | | | | |
| 5.000%, 05/25/2020 | | | 3,781 | | | | 3,345 | |
The accompanying notes are an integral part of the financial statements.
58 First American Funds 2009 Annual Report
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE |
| |
| |
| Citigroup Mortgage Loan Trust | | | | | | | | |
Series 2005-WF1, Class A2 | | | | | | | | |
| 4.490%, 02/25/2035 | | $ | 389 | | | $ | 364 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-12CB, Class 1A1 | | | | | | | | |
| 5.000%, 07/25/2019 | | | 971 | | | | 917 | |
Series 2004-24CB, Class 2A1 | | | | | | | | |
| 5.000%, 11/25/2019 | | | 1,222 | | | | 1,142 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,805 | | | | 1,346 | |
| Countrywide Home Loans | | | | | | | | |
Series 2007-17, Class 1A1 | | | | | | | | |
| 6.000%, 10/25/2037 | | | 6,485 | | | | 4,765 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.905%, 03/25/2043 ¥ | | | 2,807 | | | | 2,122 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-4F, Class B1 | | | | | | | | |
5.730%, 05/25/2035 ¥ | | | 2,235 | | | | 1,371 | |
| Impac Secured Assets | | | | | | | | |
Series 2000-3, Class M1 | | | | | | | | |
8.000%, 10/25/2030 ¥ | | | 2,583 | | | | 2,425 | |
| Lehman Brothers Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.550%, 07/25/2047 | | | 5,614 | | | | 4,434 | |
| Residential Accredit Loans | | | | | | | | |
Series 2005-QS12, Class A7 | | | | | | | | |
| 5.500%, 08/25/2035 | | | 2,268 | | | | 1,882 | |
| Washington Mutual Mortgage Pass-Through Certificates | | | | | | | | |
Series 2004-RA3, Class 2A | | | | | | | | |
| 6.354%, 08/25/2038 | | | 1,680 | | | | 1,621 | |
Series 2007-2, Class 3A1 | | | | | | | | |
| 5.500%, 04/25/2022 | | | 3,918 | | | | 3,513 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2005-13, Class A1 | | | | | | | | |
| 5.000%, 11/25/2020 | | | 725 | | | | 693 | |
Series 2005-3, Class A9 | | | | | | | | |
| 5.500%, 05/25/2035 | | | 4,211 | | | | 2,288 | |
Series 2007-10, Class 1A1 | | | | | | | | |
| 6.000%, 07/25/2037 | | | 5,668 | | | | 4,350 | |
Series 2007-13, Class A8 | | | | | | | | |
| 6.000%, 09/25/2037 | | | 5,034 | | | | 4,253 | |
| | | | | | | | | |
| | | | | | | | 49,646 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | | | | | | |
(Cost $95,563) | | | | | | | 71,734 | |
| | | | | | | | | |
Preferred Stocks – 0.6% |
| Banking – 0.3% |
| Bank of America | | | | | | | | |
Series MER 6 | | | 98,700 | | | | 2,001 | |
| | | | | | | | | |
| Insurance – 0.2% |
| Aspen Insurance Holdings | | | | | | | | |
Series A Æ | | | 84,500 | | | | 1,353 | |
| | | | | | | | | |
| Sovereign – 0.1% |
| Fannie Mae | | | | | | | | |
| Series S | | | 217,000 | | | | 291 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $9,717) | | | | | | | 3,645 | |
| | | | | | | | | |
Convertible Securities – 0.3% |
| Communications – 0.1% |
| Central European Media Entertainment | | | | | | | | |
3.500%, 03/15/2013 n Æ | | $ | 1,475 | | | | 946 | |
| | | | | | | | | |
| Energy – 0.2% |
| Headwaters | | | | | | | | |
2.875%, 06/01/2016 ¥ | | | 1,925 | | | | 1,035 | |
| | | | | | | | | |
Total Convertible Securities | | | | | | | | |
(Cost $2,521) | | | | | | | 1,981 | |
| | | | | | | | | |
Municipal Bond – 0.2% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | �� | | | | | | | |
6.950%, 09/01/2016 ¥ | | | | | | | | |
(Cost $1,695) | | | 1,695 | | | | 1,587 | |
| | | | | | | | | |
U.S. Government & Agency Security – 0.2% |
| U.S. Treasury – 0.2% |
| U.S. Treasury Note | | | | | | | | |
| 2.250%, 05/31/2014 | | | | | | | | |
(Cost $1,576) | | | 1,605 | | | | 1,584 | |
| | | | | | | | | |
Short-Term Investments – 4.4% |
| Money Market Fund – 3.3% |
First American Prime Obligations Fund,
Class Z Å | | | 21,396,127 | | | | 21,396 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 1.1% |
U.S. Treasury Bills o | | | | | | | | |
| 0.185%, 10/08/2009 | | $ | 1,820 | | | | 1,819 | |
| 0.200%, 10/22/2009 | | | 3,305 | | | | 3,303 | |
| 0.362%, 02/11/2010 | | | 2,200 | | | | 2,195 | |
| | | | | | | | | |
| | | | | | | | 7,317 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $28,713) | | | | | | | 28,713 | |
| | | | | | | | | |
Investment Purchased with Proceeds
from Securities Lending – 10.0% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $65,031) | | | 65,030,884 | | | | 65,031 | |
| | | | | | | | | |
Total Investments 5 – 114.9% | | | | | | | | |
(Cost $828,495) | | | | | | | 749,145 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (14.9)% | | | | | | | (96,911 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 652,234 | |
| | | | | | | | | |
| | |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $63,276 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $72,437 or 11.0% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Æ | | Represents a foreign high yield (non-investment grade) U.S. dollar denominated security. On June 30, 2009, the value of these investments was $17,581, which represents 2.7% of total net assets. |
| |
| ¬ | | Foreign security values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $16,159 or 2.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| u | | Security in default at June 30, 2009. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $34,126 or 5.2% of total net assets. See note 2 in Notes to Financial Statements. |
First American Funds 2009 Annual Report 59
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
Total Return Bond Fund (continued)
| | |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $833,476. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 16,307 | |
| Gross unrealized depreciation | | | (100,638 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (84,331 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | | | | | |
| | | | | | Contracts
| | | Notional
| | | Unrealized
| |
| | | Settlement
| | | Purchased
| | | Contract
| | | Appreciation
| |
| Description | | Month | | | (Sold) | | | Value | | | (Depreciation) | |
| | |
| Australian Dollar Currency Futures | | | September 2009 | | | | 155 | | | $ | 12,445 | | | $ | (173 | ) |
| Canadian Dollar Currency Futures | | | September 2009 | | | | 70 | | | | 6,027 | | | | (336 | ) |
| U.S. Treasury 2 Year Note Futures | | | September 2009 | | | | (31 | ) | | | (6,703 | ) | | | 11 | |
| U.S. Treasury 5 Year Note Futures | | | September 2009 | | | | (211 | ) | | | (24,206 | ) | | | (87 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2009 | | | | (182 | ) | | | (21,160 | ) | | | (334 | ) |
| U.S. Treasury Long Bond Futures | | | September 2009 | | | | (266 | ) | | | (31,484 | ) | | | (760 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (1,679 | ) |
| | | | | | | | | | | | | | | | | |
Credit Default Swap Agreements
Credit Default Swaps on Credit Indices
Buy Protection1
| | | | | | | | | | | | | | | | | | | |
| | | Reference
| | Pay
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Entity | | Fixed Rate | | | Date | | | Amount2 | | | Depreciation | |
| | |
| UBS | | Markit CDX IG12 Index | | | 1.000% | | | | 06/20/2014 | | | $ | 13,000 | | | $ | (186 | ) |
| | | | | | | | | | | | | | | | | | | |
Sell Protection3
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Unrealized
| |
| | | Reference
| | Receive
| | | Expiration
| | | Notional
| | | Appreciation
| |
| Counterparty | | Index | | Fixed Rate | | | Date | | | Amount2 | | | (Depreciation) | |
| | |
| Deutsche Bank | | Markit CDX HVOL11 Index | | | 3.850% | | | | 12/20/2013 | | | $ | 7,000 | | | $ | 90 | |
| Deutsche Bank | | Markit CDX HVOL12 Index | | | 5.000% | | | | 06/20/2014 | | | | 24,000 | | | | 329 | |
| JPMorgan | | Markit iTraxx Asia
ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 9,600 | | | | (606 | ) |
| JPMorgan | | Markit CDX HVOL11 Index | | | 3.850% | | | | 12/20/2013 | | | | 7,600 | | | | 78 | |
| UBS | | Markit iTraxx Asia
ex-Japan Index | | | 6.500% | | | | 06/20/2013 | | | | 13,200 | | | | (934 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | (1,043 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total Return Bond Fund (concluded)
| | |
| 1 | | If the fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the reference entity or underlying securities comprising the reference index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. |
| |
| 2 | | The maximum potential amount the fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| |
| 3 | | If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. |
Interest Rate Swap Agreements
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | Unrealized
| |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Appreciation
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | (Depreciation) | |
| | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 2.610% | | | | 1/12/2019 | | | $ | 19,000 | | | $ | 1,722 | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 4.045% | | | | 11/14/2018 | | | | 5,000 | | | | (136 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | $ | 1,586 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Schedule of Open Written Options
Call Options
| | | | | | | | | | | | | | | | | | | |
| | | Exercise
| | Premium
| | | Expiration
| | | Number of
| | | | |
| Option | | Price | | Received | | | Date | | | Contracts | | | Value | |
| | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | $119.00 | | $ | 165 | | | | 08/21/2009 | | | | 342 | | | $ | 224 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 123.00 | | | 86 | | | | 08/21/2009 | | | | 135 | | | | 13 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 124.00 | | | 78 | | | | 08/21/2009 | | | | 135 | | | | 6 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | $ | 329 | | | | | | | | | | | $ | 243 | |
| | | | | | | | | | | | | | | | | | | |
Put Options
| | | | | | | | | | | | | | | | | | | |
| | | Exercise
| | Premium
| | | Expiration
| | | Number of
| | | | |
| Option | | Price | | Received | | | Date | | | Contracts | | | Value | |
| | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | $111.00 | | $ | 102 | | | | 08/21/2009 | | | | 136 | | | $ | 30 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 113.00 | | | 160 | | | | 08/21/2009 | | | | 203 | | | | 127 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 115.00 | | | 91 | | | | 08/21/2009 | | | | 136 | | | | 162 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 116.00 | | | 105 | | | | 08/21/2009 | | | | 137 | | | | 220 | |
| U.S. Treasury 10 Year Note Futures — September 2009 | | 110.00 | | | 113 | | | | 08/21/2009 | | | | 137 | | | | 30 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | $ | 571 | | | | | | | | | | | $ | 569 | |
| | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
60 First American Funds 2009 Annual Report
| | | | | | | | | |
| U.S. Government Mortgage Fund |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
U.S. Government Agency
Mortgage-Backed Securities – 90.9% |
| Adjustable Rate Δ – 5.9% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 5.559%, 05/01/2037, #1H1396 | | $ | 2,418 | | | $ | 2,496 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.451%, 03/01/2037, #914224 | | | 2,142 | | | | 2,239 | |
| 5.455%, 04/01/2037, #913187 | | | 1,910 | | | | 1,944 | |
| | | | | | | | | |
| | | | | | | | 6,679 | |
| | | | | | | | | |
| Fixed Rate – 85.0% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 7.000%, 07/01/2011, #E20252 | | | 7 | | | | 8 | |
| 7.500%, 09/01/2012, #G10735 | | | 49 | | | | 51 | |
| 6.000%, 10/01/2013, #E72802 | | | 105 | | | | 111 | |
| 5.500%, 01/01/2014, #E00617 | | | 401 | | | | 417 | |
| 7.000%, 09/01/2014, #E00746 | | | 71 | | | | 76 | |
| 6.000%, 09/01/2022, #C90580 | | | 599 | | | | 632 | |
| 6.500%, 01/01/2028, #G00876 | | | 251 | | | | 270 | |
| 6.500%, 11/01/2028, #C00676 | | | 575 | | | | 618 | |
| 7.500%, 01/01/2030, #C35768 | | | 36 | | | | 39 | |
| 6.500%, 03/01/2031, #G01244 | | | 461 | | | | 496 | |
| 5.000%, 09/01/2033, #C01622 | | | 1,600 | | | | 1,636 | |
| 6.000%, 08/01/2036, #A51416 | | | 822 | | | | 860 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 7.000%, 11/01/2011, #250738 | | | 4 | | | | 4 | |
| 7.000%, 11/01/2011, #349630 | | | 2 | | | | 2 | |
| 7.000%, 11/01/2011, #351122 | | | 6 | | | | 6 | |
| 6.000%, 04/01/2013, #425550 | | | 67 | | | | 71 | |
| 6.500%, 08/01/2013, #251901 | | | 52 | | | | 55 | |
| 6.000%, 11/01/2013, #556195 | | | 83 | | | | 88 | |
| 7.000%, 10/01/2014, #252799 | | | 48 | | | | 51 | |
| 5.500%, 04/01/2016, #580516 | | | 404 | | | | 426 | |
| 6.500%, 07/01/2017, #254373 | | | 528 | | | | 560 | |
| 7.000%, 07/01/2017, #254414 | | | 529 | | | | 566 | |
| 5.500%, 12/01/2017, #673010 | | | 401 | | | | 423 | |
| 5.500%, 04/01/2018, #695765 | | | 475 | | | | 502 | |
| 4.500%, 05/01/2018, #254720 | | | 1,885 | | | | 1,956 | |
| 5.500%, 09/01/2019, #725793 | | | 2,256 | | | | 2,383 | |
| 6.000%, 12/01/2021, #254138 | | | 339 | | | | 359 | |
| 6.000%, 01/01/2022, #254179 | | | 439 | | | | 465 | |
| 6.500%, 06/01/2022, #254344 | | | 431 | | | | 464 | |
6.000%, 10/01/2022, #254513 6 | | | 496 | | | | 524 | |
5.500%, 10/01/2025, #255956 6 | | | 2,610 | | | | 2,714 | |
| 7.000%, 12/01/2027, #313941 | | | 304 | | | | 334 | |
| 7.000%, 09/01/2031, #596680 | | | 743 | | | | 809 | |
| 6.500%, 12/01/2031, #254169 | | | 644 | | | | 687 | |
6.000%, 04/01/2032, #745101 6 | | | 2,118 | | | | 2,204 | |
| 6.500%, 06/01/2032, #596712 | | | 1,708 | | | | 1,820 | |
| 6.500%, 07/01/2032, #545759 | | | 908 | | | | 976 | |
| 7.000%, 07/01/2032, #545815 | | | 188 | | | | 206 | |
| 6.000%, 08/01/2032, #656269 | | | 498 | | | | 518 | |
| 5.500%, 03/01/2033, #689109 | | | 1,869 | | | | 1,939 | |
| 5.500%, 04/01/2033, #703392 | | | 2,273 | | | | 2,358 | |
| 5.500%, 05/01/2033, #704523 | | | 1,474 | | | | 1,530 | |
| 5.500%, 06/01/2033, #843435 | | | 1,600 | | | | 1,662 | |
| 5.500%, 07/01/2033, #726520 | | | 2,177 | | | | 2,259 | |
| 5.500%, 07/01/2033, #728667 | | | 1,183 | | | | 1,228 | |
| 4.500%, 08/01/2033, #555680 | | | 1,696 | | | | 1,701 | |
| 5.000%, 08/01/2033, #736158 | | | 2,223 | | | | 2,275 | |
| 5.000%, 09/01/2033, #734566 | | | 2,230 | | | | 2,281 | |
| 5.000%, 10/01/2033, #747533 | | | 2,257 | | | | 2,310 | |
| 5.500%, 11/01/2033, #555967 | | | 2,262 | | | | 2,347 | |
| 6.000%, 01/01/2034, #763687 | | | 1,960 | | | | 2,061 | |
| 6.000%, 03/01/2034, #745324 | | | 1,983 | | | | 2,092 | |
| 5.000%, 05/01/2034, #780889 | | | 3,038 | | | | 3,106 | |
6.500%, 06/01/2034, #735273 6 | | | 1,301 | | | | 1,398 | |
4.500%, 07/01/2034 « | | | 2,870 | | | | 2,863 | |
| 4.500%, 09/01/2034, #725866 | | | 1,031 | | | | 1,034 | |
| 5.000%, 07/01/2035, #826305 | | | 2,540 | | | | 2,595 | |
5.000%, 03/01/2036, #745336 6 | | | 2,235 | | | | 2,284 | |
| 6.000%, 04/01/2037, #923821 | | | 737 | | | | 772 | |
| 7.000%, 06/01/2037, #928519 | | | 4,158 | | | | 4,516 | |
| 5.500%, 02/01/2038, #933514 | | | 3,153 | | | | 3,259 | |
| 5.000%, 03/01/2038, #973241 | | | 1,967 | | | | 2,006 | |
5.500%, 07/15/2038 « | | | 875 | | | | 903 | |
5.500%, 08/01/2038, #988027 6 | | | 955 | | | | 987 | |
| 5.500%, 12/01/2038, #AA0889 | | | 2,240 | | | | 2,316 | |
5.000%, 06/01/2039 « | | | 7,885 | | | | 8,028 | |
6.500%, 07/01/2039 « | | | 7,180 | | | | 7,647 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 9.000%, 11/15/2009, #359559 | | | 2 | | | | 2 | |
| 8.000%, 10/15/2010, #414750 | | | 4 | | | | 5 | |
| 7.500%, 12/15/2022, #347332 | | | 58 | | | | 63 | |
| 7.000%, 09/15/2027, #455304 | | | 17 | | | | 18 | |
| 6.500%, 07/15/2028, #780825 | | | 460 | | | | 497 | |
| 6.500%, 08/20/2031, #003120 | | | 174 | | | | 188 | |
| 7.500%, 12/15/2031, #570134 | | | 150 | | | | 164 | |
6.000%, 09/15/2034, #633605 6 | | | 1,672 | | | | 1,752 | |
| | | | | | | | | |
| | | | | | | | 96,833 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $100,549) | | | | | | | 103,512 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities – 11.6% |
| Adjustable Rate Δ – 1.9% |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-OA17, Class 1A1A | | | | | | | | |
| 0.511%, 12/20/2046 | | | 896 | | | | 359 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2003-D, Class A1 | | | | | | | | |
| 4.396%, 02/25/2033 | | | 199 | | | | 179 | |
Series 2006-AR1, Class 2A2 | | | | | | | | |
| 5.545%, 03/25/2036 | | | 1,523 | | | | 1,218 | |
Series 2006-AR14, Class 2A3 | | | | | | | | |
| 6.077%, 10/25/2036 | | | 541 | | | | 371 | |
| | | | | | | | | |
| | | | | | | | 2,127 | |
| | | | | | | | | |
| Fixed Rate – 9.7% |
| Banc of America Funding | | | | | | | | |
Series 2007-4, Class 1A2 | | | | | | | | |
| 5.500%, 06/25/2037 | | | 875 | | | | 466 | |
| Bank of America Alternative Loan Trust | | | | | | | | |
Series 2007-1, Class 2A2 | | | | | | | | |
| 6.477%, 04/25/2037 | | | 821 | | | | 464 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-24CB, Class 1A1 | | | | | | | | |
| 6.000%, 11/25/2034 | | | 1,020 | | | | 852 | |
| Countrywide Home Loans | | | | | | | | |
Series 2007-17, Class 1A1 | | | | | | | | |
| 6.000%, 10/25/2037 | | | 1,147 | | | | 843 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.905%, 03/25/2043 ¥ | | | 930 | | | | 703 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-4F, Class B1 | | | | | | | | |
5.730%, 05/25/2035 ¥ | | | 1,341 | | | | 822 | |
First American Funds 2009 Annual Report 61
Schedule of Investments June 30, 2009, all dollars are rounded to thousands (000)
| | | | | | | | | |
| U.S. Government Mortgage Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE |
| |
| |
| Impac Secured Assets | | | | | | | | |
Series 2000-3, Class M1 | | | | | | | | |
8.000%, 10/25/2030 ¥ | | $ | 444 | | | $ | 417 | |
| Lehman Brothers Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.550%, 07/25/2047 | | | 729 | | | | 576 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2005-2, Class 1A3 | | | | | | | | |
| 6.500%, 03/25/2035 | | | 577 | | | | 484 | |
| Residential Accredit Loans | | | | | | | | |
Series 2003-QS12, Class M1 | | | | | | | | |
5.000%, 06/25/2018 ¥ | | | 753 | | | | 556 | |
| Residential Asset Mortgage Products | | | | | | | | |
Series 2003-SL1, Class M1 | | | | | | | | |
7.326%, 04/25/2031 ¥ | | | 2,408 | | | | 2,096 | |
Series 2004-SL4, Class A3 | | | | | | | | |
| 6.500%, 07/25/2032 | | | 1,051 | | | | 961 | |
| Washington Mutual Mortgage Pass-Through Certificates | | | | | | | | |
Series 2007-2, Class 3A1 | | | | | | | | |
| 5.500%, 04/25/2022 | | | 397 | | | | 356 | |
| Washington Mutual MSC Mortgage | | | | | | | | |
Series 2003-MS9, Class CB-1 | | | | | | | | |
7.464%, 04/25/2033 ¥ | | | 1,370 | | | | 523 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2007-10, Class 1A1 | | | | | | | | |
| 6.000%, 07/25/2037 | | | 844 | | | | 648 | |
Series 2007-9, Class 1A4 | | | | | | | | |
| 5.500%, 07/25/2037 | | | 600 | | | | 351 | |
| | | | | | | | | |
| | | | | | | | 11,118 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation-
Private Mortgage-Backed Securities | | | | | | | | |
(Cost $17,942) | | | | | | | 13,245 | |
| | | | | | | | | |
Asset-Backed Securities – 9.2% |
| Credit Cards – 0.9% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.674%, 08/15/2011 Δ | | | 355 | | | | 339 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.639%, 01/15/2013 Δ | | | 375 | | | | 342 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
0.744%, 05/15/2014 Δ ¥ n | | | 375 | | | | 353 | |
| | | | | | | | | |
| | | | | | | | 1,034 | |
| | | | | | | | | |
| Home Equity – 0.0% |
| GRMT Mortgage Loan Trust | | | | | | | | |
Series 2001-1A, Class M1 | | | | | | | | |
7.772%, 07/20/2031 ¥ n | | | 50 | | | | 43 | |
| | | | | | | | | |
| Manufactured Housing – 0.4% |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-B, Class M1 | | | | | | | | |
| 5.990%, 01/15/2037 | | | 750 | | | | 458 | |
| | | | | | | | | |
| Other – 7.9% |
| Banc of America Commercial Mortgage | | | | | | | | |
Series 2005-5, Class AM | | | | | | | | |
| 5.176%, 10/10/2045 Δ | | | 610 | | | | 381 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2007-PW18, Class AJ | | | | | | | | |
| 6.413%, 06/11/2050 | | | 320 | | | | 105 | |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 Δ ¥ n | | | 285 | | | | 57 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2007-GG11, Class A4 | | | | | | | | |
| 5.736%, 12/10/2049 | | | 1,470 | | | | 1,182 | |
Series 2007-GG11, Class AJ | | | | | | | | |
| 6.207%, 12/10/2049 Δ | | | 800 | | | | 325 | |
Series 2007-GG9, Class A4 | | | | | | | | |
| 5.444%, 03/10/2039 | | | 1,000 | | | | 797 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-GG8, Class A2 | | | | | | | | |
| 5.479%, 11/10/2039 | | | 2,000 | | | | 1,867 | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.993%, 08/10/2045 | | | 4,000 | | | | 3,023 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2005-LDP5, Class B | | | | | | | | |
5.499%, 12/15/2044 Δ ¥ | | | 255 | | | | 121 | |
Series 2007-CB20, Class AJ | | | | | | | | |
| 6.303%, 02/12/2051 Δ | | | 505 | | | | 152 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2008-C1, Class AJ | | | | | | | | |
| 6.317%, 04/15/2041 Δ | | | 495 | | | | 188 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.127%, 07/12/2038 Δ ¥ | | | 285 | | | | 125 | |
| Merrill Lynch/Countrywide Commercial Mortgage Trust | | | | | | | | |
Series 2007-8, Class AM | | | | | | | | |
| 6.156%, 08/12/2049 Δ | | | 600 | | | | 275 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2005-HQ6, Class B | | | | | | | | |
5.152%, 08/13/2042 Δ ¥ | | | 120 | | | | 58 | |
Series 2005-HQ6, Class C | | | | | | | | |
5.172%, 08/13/2042 Δ ¥ | | | 110 | | | | 51 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C33, Class AJ | | | | | | | | |
| 6.100%, 02/15/2051 Δ | | | 445 | | | | 118 | |
Series 2007-C34, Class AJ | | | | | | | | |
| 6.147%, 05/15/2046 Δ | | | 455 | | | | 135 | |
| | | | | | | | | |
| | | | | | | | 8,960 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $14,859) | | | | | | | 10,495 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
U.S. Government Agency
Mortgage-Backed Securities – 0.7% |
| Fixed Rate – 0.7% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2382, Class DA | | | | | | | | |
| 5.500%, 10/15/2030 | | | 108 | | | | 112 | |
| Federal National Mortgage Association | | | | | | | | |
Series 2002-W1, Class 2A | | | | | | | | |
| 7.500%, 02/25/2042 | | | 660 | | | | 713 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation –
U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $801) | | | | | | | 825 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
62 First American Funds 2009 Annual Report
| | | | | | | | | |
| U.S. Government Mortgage Fund (continued) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE |
| |
| |
Short-Term Investments – 4.4% |
| Money Market Fund – 4.1% |
First American Government Obligations Fund, Class Z Å | | | 4,672,526 | | | $ | 4,673 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.3% |
U.S. Treasury Bills o | | | | | | | | |
| 0.175%, 09/24/2009 | | $ | 145 | | | | 145 | |
| 0.362%, 02/11/2010 | | | 150 | | | | 150 | |
| | | | | | | | | |
| | | | | | | | 295 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $4,968) | | | | | | | 4,968 | |
| | | | | | | | | |
Investment Purchased with Proceeds
from Securities Lending – 10.7% |
| Mount Vernon Securities Lending Prime Portfolio † | | | | | | | | |
(Cost $12,223) | | | 12,222,729 | | | | 12,223 | |
| | | | | | | | | |
Total Investments 5 – 127.5% | | | | | | | | |
(Cost $151,342) | | | | | | | 145,268 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (27.5)% | | | | | | | (31,343 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 113,925 | |
| | | | | | | | | |
| | |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2009. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2009. Total loaned securities had a value of $11,862 at June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2009, the total cost of investments purchased on a when-issued basis was $19,151 or 16.8% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2009, the value of these investments was $5,925 or 5.2% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| n | | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” As of June 30, 2009, the value of these investments was $453 or 0.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| Å | | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is effective yield as of June 30, 2009. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. The fund maintains collateral equal to at least 100% of the value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2009, the cost of investments for federal income tax purposes was $151,672. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 3,141 | |
| Gross unrealized depreciation | | | (9,545 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (6,404 | ) |
| | | | | |
U.S. Government Mortgage Fund (concluded)
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | |
| | | | | Number of
| | | | | | | |
| | | | | Contracts
| | | Notional
| | | Unrealized
| |
| | | Settlement
| | Purchased
| | | Contract
| | | Appreciation
| |
| Description | | Month | | (Sold) | | | Value | | | (Depreciation) | |
| | |
| U.S. Treasury 2 Year Note Futures | | September 2009 | | | (12 | ) | | $ | (2,595 | ) | | $ | 4 | |
| U.S. Treasury 5 Year Note Futures | | September 2009 | | | 6 | | | | 688 | | | | (5 | ) |
| U.S. Treasury 10 Year Note Futures | | September 2009 | | | (20 | ) | | | (2,325 | ) | | | 6 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 5 | |
| | | | | | | | | | | | | | | |
Interest Rate Swap Agreement
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | | Receive
| | | | | | | | | | | | | |
| | | Rate
| | | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 4.045% | | | | 11/14/2018 | | | $ | 1,000 | | | $ | (27 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
First American Funds 2009 Annual Report 63
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | Inflation
| | | |
| | | Core
| | | | High Income
| | | | Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
| Unaffiliated investments, at cost | | $ | 1,539,552 | | | | $ | 223,373 | | | | $ | 177,869 | | | |
| Affiliated money market fund, at cost | | | 24,404 | | | | | 12,449 | | | | | 3,819 | | | |
| Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | | | 202,331 | | | | | 17,157 | | | | | 54,175 | | | |
| Premiums received on options written, at cost (note 2) | | | — | | | | | — | | | | | — | | | |
| Cash denominated in foreign currencies, at cost | | | 278 | | | | | — | | | | | 48 | | | |
| |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Unaffiliated investments, at fair value* (note 2) | | $ | 1,434,375 | | | | $ | 201,749 | | | | $ | 171,800 | | | |
| Affiliated money market fund, at fair value (note 2) | | | 24,404 | | | | | 12,449 | | | | | 3,819 | | | |
| Affiliated investment purchased with proceeds from securities lending, at fair value (note 2) | | | 202,331 | | | | | 17,157 | | | | | 54,175 | | | |
| Cash | | | — | | | | | 25 | | | | | 49 | | | |
| Receivable for dividends and interest | | | 13,714 | | | | | 4,210 | | | | | 1,468 | | | |
| Receivable for investments sold | | | 23,051 | | | | | 2,160 | | | | | — | | | |
| Receivable for capital shares sold | | | 696 | | | | | 1,514 | | | | | 57 | | | |
| Receivable for swap agreements | | | 593 | | | | | — | | | | | — | | | |
| Receivable for variation margin | | | 205 | | | | | — | | | | | — | | | |
| Prepaid expenses and other assets | | | 11 | | | | | 12 | | | | | 11 | | | |
| |
| |
Total assets | | | 1,699,380 | | | | | 239,276 | | | | | 231,379 | | | |
| |
| |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Cash denominated in foreign currencies, at fair value | | | 278 | | | | | — | | | | | 48 | | | |
| Options written, at value | | | — | | | | | — | | | | | — | | | |
| Bank overdraft | | | 1,020 | | | | | — | | | | | — | | | |
| Dividends payable | | | 4,133 | | | | | 1,415 | | | | | — | | | |
| Payable upon return of securities loaned (note 2) | | | 202,331 | | | | | 17,157 | | | | | 54,175 | | | |
| Payable for investments purchased | | | 14,617 | | | | | 4,988 | | | | | 274 | | | |
| Payable for investments purchased on a when-issued basis | | | 100,893 | | | | | — | | | | | — | | | |
| Payable for capital shares redeemed | | | 3,511 | | | | | 320 | | | | | 1,046 | | | |
| Payable for swap agreements | | | — | | | | | — | | | | | 106 | | | |
| Payable for variation margin | | | — | | | | | 5 | | | | | 6 | | | |
| Payable to affiliates (note 3) | | | 803 | | | | | 141 | | | | | 81 | | | |
| Payable for distribution and shareholder servicing fees | | | 18 | | | | | 11 | | | | | 3 | | | |
| Accrued expenses and other liabilities | | | 35 | | | | | 32 | | | | | 32 | | | |
| |
| |
Total liabilities | | | 327,639 | | | | | 24,069 | | | | | 55,771 | | | |
| |
| |
Net assets | | $ | 1,371,741 | | | | $ | 215,207 | | | | $ | 175,608 | | | |
| |
| |
COMPOSITION OF NET ASSETS: | | | | | | | | | | | | | | | | |
| Portfolio capital | | $ | 1,536,114 | | | | $ | 284,860 | | | | $ | 197,864 | | | |
| Undistributed (distributions in excess of) net investment income | | | (389 | ) | | | | (167 | ) | | | | (9 | ) | | |
| Accumulated net realized gain (loss) on investments, future contracts, foreign currency transactions, options written, and swap agreements (note 2) | | | (58,882 | ) | | | | (47,854 | ) | | | | (16,039 | ) | | |
| Net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
| Investments | | | (105,177 | ) | | | | (21,624 | ) | | | | (6,069 | ) | | |
| Futures contracts | | | (1,150 | ) | | | | (8 | ) | | | | 4 | | | |
| Options written | | | — | | | | | — | | | | | — | | | |
| Swap agreements | | | 1,225 | | | | | — | | | | | (143 | ) | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | — | | | | | — | | | | | — | | | |
| |
| |
Net assets | | $ | 1,371,741 | | | | $ | 215,207 | | | | $ | 175,608 | | | |
| |
| |
| * Including securities loaned, at fair value | | $ | 197,715 | | | | $ | 16,751 | | | | $ | 53,222 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
64 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | | | | | | | | | | | | | | | | |
| | | Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | $ | 106,930 | | | | $ | 744,847 | | | | $ | 380,485 | | | | $ | 742,068 | | | | $ | 134,446 | | | |
| | | | 4,596 | | | | | 26,689 | | | | | 9,470 | | | | | 21,396 | | | | | 4,673 | | | |
| | | | — | | | | | 51,662 | | | | | 55,264 | | | | | 65,031 | | | | | 12,223 | | | |
| | | | — | | | | | — | | | | | — | | | | | 900 | | | | | — | | | |
| | | | — | | | | | — | | | | | 47 | | | | | 517 | | | | | — | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 107,541 | | | | $ | 713,161 | | | | $ | 370,765 | | | | $ | 662,718 | | | | $ | 128,372 | | | |
| | | | 4,596 | | | | | 26,689 | | | | | 9,470 | | | | | 21,396 | | | | | 4,673 | | | |
| | | | — | | | | | 51,662 | | | | | 55,264 | | | | | 65,031 | | | | | 12,223 | | | |
| | | | — | | | | | 342 | | | | | 88 | | | | | 1,030 | | | | | 8 | | | |
| | | | 1,176 | | | | | 8,317 | | | | | 2,815 | | | | | 7,844 | | | | | 557 | | | |
| | | | 667 | | | | | 119 | | | | | 243 | | | | | 9,268 | | | | | 46 | | | |
| | | | 233 | | | | | 2,868 | | | | | 1,649 | | | | | 481 | | | | | 35 | | | |
| | | | — | | | | | 561 | | | | | 153 | | | | | 334 | | | | | — | | | |
| | | | — | | | | | — | | | | | 13 | | | | | — | | | | | 8 | | | |
| | | | — | | | | | 2 | | | | | 12 | | | | | 11 | | | | | 5 | | | |
| |
| |
| | | | 114,213 | | | | | 803,721 | | | | | 440,472 | | | | | 768,113 | | | | | 145,927 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | 47 | | | | | 516 | | | | | — | | | |
| | | | — | | | | | — | | | | | — | | | | | 812 | | | | | — | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| | | | 94 | | | | | 2,161 | | | | | 1,047 | | | | | 2,869 | | | | | 322 | | | |
| | | | — | | | | | 51,662 | | | | | 55,264 | | | | | 65,031 | | | | | 12,223 | | | |
| | | | — | | | | | — | | | | | 2,891 | | | | | 9,971 | | | | | — | | | |
| | | | — | | | | | — | | | | | — | | | | | 34,126 | | | | | 19,151 | | | |
| | | | 2,287 | | | | | 945 | | | | | 274 | | | | | 1,351 | | | | | 175 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 31 | | | |
| | | | — | | | | | 64 | | | | | — | | | | | 748 | | | | | — | | | |
| | | | 49 | | | | | 418 | | | | | 176 | | | | | 410 | | | | | 61 | | | |
| | | | 1 | | | | | 3 | | | | | 15 | | | | | 7 | | | | | 7 | | | |
| | | | 33 | | | | | 32 | | | | | 30 | | | | | 38 | | | | | 32 | | | |
| |
| |
| | | | 2,464 | | | | | 55,285 | | | | | 59,744 | | | | | 115,879 | | | | | 32,002 | | | |
| |
| |
| | | $ | 111,749 | | | | $ | 748,436 | | | | $ | 380,728 | | | | $ | 652,234 | | | | $ | 113,925 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 109,148 | | | | $ | 806,853 | | | | $ | 409,635 | | | | $ | 814,645 | | | | $ | 132,187 | | | |
| | | | 45 | | | | | (36 | ) | | | | (76 | ) | | | | 534 | | | | | (34 | ) | | |
| | | | 1,945 | | | | | (25,358 | ) | | | | (18,724 | ) | | | | (82,362 | ) | | | | (12,132 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 611 | | | | | (31,686 | ) | | | | (9,720 | ) | | | | (79,350 | ) | | | | (6,074 | ) | | |
| | | | — | | | | | (1,156 | ) | | | | (181 | ) | | | | (1,679 | ) | | | | 5 | | | |
| | | | — | | | | | — | | | | | — | | | | | 88 | | | | | — | | | |
| | | | — | | | | | (181 | ) | | | | (206 | ) | | | | 357 | | | | | (27 | ) | | |
| | | | — | | | | | — | | | | | — | | | | | 1 | | | | | — | | | |
| |
| |
| | | $ | 111,749 | | | | $ | 748,436 | | | | $ | 380,728 | | | | $ | 652,234 | | | | $ | 113,925 | | | |
| |
| |
| | | | — | | | | $ | 50,427 | | | | $ | 54,072 | | | | $ | 63,276 | | | | $ | 11,862 | | | |
| |
| |
First American Funds 2009 Annual Report 65
| |
| Statements ofAssets and Liabilities | continued |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | Inflation
| | | |
| | | Core
| | | | High Income
| | | | Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 82,373 | | | | $ | 25,696 | | | | $ | 5,439 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 8,206 | | | | | 3,592 | | | | | 567 | | | |
| Net asset value and redemption price per share | | $ | 10.04 | | | | $ | 7.15 | | | | $ | 9.59 | | | |
Maximum offering price per share1 | | $ | 10.49 | | | | $ | 7.47 | | | | $ | 10.02 | | | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 5,780 | | | | $ | 2,157 | | | | | — | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 581 | | | | | 303 | | | | | — | | | |
Net asset value, offering price, and redemption price per share2 | | $ | 9.95 | | | | $ | 7.11 | | | | | — | | | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 3,693 | | | | $ | 5,038 | | | | $ | 1,406 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 369 | | | | | 708 | | | | | 147 | | | |
Net asset value per share2 | | $ | 10.00 | | | | $ | 7.12 | | | | $ | 9.53 | | | |
Class R: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 406 | | | | $ | 265 | | | | $ | 1,262 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 40 | | | | | 36 | | | | | 132 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 10.09 | | | | $ | 7.28 | | | | $ | 9.58 | | | |
Class Y: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,279,489 | | | | $ | 182,051 | | | | $ | 167,501 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 127,507 | | | | | 25,439 | | | | | 17,458 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 10.03 | | | | $ | 7.16 | | | | $ | 9.59 | | | |
| |
| |
| | |
| | 1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. |
| |
| | 2 | Class B and Class C have a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
66 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | | | | | | | | | | | | | | | | |
| | | Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 10,496 | | | | $ | 23,905 | | | | $ | 65,704 | | | | $ | 13,948 | | | | $ | 10,149 | | | |
| | | | 1,210 | | | | | 2,524 | | | | | 6,799 | | | | | 1,548 | | | | | 1,038 | | | |
| | | $ | 8.67 | | | | $ | 9.47 | | | | $ | 9.66 | | | | $ | 9.01 | | | | $ | 9.78 | | | |
| | | $ | 8.87 | | | | $ | 9.69 | | | | $ | 9.88 | | | | $ | 9.41 | | | | $ | 10.21 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 1,719 | | | | $ | 3,014 | | | |
| | | | — | | | | | — | | | | | — | | | | | 192 | | | | | 308 | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 8.97 | | | | $ | 9.80 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 2,778 | | | | $ | 2,120 | | | |
| | | | — | | | | | — | | | | | — | | | | | 310 | | | | | 218 | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 8.96 | | | | $ | 9.74 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 681 | | | | $ | 2,386 | | | |
| | | | — | | | | | — | | | | | — | | | | | 75 | | | | | 244 | | | |
| | | | — | | | | | — | | | | | — | | | | $ | 9.07 | | | | $ | 9.76 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 101,253 | | | | $ | 724,531 | | | | $ | 315,024 | | | | $ | 633,108 | | | | $ | 96,256 | | | |
| | | | 11,677 | | | | | 76,807 | | | | | 32,584 | | | | | 70,282 | | | | | 9,840 | | | |
| | | $ | 8.67 | | | | $ | 9.43 | | | | $ | 9.67 | | | | $ | 9.01 | | | | $ | 9.78 | | | |
| |
| |
First American Funds 2009 Annual Report 67
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | Inflation
| | | |
| | | Core
| | | | High Income
| | | | Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
| Interest from unaffiliated investments | | $ | 92,783 | | | | $ | 19,374 | | | | $ | 5,845 | | | |
| Dividends from unaffiliated investments | | | 351 | | | | | 1,388 | | | | | 53 | | | |
| Dividends from affiliated money market fund | | | 222 | | | | | 86 | | | | | 43 | | | |
| Less: Foreign taxes withheld | | | — | | | | | (9 | ) | | | | — | | | |
| Securities lending income | | | 598 | | | | | 147 | | | | | 688 | | | |
| |
| |
Total investment income | | | 93,954 | | | | | 20,986 | | | | | 6,629 | | | |
| |
| |
EXPENSES (note 3): | | | | | | | | | | | | | | | | |
| Investment advisory fees | | | 6,463 | | | | | 1,244 | | | | | 1,085 | | | |
| Administration fees | | | 2,896 | | | | | 424 | | | | | 496 | | | |
| Transfer agent fees | | | 227 | | | | | 134 | | | | | 99 | | | |
| Custodian fees | | | 65 | | | | | 9 | | | | | 11 | | | |
| Legal fees | | | 15 | | | | | 16 | | | | | 16 | | | |
| Audit fees | | | 37 | | | | | 36 | | | | | 37 | | | |
| Registration fees | | | 54 | | | | | 52 | | | | | 45 | | | |
| Postage and printing fees | | | 62 | | | | | 10 | | | | | 10 | | | |
| Directors’ fees | | | 29 | | | | | 29 | | | | | 29 | | | |
| Other expenses | | | 24 | | | | | 20 | | | | | 20 | | | |
| Distribution and shareholder servicing fees: | | | | | | | | | | | | | | | | |
| Class A | | | 200 | | | | | 53 | | | | | 10 | | | |
| Class B | | | 63 | | | | | 24 | | | | | — | | | |
| Class C | | | 37 | | | | | 49 | | | | | 7 | | | |
| Class R | | | 2 | | | | | 1 | | | | | 6 | | | |
| |
| |
Total expenses | | | 10,174 | | | | | 2,101 | | | | | 1,871 | | | |
| |
| |
| Less: Fee waivers (note 3) | | | (847 | ) | | | | (468 | ) | | | | (549 | ) | | |
| Less: Indirect payments from custodian (note 3) | | | (3 | ) | | | | — | | | | | — | | | |
| |
| |
Total net expenses | | | 9,324 | | | | | 1,633 | | | | | 1,322 | | | |
| |
| |
Investment income – net | | | 84,630 | | | | | 19,353 | | | | | 5,307 | | | |
| |
| |
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5): | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | (44,797 | ) | | | | (41,280 | ) | | | | (6,928 | ) | | |
| Futures contracts | | | (8,565 | ) | | | | 1,291 | | | | | 568 | | | |
| Options written | | | (56 | ) | | | | — | | | | | (11 | ) | | |
| Swap agreements | | | (3,086 | ) | | | | 1,530 | | | | | 667 | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (80 | ) | | | | — | | | | | 7 | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | |
| Investments | | | (53,547 | ) | | | | (2,227 | ) | | | | (11,535 | ) | | |
| Futures contracts | | | (1,120 | ) | | | | 121 | | | | | (183 | ) | | |
| Options written | | | — | | | | | — | | | | | — | | | |
| Swap agreements | | | 2,856 | | | | | (242 | ) | | | | (157 | ) | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (2 | ) | | | | — | | | | | 7 | | | |
| |
| |
Net gain (loss) on investments, futures contracts, options written, foreign currency transactions, and swap agreements | | | (108,397 | ) | | | | (40,807 | ) | | | | (17,565 | ) | | |
| |
| |
Net increase (decrease) in net assets resulting from operations | | $ | (23,767 | ) | | | $ | (21,454 | ) | | | $ | (12,258 | ) | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
68 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | | | | | | | | | | | | | | | | |
| | | Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 3,521 | | | | $ | 42,605 | | | | $ | 17,797 | | | | $ | 64,252 | | | | $ | 7,359 | | | |
| | | | — | | | | | 163 | | | | | — | | | | | 582 | | | | | — | | | |
| | | | 30 | | | | | 177 | | | | | 258 | | | | | 269 | | | | | 39 | | | |
| | | | — | | | | | — | | | | | — | | | | | (17 | ) | | | | — | | | |
| | | | — | | | | | 218 | | | | | 102 | | | | | 248 | | | | | 40 | | | |
| |
| |
| | | | 3,551 | | | | | 43,163 | | | | | 18,157 | | | | | 65,334 | | | | | 7,438 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 590 | | | | | 3,543 | | | | | 1,617 | | | | | 4,601 | | | | | 615 | | | |
| | | | 274 | | | | | 1,571 | | | | | 748 | | | | | 1,734 | | | | | 298 | | | |
| | | | 61 | | | | | 62 | | | | | 103 | | | | | 125 | | | | | 123 | | | |
| | | | 6 | | | | | 36 | | | | | 16 | | | | | 38 | | | | | 6 | | | |
| | | | 15 | | | | | 16 | | | | | 16 | | | | | 13 | | | | | 15 | | | |
| | | | 36 | | | | | 37 | | | | | 37 | | | | | 39 | | | | | 37 | | | |
| | | | 27 | | | | | 29 | | | | | 30 | | | | | 52 | | | | | 53 | | | |
| | | | 7 | | | | | 32 | | | | | 15 | | | | | 39 | | | | | 6 | | | |
| | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | | | 29 | | | |
| | | | 19 | | | | | 20 | | | | | 19 | | | | | 23 | | | | | 20 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 30 | | | | | 59 | | | | | 140 | | | | | 32 | | | | | 25 | | | |
| | | | — | | | | | — | | | | | — | | | | | 19 | | | | | 33 | | | |
| | | | — | | | | | — | | | | | — | | | | | 27 | | | | | 21 | | | |
| | | | — | | | | | — | | | | | — | | | | | 2 | | | | | 10 | | | |
| |
| |
| | | | 1,094 | | | | | 5,434 | | | | | 2,770 | | | | | 6,773 | | | | | 1,291 | | | |
| |
| |
| | | | (370 | ) | | | | (455 | ) | | | | (761 | ) | | | | (959 | ) | | | | (345 | ) | | |
| | | | — | | | | | (3 | ) | | | | (2 | ) | | | | (4 | ) | | | | — | | | |
| |
| |
| | | | 724 | | | | | 4,976 | | | | | 2,007 | | | | | 5,810 | | | | | 946 | | | |
| |
| |
| | | | 2,827 | | | | | 38,187 | | | | | 16,150 | | | | | 59,524 | | | | | 6,492 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2,409 | | | | | (15,230 | ) | | | | (5,134 | ) | | | | (61,203 | ) | | | | 215 | | | |
| | | | — | | | | | (4,487 | ) | | | | 987 | | | | | (9,842 | ) | | | | (2,943 | ) | | |
| | | | — | | | | | — | | | | | (11 | ) | | | | 915 | | | | | — | | | |
| | | | — | | | | | 2,045 | | | | | 1,358 | | | | | (14,144 | ) | | | | 93 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | (15 | ) | | | | 264 | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 768 | | | | | (14,219 | ) | | | | (3,864 | ) | | | | (41,674 | ) | | | | (1,965 | ) | | |
| | | | — | | | | | (789 | ) | | | | (55 | ) | | | | 1,035 | | | | | 38 | | | |
| | | | — | | | | | — | | | | | — | | | | | (408 | ) | | | | — | | | |
| | | | — | | | | | 1,031 | | | | | (227 | ) | | | | 1,386 | | | | | (297 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | | 19 | | | | | — | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3,177 | | | | | (31,649 | ) | | | | (6,961 | ) | | | | (123,652 | ) | | | | (4,859 | ) | | |
| |
| |
| | | $ | 6,004 | | | | $ | 6,538 | | | | $ | 9,189 | | | | $ | (64,128 | ) | | | $ | 1,633 | | | |
| |
| |
First American Funds 2009 Annual Report 69
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Inflation
| | | |
| | | Core
| | | | High Income
| | | | Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 84,630 | | | $ | 80,205 | | | | $ | 19,353 | | | $ | 20,036 | | | | $ | 5,307 | | | $ | 14,750 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (44,797 | ) | | | 7,467 | | | | | (41,280 | ) | | | (10,921 | ) | | | | (6,928 | ) | | | 3,465 | | | |
| Futures contracts | | | (8,565 | ) | | | 5,859 | | | | | 1,291 | | | | 1,015 | | | | | 568 | | | | (606 | ) | | |
| Options written | | | (56 | ) | | | 391 | | | | | — | | | | — | | | | | (11 | ) | | | 67 | | | |
| Swap agreements | | | (3,086 | ) | | | 16,969 | | | | | 1,530 | | | | 2,015 | | | | | 667 | | | | 1,420 | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (80 | ) | | | (11 | ) | | | | — | | | | — | | | | | 7 | | | | 5 | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | (53,547 | ) | | | (18,072 | ) | | | | (2,227 | ) | | | (19,004 | ) | | | | (11,535 | ) | | | 14,716 | | | |
| Futures contracts | | | (1,120 | ) | | | 1,703 | | | | | 121 | | | | (84 | ) | | | | (183 | ) | | | 815 | | | |
| Options written | | | — | | | | (106 | ) | | | | — | | | | — | | | | | — | | | | (19 | ) | | |
| Swap agreements | | | 2,856 | | | | (3,678 | ) | | | | (242 | ) | | | (175 | ) | | | | (157 | ) | | | (176 | ) | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (2 | ) | | | 3 | | | | | — | | | | — | | | | | 7 | | | | (6 | ) | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | (23,767 | ) | | | 90,730 | | | | | (21,454 | ) | | | (7,118 | ) | | | | (12,258 | ) | | | 34,431 | | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (5,156 | ) | | | (4,504 | ) | | | | (2,415 | ) | | | (2,154 | ) | | | | (91 | ) | | | (162 | ) | | |
| Class B | | | (363 | ) | | | (318 | ) | | | | (245 | ) | | | (275 | ) | | | | — | | | | — | | | |
| Class C | | | (213 | ) | | | (169 | ) | | | | (512 | ) | | | (487 | ) | | | | (6 | ) | | | (16 | ) | | |
| Class R | | | (20 | ) | | | (10 | ) | | | | (23 | ) | | | (14 | ) | | | | (28 | ) | | | (52 | ) | | |
| Class Y | | | (80,122 | ) | | | (72,552 | ) | | | | (16,979 | ) | | | (16,811 | ) | | | | (7,681 | ) | | | (14,266 | ) | | |
| Realized gain on investments – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Class B | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Class R | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Class Y | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Return of capital: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | | — | | | | — | | | | | (53 | ) | | | — | | | |
| Class B | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | | | (9 | ) | | | — | | | |
| Class R | | | — | | | | — | | | | | — | | | | — | | | | | (15 | ) | | | — | | | |
| Class Y | | | — | | | | — | | | | | — | | | | — | | | | | (2,696 | ) | | | — | | | |
| |
| |
| Total distributions | | | (85,874 | ) | | | (77,553 | ) | | | | (20,174 | ) | | | (19,741 | ) | | | | (10,579 | ) | | | (14,496 | ) | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
70 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | | | | | | | | | | | | | | | | |
| | | Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 2,827 | | | $ | 2,049 | | | | $ | 38,187 | | | $ | 35,856 | | | | $ | 16,150 | | | $ | 15,887 | | | | $ | 59,524 | | | $ | 51,878 | | | | $ | 6,492 | | | $ | 7,103 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2,409 | | | | 1,212 | | | | | (15,230 | ) | | | 7,883 | | | | | (5,134 | ) | | | 245 | | | | | (61,203 | ) | | | 11,426 | | | | | 215 | | | | 651 | | | |
| | | | — | | | | — | | | | | (4,487 | ) | | | 4,339 | | | | | 987 | | | | (227 | ) | | | | (9,842 | ) | | | 3,259 | | | | | (2,943 | ) | | | (3,511 | ) | | |
| | | | — | | | | — | | | | | — | | | | 193 | | | | | (11 | ) | | | — | | | | | 915 | | | | 2,228 | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | 2,045 | | | | 6,796 | | | | | 1,358 | | | | 3,111 | | | | | (14,144 | ) | | | 13,903 | | | | | 93 | | | | 1,122 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | (15 | ) | | | (98 | ) | | | | 264 | | | | (74 | ) | | | | — | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 768 | | | | 694 | | | | | (14,219 | ) | | | (7,558 | ) | | | | (3,864 | ) | | | (2,442 | ) | | | | (41,674 | ) | | | (25,631 | ) | | | | (1,965 | ) | | | 210 | | | |
| | | | — | | | | — | | | | | (789 | ) | | | 800 | | | | | (55 | ) | | | (279 | ) | | | | 1,035 | | | | (1,248 | ) | | | | 38 | | | | 293 | | | |
| | | | — | | | | — | | | | | — | | | | (51 | ) | | | | — | | | | — | | | | | (408 | ) | | | 447 | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | 1,031 | | | | (1,465 | ) | | | | (227 | ) | | | (660 | ) | | | | 1,386 | | | | (4,335 | ) | | | | (297 | ) | | | 145 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 19 | | | | (33 | ) | | | | — | | | | — | | | |
| |
| |
| | | | 6,004 | | | | 3,955 | | | | | 6,538 | | | | 46,793 | | | | | 9,189 | | | | 15,537 | | | | | (64,128 | ) | | | 51,820 | | | | | 1,633 | | | | 6,013 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (257 | ) | | | (152 | ) | | | | (1,326 | ) | | | (1,209 | ) | | | | (2,560 | ) | | | (2,764 | ) | | | | (946 | ) | | | (708 | ) | | | | (528 | ) | | | (576 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (125 | ) | | | (89 | ) | | | | (149 | ) | | | (167 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (182 | ) | | | (116 | ) | | | | (95 | ) | | | (102 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (24 | ) | | | (11 | ) | | | | (102 | ) | | | (35 | ) | | |
| | | | (2,457 | ) | | | (1,931 | ) | | | | (39,603 | ) | | | (32,706 | ) | | | | (12,651 | ) | | | (12,551 | ) | | | | (57,528 | ) | | | (48,984 | ) | | | | (5,901 | ) | | | (6,259 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (234 | ) | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (37 | ) | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (45 | ) | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (4 | ) | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (14,120 | ) | | | — | | | | | — | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| | | | (2,714 | ) | | | (2,083 | ) | | | | (40,929 | ) | | | (33,915 | ) | | | | (15,211 | ) | | | (15,315 | ) | | | | (73,245 | ) | | | (49,908 | ) | | | | (6,775 | ) | | | (7,139 | ) | | |
| |
| |
First American Funds 2009 Annual Report 71
| |
| Statements ofChanges in Net Assets | continued |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Inflation
| | | |
| | | Core
| | | | High Income
| | | | Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 10,085 | | | | 10,204 | | | | | 16,377 | | | | 13,748 | | | | | 3,292 | | | | 929 | | | |
| Reinvestment of distributions | | | 3,991 | | | | 3,468 | | | | | 1,572 | | | | 1,384 | | | | | 110 | | | | 118 | | | |
| Payments for redemptions | | | (19,007 | ) | | | (22,665 | ) | | | | (13,646 | ) | | | (16,878 | ) | | | | (1,048 | ) | | | (689 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | (4,931 | ) | | | (8,993 | ) | | | | 4,303 | | | | (1,746 | ) | | | | 2,354 | | | | 358 | | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 381 | | | | 634 | | | | | 123 | | | | 169 | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 335 | | | | 290 | | | | | 159 | | | | 167 | | | | | — | | | | — | | | |
| Payments for redemptions | | | (2,011 | ) | | | (2,905 | ) | | | | (1,022 | ) | | | (1,225 | ) | | | | — | | | | — | | | |
| |
| |
| Increase (decrease) in net assets from Class B transactions | | | (1,295 | ) | | | (1,981 | ) | | | | (740 | ) | | | (889 | ) | | | | — | | | | — | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 963 | | | | 826 | | | | | 491 | | | | 882 | | | | | 1,321 | | | | 252 | | | |
| Reinvestment of distributions | | | 176 | | | | 144 | | | | | 267 | | | | 260 | | | | | 9 | | | | 9 | | | |
| Payments for redemptions | | | (1,459 | ) | | | (1,184 | ) | | | | (1,062 | ) | | | (2,406 | ) | | | | (287 | ) | | | (265 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class C transactions | | | (320 | ) | | | (214 | ) | | | | (304 | ) | | | (1,264 | ) | | | | 1,043 | | | | (4 | ) | | |
| |
| |
| Class R: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 151 | | | | 340 | | | | | 105 | | | | 238 | | | | | 317 | | | | 390 | | | |
| Reinvestment of distributions | | | 20 | | | | 10 | | | | | 8 | | | | 4 | | | | | 43 | | | | 52 | | | |
| Payments for redemptions | | | (36 | ) | | | (127 | ) | | | | (3 | ) | | | (227 | ) | | | | (204 | ) | | | (163 | ) | | |
| |
| |
| Increase in net assets from Class R transactions | | | 135 | | | | 223 | | | | | 110 | | | | 15 | | | | | 156 | | | | 279 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 475,310 | | | | 288,760 | | | | | 62,943 | | | | 38,777 | | | | | 46,823 | | | | 119,279 | | | |
| Reinvestment of distributions | | | 23,742 | | | | 19,639 | | | | | 1,716 | | | | 1,842 | | | | | 2,129 | | | | 3,012 | | | |
| Payments for redemptions | | | (586,834 | ) | | | (382,775 | ) | | | | (49,948 | ) | | | (46,573 | ) | | | | (137,643 | ) | | | (136,470 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | (87,782 | ) | | | (74,376 | ) | | | | 14,711 | | | | (5,954 | ) | | | | (88,691 | ) | | | (14,179 | ) | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | (94,193 | ) | | | (85,341 | ) | | | | 18,080 | | | | (9,838 | ) | | | | (85,138 | ) | | | (13,546 | ) | | |
| |
| |
| Total increase (decrease) in net assets | | | (203,834 | ) | | | (72,164 | ) | | | | (23,548 | ) | | | (36,697 | ) | | | | (107,975 | ) | | | 6,389 | | | |
Net assets at beginning of year | | | 1,575,575 | | | | 1,647,739 | | | | | 238,755 | | | | 275,452 | | | | | 283,583 | | | | 277,194 | | | |
| |
| |
Net assets at end of year | | $ | 1,371,741 | | | $ | 1,575,575 | | | | $ | 215,207 | | | $ | 238,755 | | | | $ | 175,608 | | | $ | 283,583 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income | | $ | (389 | ) | | $ | 3,698 | | | | $ | (167 | ) | | $ | 872 | | | | $ | (9 | ) | | $ | 2,576 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
72 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | | | | | | | | | | | | | | | | |
| | | Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 15,012 | | | | 5,998 | | | | | 3,133 | | | | 4,210 | | | | | 16,921 | | | | 2,014 | | | | | 3,930 | | | | 6,610 | | | | | 2,136 | | | | 788 | | | |
| | | | 206 | | | | 137 | | | | | 1,092 | | | | 1,005 | | | | | 1,947 | | | | 2,093 | | | | | 924 | | | | 551 | | | | | 446 | | | | 496 | | | |
| | | | (11,591 | ) | | | (1,341 | ) | | | | (7,402 | ) | | | (8,047 | ) | | | | (11,765 | ) | | | (10,889 | ) | | | | (5,068 | ) | | | (4,841 | ) | | | | (3,339 | ) | | | (3,686 | ) | | |
| |
| |
| | | | 3,627 | | | | 4,794 | | | | | (3,177 | ) | | | (2,832 | ) | | | | 7,103 | | | | (6,782 | ) | | | | (214 | ) | | | 2,320 | | | | | (757 | ) | | | (2,402 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 230 | | | | 676 | | | | | 110 | | | | 161 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 131 | | | | 61 | | | | | 127 | | | | 139 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (758 | ) | | | (632 | ) | | | | (824 | ) | | | (1,458 | ) | | |
| |
| |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (397 | ) | | | 105 | | | | | (587 | ) | | | (1,158 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 1,198 | | | | 2,257 | | | | | 435 | | | | 140 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 166 | | | | 77 | | | | | 78 | | | | 85 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (1,819 | ) | | | (423 | ) | | | | (569 | ) | | | (1,029 | ) | | |
| |
| |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (455 | ) | | | 1,911 | | | | | (56 | ) | | | (804 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 442 | | | | 196 | | | | | 1,871 | | | | 1,688 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 28 | | | | 11 | | | | | 101 | | | | 35 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (130 | ) | | | (131 | ) | | | | (1,122 | ) | | | (312 | ) | | |
| |
| |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 340 | | | | 76 | | | | | 850 | | | | 1,411 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 109,739 | | | | 44,048 | | | | | 197,327 | | | | 184,766 | | | | | 134,155 | | | | 46,206 | | | | | 299,711 | | | | 441,760 | | | | | 13,315 | | | | 26,624 | | | |
| | | | 1,341 | | | | 1,098 | | | | | 10,867 | | | | 10,529 | | | | | 3,778 | | | | 4,114 | | | | | 22,461 | | | | 17,097 | | | | | 1,102 | | | | 1,299 | | | |
| | | | (76,536 | ) | | | (20,848 | ) | | | | (217,486 | ) | | | (193,684 | ) | | | | (75,622 | ) | | | (104,277 | ) | | | | (622,967 | ) | | | (243,047 | ) | | | | (37,112 | ) | | | (37,478 | ) | | |
| |
| |
| | | | 34,544 | | | | 24,298 | | | | | (9,292 | ) | | | 1,611 | | | | | 62,311 | | | | (53,957 | ) | | | | (300,795 | ) | | | 215,810 | | | | | (22,695 | ) | | | (9,555 | ) | | |
| |
| |
| | | | 38,171 | | | | 29,092 | | | | | (12,469 | ) | | | (1,221 | ) | | | | 69,414 | | | | (60,739 | ) | | | | (301,521 | ) | | | 220,222 | | | | | (23,245 | ) | | | (12,508 | ) | | |
| |
| |
| | | | 41,461 | | | | 30,964 | | | | | (46,860 | ) | | | 11,657 | | | | | 63,392 | | | | (60,517 | ) | | | | (438,894 | ) | | | 222,134 | | | | | (28,387 | ) | | | (13,634 | ) | | |
| | | | 70,288 | | | | 39,324 | | | | | 795,296 | | | | 783,639 | | | | | 317,336 | | | | 377,853 | | | | | 1,091,128 | | | | 868,994 | | | | | 142,312 | | | | 155,946 | | | |
| |
| |
| | | $ | 111,749 | | | $ | 70,288 | | | | $ | 748,436 | | | $ | 795,296 | | | | $ | 380,728 | | | $ | 317,336 | | | | $ | 652,234 | | | $ | 1,091,128 | | | | $ | 113,925 | | | $ | 142,312 | | | |
| |
| |
| | | $ | 45 | | | $ | (68 | ) | | | $ | (36 | ) | | $ | 1,979 | | | | $ | (76 | ) | | $ | 470 | | | | $ | 534 | | | $ | 3,403 | | | | $ | (34 | ) | | $ | 310 | | | |
| |
| |
First American Funds 2009 Annual Report 73
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Distributions
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Distributions | | | Period | | |
| |
Core Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.86 | | | | $ | 0.61 | | | | $ | (0.81 | ) | | | $ | (0.20 | ) | | | $ | (0.62 | ) | | | $ | — | | | | $ | (0.62 | ) | | | $ | 10.04 | | | |
20082 | | | 10.79 | | | | | 0.51 | | | | | 0.05 | | | | | 0.56 | | | | | (0.49 | ) | | | | — | | | | | (0.49 | ) | | | | 10.86 | | | |
20072 | | | 10.71 | | | | | 0.47 | | | | | 0.09 | | | | | 0.56 | | | | | (0.48 | ) | | | | — | | | | | (0.48 | ) | | | | 10.79 | | | |
20063 | | | 11.15 | | | | | 0.33 | | | | | (0.37 | ) | | | | (0.04 | ) | | | | (0.33 | ) | | | | (0.07 | ) | | | | (0.40 | ) | | | | 10.71 | | | |
20054 | | | 11.27 | | | | | 0.40 | | | | | (0.09 | ) | | | | 0.31 | | | | | (0.42 | ) | | | | (0.01 | ) | | | | (0.43 | ) | | | | 11.15 | | | |
20044 | | | 11.56 | | | | | 0.38 | | | | | (0.09 | ) | | | | 0.29 | | | | | (0.41 | ) | | | | (0.17 | ) | | | | (0.58 | ) | | | | 11.27 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.77 | | | | $ | 0.54 | | | | $ | (0.81 | ) | | | $ | (0.27 | ) | | | $ | (0.55 | ) | | | $ | — | | | | $ | (0.55 | ) | | | $ | 9.95 | | | |
20082 | | | 10.70 | | | | | 0.42 | | | | | 0.06 | | | | | 0.48 | | | | | (0.41 | ) | | | | — | | | | | (0.41 | ) | | | | 10.77 | | | |
20072 | | | 10.63 | | | | | 0.38 | | | | | 0.09 | | | | | 0.47 | | | | | (0.40 | ) | | | | — | | | | | (0.40 | ) | | | | 10.70 | | | |
20063 | | | 11.07 | | | | | 0.26 | | | | | (0.36 | ) | | | | (0.10 | ) | | | | (0.27 | ) | | | | (0.07 | ) | | | | (0.34 | ) | | | | 10.63 | | | |
20054 | | | 11.19 | | | | | 0.31 | | | | | (0.09 | ) | | | | 0.22 | | | | | (0.33 | ) | | | | (0.01 | ) | | | | (0.34 | ) | | | | 11.07 | | | |
20044 | | | 11.48 | | | | | 0.29 | | | | | (0.09 | ) | | | | 0.20 | | | | | (0.32 | ) | | | | (0.17 | ) | | | | (0.49 | ) | | | | 11.19 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.83 | | | | $ | 0.54 | | | | $ | (0.82 | ) | | | $ | (0.28 | ) | | | $ | (0.55 | ) | | | $ | — | | | | $ | (0.55 | ) | | | $ | 10.00 | | | |
20082 | | | 10.75 | | | | | 0.43 | | | | | 0.06 | | | | | 0.49 | | | | | (0.41 | ) | | | | — | | | | | (0.41 | ) | | | | 10.83 | | | |
20072 | | | 10.67 | | | | | 0.38 | | | | | 0.10 | | | | | 0.48 | | | | | (0.40 | ) | | | | — | | | | | (0.40 | ) | | | | 10.75 | | | |
20063 | | | 11.12 | | | | | 0.26 | | | | | (0.37 | ) | | | | (0.11 | ) | | | | (0.27 | ) | | | | (0.07 | ) | | | | (0.34 | ) | | | | 10.67 | | | |
20054 | | | 11.24 | | | | | 0.31 | | | | | (0.09 | ) | | | | 0.22 | | | | | (0.33 | ) | | | | (0.01 | ) | | | | (0.34 | ) | | | | 11.12 | | | |
20044 | | | 11.53 | | | | | 0.29 | | | | | (0.09 | ) | | | | 0.20 | | | | | (0.32 | ) | | | | (0.17 | ) | | | | (0.49 | ) | | | | 11.24 | | | |
Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.89 | | | | $ | 0.59 | | | | $ | (0.79 | ) | | | $ | (0.20 | ) | | | $ | (0.60 | ) | | | $ | — | | | | $ | (0.60 | ) | | | $ | 10.09 | | | |
20082 | | | 10.81 | | | | | 0.49 | | | | | 0.05 | | | | | 0.54 | | | | | (0.46 | ) | | | | — | | | | | (0.46 | ) | | | | 10.89 | | | |
20072 | | | 10.73 | | | | | 0.44 | | | | | 0.09 | | | | | 0.53 | | | | | (0.45 | ) | | | | — | | | | | (0.45 | ) | | | | 10.81 | | | |
20063 | | | 11.17 | | | | | 0.31 | | | | | (0.36 | ) | | | | (0.05 | ) | | | | (0.32 | ) | | | | (0.07 | ) | | | | (0.39 | ) | | | | 10.73 | | | |
20054 | | | 11.30 | | | | | 0.38 | | | | | (0.10 | ) | | | | 0.28 | | | | | (0.40 | ) | | | | (0.01 | ) | | | | (0.41 | ) | | | | 11.17 | | | |
20044 | | | 11.56 | | | | | 0.38 | | | | | (0.10 | ) | | | | 0.28 | | | | | (0.37 | ) | | | | (0.17 | ) | | | | (0.54 | ) | | | | 11.30 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.86 | | | | $ | 0.64 | | | | $ | (0.82 | ) | | | $ | (0.18 | ) | | | $ | (0.65 | ) | | | $ | — | | | | $ | (0.65 | ) | | | $ | 10.03 | | | |
20082 | | | 10.78 | | | | | 0.54 | | | | | 0.06 | | | | | 0.60 | | | | | (0.52 | ) | | | | — | | | | | (0.52 | ) | | | | 10.86 | | | |
20072 | | | 10.70 | | | | | 0.49 | | | | | 0.10 | | | | | 0.59 | | | | | (0.51 | ) | | | | — | | | | | (0.51 | ) | | | | 10.78 | | | |
20063 | | | 11.15 | | | | | 0.35 | | | | | (0.38 | ) | | | | (0.03 | ) | | | | (0.35 | ) | | | | (0.07 | ) | | | | (0.42 | ) | | | | 10.70 | | | |
20054 | | | 11.27 | | | | | 0.42 | | | | | (0.08 | ) | | | | 0.34 | | | | | (0.45 | ) | | | | (0.01 | ) | | | | (0.46 | ) | | | | 11.15 | | | |
20044 | | | 11.56 | | | | | 0.40 | | | | | (0.08 | ) | | | | 0.32 | | | | | (0.44 | ) | | | | (0.17 | ) | | | | (0.61 | ) | | | | 11.27 | | | |
| |
| |
| | |
| | 1 | Per share data calculated using average shares outstanding method. |
| |
| | 2 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 4 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
| |
| | 6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
74 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses to
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return6 | | | Period | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.37 | )% | | | $ | 82,373 | | | | | 0.95 | % | | | | 6.34 | % | | | | 1.02 | % | | | | 6.27 | % | | | | 160 | % | | |
| | | | 5.24 | | | | | 94,571 | | | | | 0.95 | | | | | 4.63 | | | | | 1.01 | | | | | 4.57 | | | | | 131 | | | |
| | | | 5.26 | | | | | 102,723 | | | | | 0.95 | | | | | 4.25 | | | | | 1.01 | | | | | 4.19 | | | | | 137 | | | |
| | | | (0.34 | ) | | | | 134,845 | | | | | 0.95 | | | | | 3.98 | | | | | 1.03 | | | | | 3.90 | | | | | 139 | | | |
| | | | 2.75 | | | | | 161,410 | | | | | 0.95 | | | | | 3.51 | | | | | 1.05 | | | | | 3.41 | | | | | 208 | | | |
| | | | 2.60 | | | | | 184,805 | | | | | 0.95 | | | | | 3.30 | | | | | 1.05 | | | | | 3.20 | | | | | 182 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.12 | )% | | | $ | 5,780 | | | | | 1.70 | % | | | | 5.59 | % | | | | 1.77 | % | | | | 5.52 | % | | | | 160 | % | | |
| | | | 4.50 | | | | | 7,733 | | | | | 1.70 | | | | | 3.87 | | | | | 1.76 | | | | | 3.81 | | | | | 131 | | | |
| | | | 4.41 | | | | | 9,634 | | | | | 1.70 | | | | | 3.50 | | | | | 1.76 | | | | | 3.44 | | | | | 137 | | | |
| | | | (0.91 | ) | | | | 13,819 | | | | | 1.70 | | | | | 3.23 | | | | | 1.78 | | | | | 3.15 | | | | | 139 | | | |
| | | | 2.00 | | | | | 17,078 | | | | | 1.70 | | | | | 2.76 | | | | | 1.80 | | | | | 2.66 | | | | | 208 | | | |
| | | | 1.83 | | | | | 21,046 | | | | | 1.70 | | | | | 2.58 | | | | | 1.80 | | | | | 2.48 | | | | | 182 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.21 | )% | | | $ | 3,693 | | | | | 1.70 | % | | | | 5.59 | % | | | | 1.77 | % | | | | 5.52 | % | | | | 160 | % | | |
| | | | 4.57 | | | | | 4,383 | | | | | 1.70 | | | | | 3.89 | | | | | 1.76 | | | | | 3.83 | | | | | 131 | | | |
| | | | 4.48 | | | | | 4,567 | | | | | 1.70 | | | | | 3.50 | | | | | 1.76 | | | | | 3.44 | | | | | 137 | | | |
| | | | (1.01 | ) | | | | 5,183 | | | | | 1.70 | | | | | 3.22 | | | | | 1.78 | | | | | 3.14 | | | | | 139 | | | |
| | | | 1.99 | | | | | 7,266 | | | | | 1.70 | | | | | 2.76 | | | | | 1.80 | | | | | 2.66 | | | | | 208 | | | |
| | | | 1.81 | | | | | 9,132 | | | | | 1.70 | | | | | 2.58 | | | | | 1.80 | | | | | 2.48 | | | | | 182 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.43 | )% | | | $ | 406 | | | | | 1.20 | % | | | | 6.11 | % | | | | 1.27 | % | | | | 6.04 | % | | | | 160 | % | | |
| | | | 5.06 | | | | | 289 | | | | | 1.20 | | | | | 4.42 | | | | | 1.26 | | | | | 4.36 | | | | | 131 | | | |
| | | | 4.99 | | | | | 65 | | | | | 1.20 | | | | | 4.01 | | | | | 1.29 | | | | | 3.92 | | | | | 137 | | | |
| | | | (0.51 | ) | | | | 34 | | | | | 1.20 | | | | | 3.77 | | | | | 1.43 | | | | | 3.54 | | | | | 139 | | | |
| | | | 2.51 | | | | | 16 | | | | | 1.20 | | | | | 3.37 | | | | | 1.45 | | | | | 3.12 | | | | | 208 | | | |
| | | | 2.53 | | | | | 1 | | | | | 0.95 | | | | | 3.37 | | | | | 1.05 | | | | | 3.27 | | | | | 182 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1.22 | )% | | | $ | 1,279,489 | | | | | 0.70 | % | | | | 6.57 | % | | | | 0.77 | % | | | | 6.50 | % | | | | 160 | % | | |
| | | | 5.60 | | | | | 1,468,599 | | | | | 0.70 | | | | | 4.88 | | | | | 0.76 | | | | | 4.82 | | | | | 131 | | | |
| | | | 5.53 | | | | | 1,530,750 | | | | | 0.70 | | | | | 4.50 | | | | | 0.76 | | | | | 4.44 | | | | | 137 | | | |
| | | | (0.24 | ) | | | | 1,680,105 | | | | | 0.70 | | | | | 4.24 | | | | | 0.78 | | | | | 4.16 | | | | | 139 | | | |
| | | | 3.01 | | | | | 1,725,850 | | | | | 0.70 | | | | | 3.77 | | | | | 0.80 | | | | | 3.67 | | | | | 208 | | | |
| | | | 2.87 | | | | | 1,740,470 | | | | | 0.70 | | | | | 3.58 | | | | | 0.80 | | | | | 3.48 | | | | | 182 | | | |
| |
| |
First American Funds 2009 Annual Report 75
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | | | | Distributions
| | | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Distributions
| | | from
| | | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | from Net
| | | Return of
| | | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Realized Gains | | | Capital | | | | Distributions | | | Period | | |
| |
High Income Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.65 | | | | $ | 0.73 | | | | $ | (1.47 | ) | | | $ | (0.74 | ) | | | $ | (0.76 | ) | | | $ | — | | | | $ | — | | | | $ | (0.76 | ) | | | $ | 7.15 | | | |
20082 | | | 9.61 | | | | | 0.71 | | | | | (0.97 | ) | | | | (0.26 | ) | | | | (0.70 | ) | | | | — | | | | | — | | | | | (0.70 | ) | | | | 8.65 | | | |
20072 | | | 9.22 | | | | | 0.65 | | | | | 0.38 | | | | | 1.03 | | | | | (0.64 | ) | | | | — | | | | | — | | | | | (0.64 | ) | | | | 9.61 | | | |
20063 | | | 9.41 | | | | | 0.49 | | | | | (0.20 | ) | | | | 0.29 | | | | | (0.48 | ) | | | | — | | | | | — | | | | | (0.48 | ) | | | | 9.22 | | | |
20054 | | | 9.45 | | | | | 0.66 | | | | | (0.04 | ) | | | | 0.62 | | | | | (0.66 | ) | | | | — | | | | | — | 7 | | | | (0.66 | ) | | | | 9.41 | | | |
20044 | | | 9.13 | | | | | 0.68 | | | | | 0.32 | | | | | 1.00 | | | | | (0.68 | ) | | | | — | | | | | — | | | | | (0.68 | ) | | | | 9.45 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.61 | | | | $ | 0.68 | | | | $ | (1.47 | ) | | | $ | (0.79 | ) | | | $ | (0.71 | ) | | | $ | — | | | | $ | — | | | | $ | (0.71 | ) | | | $ | 7.11 | | | |
20082 | | | 9.57 | | | | | 0.63 | | | | | (0.96 | ) | | | | (0.33 | ) | | | | (0.63 | ) | | | | — | | | | | — | | | | | (0.63 | ) | | | | 8.61 | | | |
20072 | | | 9.18 | | | | | 0.57 | | | | | 0.39 | | | | | 0.96 | | | | | (0.57 | ) | | | | — | | | | | — | | | | | (0.57 | ) | | | | 9.57 | | | |
20063 | | | 9.37 | | | | | 0.43 | | | | | (0.19 | ) | | | | 0.24 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.18 | | | |
20054 | | | 9.41 | | | | | 0.58 | | | | | (0.03 | ) | | | | 0.55 | | | | | (0.59 | ) | | | | — | | | | | — | 7 | | | | (0.59 | ) | | | | 9.37 | | | |
20044 | | | 9.09 | | | | | 0.61 | | | | | 0.32 | | | | | 0.93 | | | | | (0.61 | ) | | | | — | | | | | — | | | | | (0.61 | ) | | | | 9.41 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.62 | | | | $ | 0.68 | | | | $ | (1.47 | ) | | | $ | (0.79 | ) | | | $ | (0.71 | ) | | | $ | — | | | | $ | — | | | | $ | (0.71 | ) | | | $ | 7.12 | | | |
20082 | | | 9.58 | | | | | 0.63 | | | | | (0.96 | ) | | | | (0.33 | ) | | | | (0.63 | ) | | | | — | | | | | — | | | | | (0.63 | ) | | | | 8.62 | | | |
20072 | | | 9.19 | | | | | 0.57 | | | | | 0.39 | | | | | 0.96 | | | | | (0.57 | ) | | | | — | | | | | — | | | | | (0.57 | ) | | | | 9.58 | | | |
20063 | | | 9.38 | | | | | 0.43 | | | | | (0.19 | ) | | | | 0.24 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.19 | | | |
20054 | | | 9.42 | | | | | 0.58 | | | | | (0.03 | ) | | | | 0.55 | | | | | (0.59 | ) | | | | — | | | | | — | 7 | | | | (0.59 | ) | | | | 9.38 | | | |
20044 | | | 9.10 | | | | | 0.61 | | | | | 0.32 | | | | | 0.93 | | | | | (0.61 | ) | | | | — | | | | | — | | | | | (0.61 | ) | | | | 9.42 | | | |
Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.79 | | | | $ | 0.73 | | | | $ | (1.49 | ) | | | $ | (0.76 | ) | | | $ | (0.75 | ) | | | $ | — | | | | $ | — | | | | $ | (0.75 | ) | | | $ | 7.28 | | | |
20082 | | | 9.75 | | | | | 0.69 | | | | | (0.98 | ) | | | | (0.29 | ) | | | | (0.67 | ) | | | | — | | | | | — | | | | | (0.67 | ) | | | | 8.79 | | | |
20072 | | | 9.35 | | | | | 0.62 | | | | | 0.40 | | | | | 1.02 | | | | | (0.62 | ) | | | | — | | | | | — | | | | | (0.62 | ) | | | | 9.75 | | | |
20063 | | | 9.53 | | | | | 0.49 | | | | | (0.20 | ) | | | | 0.29 | | | | | (0.47 | ) | | | | — | | | | | — | | | | | (0.47 | ) | | | | 9.35 | | | |
20054 | | | 9.60 | | | | | 0.62 | | | | | (0.04 | ) | | | | 0.58 | | | | | (0.65 | ) | | | | — | | | | | — | 7 | | | | (0.65 | ) | | | | 9.53 | | | |
20044 | | | 9.21 | | | | | 0.69 | | | | | 0.32 | | | | | 1.01 | | | | | (0.62 | ) | | | | — | | | | | — | | | | | (0.62 | ) | | | | 9.60 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.66 | | | | $ | 0.75 | | | | $ | (1.47 | ) | | | $ | (0.72 | ) | | | $ | (0.78 | ) | | | $ | — | | | | $ | — | | | | $ | (0.78 | ) | | | $ | 7.16 | | | |
20082 | | | 9.62 | | | | | 0.73 | | | | | (0.97 | ) | | | | (0.24 | ) | | | | (0.72 | ) | | | | — | | | | | — | | | | | (0.72 | ) | | | | 8.66 | | | |
20072 | | | 9.23 | | | | | 0.67 | | | | | 0.39 | | | | | 1.06 | | | | | (0.67 | ) | | | | — | | | | | — | | | | | (0.67 | ) | | | | 9.62 | | | |
20063 | | | 9.42 | | | | | 0.51 | | | | | (0.20 | ) | | | | 0.31 | | | | | (0.50 | ) | | | | — | | | | | — | | | | | (0.50 | ) | | | | 9.23 | | | |
20054 | | | 9.46 | | | | | 0.68 | | | | | (0.03 | ) | | | | 0.65 | | | | | (0.69 | ) | | | | — | | | | | — | 7 | | | | (0.69 | ) | | | | 9.42 | | | |
20044 | | | 9.13 | | | | | 0.70 | | | | | 0.34 | | | | | 1.04 | | | | | (0.71 | ) | | | | — | | | | | — | | | | | (0.71 | ) | | | | 9.46 | | | |
| |
| |
Inflation Protected Securities Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.20 | | | | $ | 0.14 | | | | $ | (0.37 | ) | | | $ | (0.23 | ) | | | $ | (0.26 | ) | | | $ | — | | | | $ | (0.12) | | | | $ | (0.38 | ) | | | $ | 9.59 | | | |
20082 | | | 9.43 | | | | | 0.54 | | | | | 0.76 | | | | | 1.30 | | | | | (0.53 | ) | | | | — | | | | | — | | | | | (0.53 | ) | | | | 10.20 | | | |
20072 | | | 9.54 | | | | | 0.39 | | | | | (0.16 | ) | | | | 0.23 | | | | | (0.34 | ) | | | | — | | | | | — | | | | | (0.34 | ) | | | | 9.43 | | | |
20063 | | | 10.12 | | | | | 0.38 | | | | | (0.55 | ) | | | | (0.17 | ) | | | | (0.40 | ) | | | | (0.01 | ) | | | | — | | | | | (0.41 | ) | | | | 9.54 | | | |
20056 | | | 10.00 | | | | | 0.51 | | | | | (0.02 | ) | | | | 0.49 | | | | | (0.37 | ) | | | | — | | | | | — | | | | | (0.37 | ) | | | | 10.12 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.18 | | | | $ | 0.11 | | | | $ | (0.43 | ) | | | $ | (0.32 | ) | | | $ | (0.21 | ) | | | $ | — | | | | $ | (0.12) | | | | $ | (0.33 | ) | | | $ | 9.53 | | | |
20082 | | | 9.41 | | | | | 0.48 | | | | | 0.75 | | | | | 1.23 | | | | | (0.46 | ) | | | | — | | | | | — | | | | | (0.46 | ) | | | | 10.18 | | | |
20072 | | | 9.53 | | | | | 0.33 | | | | | (0.18 | ) | | | | 0.15 | | | | | (0.27 | ) | | | | — | | | | | — | | | | | (0.27 | ) | | | | 9.41 | | | |
20063 | | | 10.11 | | | | | 0.31 | | | | | (0.53 | ) | | | | (0.22 | ) | | | | (0.35 | ) | | | | (0.01 | ) | | | | — | | | | | (0.36 | ) | | | | 9.53 | | | |
20056 | | | 10.00 | | | | | 0.40 | | | | | 0.02 | | | | | 0.42 | | | | | (0.31 | ) | | | | — | | | | | — | | | | | (0.31 | ) | | | | 10.11 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.20 | | | | $ | 0.13 | | | | $ | (0.39 | ) | | | $ | (0.26 | ) | | | $ | (0.24 | ) | | | $ | — | | | | $ | (0.12) | | | | $ | (0.36 | ) | | | $ | 9.58 | | | |
20082 | | | 9.43 | | | | | 0.52 | | | | | 0.75 | | | | | 1.27 | | | | | (0.50 | ) | | | | — | | | | | — | | | | | (0.50 | ) | | | | 10.20 | | | |
20072 | | | 9.55 | | | | | 0.33 | | | | | (0.13 | ) | | | | 0.20 | | | | | (0.32 | ) | | | | — | | | | | — | | | | | (0.32 | ) | | | | 9.43 | | | |
20063 | | | 10.13 | | | | | 0.38 | | | | | (0.56 | ) | | | | (0.18 | ) | | | | (0.39 | ) | | | | (0.01 | ) | | | | — | | | | | (0.40 | ) | | | | 9.55 | | | |
20056 | | | 10.00 | | | | | 0.43 | | | | | 0.05 | | | | | 0.48 | | | | | (0.35 | ) | | | | — | | | | | — | | | | | (0.35 | ) | | | | 10.13 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.20 | | | | $ | 0.23 | | | | $ | (0.45 | ) | | | $ | (0.22 | ) | | | $ | (0.27 | ) | | | $ | — | | | | $ | (0.12) | | | | $ | (0.39 | ) | | | $ | 9.59 | | | |
20082 | | | 9.43 | | | | | 0.56 | | | | | 0.76 | | | | | 1.32 | | | | | (0.55 | ) | | | | — | | | | | — | | | | | (0.55 | ) | | | | 10.20 | | | |
20072 | | | 9.55 | | | | | 0.40 | | | | | (0.16 | ) | | | | 0.24 | | | | | (0.36 | ) | | | | — | | | | | — | | | | | (0.36 | ) | | | | 9.43 | | | |
20063 | | | 10.13 | | | | | 0.42 | | | | | (0.57 | ) | | | | (0.15 | ) | | | | (0.42 | ) | | | | (0.01 | ) | | | | — | | | | | (0.43 | ) | | | | 9.55 | | | |
20056 | | | 10.00 | | | | | 0.51 | | | | | 0.01 | | | | | 0.52 | | | | | (0.39 | ) | | | | — | | | | | — | | | | | (0.39 | ) | | | | 10.13 | | | |
| |
| |
| | |
| | 1 | Per share data calculated using average shares outstanding method. |
| | 2 | For the period July 1 through June 30 in the fiscal year indicated. |
| | 3 | For the period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| | 4 | For the period October 1 through September 30 in the fiscal year indicated. |
| | 5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
| | 6 | Commenced operations on October 1, 2004. All ratios for the period ended September 30, 2005 have been annualized, except total return and portfolio turnover. |
| | 7 | Includes a tax return of capital of less than $0.01. |
| | 8 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
76 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | to Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return8 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (7.26 | )% | | | $ | 25,696 | | | | | 1.10 | % | | | | 10.79 | % | | | | 1.36 | % | | | | 10.53 | % | | | | 108 | % | | |
| | | | (2.84 | ) | | | | 24,420 | | | | | 1.10 | | | | | 7.74 | | | | | 1.31 | | | | | 7.53 | | | | | 100 | | | |
| | | | 11.46 | | | | | 28,932 | | | | | 1.10 | | | | | 6.74 | | | | | 1.30 | | | | | 6.54 | | | | | 101 | | | |
| | | | 3.14 | | | | | 29,573 | | | | | 1.10 | | | | | 6.94 | | | | | 1.29 | | | | | 6.75 | | | | | 68 | | | |
| | | | 6.74 | | | | | 34,144 | | | | | 1.02 | | | | | 6.88 | | | | | 1.27 | | | | | 6.63 | | | | | 77 | | | |
| | | | 11.30 | | | | | 43,842 | | | | | 1.00 | | | | | 7.25 | | | | | 1.26 | | | | | 6.99 | | | | | 80 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (7.99 | )% | | | $ | 2,157 | | | | | 1.85 | % | | | | 9.92 | % | | | | 2.11 | % | | | | 9.66 | % | | | | 108 | % | | |
| | | | (3.57 | ) | | | | 3,496 | | | | | 1.85 | | | | | 6.97 | | | | | 2.06 | | | | | 6.76 | | | | | 100 | | | |
| | | | 10.67 | | | | | 4,814 | | | | | 1.85 | | | | | 6.00 | | | | | 2.05 | | | | | 5.80 | | | | | 101 | | | |
| | | | 2.57 | | | | | 5,988 | | | | | 1.85 | | | | | 6.19 | | | | | 2.04 | | | | | 6.00 | | | | | 68 | | | |
| | | | 5.97 | | | | | 7,191 | | | | | 1.77 | | | | | 6.13 | | | | | 2.02 | | | | | 5.88 | | | | | 77 | | | |
| | | | 10.52 | | | | | 8,521 | | | | | 1.75 | | | | | 6.50 | | | | | 2.01 | | | | | 6.24 | | | | | 80 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (7.98 | )% | | | $ | 5,038 | | | | | 1.85 | % | | | | 9.98 | % | | | | 2.11 | % | | | | 9.72 | % | | | | 108 | % | | |
| | | | (3.57 | ) | | | | 6,490 | | | | | 1.85 | | | | | 6.97 | | | | | 2.06 | | | | | 6.76 | | | | | 100 | | | |
| | | | 10.66 | | | | | 8,522 | | | | | 1.85 | | | | | 5.98 | | | | | 2.05 | | | | | 5.78 | | | | | 101 | | | |
| | | | 2.56 | | | | | 9,873 | | | | | 1.85 | | | | | 6.19 | | | | | 2.04 | | | | | 6.00 | | | | | 68 | | | |
| | | | 5.96 | | | | | 13,403 | | | | | 1.77 | | | | | 6.13 | | | | | 2.02 | | | | | 5.88 | | | | | 77 | | | |
| | | | 10.51 | | | | | 17,349 | | | | | 1.75 | | | | | 6.50 | | | | | 2.01 | | | | | 6.24 | | | | | 80 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (7.49 | )% | | | $ | 265 | | | | | 1.35 | % | | | | 10.72 | % | | | | 1.61 | % | | | | 10.46 | % | | | | 108 | % | | |
| | | | (3.04 | ) | | | | 185 | | | | | 1.35 | | | | | 7.37 | | | | | 1.56 | | | | | 7.16 | | | | | 100 | | | |
| | | | 11.12 | | | | | 186 | | | | | 1.35 | | | | | 6.38 | | | | | 1.56 | | | | | 6.17 | | | | | 101 | | | |
| | | | 3.09 | | | | | 73 | | | | | 1.35 | | | | | 6.82 | | | | | 1.69 | | | | | 6.48 | | | | | 68 | | | |
| | | | 6.23 | | | | | 4 | | | | | 1.33 | | | | | 6.31 | | | | | 1.73 | | | | | 5.91 | | | | | 77 | | | |
| | | | 11.29 | | | | | 1 | | | | | 1.00 | | | | | 7.33 | | | | | 1.26 | | | | | 7.07 | | | | | 80 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (7.01 | )% | | | $ | 182,051 | | | | | 0.85 | % | | | | 10.93 | % | | | | 1.11 | % | | | | 10.67 | % | | | | 108 | % | | |
| | | | (2.59 | ) | | | | 204,164 | | | | | 0.85 | | | | | 7.99 | | | | | 1.06 | | | | | 7.78 | | | | | 100 | | | |
| | | | 11.73 | | | | | 232,998 | | | | | 0.85 | | | | | 6.98 | | | | | 1.05 | | | | | 6.78 | | | | | 101 | | | |
| | | | 3.34 | | | | | 205,382 | | | | | 0.85 | | | | | 7.19 | | | | | 1.04 | | | | | 7.00 | | | | | 68 | | | |
| | | | 7.01 | | | | | 207,610 | | | | | 0.77 | | | | | 7.13 | | | | | 1.02 | | | | | 6.88 | | | | | 77 | | | |
| | | | 11.69 | | | | | 234,770 | | | | | 0.75 | | | | | 7.49 | | | | | 1.01 | | | | | 7.23 | | | | | 80 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.18 | )% | | | $ | 5,439 | | | | | 0.85 | % | | | | 1.52 | % | | | | 1.10 | % | | | | 1.27 | % | | | | 24 | % | | |
| | | | 14.01 | | | | | 3,294 | | | | | 0.85 | | | | | 5.40 | | | | | 1.08 | | | | | 5.17 | | | | | 71 | | | |
| | | | 2.41 | | | | | 2,712 | | | | | 0.85 | | | | | 4.09 | | | | | 1.06 | | | | | 3.88 | | | | | 90 | | | |
| | | | (1.69 | ) | | | | 5,042 | | | | | 0.85 | | | | | 5.20 | | | | | 1.08 | | | | | 4.97 | | | | | 85 | | | |
| | | | 4.93 | | | | | 6,917 | | | | | 0.85 | | | | | 5.04 | | | | | 1.09 | | | | | 4.80 | | | | | 23 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (3.03 | )% | | | $ | 1,406 | | | | | 1.59 | % | | | | 1.19 | % | | | | 1.84 | % | | | | 0.94 | % | | | | 24 | % | | |
| | | | 13.20 | | | | | 365 | | | | | 1.60 | | | | | 4.82 | | | | | 1.83 | | | | | 4.59 | | | | | 71 | | | |
| | | | 1.53 | | | | | 348 | | | | | 1.60 | | | | | 3.44 | | | | | 1.81 | | | | | 3.23 | | | | | 90 | | | |
| | | | (2.26 | ) | | | | 552 | | | | | 1.60 | | | | | 4.29 | | | | | 1.83 | | | | | 4.06 | | | | | 85 | | | |
| | | | 4.18 | | | | | 855 | | | | | 1.60 | | | | | 3.98 | | | | | 1.84 | | | | | 3.74 | | | | | 23 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.43 | )% | | | $ | 1,262 | | | | | 1.10 | % | | | | 1.34 | % | | | | 1.35 | % | | | | 1.09 | % | | | | 24 | % | | |
| | | | 13.73 | | | | | 1,175 | | | | | 1.10 | | | | | 5.21 | | | | | 1.33 | | | | | 4.98 | | | | | 71 | | | |
| | | | 2.09 | | | | | 822 | | | | | 1.10 | | | | | 3.45 | | | | | 1.31 | | | | | 3.24 | | | | | 90 | | | |
| | | | (1.80 | ) | | | | 1 | | | | | 1.10 | | | | | 5.17 | | | | | 1.48 | | | | | 4.79 | | | | | 85 | | | |
| | | | 4.81 | | | | | 1 | | | | | 1.10 | | | | | 4.22 | | | | | 1.49 | | | | | 3.83 | | | | | 23 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (2.03 | )% | | | $ | 167,501 | | | | | 0.60 | % | | | | 2.48 | % | | | | 0.85 | % | | | | 2.23 | % | | | | 24 | % | | |
| | | | 14.29 | | | | | 278,749 | | | | | 0.60 | | | | | 5.64 | | | | | 0.83 | | | | | 5.41 | | | | | 71 | | | |
| | | | 2.56 | | | | | 273,312 | | | | | 0.60 | | | | | 4.21 | | | | | 0.81 | | | | | 4.00 | | | | | 90 | | | |
| | | | (1.50 | ) | | | | 317,977 | | | | | 0.60 | | | | | 5.73 | | | | | 0.83 | | | | | 5.50 | | | | | 85 | | | |
| | | | 5.24 | | | | | 269,412 | | | | | 0.60 | | | | | 5.05 | | | | | 0.84 | | | | | 4.81 | | | | | 23 | | | |
| |
| |
First American Funds 2009 Annual Report 77
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | Distributions
| | | Distributions
| | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | from Net
| | | from
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | Realized
| | | Return of
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Capital | | | Distributions | | | Period | | |
| |
Intermediate Government Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.42 | | | | $ | 0.19 | | | | $ | 0.25 | | | | $ | 0.44 | | | | $ | (0.19 | ) | | | $ | — | | | | $ | — | | | | $ | (0.19 | ) | | | $ | 8.67 | | | |
20082 | | | 8.00 | | | | | 0.28 | | | | | 0.43 | | | | | 0.71 | | | | | (0.29 | ) | | | | — | | | | | — | | | | | (0.29 | ) | | | | 8.42 | | | |
20072 | | | 7.99 | | | | | 0.31 | | | | | 0.06 | | | | | 0.37 | | | | | (0.33 | ) | | | | — | | | | | (0.03 | ) | | | | (0.36 | ) | | | | 8.00 | | | |
20063 | | | 8.26 | | | | | 0.22 | | | | | (0.22 | ) | | | | — | | | | | (0.22 | ) | | | | (0.05 | ) | | | | — | | | | | (0.27 | ) | | | | 7.99 | | | |
20054 | | | 8.82 | | | | | 0.27 | | | | | (0.15 | ) | | | | 0.12 | | | | | (0.28 | ) | | | | (0.40 | ) | | | | — | | | | | (0.68 | ) | | | | 8.26 | | | |
20044 | | | 10.01 | | | | | 0.24 | | | | | (0.16 | ) | | | | 0.08 | | | | | (0.24 | ) | | | | (1.03 | ) | | | | — | | | | | (1.27 | ) | | | | 8.82 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 8.42 | | | | $ | 0.21 | | | | $ | 0.25 | | | | $ | 0.46 | | | | $ | (0.21 | ) | | | $ | — | | | | $ | — | | | | $ | (0.21 | ) | | | $ | 8.67 | | | |
20082 | | | 8.00 | | | | | 0.30 | | | | | 0.42 | | | | | 0.72 | | | | | (0.30 | ) | | | | — | | | | | — | | | | | (0.30 | ) | | | | 8.42 | | | |
20072 | | | 7.99 | | | | | 0.32 | | | | | 0.06 | | | | | 0.38 | | | | | (0.34 | ) | | | | — | | | | | (0.03 | ) | | | | (0.37 | ) | | | | 8.00 | | | |
20063 | | | 8.25 | | | | | 0.22 | | | | | (0.20 | ) | | | | 0.02 | | | | | (0.23 | ) | | | | (0.05 | ) | | | | — | | | | | (0.28 | ) | | | | 7.99 | | | |
20054 | | | 8.82 | | | | | 0.28 | | | | | (0.16 | ) | | | | 0.12 | | | | | (0.29 | ) | | | | (0.40 | ) | | | | — | | | | | (0.69 | ) | | | | 8.25 | | | |
20044 | | | 10.01 | | | | | 0.26 | | | | | (0.17 | ) | | | | 0.09 | | | | | (0.25 | ) | | | | (1.03 | ) | | | | — | | | | | (1.28 | ) | | | | 8.82 | | | |
| |
| |
Intermediate Term Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.90 | | | | $ | 0.48 | | | | $ | (0.40 | ) | | | $ | 0.08 | | | | $ | (0.51 | ) | | | $ | — | | | | $ | — | | | | $ | (0.51 | ) | | | $ | 9.47 | | | |
20082 | | | 9.73 | | | | | 0.44 | | | | | 0.14 | | | | | 0.58 | | | | | (0.41 | ) | | | | — | | | | | — | | | | | (0.41 | ) | | | | 9.90 | | | |
20072 | | | 9.68 | | | | | 0.41 | | | | | 0.05 | | | | | 0.46 | | | | | (0.41 | ) | | | | — | | | | | — | | | | | (0.41 | ) | | | | 9.73 | | | |
20063 | | | 9.99 | | | | | 0.29 | | | | | (0.27 | ) | | | | 0.02 | | | | | (0.30 | ) | | | | (0.03 | ) | | | | — | | | | | (0.33 | ) | | | | 9.68 | | | |
20054 | | | 10.25 | | | | | 0.34 | | | | | (0.17 | ) | | | | 0.17 | | | | | (0.33 | ) | | | | (0.10 | ) | | | | — | | | | | (0.43 | ) | | | | 9.99 | | | |
20044 | | | 10.46 | | | | | 0.31 | | | | | (0.10 | ) | | | | 0.21 | | | | | (0.31 | ) | | | | (0.11 | ) | | | | — | | | | | (0.42 | ) | | | | 10.25 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.87 | | | | $ | 0.49 | | | | $ | (0.40 | ) | | | $ | 0.09 | | | | $ | (0.53 | ) | | | $ | — | | | | $ | — | | | | $ | (0.53 | ) | | | $ | 9.43 | | | |
20082 | | | 9.70 | | | | | 0.45 | | | | | 0.15 | | | | | 0.60 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.87 | | | |
20072 | | | 9.65 | | | | | 0.42 | | | | | 0.06 | | | | | 0.48 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.70 | | | |
20063 | | | 9.96 | | | | | 0.30 | | | | | (0.27 | ) | | | | 0.03 | | | | | (0.31 | ) | | | | (0.03 | ) | | | | — | | | | | (0.34 | ) | | | | 9.65 | | | |
20054 | | | 10.22 | | | | | 0.36 | | | | | (0.17 | ) | | | | 0.19 | | | | | (0.35 | ) | | | | (0.10 | ) | | | | — | | | | | (0.45 | ) | | | | 9.96 | | | |
20044 | | | 10.43 | | | | | 0.33 | | | | | (0.11 | ) | | | | 0.22 | | | | | (0.32 | ) | | | | (0.11 | ) | | | | — | | | | | (0.43 | ) | | | | 10.22 | | | |
| |
| |
| | |
| | 1 | Per share data calculated using average shares outstanding method. |
| |
| | 2 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 4 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 5 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
78 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | to Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return5 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.30 | % | | | $ | 10,496 | | | | | 0.75 | % | | | | 2.22 | % | | | | 1.15 | % | | | | 1.82 | % | | | | 133 | % | | |
| | | | 8.90 | | | | | 6,504 | | | | | 0.75 | | | | | 3.32 | | | | | 1.33 | | | | | 2.74 | | | | | 118 | | | |
| | | | 4.68 | | | | | 1,619 | | | | | 0.75 | | | | | 3.80 | | | | | 1.46 | | | | | 3.09 | | | | | 84 | | | |
| | | | 0.06 | | | | | 1,689 | | | | | 0.75 | | | | | 3.56 | | | | | 1.26 | | | | | 3.05 | | | | | 70 | | | |
| | | | 1.40 | | | | | 1,970 | | | | | 0.75 | | | | | 3.21 | | | | | 1.09 | | | | | 2.87 | | | | | 161 | | | |
| | | | 0.98 | | | | | 1,872 | | | | | 0.75 | | | | | 2.69 | | | | | 1.03 | | | | | 2.41 | | | | | 53 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.46 | % | | | $ | 101,253 | | | | | 0.60 | % | | | | 2.41 | % | | | | 0.90 | % | | | | 2.11 | % | | | | 133 | % | | |
| | | | 9.07 | | | | | 63,784 | | | | | 0.60 | | | | | 3.60 | | | | | 1.08 | | | | | 3.12 | | | | | 118 | | | |
| | | | 4.84 | | | | | 37,705 | | | | | 0.60 | | | | | 3.94 | | | | | 1.21 | | | | | 3.33 | | | | | 84 | | | |
| | | | 0.30 | | | | | 42,781 | | | | | 0.60 | | | | | 3.70 | | | | | 1.01 | | | | | 3.29 | | | | | 70 | | | |
| | | | 1.43 | | | | | 69,349 | | | | | 0.60 | | | | | 3.34 | | | | | 0.84 | | | | | 3.10 | | | | | 161 | | | |
| | | | 1.14 | | | | | 129,769 | | | | | 0.60 | | | | | 2.84 | | | | | 0.78 | | | | | 2.66 | | | | | 53 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.21 | % | | | $ | 23,905 | | | | | 0.85 | % | | | | 5.25 | % | | | | 1.01 | % | | | | 5.09 | % | | | | 41 | % | | |
| | | | 6.02 | | | | | 28,364 | | | | | 0.85 | | | | | 4.38 | | | | | 1.01 | | | | | 4.22 | | | | | 102 | | | |
| | | | 4.80 | | | | | 30,655 | | | | | 0.85 | | | | | 4.07 | | | | | 1.01 | | | | | 3.91 | | | | | 110 | | | |
| | | | 0.23 | | | | | 38,296 | | | | | 0.75 | | | | | 3.88 | | | | | 1.03 | | | | | 3.60 | | | | | 113 | | | |
| | | | 1.69 | | | | | 48,426 | | | | | 0.75 | | | | | 3.39 | | | | | 1.05 | | | | | 3.09 | | | | | 118 | | | |
| | | | 2.06 | | | | | 63,219 | | | | | 0.75 | | | | | 2.97 | | | | | 1.04 | | | | | 2.68 | | | | | 169 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.26 | % | | | $ | 724,531 | | | | | 0.70 | % | | | | 5.39 | % | | | | 0.76 | % | | | | 5.33 | % | | | | 41 | % | | |
| | | | 6.20 | | | | | 766,932 | | | | | 0.70 | | | | | 4.53 | | | | | 0.76 | | | | | 4.47 | | | | | 102 | | | |
| | | | 4.98 | | | | | 752,984 | | | | | 0.70 | | | | | 4.22 | | | | | 0.76 | | | | | 4.16 | | | | | 110 | | | |
| | | | 0.34 | | | | | 899,175 | | | | | 0.60 | | | | | 4.03 | | | | | 0.78 | | | | | 3.85 | | | | | 113 | | | |
| | | | 1.85 | | | | | 1,074,624 | | | | | 0.60 | | | | | 3.55 | | | | | 0.80 | | | | | 3.35 | | | | | 118 | | | |
| | | | 2.22 | | | | | 1,219,707 | | | | | 0.60 | | | | | 3.12 | | | | | 0.79 | | | | | 2.93 | | | | | 169 | | | |
| |
| |
First American Funds 2009 Annual Report 79
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | Distributions
| | | Distributions
| | | | | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | from Net
| | | from
| | | | | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | Realized
| | | Return of
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Gains | | | Capital | | | Distributions | | | Period | | |
| |
Short Term Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.89 | | | | $ | 0.46 | | | | $ | (0.26 | ) | | | $ | 0.20 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | — | | | | $ | (0.43 | ) | | | $ | 9.66 | | | |
20082 | | | 9.90 | | | | | 0.45 | | | | | (0.03 | ) | | | | 0.42 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.89 | | | |
20072 | | | 9.83 | | | | | 0.36 | | | | | 0.09 | | | | | 0.45 | | | | | (0.38 | ) | | | | — | | | | | — | | | | | (0.38 | ) | | | | 9.90 | | | |
20063 | | | 9.93 | | | | | 0.23 | | | | | (0.06 | ) | | | | 0.17 | | | | | (0.27 | ) | | | | — | | | | | — | | | | | (0.27 | ) | | | | 9.83 | | | |
20054 | | | 10.11 | | | | | 0.27 | | | | | (0.16 | ) | | | | 0.11 | | | | | (0.29 | ) | | | | — | | | | | — | 6 | | | | (0.29 | ) | | | | 9.93 | | | |
20044 | | | 10.26 | | | | | 0.23 | | | | | (0.15 | ) | | | | 0.08 | | | | | (0.23 | ) | | | | — | | | | | — | | | | | (0.23 | ) | | | | 10.11 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.89 | | | | $ | 0.48 | | | | $ | (0.25 | ) | | | $ | 0.23 | | | | $ | (0.45 | ) | | | $ | — | | | | $ | — | | | | $ | (0.45 | ) | | | $ | 9.67 | | | |
20082 | | | 9.91 | | | | | 0.46 | | | | | (0.03 | ) | | | | 0.43 | | | | | (0.45 | ) | | | | — | | | | | — | | | | | (0.45 | ) | | | | 9.89 | | | |
20072 | | | 9.83 | | | | | 0.37 | | | | | 0.10 | | | | | 0.47 | | | | | (0.39 | ) | | | | — | | | | | — | | | | | (0.39 | ) | | | | 9.91 | | | |
20063 | | | 9.93 | | | | | 0.24 | | | | | (0.06 | ) | | | | 0.18 | | | | | (0.28 | ) | | | | — | | | | | — | | | | | (0.28 | ) | | | | 9.83 | | | |
20054 | | | 10.11 | | | | | 0.28 | | | | | (0.16 | ) | | | | 0.12 | | | | | (0.29 | ) | | | | — | | | | | (0.01 | ) | | | | (0.30 | ) | | | | 9.93 | | | |
20044 | | | 10.26 | | | | | 0.25 | | | | | (0.16 | ) | | | | 0.09 | | | | | (0.24 | ) | | | | — | | | | | — | | | | | (0.24 | ) | | | | 10.11 | | | |
| |
| |
Total Return Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.90 | | | | $ | 0.64 | | | | $ | (0.74 | ) | | | $ | (0.10 | ) | | | $ | (0.63 | ) | | | $ | (0.16 | ) | | | $ | — | | | | $ | (0.79 | ) | | | $ | 9.01 | | | |
20082 | | | 9.83 | | | | | 0.49 | | | | | 0.05 | | | | | 0.54 | | | | | (0.47 | ) | | | | — | | | | | — | | | | | (0.47 | ) | | | | 9.90 | | | |
20072 | | | 9.86 | | | | | 0.45 | | | | | (0.02 | ) | | | | 0.43 | | | | | (0.46 | ) | | | | — | | | | | — | | | | | (0.46 | ) | | | | 9.83 | | | |
20063 | | | 10.18 | | | | | 0.31 | | | | | (0.33 | ) | | | | (0.02 | ) | | | | (0.30 | ) | | | | — | | | | | — | | | | | (0.30 | ) | | | | 9.86 | | | |
20054 | | | 10.25 | | | | | 0.43 | | | | | (0.07 | ) | | | | 0.36 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 10.18 | | | |
20044 | | | 10.23 | | | | | 0.46 | | | | | 0.03 | | | | | 0.49 | | | | | (0.47 | ) | | | | — | | | | | — | 6 | | | | (0.47 | ) | | | | 10.25 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.86 | | | | $ | 0.58 | | | | $ | (0.74 | ) | | | $ | (0.16 | ) | | | $ | (0.57 | ) | | | $ | (0.16 | ) | | | $ | — | | | | $ | (0.73 | ) | | | $ | 8.97 | | | |
20082 | | | 9.80 | | | | | 0.41 | | | | | 0.05 | | | | | 0.46 | | | | | (0.40 | ) | | | | — | | | | | — | | | | | (0.40 | ) | | | | 9.86 | | | |
20072 | | | 9.82 | | | | | 0.38 | | | | | (0.02 | ) | | | | 0.36 | | | | | (0.38 | ) | | | | — | | | | | — | | | | | (0.38 | ) | | | | 9.80 | | | |
20063 | | | 10.14 | | | | | 0.25 | | | | | (0.32 | ) | | | | (0.07 | ) | | | | (0.25 | ) | | | | — | | | | | — | | | | | (0.25 | ) | | | | 9.82 | | | |
20054 | | | 10.21 | | | | | 0.35 | | | | | (0.07 | ) | | | | 0.28 | | | | | (0.35 | ) | | | | — | | | | | — | | | | | (0.35 | ) | | | | 10.14 | | | |
20044 | | | 10.20 | | | | | 0.39 | | | | | 0.01 | | | | | 0.40 | | | | | (0.39 | ) | | | | — | | | | | — | 6 | | | | (0.39 | ) | | | | 10.21 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.84 | | | | $ | 0.58 | | | | $ | (0.73 | ) | | | $ | (0.15 | ) | | | $ | (0.57 | ) | | | $ | (0.16 | ) | | | $ | — | | | | $ | (0.73 | ) | | | $ | 8.96 | | | |
20082 | | | 9.78 | | | | | 0.42 | | | | | 0.04 | | | | | 0.46 | | | | | (0.40 | ) | | | | — | | | | | — | | | | | (0.40 | ) | | | | 9.84 | | | |
20072 | | | 9.80 | | | | | 0.37 | | | | | (0.01 | ) | | | | 0.36 | | | | | (0.38 | ) | | | | — | | | | | — | | | | | (0.38 | ) | | | | 9.78 | | | |
20063 | | | 10.12 | | | | | 0.25 | | | | | (0.32 | ) | | | | (0.07 | ) | | | | (0.25 | ) | | | | — | | | | | — | | | | | (0.25 | ) | | | | 9.80 | | | |
20054 | | | 10.20 | | | | | 0.35 | | | | | (0.07 | ) | | | | 0.28 | | | | | (0.36 | ) | | | | — | | | | | — | | | | | (0.36 | ) | | | | 10.12 | | | |
20044 | | | 10.18 | | | | | 0.39 | | | | | 0.02 | | | | | 0.41 | | | | | (0.39 | ) | | | | — | | | | | — | 6 | | | | (0.39 | ) | | | | 10.20 | | | |
Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.95 | | | | $ | 0.62 | | | | $ | (0.73 | ) | | | $ | (0.11 | ) | | | $ | (0.61 | ) | | | $ | (0.16 | ) | | | $ | — | | | | $ | (0.77 | ) | | | $ | 9.07 | | | |
20082 | | | 9.88 | | | | | 0.47 | | | | | 0.05 | | | | | 0.52 | | | | | (0.45 | ) | | | | — | | | | | — | | | | | (0.45 | ) | | | | 9.95 | | | |
20072 | | | 9.90 | | | | | 0.43 | | | | | (0.02 | ) | | | | 0.41 | | | | | (0.43 | ) | | | | — | | | | | — | | | | | (0.43 | ) | | | | 9.88 | | | |
20063 | | | 10.23 | | | | | 0.30 | | | | | (0.34 | ) | | | | (0.04 | ) | | | | (0.29 | ) | | | | — | | | | | — | | | | | (0.29 | ) | | | | 9.90 | | | |
20054 | | | 10.29 | | | | | 0.41 | | | | | (0.07 | ) | | | | 0.34 | | | | | (0.40 | ) | | | | — | | | | | — | | | | | (0.40 | ) | | | | 10.23 | | | |
20044 | | | 10.23 | | | | | 0.48 | | | | | — | | | | | 0.48 | | | | | (0.42 | ) | | | | — | | | | | — | 6 | | | | (0.42 | ) | | | | 10.29 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 9.89 | | | | $ | 0.66 | | | | $ | (0.73 | ) | | | $ | (0.07 | ) | | | $ | (0.65 | ) | | | $ | (0.16 | ) | | | $ | — | | | | $ | (0.81 | ) | | | $ | 9.01 | | | |
20082 | | | 9.83 | | | | | 0.52 | | | | | 0.04 | | | | | 0.56 | | | | | (0.50 | ) | | | | — | | | | | — | | | | | (0.50 | ) | | | | 9.89 | | | |
20072 | | | 9.85 | | | | | 0.47 | | | | | (0.01 | ) | | | | 0.46 | | | | | (0.48 | ) | | | | — | | | | | — | | | | | (0.48 | ) | | | | 9.83 | | | |
20063 | | | 10.17 | | | | | 0.33 | | | | | (0.33 | ) | | | | — | | | | | (0.32 | ) | | | | — | | | | | — | | | | | (0.32 | ) | | | | 9.85 | | | |
20054 | | | 10.24 | | | | | 0.46 | | | | | (0.07 | ) | | | | 0.39 | | | | | (0.46 | ) | | | | — | | | | | — | | | | | (0.46 | ) | | | | 10.17 | | | |
20044 | | | 10.23 | | | | | 0.49 | | | | | 0.01 | | | | | 0.50 | | | | | (0.49 | ) | | | | — | | | | | — | 6 | | | | (0.49 | ) | | | | 10.24 | | | |
| |
| |
| | |
| | 1 | Per share data calculated using average shares outstanding method. |
| |
| | 2 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 4 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
| |
| | 6 | Includes a tax return of capital of less than $0.01. |
| |
| | 7 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
80 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | to Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return7 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.22 | % | | | $ | 65,704 | | | | | 0.74 | % | | | | 4.87 | % | | | | 1.06 | % | | | | 4.55 | % | | | | 54 | % | | |
| | | | 4.30 | | | | | 59,933 | | | | | 0.74 | | | | | 4.48 | | | | | 1.05 | | | | | 4.17 | | | | | 55 | | | |
| | | | 4.60 | | | | | 66,722 | | | | | 0.75 | | | | | 3.61 | | | | | 1.04 | | | | | 3.32 | | | | | 47 | | | |
| | | | 1.75 | | | | | 78,771 | | | | | 0.75 | | | | | 3.11 | | | | | 1.04 | | | | | 2.82 | | | | | 60 | | | |
| | | | 1.08 | | | | | 97,863 | | | | | 0.75 | | | | | 2.68 | | | | | 1.05 | | | | | 2.38 | | | | | 64 | | | |
| | | | 0.76 | | | | | 130,531 | | | | | 0.75 | | | | | 2.28 | | | | | 1.05 | | | | | 1.98 | | | | | 89 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.48 | % | | | $ | 315,024 | | | | | 0.59 | % | | | | 5.02 | % | | | | 0.81 | % | | | | 4.80 | % | | | | 54 | % | | |
| | | | 4.35 | | | | | 257,403 | | | | | 0.59 | | | | | 4.62 | | | | | 0.80 | | | | | 4.41 | | | | | 55 | | | |
| | | | 4.86 | | | | | 311,131 | | | | | 0.60 | | | | | 3.74 | | | | | 0.79 | | | | | 3.55 | | | | | 47 | | | |
| | | | 1.87 | | | | | 454,665 | | | | | 0.60 | | | | | 3.26 | | | | | 0.79 | | | | | 3.07 | | | | | 60 | | | |
| | | | 1.23 | | | | | 625,392 | | | | | 0.60 | | | | | 2.83 | | | | | 0.80 | | | | | 2.63 | | | | | 64 | | | |
| | | | 0.91 | | | | | 943,181 | | | | | 0.60 | | | | | 2.43 | | | | | 0.80 | | | | | 2.23 | | | | | 89 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.16 | % | | | $ | 13,948 | | | | | 1.00 | % | | | | 7.58 | % | | | | 1.13 | % | | | | 7.45 | % | | | | 147 | % | | |
| | | | 5.51 | | | | | 15,567 | | | | | 0.99 | | | | | 4.87 | | | | | 1.11 | | | | | 4.75 | | | | | 124 | | | |
| | | | 4.36 | | | | | 13,198 | | | | | 1.00 | | | | | 4.48 | | | | | 1.13 | | | | | 4.35 | | | | | 180 | | | |
| | | | (0.17 | ) | | | | 15,522 | | | | | 1.00 | | | | | 4.14 | | | | | 1.17 | | | | | 3.97 | | | | | 166 | | | |
| | | | 3.57 | | | | | 19,113 | | | | | 1.00 | | | | | 4.20 | | | | | 1.25 | | | | | 3.95 | | | | | 285 | | | |
| | | | 4.89 | | | | | 21,034 | | | | | 1.00 | | | | | 4.54 | | | | | 1.25 | | | | | 4.29 | | | | | 132 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.58 | )% | | | $ | 1,719 | | | | | 1.75 | % | | | | 6.84 | % | | | | 1.88 | % | | | | 6.71 | % | | | | 147 | % | | |
| | | | 4.65 | | | | | 2,384 | | | | | 1.74 | | | | | 4.13 | | | | | 1.86 | | | | | 4.01 | | | | | 124 | | | |
| | | | 3.69 | | | | | 2,272 | | | | | 1.75 | | | | | 3.74 | | | | | 1.88 | | | | | 3.61 | | | | | 180 | | | |
| | | | (0.74 | ) | | | | 3,657 | | | | | 1.75 | | | | | 3.40 | | | | | 1.92 | | | | | 3.23 | | | | | 166 | | | |
| | | | 2.81 | | | | | 4,395 | | | | | 1.75 | | | | | 3.45 | | | | | 2.00 | | | | | 3.20 | | | | | 285 | | | |
| | | | 3.97 | | | | | 5,474 | | | | | 1.75 | | | | | 3.83 | | | | | 2.00 | | | | | 3.58 | | | | | 132 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (0.48 | )% | | | $ | 2,778 | | | | | 1.75 | % | | | | 6.77 | % | | | | 1.88 | % | | | | 6.64 | % | | | | 147 | % | | |
| | | | 4.66 | | | | | 3,673 | | | | | 1.74 | | | | | 4.22 | | | | | 1.86 | | | | | 4.10 | | | | | 124 | | | |
| | | | 3.70 | | | | | 1,792 | | | | | 1.75 | | | | | 3.73 | | | | | 1.88 | | | | | 3.60 | | | | | 180 | | | |
| | | | (0.74 | ) | | | | 2,501 | | | | | 1.75 | | | | | 3.40 | | | | | 1.92 | | | | | 3.23 | | | | | 166 | | | |
| | | | 2.71 | | | | | 2,858 | | | | | 1.75 | | | | | 3.46 | | | | | 2.00 | | | | | 3.21 | | | | | 285 | | | |
| | | | 4.11 | | | | | 3,789 | | | | | 1.75 | | | | | 3.81 | | | | | 2.00 | | | | | 3.56 | | | | | 132 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.02 | % | | | $ | 681 | | | | | 1.25 | % | | | | 7.39 | % | | | | 1.38 | % | | | | 7.26 | % | | | | 147 | % | | |
| | | | 5.22 | | | | | 293 | | | | | 1.24 | | | | | 4.66 | | | | | 1.36 | | | | | 4.54 | | | | | 124 | | | |
| | | | 4.20 | | | | | 219 | | | | | 1.25 | | | | | 4.22 | | | | | 1.44 | | | | | 4.03 | | | | | 180 | | | |
| | | | (0.44 | ) | | | | 14 | | | | | 1.25 | | | | | 4.05 | | | | | 1.57 | | | | | 3.73 | | | | | 166 | | | |
| | | | 3.40 | | | | | 3 | | | | | 1.25 | | | | | 3.98 | | | | | 1.65 | | | | | 3.58 | | | | | 285 | | | |
| | | | 4.83 | | | | | 1 | | | | | 1.00 | | | | | 4.64 | | | | | 1.25 | | | | | 4.39 | | | | | 132 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.52 | % | | | $ | 633,108 | | | | | 0.75 | % | | | | 7.77 | % | | | | 0.88 | % | | | | 7.64 | % | | | | 147 | % | | |
| | | | 5.67 | | | | | 1,069,211 | | | | | 0.74 | | | | | 5.15 | | | | | 0.86 | | | | | 5.03 | | | | | 124 | | | |
| | | | 4.73 | | | | | 851,513 | | | | | 0.75 | | | | | 4.71 | | | | | 0.88 | | | | | 4.58 | | | | | 180 | | | |
| | | | 0.02 | | | | | 378,338 | | | | | 0.75 | | | | | 4.43 | | | | | 0.92 | | | | | 4.26 | | | | | 166 | | | |
| | | | 3.83 | | | | | 278,777 | | | | | 0.75 | | | | | 4.43 | | | | | 1.00 | | | | | 4.18 | | | | | 285 | | | |
| | | | 5.05 | | | | | 243,018 | | | | | 0.75 | | | | | 4.80 | | | | | 1.00 | | | | | 4.55 | | | | | 132 | | | |
| |
| |
First American Funds 2009 Annual Report 81
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | Net Asset
| | |
| | | Value
| | | Net
| | | Gains
| | | Total from
| | | from Net
| | | Value
| | |
| | | Beginning
| | | Investment
| | | (Losses) on
| | | Investment
| | | Investment
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Period | | |
| |
U.S. Government Mortgage Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.14 | | | | $ | 0.50 | | | | $ | (0.34 | ) | | | $ | 0.16 | | | | $ | (0.52 | ) | | | $ | 9.78 | | | |
20082 | | | 10.22 | | | | | 0.47 | | | | | (0.07 | ) | | | | 0.40 | | | | | (0.48 | ) | | | | 10.14 | | | |
20072 | | | 10.18 | | | | | 0.46 | | | | | 0.05 | | | | | 0.51 | | | | | (0.47 | ) | | | | 10.22 | | | |
20063 | | | 10.53 | | | | | 0.33 | | | | | (0.32 | ) | | | | 0.01 | | | | | (0.36 | ) | | | | 10.18 | | | |
20054 | | | 10.72 | | | | | 0.41 | | | | | (0.14 | ) | | | | 0.27 | | | | | (0.46 | ) | | | | 10.53 | | | |
20044 | | | 10.89 | | | | | 0.38 | | | | | (0.09 | ) | | | | 0.29 | | | | | (0.46 | ) | | | | 10.72 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.16 | | | | $ | 0.42 | | | | $ | (0.34 | ) | | | $ | 0.08 | | | | $ | (0.44 | ) | | | $ | 9.80 | | | |
20082 | | | 10.24 | | | | | 0.40 | | | | | (0.08 | ) | | | | 0.32 | | | | | (0.40 | ) | | | | 10.16 | | | |
20072 | | | 10.20 | | | | | 0.38 | | | | | 0.05 | | | | | 0.43 | | | | | (0.39 | ) | | | | 10.24 | | | |
20063 | | | 10.54 | | | | | 0.27 | | | | | (0.31 | ) | | | | (0.04 | ) | | | | (0.30 | ) | | | | 10.20 | | | |
20054 | | | 10.74 | | | | | 0.33 | | | | | (0.15 | ) | | | | 0.18 | | | | | (0.38 | ) | | | | 10.54 | | | |
20044 | | | 10.90 | | | | | 0.30 | | | | | (0.08 | ) | | | | 0.22 | | | | | (0.38 | ) | | | | 10.74 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.10 | | | | $ | 0.42 | | | | $ | (0.33 | ) | | | $ | 0.09 | | | | $ | (0.45 | ) | | | $ | 9.74 | | | |
20082 | | | 10.18 | | | | | 0.40 | | | | | (0.08 | ) | | | | 0.32 | | | | | (0.40 | ) | | | | 10.10 | | | |
20072 | | | 10.15 | | | | | 0.38 | | | | | 0.04 | | | | | 0.42 | | | | | (0.39 | ) | | | | 10.18 | | | |
20063 | | | 10.49 | | | | | 0.27 | | | | | (0.31 | ) | | | | (0.04 | ) | | | | (0.30 | ) | | | | 10.15 | | | |
20054 | | | 10.68 | | | | | 0.33 | | | | | (0.14 | ) | | | | 0.19 | | | | | (0.38 | ) | | | | 10.49 | | | |
20044 | | | 10.84 | | | | | 0.30 | | | | | (0.09 | ) | | | | 0.21 | | | | | (0.37 | ) | | | | 10.68 | | | |
Class R5 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.12 | | | | $ | 0.47 | | | | $ | (0.34 | ) | | | $ | 0.13 | | | | $ | (0.49 | ) | | | $ | 9.76 | | | |
20082 | | | 10.21 | | | | | 0.46 | | | | | (0.10 | ) | | | | 0.36 | | | | | (0.45 | ) | | | | 10.12 | | | |
20072 | | | 10.17 | | | | | 0.43 | | | | | 0.06 | | | | | 0.49 | | | | | (0.45 | ) | | | | 10.21 | | | |
20063 | | | 10.51 | | | | | 0.31 | | | | | (0.31 | ) | | | | — | | | | | (0.34 | ) | | | | 10.17 | | | |
20054 | | | 10.72 | | | | | 0.37 | | | | | (0.14 | ) | | | | 0.23 | | | | | (0.44 | ) | | | | 10.51 | | | |
20044 | | | 10.85 | | | | | 0.39 | | | | | (0.10 | ) | | | | 0.29 | | | | | (0.42 | ) | | | | 10.72 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20092 | | $ | 10.14 | | | | $ | 0.52 | | | | $ | (0.34 | ) | | | $ | 0.18 | | | | $ | (0.54 | ) | | | $ | 9.78 | | | |
20082 | | | 10.22 | | | | | 0.50 | | | | | (0.08 | ) | | | | 0.42 | | | | | (0.50 | ) | | | | 10.14 | | | |
20072 | | | 10.19 | | | | | 0.48 | | | | | 0.05 | | | | | 0.53 | | | | | (0.50 | ) | | | | 10.22 | | | |
20063 | | | 10.53 | | | | | 0.35 | | | | | (0.31 | ) | | | | 0.04 | | | | | (0.38 | ) | | | | 10.19 | | | |
20054 | | | 10.73 | | | | | 0.43 | | | | | (0.14 | ) | | | | 0.29 | | | | | (0.49 | ) | | | | 10.53 | | | |
20044 | | | 10.89 | | | | | 0.41 | | | | | (0.08 | ) | | | | 0.33 | | | | | (0.49 | ) | | | | 10.73 | | | |
| |
| |
| | |
| | 1 | Per share data calculated using average shares outstanding method. |
| |
| | 2 | For the period July 1 to June 30 in the fiscal year indicated. |
| |
| | 3 | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. |
| |
| | 4 | For the period October 1 to September 30 in the fiscal year indicated. |
| |
| | 5 | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. |
| |
| | 6 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
82 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | to Average
| | | | | |
| | | | | | Net Assets
| | | Expenses
| | | Income
| | | Net Assets
| | | Net Assets
| | | Portfolio
| | |
| | | Total
| | | End of
| | | to Average
| | | to Average
| | | (Excluding
| | | (Excluding
| | | Turnover
| | |
| | | Return6 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.74 | % | | | $ | 10,149 | | | | | 0.95 | % | | | | 5.10 | % | | | | 1.23 | % | | | | 4.82 | % | | | | 331 | % | | |
| | | | 3.90 | | | | | 11,295 | | | | | 0.95 | | | | | 4.60 | | | | | 1.18 | | | | | 4.37 | | | | | 325 | | | |
| | | | 5.07 | | | | | 13,785 | | | | | 0.95 | | | | | 4.41 | | | | | 1.16 | | | | | 4.20 | | | | | 303 | | | |
| | | | 0.09 | | | | | 16,059 | | | | | 0.95 | | | | | 4.27 | | | | | 1.11 | | | | | 4.11 | | | | | 220 | | | |
| | | | 2.59 | | | | | 24,504 | | | | | 0.95 | | | | | 3.80 | | | | | 1.08 | | | | | 3.67 | | | | | 251 | | | |
| | | | 2.74 | | | | | 32,815 | | | | | 0.95 | | | | | 3.53 | | | | | 1.05 | | | | | 3.43 | | | | | 127 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.98 | % | | | $ | 3,014 | | | | | 1.70 | % | | | | 4.36 | % | | | | 1.98 | % | | | | 4.08 | % | | | | 331 | % | | |
| | | | 3.12 | | | | | 3,737 | | | | | 1.70 | | | | | 3.86 | | | | | 1.93 | | | | | 3.63 | | | | | 325 | | | |
| | | | 4.26 | | | | | 4,920 | | | | | 1.70 | | | | | 3.66 | | | | | 1.91 | | | | | 3.45 | | | | | 303 | | | |
| | | | (0.38 | ) | | | | 6,595 | | | | | 1.70 | | | | | 3.52 | | | | | 1.86 | | | | | 3.36 | | | | | 220 | | | |
| | | | 1.72 | | | | | 7,926 | | | | | 1.70 | | | | | 3.05 | | | | | 1.83 | | | | | 2.92 | | | | | 251 | | | |
| | | | 2.02 | | | | | 9,155 | | | | | 1.70 | | | | | 2.79 | | | | | 1.80 | | | | | 2.69 | | | | | 127 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 0.99 | % | | | $ | 2,120 | | | | | 1.70 | % | | | | 4.36 | % | | | | 1.98 | % | | | | 4.08 | % | | | | 331 | % | | |
| | | | 3.14 | | | | | 2,259 | | | | | 1.70 | | | | | 3.86 | | | | | 1.93 | | | | | 3.63 | | | | | 325 | | | |
| | | | 4.19 | | | | | 3,077 | | | | | 1.70 | | | | | 3.67 | | | | | 1.91 | | | | | 3.46 | | | | | 303 | | | |
| | | | (0.38 | ) | | | | 5,127 | | | | | 1.70 | | | | | 3.52 | | | | | 1.86 | | | | | 3.36 | | | | | 220 | | | |
| | | | 1.82 | | | | | 6,585 | | | | | 1.70 | | | | | 3.05 | | | | | 1.83 | | | | | 2.92 | | | | | 251 | | | |
| | | | 2.02 | | | | | 10,520 | | | | | 1.70 | | | | | 2.79 | | | | | 1.80 | | | | | 2.69 | | | | | 127 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.49 | % | | | $ | 2,386 | | | | | 1.20 | % | | | | 4.87 | % | | | | 1.48 | % | | | | 4.59 | % | | | | 331 | % | | |
| | | | 3.54 | | | | | 1,585 | | | | | 1.20 | | | | | 4.44 | | | | | 1.43 | | | | | 4.21 | | | | | 325 | | | |
| | | | 4.82 | | | | | 204 | | | | | 1.20 | | | | | 4.17 | | | | | 1.41 | | | | | 3.96 | | | | | 303 | | | |
| | | | 0.04 | | | | | 7 | | | | | 1.20 | | | | | 4.04 | | | | | 1.51 | | | | | 3.73 | | | | | 220 | | | |
| | | | 2.18 | | | | | 3 | | | | | 1.20 | | | | | 3.42 | | | | | 1.48 | | | | | 3.14 | | | | | 251 | | | |
| | | | 2.74 | | | | | 1 | | | | | 0.95 | | | | | 3.58 | | | | | 1.05 | | | | | 3.48 | | | | | 127 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2.00 | % | | | $ | 96,256 | | | | | 0.70 | % | | | | 5.35 | % | | | | 0.98 | % | | | | 5.07 | % | | | | 331 | % | | |
| | | | 4.16 | | | | | 123,436 | | | | | 0.70 | | | | | 4.85 | | | | | 0.93 | | | | | 4.62 | | | | | 325 | | | |
| | | | 5.23 | | | | | 133,960 | | | | | 0.70 | | | | | 4.66 | | | | | 0.91 | | | | | 4.45 | | | | | 303 | | | |
| | | | 0.38 | | | | | 140,407 | | | | | 0.70 | | | | | 4.52 | | | | | 0.86 | | | | | 4.36 | | | | | 220 | | | |
| | | | 2.75 | | | | | 158,230 | | | | | 0.70 | | | | | 4.05 | | | | | 0.83 | | | | | 3.92 | | | | | 251 | | | |
| | | | 3.09 | | | | | 171,143 | | | | | 0.70 | | | | | 3.79 | | | | | 0.80 | | | | | 3.69 | | | | | 127 | | | |
| |
| |
First American Funds 2009 Annual Report 83
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2009, FAIF offered 40 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund is a diversified open-end management investment company.
The funds may offer Class A, Class C, Class R, and Class Y shares. Class A shares of Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund are sold with a front-end sales charge of 2.25%. Class A shares of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund are sold with a front-end sales charge of 4.25%. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class C and Class R shares are not currently offered by Intermediate Government Bond Fund, Intermediate Term Bond Fund, or Short Term Bond Fund. Prior to the close of business on June 30, 2008, each fund except Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund offered Class B shares. Subsequent to this date, no new or additional investments are allowed in Class B shares, except for permitted exchanges and any reinvested dividends. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years.
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.
| |
| 2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows:
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask price will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Investments in open-end mutual funds are valued at their respective net asset values on the valuation date. Investments in closed-end mutual funds are valued at their reported closing prices on the national securities exchange on which they trade.
Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Foreign securities are valued at the closing prices on the principal exchanges on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents.
The following investment vehicles, when held by a fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, Inc. (“FAF Advisors”), on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and
84 First American Funds 2009 Annual Report
currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than foreign currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are valued at the quotations received from an independent pricing service, if available. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s exchange rate, and the 30-, 60-, 90-, 180-, and 360-day forward rates provided by an independent pricing service.
When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; security’s previous price and/or trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. Price movements in futures contracts and ADRs (American Depositary Receipts), and various other indices, may be reviewed in the course of making a good faith determination of a security’s fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2009, High Income Bond Fund held fair value securities with a value of $1,111, or 0.5%, of total net assets.
The funds adopted Statement of Financial Accounting Standard No. 157, Fair Value Measurements (“FAS 157”) and FASB Staff Position (“FSP 157-4”). FSP 157-4 clarifies FAS 157 and requires an entity to evaluate certain factors to determine whether there has been a significant decrease in volume and level of activity for the security such that recent transactions and quoted prices may not be determinative of fair value and further analysis and adjustment may be necessary to estimate fair value. The FSP also requires enhanced disclosure regarding the inputs and valuation techniques used to measure fair value in those instances as well as expanded disclosure of valuation levels for major security types. FAS 157 requires each fund to classify its securities based on valuation method, using the following three levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Other significant observable inputs (including quoted prices for similar securities, with similar interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments). Generally, the types of securities included in Level 3 of a fund are securities for which there are limited or no observable fair value inputs available, and as such the fair value is determined through independent broker quotations or management’s fair value procedures established by the funds’ board of directors.
The valuation levels are not necessarily an indication of the risk associated with investing in these investments. Industry implementation of FAS 157 level classifications continues to develop and it may be some period of time before industry practices become more uniform. For this reason, care should be exercised in interpreting this information and/or using it for comparison with other mutual funds.
As of June 30, 2009, each fund’s investments in securities were classified as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Core Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 612,390 | | | $ | 1,936 | | | $ | 614,326 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 356,832 | | | | — | | | | 356,832 | |
| Asset-Backed Securities | | | — | | | | 254,722 | | | | 25,820 | | | | 280,542 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 128,220 | | | | — | | | | 128,220 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 41,633 | | | | — | | | | 41,633 | |
| U.S. Government & Agency Securities | | | — | | | | 7,513 | | | | — | | | | 7,513 | |
| Preferred Stocks | | | 1,894 | | | | — | | | | — | | | | 1,894 | |
| Short-Term Investments | | | 226,735 | | | | 3,415 | | | | — | | | | 230,150 | |
| |
| |
| Total Investments | | $ | 228,629 | | | $ | 1,404,725 | | | $ | 27,756 | | | $ | 1,661,110 | |
| |
| |
First American Funds 2009 Annual Report 85
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| Notes toFinancial Statements | June 30, 2009, all dollars and shares are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
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| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
High Income Bond Fund | | | | | | | | | | | | | | | | |
| High Yield Corporate Bonds | | $ | — | | | $ | 162,695 | | | $ | 3,630 | | | $ | 166,325 | |
| Investment Grade Corporate Bonds | | | — | | | | 11,462 | | | | — | | | | 11,462 | |
| Convertible Securities | | | 1,537 | | | | 5,849 | | | | — | | | | 7,386 | |
| Preferred Stocks | | | 5,352 | | | | — | | | | — | | | | 5,352 | |
| Exchange-Traded Funds | | | 4,904 | | | | — | | | | — | | | | 4,904 | |
| Closed-End Funds | | | 3,482 | | | | — | | | | — | | | | 3,482 | |
| Common Stocks | | | 1,371 | | | | — | | | | — | | | | 1,371 | |
| Asset-Backed Securities | | | — | | | | 156 | | | | 1,111 | | | | 1,267 | |
| Short-Term Investments | | | 29,606 | | | | 200 | | | | — | | | | 29,806 | |
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| Total Investments | | $ | 46,252 | | | $ | 180,362 | | | $ | 4,741 | | | $ | 231,355 | |
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Inflation Protected Securities Fund | | | | | | | | | | | | | | | | |
| U.S. Government & Agency Securities | | $ | — | | | $ | 156,422 | | | $ | — | | | $ | 156,422 | |
| Asset-Backed Securities | | | — | | | | 7,339 | | | | — | | | | 7,339 | |
| Corporate Bonds | | | — | | | | 4,160 | | | | 84 | | | | 4,244 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Security | | | — | | | | 1,747 | | | | — | | | | 1,747 | |
| Municipal Bond | | | — | | | | 791 | | | | — | | | | 791 | |
| Convertible Securities | | | 240 | | | | 151 | | | | — | | | | 391 | |
| Preferred Stocks | | | 192 | | | | — | | | | — | | | | 192 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security | | | — | | | | 176 | | | | — | | | | 176 | |
| Closed-End Fund | | | 144 | | | | — | | | | — | | | | 144 | |
| Short-Term Investments | | | 57,994 | | | | 354 | | | | — | | | | 58,348 | |
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| Total Investments | | $ | 58,570 | | | $ | 171,140 | | | $ | 84 | | | $ | 229,794 | |
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Intermediate Government Bond Fund | | | | | | | | | | | | | | | | |
| U.S. Government & Agency Securities | | $ | — | | | $ | 107,541 | | | $ | — | | | $ | 107,541 | |
| Short-Term Investments | | | 4,596 | | | | — | | | | — | | | | 4,596 | |
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| Total Investments | | $ | 4,596 | | | $ | 107,541 | | | $ | — | | | $ | 112,137 | |
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Intermediate Term Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 421,799 | | | $ | — | | | $ | 421,799 | |
| Asset-Backed Securities | | | — | | | | 180,508 | | | | 12,824 | | | | 193,332 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 35,400 | | | | — | | | | 35,400 | |
| U.S. Government & Agency Securities | | | — | | | | 27,055 | | | | — | | | | 27,055 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 19,132 | | | | — | | | | 19,132 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 13,224 | | | | — | | | | 13,224 | |
| Municipal Bond | | | — | | | | 1,685 | | | | — | | | | 1,685 | |
| Preferred Stocks | | | 835 | | | | — | | | | — | | | | 835 | |
| Short-Term Investments | | | 78,351 | | | | 699 | | | | — | | | | 79,050 | |
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| Total Investments | | $ | 79,186 | | | $ | 699,502 | | | $ | 12,824 | | | $ | 791,512 | |
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Short Term Bond Fund | | | | | | | | | | | | | | | | |
| Asset-Backed Securities | | $ | — | | | $ | 128,138 | | | $ | 9,564 | | | $ | 137,702 | |
| Corporate Bonds | | | — | | | | 107,032 | | | | — | | | | 107,032 | |
| U.S. Government & Agency Securities | | | — | | | | 51,294 | | | | — | | | | 51,294 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 33,714 | | | | — | | | | 33,714 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 26,536 | | | | — | | | | 26,536 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 13,349 | | | | — | | | | 13,349 | |
| Short-Term Investments | | | 64,734 | | | | 1,138 | | | | — | | | | 65,872 | |
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| Total Investments | | $ | 64,734 | | | $ | 361,201 | | | $ | 9,564 | | | $ | 435,499 | |
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Total Return Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 381,181 | | | $ | 2,001 | | | $ | 383,182 | |
| Asset-Backed Securities | | | — | | | | 98,510 | | | | 5,667 | | | | 104,177 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 87,511 | | | | — | | | | 87,511 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 71,734 | | | | — | | | | 71,734 | |
| Preferred Stocks | | | 3,645 | | | | — | | | | — | | | | 3,645 | |
| Convertible Security | | | — | | | | 1,981 | | | | — | | | | 1,981 | |
| Municipal Bond | | | — | | | | 1,587 | | | | — | | | | 1,587 | |
| U.S. Government & Agency Security | | | — | | | | 1,584 | | | | — | | | | 1,584 | |
| Short-Term Investments | | | 86,427 | | | | 7,317 | | | | — | | | | 93,744 | |
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| Total Investments | | $ | 90,072 | | | $ | 651,405 | | | $ | 7,668 | | | $ | 749,145 | |
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86 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
U.S. Government Mortgage Fund | | | | | | | | | | | | | | | | |
| U.S. Government Agency Mortgage-Backed Securities | | $ | — | | | $ | 103,512 | | | $ | — | | | $ | 103,512 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 13,245 | | | | — | | | | 13,245 | |
| Asset-Backed Securities | | | — | | | | 10,495 | | | | — | | | | 10,495 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 825 | | | | — | | | | 825 | |
| Short-Term Investments | | | 16,896 | | | | 295 | | | | — | | | | 17,191 | |
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| Total Investments | | $ | 16,896 | | | $ | 128,372 | | | $ | — | | | $ | 145,268 | |
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As of June 30, 2009, each fund’s investments in other financial instruments* were classified as follows:
| | | | | | | | | | | | | | | | | |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| | |
| Core Bond Fund | | $ | (1,150 | ) | | $ | 1,225 | | | $ | — | | | $ | 75 | |
| High Income Bond Fund | | | (8 | ) | | | — | | | | — | | | | (8 | ) |
| Inflation Protected Securities Fund | | | 4 | | | | (143 | ) | | | — | | | | (139 | ) |
| Intermediate Term Bond Fund | | | (1,156 | ) | | | (181 | ) | | | — | | | | (1,337 | ) |
| Short Term Bond Fund | | | (181 | ) | | | (206 | ) | | | | | | | (387 | ) |
| Total Return Bond Fund | | | (1,591 | ) | | | 357 | | | | — | | | | (1,234 | ) |
| U.S. Government Mortgage Fund | | | 5 | | | | (27 | ) | | | — | | | | (22 | ) |
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| | * | Other financial instruments are derivative instruments such as futures and swaps, which are valued at the unrealized appreciation (depreciation) on the instrument. |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Inflation
| | | Intermediate
| | | Intermediate
| | | | | | | | | U.S.
| |
| | | Core
| | | High Income
| | | Protected
| | | Term
| | | Government
| | | Short Term
| | | Total Return
| | | Government
| |
| | | Bond
| | | Bond
| | | Securities
| | | Bond
| | | Bond
| | | Bond
| | | Bond
| | | Mortgage
| |
| | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | |
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| Balance as of June 30, 2008 | | $ | 36,736 | | | $ | 3,374 | | | $ | 1,275 | | | $ | 18,683 | | | | — | | | $ | 12,409 | | | $ | 8,784 | | | | — | |
| Accrued discounts/premiums | | | 4 | | | | 31 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Realized gain (loss) | | | (2,429 | ) | | | (6 | ) | | | (40 | ) | | | (133 | ) | | | — | | | | (111 | ) | | | (184 | ) | | | — | |
| Net change in unrealized appreciation or depreciation | | | (575 | ) | | | (382 | ) | | | 54 | | | | (1,424 | ) | | | — | | | | (95 | ) | | | (1,167 | ) | | | — | |
| Net purchases (sales) | | | (5,931 | ) | | | 1,548 | | | | (1,205 | ) | | | (4,302 | ) | | | — | | | | (2,639 | ) | | | 235 | | | | — | |
Transfers in and/or out of Level 3 | | | (49 | ) | | | 176 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Balance as of June 30, 2009 | | $ | 27,756 | | | $ | 4,741 | | | $ | 84 | | | $ | 12,824 | | | | — | | | $ | 9,564 | | | $ | 7,668 | | | | — | |
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| Net change in unrealized appreciation or depreciation of Level 3 securities as of June 30, 2009 | | | (3,095 | ) | | | (394 | ) | | | (1 | ) | | | (1,615 | ) | | | — | | | | (195 | ) | | | (1,233 | ) | | | — | |
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SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying cost of the security on the transaction date.
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared daily and are payable in cash or reinvested in additional shares of the fund at net asset value on the last business day of each month. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income or excise taxes is required.
As of June 30, 2009, the funds did not have any tax positions that did not meet the “more-likely-than-not” threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years.
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book-to-tax differences. These differences are primarily due to deferred wash sale and straddle losses, paydowns on pass through obligations, expiration of capital loss carryforwards, tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark-to-market adjustments under Section 311(e) of the Taxpayer Relief Act of 1997. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.
First American Funds 2009 Annual Report 87
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
On the Statements of Assets and Liabilities, the following reclassifications were made:
| | | | | | | | | | | | | |
| | | June 30, 2009 | |
| | |
| | | Accumulated
| | | Undistributed
| | | | |
| | | Net Realized
| | | Net Investment
| | | Portfolio
| |
| Fund | | Gain (Loss) | | | Income | | | Capital | |
| | |
| Core Bond Fund | | $ | 2,843 | | | $ | (2,843 | ) | | $ | — | |
| High Income Bond Fund | | | 218 | | | | (218 | ) | | | — | |
| Inflation Protected Securities Fund | | | 86 | | | | 2,687 | | | | (2,773 | ) |
| Intermediate Term Bond Fund | | | (727 | ) | | | 727 | | | | — | |
| Short Term Bond Fund | | | 1,485 | | | | (1,485 | ) | | | — | |
| Total Return Bond Fund | | | 3,582 | | | | (3,582 | ) | | | — | |
| U.S. Government Mortgage Fund | | | 61 | | | | (61 | ) | | | — | |
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The character of distributions made during the year from net investment income may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which the amounts are distributed may differ from the year that the income was recorded by the fund. The distributions paid during the fiscal years ended June 30, 2009 and June 30, 2008 (adjusted by dividends payable as of June 30, 2009 and June 30, 2008) were as follows:
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| | | June 30, 2009 | |
| | |
| | | Ordinary
| | | Long Term
| | | Return of
| | | Total
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| Fund | | Income | | | Gain | | | Capital | | | Income | |
| | |
| Core Bond Fund | | $ | 87,252 | | | $ | — | | | $ | — | | | $ | 87,252 | |
| High Income Bond Fund | | | 20,185 | | | | — | | | | — | | | | 20,185 | |
| Inflation Protected Securities Fund | | | 9,065 | | | | — | | | | 2,773 | | | | 11,838 | |
| Intermediate Government Bond Fund | | | 2,682 | | | | — | | | | — | | | | 2,682 | |
| Intermediate Term Bond Fund | | | 40,934 | | | | — | | | | — | | | | 40,934 | |
| Short Term Bond Fund | | | 14,988 | | | | — | | | | — | | | | 14,988 | |
| Total Return Bond Fund | | | 74,167 | | | | 188 | | | | — | | | | 74,355 | |
| U.S. Government Mortgage Fund | | | 6,869 | | | | — | | | | — | | | | 6,869 | |
| |
| |
| | | | | |
| | | June 30, 2008 | |
| | |
| | | Ordinary
| |
| Fund | | Income | |
| | |
| Core Bond Fund | | $ | 76,512 | |
| High Income Bond Fund | | | 19,566 | |
| Inflation Protected Securities Fund | | | 13,597 | |
| Intermediate Government Bond Fund | | | 2,075 | |
| Intermediate Term Bond Fund | | | 33,624 | |
| Short Term Bond Fund | | | 15,318 | |
| Total Return Bond Fund | | | 47,944 | |
| U.S. Government Mortgage Fund | | | 7,208 | |
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As of June 30, 2009, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Accumulated
| | | | | | Total
| |
| | | Undistributed
| | | Undistributed
| | | Capital and
| | | Unrealized
| | | Accumulated
| |
| | | Ordinary
| | | Long Term
| | | Post-October
| | | Appreciation
| | | Earnings
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| Fund | | Income | | | Capital Gains | | | Losses | | | Depreciation | | | Deficit | |
| | |
| Core Bond Fund | | $ | 5,530 | | | $ | — | | | $ | (54,556 | ) | | $ | (111,201 | ) | | $ | (160,227 | ) |
| High Income Bond Fund | | | 1,252 | | | | — | | | | (47,326 | ) | | | (22,156 | ) | | | (68,230 | ) |
| Inflation Protected Securities Fund | | | — | | | | — | | | | (14,948 | ) | | | (7,300 | ) | | | (22,248 | ) |
| Intermediate Government Bond Fund | | | 1,858 | | | | 255 | | | | — | | | | 590 | | | | 2,703 | |
| Intermediate Term Bond Fund | | | 2,541 | | | | — | | | | (22,888 | ) | | | (35,900 | ) | | | (56,247 | ) |
| Short Term Bond Fund | | | 1,016 | | | | — | | | | (17,740 | ) | | | (11,127 | ) | | | (27,851 | ) |
| Total Return Bond Fund | | | 4,845 | | | | — | | | | (79,025 | ) | | | (85,353 | ) | | | (159,533 | ) |
| U.S. Government Mortgage Fund | | | 296 | | | | — | | | | (11,796 | ) | | | (6,432 | ) | | | (17,932 | ) |
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The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and straddles, tax mark-to-market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark-to-market adjustments made under Section 311(e) of the Taxpayer Relief Act of 1997.
88 First American Funds 2009 Annual Report
As of June 30, 2009, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Expiration Year | |
| | |
| Fund | | 2010 | | | 2011 | | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | Total | |
| | |
| Core Bond Fund | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 994 | | | $ | — | | | $ | 25,107 | | | $ | 26,101 | |
| High Income Bond Fund | | | — | | | | 1,250 | | | | — | | | | — | | | | — | | | | — | | | | 1,453 | | | | 26,214 | | | | 28,917 | |
| Inflation Protected Securities Fund | | | — | | | | — | | | | — | | | | — | | | | 256 | | | | 5,928 | | | | 953 | | | | 4,724 | | | | 11,861 | |
| Intermediate Term Bond Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,607 | | | | — | | | | 11,744 | | | | 15,351 | |
| Short Term Bond Fund | | | — | | | | — | | | | — | | | | 1,315 | | | | 8,101 | | | | 7,433 | | | | — | | | | 839 | | | | 17,688 | |
| Total Return Bond Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 41,302 | | | | 41,302 | |
| U.S. Government Mortgage Fund | | | — | | | | — | | | | 3,145 | | | | 1,293 | | | | 555 | | | | 1,629 | | | | 2,446 | | | | 165 | | | | 9,233 | |
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Certain funds incurred a loss for tax purposes for the period from November 1, 2008 to June 30, 2009. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2010. The following funds had deferred losses:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 28,455 | |
| High Income Bond Fund | | | 18,409 | |
| Inflation Protected Securities Fund | | | 3,087 | |
| Intermediate Term Bond Fund | | | 7,537 | |
| Short Term Bond Fund | | | 52 | |
| Total Return Bond Fund | | | 37,723 | |
| U.S. Government Mortgage Fund | | | 2,563 | |
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DERIVATIVES – The funds adopted FASB Statement No. 161, Disclosure about Derivative Instruments and Hedging Activities (“FAS 161”), and FASB Staff Position FAS No. 133-1 and FIN 45-4, Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FAS 161 (“FAS 133-1”).
FAS 161 amends FASB Statement No. 133, Accounting for Derivatives and Hedging Activities (“FAS 133”). FAS 161 provides enhanced disclosures about the funds’ use of and accounting for derivative instruments and the effect of derivative instruments on the funds’ results of operations and financial position. Under FAS 161, tabular disclosure regarding derivative fair value and gain/loss by contract type (e.g., interest rate contracts, foreign exchange contracts, credit contracts, etc.) is required and derivatives accounted for as hedging instruments under FAS 133 must be disclosed separately from derivatives that do not qualify for hedge accounting under FAS 133. Because investment companies account for their derivatives at fair value and record any changes in fair value in current period earnings, the funds’ derivatives are not accounted for as hedging instruments under FAS 133. As such, even though the funds may use derivatives in an attempt to achieve an economic hedge, the funds’ derivatives are not considered to be hedging instruments under FAS 133.
FAS 133-1 amends FAS 133 to require sellers of credit derivatives to make disclosures that will enable financial statement users to assess the potential effects of those credit derivatives on a fund’s financial position, financial performance and cash flows. As defined by FSP FAS 133-1, a credit derivative is a derivative instrument (a) in which one or more of the derivative’s underlyings are related to the credit risk of a specified entity (or group of entities) or an index based on the credit risk of a group of entities and (b) that exposes the seller to potential loss from credit-risk-related events specified in the derivative contract. The seller (or writer) is the party that provides the credit protection and assumes the credit risk on a credit derivatives contract, such as a credit default swap. As defined under FAS 133, derivative instruments include written options, purchased options, futures contracts, forward foreign currency exchange contracts, and swap agreements.
FUTURES TRANSACTIONS – The funds are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. In order to gain exposure or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets
First American Funds 2009 Annual Report 89
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.
As of June 30, 2009, the following funds had outstanding futures contracts as disclosed in their Schedule of Investments: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund.
SWAP AGREEMENTS – The funds may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The funds may enter into credit default, interest rate, and total return swap agreements to manage exposure to credit and interest rate risk. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
Swap agreements are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap agreement is recorded as realized gain or loss in the Statements of Operations. Net periodic payments received by the funds are included as part of interest from unaffiliated investments on the Statements of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.
The funds are subject to credit risk in the normal course of pursuing their investment objectives. Each fund may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the reference entity or index. As a seller of protection on credit default swap agreements, a fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller, a fund would effectively add leverage to its portfolio because, in addition to its total net assets, a fund would be subject to investment exposure on the notional amount of the swap.
If a fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the reference entity, other deliverable obligations or underlying securities comprising the reference index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. If a fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the reference entity, other deliverable obligations or underlying securities comprising the reference index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the reference entity or underlying securities comprising the reference index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Credit default swap agreements on corporate issues or sovereign issues of an emerging country involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific reference entity. The ability to deliver other obligations may result in a cheapest-to-deliver option (the buyer of protection’s right to choose the deliverable obligation with the lowest value following a credit event). A fund may use credit default swaps on corporate issues or sovereign issues of an emerging country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where a fund owns or has exposure to the reference entity) or to take an active long or short position with respect to the likelihood of a particular issuer’s default.
Credit default swap agreements on asset-backed securities involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. Unlike credit default swaps on corporate issues or sovereign issues of an emerging country, deliverable obligations in most
90 First American Funds 2009 Annual Report
instances would be limited to the specific reference entity as performance for asset-backed securities can vary across deals. Prepayments, principal paydowns, and other writedown or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the reference entity. These reductions may be temporary or permanent as defined under the terms of the swap agreement and the notional amount for the swap agreement will be adjusted by corresponding amounts. A fund may use credit default swaps on asset-backed securities to provide a measure of protection against defaults of the reference entity or to take an active long or short position with respect to the likelihood of a particular reference entity’s default.
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. A fund may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds with a credit default swap on indices which is less expensive than it would be to buy many credit default swap to achieve a similar effect. Credit-default swap on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Schedules of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular reference entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum potential amount of future payments (undiscounted) that a fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2009 for which a fund is the seller of protection are disclosed in the footnotes to the Schedules of Investments. These potential amounts would be partially offset by any recovery values of the respective reference entity or index, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a fund for the same reference entity or entities. As of June 30, 2009, the following funds had outstanding credit default swap agreements as disclosed in their Schedule of Investments: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond Fund.
The funds are subject to interest rate risk exposure in the normal course of pursuing their investment objectives. Because the funds hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, each fund may enter into interest rate swap contracts. Interest rate swap agreements involve the exchange by a fund with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swap, under which two parties can exchange variable interest rates based on different money markets.
First American Funds 2009 Annual Report 91
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
The funds’ maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract’s remaining life, to the extent that that amount is positive. This risk is mitigated by having a master netting arrangement between the fund and the counterparty and by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty. As of June 30, 2009, the following funds had outstanding interest rate swap agreements: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund.
Certain funds may enter into total return swap agreements. Total return swap agreements on commodities involve commitments where exchanged cash flows based on the price of a commodity and in return receives either fixed or determined by floating price or rate. One party would receive payments based on the market value of the commodity involved and pay a fixed amount. Total return swap agreements on indices involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. As of June 30, 2009, no funds had outstanding total return swap agreements.
OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance returns. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When an option written expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call option is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security which is purchased upon exercise of the option. As of June 30, 2009, Total Return Bond Fund held written options.
Options purchased are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If an option purchased expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized to the extent that the proceeds from the sale are greater or less than the cost of the option. If a purchased put option is exercised, a gain or loss is realized from the sale of the underlying security by adjusting the proceeds from such sale by the amount of the premium originally paid. If a purchased call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. As of June 30, 2009, no funds held purchased options.
For the fiscal year ended June 30, 2009, the quarterly average gross notional amounts of the derivatives held by the funds were:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Credit
| | | Interest
| | | | | | | |
| | | Futures/
| | | Futures/
| | | Default
| | | Rate
| | | Options Written -
| | | Options Written -
| |
| Fund | | Long | | | Short | | | Swaps | | | Swaps | | | Call | | | Put | |
| | |
| Core Bond Fund | | $ | 173,018 | | | $ | 157,061 | | | $ | 190,841 | | | $ | 171,400 | | | $ | — | | | $ | — | |
| High Income Bond Fund | | | 30,296 | | | | 797 | | | | 6,540 | | | | — | | | | — | | | | — | |
| Inflation Protected Securities Fund | | | 33,082 | | | | 6,212 | | | | 4,200 | | | | 28,200 | | | | — | | | | — | |
| Intermediate Term Bond Fund | | | 95,803 | | | | 37,976 | | | | 69,285 | | | | 84,200 | | | | — | | | | — | |
| Short Term Bond Fund | | | 77,602 | | | | 20,665 | | | | 53,304 | | | | 28,000 | | | | — | | | | — | |
| Total Return Bond Fund | | | 747,798 | | | | 174,067 | | | | 214,631 | | | | 97,600 | | | | 104 | | | | 130 | |
| U.S. Government Mortgage Fund | | | 1,993 | | | | 15,681 | | | | 5,691 | | | | 11,600 | | | | — | | | | — | |
| |
| |
92 First American Funds 2009 Annual Report
As of June 30, 2009, the funds’ fair values of derivative instruments categorized by risk exposure were classified as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Statement of
| | | | | | | | High
| | | Inflation
| | | Intermediate
| | | Short
| | | Total
| | | U.S.
| |
| | | Assets and
| | | | | Core
| | | Income
| | | Protected
| | | Term
| | | Term
| | | Return
| | | Government
| |
| | | Liabilities
| | | | | Bond
| | | Bond
| | | Securities
| | | Bond
| | | Bond
| | | Bond
| | | Mortgage
| |
| | | Location | | | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | |
| | |
Asset Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Rate Contracts | | Receivables, Net Assets – Unrealized Appreciation* | | | | | | $ | 346 | | | | $3 | | | | $54 | | | | $— | | | $ | 38 | | | $ | 2,545 | | | $ | 10 | |
| Credit Contracts | | Receivables | | | | | | | 2,092 | | | | — | | | | — | | | | 44 | | | | 222 | | | | 497 | | | | — | |
| |
| |
| Balance as of June 30, 2009 | | | | | | | | $ | 2,438 | | | | $3 | | | | $54 | | | | $44 | | | $ | 260 | | | $ | 3,042 | | | $ | 10 | |
| |
| |
Liability Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest Rate Contracts | | Payables, Net Assets – Unrealized Depreciation* | | | | | | $ | 1,535 | | | | $11 | | | | $ 21 | | | | $1,264 | | | $ | 244 | | | $ | 1,317 | | | $ | 32 | |
| Credit Contracts | | Payables | | | | | | | 650 | | | | — | | | | 143 | | | | 117 | | | | 374 | | | | 1,726 | | | | — | |
| Foreign Exchange Contracts | | Payables | | | | | | | 178 | | | | — | | | | 29 | | | | — | | | | 29 | | | | 509 | | | | — | |
| |
| |
| Balance as of June 30, 2009 | | | | | | | | $ | 2,363 | | | | $11 | | | | $193 | | | | $1,381 | | | $ | 647 | | | $ | 3,552 | | | $ | 32 | |
| |
| |
| | |
| | * | Includes cumulative appreciation/depreciation of futures contracts as reported in the footnotes to the funds’ Schedule of Investments. Only the current day’s variation margin is reported within the Statements of Assets and Liabilities. |
The effect of derivative instruments on the Statements of Operations for the fiscal year ended June 30, 2009:
Amount of realized gain (loss) on derivatives recognized in income:
| | | | | | | | | | | | | | | | | |
| Core Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | — | | | $ | (8,490 | ) | | $ | 9,040 | | | $ | 550 | |
| Credit Contracts | | | — | | | | — | | | | (12,126 | ) | | | (12,126 | ) |
| Foreign Exchange Contracts | | | (56 | ) | | | (75 | ) | | | — | | | | (131 | ) |
| |
| |
| | | | | | | | | | | | | |
| High Income Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 1,291 | | | $ | — | | | $ | 1,291 | |
| Credit Contracts | | | — | | | | 1,530 | | | | 1,530 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| Inflation Protected Securities Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (11 | ) | | $ | 769 | | | $ | 1,667 | | | $ | 2,425 | |
| Credit Contracts | | | — | | | | — | | | | (1,000 | ) | | | (1,000 | ) |
| Foreign Exchange Contracts | | | — | | | | (201 | ) | | | — | | | | (201 | ) |
| |
| |
| | | | | | | | | | | | | |
| Intermediate Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (4,487 | ) | | $ | (2,485 | ) | | $ | (6,972 | ) |
| Credit Contracts | | | — | | | | 4,530 | | | | 4,530 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| Short Term Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | — | | | $ | 1,042 | | | $ | 2,293 | | | $ | 3,335 | |
| Credit Contracts | | | — | | | | — | | | | (935 | ) | | | (935 | ) |
| Foreign Exchange Contracts | | | (11 | ) | | | (55 | ) | | | — | | | | (66 | ) |
| |
| |
| | | | | | | | | | | | | | | | | |
| Total Return Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (188 | ) | | $ | (10,143 | ) | | $ | 7,497 | | | $ | (2,834 | ) |
| Credit Contracts | | | — | | | | — | | | | (21,641 | ) | | | (21,641 | ) |
| Foreign Exchange Contracts | | | — | | | | 301 | | | | — | | | | 301 | |
| |
| |
| | | | | | | | | | | | | |
| U.S. Government Mortgage Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (2,943 | ) | | $ | 1,159 | | | $ | (1,784 | ) |
| Credit Contracts | | | — | | | | (1,066 | ) | | | (1,066 | ) |
| |
| |
Change in unrealized appreciation (depreciation) on derivatives recognized in income:
| | | | | | | | | | | | | |
| Core Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (1,001 | ) | | $ | (419 | ) | | $ | (1,420 | ) |
| Credit Contracts | | | — | | | | 3,275 | | | | 3,275 | |
| Foreign Exchange Contracts | | | (119 | ) | | | — | | | | (119 | ) |
| |
| |
First American Funds 2009 Annual Report 93
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
| | | | | | | | | | | | | |
| High Income Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (121 | ) | | $ | — | | | $ | (121 | ) |
| Credit Contracts | | | — | | | | (242 | ) | | | (242 | ) |
| |
| |
| | | | | | | | | | | | | |
| Inflation Protected Securities Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (178 | ) | | $ | (72 | ) | | $ | (250 | ) |
| Credit Contracts | | | — | | | | (85 | ) | | | (85 | ) |
| Foreign Exchange Contracts | | | (5 | ) | | | — | | | | (5 | ) |
| |
| |
| | | | | | | | | | | | | |
| Intermediate Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (789 | ) | | $ | (186 | ) | | $ | (975 | ) |
| Credit Contracts | | | — | | | | 1,217 | | | | 1,217 | |
| |
| |
| | | | | | | | | | | | | |
| Short Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (38 | ) | | $ | (1,076 | ) | | $ | (1,114 | ) |
| Credit Contracts | | | — | | | | 849 | | | | 849 | |
| Foreign Exchange Contracts | | | (17 | ) | | | — | | | | (17 | ) |
| |
| |
| | | | | | | | | | | | | | | | | |
| Total Return Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (277 | ) | | $ | 711 | | | $ | 514 | | | $ | 948 | |
| Credit Contracts | | | — | | | | — | | | | 872 | | | | 872 | |
| Foreign Exchange Contracts | | | — | | | | 324 | | | | — | | | | 324 | |
| |
| |
| | | | | | | | | | | | | |
| U.S. Government Mortgage Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 38 | | | $ | (440 | ) | | $ | (402 | ) |
| Credit Contracts | | | — | | | | 143 | | | | 143 | |
| |
| |
INFLATION-INDEXED BONDS – The funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.
FOREIGN CURRENCY TRANSLATION – The books and records of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, and Total Return Bond Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following basis:
| | |
| | • | market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and |
| |
| | • | purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The funds do not isolate the portion of gains and losses on investments in debt securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of debt securities. The funds isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations pursuant to the federal income tax regulations. Such amounts are categorized as foreign currency gain(loss) for both financial reporting and income tax reporting purposes.
The funds report certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.
For the fiscal year ended June 30, 2009, Total Return Bond Fund had a non-U.S. dollar denominated investment with a total value of $6,516 or 1.0% of total net assets.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. As of June 30, 2009, Core Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund had when-issued or forward-commitment securities outstanding with a total cost of $100,893, $34,126, and $19,151, respectively.
94 First American Funds 2009 Annual Report
In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to “rollover” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the fiscal year ended June 30, 2009, the funds had no outstanding dollar roll transactions.
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. As of June 30, 2009, Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund had investments in illiquid securities with a total value of $19,485, $4,457, $1,529, $7,920, $4,171, $16,159, and $5,925, respectively, or 1.4%, 2.1%, 0.9%, 1.1%, 1.1%, 2.5%, and 5.2%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Core Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Amresco Residential Security Mortgage, Series 1997-3, Class A9 | | $ | 54 | | | | 10/02 | | | $ | 55 | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | | 3,165 | | | | 10/07 | | | | 2,992 | |
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | | | 4,354 | | | | 2/07 | | | | 4,233 | |
GS Mortgage Securities II, Series 2006-RR2, Class A1 | | | 4,305 | | | | 7/06 | | | | 4,224 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 791 | | | | 5/09 | | | | 159 | |
JPMorgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B | | | 2,750 | | | | 10/07 | | | | 2,659 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 3,102 | | | | 10/07 | | | | 2,960 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class B | | | 1,340 | | | | 10/07 | | | | 1,278 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class C | | | 1,270 | | | | 10/07 | | | | 1,208 | |
Residential Asset Mortgage Products, Series 2003-SL1, Class M1 | | | 7,363 | | | | 10/03 | | | | 7,764 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 4,075 | | | | 8/07 | | | | 3,920 | |
| Westam Mortgage Financial, Series 11, Class A | | | 45 | | | | 9/97 | | | | 44 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| High Income Bond Fund | | Shares/Par | | | Acquired | | | Basis | |
| | |
| American Home Mortgage Investments, Series B | | | 10 | | | | 7/07 | | | $ | 190 | |
| American Real Estate | | $ | 1,250 | | | | 4/07-3/08 | | | | 1,239 | |
| Exopack Holdings | | | 1,000 | | | | 6/08-6/09 | | | | 908 | |
Exum, Series 2007-1A, Class C | | | 1,024 | | | | 2/07-3/09 | | | | 1,024 | |
Exum, Series 2007-2A, Class C | | | 1,046 | | | | 4/07-3/09 | | | | 1,046 | |
Green Tree Financial, Series 1998-1, Class A4 | | | 6 | | | | 5/99 | | | | 6 | |
| Headwaters | | | 1,500 | | | | 7/07-2/08 | | | | 1,330 | |
| Intertape Polymer Group | | | 1,850 | | | | 4/08-5/08 | | | | 1,647 | |
| Newark Group | | | 800 | | | | 6/05 | | | | 763 | |
| Viatel Holding Bermuda | | | 1 | | | | 6/08 | | | | —* | |
| |
| |
| | |
| | * | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Inflation Protected Securities Fund | | Par | | | Acquired | | | Basis | |
| | |
| Headwaters | | $ | 280 | | | | 7/07-11/07 | | | $ | 256 | |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | 845 | | | | 6/06 | | | | 845 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 625 | | | | 8/07 | | | | 601 | |
| |
| |
First American Funds 2009 Annual Report 95
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
| | | | | | | | | | | | | |
| | | | | | Date
| | | Cost
| |
| Intermediate Term Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Amresco Residential Security Mortgage, Series 1997-3, Class A9 | | $ | 37 | | | | 10/02 | | | $ | 38 | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | | 1,470 | | | | 10/07 | | | | 1,390 | |
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | | | 2,349 | | | | 2/07 | | | | 2,284 | |
Contimortgage Home Equity Loan Trust, Series 1997-2, Class A9 | | | 29 | | | | 10/02 | | | | 30 | |
Green Tree Financial, Series 1996-9, Class A5 | | | 103 | | | | 4/00 | | | | 102 | |
GS Mortgage Securities II, Series 2006-RR2, Class A1 | | | 2,242 | | | | 7/06 | | | | 2,199 | |
JPMorgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B | | | 1,230 | | | | 10/07 | | | | 1,189 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 1,455 | | | | 10/07 | | | | 1,388 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class B | | | 630 | | | | 10/07 | | | | 601 | |
Morgan Stanely Capital I, Series 2005-HQ6, Class C | | | 590 | | | | 10/07 | | | | 561 | |
Salomon Brothers Mortgage Securities, Series 1986-1, Class A | | | 6 | | | | 8/97 | | | | 6 | |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | 1,800 | | | | 6/06 | | | | 1,800 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 1,920 | | | | 8/07 | | | | 1,847 | |
| Westam Mortgage Financial, Series 11, Class A | | | 26 | | | | 11/97 | | | | 27 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Date
| | | Cost
| |
| Short Term Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | | $ | 1,242 | | | | 2/07 | | | $ | 1,207 | |
Equivantage Home Equity Loan Trust, Series 1996-1, Class A | | | 30 | | | | 2/99 | | | | 30 | |
Equivantage Home Equity Loan Trust, Series 1996-4, Class A | | | 198 | | | | 1/00 | | | | 194 | |
GSR Mortgage Loan Trust, Series 2005-AR1, Class B1 | | | 1,991 | | | | 5/06 | | | | 1,930 | |
IMC Home Equity Loan Trust, Series 1998-3, Class A7 | | | 1,386 | | | | 10/02 | | | | 1,457 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 1,855 | | | | 8/07 | | | | 1,784 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Date
| | | Cost
| |
| Total Return Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | $ | 1,780 | | | | 10/07 | | | $ | 1,683 | |
Commercial Mortgage Pass-Through Certificates, Series 2004-RS1, Class A | | | 2,184 | | | | 2/07 | | | | 2,124 | |
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | | | 149 | | | | 5/01 | | | | 149 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 2,807 | | | | 12/06 | | | | 2,909 | |
GSR Mortgage Loan Trust, Series 2005-4F, Class B1 | | | 2,235 | | | | 5/06 | | | | 2,122 | |
GSR Mortgage Loan Trust, Series 2005-AR1, Class B1 | | | 2,036 | | | | 5/06 | | | | 1,974 | |
GS Mortgage Securities II, Series 2006-RR2, Class A1 | | | 1,513 | | | | 7/06 | | | | 1,484 | |
| Headwaters | | | 1,925 | | | | 7/07-2/08 | | | | 1,697 | |
Impac Secured Assets, Series 2000-3, Class M1 | | | 2,583 | | | | 3/08 | | | | 2,190 | |
JPMorgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B | | | 1,490 | | | | 10/07 | | | | 1,441 | |
| LG Electronics | | | 785 | | | | 6/05 | | | | 781 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 1,730 | | | | 10/07 | | | | 1,651 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class B | | | 745 | | | | 10/07 | | | | 711 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class C | | | 705 | | | | 10/07 | | | | 671 | |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | 1,695 | | | | 6/06 | | | | 1,695 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 2,150 | | | | 8/07 | | | | 2,068 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Date
| | | Cost
| |
| U.S. Government Mortgage Fund | | Par | | | Acquired | | | Basis | |
| | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | $ | 285 | | | | 10/07 | | | $ | 269 | |
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | | | 50 | | | | 9/02 | | | | 51 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 930 | | | | 12/06 | | | | 964 | |
GSR Mortgage Loan Trust, Series 2005-4F, Class B1 | | | 1,341 | | | | 5/06 | | | | 1,273 | |
Impac Secured Assets, Series 2000-3, Class 1A1 | | | 444 | | | | 3/08 | | | | 376 | |
JPMorgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class B | | | 255 | | | | 10/07 | | | | 247 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 285 | | | | 10/07 | | | | 272 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class B | | | 120 | | | | 10/07 | | | | 114 | |
Morgan Stanley Capital I, Series 2005-HQ6, Class C | | | 110 | | | | 10/07 | | | | 105 | |
Residential Accredit Loans, Series 2003-QS12, Class M1 | | | 753 | | | | 11/05 | | | | 734 | |
Residential Asset Mortgage Products, Series 2003-SL1, Class M1 | | | 2,408 | | | | 10/03 | | | | 2,539 | |
Washington Mutual MSC Mortgage, Series 2003-MS9, Class CB-1 | | | 1,370 | | | | 11/03 | | | | 1,459 | |
Washington Mutual Master Note Trust, Series 2007-C1, Class C1 | | | 375 | | | | 8/07 | | | | 361 | |
| |
| |
SECURITIES LENDING – In order to generate additional income, each fund may lend securities representing up to
96 First American Funds 2009 Annual Report
one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to receive collateral from the borrower in the form of cash, U.S. government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. If the value of the securities on loan increases, additional collateral is received from the borrower. As with other extensions or credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. U.S. Bank National Association (“U.S. Bank”), the parent company of the funds’ advisor, serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. U.S. Bank acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in, an exemptive order issued by the Securities and Exchange Commission (“SEC”). U.S. Bank receives fees as a percentage of each fund’s net income from securities lending transactions. Collateral for securities on loan is invested in a money market fund administered by FAF Advisors and FAF Advisors receives an administration fee equal to 0.02% of such fund’s average daily net assets in this money market fund. Securities lending fees paid to U.S. Bank by the funds during the fiscal year ended June 30, 2009, were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 239 | |
| High Income Bond Fund | | | 51 | |
| Inflation Protected Securities Fund | | | 249 | |
| Intermediate Term Bond Fund | | | 82 | |
| Short Term Bond Fund | | | 39 | |
| Total Return Bond Fund | | | 96 | |
| U.S. Government Mortgage Fund | | | 16 | |
| |
| |
Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to U.S. Bank.
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended June 30, 2009.
DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.
EVENTS SUBSEQUENT TO FISCAL YEAR END – Management has evaluated fund related events and transactions that occurred subsequent to June 30, 2009, through August 21, 2009, the date of issuance of the funds’ financial statements. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the funds’ financial statements.
INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is as follows:
| | | | | | | |
| Fund | | | | | |
| |
| Core Bond Fund | | | 0.50 | % | | |
| High Income Bond Fund | | | 0.70 | | | |
| Inflation Protected Securities Fund | | | 0.50 | | | |
| Intermediate Government Bond Fund | | | 0.50 | | | |
| Intermediate Term Bond Fund | | | 0.50 | | | |
| Short Term Bond Fund | | | 0.50 | | | |
| Total Return Bond Fund | | | 0.60 | | | |
| U.S. Government Mortgage Fund | | | 0.50 | | | |
| |
| |
First American Funds 2009 Annual Report 97
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2010, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Share Class | | | |
| |
| Fund | | A | | | B | | | C | | | R | | | Y | | | |
| |
| Core Bond Fund | | | 0.95 | % | | | 1.70 | % | | | 1.70 | % | | | 1.20 | % | | | 0.70 | % | | |
| High Income Bond Fund | | | 1.10 | | | | 1.85 | | | | 1.85 | | | | 1.35 | | | | 0.85 | | | |
| Inflation Protected Securities Fund | | | 0.85 | | | | NA | | | | 1.60 | | | | 1.10 | | | | 0.60 | | | |
| Intermediate Government Bond Fund | | | 0.75 | | | | NA | | | | NA | | | | NA | | | | 0.60 | | | |
| Intermediate Term Bond Fund | | | 0.85 | | | | NA | | | | NA | | | | NA | | | | 0.70 | | | |
| Short Term Bond Fund | | | 0.75 | | | | NA | | | | NA | | | | NA | | | | 0.60 | | | |
| Total Return Bond Fund | | | 1.00 | | | | 1.75 | | | | 1.75 | | | | 1.25 | | | | 0.75 | | | |
| U.S. Government Mortgage Fund | | | 0.95 | | | | 1.70 | | | | 1.70 | | | | 1.20 | | | | 0.70 | | | |
| |
| |
NA = Not Applicable
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. This reimbursement, if any, is included in “Fee waivers” in the Statements of Operations.
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank. Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight, administrative, and accounting services. The funds pay FAF Advisors administration fees, which are calculated daily and paid monthly, equal to each fund’s pro rata share of an amount equal, on a annual basis, to 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the custodian for each fund pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. All fees are computed daily and paid monthly.
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.
For the fiscal year ended June 30, 2009, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned as follows:
| | | | | | | | | |
| Fund | | Increased | | | Decreased | |
| | |
| Core Bond Fund | | $ | — | | | $ | 3 | |
| High Income Bond Fund | | | — | | | | — | |
| Inflation Protected Securities Fund | | | — | | | | — | |
| Intermediate Government Bond Fund | | | — | | | | — | |
| Intermediate Term Bond Fund | | | 1 | | | | 3 | |
| Short Term Bond Fund | | | — | | | | 2 | |
| Total Return Bond Fund | | | — | | | | 4 | |
| U.S. Government Mortgage Fund | | | — | | | | — | |
| |
| |
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00%, and 0.50% of each fund’s average daily net assets of the Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Quasar is currently waiving a portion of its 12b-1 fees for Class A shares, limiting its fees to 0.15% of average daily net assets for Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund.
For the fiscal year ended June 30, 2009, total distribution and shareholder servicing fees waived by Quasar for the funds included in this semiannual report were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Intermediate Government Bond Fund | | $ | 12 | |
| Intermediate Term Bond Fund | | | 24 | |
| Short Term Bond Fund | | | 56 | |
| |
| |
98 First American Funds 2009 Annual Report
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2009:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 130 | |
| High Income Bond Fund | | | 24 | |
| Inflation Protected Securities Fund | | | 10 | |
| Intermediate Government Bond Fund | | | 4 | |
| Intermediate Term Bond Fund | | | 19 | |
| Short Term Bond Fund | | | 42 | |
| Total Return Bond Fund | | | 40 | |
| U.S. Government Mortgage Fund | | | 29 | |
| |
| |
OTHER FEES AND EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal year ended June 30, 2009, legal fees and expenses of $41 were paid to a law firm of which an Assistant Secretary of the funds is a partner.
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in the Class B shares. The CDSC varies depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares. Class B shares automatically convert to Class A shares after eight years.
| | | | | | | |
| | | CDSC as a Percentage
| | | |
| | | of Dollar Amount
| | | |
| Year Since Purchase | | Subject to Charge | | | |
| |
| First | | | 5.00 | % | | |
| Second | | | 5.00 | | | |
| Third | | | 4.00 | | | |
| Fourth | | | 3.00 | | | |
| Fifth | | | 2.00 | | | |
| Sixth | | | 1.00 | | | |
| Seventh | | | — | | | |
| Eighth | | | — | | | |
| |
| |
A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first 12 months.
The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less.
For the fiscal year ended June 30, 2009, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 47 | |
| High Income Bond Fund | | | 17 | |
| Inflation Protected Securities Fund | | | 12 | |
| Intermediate Government Bond Fund | | | 3 | |
| Intermediate Term Bond Fund | | | 10 | |
| Short Term Bond Fund | | | 132 | |
| Total Return Bond Fund | | | 18 | |
| U.S. Government Mortgage Fund | | | 27 | |
| |
| |
First American Funds 2009 Annual Report 99
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
| |
| 4 > | Capital Share Transactions |
FAIF has 370 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Core
| | | | High Income
| | | | Inflation Protected
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Securities Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,052 | | | | 926 | | | | | 2,674 | | | | 1,519 | | | | | 345 | | | | 93 | | | |
| Shares issued in lieu of cash distributions | | | 415 | | | | 314 | | | | | 238 | | | | 152 | | | | | 12 | | | | 11 | | | |
| Shares redeemed | | | (1,968 | ) | | | (2,057 | ) | | | | (2,143 | ) | | | (1,857 | ) | | | | (113 | ) | | | (69 | ) | | |
| |
| |
Total Class A transactions | | | (501 | ) | | | (817 | ) | | | | 769 | | | | (186 | ) | | | | 244 | | | | 35 | | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 40 | | | | 58 | | | | | 19 | | | | 19 | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 35 | | | | 27 | | | | | 24 | | | | 18 | | | | | — | | | | — | | | |
| Shares redeemed | | | (212 | ) | | | (267 | ) | | | | (146 | ) | | | (134 | ) | | | | — | | | | — | | | |
| |
| |
Total Class B transactions | | | (137 | ) | | | (182 | ) | | | | (103 | ) | | | (97 | ) | | | | — | | | | — | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 100 | | | | 75 | | | | | 76 | | | | 96 | | | | | 141 | | | | 24 | | | |
| Shares issued in lieu of cash distributions | | | 18 | | | | 13 | | | | | 41 | | | | 29 | | | | | 1 | | | | 1 | | | |
| Shares redeemed | | | (154 | ) | | | (108 | ) | | | | (162 | ) | | | (262 | ) | | | | (31 | ) | | | (26 | ) | | |
| |
| |
Total Class C transactions | | | (36 | ) | | | (20 | ) | | | | (45 | ) | | | (137 | ) | | | | 111 | | | | (1 | ) | | |
| |
| |
| Class R: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 16 | | | | 31 | | | | | 15 | | | | 25 | | | | | 34 | | | | 39 | | | |
| Shares issued in lieu of cash distributions | | | 2 | | | | 1 | | | | | 1 | | | | 1 | | | | | 5 | | | | 5 | | | |
| Shares redeemed | | | (4 | ) | | | (12 | ) | | | | (1 | ) | | | (24 | ) | | | | (22 | ) | | | (16 | ) | | |
| |
| |
Total Class R transactions | | | 14 | | | | 20 | | | | | 15 | | | | 2 | | | | | 17 | | | | 28 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 50,362 | | | | 26,213 | | | | | 9,209 | | | | 4,262 | | | | | 4,880 | | | | 11,776 | | | |
| Shares issued in lieu of cash distributions | | | 2,469 | | | | 1,781 | | | | | 259 | | | | 202 | | | | | 224 | | | | 300 | | | |
| Shares redeemed | | | (60,581 | ) | | | (34,706 | ) | | | | (7,617 | ) | | | (5,096 | ) | | | | (14,964 | ) | | | (13,737 | ) | | |
| |
| |
Total Class Y transactions | | | (7,750 | ) | | | (6,712 | ) | | | | 1,851 | | | | (632 | ) | | | | (9,860 | ) | | | (1,661 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | (8,410 | ) | | | (7,711 | ) | | | | 2,487 | | | | (1,050 | ) | | | | (9,488 | ) | | | (1,599 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,743 | | | | 713 | | | | | 346 | | | | 421 | | | | | 1,786 | | | | 202 | | | |
| Shares issued in lieu of cash distributions | | | 24 | | | | 17 | | | | | 120 | | | | 101 | | | | | 205 | | | | 209 | | | |
| Shares redeemed | | | (1,330 | ) | | | (159 | ) | | | | (806 | ) | | | (808 | ) | | | | (1,253 | ) | | | (1,088 | ) | | |
| |
| |
Total Class A transactions | | | 437 | | | | 571 | | | | | (340 | ) | | | (286 | ) | | | | 738 | | | | (677 | ) | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 12,740 | | | | 5,221 | | | | | 21,980 | | | | 18,514 | | | | | 14,211 | | | | 2,014 | | | |
| Shares issued in lieu of cash distributions | | | 155 | | | | 130 | | | | | 1,202 | | | | 1,058 | | | | | 398 | | | | 2,093 | | | |
| Shares redeemed | | | (8,797 | ) | | | (2,484 | ) | | | | (24,094 | ) | | | (19,495 | ) | | | | (8,043 | ) | | | (10,889 | ) | | |
| |
| |
Total Class Y transactions | | | 4,098 | | | | 2,867 | | | | | (912 | ) | | | 77 | | | | | 6,566 | | | | (6,782 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 4,535 | | | | 3,438 | | | | | (1,252 | ) | | | (209 | ) | | | | 7,304 | | | | (7,459 | ) | | |
| |
| |
100 First American Funds 2009 Annual Report
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Total Return
| | | | U.S. Government
| | | |
| | | Bond Fund | | | | Mortgage Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/09 | | | 6/30/08 | | | | 6/30/09 | | | 6/30/08 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 468 | | | | 655 | | | | | 221 | | | | 76 | | | |
| Shares issued in lieu of cash distributions | | | 112 | | | | 55 | | | | | 46 | | | | 48 | | | |
| Shares redeemed | | | (605 | ) | | | (480 | ) | | | | (343 | ) | | | (359 | ) | | |
| |
| |
Total Class A transactions | | | (25 | ) | | | 230 | | | | | (76 | ) | | | (235 | ) | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 26 | | | | 67 | | | | | 12 | | | | 15 | | | |
| Shares issued in lieu of cash distributions | | | 16 | | | | 6 | | | | | 13 | | | | 14 | | | |
| Shares redeemed | | | (92 | ) | | | (63 | ) | | | | (85 | ) | | | (141 | ) | | |
| |
| |
Total Class B transactions | | | (50 | ) | | | 10 | | | | | (60 | ) | | | (112 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 138 | | | | 224 | | | | | 45 | | | | 14 | | | |
| Shares issued in lieu of cash distributions | | | 20 | | | | 8 | | | | | 8 | | | | 8 | | | |
| Shares redeemed | | | (221 | ) | | | (42 | ) | | | | (59 | ) | | | (100 | ) | | |
| |
| |
Total Class C transactions | | | (63 | ) | | | 190 | | | | | (6 | ) | | | (78 | ) | | |
| |
| |
| Class R: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 56 | | | | 19 | | | | | 194 | | | | 164 | | | |
| Shares issued in lieu of cash distributions | | | 4 | | | | 1 | | | | | 10 | | | | 3 | | | |
| Shares redeemed | | | (14 | ) | | | (13 | ) | | | | (117 | ) | | | (30 | ) | | |
| |
| |
Total Class R transactions | | | 46 | | | | 7 | | | | | 87 | | | | 137 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 34,364 | | | | 43,763 | | | | | 1,376 | | | | 2,582 | | | |
| Shares issued in lieu of cash distributions | | | 2,723 | | | | 1,695 | | | | | 114 | | | | 126 | | | |
| Shares redeemed | | | (74,865 | ) | | | (24,057 | ) | | | | (3,824 | ) | | | (3,637 | ) | | |
| |
| |
Total Class Y transactions | | | (37,778 | ) | | | 21,401 | | | | | (2,334 | ) | | | (929 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | (37,870 | ) | | | 21,838 | | | | | (2,389 | ) | | | (1,217 | ) | | |
| |
| |
Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash. Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal years ended June 30, 2009 and June 30, 2008, were as follows:
| | | | | | | | | |
| | | Year
| | | Year
| |
| | | Ended
| | | Ended
| |
| Fund | | 6/30/09 | | | 6/30/08 | |
| | |
| Core Bond Fund | | | 63 | | | | 66 | |
| High Income Bond Fund | | | 26 | | | | 8 | |
| Total Return Bond Fund | | | 16 | | | | 7 | |
| U.S. Government Mortgage Fund | | | 1 | | | | 7 | |
| |
| |
| |
| 5 > | Investment Security Transactions |
During the fiscal year ended June 30, 2009, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:
| | | | | | | | | | | | | | | | | |
| | | U.S. Government
| | | Other Investment
| |
| | | Securities | | | Securities | |
| Fund | | Purchases | | | Sales | | | Purchases | | | Sales | |
| | |
| Core Bond Fund | | $ | 1,766,000 | | | $ | 1,920,318 | | | $ | 438,657 | | | $ | 429,829 | |
| High Income Bond Fund | | | — | | | | — | | | | 198,947 | | | | 184,961 | |
| Inflation Protected Securities Fund | | | 48,917 | | | | 133,625 | | | | 2,864 | | | | 10,251 | |
| Intermediate Government Bond Fund | | | 183,433 | | | | 146,273 | | | | — | | | | — | |
| Intermediate Term Bond Fund | | | 61,656 | | | | 106,391 | | | | 235,733 | | | | 238,106 | |
| Short Term Bond Fund | | | 71,451 | | | | 24,424 | | | | 176,825 | | | | 141,282 | |
| Total Return Bond Fund | | | 887,398 | | | | 1,075,434 | | | | 287,666 | | | | 443,568 | |
| U.S. Government Mortgage Fund | | | 487,864 | | | | 517,156 | | | | 4,717 | | | | 15,980 | |
| |
| |
Transactions in options written for the fiscal year ended June 30, 2009, were as follows:
| | | | | | | | | | | | | | | | | |
| | | Put Options Written | | | Call Options Written | |
| | | Number of
| | | Premium
| | | Number of
| | | Premium
| |
| Core Bond Fund | | Contracts | | | Amount | | | Contracts | | | Amount | |
| | |
| Balance at June 30, 2008 | | | — | | | $ | — | | | | — | | | $ | — | |
| Opened | | | — | | | | — | | | | 195 | | | | 164 | |
| Expired | | | — | | | | — | | | | — | | | | — | |
| Closed | | | — | | | | — | | | | (195 | ) | | | (164 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at June 30, 2009 | | | — | | | $ | — | | | | — | | | $ | — | |
| |
| |
| | | | | | | | | | | | | | | | | |
| | | Put Options Written | | | Call Options Written | |
| | | Number of
| | | Premium
| | | Number of
| | | Premium
| |
| Inflation Protected Securities Fund | | Contracts | | | Amount | | | Contracts | | | Amount | |
| | |
| Balance at June 30, 2008 | | | — | | | $ | — | | | | — | | | $ | — | |
| Opened | | | — | | | | — | | | | 37 | | | | 31 | |
| Expired | | | — | | | | — | | | | — | | | | — | |
| Closed | | | — | | | | — | | | | (37 | ) | | | (31 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at June 30, 2009 | | | — | | | $ | — | | | | — | | | $ | — | |
| |
| |
| | | | | | | | | | | | | | | | | |
| | | Put Options Written | | | Call Options Written | |
| | | Number of
| | | Premium
| | | Number of
| | | Premium
| |
| Short-Term Bond Fund | | Contracts | | | Amount | | | Contracts | | | Amount | |
| | |
| Balance at June 30, 2008 | | | — | | | $ | — | | | | — | | | $ | — | |
| Opened | | | — | | | | — | | | | 38 | | | | 32 | |
| Expired | | | — | | | | — | | | | — | | | | — | |
| Closed | | | — | | | | — | | | | (38 | ) | | | (32 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at June 30, 2009 | | | — | | | $ | — | | | | — | | | $ | — | |
| |
| |
First American Funds 2009 Annual Report 101
Notes toFinancial Statements June 30, 2009, all dollars and shares are rounded to thousands (000)
| | | | | | | | | | | | | | | | | |
| | | Put Options Written | | | Call Options Written | |
| | | Number of
| | | Premium
| | | Number of
| | | Premium
| |
| Total Return Bond Fund | | Contracts | | | Amount | | | Contracts | | | Amount | |
| | |
| Balance at June 30, 2008 | | | 537 | | | $ | 384 | | | | 895 | | | $ | 470 | |
| Opened | | | 1,337 | | | | 868 | | | | 2,015 | | | | 1,149 | |
| Expired | | | — | | | | — | | | | (135 | ) | | | (21 | ) |
| Closed | | | (1,125 | ) | | | (681 | ) | | | (2,163 | ) | | | (1,269 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at June 30, 2009 | | | 749 | | | $ | 571 | | | | 612 | | | $ | 329 | |
| |
| |
| |
| 7 > | Concentration of Risks |
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond Fund invest in lower-rated (e.g., rated Ba or lower by Moody’s or BB or lower by Standard & Poor’s or Fitch) corporate and foreign debt obligations, which are commonly referred to as “junk bonds.” Lower-rated securities will usually offer higher yields than higher-rated securities. However, there is more risk associated with these investments. These lower-rated bonds may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. Lower-rated securities tend to have more price volatility and carry more risk to principal than higher-rated securities.
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
102 First American Funds 2009 Annual Report
TAX INFORMATION
The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2010 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2009, each fund has designated long term capital gains, ordinary income, and return of capital with regard to distributions paid during the period as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | Long Term
| | | Ordinary
| | | | | | | | | | | |
| | | Capital Gains
| | | Income
| | | Return of
| | | Total
| | | | | |
| | | Distributions
| | | Distributions
| | | Capital
| | | Distributions
| | | | | |
| Fund | | (Tax Basis) (a) | | | (Tax Basis) (a) | | | (Tax Basis) (a) | | | (Tax Basis) (b) | | | | | |
| |
| Core Bond Fund | | | 0.0 | % | | | 100.0 | % | | | 0.0 | % | | | 100.0 | % | | | | |
| High Income Bond Fund | | | 0.0 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | | | |
| Inflation Protected Securities Fund | | | 0.0 | | | | 76.6 | | | | 23.4 | | | | 100.0 | | | | | |
| Intermediate Government Bond Fund | | | 0.0 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | | | |
| Intermediate Term Bond Fund | | | 0.0 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | | | |
| Short Term Bond Fund | | | 0.0 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | | | |
| Total Return Bond Fund | | | 0.3 | | | | 99.7 | | | | 0.0 | | | | 100.0 | | | | | |
| U.S. Government Mortgage Fund | | | 0.0 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | | | |
| |
| |
| | |
| | (a) | Based on a percentage of the fund’s total distributions. |
| |
| | (b) | Except as noted below, none of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Shareholder Notification of Federal Tax Status:
The percentage of dividends declared during the fiscal year ended June 30, 2009, that are designated as dividends qualifying for the dividends received deduction available to corporate shareholders were as follows:
| | | | | | | |
| |
| |
| High Income Bond Fund | | | 4.91 | % | | |
| |
| |
The percentage of dividends declared from net investment income during the fiscal year ended June 30, 2009, as qualified income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003 were as follows:
| | | | | | | |
| |
| |
| High Income Bond Fund | | | 7.24 | % | | |
| Inflation Protected Securities Fund | | | 1.07 | | | |
| Total Return Bond Fund | | | 1.04 | | | |
| |
| |
Additional Information Applicable to Foreign Shareholders Only:
The percentage of taxable ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund were as follows:
| | | | | | | | | |
| |
| |
| Core Bond Fund | | | 96.45 | % | | | | |
| High Income Bond Fund | | | 95.11 | | | | | |
| Inflation Protected Securities Fund | | | 99.02 | | | | | |
| Intermediate Government Bond Fund | | | 91.43 | | | | | |
| Intermediate Term Bond Fund | | | 99.40 | | | | | |
| Short Term Bond Fund | | | 100.00 | | | | | |
| Total Return Bond Fund | | | 91.29 | | | | | |
| U.S. Government Mortgage Fund | | | 100.00 | | | | | |
| |
| |
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund were as follows:
First American Funds 2009 Annual Report 103
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
| | | | | | | |
| |
| |
| Core Bond Fund | | | 0 | % | | |
| High Income Bond Fund | | | 0 | | | |
| Inflation Protected Securities Fund | | | 0 | | | |
| Intermediate Government Bond Fund | | | 0 | | | |
| Intermediate Term Bond Fund | | | 0 | | | |
| Short Term Bond Fund | | | 0 | | | |
| Total Return Bond Fund | | | 20 | | | |
| U.S. Government Mortgage Fund | | | 0 | | | |
| |
| |
HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD
A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities, is available at firstamericanfunds.com and on the U.S. Securities and Exchange Commission’s website at www.sec.gov. A description of the funds’ policies and procedures is also available without charge upon request by calling 800.677.FUND.
FORM N-Q HOLDINGS INFORMATION
Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available without charge (1) upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 800.SEC.0330.
QUARTERLY PORTFOLIO HOLDINGS
Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 business days of the calendar quarter-end.
APPROVAL OF THE FUNDS’ INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).
At a meeting on May 5-7, 2009, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”). In advance of the meeting, the Board received materials relating to the Agreement, and had the opportunity to ask questions and request further information in connection with its consideration. At a subsequent meeting on June 16-18, 2009, the Board concluded its consideration of and approved the Agreement through June 30, 2010.
Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the Funds, the Board separately considered and approved the Agreement with respect to each Fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and analyzed the factors it deemed relevant, including: (1) the nature, quality, and extent of FAF Advisors’ services to each Fund, (2) the investment performance of the Funds, (3) the profitability of FAF Advisors related to the Funds, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Funds grow and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement with respect to any Fund.
Before approving the Agreement, the independent directors met in executive session with their independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:
Nature, Quality, and Extent of Investment Advisory Services
The Board examined the nature, quality, and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board
104 First American Funds 2009 Annual Report
further considered that FAF Advisors’ duties with respect to each Fund include: (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Funds, including the Funds’ distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the types of services customarily provided by investment advisors in the fund industry. The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer.
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, quality, and extent of the services provided by FAF Advisors under the Agreement.
Investment Performance of the Funds
The Board considered the performance of each Fund on a gross-of-expenses basis, including comparative information provided by an independent data service, regarding the median performance of a group of comparable funds selected by that data service (the “performance universe”) and how each Fund performed versus its benchmark index. The performance periods reviewed by the Board all ended on February 28, 2009, except as noted below.
Core Bond Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board also noted that much of the Fund’s underperformance was attributable to its performance in 2008. In support of this, the Board considered that performance information provided in connection with last year’s review of the Agreement indicated that the Fund had outperformed or performed competitively against its performance universe median for all periods. The Board also considered FAF Advisors’ belief that investment grade fixed income securities have begun their recovery process, and the Board noted that the Fund ranked in the 37th percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
High Income Bond Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board also noted that much of the Fund’s underperformance was attributable to its performance in 2008. In support of this, the Board considered that performance information provided in connection with last year’s review of the Agreement indicated that the Fund had outperformed its performance universe median for all periods. The Board also considered the Fund’s recent strong performance, noting that the Fund ranked in the 13th percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Inflation Protected Securities Fund. The Board considered that the Fund outperformed its performance universe median for the three-year period, though it underperformed its performance universe median for the one-year period. The Board also considered that the Fund underperformed its benchmark index for both periods. The Board considered FAF Advisors’ assertion that much of the Fund’s underperformance was attributable to the Fund’s allocation to non-Treasury securities, since these securities performed poorly in 2008. The Board also noted FAF Advisors’ belief that non-Treasury securities will perform favorably going forward. The Board also considered the Fund’s improving performance trend, noting that the Fund ranked in the 36th percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Intermediate Government Bond Fund. The Board considered that the Fund outperformed its performance universe median for the three-year period, though it underperformed its performance universe median for the one- and five-year periods. The Board also considered that the Fund outperformed its benchmark index for the five-year period, though it underperformed its benchmark index for the one- and three-year period. The Board noted that the Fund’s goal of providing investors with current income that is exempt from state income tax results in an investment strategy that does not lend itself well to comparisons. The Board noted that most of the funds in the Fund’s peer universe can invest in agency obligations, including mortgage-backed securities (which are not exempt from state income taxes), beyond only U.S. Treasury securities and certain state tax-exempt agency securities (which are exempt from state income taxes). In light of these and other considerations, the Board approved FAF Advisors’ proposal to amend the Fund’s investment objective and eliminate the requirement that the Fund only invest in government securities which are exempt from state income taxes. Also, the Board approved FAF Advisors’ proposal to change the Fund’s benchmark index to better reflect the revised investment strategy. The Board approved these changes to take effect no fewer than 60 days after shareholder notification of the amendment to the Fund’s investment objective. The Board concluded that in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Intermediate Term Bond Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board also noted that much of the Fund’s underperformance was attributable to its
First American Funds 2009 Annual Report 105
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
performance in 2008. In support of this, the Board considered that performance information provided in connection with last year’s review of the Agreement indicated that the Fund had outperformed its performance universe median for all periods. The Board also considered the Fund’s recent strong performance, noting that the Fund ranked in the 13th percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Short Term Bond Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median for the one-, three- and five-year periods, though it underperformed its performance universe median for the ten-year period. The Board also considered that the Fund underperformed its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance compared to that of its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Total Return Bond Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board also noted that much of the Fund’s underperformance was attributable to its performance in 2008. In support of this, the Board considered that performance information provided in connection with last year’s review of the Agreement indicated that the Fund had outperformed its performance universe median for all periods and outperformed its benchmark index for the five-year period. The Board also considered the Fund’s recent strong performance, noting that the Fund ranked in the 9th percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement.
U.S. Government Mortgage Fund. The Board considered that the Fund underperformed its performance universe median and its benchmark index for all periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance was attributable to an increase in holdings of non-agency residential mortgage securities, as well as exposure to commercial mortgage-backed securities. The Board also considered FAF Advisors’ assertion that commercial mortgage-backed securities have begun to recover a portion of their value and that it believes the Fund is positioned for recovery in the coming year. The Board noted that the Fund ranked in the 32nd percentile of its performance universe for the four-month period ended April 30, 2009. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to renew the Agreement. The Board also determined, however, that it would closely monitor the performance of this Fund.
Costs of Services and Profits Realized by FAF Advisors
The Board examined FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board examined fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s total expense ratio after waivers compared to the median total expense ratio of comparable funds. In connection with its review of Fund fees and expenses, the Board considered FAF Advisors’ pricing philosophy. FAF Advisors attempts generally to maintain each Fund’s total operating expenses at a level that approximates the median of a peer group of funds selected by an independent data service. In addition, FAF Advisors has committed to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups.
Further detail considered by the Board regarding the advisory fees and total expense ratios of each Fund is set forth below:
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Short Term Bond Fund and U.S. Government Mortgage Fund. The Board considered that each Fund’s advisory fee, after waivers, and total expense ratio, after waivers, were equal to or lower than the peer group median. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Intermediate Term Bond Fund. The Board considered that, although the Fund’s advisory fee, after waivers, was higher than the peer group median, the Fund’s total expense ratio, after waivers, was lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Total Return Bond Fund. The Board considered that, although the Fund’s advisory fee and total expense ratio, after waivers, were higher than the peer group median, they were within a range consistent with FAF Advisors’ pricing philosophy. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
106 First American Funds 2009 Annual Report
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The Board considered information presented by FAF Advisors to support its assertion that the median total expense ratio of a Fund’s peer group should reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group and any economies of scale which those funds realize. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders will effectively receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules and any such economies of scale. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement.
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, transfer agent, distributor, custodian and, for certain of the Funds, securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.
After full consideration of these factors, the Board concluded that approval of each Agreement was in the interest of the respective Fund and its shareholders.
First American Funds 2009 Annual Report 107
| |
| Notice toShareholders | June 30, 2009 (unaudited) |
Directors and Officers of the Funds
| | | | | | | | | | | |
| Independent Directors |
| | | | | | | | | | | Other
|
| | | Position(s)
| | Term of Office
| | | | Number of Portfolios
| | Directorships
|
Name, Address, and
| | Held
| | and Length of
| | Principal Occupation(s)
| | in Fund Complex
| | Held by
|
| Year of Birth | | with Funds | | Time Served | | During Past 5 Years | | Overseen by Director | | Director † |
| |
Benjamin R. Field III
P.O. Box 1329
Minneapolis, MN
55440-1329
(1938) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | | Retired | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Roger A. Gibson
P.O. Box 1329
Minneapolis, MN
55440-1329
(1946) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
October 1997 | | Director, Charterhouse Group, Inc., a private equity firm, since October 2005; Vice President and Chief Operating Officer, Cargo-United Airlines, from July 2001 until retirement in June 2004 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Victoria J. Herget
P.O. Box 1329
Minneapolis, MN
55440-1329
(1951) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003 | | Investment consultant and non-profit board member since 2001; Board Chair, United Educators Insurance Company | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
John P. Kayser
P.O. Box 1329
Minneapolis, MN
55440-1329
(1949) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
October 2006 | | Retired; Principal from 1983 to 2004, William Blair & Company, LLC, a Chicago-based investment firm | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Leonard W. Kedrowski
P.O. Box 1329
Minneapolis, MN
55440-1329
(1941) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993 | | Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Richard K. Riederer
P.O. Box 1329
Minneapolis, MN
55440-1329
(1944) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
August 2001 | | Owner and Chief Executive Officer, RKR Consultants, Inc., a consulting company providing advice on business strategy, mergers and acquisitions, and non-profit board member since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | Cliffs Natural Resources, Inc. (a producer of iron ore pellets and coal) |
| |
| |
Joseph D. Strauss
P.O. Box 1329
Minneapolis, MN
55440-1329
(1940) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
April 1991 | | Attorney At Law, Owner, and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman, and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning, and public relations organization; Owner, Chairman, and Chief Executive Officer, Excensustm LLC, a strategic demographic planning and application development firm | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
Virginia L. Stringer
P.O. Box 1329
Minneapolis, MN
55440-1329
(1944) | | Chair; Director | | Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987 | | Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; Chair, St. Paul Riverfront Corporation, since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
108 First American Funds 2009 Annual Report
| | | | | | | | | | | |
Independent Directors – concluded |
| | | | | | | | | | | Other
|
| | | Position(s)
| | Term of Office
| | | | Number of Portfolios
| | Directorships
|
Name, Address, and
| | Held
| | and Length of
| | Principal Occupation(s)
| | in Fund Complex
| | Held by
|
| Year of Birth | | with Funds | | Time Served | | During Past 5 Years | | Overseen by Director | | Director † |
| |
James M. Wade
P.O. Box 1329
Minneapolis, MN
55440-1329
(1943) | | Director | | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since
August 2001 | | Owner and President, Jim Wade Homes, a homebuilding company | | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | | None |
| |
| |
| |
| † | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800.677.FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
First American Funds 2009 Annual Report 109
Notice toShareholders June 30, 2009 (unaudited)
| | | | | | | |
| Officers |
| | | Position(s)
| | Term of Office
| | |
Name, Address, and
| | Held
| | and Length of
| | |
| Year of Birth | | with Funds | | Time Served | | Principal Occupation(s) During Past 5 Years |
| |
Thomas S. Schreier, Jr.
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1962)* | | President & Vice President – Investments | | Re-elected by the Board annually; President of FAIF since February 2001 | | Chief Executive Officer, FAF Advisors, Inc.; Chief Investment Officer, FAF Advisors, Inc., since September 2007 |
| |
| |
Jeffery M. Wilson
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1956)* | | Vice President – Administration | | Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000 | | Senior Vice President, FAF Advisors, Inc. |
| |
| |
Charles D. Gariboldi, Jr.
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1959)* | | Treasurer | | Re-elected by the Board annually; Treasurer of FAIF since October 2004 | | Mutual Funds Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of Investment Accounting and Fund Treasurer, Thrivent Financial for Lutherans |
| |
| |
Jill M. Stevenson
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1965)* | | Assistant Treasurer | | Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005 | | Mutual Funds Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. |
| |
| |
David H. Lui
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1960)* | | Chief Compliance Officer | | Re-elected by the Board annually; Chief Compliance Officer of FAIF since
March 2005 | | Chief Compliance Officer, First American Funds and FAF Advisors, Inc., since March 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc., and Chief Compliance Counsel, Franklin Templeton Investments |
| |
| |
Jason K. Mitchell
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1976)* | | Anti-Money Laundering Officer | | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since December 2008 and from September 2006 through August 2008 | | Compliance Manager, FAF Advisors, Inc., since June 2006; prior thereto, Compliance Analyst, FAF Advisors, Inc., from October 2004 to June 2006; prior thereto, Senior Systems Helpdesk Analyst, Wachovia Retirement Services |
| |
| |
Kathleen L. Prudhomme
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1953)* | | Secretary | | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF from September 1998 through December 2004 | | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm |
| |
| |
James D. Alt
Dorsey & Whitney LLP
50 South Sixth Street
Suite 1500,
Minneapolis, MN 55402
(1951) | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002 | | Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm |
| |
| |
James R. Arnold
U.S. Bancorp Fund Services, LLC
615 E. Michigan Street
Milwaukee, WI 53202
(1957)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since
June 2003 | | Senior Vice President, U.S. Bancorp Fund Services, LLC |
| |
| |
Richard J. Ertel
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1967)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004 | | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc., September 2004 to May 2006; prior thereto, Counsel, FAF Advisors, Inc. |
| |
| |
Michael W. Kremenak
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1978)* | | Assistant Secretary | | Re-elected by the Board annually; Assistant Secretary of FAIF since February 2009 | | Counsel, FAF Advisors Inc., since January 2009; prior thereto, Associate, Skadden, Arps, Slate, Meagher & Flom LLP, from September 2005 to
January 2009 |
| |
| |
| |
| * | Messrs. Schreier, Wilson, Gariboldi, Lui, Mitchell, Ertel, and Kremenak, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Mr. Arnold is an officer of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as transfer agent for FAIF. |
110 First American Funds 2009 Annual Report
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair of Saint Paul Riverfront Corporation;
former Owner and President of Strategic Management Resources, Inc.
Benjamin Field III
Director of First American Investment Funds, Inc.
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.
Roger Gibson
Director of First American Investment Funds, Inc.
Director of Charterhouse Group, Inc.
Victoria Herget
Director of First American Investment Funds, Inc.
Investment Consultant; Chair of United Educators Insurance Company;
former Managing Director of Zurich Scudder Investments
John Kayser
Director of First American Investment Funds, Inc.
Retired; former Principal, Chief Financial Officer, and Chief Administrative
Officer of William Blair & Company, LLC
Leonard Kedrowski
Director of First American Investment Funds, Inc.
Owner and President of Executive and Management Consulting, Inc.
Richard Riederer
Director of First American Investment Funds, Inc.
Owner and Chief Executive Officer of RKR Consultants, Inc.
Joseph Strauss
Director of First American Investment Funds, Inc.
Owner and President of Strauss Management Company
James Wade
Director of First American Investment Funds, Inc.
Owner and President of Jim Wade Homes
First American Investment Funds’ Board of Directors is comprised entirely of
independent directors.
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the fiscal year ended June 30, 2009. The portfolio managers views are subject to change at any time based upon market or other conditions. This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.
The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
| | | | | |
INVESTMENT ADVISOR
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, Minnesota 55402
ADMINISTRATOR
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, Minnesota 55402
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202 | | CUSTODIAN
U.S. Bank National Association
60 Livingston Avenue
St. Paul, Minnesota 55101
DISTRIBUTOR
Quasar Distributors, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202 | | INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
220 South Sixth Street
Suite 1400
Minneapolis, Minnesota 55402
COUNSEL
Dorsey & Whitney LLP
�� 50 South Sixth Street
Suite 1500
Minneapolis, Minnesota 55402 |
In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
0202-09 8/2009 AR-INCOME
Item 2—Code of Ethics
The registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer. During the period covered by this report, there were no amendments to the provisions of the registrant’s code of ethics that apply to the registrant’s principal executive officer and principal financial officer and that relate to any element of the code of ethics definition enumerated in this Item. During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provision of its code of ethics. The registrant undertakes to furnish a copy of its code of ethics to any person upon request, without charge, by calling 1-800-677-3863.
Item 3—Audit Committee Financial Expert
The registrant’s Board of Directors has determined that Leonard W. Kedrowski, Benjamin R. Field III, John P. Kayser, and Richard K. Riederer, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.
Item 4—Principal Accountant Fees and Services
| (a) | | Audit Fees — Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $1,425,606 in the fiscal period ended June 30, 2009 and $1,017,283 in the fiscal year ended June 30, 2008, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form N-CSR. |
| |
| (b) | | Audit-Related Fees — E&Y billed the registrant audit-related fees totaling $109,259 in the fiscal period ended June 30, 2009 and $3,546 in the fiscal year ended June 30, 2008, including fees associated with the semi-annual review of fund disclosures. |
| |
| (c) | | Tax Fees — E&Y billed the registrant fees of $231,164 in the fiscal period ended June 30, 2009 and $201,222 in the fiscal year ended June 30, 2008, for tax services, including tax compliance, tax advice, and tax planning. Tax compliance, tax advice, and tax planning services primarily related to preparation of original and amended tax returns, timely RIC qualification reviews, and tax distribution analysis and planning. |
| |
| (d) | | All Other Fees — There were no fees billed by E&Y for other services to the registrant during the fiscal years ended June 30, 2009 and June 30, 2008. |
| |
| (e)(1) | | The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below: |
Audit Committee policy regarding pre-approval of services provided by the Independent Auditor
The Audit Committee of the First American Funds (“Committee”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:
| | • | | Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality |
| |
| | • | | Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence |
| |
| | • | | Meet quarterly with the partner of the independent audit firm |
| |
| | • | | Consider approving categories of service that are not deemed to impair independence for a one-year period |
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year.
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:
Audit Services
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:
| | • | | Annual Fund financial statement audits |
| |
| | • | | Seed audits (related to new product filings, as required) |
| |
| | • | | SEC and regulatory filings and consents |
Audit-related Services
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
| | • | | Accounting consultations |
| |
| | • | | Fund merger support services |
| |
| | • | | Other accounting related matters |
| |
| | • | | Agreed Upon Procedure Reports |
| |
| | • | | Attestation Reports |
| |
| | • | | Other Internal Control Reports |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Tax Services
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.
| | • | | Tax compliance services related to the filing or amendment of the following: |
| | • | | Federal, state and local income tax compliance, and |
| |
| | • | | Sales and use tax compliance |
| | • | | Timely RIC qualification reviews |
| |
| | • | | Tax distribution analysis and planning |
| |
| | • | | Tax authority examination services |
| |
| | • | | Tax appeals support services |
| | • | | Accounting methods studies |
| |
| | • | | Fund merger support services |
| |
| | • | | Tax consulting services and related projects |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
| | • | | Management functions |
| |
| | • | | Accounting and bookkeeping services |
| |
| | • | | Internal audit services |
| |
| | • | | Financial information systems design and implementation |
| |
| | • | | Valuation services supporting the financial statements |
| |
| | • | | Actuarial services supporting the financial statements |
| |
| | • | | Executive recruitment |
| |
| | • | | Expert services (e.g., litigation support) |
| |
| | • | | Investment banking |
Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex
The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, LLC, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds.
Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.
| (e)(2) | | All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee. |
| |
| (f) | | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period end were performed by the principal accountant’s full-time, permanent employees. |
| |
| (g) | | The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $499,536 in the fiscal period June 30, 2009 and $397,115 in the fiscal year ended June 30, 2008. |
| (h) | | The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved is compatible with maintaining E&Y’s independence. |
Item 5—Audit Committee of Listed Registrants
Not applicable.
Item 6—Schedule of Investments
The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8—Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10—Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item.
Item 11—Controls and Procedures
| (a) | | The registrant’s principal executive officer and principal financial officer have evaluated the effectiveness of the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely. |
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| (b) | | There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12—Exhibits
| (a)(1) | | Not applicable. Registrant’s code of ethics is provided to any person upon request without charge. |
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| (a)(2) | | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed as exhibits hereto. |
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| (a)(3) | | Not applicable. |
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| (b) | | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 are filed as exhibits hereto. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
First American Investment Funds, Inc.
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| By: | | /s/ Thomas S. Schreier, Jr. | | |
| | | Thomas S. Schreier, Jr. | | |
| | | President | | |
Date: August 26, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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| By: | | /s/ Thomas S. Schreier, Jr. | | |
| | | Thomas S. Schreier, Jr. | | |
| | | President | | |
Date: August 26, 2009
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| By: | | /s/ Charles D. Gariboldi, Jr. | | |
| | | Charles D. Gariboldi, Jr. | | |
| | | Treasurer | | |
Date: August 26, 2009
