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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, 2010
Date of reporting period: June 30, 2010
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.
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
Message to Shareholders August 13, 2010
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2010.
This report includes comparative performance graphs and tables, portfolio commentaries, 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.
As announced on July 29, 2010, U.S. Bancorp has entered into an agreement to sell a portion of the asset management business of FAF Advisors, the funds’ advisor, to Nuveen Investments. Included in the sale will be that part of FAF Advisors’ business that advises the funds. Subject to the approval of the funds’ board of directors and shareholders, along with other conditions related to the closing of the sale, Nuveen Asset Management, a subsidiary of Nuveen Investments, will become the advisor to the funds. The sale is currently expected to close by the end of 2010. There will be no change in the funds’ investment objectives or policies as a result of the transaction.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.3863.
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 2010 ANNUAL REPORT 1
Explanation of Financial Statements
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 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 present 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 800.677.3863 or visit FirstAmericanFunds.com.
2 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American California Tax Free Fund (the “fund”), Class Y shares, returned 11.06% for the fiscal year ended June 30, 2010 (Class A shares returned 10.89%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper California Municipal Debt Funds Average, was 12.12%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Although the state’s budget problems and economic woes persist, many California bonds registered equally strong performance, and in some cases outperformed the market. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable during the first half of 2010. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names, including the state of California.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
Many California bonds performed very well over the past year, perhaps due in part to starting from relatively distressed levels. Despite ongoing budget woes, credit spreads on state general obligation bonds narrowed over the past year as investors contemplated both the state’s overall resources and the new beneficial ratings recalibrations. While the fund’s somewhat longish duration was a positive contributor to returns, incrementally heavier weightings in longer intermediate maturities vs. 30+ year maturities may have slightly weighed on performance over the past 12 months. The Build America Bonds program does at times hamper the supply of longer tax-exempt issuance in most states. Holdings of lower mid-grade bonds were the best performing ratings category in the fund, as returns benefited from both positive price action (credit spread compression) and favorable yield and income advantages. Examples of revenue sectors that performed well in this environment included healthcare, higher education, and tax allocation debt.
What strategic moves were made by the fund and why?
We kept the fund’s duration (or sensitivity to interest-rate movements) somewhat longer than the benchmark’s duration during the fiscal year. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases focused primarily in the 15- to 30-year maturity range, coupled with occasional reallocations, out of short- to intermediate-maturity holdings. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. The fund is adding positions primarily in solid mid-grade situations with strong credit profiles and relatively wide credit spreads. We feel spreads on many local names in California, such as these, will eventually narrow and pay you to wait until the state economy finds firmer ground.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 3
California Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 64 | .7 | % |
General Obligations3 | | | 27 | .1 | |
Certificates of Participation3 | | | 4 | .4 | |
| Short-Term Investment | | | 2 | .2 | |
Other Assets and Liabilities, Net4 | | | 1 | .6 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 5 | .4% | |
| AA | | | 24 | .1 | |
| A | | | 38 | .3 | |
| BBB | | | 28 | .5 | |
| BB | | | 0 | .8 | |
| Non-Rated | | | 2 | .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, 2010, 2.4% 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. |
4 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 6 | .14% | | | 2.70 | % | | | 4.72 | % |
| |
| |
| Class C | | | 9 | .33% | | | 3.12 | % | | | 4.73 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 10 | .89% | | | 3.59 | % | | | 5.18 | % |
| |
| |
| Class C | | | 10 | .33% | | | 3.12 | % | | | 4.73 | % |
| |
| |
| Class Y | | | 11 | .06% | | | 3.79 | % | | | 5.41 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.63 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 1.28%, 1.68%, and 1.03%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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 2010 ANNUAL REPORT 5
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, 2010?
The First American Colorado Tax Free Fund (the “fund”), Class Y shares, returned 11.16% for the fiscal year ended June 30, 2010 (Class A shares returned 10.91%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper Colorado Municipal Debt Funds Average, was 10.39%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable during the first half of 2010. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market accompanied by mild yield curve flattening, the fund’s slightly long duration and heavier weighting in longer intermediate maturities were both positive contributors to relative returns. Throughout the year, the fund has looked to more significantly increase proportionate weightings of longer maturities. However, the Build America Bonds program does at times hamper the supply of longer tax-exempt issuance in the state. Strong performance from intermediate and long maturity positions was counter-balanced slightly by holdings in cash equivalents, which obviously contributed negligibly to returns. The fund’s allocations to mid-grade (and a few non-rated) bonds also did well. Here, returns came from both positive price action (credit spread compression) and favorable income or yield advantages. Healthcare, toll roads, and charter schools were examples of revenue bond sectors that performed well in this environment. In summary, the entire year, while not as tumultuous as the previous year, still 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?
We kept the fund’s duration (or sensitivity to interest-rate movements) longer than the benchmark’s duration during the fiscal year. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases primarily focused on the 10- to 30-year maturity range, coupled with occasional reallocations, out of short- to intermediate-maturity holdings. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. Many transactions also entailed adding mid-grade names with strong credit profiles at yield spreads that are still much wider than historical long-term averages. We feel many of these credit spreads will ultimately narrow when an economic rebound becomes better entrenched. Although perhaps more tactical than strategic, the fund was also active selling a number of positions where we believed prices exceeded fair value or where potential credit stress was not adequately reflected in market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
6 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 73 | .7 | % |
General Obligations3 | | | 15 | .0 | |
Certificates of Participation3 | | | 8 | .8 | |
| Short-Term Investment | | | 3 | .7 | |
Other Assets and Liabilities, Net4 | | | (1 | .2 | ) |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 3 | .6 | % |
| AA | | | 41 | .3 | |
| A | | | 21 | .1 | |
| BBB | | | 24 | .8 | |
| BB | | | 0 | .2 | |
| Non-Rated | | | 9 | .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 securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2010, 3.7% 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 7
Colorado Tax Free Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 6.16 | % | | | 2.24% | | | | 4.64% | |
| |
| |
| Class C | | | 9.51 | % | | | 2.71% | | | | 4.66% | |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 10.91 | % | | | 3.14% | | | | 5.10% | |
| |
| |
| Class C | | | 10.51 | % | | | 2.71% | | | | 4.66% | |
| |
| |
| Class Y | | | 11.16 | % | | | 3.41% | | | | 5.35% | |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9.61 | % | | | 4.40% | | | | 5.63% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.45%, 1.85%, and 1.20%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 2010 so that total annual fund operating expenses (after all waivers and excluding 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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 different expense structures. |
8 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 8.50% for the fiscal year ended June 30, 2010 (Class A shares returned 8.42%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital 1-15 Year Blend Municipal Bond Index*, returned 7.49%. Performance for the fund’s peer group, the Lipper Intermediate Municipal Debt Funds Average, was 8.02%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market accompanied by mild yield curve flattening, the fund’s slightly long duration and heavier weighting in longer intermediate maturities were both positive contributors to relative returns. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns. The fund’s allocations and emphasis on mid-grade (and a few non-rated) bonds also did well. Here, returns were generated by both positive price action (from credit spread compression) and favorable income or yield advantages. Healthcare and continuing care retirement communities were examples of sectors that performed well in this environment. In summary, the entire fiscal year, while not as tumultuous as the previous year, still 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?
We kept the fund’s duration (or sensitivity to interest-rate movements) slightly longer than the benchmark’s duration over the period. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases primarily focused on the 10- to 20-plus year maturity range, coupled with occasional reallocations, out of short- to intermediate-maturity holdings. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. Many transactions also entailed adding mid-grade names with strong credit profiles at yield spreads that are still much wider than historical long-term averages. We feel many of these credit spreads will ultimately narrow when an economic rebound becomes better entrenched. Although perhaps more tactical than strategic, the fund was also active selling a number of positions where we believed prices exceeded fair value or where potential credit stress was not adequately reflected in market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 9
Intermediate Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
Revenue Bonds3 | | | 66 | .0 | % |
General Obligations3 | | | 28 | .3 | |
Certificates of Participation3 | | | 2 | .2 | |
| Short-Term Investments | | | 2 | .8 | |
Other Assets and Liabilities, Net4 | | | 0 | .7 | |
| | | | | | |
| | | | 100 | .0 | % |
| | | | | | |
| | | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 8 | .9 | % |
| AA | | | 34 | .2 | |
| A | | | 27 | .5 | |
| BBB | | | 18 | .2 | |
| BB | | | 1 | .0 | |
| Non-Rated | | | 10 | .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 securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2010, 11.5% 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. |
10 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 10/28/2009 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 5.99 | % | | | 3.60 | % | | | 4.63 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 3.05 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 8.42 | % | | | 4.06 | % | | | 4.87 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 4.05 | % |
| |
| |
| Class Y | | | 8.50 | % | | | 4.13 | % | | | 4.97 | % | | | — | |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index3 | | | 7.49 | % | | | 4.60 | % | | | 5.34 | % | | | 6.17 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C. 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%, 1.42% and 0.77%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) as compared to the Barclays 1-15 Year Blend 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 1 and 17 years. |
| |
| 4 | Performance for Class C and Class Y shares are not presented. Performance for these classes will vary due to a different expense structure. |
FIRST AMERICAN FUNDS 2010 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, 2010?
The First American Minnesota Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 8.50% for the fiscal year ended June 30, 2010 (Class A shares returned 8.51%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital 1-15 Year Blend Municipal Bond Index*, returned 7.49%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 6.61%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market, the fund’s slightly long duration was a positive contributor to relative returns. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns. Throughout the year, the fund attempted to more significantly increase maturity weightings longer than 10 years. However, the Build America Bonds program somewhat hampered the supply of longer tax-exempt issuance in the state. The fund’s allocations and emphasis on mid-grade (and a few lower-grade and non-rated) bonds did very well. Here, returns were generated by both positive price action (from credit spread compression) and favorable income or yield advantages. Healthcare, electric utility, and higher education were examples of sectors that performed well in this environment. In summary, the entire year, while not as tumultuous as the previous year, still 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?
We kept the fund’s duration (or sensitivity to interest-rate movements) slightly longer than the benchmark’s duration over the period. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. While still maintaining the fund’s intermediate-range weighted average maturity, we attempted to focus purchases primarily in the 10- to 20-plus-year maturity range (coupled with occasional reallocations out of short- to intermediate-maturity holdings). We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. Many transactions also entailed adding mid-grade names with strong credit profiles at yield spreads that are still much wider than historical long-term averages. We feel many of these credit spreads will ultimately narrow when an economic rebound becomes better entrenched. Although perhaps more tactical than strategic, the fund was also active selling a number of positions where we believed prices exceeded fair value or where potential credit stress was not adequately reflected in market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
12 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 67.9 | % |
General Obligations3 | | | 26.4 | |
Certificates of Participation3 | | | 2.3 | |
| Short-Term Investments | | | 4.0 | |
Other Assets and Liabilities, Net4 | | | (0.6 | ) |
| | | | | |
| | | | 100.0 | % |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | |
| AAA | | | 8.4 | % |
| AA | | | 31.0 | |
| A | | | 34.0 | |
| BBB | | | 15.5 | |
| BB | | | 2.3 | |
| 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, 2010, 6.3% 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 13
Minnesota Intermediate Tax Free Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 10/28/2009 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 6.09 | % | | | 3.48 | % | | | 4.48 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 3.15 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 8.51 | % | | | 3.96 | % | | | 4.71 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 4.15 | % |
| |
| |
| Class Y | | | 8.50 | % | | | 4.06 | % | | | 4.81 | % | | | — | |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index3 | | | 7.49 | % | | | 4.60 | % | | | 5.34 | % | | | 6.17 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 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 1.08%, 1.48%, and 0.83%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 2010 so that total annual fund operating expenses (after all waivers and excluding any acquired fund fees and expenses) for Class A, Class, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) as compared to the Barclays Capital 1-15 Year Blend 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 1 and 17 years. |
| |
| 4 | Performance for Class C and Class Y shares is not presented. Performance for this class will vary due to its different expense structure. |
14 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Minnesota Tax Free Fund (the “fund”), Class Y shares, returned 13.37% for the fiscal year ended June 30, 2010 (Class A shares returned 13.19%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper Minnesota Municipal Debt Funds Objective Average, was 9.78%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
As noted above, the third quarter of 2009 produced the bulk of the returns for the year. While the municipal yield curve flattened only marginally over the year, the additional yield provided by the fund’s overweighted positions in 20- to 30-year maturities benefitted performance as longer bonds were the best-performing maturities. As evidence mounted throughout the period that the U. S. economy may be emerging from recession, our holdings of single-A, BBB and non-rated bonds did well. Narrowing credit spreads and the extra yield provided by these holdings helped the fund’s performance. Also performing well as credit spreads narrowed were the fund’s positions in healthcare (including hospitals, continuing care retirement communities, and nursing homes), utilities, leasing, and education. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns.
What strategic moves were made by the fund and why?
The fund’s duration was maintained longer than the benchmark throughout the period. A long position was retained because the yield curve at the end of the fiscal year was still steep by historical standards. Maturities were reduced in the one to 9-year area in favor of the 20- to 30-year range to capitalize on the historically steep yield curve. We maintained emphasis on mid–grade bonds – those rated single-A and BBB – and non-rated bonds. While these had done well over the period as credit spreads narrowed, said spreads remained well above historical averages at fiscal year-end. Our overweighting in healthcare positions was retained as well due to the positive historical performance characteristics of this sector.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 15
Minnesota Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 79.6 | % |
General Obligations3 | | | 10.7 | |
Certificate of Participation3 | | | 1.3 | |
| Short-Term Investments | | | 10.2 | |
Other Assets and Liabilities, Net4 | | | (1.8 | ) |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | |
| AAA | | | 21 | .6% |
| AA | | | 19 | .5 |
| A | | | 30 | .5 |
| BBB | | | 9 | .2 |
| BB | | | 0 | .9 |
| Non-Rated | | | 18 | .3 |
| | | | | |
| | | | 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, 2010, 3.2% 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. |
16 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 8 | .41% | | | 2.81 | % | | | 4.51 | % |
| |
| |
| Class C | | | 11 | .58% | | | 3.23 | % | | | 4.52 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 13 | .19% | | | 3.71 | % | | | 4.97 | % |
| |
| |
| Class C | | | 12 | .58% | | | 3.23 | % | | | 4.52 | % |
| |
| |
| Class Y | | | 13 | .37% | | | 3.91 | % | | | 5.21 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.63 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 1.12%, 1.52%, and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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 2010 ANNUAL REPORT 17
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, 2010?
The First American Missouri Tax Free Fund (the “fund”), Class Y shares, returned 10.57% for the fiscal year ended June 30, 2010 (Class A shares returned 10.41%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Average, was 9.17%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable during the first half of 2010. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market accompanied by mild yield curve flattening, the fund’s slightly long duration and heavier weighting in longer intermediate maturities were both positive contributors to relative returns. Throughout the year, the fund has attempted to more significantly increase proportionate weightings of longer maturities. However, the Build America Bonds program does at times hamper the supply of longer tax-exempt issuance in the state. Strong performance from intermediate and long maturity positions was counter-balanced slightly by holdings in cash equivalents, which obviously contributed negligibly to returns. The fund’s allocations to mid-grade (and a few non-rated) bonds also did well. Here, returns came from both positive price action and favorable income or yield advantages. Healthcare, continuing care retirement communities, and appropriation-backed bonds were examples of sectors that performed well in this environment. In summary, the entire fiscal year, while not as tumultuous as the previous year, still 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?
We kept the fund’s duration (or sensitivity to interest-rate movements) longer than the benchmark’s duration over the past year. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases primarily focused on the 10- to 30-year maturity range, coupled with occasional reallocations, out of short- to intermediate-maturity holdings. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. Many transactions also entailed adding mid-grade names with strong credit profiles at yield spreads that are still much wider than historical long-term averages. We feel many of these credit spreads will ultimately narrow when an economic rebound becomes better entrenched. Although perhaps more tactical than strategic, the fund was also active selling a number of positions where we believed prices exceeded fair value or where potential credit stress was not adequately reflected in market pricing.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
18 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 78.4 | % |
General Obligations3 | | | 9.9 | |
Certificates of Participation3 | | | 6.0 | |
| Short-Term Investment | | | 5.1 | |
Other Assets and Liabilities, Net4 | | | 0.6 | |
| | | | | |
| | | | 100.0 | % |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 17 | .3 | % |
| AA | | | 31 | .4 | |
| A | | | 23 | .2 | |
| BBB | | | 18 | .9 | |
| BB | | | 0 | .9 | |
| Non-Rated | | | 8 | .3 | |
| | | | | | |
| | | | 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, 2010, 7.3% 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 19
Missouri Tax Free Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 5 | .75% | | | 2.65 | % | | | 4.30 | % | | | — | |
| |
| |
| Class C | | | 8 | .90% | | | 3.11 | % | | | — | | | | 3.69 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 10 | .41% | | | 3.55 | % | | | 4.75 | % | | | — | |
| |
| |
| Class C | | | 9 | .90% | | | 3.11 | % | | | — | | | | 3.69 | % |
| |
| |
| Class Y | | | 10 | .57% | | | 3.79 | % | | | 5.05 | % | | | — | |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.63 | % | | | 4.99 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 1.12%, 1.52%, and 0.87%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 06/30/2000 to 6/30/2010) 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. |
20 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Nebraska Tax Free Fund (the “fund”), Class Y shares, returned 9.65% for the fiscal year ended June 30, 2010. (Class A shares returned 9.26%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Average, was 9.17%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The low level of interest rates available in the market continues to encourage investors to reach for yield in terms of both credit and duration. Reflecting the trends of the broader market, the best performing bonds in the fund were generally mid-grade (A- and BBB – rated) revenue bonds. In addition, the slope of the yield curve remains extremely steep, which has allowed bonds with longer maturities to significantly outperform those with shorter maturities. A greater allocation to the 20-to 30-year maturity range was a positive contributor to performance. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns.
What strategic moves were made by the fund and why?
We kept the fund’s duration (or sensitivity to interest-rate movements) slightly longer than the benchmark’s duration during the fiscal year. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was historically steep with room to flatten. The fund continues to look to add mid-grade credits; however, supply of these issues tends to be fairly limited within Nebraska. In the past, the fund has looked to buy some out-of-state issues, and over the latest period, these holdings were among the best performers. The fund remains opportunistic in selling into strong bids that we feel exceed fair value or that may not reflect the projected credit stress of the issuer. Given the current low level of interest rates available in the market, the fund prefers to underweight high-grades especially in the front end of the yield curve.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 21
Nebraska Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 74 | .2% |
General Obligations3 | | | 20 | .9 |
| Short-Term Investment | | | 3 | .6 |
Other Assets and Liabilities, Net4 | | | 1 | .3 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | |
| AAA | | | 10 | .1% |
| AA | | | 45 | .2 |
| A | | | 28 | .3 |
| BBB | | | 4 | .7 |
| BB | | | 1 | .8 |
| Non-Rated | | | 9 | .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, 2010, 3.0% 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 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 2/28/2001 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 4 | .59% | | | 2.74 | % | | | 4.12 | % |
| |
| |
| Class C | | | 7 | .91% | | | 3.26 | % | | | 4.14 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 9 | .26% | | | 3.65 | % | | | 4.60 | % |
| |
| |
| Class C | | | 8 | .91% | | | 3.26 | % | | | 4.14 | % |
| |
| |
| Class Y | | | 9 | .65% | | | 3.91 | % | | | 4.86 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.14 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 1.51%, 1.91%, and 1.26%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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%, 1.15%, and 0.50%, respectively. These fee waivers and expense reimbursements may be terminated at any time after October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/28/2001 to 6/30/2010) 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 2010 ANNUAL REPORT 23
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, 2010?
The First American Ohio Tax Free Fund (the “fund”), Class Y shares, returned 9.39% for the fiscal year ended June 30, 2010. (Class A shares returned 9.12%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper Ohio Municipal Debt Funds Average, was 8.89%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable during the first half of 2010. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market, accompanied by mild yield curve flattening, the fund’s slightly long duration and heavier weighting in longer maturities were both positive contributors to relative returns. The fund’s allocations and emphasis on mid-grade (and a few non-rated) bonds also did well. Here, returns were generated by both positive price action and favorable income or yield advantages. Healthcare and continuing care retirement communities were examples of sectors that performed well in this environment. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns.
What strategic moves were made by the fund and why?
We kept the fund’s duration (or sensitivity to interest-rate movements) slightly longer than the benchmark’s duration during the fiscal year. This stemmed from our view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases primarily focused on the 20- to 30-year maturity range, and we sold certain credits and structures throughout the period. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. Most transactions entailed adding mid-grade names with strong credit profiles at yield spreads that are still much wider than historical long-term averages. We feel many of these credit spreads will ultimately narrow when an economic rebound becomes better entrenched.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
24 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 67 | .1% |
General Obligations3 | | | 28 | .6 |
Certificates of Participation3 | | | 1 | .6 |
| Short-Term Investment | | | 3 | .5 |
Other Assets and Liabilities, Net4 | | | (0 | .8) |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 13 | .6 | % |
| AA | | | 40 | .7 | |
| A | | | 29 | .8 | |
| BBB | | | 11 | .8 | |
| Non-Rated | | | 4 | .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 securities may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Schedule of Investments. As of June 30, 2010, 8.0% 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 25
Ohio Tax Free Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 4/30/2002 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 4 | .47% | | | 2.77 | % | | | 3.94 | % |
| |
| |
| Class C | | | 7 | .72% | | | 3.23 | % | | | 3.93 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 9 | .12% | | | 3.67 | % | | | 4.49 | % |
| |
| |
| Class C | | | 8 | .72% | | | 3.23 | % | | | 3.93 | % |
| |
| |
| Class Y | | | 9 | .39% | | | 3.92 | % | | | 4.74 | % |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.05 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 acquired fund fees and expenses) for Class A, Class C, and Class Y shares was 1.40%, 1.80%, and 1.15%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 2010 so that total annual fund operating expenses (after all waivers and excluding 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 October 31, 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, 2010
This chart 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 6/30/2010) 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 different expense structures. |
26 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Oregon Intermediate Tax Free Fund
Investment Objective: providing maximum current income that is exempt from both federal income tax and Oregon state income tax to the extent consistent with prudent investment risk
How did the fund perform for the fiscal year ended June 30, 2010?
The First American Oregon Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 7.21% for the fiscal year ended June 30, 2010. (Class A shares returned 7.05%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark during the period, the Barclays Capital 1-15 Year Blend Municipal Bond Index*, returned 7.49%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Average, was 6.61%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable during the first half of 2010. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The fund benefitted from several of the major market dynamics of the past year. Given the general rally in the municipal market accompanied by mild yield curve flattening, the fund’s slightly long duration and heavier weighting in longer intermediate maturities were both positive contributors to relative returns. However, some of these weightings were counter-balanced by holdings in cash equivalents, which obviously contributed negligibly to returns. The fund’s allocations to lower investment grade and non-rated bonds contributed significantly. However, the available supply of these types of credits in Oregon can be constrained. The returns for the lower-rated credits were generated by both positive price action and favorable income or yield advantages. Healthcare and continuing care retirement communities were examples of sectors that performed well in this environment.
What strategic moves were made by the fund and why?
The fund’s duration (or sensitivity to interest-rate movements) was slightly longer than the benchmark’s duration during the fiscal year. This stemmed from the view that sustainable upward pressure on rates was unlikely and that the slope of the municipal yield curve was still historically steep with room to flatten. Purchases primarily focused on the 10- to 20-plus year maturity range, and we sold certain credits and structures throughout the period. We still anticipate the shape of the municipal yield curve will flatten over the long-term, although the catalyst for such a move does not appear imminent. We continue to believe that credit spreads will ultimately narrow when an economic rebound becomes better entrenched.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 27
Oregon Intermediate Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
General Obligations3 | | | 46 | .5% |
Revenue Bonds3 | | | 44 | .3 |
Certificates of Participation3 | | | 3 | .3 |
| Short-Term Investments | | | 5 | .2 |
Other Assets and Liabilities, Net4 | | | 0 | .7 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | | |
| AAA | | | 11 | .4 | % |
| AA | | | 58 | .6 | |
| A | | | 15 | .0 | |
| BBB | | | 9 | .2 | |
| BB | | | 0 | .9 | |
| 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, 2010, 7.2% 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. |
28 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 4 | .69% | | | 3.17 | % | | | 4.27 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 7 | .05% | | | 3.65 | % | | | 4.51 | % |
| |
| |
| Class Y | | | 7 | .21% | | | 3.81 | % | | | 4.64 | % |
| |
| |
Barclays Capital 1-15 Year Blend Municipal Bond Index3 | | | 7 | .49% | | | 4.60 | % | | | 5.34 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) as compared to the Barclays Capital 1-15 Year Blend 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 between 1 and 17 years. |
| |
| 4 | Performance for Class Y shares is not presented. Performance of this class will vary due to its different expense structure. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 29
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, 2010?
The First American Short Tax Free Fund (the “fund”), Class Y shares, returned 4.53% for the fiscal year ended June 30, 2010 (Class A shares returned 4.38% for the same period). By comparison, the fund’s benchmark, the Barclays Capital 3-Year Municipal Bond Index*, returned 4.30%. Performance for the fund’s peer group, the Lipper Short Municipal Debt Funds Average, was 3.08%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
The low level of interest rates available in the market continues to encourage investors to reach for yield in terms of both credit and duration. Reflecting the trends of the broader market, the best performing bonds in the fund were generally mid-grade (A–and BBB – rated) revenue bonds. In addition, the slope of the yield curve remains extremely steep, which has allowed bonds with longer maturities to significantly outperform those with shorter maturities. The fund tends to be more diversified than the index – and its peers – with regard to yield curve positioning. Exposure to the five to 12-year part of the curve was a positive contributor to the fund’s performance in this environment. However, the fund has a significant allocation to variable rate demand notes. These short-term, cash equivalents contributed negligibly to returns.
What strategic moves were made by the fund and why?
Over the past year, the fund’s duration (or sensitivity to interest-rate movements) has been long to the fund’s peer group, and at times its benchmark. The fund sold many of its intermediate holdings toward the end of third quarter 2009. That part of the curve had seen significant flattening vs. shorter maturities. These trades allowed the fund to reduce duration and lock in some impressive performance over the period. Nominal yields on short bonds are at or near historical lows. While we do not see an immediate risk, we have taken some steps that should improve the fund’s stability in an eventual rising rate environment. The fund has added to its holdings of short-term variable rate demand notes. In addition, new fixed-rate purchases have generally been for five years or more, with a focus on mid-grade revenue bonds that continue to trade at attractive spreads and should be less sensitive to higher rates relative to high grades.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
30 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 53 | .7% |
| Short-Term Investments | | | 33 | .8 |
General Obligations3 | | | 10 | .9 |
Certificates of Participation3 | | | 1 | .1 |
Other Assets and Liabilities, Net4 | | | 0 | .5 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | |
| AAA | | | 22 | .7% |
| AA | | | 41 | .2 |
| A | | | 22 | .2 |
| BBB | | | 5 | .7 |
| BB | | | 1 | .0 |
| Non-Rated | | | 7 | .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, 2010, 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 31
Short Tax Free Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10/25/2002 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 2 | .07% | | | 2.54 | % | | | 2.43 | % |
| |
| |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 4 | .38% | | | 3.01 | % | | | 2.73 | % |
| |
| |
| Class Y | | | 4 | .53% | | | 3.17 | % | | | 2.88 | % |
| |
| |
Barclays Capital 3-Year Municipal Bond Index3 | | | 4 | .30% | | | 4.25 | % | | | 3.71 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2010) 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. |
32 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Tax Free Fund (the “fund”), Class Y shares, returned 15.36% for the fiscal year ended June 30, 2010 (Class A shares returned 15.32%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Barclays Capital Municipal Bond Index*, returned 9.61%. Performance for the fund’s peer group, the Lipper General Municipal Debt Funds Average, was 10.59%.
What were the general municipal market conditions during the fiscal year?
The municipal market posted solid gains over the past 12 months, despite a sense of uneasiness that sometimes pervaded trading. Investors dissatisfied with money market yields were strongly supportive of municipal bonds and funds during the period. Returns ranged from double digits for longer bonds to slightly more than the coupon for shorter maturities. The high-grade municipal yield curve finished slightly flatter, with both short- and long-maturity yields ending lower than a year ago. Although the third quarter of 2009 produced the lion’s share of the period’s returns, performance has been consistent and fairly steady so far in 2010. Likewise, credit spreads (the difference in yields between high-grade and lower-rated bonds) narrowed in 2009 and have been relatively stable this year. The Build America Bonds program, which originated in the February 2009 stimulus bill, exceeded expectations for its effectiveness in supporting municipals by diverting large quantities of new issue supply (primarily in longer maturities) to a new pool of buyers in the taxable markets. In April, Moody’s and Fitch finally implemented their ratings recalibrations designed to place municipal bonds on the same global rating scale as corporate debt. The recalibrations resulted in ratings upgrades for many general obligation and essential service revenue bonds and helped tighten spreads on many names.
Despite the strong gains, investors have been forced to ponder the budget stresses affecting many state and local issuers. Media stories predicting municipal bankruptcies and comparing states to troubled EU nations are commonplace (however, we believe they are poorly analyzed in general). Although fiscal pressures exist, the portions of fiscal woes that are cyclical in nature can typically be addressed with conventional, albeit painful, budgetary action. Solutions to longer-term structural imbalances, such as underfunded pensions, require a willingness to begin to confront such challenges now, as opposed to some time in the indefinite future.
How did market conditions and investment strategies affect the fund’s performance?
As noted above, the third quarter of 2009 produced the bulk of the returns for the year. While the municipal yield curve flattened only marginally over the period, the additional yield provided by the fund’s overweighted positions in 20-to 30-year maturities benefitted performance as longer bonds were the best performing maturities. As evidence mounted throughout the period that the U. S. economy may be emerging from recession, mid-grade bonds – those rated single-A and BBB – did well. Narrowing credit spreads and the extra yield provided by these holdings helped the fund’s performance. Also performing well as credit spreads narrowed were the fund’s positions in healthcare (including hospitals and continuing care retirement communities), corporate-backed issues (such as industrial development and solid waste revenue bonds), education, and utilities.
What strategic moves were made by the fund and why?
The fund’s duration was reduced throughout the year but was maintained longer than the benchmark. The gradual diminution was in response to muted yield curve flattening. A long position was retained because the yield curve at the end of the fiscal year was still steep by historical standards. Maturities were reduced in the one to three year and 20- to 30-year areas in favor of the 10- to 12-year range in pursuit of additional relative value. We maintained emphasis on mid-grade and non-rated bonds and added selectively to our single-A rated holdings. While these had done well over the period as credit spreads narrowed, said spreads remained well above historical averages at fiscal year-end. Our overweighting in healthcare positions was retained as well due to the positive historical performance characteristics of this sector.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 33
Tax Free Fund
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | |
Revenue Bonds3 | | | 80 | .5% |
General Obligations3 | | | 10 | .8 |
Certificates of Participation3 | | | 0 | .7 |
| Investment Company | | | 2 | .0 |
| Short-Term Investment | | | 5 | .0 |
Other Assets and Liabilities, Net4 | | | 1 | .0 |
| | | | | |
| | | | 100 | .0% |
| | | | | |
| | | | | |
Bond Credit Quality as of June 30, 20102 (% of market value)
| | | | | |
| AAA | | | 11 | .7% |
| AA | | | 22 | .8 |
| A | | | 23 | .6 |
| BBB | | | 25 | .3 |
| BB | | | 2 | .0 |
| Non-Rated | | | 14 | .6 |
| | | | | |
| | | | 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, 2010, 4.3% 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. |
34 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 10 | .40% | | | 2.95 | % | | | 4.80 | % | | | — | |
| |
| |
| Class C | | | 13 | .60% | | | 3.33 | % | | | — | | | | 4.20 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 15 | .32% | | | 3.85 | % | | | 5.26 | % | | | — | |
| |
| |
| Class C | | | 14 | .60% | | | 3.33 | % | | | — | | | | 4.20 | % |
| |
| |
| Class Y | | | 15 | .36% | | | 3.99 | % | | | 5.46 | % | | | — | |
| |
| |
Barclays Capital Municipal Bond Index3 | | | 9 | .61% | | | 4.40 | % | | | 5.63 | % | | | 4.99 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 1.05%, 1.45%, and 0.80%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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 distributions, 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.
| |
| 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 2010 ANNUAL REPORT 35
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, 2010 to June 30, 2010.
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.
California Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,038.40 | | | $ | 3.29 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.57 | | | $ | 3.26 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,035.80 | | | $ | 5.80 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,039.20 | | | $ | 2.53 | |
| |
| |
| 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 0.65%, 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). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2010 of 3.84%, 3.58%, and 3.92% for Class A, Class C, and Class Y, respectively. |
36 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Colorado Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,035.80 | | | $ | 3.79 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,032.90 | | | $ | 5.80 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,036.00 | | | $ | 2.52 | |
| |
| |
| 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, 2010 of 3.58%, 3.29%, and 3.60% for Class A, Class C, and Class Y, respectively. |
Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,029.50 | | | $ | 3.77 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual4 | | $ | 1,000.00 | | | $ | 1,026.30 | | | $ | 6.78 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,029.80 | | | $ | 3.52 | |
| |
| |
| 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 0.75%, 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). |
| |
| 4 | Based on the actual returns for the six-month period ended June 30, 2010 of 2.95%, 2.63%, and 2.98% for Class A, Class C, and Class Y, respectively. |
Minnesota Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,030.80 | | | $ | 3.78 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual6 | | $ | 1,000.00 | | | $ | 1,027.70 | | | $ | 6.79 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,031.20 | | | $ | 3.53 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.32 | | | $ | 3.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 5 | 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). |
| |
| 6 | Based on the actual returns for the six-month period ended June 30, 2010 of 3.08%, 2.77%, and 3.12% for Class A , Class C, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 37
Expense Examples
Minnesota Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,034.60 | | | $ | 4.29 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,032.30 | | | $ | 6.80 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,036.40 | | | $ | 3.53 | |
| |
| |
| 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%, 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). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2010 of 3.46%, 3.23%, and 3.64% for Class A, Class C, and Class Y, respectively. |
Missouri Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,029.30 | | | $ | 4.28 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.63 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual4 | | $ | 1,000.00 | | | $ | 1,026.90 | | | $ | 6.78 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,030.10 | | | $ | 3.52 | |
| |
| |
| 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%, 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). |
| |
| 4 | Based on the actual returns for the six-month period ended June 30, 2010 of 2.93%, 2.69%, and 3.01% for Class A, Class C, and Class Y, respectively. |
Nebraska Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,026.90 | | | $ | 3.77 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual6 | | $ | 1,000.00 | | | $ | 1,026.10 | | | $ | 5.78 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,029.20 | | | $ | 2.52 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,022.32 | | | $ | 2.51 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 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, 2010 of 2.69%, 2.61%, and 2.92% for Class A, Class C, and Class Y, respectively. |
38 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Ohio Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,029.10 | | | $ | 3.77 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,027.50 | | | $ | 5.78 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.09 | | | $ | 5.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,030.40 | | | $ | 2.52 | |
| |
| |
| 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, 2010 of 2.91%, 2.75%, and 3.04% for Class A, Class C, and Class Y, respectively. |
Oregon Intermediate Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,024.90 | | | $ | 4.27 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,025.70 | | | $ | 3.52 | |
| |
| |
| 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, 2010 of 2.49% and 2.57% for Class A and Class Y, respectively. |
Short Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,014.00 | | | $ | 3.70 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.12 | | | $ | 3.71 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,014.80 | | | $ | 2.95 | |
| |
| |
| 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 0.74% 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, 2010 of 1.40% and 1.48% for Class A and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 39
Expense Examples
Tax Free Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,046.60 | | | $ | 3.81 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,043.70 | | | $ | 6.84 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,046.80 | | | $ | 3.55 | |
| |
| |
| 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 0.75%, 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). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2010 of 4.66%, 4.37%, and 4.68% for Class A, Class C, and Class Y, respectively. |
40 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of 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, 2010, 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, 2010, 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, 2010, 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 23, 2010
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 41
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| California Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 96.2% |
| Revenue Bonds – 64.7% |
| Continuing Care Retirement Communities – 1.8% |
| Association of Bay Area Governments Financial Authority, Lincoln Glen Manor Senior Citizens (CMI) | | | | | | | | |
| 6.100%, 02/15/2025 | | $ | 250 | | | $ | 250 | |
| Eden Township Healthcare District | | | | | | | | |
| 6.000%, 06/01/2030 | | | 1,000 | | | | 990 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 300 | | | | 234 | |
| La Verne, Brethren Hillcrest Homes | | | | | | | | |
| Series B (ACA) | | | | | | | | |
| 5.600%, 02/15/2033 | | | 500 | | | | 416 | |
| | | | | | | | | |
| | | | | | | | 1,890 | |
| | | | | | | | | |
| Education – 11.3% |
| California Educational Facilities Authority, Claremont Graduate University, Series A | | | | | | | | |
| 4.750%, 03/01/2020 | | | 655 | | | | 683 | |
| 5.000%, 03/01/2020 | | | 240 | | | | 252 | |
| 5.000%, 03/01/2023 | | | 865 | | | | 889 | |
| 5.125%, 03/01/2028 | | | 500 | | | | 502 | |
| California Educational Facilities Authority, Fresno Pacific University, Series A | | | | | | | | |
| 6.750%, 03/01/2019 | | | 380 | | | | 382 | |
| California Educational Facilities Authority, Golden Gate University | | | | | | | | |
| 5.000%, 10/01/2020 | | | 430 | | | | 413 | |
| California Educational Facilities Authority, Lutheran University, Series C | | | | | | | | |
| 4.750%, 10/01/2015 | | | 675 | | | | 707 | |
| California Educational Facilities Authority, Pitzer College | | | | | | | | |
| 5.375%, 04/01/2034 | | | 1,000 | | | | 1,015 | |
| California Educational Facilities Authority, University of Redlands, Series A | | | | | | | | |
| 5.000%, 08/01/2028 | | | 1,000 | | | | 999 | |
| California Educational Facilities Authority, University of the Pacific | | | | | | | | |
| 5.000%, 11/01/2030 | | | 1,000 | | | | 995 | |
| California Educational Facilities Authority, Woodbury University | | | | | | | | |
| 4.400%, 01/01/2015 | | | 450 | | | | 445 | |
| 4.500%, 01/01/2016 | | | 470 | | | | 463 | |
| California Municipal Finance Authority, American Heritage Education Foundation Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 06/01/2026 | | | 400 | | | | 373 | |
| California Municipal Finance Authority, Biola University | | | | | | | | |
| 5.000%, 10/01/2018 | | | 1,000 | | | | 1,034 | |
| 5.625%, 10/01/2023 | | | 500 | | | | 521 | |
| California Municipal Finance Authority, Loma Linda University | | | | | | | | |
| 4.250%, 04/01/2018 | | | 300 | | | | 308 | |
| 4.375%, 04/01/2019 | | | 300 | | | | 307 | |
| California State University, Series C (NATL) | | | | | | | | |
| 5.000%, 11/01/2025 | | | 1,000 | | | | 1,032 | |
| California Statewide Communities Development Authority, Viewpoint School (ACA) | | | | | | | | |
| 4.125%, 10/01/2014 | | | 405 | | | | 412 | |
| | | | | | | | | |
| | | | | | | | 11,732 | |
| | | | | | | | | |
| Healthcare – 18.1% |
| Association of Bay Area Governments Financial Authority, Children’s Hospital & Research | | | | | | | | |
| Series A | | | | | | | | |
| 4.500%, 12/01/2019 | | | 425 | | | | 425 | |
| 4.750%, 12/01/2022 | | | 350 | | | | 348 | |
| California Health Facilities Financing Authority, Adventist Health System West, Series C | | | | | | | | |
| 5.250%, 03/01/2021 | | | 500 | | | | 527 | |
| California Health Facilities Financing Authority, Casa Colina | | | | | | | | |
| 5.500%, 04/01/2013 | | | 350 | | | | 362 | |
| California Health Facilities Financing Authority, Catholic Healthcare West, Series G | | | | | | | | |
| 5.500%, 07/01/2025 | | | 1,000 | | | | 1,052 | |
| California Health Facilities Financing Authority, Marshall Medical Center, Series A (CMI) | | | | | | | | |
| 4.750%, 11/01/2019 | | | 1,760 | | | | 1,780 | |
| California Health Facilities Financing Authority, Scripps Health, Series A | | | | | | | | |
| 5.000%, 10/01/2022 | | | 200 | | | | 209 | |
| California Health Facilities Financing Authority, Stanford Hospital, Series A | | | | | | | | |
| 5.000%, 11/15/2025 | | | 1,000 | | | | 1,030 | |
| California Health Facilities Financing Authority, Sutter Health, Series A | | | | | | | | |
| 5.000%, 08/15/2038 | | | 250 | | | | 238 | |
| California Statewide Communities Development Authority, Adventist Health, Series A | | | | | | | | |
| 5.000%, 03/01/2030 | | | 300 | | | | 292 | |
| California Statewide Communities Development Authority, Catholic Healthcare West, Series C | | | | | | | | |
| 5.625%, 07/01/2035 | | | 1,000 | | | | 1,033 | |
| California Statewide Communities Development Authority, Daughters of Charity Health | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 07/01/2030 | | | 100 | | | | 89 | |
| Series G | | | | | | | | |
| 5.250%, 07/01/2013 | | | 400 | | | | 418 | |
| California Statewide Communities Development Authority, Elder Care Alliance | | | | | | | | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 7.250%, 11/15/2011 § | | | 280 | | | | 294 | |
| California Statewide Communities Development Authority, Enloe Medical Center, Series A (CMI) | | | | | | | | |
| 5.250%, 08/15/2019 | | | 125 | | | | 132 | |
| 5.500%, 08/15/2023 | | | 500 | | | | 516 | |
| California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital | | | | | | | | |
| Series A (CMI) | | | | | | | | |
| 5.000%, 10/01/2020 | | | 500 | | | | 511 | |
| 5.000%, 10/01/2027 | | | 400 | | | | 381 | |
| Series B (AMBAC) (CMI) | | | | | | | | |
| 5.200%, 10/01/2037 | | | 500 | | | | 458 | |
| California Statewide Communities Development Authority, Jewish Home (CMI) | | | | | | | | |
| 4.500%, 11/15/2019 | | | 560 | | | | 554 | |
| 5.000%, 11/15/2037 | | | 500 | | | | 443 | |
| California Statewide Communities Development Authority, Redlands Community Hospital | | | | | | | | |
| Series A (RAAI) | | | | | | | | |
| 5.000%, 04/01/2015 | | | 500 | | | | 520 | |
The accompanying notes are an integral part of the financial statements.
42 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| California Statewide Communities Development Authority, St. Joseph | | | | | | | | |
| Series B (FGIC) | | | | | | | | |
| 5.500%, 07/01/2027 | | $ | 1,100 | | | $ | 1,132 | |
| Series C (FGIC) | | | | | | | | |
| 5.500%, 07/01/2027 | | | 500 | | | | 514 | |
| Loma Linda University Medical Center, Series A | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,000 | | | | 1,043 | |
| 8.250%, 12/01/2038 | | | 1,000 | | | | 1,119 | |
| Northern Inyo County Hospital District | | | | | | | | |
| 6.375%, 12/01/2025 | | | 500 | | | | 508 | |
| Sierra View Health Care District | | | | | | | | |
| 5.250%, 07/01/2024 | | | 1,000 | | | | 985 | |
| 5.300%, 07/01/2026 | | | 1,000 | | | | 971 | |
| Turlock Health Facilities Revenue, Emanuel Medical Center | | | | | | | | |
| 5.000%, 10/15/2024 | | | 1,000 | | | | 900 | |
| | | | | | | | | |
| | | | | | | | 18,784 | |
| | | | | | | | | |
| Housing – 2.2% |
Aztec Shops, California Auxiliary Organization, San Diego State University Pre-refunded 09/01/2010 @ 101 | | | | | | | | |
5.400%, 09/01/2011 ◊ | | | 1,035 | | | | 1,054 | |
| California Statewide Communities Development Authority, UCI East Campus | | | | | | | | |
| 5.500%, 05/15/2026 | | | 410 | | | | 414 | |
| Ventura County Area Housing Authority, Mira Vista Senior Apartments | | | | | | | | |
| Series A (AMBAC) (AMT) | | | | | | | | |
| 5.150%, 12/01/2031 | | | 1,000 | | | | 790 | |
| | | | | | | | | |
| | | | | | | | 2,258 | |
| | | | | | | | | |
| Lease Revenue – 11.4% |
| Apple Valley Public Financing Authority, Town Hall Annex Project, Series A (AMBAC) | | | | | | | | |
| 4.500%, 09/01/2017 | | | 485 | | | | 526 | |
| 5.000%, 09/01/2027 | | | 500 | | | | 513 | |
| California Public Works Board, California Community Colleges | | | | | | | | |
| Series A | | | | | | | | |
| 4.875%, 12/01/2018 | | | 200 | | | | 202 | |
| Series B | | | | | | | | |
| 5.500%, 06/01/2019 | | | 1,035 | | | | 1,075 | |
| California Public Works Board, California State University | | | | | | | | |
| Series B-1 | | | | | | | | |
| 5.400%, 03/01/2026 | | | 500 | | | | 509 | |
| Series J | | | | | | | | |
| 5.500%, 11/01/2026 | | | 695 | | | | 714 | |
| California Public Works Board, Department of Corrections & Rehabilitation | | | | | | | | |
| Series F (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,500 | | | | 1,619 | |
| California Public Works Board, Department of Mental Health Coalinga, Series A | | | | | | | | |
| 5.500%, 06/01/2016 | | | 540 | | | | 577 | |
| California Public Works Board, Regents University of California, Series E | | | | | | | | |
| 5.000%, 04/01/2034 | | | 1,250 | | | | 1,261 | |
| California Public Works Board, Various Capital Projects, Series G-1 | | | | | | | | |
| 5.750%, 10/01/2030 | | | 1,500 | | | | 1,532 | |
| Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Series A (AGM) | | | | | | | | |
| 4.550%, 06/01/2022 | | | 1,900 | | | | 1,802 | |
| Los Angeles Community Redevelopment Agency, Manchester Social Services Project (AMBAC) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 1,200 | | | | 1,269 | |
| Yuba Levee Financing Authority Project | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.000%, 09/01/2038 | | | 250 | | | | 246 | |
| | | | | | | | | |
| | | | | | | | 11,845 | |
| | | | | | | | | |
| Miscellaneous – 2.8% |
| Golden West Schools Financing Authority | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.700%, 02/01/2013 | | | 670 | | | | 742 | |
| 5.750%, 02/01/2014 | | | 770 | | | | 873 | |
| 5.800%, 08/01/2022 | | | 320 | | | | 374 | |
| 5.800%, 08/01/2023 | | | 345 | | | | 403 | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
2.204%, 02/01/2012 ¤ | | | 535 | | | | 517 | |
| | | | | | | | | |
| | | | | | | | 2,909 | |
| | | | | | | | | |
| Recreational Facility Authority – 1.2% |
| California Infrastructure & Economic Development, Performing Arts Center | | | | | | | | |
| 4.000%, 12/01/2015 | | | 100 | | | | 105 | |
California State University Fresno Association, Auxiliary Organization Event Center Pre-refunded 07/01/2012 @ 101 | | | | | | | | |
6.000%, 07/01/2022 ◊ | | | 1,000 | | | | 1,115 | |
| | | | | | | | | |
| | | | | | | | 1,220 | |
| | | | | | | | | |
| Tax Revenue – 8.8% |
Antioch Area Public Facilities Financing Agency, Special Tax, Community Facilities District #1989-1 (AMBAC) | | | | | | | | |
| 4.000%, 08/01/2018 | | | 1,000 | | | | 988 | |
| Corona Redevelopment Agency, Tax Allocation, Temescal Canyon Project Area, Series A (AGC) | | | | | | | | |
| 4.125%, 11/01/2017 | | | 80 | | | | 84 | |
| Los Angeles County Community Facilities District #3, Special Tax, Improvement Area B | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.250%, 09/01/2018 | | | 715 | | | | 716 | |
| Murrieta Community Facilities, Special Tax, District #2, The Oaks Improvement Area | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 09/01/2020 | | | 350 | | | | 343 | |
Norco, Special Tax, Community Facilities District #97-1 (AGC) | | | | | | | | |
| 4.875%, 10/01/2030 | | | 500 | | | | 471 | |
| Palm Desert Financing Authority, Tax Allocation, Project Area #4, Series A (NATL) | | | | | | | | |
| 5.000%, 10/01/2029 | | | 1,000 | | | | 936 | |
| Poway Unified School District, Special Tax, Community Facilities District #6 4S Ranch | | | | | | | | |
| 5.000%, 09/01/2023 | | | 650 | | | | 620 | |
| Puerto Rico Sales Tax Financing, Series C | | | | | | | | |
| 5.250%, 08/01/2041 | | | 1,000 | | | | 982 | |
| Rancho Cucamonga Redevelopment Agency, Tax Allocation, Series A (NATL) | | | | | | | | |
| 4.125%, 09/01/2018 | | | 310 | | | | 309 | |
| 5.000%, 09/01/2034 | | | 500 | | | | 453 | |
| San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project | | | | | | | | |
| Series A (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 850 | | | | 873 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 43
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| San Francisco City & County Redevelopment Financing Authority, Tax Allocation, Mission Bay North Redevelopment Project, Series B (RAAI) | | | | | | | | |
| 4.000%, 08/01/2012 | | $ | 295 | | | $ | 302 | |
| 4.100%, 08/01/2014 | | | 325 | | | | 332 | |
| 4.250%, 08/01/2016 | | | 250 | | | | 249 | |
| 4.375%, 08/01/2018 | | | 380 | | | | 369 | |
| Sand City Redevelopment Agency, Tax Allocation | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 4.000%, 11/01/2019 | | | 315 | | | | 296 | |
| Soledad Redevelopment Agency, Tax Allocation | | | | | | | | |
| Series A (SGI) | | | | | | | | |
| 4.500%, 12/01/2016 | | | 205 | | | | 214 | |
South Tahoe Redevelopment Agency, Special Tax, Community Facilities District #2001-1 | | | | | | | | |
| 4.400%, 10/01/2015 | | | 120 | | | | 121 | |
| 4.500%, 10/01/2016 | | | 125 | | | | 125 | |
| 4.600%, 10/01/2018 | | | 280 | | | | 271 | |
| | | | | | | | | |
| | | | | | | | 9,054 | |
| | | | | | | | | |
| Transportation – 0.9% |
| Alameda Corridor Transportation Authority Zero Coupon Bond (AMBAC) | | | | | | | | |
4.275%, 10/01/2014 ¤ | | | 1,000 | | | | 835 | |
| Puerto Rico Commonwealth, Highway & Transportation Authority, Series X (IBC) (NATL) | | | | | | | | |
| 5.500%, 07/01/2015 | | | 100 | | | | 109 | |
| | | | | | | | | |
| | | | | | | | 944 | |
| | | | | | | | | |
| Utilities – 6.2% |
| Banning Utility Authority, Water Enterprise, Refunding and Improvement Projects (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2020 | | | 1,025 | | | | 1,086 | |
| 5.000%, 11/01/2023 | | | 1,040 | | | | 1,076 | |
| California Pollution Control Financing Authority, Solid Waste Disposal, Waste Management Incorporated Project | | | | | | | | |
| Series A-2 (AMT) (GTY) | | | | | | | | |
| 5.400%, 04/01/2025 | | | 500 | | | | 508 | |
| Series B (AMT) (GTY) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 500 | | | | 498 | |
| Compton Sewer (IBC) (NATL) | | | | | | | | |
| 5.375%, 09/01/2023 | | | 1,150 | | | | 1,151 | |
| Imperial, Wastewater Treatment Facility (FGIC) (NATL) | | | | | | | | |
| 5.000%, 10/15/2020 | | | 1,000 | | | | 1,012 | |
| Norco, Financing Authority, Enterprise (AGM) | | | | | | | | |
| 5.625%, 10/01/2034 | | | 1,000 | | | | 1,048 | |
| | | | | | | | | |
| | | | | | | | 6,379 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 67,015 | |
| | | | | | | | | |
| General Obligations – 27.1% |
| Acalanes Unified High School District, Election 2008, Series A, Zero Coupon Bond | | | | | | | | |
5.580%, 08/01/2026 ¤ | | | 1,000 | | | | 413 | |
| Baldwin Park Unified School District, Election of 2002, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.379%, 08/01/2020 ¤ | | | 1,000 | | | | 585 | |
| California | | | | | | | | |
| 5.000%, 02/01/2024 | | | 500 | | | | 507 | |
| 5.125%, 04/01/2024 | | | 500 | | | | 520 | |
| 5.625%, 04/01/2026 | | | 600 | | | | 637 | |
| 5.500%, 11/01/2039 | | | 1,000 | | | | 1,014 | |
| Central Unified School District, Election of 2008 | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.625%, 08/01/2033 | | | 500 | | | | 537 | |
| College of the Sequoias, Visalia Area Improvement District #2, Election of 2008 | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.250%, 08/01/2029 | | | 1,000 | | | | 1,061 | |
| Corona-Norco Unified School District, Election of 2006 Convertible CABs | | | | | | | | |
0.000% through 08/01/2017,
thereafter 6.800%, 08/01/2039 ◗ | | | 500 | | | | 345 | |
| Series B (AGC) | | | | | | | | |
| 5.375%, 02/01/2034 | | | 500 | | | | 520 | |
| Cupertino Unified School District, Election of 2001, Series D, Zero Coupon Bond | | | | | | | | |
6.300%, 08/01/2030 ¤ | | | 1,705 | | | | 481 | |
| Desert Sands Unified School District, Election of 2001 | | | | | | | | |
| 5.250%, 08/01/2023 | | | 350 | | | | 387 | |
| Grant Joint Union High School District, Election of 2006, Zero Coupon Bond (AGM) | | | | | | | | |
6.020%, 08/01/2026 ¤ | | | 300 | | | | 116 | |
| Grossmont Union High School District, Election of 2008, Series A | | | | | | | | |
| 5.500%, 08/01/2031 | | | 950 | | | | 1,019 | |
| Hemet Unified School District, Election of 2006 | | | | | | | | |
| Series B (AGC) | | | | | | | | |
| 5.000%, 08/01/2030 | | | 600 | | | | 616 | |
| Jefferson Union High School District, San Mateo County, Series A (NATL) | | | | | | | | |
| 6.250%, 02/01/2014 | | | 300 | | | | 336 | |
| 6.250%, 08/01/2020 | | | 460 | | | | 536 | |
| Long Beach Unified School District, Election of 2008, Series A | | | | | | | | |
| 5.500%, 08/01/2029 | | | 500 | | | | 540 | |
| Los Angeles Unified School District | | | | | | | | |
| Series D | | | | | | | | |
| 5.000%, 01/01/2034 | | | 100 | | | | 100 | |
| Los Angeles Unified School District, Election of 2002, Series B (AMBAC) | | | | | | | | |
| 4.500%, 07/01/2025 | | | 240 | | | | 234 | |
| Lucia Mar Unified School District (FGIC) (NATL) | | | | | | | | |
| 5.250%, 08/01/2022 | | | 100 | | | | 111 | |
| Oakland, Series A (NATL) | | | | | | | | |
| 5.000%, 01/15/2026 | | | 435 | | | | 449 | |
| Pittsburg Unified School District, Election of 2006 | | | | | | | | |
| Series B (AGM) | | | | | | | | |
| 5.500%, 08/01/2034 | | | 1,155 | | | | 1,226 | |
| Pomona Unified School District | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 6.150%, 08/01/2015 | | | 500 | | | | 543 | |
| 5.950%, 02/01/2017 | | | 855 | | | | 969 | |
Poway Unified School District, Election of 2008, District 2007-1-A Zero Coupon Bond | | | | | | | | |
5.980%, 08/01/2029 ¤ | | | 5,000 | | | | 1,624 | |
| Puerto Rico Commonwealth | | | | | | | | |
| Series B (AGM) | | | | | | | | |
| 6.500%, 07/01/2015 | | | 1,000 | | | | 1,161 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 50 | | | | 54 | |
| San Bernardino Community College District, Election of 2002, Series A | | | | | | | | |
| 6.500%, 08/01/2027 | | | 1,265 | | | | 1,480 | |
| 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 | | | | 1,220 | |
The accompanying notes are an integral part of the financial statements.
44 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| California Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Santa Ana Union School District, Election of 2008 | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 08/01/2028 | | $ | 1,000 | | | $ | 1,040 | |
| Santa Barbara Community College District, Election of 2008, Series A | | | | | | | | |
| 5.250%, 08/01/2027 | | | 1,000 | | | | 1,077 | |
| Tulare Local Health Care District, Election 2005 | | | | | | | | |
| Series B | | | | | | | | |
| 6.375%, 08/01/2025 | | | 500 | | | | 554 | |
| 6.500%, 08/01/2026 | | | 1,005 | | | | 1,111 | |
| Victor Valley Community College District, Election of 2008, Series A | | | | | | | | |
| 5.000%, 08/01/2031 | | | 1,530 | | | | 1,541 | |
| Victor Valley Joint Union High School District, Election of 2008 | | | | | | | | |
| Series A, Convertible CABs (AGC) | | | | | | | | |
0.000% through 08/01/2019,
thereafter 5.750%, 08/01/2031 ◗ | | | 2,000 | | | | 1,158 | |
| West Contra Costa Unified School District, Election of 2005, Series B | | | | | | | | |
| 6.000%, 08/01/2024 | | | 1,100 | | | | 1,216 | |
| West Covina Unified School District | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.350%, 02/01/2020 | | | 770 | | | | 840 | |
| Whittier Unified High School District Zero Coupon Bond | | | | | | | | |
6.420%, 08/01/2034 ¤ | | | 1,000 | | | | 218 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 28,096 | |
| | | | | | | | | |
| Certificates of Participation – 4.4% |
| Escondido, Series A (FGIC) (NATL) | | | | | | | | |
| 5.625%, 09/01/2020 | | | 140 | | | | 142 | |
| Los Angeles, Sonnenblick del Rio, West Los Angeles (AMBAC) | | | | | | | | |
| 5.375%, 11/01/2010 | | | 115 | | | | 116 | |
| 6.000%, 11/01/2019 | | | 330 | | | | 336 | |
| Oakdale Irrigation District, Water Facilities Project | | | | | | | | |
| 5.500%, 08/01/2034 | | | 805 | | | | 842 | |
| Pasadena, Series C | | | | | | | | |
| 4.500%, 02/01/2026 | | | 50 | | | | 50 | |
| Poway (AMBAC) | | | | | | | | |
| 4.500%, 08/01/2016 | | | 585 | | | | 627 | |
| Ramona Unified School District, Convertible CABs (FGIC) (NATL) | | | | | | | | |
0.000% through 05/01/2012,
thereafter 5.000%, 05/01/2032 ◗ | | | 500 | | | | 410 | |
| Rowland Water District, Recycled Water Project | | | | | | | | |
| 5.750%, 12/01/2024 | | | 565 | | | | 622 | |
| 5.750%, 12/01/2025 | | | 480 | | | | 525 | |
| 6.250%, 12/01/2039 | | | 500 | | | | 544 | |
| Travis Unified School District | | | | | | | | |
| (FGIC) (NATL) | | | | | | | | |
| 4.500%, 09/01/2016 | | | 300 | | | | 309 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 4,523 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $97,550) | | | | | | | 99,634 | |
| | | | | | | | | |
Short-Term Investment – 2.2% |
| Money Market Fund – 2.2% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | | | | | | |
(Cost $2,315) | | | 2,315,473 | | | | 2,315 | |
| | | | | | | | | |
Total Investments 5 – 98.4% | | | | | | | | |
(Cost $99,865) | | | | | | | 101,949 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.6% | | | | | | | 1,649 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 103,598 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in 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. |
| |
| ◊ | | 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, 2010. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $99,865. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 3,305 | |
| Gross unrealized depreciation | | | (1,221 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 2,084 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $1,796 which represents 1.7% of total net assets. |
| |
| CMI – | California Mortgage Insurance Program |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| IBC – | International Bank of Commerce |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 45
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Colorado Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 97.5% |
| Revenue Bonds – 73.7% |
| Continuing Care Retirement Communities – 2.6% |
| Colorado Health Facilities Authority, Christian Living Communities Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 01/01/2014 | | $ | 250 | | | $ | 256 | |
| 5.750%, 01/01/2026 | | | 100 | | | | 91 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.000%, 12/01/2016 | | | 500 | | | | 510 | |
| 5.250%, 12/01/2025 | | | 200 | | | | 186 | |
| Series B | | | | | | | | |
| 6.125%, 12/01/2033 | | | 350 | | | | 340 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 225 | | | | 156 | |
| Illinois Finance Authority, Three Crowns Park Plaza | | | | | | | | |
| Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 100 | | | | 93 | |
| | | | | | | | | |
| | | | | | | | 1,632 | |
| | | | | | | | | |
| Education – 23.5% |
| Adams State College Auxiliary Facilities Improvement, Series A (STAID) | | | | | | | | |
| 5.500%, 05/15/2034 | | | 1,340 | | | | 1,434 | |
| 5.500%, 05/15/2039 | | | 1,110 | | | | 1,183 | |
| Colorado Educational & Cultural Facilities Authority, Ave Maria School Project (RAAI) | | | | | | | | |
| 4.750%, 12/01/2014 | | | 220 | | | | 225 | |
| 4.750%, 12/01/2015 | | | 230 | | | | 233 | |
| 4.850%, 12/01/2025 | | | 250 | | | | 220 | |
| Pre-refunded 12/01/2010 @ 100 (RAAI) | | | | | | | | |
6.000%, 12/01/2016 ◊ | | | 200 | | | | 204 | |
| Colorado Educational & Cultural Facilities Authority, Bromley East Charter School Project | | | | | | | | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 6.250%, 09/15/2011 § | | | 120 | | | | 124 | |
| Colorado Educational & Cultural Facilities Authority, Charter School | | | | | | | | |
| 5.625%, 05/01/2040 | | | 1,000 | | | | 1,003 | |
| Colorado Educational & Cultural Facilities Authority, Charter School, James Irwin Foundation (CIFG) (STAID) | | | | | | | | |
| 5.000%, 08/01/2027 | | | 250 | | | | 250 | |
| Colorado Educational & Cultural Facilities Authority, Charter School, Pinnacle High School | | | | | | | | |
| 5.000%, 12/01/2029 | | | 1,000 | | | | 982 | |
| Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School | | | | | | | | |
| Series A (SMO) | | | | | | | | |
| 5.000%, 06/15/2018 | | | 240 | | | | 254 | |
| 5.000%, 06/15/2019 | | | 255 | | | | 267 | |
| 5.000%, 06/15/2020 | | | 265 | | | | 275 | |
| 5.250%, 06/15/2029 | | | 500 | | | | 504 | |
| Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School Escrowed to Maturity | | | | | | | | |
| 6.375%, 12/01/2011 § | | | 445 | | | | 466 | |
| Colorado Educational & Cultural Facilities Authority, Front Range Christian School Project (LOC: Evangelical Christian, Wescorp Credit Union) | | | | | | | | |
| 4.500%, 04/01/2018 | | | 225 | | | | 216 | |
| 4.500%, 04/01/2019 | | | 240 | | | | 228 | |
| 5.000%, 04/01/2037 | | | 750 | | | | 678 | |
| Colorado Educational & Cultural Facilities Authority, Kent Denver School Project | | | | | | | | |
| 5.125%, 10/01/2039 | | | 500 | | | | 499 | |
| Colorado Educational & Cultural Facilities Authority, Northwest Nazarene | | | | | | | | |
| 4.500%, 11/01/2015 | | | 690 | | | | 691 | |
| Colorado Educational & Cultural Facilities Authority, Vail Mountain School Project | | | | | | | | |
| 6.125%, 05/01/2040 | | | 1,000 | | | | 998 | |
| Colorado School Mines Enterprise | | | | | | | | |
| Series A (STAID) | | | | | | | | |
| 5.000%, 12/01/2029 | | | 475 | | | | 499 | |
| Iowa Higher Education Authority, Private College Facilities, Upper Iowa University Project | | | | | | | | |
5.750%, 09/01/2030 « | | | 1,000 | | | | 989 | |
| University of Colorado Enterprise System | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 06/01/2028 | | | 335 | | | | 381 | |
| 5.375%, 06/01/2032 | | | 500 | | | | 541 | |
| University of Colorado Enterprise System, University of Colorado Regents (NATL) | | | | | | | | |
| 5.000%, 06/01/2032 | | | 500 | | | | 522 | |
| Western State College (STAID) | | | | | | | | |
| 5.000%, 05/15/2034 | | | 1,000 | | | | 1,029 | |
| | | | | | | | | |
| | | | | | | | 14,895 | |
| | | | | | | | | |
| Healthcare – 22.2% |
| Aspen Valley Hospital District | | | | | | | | |
| 4.375%, 10/15/2014 | | | 560 | | | | 560 | |
| Boulder County Longmont United Hospital Project (RAAI) | | | | | | | | |
| 5.300%, 12/01/2010 | | | 330 | | | | 333 | |
| Colorado Health Facilities Authority | | | | | | | | |
| Series B (AGM) | | | | | | | | |
| 5.250%, 03/01/2036 | | | 500 | | | | 506 | |
| Colorado Health Facilities Authority, Catholic Health Initiatives | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2039 | | | 500 | | | | 504 | |
| Series D | | | | | | | | |
| 5.125%, 10/01/2017 | | | 500 | | | | 557 | |
| 6.250%, 10/01/2033 | | | 500 | | | | 552 | |
| Colorado Health Facilities Authority, Evangelical Lutheran | | | | | | | | |
| 5.000%, 06/01/2016 | | | 350 | | | | 371 | |
| 6.900%, 12/01/2025 | | | 195 | | | | 200 | |
| Pre-refunded 12/01/2010 @ 102 | | | | | | | | |
6.900%, 12/01/2025 ◊ | | | 305 | | | | 319 | |
| Series A | | | | | | | | |
| 5.250%, 06/01/2034 | | | 230 | | | | 220 | |
| Colorado Health Facilities Authority, Health & Residential Care Facilities, Volunteers of America | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2015 | | | 500 | | | | 492 | |
| Colorado Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | | | | | | | | |
| 5.250%, 12/01/2013 | | | 710 | | | | 742 | |
| 4.625%, 12/01/2024 | | | 325 | | | | 280 | |
| Colorado Health Facilities Authority, National Jewish Medical & Research Center | | | | | | | | |
| 5.375%, 01/01/2016 | | | 1,000 | | | | 1,001 | |
The accompanying notes are an integral part of the financial statements.
46 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Colorado Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Colorado Health Facilities Authority, Parkview Medical Center Project, Series B | | | | | | | | |
| 5.000%, 09/01/2018 | | $ | 500 | | | $ | 520 | |
Colorado Health Facilities Authority, Portercare Adventist Health Pre-refunded 11/15/2011 @ 101 | | | | | | | | |
6.500%, 11/15/2023 ◊ | | | 600 | | | | 655 | |
| Colorado Health Facilities Authority, Poudre Valley Health Care, Series F | | | | | | | | |
| 5.000%, 03/01/2025 | | | 150 | | | | 150 | |
| Colorado Health Facilities Authority, Sisters of Charity of Leavenworth, Series B | | | | | | | | |
| 5.250%, 01/01/2025 | | | 1,000 | | | | 1,046 | |
| Colorado Health Facilities Authority, Valley View Hospital Association Project | | | | | | | | |
| 5.500%, 05/15/2028 | | | 400 | | | | 402 | |
| Series A (RAAI) | | | | | | | | |
| 5.000%, 05/15/2013 | | | 500 | | | | 519 | |
| Colorado Health Facilities Authority, Yampa Valley Medical Center Project | | | | | | | | |
| 5.000%, 09/15/2013 | | | 410 | | | | 434 | |
| Colorado Health Facilities, NCMC Income Project | | | | | | | | |
| Series A (AGM) | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,000 | | | | 1,040 | |
| Colorado Health Facilities, Parkview Medical Center Project, Series B | | | | | | | | |
| 5.000%, 09/01/2029 | | | 355 | | | | 339 | |
| Colorado Springs Hospital | | | | | | | | |
| 6.250%, 12/15/2033 | | | 750 | | | | 796 | |
| Delta County Memorial Hospital District Enterprise | | | | | | | | |
| 5.350%, 09/01/2017 | | | 500 | | | | 505 | |
| 5.500%, 09/01/2025 | | | 515 | | | | 519 | |
| Denver Health & Hospital Authority, Healthcare | | | | | | | | |
| Series A | | | | | | | | |
| 4.750%, 12/01/2027 | | | 250 | | | | 217 | |
| Halifax Florida Hospital, Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 325 | | | | 295 | |
| | | | | | | | | |
| | | | | | | | 14,074 | |
| | | | | | | | | |
| Housing – 5.7% |
| Colorado Educational & Cultural Facilities Authority, Student Housing, Campus Village Apartment | | | | | | | | |
| 5.000%, 06/01/2022 | | | 810 | | | | 842 | |
| 5.500%, 06/01/2038 | | | 120 | | | | 121 | |
| Colorado Housing & Finance Authority | | | | | | | | |
| Series E-2 (AMT) | | | | | | | | |
| 7.000%, 02/01/2030 | | | 30 | | | | 31 | |
| Colorado Housing & Finance Authority, Multifamily Project, Series B-4, Class I | | | | | | | | |
| 5.900%, 04/01/2031 | | | 95 | | | | 95 | |
| 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 (AGM) (AMT) | | | | | | | | |
| 4.000%, 05/01/2012 | | | 270 | | | | 281 | |
| 4.000%, 11/01/2012 | | | 120 | | | | 126 | |
| 4.550%, 11/01/2017 | | | 1,500 | | | | 1,569 | |
| 5.200%, 11/01/2027 | | | 500 | | | | 499 | |
| | | | | | | | | |
| | | | | | | | 3,579 | |
| | | | | | | | | |
| Lease Revenue – 0.8% |
Puerto Rico Public Buildings Authority, Government Facilities, Series M-2,
Mandatory Put 07/01/2017 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.500%, 07/01/2035 | | | 500 | | | | 528 | |
| | | | | | | | | |
| Miscellaneous – 1.3% |
| Colorado Educational & Cultural Facilities Authority, Colorado Public Radio | | | | | | | | |
| 4.900%, 07/01/2010 | | | 65 | | | | 65 | |
| High Plains Metropolitan District | | | | | | | | |
| Series B, (LOC: Compass Bank) | | | | | | | | |
| 4.375%, 12/01/2015 | | | 720 | | | | 735 | |
| | | | | | | | | |
| | | | | | | | 800 | |
| | | | | | | | | |
| Tax Revenue – 2.2% |
| Lone Tree Sales & Use Tax, Recreational Projects | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 12/01/2020 | | | 340 | | | | 383 | |
| Park Meadows Business Improvement District, Shared Sales Tax | | | | | | | | |
| 5.000%, 12/01/2017 | | | 250 | | | | 246 | |
| 5.300%, 12/01/2027 | | | 475 | | | | 421 | |
| Superior Open Space Sales & Use Tax | | | | | | | | |
| 5.000%, 06/01/2026 | | | 330 | | | | 318 | |
| | | | | | | | | |
| | | | | | | | 1,368 | |
| | | | | | | | | |
| Transportation – 6.6% |
| Denver City & County Airport Revenue | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 11/15/2031 | | | 1,000 | | | | 1,023 | |
E-470 Public Highway Authority | | | | | | | | |
| Series B, Zero Coupon Bond (NATL) | | | | | | | | |
5.230%, 09/01/2017 ¤ | | | 1,575 | | | | 1,088 | |
5.750%, 09/01/2019 ¤ | | | 960 | | | | 571 | |
6.083%, 09/01/2022 ¤ | | | 1,000 | | | | 482 | |
| Series C, Convertible CABs (NATL) | | | | | | | | |
0.000% through 09/01/2011,
thereafter 5.000%, 09/01/2017 ◗ | | | 500 | | | | 522 | |
| Series D1 (NATL) | | | | | | | | |
| 5.500%, 09/01/2024 | | | 300 | | | | 300 | |
| Eagle County Air Terminal, Airport Terminal Improvement Project | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.250%, 05/01/2020 | | | 205 | | | | 193 | |
| | | | | | | | | |
| | | | | | | | 4,179 | |
| | | | | | | | | |
| Utilities – 8.8% |
| Arkansas River Power Authority | | | | | | | | |
| 6.000%, 10/01/2040 | | | 225 | | | | 227 | |
| Broomfield Water Activity Enterprise (NATL) | | | | | | | | |
| 5.500%, 12/01/2017 | | | 500 | | | | 513 | |
| 5.500%, 12/01/2019 | | | 400 | | | | 411 | |
| Colorado Housing & Finance Authority, Waste Disposal, Management Income Project (AMT) | | | | | | | | |
| 5.700%, 07/01/2018 | | | 250 | | | | 263 | |
| Colorado Springs Utilities, Series C | | | | | | | | |
| 5.500%, 11/15/2048 | | | 1,200 | | | | 1,269 | |
| Denver City & County Wastewater (FGIC) (NATL) | | | | | | | | |
| 5.250%, 11/01/2017 | | | 1,010 | | | | 1,098 | |
| Eagle River Water & Sanitation Revenue (AGTY) | | | | | | | | |
| 5.000%, 12/01/2034 | | | 800 | | | | 825 | |
| Public Authority for Colorado Energy Natural Gas | | | | | | | | |
| 6.250%, 11/15/2028 | | | 425 | | | | 440 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 47
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Colorado Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | $ | 500 | | | $ | 514 | |
| | | | | | | | | |
| | | | | | | | 5,560 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 46,615 | |
| | | | | | | | | |
| General Obligations – 15.0% |
| Adams & Arapahoe Counties School District, #28J, Aurora (STAID) | | | | | | | | |
| 5.500%, 12/01/2021 | | | 300 | | | | 352 | |
| 5.500%, 12/01/2025 | | | 165 | | | | 188 | |
| Antelope Water Systems, General Improvement District | | | | | | | | |
| 4.875%, 12/01/2025 | | | 175 | | | | 169 | |
| Boulder, Larimer & Weld Counties, St. Vrain Valley School District #RE1J (STAID) | | | | | | | | |
| 5.000%, 12/15/2033 | | | 2,000 | | | | 2,083 | |
| Denver City & County School District #1 | | | | | | | | |
| Series A (STAID) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 1,000 | | | | 1,070 | |
| Denver West Metropolitan School District | | | | | | | | |
| 4.200%, 12/01/2015 | | | 480 | | | | 490 | |
| Gunnison Watershed School District, #RE1J | | | | | | | | |
| Series 2009 (STAID) | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 1,096 | |
| 5.250%, 12/01/2033 | | | 1,800 | | | | 1,913 | |
| North Range Metropolitan District #1 (ACA) | | | | | | | | |
| 4.250%, 12/15/2018 | | | 295 | | | | 230 | |
| Puerto Rico Commonwealth | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 07/01/2018 | | | 500 | | | | 535 | |
| Series C-7 (NATL) | | | | | | | | |
| 6.000%, 07/01/2027 | | | 250 | | | | 264 | |
| Puerto Rico Commonwealth, Public Improvement | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 375 | | | | 378 | |
| Rio Blanco County School District, #RE1, Meeker (STAID) | | | | | | | | |
| 5.250%, 12/01/2022 | | | 500 | | | | 559 | |
| 5.250%, 12/01/2024 | | | 150 | | | | 166 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 9,493 | |
| | | | | | | | | |
| Certificates of Participation – 8.8% |
| Broomfield Open Space Park & Recreation Facilities (AMBAC) | | | | | | | | |
| 5.500%, 12/01/2020 | | | 800 | | | | 813 | |
| Colorado Higher Education Capital Construction Lease | | | | | | | | |
| 5.500%, 11/01/2019 | | | 425 | | | | 482 | |
| 5.500%, 11/01/2027 | | | 1,255 | | | | 1,340 | |
| Pre-refunded 11/01/2018 @��100 | | | | | | | | |
5.500%, 11/01/2027 ◊ | | | 465 | | | | 562 | |
| Colorado Springs, Public Facilities Authority, Old City Hall Project (AGM) | | | | | | | | |
| 5.500%, 12/01/2020 | | | 200 | | | | 204 | |
| Eagle River Fire District | | | | | | | | |
| 6.125%, 12/01/2019 | | | 225 | | | | 229 | |
| 6.625%, 12/01/2024 | | | 220 | | | | 225 | |
| 6.785%, 12/01/2030 | | | 400 | | | | 402 | |
| Garfield County Public Library, Regional Lease Financing Program | | | | | | | | |
| 5.375%, 12/01/2027 | | | 835 | | | | 882 | |
| Pueblo County, Capital Construction | | | | | | | | |
| 4.400%, 12/01/2016 | | | 210 | | | | 220 | |
| 5.000%, 12/01/2024 | | | 200 | | | | 203 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 5,562 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
Cost ($59,781) | | | | | | | 61,670 | |
| | | | | | | | | |
Short-Term Investment – 3.7% |
First American Tax Free Obligations Fund, Class Z,
0.029% Å Ω | | | | | | | | |
(Cost $2,342) | | | 2,341,903 | | | | 2,342 | |
| | | | | | | | | |
Total Investments 5 – 101.2% | | | | | | | | |
(Cost $62,123) | | | | | | | 64,012 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (1.2)% | | | | | | | (785 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 63,227 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| § | | 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. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010 the total cost of investments purchased on a when-issued basis was $986 or 1.6% of total net assets. |
| |
| ¤ | | 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, 2010. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $62,123. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 2,445 | |
| Gross unrealized depreciation | | | (556 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 1,889 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to AMT was $2,977 which represents 4.7% of total net assets. |
| |
| CIFG – | CDC IXIS Financial Guaranty |
| |
| COMGTY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| 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.
48 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 96.5% |
| Alabama – 1.4% |
| Revenue Bonds – 1.1% |
| Anniston Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity | | | | | | | | |
| 8.000%, 07/01/2011 § | | $ | 615 | | | $ | 637 | |
| Health Care Authority for Baptist Health, Series D | | | | | | | | |
| 5.000%, 11/15/2015 | | | 755 | | | | 792 | |
| Huntsville Electric System, (AGM) | | | | | | | | |
| 4.000%, 12/01/2018 | | | 1,130 | | | | 1,214 | |
University of Alabama at Birmingham Hospital
Series A | | | | | | | | |
| 5.000%, 09/01/2018 | | | 1,500 | | | | 1,599 | |
| 5.750%, 09/01/2022 | | | 4,000 | | | | 4,336 | |
| | | | | | | | | |
| | | | | | | | 8,578 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Mobile, Series B | | | | | | | | |
| 5.000%, 02/15/2020 | | | 2,000 | | | | 2,204 | |
| | | | | | | | | |
| | | | | | | | 10,782 | |
| | | | | | | | | |
| Alaska – 0.0% |
| Revenue Bond – 0.0% |
| Aleutians East Borough Project, Aleutian Pribilof Islands, (ACA) | | | | | | | | |
| 4.375%, 06/01/2015 | | | 400 | | | | 368 | |
| | | | | | | | | |
| Arizona – 4.7% |
| Revenue Bonds – 3.1% |
| Arizona Game & Fish Department, Administration Building Project | | | | | | | | |
| 4.500%, 07/01/2015 | | | 150 | | | | 161 | |
Arizona Health Facilities Authority, The Terraces Project, Series A, Pre-refunded 11/15/2013 @ 101 | | | | | | | | |
7.500%, 11/15/2023 ◊ | | | 3,300 | | | | 3,874 | |
| Gilbert Public Facilities Municipal Property Corporation | | | | | | | | |
| 5.500%, 07/01/2027 | | | 6,000 | | | | 6,482 | |
| Glendale Industrial Development Authority, Midwestern University | | | | | | | | |
| 5.000%, 05/15/2021 | | | 1,355 | | | | 1,410 | |
| 5.000%, 05/15/2026 | | | 2,000 | | | | 2,012 | |
| Phoenix Street & Highway User | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 6.250%, 07/01/2011 § | | | 900 | | | | 914 | |
| Pima County Sewer Revenue (AGM) | | | | | | | | |
| 5.000%, 07/01/2024 | | | 2,670 | | | | 2,845 | |
| Scottsdale Industrial Development Authority, Scottsdale Healthcare, Series A | | | | | | | | |
| 5.000%, 09/01/2020 | | | 1,000 | | | | 1,019 | |
| Tempe Industrial Development Authority, Friendship Village Project, Series A | | | | | | | | |
| 5.375%, 12/01/2013 | | | 1,022 | | | | 982 | |
| Tucson Airport Authority, (AGM) | | | | | | | | |
| 5.000%, 06/01/2013 | | | 3,760 | | | | 4,175 | |
| | | | | | | | | |
| | | | | | | | 23,874 | |
| | | | | | | | | |
| General Obligations – 1.0% |
| Coconino & Yavapai Counties Joint Unified School District #9, Sedona School Improvement Project of 2007, Series B | | | | | | | | |
| 5.375%, 07/01/2028 | | | 1,350 | | | | 1,447 | |
| Gila County United School District #10, Payson School Improvement Project of 2006 Series A (AMBAC) | | | | | | | | |
| 5.000%, 07/01/2016 | | | 1,000 | | | | 1,121 | |
| 5.000%, 07/01/2017 | | | 1,050 | | | | 1,177 | |
| Maricopa County School District #48, Scottsdale, Series B (AGM) | | | | | | | | |
| 4.750%, 07/01/2018 | | | 295 | | | | 345 | |
| 4.750%, 07/01/2018 | | | 855 | | | | 951 | |
| Maricopa County School District #69, Paradise Valley (NATL) | | | | | | | | |
| 5.300%, 07/01/2011 | | | 1,000 | | | | 1,046 | |
| Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) (NATL) | | | | | | | | |
| 4.375%, 07/01/2018 | | | 1,000 | | | | 1,073 | |
| 4.500%, 07/01/2019 | | | 1,000 | | | | 1,069 | |
| | | | | | | | | |
| | | | | | | | 8,229 | |
| | | | | | | | | |
| Certificate of Participation – 0.6% |
| Arizona Board of Regents, Series B (AMBAC) | | | | | | | | |
| 4.500%, 06/01/2018 | | | 4,120 | | | | 4,414 | |
| | | | | | | | | |
| | | | | | | | 36,517 | |
| | | | | | | | | |
| Arkansas – 0.4% |
| Revenue Bonds – 0.4% |
| North Little Rock Health Facilities Board, Baptist Health, Series B | | | | | | | | |
| 5.750%, 12/01/2021 | | | 1,000 | | | | 1,080 | |
| University of Arkansas, Fayetteville Series B (FGIC) (NATL) | | | | | | | | |
| 4.500%, 11/01/2016 | | | 1,000 | | | | 1,097 | |
| Washington County Hospital, Regional Medical Center, Series B | | | | | | | | |
| 5.000%, 02/01/2016 | | | 1,145 | | | | 1,219 | |
| | | | | | | | | |
| | | | | | | | 3,396 | |
| | | | | | | | | |
| California – 10.3% |
| Revenue Bonds – 5.9% |
| Alameda Corridor Transportation Authority, Series A, Zero Coupon Bond (AMBAC) | | | | | | | | |
4.275%, 10/01/2014 ¤ | | | 2,000 | | | | 1,671 | |
| Apple Valley Redevelopment Agency, Tax Allocation, Project Area #2 (AMBAC) | | | | | | | | |
| 4.500%, 06/01/2018 | | | 920 | | | | 937 | |
| Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Children’s Hospital, Series A | | | | | | | | |
| 4.500%, 12/01/2018 | | | 1,525 | | | | 1,546 | |
| Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care Alliance, (CMI) | | | | | | | | |
| 4.500%, 08/15/2012 | | | 335 | | | | 349 | |
| 5.000%, 08/15/2017 | | | 1,215 | | | | 1,244 | |
| California Department of Water Resources and Power Supply, Series H (AGM) | | | | | | | | |
| 5.000%, 05/01/2022 | | | 1,000 | | | | 1,090 | |
| California Educational Facilities Authority, Lutheran University, Series C | | | | | | | | |
| 5.000%, 10/01/2024 | | | 1,000 | | | | 988 | |
| California Health Facilities Financing Authority, Adventist Health Systems West, Series C | | | | | | | | |
| 5.125%, 03/01/2020 | | | 500 | | | | 526 | |
| California Health Facilities Financing Authority, Children’s Hospital of Orange County, Series A | | | | | | | | |
| 5.750%, 11/01/2018 | | | 3,000 | | | | 3,245 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 49
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
California Public Works Board, California State University Projects, Series B-1 | | | | | | | | |
| 5.375%, 03/01/2025 | | $ | 1,400 | | | $ | 1,428 | |
| California Public Works Board, Trustees of the California State University, Series D | | | | | | | | |
| 6.000%, 04/01/2025 | | | 2,245 | | | | 2,363 | |
California Public Works Board, Various Capital Projects, Series G-1 | | | | | | | | |
| 5.250%, 10/01/2024 | | | 5,000 | | | | 5,062 | |
California Statewide Communities Development Authority, Elder Care Alliance
Series A, Escrowed to Maturity | | | | | | | | |
| 7.250%, 11/15/2011 § | | | 545 | | | | 572 | |
California Statewide Communities Development Authority, Health Facilities, Adventist Health
Series A | | | | | | | | |
| 5.000%, 03/01/2030 | | | 700 | | | | 681 | |
| California Statewide Communities Development Authority, Henry Mayo Newhall Memorial Hospital, Series B (AMBAC) (CMI) | | | | | | | | |
| 5.200%, 10/01/2037 | | | 1,000 | | | | 916 | |
California Statewide Communities Development Authority, Kaiser Permanente, Series C,
Mandatory Put 06/01/2012 @ 100 | | | | | | | | |
| 3.850%, 11/01/2029 | | | 1,055 | | | | 1,092 | |
| California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | | | | | | | | |
| 5.000%, 11/15/2012 | | | 1,210 | | | | 1,287 | |
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 | | | | 504 | |
Golden State Tobacco Securitization
Series A (AGM) | | | | | | | | |
| 4.550%, 06/01/2022 | | | 2,350 | | | | 2,229 | |
| Northern Inyo County Hospital District | | | | | | | | |
| 6.000%, 12/01/2021 | | | 1,000 | | | | 1,017 | |
| Port Oakland, Series B (NATL) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,470 | | | | 1,609 | |
| San Bernardino County Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 575 | | | | 590 | |
| Santa Paula Utility Authority, Water Revenue | | | | | | | | |
| 5.000%, 02/01/2028 | | | 2,510 | | | | 2,603 | |
| 5.000%, 02/01/2029 | | | 2,630 | | | | 2,712 | |
| 5.000%, 02/01/2030 | | | 2,765 | | | | 2,837 | |
| South Bayside Waste Management, Shoreway Environmental, Series A | | | | | | | | |
| 5.250%, 09/01/2024 | | | 2,500 | | | | 2,580 | |
| 6.250%, 09/01/2029 | | | 1,200 | | | | 1,291 | |
| Upland Community Redevelopment Agency Tax Allocation, Merged Project (AMBAC) | | | | | | | | |
| 4.250%, 09/01/2026 | | | 1,100 | | | | 956 | |
| Whittier Public Finance Authority, Redevelopment Agency, Tax Allocation, Series A (AMBAC) | | | | | | | | |
| 5.000%, 11/01/2021 | | | 995 | | | | 1,013 | |
| Woodland Financial Authority, (SGI) | | | | | | | | |
| 4.700%, 03/01/2019 | | | 815 | | | | 853 | |
| | | | | | | | | |
| | | | | | | | 45,791 | |
| | | | | | | | | |
| General Obligations – 4.4% |
| ABC Unified School District, Series A (NATL) | | | | | | | | |
| 4.900%, 02/01/2020 | | | 1,565 | | | | 1,652 | |
| California | | | | | | | | |
| 5.000%, 02/01/2016 | | | 1,000 | | | | 1,087 | |
| 5.000%, 02/01/2017 | | | 2,000 | | | | 2,169 | |
| 4.000%, 08/01/2017 | | | 2,000 | | | | 2,087 | |
| 5.000%, 11/01/2018 | | | 245 | | | | 254 | |
| 5.000%, 08/01/2019 | | | 500 | | | | 536 | |
| 5.000%, 02/01/2021 | | | 1,500 | | | | 1,543 | |
| 5.000%, 12/01/2023 | | | 1,000 | | | | 1,034 | |
| 5.125%, 04/01/2024 | | | 500 | | | | 520 | |
| Pre-refunded 11/01/2011 @ 100 | | | | | | | | |
5.000%, 11/01/2018 ◊ | | | 15 | | | | 16 | |
| California Economic Recovery, Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 2,000 | | | | 2,217 | |
| Desert Sands Unified School District, Election of 2001 | | | | | | | | |
| 5.250%, 08/01/2023 | | | 500 | | | | 553 | |
| 5.000%, 08/01/2024 | | | 2,000 | | | | 2,155 | |
| Grant Joint Union High School District, Election of 2006, Zero Coupon Bond (AGM) | | | | | | | | |
6.020%, 08/01/2026 ¤ | | | 1,300 | | | | 501 | |
| Las Virgenes Unified School District, Election of 2006, Series B, Zero Coupon Bond | | | | | | | | |
6.060%, 08/01/2027 ¤ | | | 2,015 | | | | 726 | |
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 | | | | 1,170 | |
San Mateo Unified High School District
Series B, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
3.200%, 09/01/2017 ¤ | | | 1,000 | | | | 796 | |
Santa Ana Union School District, Election of 2008
Series A | | | | | | | | |
| 5.250%, 08/01/2028 | | | 1,000 | | | | 1,040 | |
| Santa Monica Community College District, 2002 Election, Series C, Zero Coupon Bond (NATL) | | | | | | | | |
3.375%, 08/01/2016 ¤ | | | 2,000 | | | | 1,615 | |
Tulare Local Health Care District, Election 2005
Series B | | | | | | | | |
| 6.000%, 08/01/2022 | | | 1,180 | | | | 1,306 | |
| 6.125%, 08/01/2023 | | | 1,410 | | | | 1,567 | |
| 6.250%, 08/01/2024 | | | 1,585 | | | | 1,752 | |
| 6.375%, 08/01/2025 | | | 1,265 | | | | 1,401 | |
| 6.500%, 08/01/2026 | | | 500 | | | | 553 | |
Victor Elementary School District
Series A, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
5.702%, 08/01/2023 ¤ | | | 2,030 | | | | 973 | |
Victor Valley Joint Union High School District, Election of 2008
Series A, Convertible CABs (AGC) | | | | | | | | |
0.000% through 08/01/2019,
thereafter 5.750%, 08/01/2031 ◗ | | | 3,000 | | | | 1,737 | |
| West Contra Costa Unified School District, Election of 2005, Series B | | | | | | | | |
| 6.000%, 08/01/2025 | | | 2,500 | | | | 2,751 | |
| | | | | | | | | |
| | | | | | | | 34,113 | |
| | | | | | | | | |
| | | | | | | | 79,904 | |
| | | | | | | | | |
| Colorado – 9.1% |
| Revenue Bonds – 7.3% |
| Adams County Pollution Control, Public Service Company Colorado Project, Series A (NATL) | | | | | | | | |
| 4.375%, 09/01/2017 | | | 5,000 | | | | 4,989 | |
The accompanying notes are an integral part of the financial statements.
50 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Adams State College Auxiliary Facilities Improvement, Series A (STAID) | | | | | | | | |
| 5.500%, 05/15/2039 | | $ | 525 | | | $ | 559 | |
| Arapahoe County, Single Family Mortgage | | | | | | | | |
| Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
0.484%, 09/01/2010 § ¤ | | | 9,320 | | | | 9,312 | |
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 | | | | 1,290 | |
Colorado Educational & Cultural Facilities Authority, Cheyenne Mountain Charter School
Series A (SMO) | | | | | | | | |
| 4.750%, 06/15/2022 | | | 175 | | | | 177 | |
| Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 6.375%, 12/01/2011 § | | | 270 | | | | 283 | |
| Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
6.750%, 12/01/2016 ◊ | | | 1,500 | | | | 1,634 | |
7.250%, 12/01/2021 ◊ | | | 1,500 | | | | 1,644 | |
| Colorado Educational & Cultural Facilities Authority, Pinnacle Charter School Project | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 5.250%, 12/01/2011 § | | | 430 | | | | 447 | |
Colorado Health Facilities Authority, Catholic Health, Series C-7 (AGM) | | | | | | | | |
| 4.350%, 09/01/2020 | | | 725 | | | | 751 | |
| Colorado Health Facilities Authority, Catholic Health Initiatives, Series D | | | | | | | | |
| 5.125%, 10/01/2017 | | | 1,500 | | | | 1,671 | |
| Colorado Health Facilities Authority, Christian Living Communities Project, Series A | | | | | | | | |
| 5.250%, 01/01/2014 | | | 600 | | | | 616 | |
| 5.250%, 01/01/2015 | | | 620 | | | | 634 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.000%, 12/01/2016 | | | 500 | | | | 510 | |
| Colorado Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | | | | | | | | |
| 4.250%, 12/01/2015 | | | 1,250 | | | | 1,238 | |
| Colorado Health Facilities Authority, NCMC Income Project, Series B | | | | | | | | |
| 6.000%, 05/15/2026 | | | 1,000 | | | | 1,110 | |
| Colorado Health Facilities Authority, Parkview Medical Center | | | | | | | | |
| 5.000%, 09/01/2016 | | | 640 | | | | 664 | |
| Colorado Health Facilities Authority, Retirement Facilities, Liberty, Series B, Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
3.812%, 07/15/2020 § ¤ | | | 10,000 | | | | 6,844 | |
| Colorado Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI) | | | | | | | | |
| 5.000%, 05/15/2012 | | | 500 | | | | 517 | |
| 5.000%, 05/15/2013 | | | 405 | | | | 420 | |
| Colorado Springs Hospital, Series B (AMBAC) | | | | | | | | |
0.909%, 12/15/2024 Y | | | 4,775 | | | | 4,775 | |
| Delta County Memorial Hospital District Enterprise | | | | | | | | |
| 5.500%, 09/01/2025 | | | 1,500 | | | | 1,510 | |
E-470 Public Highway Authority
Series C, Convertible CABs (NATL) | | | | | | | | |
0.000% through 09/01/2011,
thereafter 5.000%, 09/01/2017 ◗ | | | 1,500 | | | | 1,567 | |
High Plains Metropolitan District
Series B (LOC: Compass Bank) | | | | | | | | |
| 4.375%, 12/01/2015 | | | 305 | | | | 311 | |
| Hyland Hills Metropolitan Park & Recreation District, Special Revenue (ACA) | | | | | | | | |
| 5.000%, 12/15/2015 | | | 500 | | | | 500 | |
| Mesa County, Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
0.754%, 12/01/2011 § ¤ | | | 5,500 | | | | 5,442 | |
| Montrose Memorial Hospital | | | | | | | | |
| 5.700%, 12/01/2017 | | | 2,170 | | | | 2,224 | |
| Northwest Parkway Public Highway Authority Convertible CABs, Escrowed to Maturity (AMBAC) | | | | | | | | |
0.000% through 06/15/2011,
thereafter 5.250%, 06/15/2015 ◗ § | | | 2,250 | | | | 2,465 | |
| Platte River Power Authority, Series GG (AGM) | | | | | | | | |
| 4.500%, 06/01/2017 | | | 725 | | | | 821 | |
| Walker Field Public Airport Authority | | | | | | | | |
| 5.000%, 12/01/2022 | | | 1,000 | | | | 1,000 | |
| Western State College, (STAID) | | | | | | | | |
| 5.000%, 05/15/2028 | | | 570 | | | | 597 | |
| | | | | | | | | |
| | | | | | | | 56,522 | |
| | | | | | | | | |
| General Obligations – 1.2% |
| Adams & Arapahoe Counties School District, #28J, Aurora (STAID) | | | | | | | | |
| 5.500%, 12/01/2021 | | | 1,125 | | | | 1,318 | |
| El Paso County School District #20 (STAID) | | | | | | | | |
| 5.000%, 12/15/2020 | | | 1,500 | | | | 1,752 | |
| 5.000%, 12/15/2021 | | | 2,175 | | | | 2,539 | |
| 5.000%, 12/15/2022 | | | 1,530 | | | | 1,769 | |
| North Range Metropolitan District #1 (ACA) | | | | | | | | |
| 4.300%, 12/15/2019 | | | 1,000 | | | | 764 | |
| Pueblo County School District #60 (STAID) | | | | | | | | |
| 5.000%, 12/15/2022 | | | 1,000 | | | | 1,167 | |
| | | | | | | | | |
| | | | | | | | 9,309 | |
| | | | | | | | | |
| Certificates of Participation – 0.6% |
| Colorado, Zero Coupon Bond | | | | | | | | |
2.040%, 03/01/2014 ¤ | | | 150 | | | | 139 | |
| Colorado Higher Education, Capital Construction Lease Program | | | | | | | | |
| 5.250%, 11/01/2023 | | | 1,500 | | | | 1,613 | |
| Colorado Penitentiary II | | | | | | | | |
| 4.000%, 03/01/2015 | | | 1,390 | | | | 1,504 | |
| Rangeview Library District Projects (AGC) | | | | | | | | |
| 4.500%, 12/15/2020 | | | 1,325 | | | | 1,437 | |
| | | | | | | | | |
| | | | | | | | 4,693 | |
| | | | | | | | | |
| | | | | | | | 70,524 | |
| | | | | | | | | |
| Connecticut – 0.1% |
| Revenue Bond – 0.1% |
| Connecticut Health & Educational Facilities Authority, Griffin Hospital, Series B (RAAI) | | | | | | | | |
| 5.000%, 07/01/2014 | | | 1,000 | | | | 1,046 | |
| | | | | | | | | |
| Florida – 2.4% |
| Revenue Bonds – 2.1% |
| Halifax Hospital Medical Center, Series A | | | | | | | | |
| 5.250%, 06/01/2026 | | | 2,250 | | | | 2,208 | |
Highlands County Health Facilities Authority, Adventist Health/Sunbelt, Series A,
Mandatory Put 11/17/2015 @ 100 | | | | | | | | |
| 6.500%, 11/15/2038 | | | 2,000 | | | | 2,313 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 51
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Miami-Dade County Educational Facilities Authority, University of Miami, Series A | | | | | | | | |
| 5.150%, 04/01/2023 | | $ | 2,520 | | | $ | 2,620 | |
| Miami-Dade County Water & Sewer System (AGM) | | | | | | | | |
| 5.000%, 10/01/2029 | | | 5,000 | | | | 5,174 | |
| North Brevard County Hospital, Parrish Medical Center Project | | | | | | | | |
| 5.500%, 10/01/2028 | | | 2,100 | | | | 2,162 | |
| Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community | | | | | | | | |
| 5.250%, 10/01/2013 | | | 1,400 | | | | 1,468 | |
| Vero Beach Electric, Series A (AGM) | | | | | | | | |
| 4.000%, 12/01/2019 | | | 350 | | | | 367 | |
| | | | | | | | | |
| | | | | | | | 16,312 | |
| | | | | | | | | |
| Certificate of Participation – 0.3% |
| Clay County School Board, Series B (NATL) | | | | | | | | |
| 5.000%, 07/01/2018 | | | 2,205 | | | | 2,327 | |
| | | | | | | | | |
| | | | | | | | 18,639 | |
| | | | | | | | | |
| Georgia – 1.4% |
| Revenue Bonds – 1.2% |
| Atlanta Tax Allocation, Atlantic Station Project | | | | | | | | |
| (AGC) | | | | | | | | |
| 4.375%, 12/01/2018 | | | 2,000 | | | | 2,091 | |
| DeKalb County Hospital Authority, DeKalb Medical Center Incorporated Project | | | | | | | | |
| 6.000%, 09/01/2030 | | | 1,000 | | | | 1,000 | |
| Fulton County Residential Care Facilities, Canterbury Court Project, Series A | | | | | | | | |
| 5.800%, 02/15/2018 | | | 4,500 | | | | 4,378 | |
| Glynn-Brunswick Memorial Hospital Authority, Southeast Georgia Health, Series A | | | | | | | | |
| 5.250%, 08/01/2023 | | | 2,000 | | | | 2,032 | |
| | | | | | | | | |
| | | | | | | | 9,501 | |
| | | | | | | | | |
| General Obligations – 0.2% |
| Fayette County School District Convertible CABs (AGM) | | | | | | | | |
0.000% through 09/01/2010,
thereafter 4.150%, 03/01/2014 ◗ | | | 500 | | | | 539 | |
0.000% through 09/01/2010,
thereafter 4.250%, 03/01/2015 ◗ | | | 265 | | | | 288 | |
0.000% through 09/01/2010,
thereafter 4.350%, 03/01/2016 ◗ | | | 300 | | | | 328 | |
| | | | | | | | | |
| | | | | | | | 1,155 | |
| | | | | | | | | |
| | | | | | | | 10,656 | |
| | | | | | | | | |
| Hawaii – 1.3% |
| Revenue Bonds – 1.3% |
| Hawaii Department of Budget & Finance, Special Purpose, Series C1 | | | | | | | | |
| 7.500%, 11/15/2015 | | | 5,000 | | | | 5,108 | |
| Hawaii Pacific Health Special Purpose, Series A | | | | | | | | |
| 5.250%, 07/01/2030 | | | 5,000 | | | | 4,891 | |
| | | | | | | | | |
| | | | | | | | 9,999 | |
| | | | | | | | | |
| Idaho – 0.6% |
| Revenue Bonds – 0.5% |
| Idaho Health Facilities Authority, Trinity Health Group, Series B | | | | | | | | |
| 6.000%, 12/01/2023 | | | 3,000 | | | | 3,339 | |
University of Idaho, Series B,
Mandatory Put 04/01/2018 @ 100 (AGM) | | | | | | | | |
| 4.500%, 04/01/2041 | | | 1,000 | | | | 1,045 | |
| | | | | | | | | |
| | | | | | | | 4,384 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Madison County Hospital | | | | | | | | |
| 5.000%, 09/01/2012 | | | 500 | | | | 515 | |
| | | | | | | | | |
| | | | | | | | 4,899 | |
| | | | | | | | | |
| Illinois – 13.9% |
| Revenue Bonds – 5.6% |
| Chicago, Midway Airport Project, Series C (NATL) | | | | | | | | |
| 5.500%, 01/01/2014 | | | 1,300 | | | | 1,458 | |
Granite Single Family Mortgage
Series A, Escrowed to Maturity | | | | | | | | |
| 7.750%, 10/01/2011 § | | | 300 | | | | 320 | |
| Illinois Development Finance Authority, Elgin School District | | | | | | | | |
| Zero Coupon Bond (AGM) | | | | | | | | |
3.990%, 01/01/2018 �� | | | 2,750 | | | | 2,045 | |
| Illinois Development Finance Authority, Elmhurst Community School District #205 | | | | | | | | |
| Pre-refunded 01/01/2011 @ 100 (AGM) | | | | | | | | |
6.375%, 01/01/2013 ◊ | | | 1,025 | | | | 1,055 | |
Illinois Development Finance Authority, Midwestern University
Series B, Pre-refunded 05/15/2011 @ 101 | | | | | | | | |
5.750%, 05/15/2016 ◊ | | | 350 | | | | 369 | |
| Illinois Educational Facilities Authority, Art Institute of Chicago | | | | | | | | |
| Mandatory Put 03/01/2016 @ 100 | | | | | | | | |
| 4.125%, 03/01/2030 | | | 500 | | | | 528 | |
| Mandatory Put 03/01/2017 @ 100 | | | | | | | | |
| 4.750%, 03/01/2030 | | | 1,000 | | | | 1,084 | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | | | | | | | |
5.400%, 05/15/2014 ¥ | | | 1,000 | | | | 398 | |
5.500%, 05/15/2015 ¥ | | | 1,000 | | | | 398 | |
Illinois Finance Authority, Edward Hospital
Series A (AMBAC) | | | | | | | | |
| 6.000%, 02/01/2025 | | | 1,200 | | | | 1,280 | |
| 6.000%, 02/01/2026 | | | 1,280 | | | | 1,352 | |
| 6.000%, 02/01/2028 | | | 500 | | | | 526 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 1,000 | | | | 781 | |
| Illinois Finance Authority, Friendship Village Schaumburg, Series A | | | | | | | | |
| 5.000%, 02/15/2015 | | | 2,130 | | | | 2,004 | |
| Illinois Finance Authority, Illinois Institute of Technology | | | | | | | | |
| 6.500%, 02/01/2023 | | | 1,000 | | | | 1,080 | |
| Illinois Finance Authority, Landing at Plymouth Project, Series A | | | | | | | | |
| 5.250%, 05/15/2014 | | | 1,320 | | | | 1,308 | |
| Illinois Finance Authority, OSF Healthcare Systems, Series A | | | | | | | | |
| 7.000%, 11/15/2029 | | | 4,000 | | | | 4,355 | |
Illinois Finance Authority, Peoples Gas, Light & Coke Co., Series A,
Mandatory Put 06/01/2016 @ 100 (AMBAC) | | | | | | | | |
| 4.300%, 06/01/2035 | | | 1,500 | | | | 1,541 | |
| Illinois Finance Authority, Roosevelt University | | | | | | | | |
| 5.250%, 04/01/2022 | | | 500 | | | | 498 | |
| 5.750%, 04/01/2024 | | | 4,000 | | | | 4,094 | |
| 5.400%, 04/01/2027 | | | 1,750 | | | | 1,716 | |
The accompanying notes are an integral part of the financial statements.
52 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Illinois Finance Authority, Rush University Medical Center
Series A | | | | | | | | |
| 6.750%, 11/01/2024 | | $ | 2,000 | | | $ | 2,239 | |
| Series C | | | | | | | | |
| 6.375%, 11/01/2029 | | | 1,500 | | | | 1,610 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.500%, 02/15/2014 | | | 2,430 | | | | 2,444 | |
| Illinois Health Facilities Authority, Evangelical | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 6.750%, 04/15/2012 § | | | 585 | | | | 626 | |
| Illinois Health Facilities Authority, Mercy Hospital & Medical Center | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 10.000%, 01/01/2015 § | | | 460 | | | | 560 | |
| Illinois Sports Facilities Authority (AMBAC) | | | | | | | | |
| 4.750%, 06/15/2013 | | | 1,405 | | | | 1,528 | |
| 5.100%, 06/15/2016 | | | 1,620 | | | | 1,798 | |
Metropolitan Pier & Exposition Authority, State Sales Tax
Series A (FGIC) (NATL) | | | | | | | | |
| 5.550%, 12/15/2011 | | | 675 | | | | 684 | |
| Series B, Convertible CABs (NATL) | | | | | | | | |
0.000% through 06/15/2012,
thereafter 5.200%, 06/15/2017 ◗ | | | 1,000 | | | | 1,010 | |
| Southwestern Illinois Development Authority, Anderson Hospital | | | | | | | | |
| 5.125%, 08/15/2026 | | | 2,000 | | | | 1,834 | |
| Southwestern Illinois Development Authority, Local Government Program, Triad School District #2, (NATL) | | | | | | | | |
| 5.000%, 10/01/2018 | | | 1,000 | | | | 1,101 | |
| | | | | | | | | |
| | | | | | | | 43,624 | |
| | | | | | | | | |
| General Obligations – 8.3% |
| Bolingbrook Park District, Series A (CIFG) | | | | | | | | |
| 4.500%, 01/01/2017 | | | 1,840 | | | | 2,012 | |
| Chicago, Series A, Convertible CABs (NATL) | | | | | | | | |
0.000% through 01/01/2011,
thereafter 5.300%, 01/01/2016 ◗ | | | 2,000 | | | | 2,182 | |
| Chicago City Colleges Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
2.890%, 01/01/2015 ¤ | | | 7,000 | | | | 6,152 | |
Chicago Park District, Limited Tax
Series B (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2020 | | | 5,545 | | | | 5,927 | |
Chicago Project & Refunding
Series A (FGIC) (NATL) | | | | | | | | |
| 5.250%, 01/01/2011 | | | 2,345 | | | | 2,401 | |
| Series A, Escrowed to Maturity (FGIC) | | | | | | | | |
| 5.250%, 01/01/2011 § | | | 2,655 | | | | 2,722 | |
| Cook County, Series A (NATL) | | | | | | | | |
| 6.250%, 11/15/2011 | | | 1,000 | | | | 1,061 | |
| Cook County Community Unit School District #401, Elmwood Park | | | | | | | | |
| Zero Coupon Bond (AGM) | | | | | | | | |
1.380%, 12/01/2011 ¤ | | | 3,625 | | | | 3,555 | |
| Cook County High School District #205, Thornton Township (AGC) | | | | | | | | |
| 5.250%, 12/01/2021 | | | 3,465 | | | | 3,854 | |
| Cook County High School District #209, Proviso Township (AGM) | | | | | | | | |
| 5.000%, 12/01/2016 | | | 1,000 | | | | 1,150 | |
| Cook County School District #102, La Grange | | | | | | | | |
| Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
2.224%, 12/01/2013 ¤ | | | 2,440 | | | | 2,262 | |
| Cook County School District #123, Oak Lawn | | | | | | | | |
| Zero Coupon Bond (NATL) | | | | | | | | |
3.462%, 12/01/2015 ¤ | | | 2,250 | | | | 1,868 | |
Cook County School District #88, Bellwood
Series B (AGM) | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,675 | | | | 1,833 | |
| Elk Grove Village (NATL) | | | | | | | | |
| 4.125%, 01/01/2019 | | | 1,000 | | | | 1,058 | |
| Grundy & Will Counties Community Unit School District #1 | | | | | | | | |
| 5.875%, 02/01/2019 | | | 1,550 | | | | 1,827 | |
| 5.875%, 02/01/2022 | | | 2,100 | | | | 2,392 | |
| 5.875%, 02/01/2024 | | | 2,545 | | | | 2,856 | |
| Illinois, First Series Pre-refunded 08/01/2010 @ 100 | | | | | | | | |
5.500%, 08/01/2015 ◊ | | | 4,500 | | | | 4,520 | |
| Madison & Jersey Counties Unit School District #11, Alton | | | | | | | | |
| Zero Coupon Bond (AGM) | | | | | | | | |
4.773%, 12/01/2019 ¤ | | | 2,100 | | | | 1,347 | |
| McCook | | | | | | | | |
| 5.000%, 12/01/2026 | | | 500 | | | | 526 | |
| 5.100%, 12/01/2028 | | | 1,000 | | | | 1,040 | |
| Rockford School District #205 (FGIC) (NATL) | | | | | | | | |
| 5.000%, 02/01/2014 | | | 500 | | | | 554 | |
| Southwestern Illinois Development Authority, Edwardsville Community (AGM) | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,000 | | | | 1,138 | |
| St Clair County, Alternative Revenue Source | | | | | | | | |
| 4.500%, 10/01/2020 | | | 1,000 | | | | 1,077 | |
| 5.000%, 10/01/2022 | | | 1,100 | | | | 1,206 | |
| Will & Grundy Counties Community College, District #525, Joliet Junior College | | | | | | | | |
| 6.250%, 06/01/2024 | | | 535 | | | | 623 | |
| 5.750%, 06/01/2025 | | | 1,150 | | | | 1,294 | |
| 5.750%, 06/01/2026 | | | 310 | | | | 347 | |
| Will County School District #86, Joliet | | | | | | | | |
| Zero Coupon Bond (AGM) | | | | | | | | |
3.710%, 11/01/2017 ¤ | | | 3,870 | | | | 2,955 | |
| Winnebago County School District #122, Harlem-Love Park | | | | | | | | |
| Zero Coupon Bond (AGM) | | | | | | | | |
4.080%, 01/01/2017 ¤ | | | 3,000 | | | | 2,307 | |
| | | | | | | | | |
| | | | | | | | 64,046 | |
| | | | | | | | | |
| | | | | | | | 107,670 | |
| | | | | | | | | |
| Indiana – 1.2% |
| Revenue Bonds – 1.0% |
| Anderson Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2017 | | | 710 | | | | 712 | |
| Avon Community School Building Corporation, First Mortgage (AMBAC) (STAID) | | | | | | | | |
| 4.500%, 07/15/2020 | | | 1,000 | | | | 1,051 | |
Indiana Transportation Finance Authority
Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 | | | 1,820 | | | | 1,943 | |
| Series A, Escrowed to Maturity (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 § | | | 180 | | | | 188 | |
Indiana University
Series K, Zero Coupon Bond (NATL) | | | | | | | | |
1.210%, 08/01/2011 ¤ | | | 250 | | | | 247 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 53
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Portage Township Multi-School Building Corporation, First Mortgage (NATL) (STAID) | | | | | | | | |
| 4.000%, 07/15/2018 | | $ | 1,250 | | | $ | 1,343 | |
| St. Joseph County Economic Development, Holy Cross Village, Notre Dame Project, Series A | | | | | | | | |
| 5.750%, 05/15/2016 | | | 450 | | | | 448 | |
| 5.550%, 05/15/2019 | | | 230 | | | | 222 | |
| St. Joseph County Hospital Authority, Memorial Health System, Series A (NATL) | | | | | | | | |
| 4.750%, 08/15/2012 | | | 1,000 | | | | 1,003 | |
| Zionsville Community Schools Building, First Mortgage | | | | | | | | |
| Pre-refunded 01/15/2012 @ 100 (FGIC) (STAID) | | | | | | | | |
5.750%, 07/15/2015 ◊ | | | 775 | | | | 838 | |
| | | | | | | | | |
| | | | | | | | 7,995 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Gary Sanitation District, Special Taxing District (RAAI) | | | | | | | | |
| 3.750%, 02/01/2011 | | | 1,260 | | | | 1,258 | |
| | | | | | | | | |
| | | | | | | | 9,253 | |
| | | | | | | | | |
| Iowa – 1.6% |
| Revenue Bonds – 1.6% |
| Iowa Finance Authority Retirement Community, Friendship Haven Project, Series A | | | | | | | | |
| 5.750%, 11/15/2019 | | | 500 | | | | 491 | |
| Iowa Higher Education Authority, Private College Facility, Central College Project (RAAI) | | | | | | | | |
| 5.450%, 10/01/2026 | | | 1,000 | | | | 995 | |
| Iowa Higher Education Authority, Private College Facility, Upper Iowa University Project | | | | | | | | |
5.500%, 09/01/2025 « | | | 1,250 | | | | 1,241 | |
| Iowa Higher Education Authority, Wartburg College Project Pre-refunded 10/01/2012 @ 100 (ACA) | | | | | | | | |
5.500%, 10/01/2028 ◊ | | | 2,000 | | | | 2,215 | |
| Series A | | | | | | | | |
| 4.700%, 10/01/2016 | | | 925 | | | | 828 | |
| 4.750%, 10/01/2017 | | | 1,100 | | | | 965 | |
| 4.800%, 10/01/2018 | | | 1,155 | | | | 996 | |
| 5.000%, 10/01/2023 | | | 1,475 | | | | 1,177 | |
| Iowa State Special Obligation Prison Infrastructure Fund | | | | | | | | |
4.500%, 06/15/2022 « | | | 2,000 | | | | 2,167 | |
| Muscatine Electric Escrowed to Maturity | | | | | | | | |
| 9.700%, 01/01/2013 § | | | 890 | | | | 1,003 | |
| | | | | | | | | |
| | | | | | | | 12,078 | |
| | | | | | | | | |
| Kansas – 3.0% |
| Revenue Bonds – 2.4% |
| Johnson County Residual Escrowed to Maturity, Zero Coupon Bond | | | | | | | | |
0.973%, 05/01/2012 § ¤ | | | 7,500 | | | | 7,368 | |
| Kansas Development Finance Authority, Adventist Health | | | | | | | | |
| 5.500%, 11/15/2023 | | | 2,200 | | | | 2,452 | |
| Kansas Development Finance Authority, Adventist/Sunbelt, Series D | | | | | | | | |
| 5.000%, 11/15/2024 | | | 1,400 | | | | 1,479 | |
| Kansas Development Finance Authority, Health Facilities, Hays Medical Center, Series L | | | | | | | | |
| 4.500%, 11/15/2017 | | | 1,405 | | | | 1,452 | |
Kansas Development Finance Authority, Health Facilities, Stormont-Vail Healthcare Services
Series F | | | | | | | | |
| 5.000%, 11/15/2021 | | | 500 | | | | 510 | |
| Kansas Development Finance Authority, Kansas State Projects, Series K (NATL) | | | | | | | | |
| 4.500%, 11/01/2019 | | | 1,850 | | | | 2,025 | |
| Olathe Health Facilities, Olathe Medical Center | | | | | | | | |
| 5.125%, 09/01/2021 | | | 1,000 | | | | 1,046 | |
| Olathe Senior Living Facility, Catholic Care Campus, Series A | | | | | | | | |
| 5.750%, 11/15/2013 | | | 700 | | | | 716 | |
| 5.750%, 11/15/2014 | | | 765 | | | | 783 | |
| 5.750%, 11/15/2015 | | | 820 | | | | 831 | |
Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) | | | | | | | | |
| 6.700%, 06/01/2029 | | | 185 | | | | 188 | |
| | | | | | | | | |
| | | | | | | | 18,850 | |
| | | | | | | | | |
| General Obligations – 0.6% |
| Johnson County Unified School District #512, Shawnee Mission | | | | | | | | |
| 4.875%, 10/01/2019 | | | 2,000 | | | | 2,286 | |
| Junction City, Series DU (AGM) | | | | | | | | |
| 4.100%, 09/01/2020 | | | 1,000 | | | | 1,057 | |
| Sedgwick County School District #267 (AMBAC) | | | | | | | | |
| 5.250%, 11/01/2012 | | | 1,045 | | | | 1,145 | |
| | | | | | | | | |
| | | | | | | | 4,488 | |
| | | | | | | | | |
| | | | | | | | 23,338 | |
| | | | | | | | | |
| Kentucky – 0.5% |
| Revenue Bonds – 0.5% |
Kentucky Economic Development Finance Authority, Louisville Arena Project, Series A-1 (AGC) | | | | | | | | |
| 5.750%, 12/01/2028 | | | 2,000 | | | | 2,169 | |
| Kentucky Turnpike Authority | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 6.000%, 07/01/2011 § | | | 295 | | | | 307 | |
Louisville/Jefferson County Metropolitan Government College, Bellarmine University
Series A | | | | | | | | |
| 6.000%, 05/01/2028 | | | 1,135 | | | | 1,180 | |
| | | | | | | | | |
| | | | | | | | 3,656 | |
| | | | | | | | | |
| Louisiana – 0.3% |
| Revenue Bond – 0.0% |
| Louisiana Local Government Environmental Facilities, Community Development Authority (AMT) | | | | | | | | |
| 6.650%, 01/01/2025 | | | 435 | | | | 430 | |
| | | | | | | | | |
| General Obligations – 0.3% |
| Calcasieu Parish School District #23, Public School Improvement | | | | | | | | |
| 4.600%, 02/15/2020 | | | 500 | | | | 509 | |
| Louisiana, Series B (CIFG) | | | | | | | | |
| 5.000%, 07/15/2015 | | | 1,300 | | | | 1,483 | |
| | | | | | | | | |
| | | | | | | | 1,992 | |
| | | | | | | | | |
| | | | | | | | 2,422 | |
| | | | | | | | | |
| Maine – 0.4% |
| Revenue Bond – 0.1% |
| Maine Health & Higher Educational Facilities Authority, Series B (FGIC) (NATL) | | | | | | | | |
| 4.125%, 07/01/2018 | | | 740 | | | | 793 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Maine Municipal Bond Bank, Series B (AGM) | | | | | | | | |
| 5.750%, 11/01/2010 | | | 2,000 | | | | 2,036 | |
| | | | | | | | | |
| | | | | | | | 2,829 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
54 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Maryland – 0.1% |
| Revenue Bonds – 0.1% |
| Westminster Educational Facilities, McDaniel College | | | | | | | | |
| 5.000%, 11/01/2013 | | $ | 350 | | | $ | 380 | |
| 4.000%, 11/01/2015 | | | 700 | | | | 732 | |
| | | | | | | | | |
| | | | | | | | 1,112 | |
| | | | | | | | | |
| Massachusetts – 3.0% |
| Revenue Bonds – 2.8% |
Massachusetts Bay Transportation Authority
Series A (COMGTY) | | | | | | | | |
| 6.250%, 03/01/2012 | | | 1,875 | | | | 2,048 | |
Massachusetts Development Finance Agency, Health Care Facilities, AdventCare Project
Series A | | | | | | | | |
| 6.650%, 10/15/2028 | | | 2,500 | | | | 2,269 | |
| Massachusetts Educational Finance Authority, Issue I, Series B (AMT) | | | | | | | | |
| 4.800%, 01/01/2017 | | | 1,550 | | | | 1,597 | |
Massachusetts Health & Educational Facilities Authority, Berkshire Health System
Series F (AGC) | | | | | | | | |
| 5.000%, 10/01/2015 | | | 2,000 | | | | 2,181 | |
Massachusetts Health & Educational Facilities Authority, Partners Healthcare System
Series A (NATL) | | | | | | | | |
| 5.100%, 07/01/2010 | | | 3,000 | | | | 3,000 | |
| Massachusetts Health & Educational Facilities Authority, Springfield College | | | | | | | | |
| 5.125%, 10/15/2022 | | | 500 | | | | 530 | |
| 5.500%, 10/15/2026 | | | 2,595 | | | | 2,757 | |
| Massachusetts Health & Educational Facilities Authority, Suffolk University, Series A | | | | | | | | |
| 6.000%, 07/01/2024 | | | 3,000 | | | | 3,236 | |
| Massachusetts Port Authority | | | | | | | | |
| Escrowed to Maturity | | | | | | | | |
| 13.000%, 07/01/2013 § | | | 2,485 | | | | 2,943 | |
| Massachusetts, Special Obligation, Series A | | | | | | | | |
| 5.500%, 06/01/2013 | | | 1,000 | | | | 1,129 | |
| | | | | | | | | |
| | | | | | | | 21,690 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Springfield, State Qualified Municipal Purpose Loan (AGM) (STAID) | | | | | | | | |
| 4.500%, 08/01/2020 | | | 1,400 | | | | 1,501 | |
| | | | | | | | | |
| | | | | | | | 23,191 | |
| | | | | | | | | |
| Michigan – 2.1% |
| Revenue Bonds – 1.8% |
| Detroit Water Supply System Escrowed to Maturity (FGIC) | | | | | | | | |
| 6.250%, 07/01/2012 § | | | 170 | | | | 178 | |
| Kalamazoo Hospital Finance Authority, Bronson Methodist Hospital, Series A (AGM) | | | | | | | | |
| 5.000%, 05/15/2020 | | | 2,675 | | | | 2,840 | |
| Michigan Hospital Finance Authority, Ascension Health Services Group, Series B | | | | | | | | |
| 5.000%, 11/15/2023 | | | 3,540 | | | | 3,755 | |
Michigan Hospital Finance Authority, Henry Ford Health Systems
Series A, Pre-refunded 03/01/2013 @ 100 | | | | | | | | |
5.500%, 03/01/2015 ◊ | | | 3,150 | | | | 3,523 | |
Michigan Municipal Board Authority, Local Government Loan Program, Group A
Series B (AMBAC) | | | | | | | | |
| 5.000%, 12/01/2018 | | | 600 | | | | 592 | |
| Romulus Economic Development Corporation, Partnership Project Escrowed to Maturity | | | | | | | | |
| 7.000%, 11/01/2015 § | | | 1,300 | | | | 1,631 | |
| Western Michigan University (AGM) | | | | | | | | |
| 5.000%, 11/15/2023 | | | 1,300 | | | | 1,381 | |
| | | | | | | | | |
| | | | | | | | 13,900 | |
| | | | | | | | | |
| General Obligations – 0.3% |
| Algonac Community Schools, School Building & Site, Series I (AGM) (MQSBLF) | | | | | | | | |
| 4.000%, 05/01/2019 | | | 790 | | | | 825 | |
| Constantine Public Schools (MQSBLF) | | | | | | | | |
| 5.000%, 05/01/2016 | | | 1,075 | | | | 1,159 | |
| | | | | | | | | |
| | | | | | | | 1,984 | |
| | | | | | | | | |
| | | | | | | | 15,884 | |
| | | | | | | | | |
| Minnesota – 1.7% |
| Revenue Bonds – 1.7% |
| Aitkin Health Care Facilities, Riverwood Healthcare Center | | | | | | | | |
| 5.375%, 02/01/2017 | | | 1,590 | | | | 1,609 | |
| Minneapolis & St. Paul Metropolitan Airports Commission, Series A (NATL) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,165 | | | | 1,208 | |
| Minneapolis Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.375%, 11/15/2023 | | | 2,000 | | | | 2,265 | |
| Minneapolis Hospital, St. Marys Hospital & Rehabilitation Center Escrowed to Maturity | | | | | | | | |
| 10.000%, 06/01/2013 § | | | 430 | | | | 499 | |
| Minnesota Agricultural & Economic Development Board, Health Care System, Series A | | | | | | | | |
| 5.875%, 11/15/2011 | | | 2,135 | | | | 2,187 | |
Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2020 | | | 1,255 | | | | 1,288 | |
| 5.500%, 05/01/2021 | | | 815 | | | | 834 | |
Minnesota Higher Education Facilities Authority, College of Art & Design, Series 6-K | | | | | | | | |
| 5.000%, 05/01/2012 | | | 295 | | | | 312 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, Series C | | | | | | | | |
| 5.250%, 12/01/2011 | | | 1,010 | | | | 1,025 | |
St. Paul Housing & Redevelopment Authority, Allina Health System
Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 1,235 | | | | 1,321 | |
| Series A-1 | | | | | | | | |
| 5.000%, 11/15/2024 | | | 1,000 | | | | 1,030 | |
| | | | | | | | | |
| | | | | | | | 13,578 | |
| | | | | | | | | |
| 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 | | | | 1,537 | |
| | | | | | | | | |
| Missouri – 1.9% |
| Revenue Bonds – 1.8% |
| Grundy County Industrial Development Authority, Health Facilities, Wright Memorial Hospital | | | | | | | | |
| 5.600%, 09/01/2021 | | | 1,000 | | | | 999 | |
| Hannibal Industrial Development Authority, Health Facilities, Hannibal Regional Hospital | | | | | | | | |
| 4.350%, 03/01/2014 | | | 1,405 | | | | 1,442 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 55
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Kansas City Special Obligation, East Village Project, Series B (AGC) | | | | | | | | |
| 5.000%, 04/15/2022 | | $ | 505 | | | $ | 555 | |
| Missouri Development Finance Board Infrastructure Facilities, Independence Electric System Project, Series D | | | | | | | | |
| 5.625%, 06/01/2029 | | | 1,250 | | | | 1,274 | |
| Missouri Development Finance Board Infrastructure Facilities, Independence-Crackerneck Creek, Series B | | | | | | | | |
| 5.125%, 03/01/2022 | | | 2,000 | | | | 2,077 | |
| Missouri Development Finance Board, Midwest Research Institute Project | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,130 | | | | 1,150 | |
| Missouri Health & Educational Facilities Authority, Senior Living Facilities, Lutheran, Series B | | | | | | | | |
| 4.350%, 02/01/2015 | | | 850 | | | | 869 | |
| 4.375%, 02/01/2016 | | | 930 | | | | 933 | |
| Missouri Joint Municipal Electric Utilities, Commission Power Project, Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2018 | | | 2,000 | | | | 2,157 | |
| Missouri Joint Municipal Electric Utilities, Commission Power Project, Plum Point Project (NATL) | | | | | | | | |
| 4.200%, 01/01/2018 | | | 1,000 | | | | 1,000 | |
| Osage Beach Tax Increment, Prewitts Point Project | | | | | | | | |
| 4.800%, 05/01/2016 | | | 1,650 | | | | 1,553 | |
| | | | | | | | | |
| | | | | | | | 14,009 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Missouri Development Finance Board Infrastructure Facilities, Independence-Centerpoint, Series F | | | | | | | | |
| 5.375%, 04/01/2024 | | | 1,000 | | | | 1,019 | |
| | | | | | | | | |
| | | | | | | | 15,028 | |
| | | | | | | | | |
| Montana – 0.7% |
| Revenue Bonds – 0.7% |
| Montana Facility Finance Authority, Sisters of Charity of Leavenworth, Series B | | | | | | | | |
| 5.000%, 01/01/2024 | | | 2,500 | | | | 2,576 | |
| Montana Facility Finance Authority, Senior Living, St. Johns Lutheran Ministries Project, Series A | | | | | | | | |
| 5.750%, 05/15/2016 | | | 1,800 | | | | 1,729 | |
| 6.000%, 05/15/2025 | | | 1,675 | | | | 1,505 | |
| | | | | | | | | |
| | | | | | | | 5,810 | |
| | | | | | | | | |
| Nebraska – 1.4% |
| Revenue Bonds – 1.4% |
| Douglas County Hospital Authority #2, Immanuel Obligated Group | | | | | | | | |
| 5.125%, 01/01/2023 | | | 1,130 | | | | 1,149 | |
| Douglas County Hospital Authority #2, Nebraska Medical Center, Clarkson Regional Health Guaranty | | | | | | | | |
| 5.000%, 11/15/2011 | | | 2,860 | | | | 2,993 | |
| Douglas County Hospital Authority #3, Methodist Health | | | | | | | | |
| 5.750%, 11/01/2028 | | | 1,000 | | | | 1,025 | |
| Douglas County Zoo Facilities, Omaha’s Henry Doorly Zoo Project | | | | | | | | |
| 4.750%, 09/01/2018 | | | 520 | | | | 545 | |
| Lancaster County Hospital Authority #1, BryanLG Medical Center Project | | | | | | | | |
| 4.000%, 06/01/2018 | | | 2,000 | | | | 1,943 | |
| Lancaster County Hospital Authority #1, Immanuel Obligated Group | | | | | | | | |
| 4.750%, 01/01/2019 | | | 735 | | | | 748 | |
| 5.125%, 01/01/2023 | | | 1,000 | | | | 1,017 | |
| Nebraska Investment Finance Authority, Great Plains Regional Medical Center Project (RAAI) | | | | | | | | |
| 4.700%, 11/15/2011 | | | 500 | | | | 522 | |
| 4.800%, 11/15/2012 | | | 500 | | | | 528 | |
| 4.900%, 11/15/2013 | | | 600 | | | | 629 | |
| | | | | | | | | |
| | | | | | | | 11,099 | |
| | | | | | | | | |
| Nevada – 0.3% |
| Revenue Bonds – 0.3% |
| Carson City Hospital, Carson-Tahoe Hospital | | | | | | | | |
| 5.750%, 09/01/2011 | | | 550 | | | | 568 | |
| 5.750%, 09/01/2012 | | | 580 | | | | 611 | |
| Escrowed to Maturity | | | | | | | | |
| 5.750%, 09/01/2011 § | | | 450 | | | | 477 | |
| 5.750%, 09/01/2012 § | | | 475 | | | | 524 | |
| | | | | | | | | |
| | | | | | | | 2,180 | |
| | | | | | | | | |
| New Hampshire – 0.5% |
| Revenue Bonds – 0.5% |
| New Hampshire Health & Education Facilities Authority, Covenant Health | | | | | | | | |
| 5.375%, 07/01/2024 | | | 1,250 | | | | 1,266 | |
| New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital | | | | | | | | |
| 5.500%, 07/01/2025 | | | 1,000 | | | | 950 | |
New Hampshire Municipal Bond Bank
Series A (NATL) | | | | | | | | |
| 4.500%, 02/15/2020 | | | 1,300 | | | | 1,426 | |
| | | | | | | | | |
| | | | | | | | 3,642 | |
| | | | | | | | | |
| New Jersey – 0.3% |
| Revenue Bond – 0.3% |
| New Jersey Economic Development Authority, Cigarette Tax | | | | | | | | |
| 5.500%, 06/15/2016 | | | 2,000 | | | | 2,098 | |
| | | | | | | | | |
| New York – 1.6% |
| Revenue Bonds – 0.9% |
| Long Island Power Authority, Series B | | | | | | | | |
| 5.250%, 12/01/2013 | | | 4,000 | | | | 4,516 | |
| Troy Capital Resource, Rensselaer Polytechnic Institute Project, Series B | | | | | | | | |
| 5.000%, 09/01/2019 | | | 1,200 | | | | 1,309 | |
| 5.000%, 09/01/2021 | | | 1,000 | | | | 1,078 | |
| | | | | | | | | |
| | | | | | | | 6,903 | |
| | | | | | | | | |
| General Obligations – 0.7% |
New York
Series A | | | | | | | | |
| 5.750%, 08/01/2015 | | | 3,220 | | | | 3,526 | |
| Series D | | | | | | | | |
| 5.500%, 06/01/2012 | | | 2,000 | | | | 2,179 | |
| | | | | | | | | |
| | | | | | | | 5,705 | |
| | | | | | | | | |
| | | | | | | | 12,608 | |
| | | | | | | | | |
| North Carolina – 2.5% |
| Revenue Bonds – 2.4% |
| North Carolina Capital Facilities Finance Agency Education Facilities, Meredith College | | | | | | | | |
| 5.250%, 06/01/2020 | | | 900 | | | | 933 | |
North Carolina Eastern Power Agency
Series A (AGC) | | | | | | | | |
| 5.250%, 01/01/2022 | | | 1,700 | | | | 1,846 | |
The accompanying notes are an integral part of the financial statements.
56 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Series D | | | | | | | | |
| 5.375%, 01/01/2013 | | $ | 2,955 | | | $ | 3,227 | |
North Carolina Medical Care Commission Health Care Facilities, First Mortgage Presbyterian
Series B | | | | | | | | |
| 4.875%, 10/01/2013 | | | 2,035 | | | | 2,037 | |
| 5.000%, 10/01/2014 | | | 2,120 | | | | 2,126 | |
North Carolina Municipal Power Agency #1, Catawba Electric
Series A | | | | | | | | |
| 5.000%, 01/01/2026 | | | 5,940 | | | | 6,212 | |
| Series A (AGM) | | | | | | | | |
| 5.250%, 01/01/2016 | | | 2,000 | | | | 2,174 | |
| | | | | | | | | |
| | | | | | | | 18,555 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Randolph County (AMBAC) | | | | | | | | |
| 5.000%, 02/01/2018 | | | 815 | | | | 905 | |
| | | | | | | | | |
| | | | | | | | 19,460 | |
| | | | | | | | | |
| North Dakota – 0.2% |
| Revenue Bond – 0.2% |
| Ward County Health Care Facility, Trinity Obligated Group | | | | | | | | |
| 5.000%, 07/01/2014 | | | 1,180 | | | | 1,222 | |
| | | | | | | | | |
| Ohio – 1.3% |
| Revenue Bonds – 0.7% |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.500%, 08/15/2024 | | | 1,230 | | | | 1,224 | |
| Miami County Hospital Facilities, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2016 | | | 750 | | | | 812 | |
| Ohio Higher Education Facilities, John Carroll University Project | | | | | | | | |
| 4.000%, 04/01/2014 | | | 1,135 | | | | 1,193 | |
| 4.500%, 04/01/2015 | | | 1,000 | | | | 1,071 | |
| Ohio Higher Education Facilities, Xavier University | | | | | | | | |
| 4.000%, 05/01/2018 | | | 980 | | | | 1,025 | |
Ohio Water Development Authority
Escrowed to Maturity | | | | | | | | |
| 9.375%, 12/01/2010 § | | | 95 | | | | 98 | |
| | | | | | | | | |
| | | | | | | | 5,423 | |
| | | | | | | | | |
| General Obligations – 0.5% |
| Barberton City School District (OSDCEP) | | | | | | | | |
| 4.750%, 12/01/2021 | | | 1,260 | | | | 1,375 | |
| Huber Heights School District | | | | | | | | |
| 4.750%, 12/01/2025 | | | 595 | | | | 623 | |
| Mason City School District (AGM) | | | | | | | | |
| 4.375%, 12/01/2019 | | | 1,095 | | | | 1,195 | |
| Richland County, Limited Tax, Correctional Facilities Improvement (AGC) | | | | | | | | |
| 5.875%, 12/01/2024 | | | 500 | | | | 564 | |
| | | | | | | | | |
| | | | | | | | 3,757 | |
| | | | | | | | | |
| Certificate of Participation – 0.1% |
| Akron (AGC) | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,000 | | | | 1,133 | |
| | | | | | | | | |
| | | | | | | | 10,313 | |
| | | | | | | | | |
| Oklahoma – 0.7% |
| Revenue Bonds – 0.7% |
Cherokee County Economic Development Authority, Series A
Escrowed to Maturity,
Zero Coupon Bond (AMBAC) | | | | | | | | |
0.697%, 11/01/2011 § ¤ | | | 3,340 | | | | 3,309 | |
| McClain County Economic Development Authority, Educational Facilities Lease, Newcastle Public Schools Project | | | | | | | | |
| 5.000%, 09/01/2011 | | | 345 | | | | 358 | |
| 5.000%, 09/01/2012 | | | 355 | | | | 375 | |
| 4.125%, 09/01/2013 | | | 250 | | | | 261 | |
| Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project (AMT) | | | | | | | | |
| 5.750%, 01/01/2023 | | | 1,430 | | | | 1,314 | |
| | | | | | | | | |
| | | | | | | | 5,617 | |
| | | | | | | | | |
| Oregon – 0.2% |
| General Obligation – 0.2% |
| Yamhill County School District #40, McMinnville | | | | | | | | |
| (AGM) (SBG) | | | | | | | | |
| 5.000%, 06/15/2019 | | | 1,415 | | | | 1,607 | |
| | | | | | | | | |
| Pennsylvania – 1.5% |
| Revenue Bonds – 1.3% |
| Allegheny County Hospital, University of Pittsburgh Medical Center, Series B | | | | | | | | |
| 5.000%, 06/15/2018 | | | 3,000 | | | | 3,284 | |
| Delaware County College Authority, Neumann College | | | | | | | | |
| 5.250%, 10/01/2020 | | | 535 | | | | 562 | |
| 5.375%, 10/01/2021 | | | 565 | | | | 592 | |
| Delaware County Hospital Authority, Crozer-Chester Medical Center (RAAI) | | | | | | | | |
| 5.000%, 12/15/2015 | | | 1,275 | | | | 1,286 | |
| 5.000%, 12/15/2017 | | | 1,405 | | | | 1,359 | |
| Montgomery County Industrial Development Authority, Whitemarsh Continuing Care | | | | | | | | |
| 6.125%, 02/01/2028 | | | 1,000 | | | | 797 | |
Westmoreland County Industrial Development Authority, Retirement Community, Redstone
Series A | | | | | | | | |
| 5.375%, 01/01/2014 | | | 1,100 | | | | 1,097 | |
| 5.500%, 01/01/2016 | | | 1,200 | | | | 1,175 | |
| | | | | | | | | |
| | | | | | | | 10,152 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Bethel Park School District (STAID) | | | | | | | | |
| 4.125%, 08/01/2020 | | | 1,315 | | | | 1,371 | |
| | | | | | | | | |
| | | | | | | | 11,523 | |
| | | | | | | | | |
| 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 | | | | 1,055 | |
| | | | | | | | | |
| General Obligation – 0.5% |
Puerto Rico Commonwealth, Public Improvement
Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 4,000 | | | | 4,061 | |
| | | | | | | | | |
| | | | | | | | 5,116 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 57
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| South Carolina – 1.1% |
| Revenue Bonds – 1.1% |
| Charleston Educational Excellence Financing Corporation, Charleston County School District Project | | | | | | | | |
| 5.000%, 12/01/2013 | | $ | 2,000 | | | $ | 2,233 | |
| Lexington County Health Services District | | | | | | | | |
| Pre-refunded 11/01/2013 @ 100 | | | | | | | | |
5.500%, 11/01/2023 ◊ | | | 2,000 | | | | 2,287 | |
| South Carolina Jobs Economic Development Authority, Palmetto Health Alliance | | | | | | | | |
| 5.000%, 08/01/2018 | | | 1,000 | | | | 1,028 | |
| Series A | | | | | | | | |
| 6.000%, 08/01/2013 | | | 830 | | | | 917 | |
| Series C | | | | | | | | |
| 6.000%, 08/01/2013 | | | 2,000 | | | | 2,176 | |
| | | | | | | | | |
| | | | | | | | 8,641 | |
| | | | | | | | | |
| South Dakota – 1.2% |
| Revenue Bonds – 0.9% |
| South Dakota Health & Educational Facilities Authority, Sanford Health | | | | | | | | |
| 5.000%, 11/01/2024 | | | 1,000 | | | | 1,015 | |
| South Dakota Health & Educational Facilities Authority, Vocational Education Program (AGC) | | | | | | | | |
| 5.125%, 08/01/2028 | | | 1,500 | | | | 1,586 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 4.750%, 09/01/2011 | | | 530 | | | | 546 | |
| 5.000%, 09/01/2012 | | | 1,000 | | | | 1,054 | |
| 5.000%, 09/01/2013 | | | 1,000 | | | | 1,053 | |
| 5.000%, 09/01/2025 | | | 1,770 | | | | 1,724 | |
| | | | | | | | | |
| | | | | | | | 6,978 | |
| | | | | | | | | |
| Certificate of Participation – 0.3% |
| Deadwood, Series 2005 (ACA) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 2,385 | | | | 2,382 | |
| | | | | | | | | |
| | | | | | | | 9,360 | |
| | | | | | | | | |
| Tennessee – 4.3% |
| Revenue Bonds – 4.0% |
Chattanooga Health, Educational & Housing Facilities Board, Catholic Health Initiatives
Series D | | | | | | | | |
| 6.125%, 10/01/2028 | | | 2,265 | | | | 2,526 | |
| Claiborne County Industrial Development Board, Lincoln Memorial University Project | | | | | | | | |
| 6.125%, 10/01/2029 | | | 3,460 | | | | 3,557 | |
| Jackson Hospital, Jackson-Madison Project | | | | | | | | |
| 5.250%, 04/01/2023 | | | 4,000 | | | | 4,108 | |
| Memphis-Shelby County Sports Authority, Memphis Arena Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.125%, 11/01/2024 | | | 4,430 | | | | 4,598 | |
| Series B | | | | | | | | |
| 5.500%, 11/01/2020 | | | 1,000 | | | | 1,109 | |
| 5.250%, 11/01/2025 | | | 1,860 | | | | 1,934 | |
| Series C (NATL) | | | | | | | | |
| 5.000%, 11/01/2017 | | | 3,175 | | | | 3,464 | |
| Metropolitan Government of Nashville & Davidson County, Water Sewer Escrowed to Maturity | | | | | | | | |
| 6.400%, 04/01/2011 § | | | 1,030 | | | | 1,078 | |
| Shelby County Health, Educational & Housing Facility Board, Methodist Healthcare | | | | | | | | |
| Pre-refunded 09/01/2012 @ 100 | | | | | | | | |
6.000%, 09/01/2016 ◊ | | | 935 | | | | 1,044 | |
6.000%, 09/01/2016 ◊ | | | 565 | | | | 630 | |
| Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health System Project (RAAI) | | | | | | | | |
| 5.000%, 09/01/2016 | | | 2,000 | | | | 2,008 | |
| Escrowed to Maturity | | | | | | | | |
| 6.250%, 09/01/2011 § | | | 1,465 | | | | 1,563 | |
| 6.250%, 09/01/2012 § | | | 1,085 | | | | 1,201 | |
| Pre-refunded 09/01/2012 @ 101 | | | | | | | | |
6.500%, 09/01/2013 ◊ | | | 2,215 | | | | 2,485 | |
| | | | | | | | | |
| | | | | | | | 31,305 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Memphis (NATL) | | | | | | | | |
| 5.000%, 10/01/2016 | | | 2,000 | | | | 2,314 | |
| | | | | | | | | |
| | | | | | | | 33,619 | |
| | | | | | | | | |
| Texas – 9.4% |
| Revenue Bonds – 3.9% |
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 | | | | 1,051 | |
| El Paso Water & Sewer, Series A (AGM) | | | | | | | | |
| 4.000%, 03/01/2018 | | | 650 | | | | 685 | |
| Grapevine Industrial Development Corporation, Air Cargo (AMT) | | | | | | | | |
| 6.500%, 01/01/2024 | | | 475 | | | | 468 | |
Gregg County Health Facilities Development, Good Shepherd Medical Center Project
Series A | | | | | | | | |
| 5.000%, 10/01/2013 | | | 1,230 | | | | 1,288 | |
| Harris County Health Facilities Development Corporation, Memorial Hermann Healthcare System, Series B | | | | | | | | |
| 7.125%, 12/01/2031 | | | 1,950 | | | | 2,200 | |
Houston Health Facilities Development Corporation, Buckingham Senior Living Community
Series A, Pre-refunded 02/15/2014 @ 101 | | | | | | | | |
7.000%, 02/15/2023 ◊ | | | 2,000 | | | | 2,406 | |
| League City Waterworks & Sewer System (AGM) | | | | | | | | |
| 4.000%, 02/15/2018 | | | 1,230 | | | | 1,316 | |
| 4.375%, 02/15/2023 | | | 1,315 | | | | 1,358 | |
| Lubbock Educational Facilities Authority, Lubbock Christian University | | | | | | | | |
| 5.000%, 11/01/2016 | | | 1,000 | | | | 1,058 | |
| North Texas Tollway Authority, First Tier, Series A | | | | | | | | |
| 6.000%, 01/01/2024 | | | 2,500 | | | | 2,721 | |
Series E-3,
Mandatory Put 01/01/2016 @ 100 | | | | | | | | |
| 5.750%, 01/01/2038 | | | 3,000 | | | | 3,369 | |
| Odessa Housing Finance Corporation, Residual Values Escrowed to Maturity, Zero Coupon Bond (NATL) | | | | | | | | |
0.967%, 06/01/2012 § ¤ | | | 1,465 | | | | 1,438 | |
| San Leanna Educational Facilities Corporation Higher Education, Saint Edwards University Project | | | | | | | | |
| 5.000%, 06/01/2019 | | | 575 | | | | 592 | |
The accompanying notes are an integral part of the financial statements.
58 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Tarrant County Cultural Education Facilities Finance Corporation, Retirement Facility, Northwest Senior Housing, Edgemere Project
Series A | | | | | | | | |
| 5.750%, 11/15/2014 | | $ | 1,235 | | | $ | 1,268 | |
Tarrant County Cultural Education Facilities, Finance Corporation, Retirement Facility, Stayton at Museum Way, Series C-2 | | | | | | | | |
| 6.500%, 11/15/2014 | | | 3,000 | | | | 2,979 | |
| Texas Transportation Commission, First Tier | | | | | | | | |
| 5.000%, 04/01/2017 | | | 2,000 | | | | 2,312 | |
| Travis County Health Facilities, Development Corporation Retirement Facilities, Querencia Barton Creek Project | | | | | | | | |
| 5.250%, 11/15/2017 | | | 1,000 | | | | 951 | |
| 5.500%, 11/15/2025 | | | 900 | | | | 818 | |
| Tyler Health Facilities Development Corporation, Mother Frances Hospital | | | | | | | | |
| 5.250%, 07/01/2012 | | | 1,000 | | | | 1,041 | |
| Victoria Utilities Systems (AMBAC) | | | | | | | | |
| 4.400%, 12/01/2019 | | | 1,000 | | | | 1,071 | |
| | | | | | | | | |
| | | | | | | | 30,390 | |
| | | | | | | | | |
| General Obligations – 5.5% |
| Alvin Independent School District, Schoolhouse (PSFG) | | | | | | | | |
| 4.125%, 02/15/2019 | | | 1,110 | | | | 1,189 | |
| Brownsville (NATL) | | | | | | | | |
| 5.000%, 02/15/2017 | | | 2,125 | | | | 2,325 | |
| Corinth (NATL) | | | | | | | | |
| 4.500%, 02/15/2019 | | | 1,180 | | | | 1,270 | |
| Dallas (NATL) | | | | | | | | |
| 4.500%, 02/15/2027 | | | 5,000 | | | | 5,118 | |
Dallas County Utilities & Reclamation District
Series A (AMBAC) | | | | | | | | |
| 5.150%, 02/15/2022 | | | 5,715 | | | | 5,875 | |
| El Paso County (NATL) | | | | | | | | |
| 5.000%, 02/15/2018 | | | 2,440 | | | | 2,819 | |
| Elgin Independent School District, School Building (PSFG) | | | | | | | | |
| 4.375%, 08/01/2019 | | | 1,120 | | | | 1,233 | |
| Fort Bend Independent School District | | | | | | | | |
| 4.550%, 02/15/2025 | | | 2,000 | | | | 2,100 | |
| Frisco (AMBAC) | | | | | | | | |
| 4.500%, 02/15/2016 | | | 2,045 | | | | 2,288 | |
| Pre-refunded 02/15/2011 @ 100 (FGIC) (NATL) | | | | | | | | |
5.000%, 02/15/2018 ◊ | | | 1,125 | | | | 1,158 | |
5.000%, 02/15/2019 ◊ | | | 1,675 | | | | 1,724 | |
| Giddings Independent School District, School Building Series A (PSFG) | | | | | | | | |
| 4.250%, 02/15/2019 | | | 875 | | | | 954 | |
| Grand Prairie Independent School District, School Building Series A (PSFG) | | | | | | | | |
| 4.500%, 02/15/2018 | | | 635 | | | | 711 | |
| Howard County Junior College District (AMBAC) | | | | | | | | |
| 4.250%, 02/15/2018 | | | 715 | | | | 768 | |
| Kaufman County (AGM) | | | | | | | | |
| 5.000%, 02/15/2017 | | | 1,000 | | | | 1,059 | |
| Mansfield Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2022 | | | 770 | | | | 841 | |
| North Harris Montgomery Community College District (FGIC) (NATL) | | | | | | | | |
| 5.375%, 02/15/2015 | | | 95 | | | | 101 | |
| Northwest Texas Independent School District (PSFG) | | | | | | | | |
| 4.500%, 02/15/2026 | | | 1,000 | | | | 1,031 | |
| Plano Independent School District, School Building Series A | | | | | | | | |
| 5.000%, 02/15/2025 | | | 1,000 | | | | 1,096 | |
| San Angelo, Series A (NATL) | | | | | | | | |
| 4.400%, 02/15/2019 | | | 875 | | | | 949 | |
| San Antonio | | | | | | | | |
| 4.125%, 02/01/2019 | | | 1,000 | | | | 1,073 | |
| 4.250%, 02/01/2020 | | | 1,140 | | | | 1,217 | |
| Sunnyvale School District, School Building (PSFG) | | | | | | | | |
| 4.400%, 02/15/2020 | | | 870 | | | | 946 | |
| Teague Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2019 | | | 2,210 | | | | 2,551 | |
| Texas, Water Financial Assistance, Series A | | | | | | | | |
| 5.000%, 08/01/2017 | | | 1,500 | | | | 1,754 | |
| Victoria Independent School District, School Building (PSFG) | | | | | | | | |
| 5.000%, 02/15/2018 | | | 500 | | | | 575 | |
| | | | | | | | | |
| | | | | | | | 42,725 | |
| | | | | | | | | |
| | | | | | | | 73,115 | |
| | | | | | | | | |
| Utah – 0.1% |
| Revenue Bond – 0.1% |
| South Jordan, Sales Tax | | | | | | | | |
| Pre-refunded 08/15/2011 @ 100 (AMBAC) | | | | | | | | |
5.500%, 08/15/2018 ◊ | | | 1,000 | | | | 1,058 | |
| | | | | | | | | |
| Washington – 4.5% |
| Revenue Bonds – 1.6% |
| Snohomish County Housing Authority | | | | | | | | |
| 6.300%, 04/01/2016 | | | 700 | | | | 705 | |
| Washington Health Care Facilities, Washington Health Services | | | | | | | | |
| 6.250%, 07/01/2024 | | | 3,125 | | | | 3,308 | |
| 6.750%, 07/01/2029 | | | 2,000 | | | | 2,140 | |
| Washington Higher Education Facilities Authority, Whitworth University Project | | | | | | | | |
| 5.125%, 10/01/2024 | | | 3,250 | | | | 3,270 | |
| Washington Housing Finance Commission, Skyline at First Hill Project, Series B | | | | | | | | |
| 5.100%, 01/01/2013 | | | 3,000 | | | | 2,942 | |
| | | | | | | | | |
| | | | | | | | 12,365 | |
| | | | | | | | | |
| General Obligations – 2.9% |
| Clark County School District #37, Vancouver | | | | | | | | |
| (AGM) | | | | | | | | |
| 5.250%, 12/01/2014 | | | 1,515 | | | | 1,750 | |
| King County School District #401, Highline Public Schools (AGM) (SBG) | | | | | | | | |
| 5.250%, 12/01/2025 | | | 500 | | | | 549 | |
| King County School District #412, Shoreline (SBG) | | | | | | | | |
| 5.750%, 12/01/2021 | | | 265 | | | | 311 | |
| Snohomish County, Limited Tax (NATL) | | | | | | | | |
| 5.375%, 12/01/2019 | | | 4,440 | | | | 4,657 | |
| Pre-refunded 12/01/2011 @ 100 (NATL) | | | | | | | | |
5.375%, 12/01/2019 ◊ | | | 560 | | | | 598 | |
| Spokane County School District #356, Central Valley Series B, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
2.212%, 12/01/2014 ¤ | | | 5,690 | | | | 5,163 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 59
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Spokane County School District #81, Spokane (NATL) | | | | | | | | |
| 5.000%, 06/01/2016 | | $ | 1,000 | | | $ | 1,128 | |
| Washington, Series C | | | | | | | | |
| 5.500%, 07/01/2014 | | | 2,275 | | | | 2,640 | |
Series S-5, Zero Coupon Bond (FGIC) (NATL) | | | | | | | | |
2.570%, 01/01/2016 ¤ | | | 3,000 | | | | 2,607 | |
Washington, Various Purpose, Series R-A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2025 | | | 3,000 | | | | 3,201 | |
| | | | | | | | | |
| | | | | | | | 22,604 | |
| | | | | | | | | |
| | | | | | | | 34,969 | |
| | | | | | | | | |
| Wisconsin – 2.1% |
| Revenue Bonds – 1.9% |
Franklin Solid Waste Disposal, Waste Management Wisconsin Incorporated
Series A, Mandatory Put 05/01/2016 @ 100 (AMT) | | | | | | | | |
| 4.950%, 11/01/2016 | | | 2,000 | | | | 2,099 | |
Wisconsin Health & Educational Facilities Authority, Aurora Health Care Incorporated
Series A | | | | | | | | |
| 5.500%, 02/15/2020 | | | 1,500 | | | | 1,501 | |
| Wisconsin Health & Educational Facilities Authority, Beloit College, Series A | | | | | | | | |
| 6.000%, 06/01/2030 | | | 2,060 | | | | 2,085 | |
| Wisconsin Health & Educational Facilities Authority, Childrens Hospital, Series B | | | | | | | | |
| 4.350%, 08/15/2019 | | | 1,350 | | | | 1,379 | |
| Wisconsin Health & Educational Facilities Authority, Eastcastle Place Incorporated Project | | | | | | | | |
| 5.750%, 12/01/2019 | | | 2,000 | | | | 1,964 | |
| Wisconsin Health & Educational Facilities Authority, Fort Healthcare Incorporated Project | | | | | | | | |
| 5.375%, 05/01/2018 | | | 1,250 | | | | 1,265 | |
| Wisconsin Health & Educational Facilities Authority, Marshfield Clinic, Series B | | | | | | | | |
| 5.500%, 02/15/2013 | | | 850 | | | | 884 | |
| Wisconsin Health & Educational Facilities Authority, Southwest Health Center, Series A | | | | | | | | |
| 6.125%, 04/01/2024 | | | 1,500 | | | | 1,509 | |
| Wisconsin Health & Educational Facilities Authority, Vernon Memorial Healthcare Incorporated Project | | | | | | | | |
| 4.650%, 03/01/2015 | | | 780 | | | | 797 | |
Wisconsin Health & Educational Facilities Authority, Wisconsin Medical College
Series A (NATL) | | | | | | | | |
| 5.000%, 12/01/2015 | | | 1,450 | | | | 1,579 | |
| | | | | | | | | |
| | | | | | | | 15,062 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Door County, Series A, Crossover Refunded 09/01/2011 @ 100 (FGIC) | | | | | | | | |
5.125%, 09/01/2016 z | | | 1,720 | | | | 1,799 | |
| | | | | | | | | |
| | | | | | | | 16,861 | |
| | | | | | | | | |
| 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 | | | | 2,324 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $715,747) | | | | | | | 750,548 | |
| | | | | | | | | |
Short-Term Investments – 2.8% |
| Money Market Fund – 1.5% |
First American Tax Free Obligations Fund, Class Z, 0.029% Å Ω | | | 11,611,215 | | | | 11,611 | |
| | | | | | | | | |
Variable Rate Demand Notes v – 1.3% |
| Colorado Educational & Cultural Facilities Authority, National Jewish Federation Board Program | | | | | | | | |
| 0.190%, 09/01/2036 | | $ | 300 | | | | 300 | |
| South Carolina Educational Facilities Authority for Private Nonprofit Institutions, Charleston Southern University Project | | | | | | | | |
| 0.300%, 04/01/2028 | | | 9,920 | | | | 9,920 | |
| | | | | | | | | |
| | | | | | | | 10,220 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $21,831) | | | | | | | 21,831 | |
| | | | | | | | | |
Total Investments 5 – 99.3% | | | | | | | | |
(Cost $737,578) | | | | | | | 772,379 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.7% | | | | | | | 5,163 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 777,542 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in 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. |
| |
| ◊ | | 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, 2010. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) 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, 2010. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $796 or 0.1% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010 the total cost of investments purchased on a when-issued basis was $3,396 or 0.4% of total net assets. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 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, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $737,578. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 39,798 | |
| Gross unrealized depreciation | | | (4,997 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 34,801 | |
| | | | | |
The accompanying notes are an integral part of the financial statements.
60 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Intermediate Tax Free Fund (concluded)
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $9,283 which represents 1.2% of total net assets. |
| |
| CIFG – | CDC IXIS Financial Guaranty |
| |
| CMI – | California Mortgage Insurance Program |
| |
| COMGTY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| GNMA – | Government National Mortgage Association |
| |
| 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 |
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 96.6% |
| Revenue Bonds – 67.9% |
| Continuing Care Retirement Communities – 0.9% |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects | | | | | | | | |
| Series A | | | | | | | | |
| 5.550%, 07/01/2027 | | $ | 1,000 | | | $ | 902 | |
Glencoe Health Care Facilities, Glencoe Regional Health Services Project Pre-refunded 04/01/2011 @ 101 | | | | | | | | |
7.400%, 04/01/2021 ◊ | | | 1,000 | | | | 1,062 | |
| | | | | | | | | |
| | | | | | | | 1,964 | |
| | | | | | | | | |
| Economic Development – 1.3% |
| Minneapolis Community Development Agency | | | | | | | | |
Series G-3, Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
5.350%, 12/01/2021 ◊ | | | 1,000 | | | | 1,066 | |
| Minneapolis Development, Common Bond | | | | | | | | |
| Series 1A (AMT) | | | | | | | | |
| 4.550%, 12/01/2013 | | | 480 | | | | 510 | |
| 4.625%, 12/01/2014 | | | 505 | | | | 537 | |
Minneapolis Supported Development,
Common Bond, Series 2A (AMT) | | | | | | | | |
| 5.125%, 06/01/2022 | | | 1,000 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 3,117 | |
| | | | | | | | | |
| Education – 15.3% |
| Minneapolis, The Blake School Project | | | | | | | | |
| 4.000%, 09/01/2019 | | | 550 | | | | 578 | |
| 4.000%, 09/01/2020 | | | 340 | | | | 354 | |
| 4.000%, 09/01/2021 | | | 315 | | | | 324 | |
| Pre-refunded 09/01/2011 @ 100 | | | | | | | | |
5.000%, 09/01/2012 ◊ | | | 445 | | | | 469 | |
| Minnesota Colleges & Universities, Series A | | | | | | | | |
| 4.000%, 10/01/2022 | | | 985 | | | | 1,016 | |
| 4.000%, 10/01/2023 | | | 1,755 | | | | 1,792 | |
| Minnesota Higher Education Facilities Authority, Augsburg College | | | | | | | | |
| Series 4-Y | | | | | | | | |
| 5.000%, 10/01/2011 | | | 500 | | | | 501 | |
| 5.000%, 10/01/2012 | | | 500 | | | | 501 | |
| Series 6-C | | | | | | | | |
| 4.750%, 05/01/2018 | | | 1,075 | | | | 1,093 | |
| Series 6-J1 | | | | | | | | |
| 5.000%, 05/01/2013 | | | 320 | | | | 344 | |
| 5.000%, 05/01/2016 | | | 375 | | | | 402 | |
| 5.000%, 05/01/2020 | | | 1,295 | | | | 1,338 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2018 | | | 1,125 | | | | 1,165 | |
| 5.500%, 05/01/2019 | | | 1,185 | | | | 1,219 | |
| 5.500%, 05/01/2024 | | | 1,050 | | | | 1,059 | |
| Minnesota Higher Education Facilities Authority, College of Art & Design | | | | | | | | |
| Series 5-K | | | | | | | | |
| 5.000%, 05/01/2011 | | | 90 | | | | 92 | |
| Series 6-K | | | | | | | | |
| 5.000%, 05/01/2013 | | | 310 | | | | 333 | |
| 5.000%, 05/01/2014 | | | 320 | | | | 347 | |
| 5.000%, 05/01/2015 | | | 340 | | | | 371 | |
| 5.000%, 05/01/2016 | | | 355 | | | | 380 | |
| 5.000%, 05/01/2017 | | | 370 | | | | 392 | |
| Minnesota Higher Education Facilities Authority, Hamline University, Series 7-E | | | | | | | | |
| 4.125%, 10/01/2018 | | | 1,000 | | | | 997 | |
| 4.375%, 10/01/2020 | | | 1,370 | | | | 1,362 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 61
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| 4.500%, 10/01/2021 | | $ | 500 | | | $ | 498 | |
| 5.000%, 10/01/2029 | | | 250 | | | | 250 | |
| Minnesota Higher Education Facilities Authority, St. Benedict College, Series V | | | | | | | | |
| 4.500%, 03/01/2017 | | | 1,585 | | | | 1,652 | |
| Minnesota Higher Education Facilities Authority, St. Catherine College, Series 5-N1 | | | | | | | | |
| 5.250%, 10/01/2022 | | | 500 | | | | 505 | |
| Minnesota Higher Education Facilities Authority, St. John’s University, Series 6-U | | | | | | | | |
| 4.200%, 10/01/2019 | | | 290 | | | | 305 | |
| 4.300%, 10/01/2020 | | | 385 | | | | 403 | |
| 4.500%, 10/01/2022 | | | 145 | | | | 150 | |
| Minnesota Higher Education Facilities Authority, St. Olaf College, Series 6-O | | | | | | | | |
| 5.000%, 10/01/2016 | | | 500 | | | | 560 | |
| 4.500%, 10/01/2019 | | | 250 | | | | 256 | |
| Minnesota Higher Education Facilities Authority, St. Scholastica College | | | | | | | | |
| Series 5-J | | | | | | | | |
| 5.250%, 12/01/2011 | | | 210 | | | | 213 | |
| Series 6-S | | | | | | | | |
| 4.375%, 12/01/2016 | | | 360 | | | | 371 | |
| 4.500%, 12/01/2017 | | | 380 | | | | 389 | |
| Minnesota Higher Education Facilities Authority, University of St. Thomas | | | | | | | | |
| Series 6-I | | | | | | | | |
| 4.000%, 04/01/2014 | | | 1,045 | | | | 1,115 | |
| Series 6-X | | | | | | | | |
| 4.500%, 04/01/2021 | | | 500 | | | | 521 | |
| 5.000%, 04/01/2024 | | | 1,250 | | | | 1,324 | |
| Series 7-A | | | | | | | | |
| 4.000%, 10/01/2017 | | | 1,000 | | | | 1,056 | |
| 4.500%, 10/01/2018 | | | 1,000 | | | | 1,086 | |
| 4.500%, 10/01/2019 | | | 1,845 | | | | 1,994 | |
| Moorhead Educational Facilities, Concordia College, Series A | | | | | | | | |
| 4.100%, 12/15/2014 | | | 500 | | | | 529 | |
| 4.200%, 12/15/2015 | | | 880 | | | | 933 | |
| 4.300%, 12/15/2016 | | | 925 | | | | 967 | |
| 5.000%, 12/15/2018 | | | 1,005 | | | | 1,061 | |
| 5.000%, 12/15/2019 | | | 1,060 | | | | 1,108 | |
| University of Minnesota, Series C | | | | | | | | |
| 3.000%, 02/01/2013 | | | 250 | | | | 264 | |
| 4.000%, 02/01/2016 | | | 500 | | | | 551 | |
| 5.000%, 12/01/2019 | | | 1,000 | | | | 1,165 | |
| | | | | | | | | |
| | | | | | | | 35,655 | |
| | | | | | | | | |
| Healthcare ⊳ – 27.4% |
| Aitkin Health Care Facilities, Riverwood Healthcare Center | | | | | | | | |
| 5.250%, 02/01/2015 | | | 735 | | | | 742 | |
| Bemidji Health Care Facilities, North County Health Services | | | | | | | | |
| 4.125%, 09/01/2013 | | | 300 | | | | 311 | |
| 4.250%, 09/01/2015 | | | 500 | | | | 518 | |
| 5.000%, 09/01/2017 | | | 500 | | | | 521 | |
| 5.000%, 09/01/2018 | | | 1,050 | | | | 1,084 | |
| 5.000%, 09/01/2019 | | | 1,110 | | | | 1,137 | |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.000%, 06/01/2016 | | | 425 | | | | 428 | |
| 5.000%, 06/01/2017 | | | 1,340 | | | | 1,367 | |
| 5.000%, 06/01/2019 | | | 1,320 | | | | 1,322 | |
Duluth Economic Development Authority, Benedictine Health System-St. Mary’s, Pre-refunded 02/15/2014 @ 100 | | | | | | | | |
5.375%, 02/15/2022 ◊ | | | 2,045 | | | | 2,346 | |
| Glencoe Health Care Facilities, Regional Health Services Project | | | | | | | | |
| 5.000%, 04/01/2013 | | | 760 | | | | 798 | |
| 5.000%, 04/01/2014 | | | 800 | | | | 841 | |
| 5.000%, 04/01/2015 | | | 845 | | | | 882 | |
| 5.000%, 04/01/2017 | | | 1,815 | | | | 1,859 | |
| Maple Grove Health Care Facilities, North Memorial Health Care | | | | | | | | |
| 4.500%, 09/01/2017 | | | 1,730 | | | | 1,802 | |
| Maple Grove Health Care System, Maple Grove Hospital | | | | | | | | |
| 5.000%, 05/01/2017 | | | 1,000 | | | | 1,087 | |
| Marshall Medical Center, Avera Marshall Regional Medical Center Project Escrowed to Maturity | | | | | | | | |
| 4.500%, 11/01/2013 § | | | 345 | | | | 378 | |
| Pre-refunded 11/01/2015 @ 100 | | | | | | | | |
4.750%, 11/01/2020 ◊ | | | 1,155 | | | | 1,302 | |
| Meeker County Hospital Facilities, Memorial Hospital Project | | | | | | | | |
| 5.625%, 11/01/2022 | | | 1,000 | | | | 1,019 | |
| Minneapolis & St. Paul Housing & Redevelopment Authority, Minnesota Children’s Hospitals & Clinics, Series A | | | | | | | | |
| 5.250%, 08/15/2025 | | | 1,000 | | | | 1,042 | |
| 5.000%, 08/15/2030 | | | 850 | | | | 851 | |
Minneapolis Health Care System, Allina Health System, Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
6.000%, 11/15/2023 ◊ | | | 2,500 | | | | 2,819 | |
5.750%, 11/15/2032 ◊ | | | 1,300 | | | | 1,458 | |
| Minneapolis Health Care System, Fairview Health Services | | | | | | | | |
| Series A | | | | | | | | |
| 6.375%, 11/15/2023 | | | 4,000 | | | | 4,530 | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 5.000%, 05/15/2012 § | | | 605 | | | | 656 | |
| Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project | | | | | | | | |
| 5.500%, 02/01/2011 | | | 280 | | | | 286 | |
| 5.500%, 02/01/2012 | | | 200 | | | | 210 | |
| 5.500%, 02/01/2015 | | | 730 | | | | 761 | |
| Minnesota Agricultural & Economic Development Board, Essentia Health Obligated Group | | | | | | | | |
| Series C-1 (AGC) | | | | | | | | |
| 5.500%, 02/15/2025 | | | 1,000 | | | | 1,076 | |
| Minnesota Agricultural & Economic Development Board, Health Care System, Series A (NATL) | | | | | | | | |
| 5.500%, 11/15/2017 | | | 305 | | | | 306 | |
| 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 | | | | 2,362 | |
| Northfield Hospital | | | | | | | | |
| 5.000%, 11/01/2013 | | | 715 | | | | 752 | |
| 5.000%, 11/01/2014 | | | 920 | | | | 972 | |
| 5.500%, 11/01/2017 | | | 1,080 | | | | 1,151 | |
| Plymouth Health Facilities, Westhealth Project | | | | | | | | |
| Series A (AGM) | | | | | | | | |
| 6.200%, 06/01/2011 | | | 485 | | | | 487 | |
The accompanying notes are an integral part of the financial statements.
62 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Redwood Falls Hospital Facilities, Redwood Area Hospital Project | | | | | | | | |
| 5.000%, 12/01/2021 | | $ | 1,015 | | | $ | 1,023 | |
| Rochester Health Care Facilities, Olmsted Medical Center Project | | | | | | | | |
5.125%, 07/01/2020 « | | | 1,000 | | | | 1,016 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 4.000%, 09/01/2012 | | | 305 | | | | 313 | |
| 5.000%, 09/01/2017 | | | 1,785 | | | | 1,821 | |
| St. Cloud Health Care, CentraCare Health System Project (AGC) | | | | | | | | |
| 5.375%, 05/01/2031 | | | 1,000 | | | | 1,040 | |
| Series A | | | | | | | | |
| 4.250%, 05/01/2021 | | | 1,000 | | | | 972 | |
| St. Louis Park Health Care Facilities, Park Nicollet Health Services | | | | | | | | |
| 5.500%, 07/01/2029 | | | 1,300 | | | | 1,289 | |
| Series C | | | | | | | | |
| 5.625%, 07/01/2026 | | | 2,500 | | | | 2,525 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2015 | | | 500 | | | | 554 | |
| 5.000%, 11/15/2019 | | | 1,200 | | | | 1,283 | |
| Series A-1 | | | | | | | | |
| 5.000%, 11/15/2024 | | | 3,000 | | | | 3,090 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 5.150%, 11/15/2020 | | | 1,840 | | | | 1,769 | |
| St. Paul Housing & Redevelopment Authority, HealthPartners Obligated Group Project | | | | | | | | |
| 5.250%, 05/15/2019 | | | 1,350 | | | | 1,389 | |
| St. Paul Port Authority, HealthEast Midway Campus, Series A | | | | | | | | |
| 5.250%, 05/01/2015 | | | 1,500 | | | | 1,486 | |
| 5.750%, 05/01/2025 | | | 2,000 | | | | 1,940 | |
| Stillwater Health Care, Health System Obligated Group | | | | | | | | |
| 4.250%, 06/01/2015 | | | 500 | | | | 523 | |
| 4.250%, 06/01/2016 | | | 260 | | | | 267 | |
| Todd, Morrison, Cass & Wadena Counties, United Hospital District, Lakewood Health System | | | | | | | | |
| 4.000%, 12/01/2013 | | | 400 | | | | 431 | |
| Winona Health Care Facilities, Winona Health Obligated Group | | | | | | | | |
| 5.000%, 07/01/2020 | | | 1,000 | | | | 981 | |
| Series A | | | | | | | | |
| 5.300%, 07/01/2017 | | | 525 | | | | 535 | |
| | | | | | | | | |
| | | | | | | | 63,720 | |
| | | | | | | | | |
| Housing – 1.3% |
| Dakota County Housing & Redevelopment Authority, Single Family Mortgages (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.125%, 10/01/2020 | | | 29 | | | | 29 | |
| Moorhead Senior Housing, Sheyenne Crossing Project | | | | | | | | |
| 5.600%, 04/01/2025 | | | 2,000 | | | | 1,936 | |
| Worthington Housing Authority, Meadows Worthington Project, Series A | | | | | | | | |
| 5.000%, 11/01/2017 | | | 1,000 | | | | 967 | |
| | | | | | | | | |
| | | | | | | | 2,932 | |
| | | | | | | | | |
| Lease Revenue – 2.8% |
| Andover Economic Development Authority, Public Facilities, Community Center Crossover refunded 02/01/2014 @ 100 | | | | | | | | |
5.000%, 02/01/2019 z | | | 495 | | | | 545 | |
5.000%, 02/01/2019 z | | | 730 | | | | 804 | |
| Pine County Housing & Redevelopment Authority, Public Project, Series A | | | | | | | | |
| 4.500%, 02/01/2016 | | | 465 | | | | 490 | |
| 4.500%, 02/01/2017 | | | 385 | | | | 400 | |
| St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | | | | | | | | |
| 4.500%, 12/01/2019 | | | 180 | | | | 192 | |
| 4.500%, 12/01/2020 | | | 290 | | | | 307 | |
| St. Paul Housing & Redevelopment Authority, Smith Avenue Transit Center | | | | | | | | |
| 4.000%, 06/01/2012 | | | 195 | | | | 195 | |
| St. Paul Port Authority, Office Building | | | | | | | | |
| 5.000%, 12/01/2019 | | | 2,415 | | | | 2,564 | |
| Stevens County Housing & Redevelopment Authority, Public Project, Series A | | | | | | | | |
| 4.000%, 02/01/2018 | | | 315 | | | | 327 | |
| 4.000%, 02/01/2019 | | | 325 | | | | 332 | |
| 4.100%, 02/01/2020 | | | 340 | | | | 347 | |
| | | | | | | | | |
| | | | | | | | 6,503 | |
| | | | | | | | | |
| Miscellaneous – 1.9% |
| Seaway Port Authority of Duluth, Cargill Incorporated Project | | | | | | | | |
| 4.200%, 05/01/2013 | | | 2,000 | | | | 2,068 | |
| St. Paul Housing & Redevelopment Authority, Parking Facilities Project, Series A | | | | | | | | |
4.125%, 08/01/2023 « | | | 895 | | | | 885 | |
4.250%, 08/01/2024 « | | | 935 | | | | 925 | |
4.250%, 08/01/2025 « | | | 575 | | | | 562 | |
| | | | | | | | | |
| | | | | | | | 4,440 | |
| | | | | | | | | |
| Tax Revenue – 1.8% |
| Hennepin County Sales Tax, Ballpark Project | | | | | | | | |
| Series B | | | | | | | | |
| 4.375%, 12/15/2022 | | | 555 | | | | 588 | |
| 5.000%, 12/15/2029 | | | 1,000 | | | | 1,070 | |
| Minneapolis St. Anthony Falls Project | | | | | | | | |
| 5.000%, 02/01/2017 | | | 1,040 | | | | 984 | |
| 5.300%, 02/01/2021 | | | 570 | | | | 520 | |
| Minneapolis Tax Increment, Grant Park Project | | | | | | | | |
| 5.200%, 02/01/2022 | | | 1,000 | | | | 901 | |
| | | | | | | | | |
| | | | | | | | 4,063 | |
| | | | | | | | | |
| Transportation – 5.9% |
Minneapolis & St. Paul Metropolitan
Airports Commission | | | | | | | | |
| Series A | | | | | | | | |
| 4.000%, 01/01/2019 | | | 1,000 | | | | 1,056 | |
| 5.000%, 01/01/2020 | | | 1,000 | | | | 1,112 | |
| 5.000%, 01/01/2021 | | | 500 | | | | 550 | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,000 | | | | 1,037 | |
| 5.000%, 01/01/2020 | | | 2,200 | | | | 2,270 | |
| Series B (AMBAC) (AMT) | | | | | | | | |
| 5.000%, 01/01/2020 | | | 2,125 | | | | 2,171 | |
Series C, Pre-refunded 01/01/2011 @ 100 (FGIC) | | | | | | | | |
5.125%, 01/01/2020 ◊ | | | 3,095 | | | | 3,171 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 63
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Minnesota Public Facilities Authority Transportation | | | | | | | | |
| 5.000%, 03/01/2012 | | $ | 970 | | | $ | 973 | |
| Puerto Rico Commonwealth, Highway & Transportation Authority | | | | | | | | |
| Series X (IBC) (NATL) | | | | | | | | |
| 5.500%, 07/01/2013 | | | 1,250 | | | | 1,360 | |
| | | | | | | | | |
| | | | | | | | 13,700 | |
| | | | | | | | | |
| Utilities – 9.3% |
| Chaska Electric, Series A | | | | | | | | |
| 5.650%, 10/01/2010 | | | 760 | | | | 769 | |
| 4.200%, 10/01/2015 | | | 1,000 | | | | 1,078 | |
| Cohasset Pollution Control, Allete Project (IBCC) (RAAI) | | | | | | | | |
| 4.950%, 07/01/2022 | | | 2,230 | | | | 2,264 | |
| Litchfield Electric Utilities | | | | | | | | |
| Series C (AGC) | | | | | | | | |
| 5.000%, 02/01/2029 | | | 500 | | | | 517 | |
| Marshall Public Utilities | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 3.500%, 07/01/2016 | | | 315 | | | | 327 | |
| 3.500%, 07/01/2017 | | | 275 | | | | 281 | |
| 3.750%, 07/01/2018 | | | 340 | | | | 350 | |
| Series B | | | | | | | | |
| 3.500%, 07/01/2015 | | | 500 | | | | 517 | |
| Minnesota State Municipal Power Agency | | | | | | | | |
| 4.125%, 10/01/2017 | | | 420 | | | | 447 | |
| 5.250%, 10/01/2022 | | | 1,000 | | | | 1,079 | |
| Northern Municipal Power Agency, Minnesota Electric Systems | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 1,000 | | | | 1,113 | |
| 5.000%, 01/01/2021 | | | 2,000 | | | | 2,176 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2013 | | | 380 | | | | 413 | |
| 5.000%, 01/01/2017 | | | 460 | | | | 514 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGC) | | | | | | | | |
| 5.000%, 07/01/2016 | | | 500 | | | | 557 | |
| Shakopee Public Utilities, Series A (AGM) | | | | | | | | |
| 4.250%, 02/01/2018 | | | 295 | | | | 312 | |
| Southern Minnesota Municipal Power Agency | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.250%, 01/01/2014 | | | 2,000 | | | | 2,239 | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
3.900%, 01/01/2020 ¤ | | | 3,500 | | | | 2,425 | |
4.040%, 01/01/2021 ¤ | | | 5,000 | | | | 3,285 | |
| Western Minnesota Municipal Power Agency | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.500%, 01/01/2011 | | | 1,000 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 21,667 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 157,761 | |
| | | | | | | | | |
| General Obligations – 26.4% |
| Anoka County Capital Improvement | | | | | | | | |
| Series A | | | | | | | | |
| 4.100%, 02/01/2018 | | | 610 | | | | 652 | |
| 5.000%, 02/01/2020 | | | 1,000 | | | | 1,134 | |
| Series B | | | | | | | | |
| 4.550%, 01/01/2011 | | | 680 | | | | 695 | |
| Series C | | | | | | | | |
| 4.100%, 02/01/2018 | | | 285 | | | | 314 | |
| 4.200%, 02/01/2019 | | | 595 | | | | 652 | |
| Series D | | | | | | | | |
| 5.000%, 02/01/2024 | | | 500 | | | | 538 | |
| Anoka-Hennepin Independent School District #11 | | | | | | | | |
| Series A, Crossover refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2014 z | | | 2,000 | | | | 2,043 | |
| Series A, Crossover refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2012 z | | | 1,000 | | | | 1,021 | |
| Burnsville Independent School District #191, Alternative Facilities | | | | | | | | |
| Series A (AGM) (MSDCEP) | | | | | | | | |
| 4.200%, 02/01/2025 | | | 350 | | | | 358 | |
| Series A (MSDCEP) | | | | | | | | |
| 4.250%, 02/01/2020 | | | 1,200 | | | | 1,301 | |
| Chaska Independent School District #112, School Building, Series A (MSDCEP) (NATL) | | | | | | | | |
| 4.250%, 02/01/2019 | | | 1,000 | | | | 1,087 | |
| Chatfield Independent School District #227, School Building, Series A (AGM) (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 450 | | | | 493 | |
| Dakota County Community Development Agency, Senior Housing Facilities, Series A | | | | | | | | |
| 4.375%, 01/01/2019 | | | 510 | | | | 556 | |
| 4.500%, 01/01/2020 | | | 215 | | | | 232 | |
| Dassel Cokato Independent School District #466, School Building, Series A (MSCDEP) | | | | | | | | |
| 4.000%, 03/01/2014 | | | 300 | | | | 327 | |
| Duluth DECC Improvement, Series A | | | | | | | | |
| 4.500%, 02/01/2021 | | | 1,160 | | | | 1,246 | |
| 4.500%, 02/01/2022 | | | 465 | | | | 495 | |
| 4.625%, 02/01/2024 | | | 1,100 | | | | 1,160 | |
| Duluth Independent School District #709 | | | | | | | | |
| Series A (AGM) (MSDCEP) | | | | | | | | |
| 4.250%, 02/01/2022 | | | 1,150 | | | | 1,208 | |
| Lakeville Independent School District #194 | | | | | | | | |
| Series A, Crossover refunded 02/01/2013 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.000%, 02/01/2022 z | | | 1,260 | | | | 1,372 | |
| Mankato, Series A | | | | | | | | |
| 3.500%, 02/01/2018 | | | 765 | | | | 811 | |
| 3.500%, 02/01/2019 | | | 775 | | | | 809 | |
| Minneapolis | | | | | | | | |
| 3.375%, 12/01/2023 | | | 650 | | | | 642 | |
| 4.000%, 12/01/2026 | | | 500 | | | | 507 | |
| Minneapolis Special School District #1 (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 1,135 | | | | 1,209 | |
| Minnesota, Series C | | | | | | | | |
| 5.000%, 08/01/2019 | | | 500 | | | | 596 | |
| Moorhead Independent School District #152, Crossover refunded 04/01/2012 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.000%, 04/01/2015 z | | | 3,450 | | | | 3,679 | |
5.000%, 04/01/2016 z | | | 2,510 | | | | 2,677 | |
| Mounds View Independent School District #621, School Building, Series A (MSDCEP) | | | | | | | | |
| 3.250%, 02/01/2017 | | | 625 | | | | 654 | |
| 4.000%, 02/01/2021 | | | 1,000 | | | | 1,053 | |
| 4.000%, 02/01/2022 | | | 750 | | | | 785 | |
| Series A, Crossover refunded 02/01/2011 @ 100 (MSDCEP) | | | | | | | | |
5.250%, 02/01/2012 z | | | 1,000 | | | | 1,026 | |
The accompanying notes are an integral part of the financial statements.
64 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Minnesota Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Series A, Crossover refunded 02/01/2012 @ 100 (MSDCEP) | | | | | | | | |
5.000%, 02/01/2019 z | | $ | 2,565 | | | $ | 2,717 | |
| Series A, Crossover refunded 02/01/2012 @ 100 (MSDCEP) (NATL) | | | | | | | | |
5.000%, 02/01/2018 z | | | 2,340 | | | | 2,480 | |
| New Prague Independent School District #721, School Building, Series A (MSDCEP) (SGI) | | | | | | | | |
| 3.750%, 02/01/2020 | | | 525 | | | | 538 | |
| 3.875%, 02/01/2022 | | | 475 | | | | 483 | |
| Osseo Independent School District #279 | | | | | | | | |
| Series A (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2021 | | | 1,180 | | | | 1,250 | |
| Pequot Lakes Independent School District #186, Crossover refunded 02/01/2012 @ 100 (FGIC) (MSDCEP) | | | | | | | | |
5.125%, 02/01/2018 z | | | 500 | | | | 532 | |
| Perham, Disposal System (AMT) | | | | | | | | |
| 5.850%, 05/01/2015 | | | 1,205 | | | | 1,229 | |
| Puerto Rico Commonwealth (NATL) | | | | | | | | |
| 6.000%, 07/01/2014 | | | 1,605 | | | | 1,790 | |
| Series A | | | | | | | | |
| 5.500%, 07/01/2018 | | | 575 | | | | 615 | |
| 5.500%, 07/01/2018 | | | 1,000 | | | | 1,070 | |
| Series A (SGI) | | | | | | | | |
| 5.500%, 07/01/2017 | | | 1,000 | | | | 1,074 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 1,078 | |
| Ramsey County Capital Improvement, Series A | | | | | | | | |
| 4.000%, 02/01/2018 | | | 520 | | | | 579 | |
| Robbinsdale Independent School District #281, Alternative Facility, Series B (MSDCEP) | | | | | | | | |
| 4.500%, 02/01/2021 | | | 500 | | | | 543 | |
| Rochester Wastewater, Series A | | | | | | | | |
| 4.000%, 12/01/2018 | | | 1,140 | | | | 1,250 | |
| Sauk Rapids Independent School District #47 | | | | | | | | |
| Series B, Zero Coupon Bond, Crossover refunded 02/01/2011 @ 94.63 (AGM) (MSDCEP) | | | | | | | | |
1.282%, 02/01/2012 z ¤ | | | 1,790 | | | | 1,681 | |
| Series B, Zero Coupon Bond, Crossover refunded 02/01/2011 @ 89.37 (AGM) (MSDCEP) | | | | | | | | |
1.280%, 02/01/2013 z ¤ | | | 1,055 | | | | 936 | |
| South Washington County, Independent School District #833 | | | | | | | | |
| Series A (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2022 | | | 2,000 | | | | 2,099 | |
| Series B, Crossover refunded 02/01/2012 @ 100 (AGM) (MSDCEP) | | | | | | | | |
5.000%, 02/01/2015 z | | | 1,030 | | | | 1,090 | |
| St. Cloud Library Sales Tax, Series B (AGM) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 1,000 | | | | 1,077 | |
| St. Michael Independent School District #885, Crossover refunded 02/01/2012 @ 100 (AGM) (MSDCEP) | | | | | | | | |
5.000%, 02/01/2014 z | | | 1,190 | | | | 1,262 | |
5.000%, 02/01/2017 z | | | 1,000 | | | | 1,061 | |
| St. Peter, Series A (AGM) | | | | | | | | |
| 3.000%, 09/01/2018 | | | 550 | | | | 562 | |
| 3.150%, 09/01/2019 | | | 515 | | | | 525 | |
| 3.300%, 09/01/2020 | | | 585 | | | | 595 | |
| Wadena Deer Creek Independent School District #2155 (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2018 | | | 430 | | | | 468 | |
| 4.000%, 02/01/2019 | | | 410 | | | | 440 | |
| Wright County Jail, Series A (MCCEP) | | | | | | | | |
| 4.500%, 12/01/2020 | | | 640 | | | | 705 | |
| Zumbrota-Mazeppa Independent School District #2805, Alternative Facilities | | | | | | | | |
| Series A (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 200 | | | | 216 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 61,277 | |
| | | | | | | | | |
| Certificates of Participation – 2.3% |
| Chaska Independent School District #112 | | | | | | | | |
| Series B | | | | | | | | |
| 4.000%, 12/01/2015 | | | 545 | | | | 582 | |
| 4.000%, 12/01/2016 | | | 525 | | | | 558 | |
| 4.000%, 12/01/2017 | | | 590 | | | | 621 | |
| 4.000%, 12/01/2018 | | | 415 | | | | 433 | |
| Duluth Independent School District #709 | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 1,890 | | | | 2,053 | |
| Northeast Metropolitan Intermediate School District #916 | | | | | | | | |
| 4.250%, 01/01/2015 | | | 1,000 | | | | 1,051 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 5,298 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $214,863) | | | | | | | 224,336 | |
| | | | | | | | | |
| Short-Term Investments – 4.0% |
Money Market Fund – 2.9% |
| Federated Minnesota Municipal Cash Trust | | | | | | | | |
| 0.060% Ω | | | 6,853,504 | | | | 6,854 | |
| | | | | | | | | |
| Variable Rate Demand Note v – 1.1% |
| Cohasset Power & Light Company Project | | | | | | | | |
| Series A (LOC: LaSalle Bank) | | | | | | | | |
| 0.300%, 06/01/2020 | | $ | 2,510 | | | | 2,510 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $9,364) | | | | | | | 9,364 | |
| | | | | | | | | |
Total Investments 5 – 100.6% | | | | | | | | |
(Cost $224,227) | | | | | | | 233,700 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (0.6)% | | | | | | | (1,335 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 232,365 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| ⊳ | | 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. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $3,369 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. |
| |
| ¤ | | 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, 2010. |
| |
| 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, 2010. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 65
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
Minnesota Intermediate Tax Free Fund (concluded)
| | |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $224,227. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 10,065 | |
| Gross unrealized depreciation | | | (592 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 9,473 | |
| | | | | |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $5,480, which represents 2.4% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| 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 Program |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
| | | | | | | | | |
| Minnesota Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 91.6% |
| Revenue Bonds – 79.6% |
| Continuing Care Retirement Communities – 1.7% |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects | | | | | | | | |
| Series A | | | | | | | | |
| 5.700%, 07/01/2042 | | $ | 1,750 | | | $ | 1,543 | |
| Golden Valley Covenant Retirement Communities | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 12/01/2029 | | | 1,450 | | | | 1,324 | |
| | | | | | | | | |
| | | | | | | | 2,867 | |
| | | | | | | | | |
| Economic Development – 0.9% |
| Minnesota Agricultural & Economic Development Board, Minnesota Small Business Program | | | | | | | | |
| Series A (AMT) | | | | | | | | |
| 5.550%, 08/01/2016 | | | 500 | | | | 480 | |
| Minnesota Agricultural & Economic Development Board, Small Business Development | | | | | | | | |
| Series D (AMT) | | | | | | | | |
| 7.250%, 08/01/2020 | | | 1,005 | | | | 1,006 | |
| | | | | | | | | |
| | | | | | | | 1,486 | |
| | | | | | | | | |
| Education – 7.2% |
| Baytown Lease, St. Croix Preparatory Academy | | | | | | | | |
| Series A | | | | | | | | |
| 7.000%, 08/01/2038 | | | 1,500 | | | | 1,461 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2026 | | | 1,725 | | | | 1,727 | |
| 5.500%, 05/01/2027 | | | 820 | | | | 820 | |
| Minnesota Higher Education Facilities Authority, Carleton College, Series D | | | | | | | | |
| 5.000%, 03/01/2040 | | | 2,500 | | | | 2,625 | |
| Minnesota Higher Education Facilities Authority, College of Art & Design, Series 6-K | | | | | | | | |
| 5.000%, 05/01/2026 | | | 30 | | | | 30 | |
| Minnesota Higher Education Facilities Authority, Vermilion Community College Project, Series 3-T | | | | | | | | |
| 6.000%, 01/01/2013 | | | 225 | | | | 227 | |
| St. Paul Housing & Redevelopment Authority, Community Peace Academy Project, Series A | | | | | | | | |
| 5.000%, 12/01/2036 | | | 2,550 | | | | 2,211 | |
| St. Paul Housing & Redevelopment Authority, St. Paul Academy & Summit School Project | | | | | | | | |
| 5.000%, 10/01/2024 | | | 2,000 | | | | 2,094 | |
| University of Minnesota, Series C | | | | | | | | |
| 5.000%, 12/01/2020 | | | 1,000 | | | | 1,151 | |
| | | | | | | | | |
| | | | | | | | 12,346 | |
| | | | | | | | | |
| Healthcare ⊳ – 27.9% |
| Chippewa County, Montevideo Hospital Project | | | | | | | | |
| 5.500%, 03/01/2037 | | | 1,500 | | | | 1,429 | |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.500%, 06/01/2035 | | | 350 | | | | 315 | |
Duluth Economic Development Authority, Benedictine Health System-St.Mary’s Pre-refunded 02/15/2014 @ 100 | | | | | | | | |
5.250%, 02/15/2028 ◊ | | | 1,065 | | | | 1,217 | |
| Glencoe Health Care Facilities, Regional Health Services Project | | | | | | | | |
| 5.000%, 04/01/2031 | | | 2,000 | | | | 1,822 | |
| Maple Grove Health Care System, Maple Grove Hospital | | | | | | | | |
| 4.500%, 05/01/2023 | | | 1,500 | | | | 1,486 | |
| 5.250%, 05/01/2025 | | | 1,000 | | | | 1,024 | |
The accompanying notes are an integral part of the financial statements.
66 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Minnesota Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Marshall Medical Center, Weiner Memorial Medical Center Project | | | | | | | | |
Series A, Pre-refunded 11/01/2013 @ 100 | | | | | | | | |
5.250%, 11/01/2016 ◊ | | $ | 305 | | | $ | 341 | |
5.850%, 11/01/2023 ◊ | | | 875 | | | | 997 | |
| Meeker County Hospital Facilities, Memorial Hospital Project | | | | | | | | |
| 5.750%, 11/01/2027 | | | 1,000 | | | | 1,006 | |
| Minneapolis & St. Paul Housing & Redevelopment Authority, Minnesota Children’s Hospitals & Clinics, Series A | | | | | | | | |
| 5.250%, 08/15/2035 | | | 2,275 | | | | 2,294 | |
| Minneapolis Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.625%, 11/15/2028 | | | 3,000 | | | | 3,347 | |
| Minnesota Agricultural & Economic Development Board, Essentia Health Obligated Group | | | | | | | | |
| Series C-1 (AGC) | | | | | | | | |
| 5.000%, 02/15/2030 | | | 1,000 | | | | 1,011 | |
| Minnesota Agricultural & Economic Development Board, Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.375%, 11/15/2029 | | | 125 | | | | 126 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, Series C | | | | | | | | |
| 6.200%, 12/01/2022 | | | 1,000 | | | | 960 | |
| New Hope Housing & Health Care Facilities, Masonic Home North Ridge | | | | | | | | |
| 5.750%, 03/01/2015 | | | 1,600 | | | | 1,603 | |
| Redwood Falls Hospital Facilities, Redwood Area Hospital Project | | | | | | | | |
| 5.125%, 12/01/2036 | | | 2,000 | | | | 1,915 | |
| Rochester Health Care & Housing, Samaritan Bethany, Series A | | | | | | | | |
| 7.375%, 12/01/2041 | | | 1,100 | | | | 1,140 | |
| Rochester Health Care Facilities, Olmsted Medical Center Project | | | | | | | | |
5.875%, 07/01/2030 « | | | 1,700 | | | | 1,689 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 5.250%, 09/01/2034 | | | 2,000 | | | | 1,865 | |
| St. Cloud Health Care, CentraCare Health System Project (AGC) | | | | | | | | |
| 5.500%, 05/01/2039 | | | 3,000 | | | | 3,105 | |
| Series A | | | | | | | | |
| 5.125%, 05/01/2030 | | | 1,000 | | | | 995 | |
| St. Louis Park Health Care Facilities, Park Nicollet Health Services | | | | | | | | |
| 5.750%, 07/01/2039 | | | 2,000 | | | | 1,986 | |
Series B, Pre-refunded 07/01/2014 @ 100 | | | | | | | | |
5.500%, 07/01/2025 ◊ | | | 2,000 | | | | 2,317 | |
| Series C | | | | | | | | |
| 5.750%, 07/01/2030 | | | 1,000 | | | | 1,012 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System, Series A-1 | | | | | | | | |
| 5.250%, 11/15/2029 | | | 3,050 | | | | 3,093 | |
| St. Paul Housing & Redevelopment Authority, Episcopal Nursing Home | | | | | | | | |
| 5.630%, 10/01/2033 | | | 2,237 | | | | 1,941 | |
| St. Paul Housing & Redevelopment Authority, Gillette Childrens Specialty | | | | | | | | |
| 5.000%, 02/01/2029 | | | 2,060 | | | | 2,002 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 6.000%, 11/15/2030 | | | 800 | | | | 772 | |
| St. Paul Housing & Redevelopment Authority, HealthPartners Obligated Group Project | | | | | | | | |
| 5.250%, 05/15/2026 | | | 2,000 | | | | 1,948 | |
| St. Paul Housing & Redevelopment Authority, Regions Hospital Project | | | | | | | | |
| 5.250%, 05/15/2018 | | | 500 | | | | 500 | |
| St. Paul Port Authority, HealthEast Midway Campus | | | | | | | | |
| Series A | | | | | | | | |
| 5.875%, 05/01/2030 | | | 900 | | | | 850 | |
| Series B | | | | | | | | |
| 6.000%, 05/01/2030 | | | 1,800 | | | | 1,699 | |
| | | | | | | | | |
| | | | | | | | 47,807 | |
| | | | | | | | | |
| Housing – 9.8% |
| Cottage Grove Senior Housing, PHS/Cottage Grove Inc. Project, Series A | | | | | | | | |
| 5.000%, 12/01/2031 | | | 850 | | | | 716 | |
| Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project (GNMA) | | | | | | | | |
| 5.900%, 04/20/2042 | | | 2,000 | | | | 2,054 | |
| Maplewood Multifamily Housing, Carefree Cottages ll, Mandatory Put 04/15/2019 @ 100 (AMT) (FNMA) | | | | | | | | |
| 4.800%, 04/15/2034 | | | 2,000 | | | | 2,032 | |
| Minneapolis & St. Paul Housing Financing Board, Single Family Mortgage | | | | | | | | |
| Series A4 (AMT) (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.000%, 11/01/2038 | | | 825 | | | | 819 | |
| Minneapolis Housing, Keeler Apartments Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 10/01/2037 | | | 1,350 | | | | 1,117 | |
| Minneapolis Multifamily Housing, Vantage Flats Project (AMT) (GNMA) | | | | | | | | |
| 5.200%, 10/20/2048 | | | 865 | | | | 878 | |
| Minnesota Housing Finance Agency, Residential Housing | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.650%, 07/01/2033 | | | 510 | | | | 513 | |
| Series D (AMT) | | | | | | | | |
| 4.700%, 07/01/2027 | | | 3,465 | | | | 3,405 | |
| Series F (AMT) | | | | | | | | |
| 5.400%, 07/01/2030 | | | 1,980 | | | | 1,988 | |
| Moorhead Senior Housing, Sheyenne Crossing Project | | | | | | | | |
| 5.650%, 04/01/2041 | | | 1,620 | | | | 1,418 | |
| St. Paul Housing & Redevelopment Authority, Rossy & Richard Shaller, Series A | | | | | | | | |
| 5.250%, 10/01/2042 | | | 1,100 | | | | 876 | |
| White Bear Lake, Multifamily Housing, Lake Square, Series A (FHA) | | | | | | | | |
| 6.000%, 08/01/2020 | | | 1,020 | | | | 1,021 | |
| | | | | | | | | |
| | | | | | | | 16,837 | |
| | | | | | | | | |
| Lease Revenue – 2.9% |
| Lakeville Housing & Redevelopment Authority, Ice Arena Project | | | | | | | | |
| 4.625%, 02/01/2032 | | | 585 | | | | 558 | |
| Pine County Housing & Redevelopment Authority, Public Project, Series A | | | | | | | | |
| 5.000%, 02/01/2028 | | | 1,000 | | | | 1,002 | |
| 5.000%, 02/01/2031 | | | 1,890 | | | | 1,859 | |
| St. Paul Housing & Redevelopment Authority, Jimmy Lee Recreation Center | | | | | | | | |
| 4.750%, 12/01/2026 | | | 500 | | | | 516 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 67
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Minnesota Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| St. Paul Port Authority, Regions Hospital Parking Ramp Project, Series 1 | | | | | | | | |
| 5.000%, 08/01/2036 | | $ | 1,375 | | | $ | 1,094 | |
| | | | | | | | | |
| | | | | | | | 5,029 | |
| | | | | | | | | |
| Miscellaneous – 2.5% |
| Little Canada Commercial Development, RLF Minnesota Project | | | | | | | | |
| 7.100%, 04/01/2013 | | | 500 | | | | 501 | |
| Seaway Port Authority of Duluth, Cargill Incorporated Project | | | | | | | | |
| 4.200%, 05/01/2013 | | | 1,130 | | | | 1,168 | |
| St. Paul Housing & Redevelopment Authority, Parking Facilities Project, Series A | | | | | | | | |
5.000%, 08/01/2030 « | | | 1,070 | | | | 1,095 | |
5.000%, 08/01/2035 « | | | 1,500 | | | | 1,508 | |
| | | | | | | | | |
| | | | | | | | 4,272 | |
| | | | | | | | | |
| Recreational Facility Authority – 1.1% |
| Moorhead Golf Course, Series B | | | | | | | | |
| 5.875%, 12/01/2021 | | | 2,000 | | | | 1,944 | |
| | | | | | | | | |
| Revolving Funds – 2.1% |
| Minnesota Public Facilities Authority, Series A | | | | | | | | |
| 5.000%, 03/01/2021 | | | 3,000 | | | | 3,564 | |
| | | | | | | | | |
| Tax Revenue – 1.1% |
| Minneapolis St. Anthony Falls Project | | | | | | | | |
| 5.650%, 02/01/2027 | | | 400 | | | | 355 | |
| Puerto Rico Sales Tax Financing, Series A | | | | | | | | |
| 5.375%, 08/01/2039 | | | 1,500 | | | | 1,502 | |
| | | | | | | | | |
| | | | | | | | 1,857 | |
| | | | | | | | | |
| Transportation – 7.7% |
| Minneapolis & St. Paul Metropolitan Airports Commission | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2019 | | | 3,250 | | | | 3,561 | |
| 5.000%, 01/01/2020 | | | 5,000 | | | | 5,409 | |
| Series B (AMT) | | | | | | | | |
| 5.000%, 01/01/2020 | | | 4,000 | | | | 4,224 | |
| | | | | | | | | |
| | | | | | | | 13,194 | |
| | | | | | | | | |
| Utilities – 14.7% |
| Chaska Electric, Series A | | | | | | | | |
| 6.100%, 10/01/2030 | | | 45 | | | | 45 | |
| Northern Municipal Power Agency, Minnesota Electric Systems | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.000%, 01/01/2018 | | | 1,985 | | | | 2,239 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2026 | | | 2,000 | | | | 2,095 | |
| Puerto Rico Electric Power Authority | | | | | | | | |
| Series SS (NATL) | | | | | | | | |
| 5.000%, 07/01/2024 | | | 2,000 | | | | 2,033 | |
| Southern Minnesota Municipal Power Agency | | | | | | | | |
| Series A, Zero Coupon Bond (NATL) | | | | | | | | |
3.710%, 01/01/2019 ¤ | | | 2,000 | | | | 1,463 | |
4.040%, 01/01/2021 ¤ | | | 2,265 | | | | 1,488 | |
4.280%, 01/01/2023 ¤ | | | 3,000 | | | | 1,767 | |
4.400%, 01/01/2024 ¤ | | | 11,000 | | | | 6,112 | |
4.520%, 01/01/2025 ¤ | | | 4,770 | | | | 2,494 | |
4.610%, 01/01/2026 ¤ | | | 6,100 | | | | 3,009 | |
4.680%, 01/01/2027 ¤ | | | 2,900 | | | | 1,352 | |
| Western Minnesota Municipal Power Agency Escrowed to Maturity (NATL) | | | | | | | | |
| 9.750%, 01/01/2016 § | | | 410 | | | | 554 | |
| Series A (AMBAC) | | | | | | | | |
| 5.500%, 01/01/2015 | | | 550 | | | | 561 | |
| | | | | | | | | |
| | | | | | | | 25,212 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 136,415 | |
| | | | | | | | | |
| General Obligations – 10.7% |
| Burnsville Independent School District #191, Alternative Facilities, Series A (MSDCEP) | | | | | | | | |
| 4.500%, 02/01/2022 | | | 1,430 | | | | 1,531 | |
| Hennepin County Regional Railroad Authority | | | | | | | | |
| Series A | | | | | | | | |
| 4.000%, 12/01/2030 | | | 2,535 | | | | 2,545 | |
| 4.000%, 12/01/2031 | | | 1,100 | | | | 1,098 | |
| Hopkins Independent School District #270 | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2026 | | | 1,000 | | | | 1,009 | |
| Minnesota | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2018 | | | 2,000 | | | | 2,372 | |
| Series H | | | | | | | | |
| 5.000%, 11/01/2028 | | | 5,000 | | | | 5,546 | |
| 5.000%, 11/01/2029 | | | 2,510 | | | | 2,770 | |
| Perham, Disposal System (AMT) | | | | | | | | |
| 6.000%, 05/01/2022 | | | 1,500 | | | | 1,513 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 18,384 | |
| | | | | | | | | |
| Certificate of Participation – 1.3% |
| Duluth Independent School District #709 | | | | | | | | |
| Series B (MSDCEP) | | | | | | | | |
| 4.000%, 02/01/2019 | | | 2,000 | | | | 2,173 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $153,613) | | | | | | | 156,972 | |
| | | | | | | | | |
| Short-Term Investments – 10.2% |
Money Market Funds – 10.1% |
| Federated Minnesota Municipal Cash Trust | | | | | | | | |
| 0.060% Ω | | | 8,391,190 | | | | 8,391 | |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Ω Å | | | 8,914,578 | | | | 8,915 | |
| | | | | | | | | |
| | | | | | | | 17,306 | |
| | | | | | | | | |
| Variable Rate Demand Note v – 0.1% |
| Brown County, Martin Luther College Project | | | | | | | | |
| 0.400%, 09/01/2024 | | $ | 200 | | | | 200 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $17,506) | | | | | | | 17,506 | |
| | | | | | | | | |
Total Investments 5 – 101.8% | | | | | | | | |
(Cost $171,119) | | | | | | | 174,478 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (1.8)% | | | | | | | (3,145 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 171,333 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| ⊳ | | 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. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $4,279 or 2.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¤ | | 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, 2010. |
The accompanying notes are an integral part of the financial statements.
68 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Minnesota Tax Free Fund (concluded)
| | |
| § | | 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 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, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $171,283. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 6,100 | |
| Gross unrealized depreciation | | | (2,905 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 3,195 | |
| | | | | |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $16,858, which represents 9.8% of total net assets. |
| |
| FHA – | Federal Housing Administration |
| |
| FHLMC – | Federal Home Loan Mortgage Association |
| |
| FNMA – | Federal National Mortgage Association |
| |
| GNMA – | Government National Mortgage Association |
| |
| MSDCEP – | Minnesota School District Credit Enhancement Program |
| |
| NATL – | National Public Finance Guarantee Program |
| | | | | | | | | |
| Missouri Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 94.3% |
| Revenue Bonds – 78.4% |
| Continuing Care Retirement Communities – 5.0% |
| Cole County Industrial Development Authority, Lutheran Services Heisinger Project | | | | | | | | |
| 5.250%, 02/01/2024 | | $ | 2,000 | | | $ | 1,981 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 500 | | | | 390 | |
| Kirkwood Industrial Development Authority, Aberdeen Heights, Series C-2 | | | | | | | | |
| 7.000%, 11/15/2015 | | | 1,500 | | | | 1,504 | |
| Lee’s Summit Industrial Development Authority, Senior Living Facilities, John Knox Village Group | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 08/15/2014 | | | 1,035 | | | | 1,073 | |
| Missouri Health & Educational Facilities Authority, Senior Living Facilities, Lutheran Senior | | | | | | | | |
| Series A | | | | | | | | |
| 5.375%, 02/01/2035 | | | 1,500 | | | | 1,387 | |
| St. Louis County Industrial Development Authority, Friendship Village West, Series A | | | | | | | | |
| 5.500%, 09/01/2028 | | | 2,000 | | | | 1,863 | |
| | | | | | | | | |
| | | | | | | | 8,198 | |
| | | | | | | | | |
| Education – 4.0% |
| Curators University System Facilities, Series A | | | | | | | | |
| 5.000%, 11/01/2033 | | | 1,000 | | | | 1,051 | |
| Lincoln University Auxiliary System (AGC) | | | | | | | | |
| 5.125%, 06/01/2037 | | | 1,000 | | | | 1,019 | |
| Missouri Development Finance Board, Midwest Research Institute Project | | | | | | | | |
| 5.000%, 11/01/2017 | | | 1,185 | | | | 1,186 | |
| Missouri Health & Educational Facilities Authority, Washington University, Series A | | | | | | | | |
| 5.375%, 03/15/2039 | | | 3,000 | | | | 3,267 | |
| | | | | | | | | |
| | | | | | | | 6,523 | |
| | | | | | | | | |
| Healthcare – 22.9% |
| Boone County Hospital | | | | | | | | |
| 5.050%, 08/01/2020 | | | 1,200 | | | | 1,211 | |
| 5.625%, 08/01/2038 | | | 2,000 | | | | 2,023 | |
| Cape Girardeau County Industrial Development Authority, Health Care Facilities, Southeast Missouri Hospital | | | | | | | | |
| 5.625%, 06/01/2022 | | | 245 | | | | 246 | |
| Pre-refunded 06/01/2012 @ 100 | | | | | | | | |
5.625%, 06/01/2022 ◊ | | | 1,255 | | | | 1,373 | |
| Cape Girardeau County Industrial Development Authority, Health Care Facilities, Saint Francis Medical Center, Series A | | | | | | | | |
| 5.125%, 06/01/2023 | | | 250 | | | | 258 | |
| 5.125%, 06/01/2024 | | | 200 | | | | 203 | |
| 5.500%, 06/01/2029 | | | 500 | | | | 512 | |
| 5.750%, 06/01/2039 | | | 2,000 | | | | 2,056 | |
| Cass County Hospital | | | | | | | | |
| 5.500%, 05/01/2027 | | | 2,000 | | | | 1,857 | |
| Clinton County Industrial Development Authority, Health Facilities, Cameron Regional Medical Center | | | | | | | | |
| 5.000%, 12/01/2037 | | | 1,000 | | | | 715 | |
| Colorado Health Facilities Authority, Sisters of Charity of Leavenworth, Series B | | | | | | | | |
| 5.250%, 01/01/2025 | | | 1,495 | | | | 1,565 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 69
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Grundy County Industrial Development Authority, Health Facilities, Wright Memorial Hospital | | | | | | | | |
| 5.650%, 09/01/2022 | | $ | 1,120 | | | $ | 1,117 | |
| 5.750%, 09/01/2023 | | | 1,000 | | | | 1,003 | |
| Hannibal Industrial Development Authority, Health Facilities | | | | | | | | |
| 4.300%, 03/01/2013 | | | 1,345 | | | | 1,380 | |
| 5.000%, 03/01/2022 | | | 1,000 | | | | 978 | |
| Indiana Finance Authority, Health Systems, Sisters of St. Francis Health | | | | | | | | |
| 5.250%, 11/01/2024 | | | 1,000 | | | | 1,050 | |
| Joplin Industrial Development Authority, Health Facilities, Freeman Health System Project | | | | | | | | |
| 5.500%, 02/15/2024 | | | 2,000 | | | | 1,989 | |
| Missouri Health & Educational Facilities Authority, BJC Health System | | | | | | | | |
| Series A, Escrowed to Maturity | | | | | | | �� | |
| 6.750%, 05/15/2012 § | | | 2,310 | | | | 2,576 | |
| Missouri Health & Educational Facilities Authority, Children’s Mercy Hospital | | | | | | | | |
| 5.625%, 05/15/2039 | | | 2,500 | | | | 2,548 | |
| Missouri Health & Educational Facilities Authority, Jefferson Memorial Hospital (RAAI) | | | | | | | | |
| 5.000%, 08/15/2019 | | | 2,300 | | | | 2,288 | |
| Missouri Health & Educational Facilities Authority, Lake Regional Health System Project | | | | | | | | |
| 5.000%, 02/15/2012 | | | 515 | | | | 537 | |
| Missouri Health & Educational Facilities Authority, SSM Health Care | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2036 | | | 2,000 | | | | 2,013 | |
| Series B | | | | | | | | |
| 5.000%, 06/01/2030 | | | 1,500 | | | | 1,520 | |
| Missouri Health & Educational Facilities Authority, Saint Luke’s Health System | | | | | | | | |
Series 2003-B (AGM) | | | | | | | | |
| 5.500%, 11/15/2032 | | | 2,000 | | | | 2,125 | |
| Series A | | | | | | | | |
| 5.250%, 11/15/2025 | | | 485 | | | | 501 | |
| 5.000%, 11/15/2030 | | | 500 | | | | 495 | |
| Saline County Industrial Development Authority, Health Facilities, John Fitzgibbon Memorial Hospital | | | | | | | | |
| 5.625%, 12/01/2035 | | | 1,000 | | | | 829 | |
| St. Louis County Industrial Development Authority, Health Facilities, Ranken-Jordan Project | | | | | | | | |
| 4.250%, 11/15/2014 | | | 125 | | | | 122 | |
| 5.000%, 11/15/2027 | | | 670 | | | | 563 | |
| 5.000%, 11/15/2035 | | | 1,300 | | | | 1,013 | |
Series A, Pre-refunded 11/15/2013 @ 100 | | | | | | | | |
6.625%, 11/15/2035 ◊ | | | 500 | | | | 590 | |
| | | | | | | | | |
| | | | | | | | 37,256 | |
| | | | | | | | | |
| Housing – 3.5% |
| Kansas City Industrial Development Authority, Multifamily Housing, Grand Boulevard | | | | | | | | |
| Series A (GNMA) | | | | | | | | |
| 5.300%, 11/20/2049 | | | 1,290 | | | | 1,307 | |
| Missouri Housing Development Commission, Homeownership Loan Program | | | | | | | | |
| Series A1 (AMT) (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.300%, 03/01/2039 | | | 445 | | | | 455 | |
| Series B (AMT) (FNMA) (GNMA) | | | | | | | | |
| 4.800%, 09/01/2031 | | | 665 | | | | 667 | |
| Series C1 (AMT) (FNMA) (GNMA) | | | | | | | | |
| 5.000%, 09/01/2037 | | | 320 | | | | 319 | |
| Riverside Industrial Development Authority, Riverside Horizons Project | | | | | | | | |
| Series A (ACA) | | | | | | | | |
| 5.000%, 05/01/2027 | | | 1,500 | | | | 1,463 | |
| University City Industrial Development Authority, Multifamily Canterbury | | | | | | | | |
| Series A (GNMA) | | | | | | | | |
| 5.950%, 12/20/2025 | | | 1,400 | | | | 1,400 | |
| | | | | | | | | |
| | | | | | | | 5,611 | |
| | | | | | | | | |
| Lease Revenue – 13.8% |
Cape Girardeau County, Jackson School District #R-2 (NATL) | | | | | | | | |
| 5.250%, 03/01/2026 | | | 1,000 | | | | 1,050 | |
| Clay County Public Building Authority | | | | | | | | |
| Series A (AGM) | | | | | | | | |
| 5.125%, 05/15/2014 | | | 1,720 | | | | 1,725 | |
| Kansas City Municipal Assistance, Capital Appreciation Leasehold | | | | | | | | |
| Series B-1, Zero Coupon Bond (AMBAC) | | | | | | | | |
5.500%, 04/15/2027 ¤ | | | 2,000 | | | | 804 | |
| Kansas City Special Facilities, MCI Overhaul Base Project, Series G (AMT) | | | | | | | | |
| 4.750%, 09/01/2028 | | | 4,000 | | | | 3,581 | |
| Missouri Board of Public Buildings, Special Obligation, Series A | | | | | | | | |
| 5.000%, 10/15/2027 | | | 1,000 | | | | 1,041 | |
| Missouri Board of Public Buildings, State Office Building Special Obligation | | | | | | | | |
| Series A | | | | | | | | |
| 5.125%, 05/01/2026 | | | 5,000 | | | | 5,126 | |
| Series A (NATL) | | | | | | | | |
| 5.000%, 05/01/2024 | | | 3,000 | | | | 3,087 | |
| Missouri Development Finance Board, Infrastructure Facilities, Branson, Series A | | | | | | | | |
| 5.000%, 12/01/2017 | | | 1,000 | | | | 1,018 | |
| 5.375%, 12/01/2022 | | | 750 | | | | 758 | |
| Missouri Development Finance Board, Infrastructure Facilities, Independence Water System Improvement, Series C | | | | | | | | |
| 5.750%, 11/01/2029 | | | 500 | | | | 518 | |
Platte County School District #R-3 (MDDP) | | | | | | | | |
| 5.000%, 03/01/2028 | | | 200 | | | | 210 | |
| Springfield Public Building, Capital Improvement Program (AMBAC) | | | | | | | | |
| 5.000%, 03/01/2024 | | | 2,000 | | | | 2,075 | |
| St. Louis Municipal Finance Leasehold, Convention Center Capital Improvement | | | | | | | | |
| Series A, Zero Coupon Bond (AGC) | | | | | | | | |
5.670%, 07/15/2026 ¤ | | | 1,000 | | | | 408 | |
5.730%, 07/15/2027 ¤ | | | 1,000 | | | | 382 | |
5.800%, 07/15/2028 ¤ | | | 1,000 | | | | 356 | |
5.940%, 07/15/2029 ¤ | | | 1,000 | | | | 328 | |
| | | | | | | | | |
| | | | | | | | 22,467 | |
| | | | | | | | | |
| Miscellaneous – 2.3% |
| Kennett Industrial Development Authority, Manac Trailers USA Inc Project (LOC: Regions Bank) (AMT) | | | | | | | | |
| 4.250%, 03/01/2022 | | | 1,500 | | | | 1,315 | |
| 4.250%, 03/01/2024 | | | 500 | | | | 426 | |
| Missouri Development Finance Board, Infrastructure Facilities, Eastland Center Project | | | | | | | | |
| Series A | | | | | | | | |
| 4.250%, 04/01/2015 | | | 1,010 | | | | 1,065 | |
The accompanying notes are an integral part of the financial statements.
70 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Sugar Creek Industrial Development, Lafarge North America, Series A (AMT) | | | | | | | | |
| 5.650%, 06/01/2037 | | $ | 1,000 | | | $ | 919 | |
| | | | | | | | | |
| | | | | | | | 3,725 | |
| | | | | | | | | |
| Revolving Funds – 1.4% |
| Missouri Environmental Improvement & Energy Resources Authority, Water Pollution Control | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 01/01/2029 | | | 1,000 | | | | 1,153 | |
| Series B | | | | | | | | |
| 5.250%, 01/01/2015 | | | 110 | | | | 111 | |
| Series C | | | | | | | | |
| 4.750%, 07/01/2023 | | | 410 | | | | 442 | |
| 5.000%, 07/01/2023 | | | 470 | | | | 487 | |
| | | | | | | | | |
| | | | | | | | 2,193 | |
| | | | | | | | | |
| Tax Revenue – 9.3% |
| Columbia Special Obligation, Electric Utility Improvement, Series A | | | | | | | | |
| 5.000%, 10/01/2021 | | | 400 | | | | 446 | |
| 5.000%, 10/01/2023 | | | 445 | | | | 488 | |
| 5.125%, 10/01/2030 | | | 500 | | | | 532 | |
| Fenton Tax Increment, Gravois Bluffs Redevelopment Project | | | | | | | | |
| 5.000%, 04/01/2014 | | | 1,000 | | | | 1,058 | |
| Harrisonville Towne Center Project | | | | | | | | |
| 4.375%, 11/01/2017 | | | 340 | | | | 346 | |
| 4.500%, 11/01/2022 | | | 715 | | | | 710 | |
| Howard Bend Levee District (SGI) | | | | | | | | |
| 5.500%, 03/01/2026 | | | 1,745 | | | | 1,800 | |
| Jackson County Special Obligation, Harry S. Truman Sports Complex (AMBAC) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 3,000 | | | | 3,071 | |
| Kansas City Tax Increment Financing Commission, Maincor Project, Series A | | | | | | | | |
| 5.250%, 03/01/2018 | | | 500 | | | | 494 | |
| Missouri Development Finance Board, Independence Centerpoint Project, Series E | | | | | | | | |
| 5.125%, 04/01/2025 | | | 1,000 | | | | 1,005 | |
| Missouri Development Finance Board, Independence Crackerneck Creek Project | | | | | | | | |
| Series B | | | | | | | | |
| 5.000%, 03/01/2025 | | | 1,000 | | | | 996 | |
| Osage Beach Tax Increment, Prewitt’s Point Project | | | | | | | | |
| 5.000%, 05/01/2023 | | | 1,455 | | | | 1,213 | |
| Puerto Rico Sales Tax Financing Corporation | | | | | | | | |
| Series C | | | | | | | | |
| 5.250%, 08/01/2041 | | | 1,000 | | | | 982 | |
| Raytown Live Redevelopment Plan, Project #1 | | | | | | | | |
| 5.125%, 12/01/2031 | | | 1,000 | | | | 985 | |
| Riverside Tax Increment, L-385 Levee Project | | | | | | | | |
| 5.250%, 05/01/2020 | | | 1,000 | | | | 1,023 | |
| | | | | | | | | |
| | | | | | | | 15,149 | |
| | | | | | | | | |
| Transportation – 3.2% |
| Missouri Highways & Transportation Commission | | | | | | | | |
Series A, Pre-refunded 02/01/2011 @ 100 | | | | | | | | |
5.250%, 02/01/2020 ◊ | | | 2,000 | | | | 2,059 | |
| Puerto Rico Commonwealth Highway & Transportation Authority, Series K | | | | | | | | |
| 5.000%, 07/01/2017 | | | 1,000 | | | | 1,033 | |
| St. Louis, Lambert – St. Louis International Airport, Series A-1 | | | | | | | | |
| 6.125%, 07/01/2024 | | | 2,000 | | | | 2,143 | |
| | | | | | | | | |
| | | | | | | | 5,235 | |
| | | | | | | | | |
| Utilities – 13.0% |
| Carroll County Public Water Supply, District #I | | | | | | | | |
| 6.000%, 03/01/2039 | | | 500 | | | | 520 | |
| Kansas City Sanitary Sewer System, Series A | | | | | | | | |
| 5.250%, 01/01/2034 | | | 2,000 | | | | 2,112 | |
| Kansas City Water, Series A | | | | | | | | |
| 5.250%, 12/01/2032 | | | 500 | | | | 530 | |
| Metropolitan St. Louis Sewer District, Wastewater System, Series A | | | | | | | | |
| 5.750%, 05/01/2038 | | | 500 | | | | 552 | |
| Missouri Development Finance Board, Independence Water System Improvements (AMBAC) | | | | | | | | |
| 5.000%, 11/01/2024 | | | 1,000 | | | | 1,012 | |
| Missouri Environmental Improvement & Energy Resources Authority, Tri-County Water Authority Project | | | | | | | | |
| 4.000%, 04/01/2018 | | | 140 | | | | 151 | |
| 4.000%, 04/01/2021 | | | 620 | | | | 649 | |
| 4.000%, 04/01/2022 | | | 2,105 | | | | 2,188 | |
| Missouri Environmental Improvement & Energy Resources Authority, Water Pollution Control | | | | | | | | |
Series C, Pre-refunded 07/01/2011 @ 100 | | | | | | | | |
5.000%, 07/01/2023 ◊ | | | 4,685 | | | | 4,909 | |
| Missouri Joint Municipal Electric Utility Commission, Power Project, Iatan 2 Project | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 01/01/2039 | | | 2,000 | | | | 2,143 | |
| Series A (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2028 | | | 1,000 | | | | 1,009 | |
| Missouri Joint Municipal Electric Utility Commission, Power Project, Plum Point Project (NATL) | | | | | | | | |
| 5.000%, 01/01/2016 | | | 1,500 | | | | 1,583 | |
| North Central Regional Water Commission, Waterworks Systems | | | | | | | | |
| 5.000%, 01/01/2037 | | | 2,070 | | | | 1,770 | |
| Puerto Rico Electric Power Authority | | | | | | | | |
| Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | | 1,000 | | | | 1,028 | |
| St. Joseph Industrial Development Authority, Sewer System Improvements Project | | | | | | | | |
| 4.750%, 04/01/2020 | | | 500 | | | | 511 | |
| 4.750%, 04/01/2021 | | | 390 | | | | 397 | |
| | | | | | | | | |
| | | | | | | | 21,064 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 127,421 | |
| | | | | | | | | |
| General Obligations – 9.9% |
| Belton | | | | | | | | |
| 5.000%, 03/01/2027 | | | 1,520 | | | | 1,618 | |
| Blue Springs Neighborhood Improvement, South Area Improvement Project | | | | | | | | |
| 5.000%, 02/15/2029 | | | 850 | | | | 899 | |
Clay County Reorganized School District #R-1, Kearney (MDDP) | | | | | | | | |
4.250%, 03/01/2020 « | | | 225 | | | | 244 | |
4.250%, 03/01/2021 « | | | 635 | | | | 681 | |
| Fort Osage School District #1 (MDDP) | | | | | | | | |
| 3.100%, 03/01/2020 | | | 2,000 | | | | 1,995 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 71
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Missouri Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Independence School District | | | | | | | | |
| Series C (MDDP) | | | | | | | | |
| 5.000%, 03/01/2024 | | $ | 1,000 | | | $ | 1,118 | |
| Jackson County School District #4, Blue Springs | | | | | | | | |
| Series A | | | | | | | | |
| 4.750%, 03/01/2026 | | | 2,000 | | | | 2,104 | |
| Jackson County School District #7, Lee’s Summit | | | | | | | | |
| 4.750%, 03/01/2027 | | | 1,000 | | | | 1,056 | |
| Jefferson City School District | | | | | | | | |
| Series A, Escrowed to Maturity | | | | | | | | |
| 6.700%, 03/01/2011 § | | | 275 | | | | 285 | |
| North Kansas City School District #74 (MDDP) | | | | | | | | |
| 5.000%, 03/01/2019 | | | 275 | | | | 318 | |
Platte County School District #R-3 | | | | | | | | |
| 3.100%, 03/01/2020 | | | 125 | | | | 125 | |
| (NATL) | | | | | | | | |
| 5.000%, 03/01/2024 | | | 685 | | | | 721 | |
| Puerto Rico Commonwealth, Public Improvement | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 1,000 | | | | 1,008 | |
| Richmond Heights, Manhasset Village Neighborhood | | | | | | | | |
| 4.500%, 04/01/2026 | | | 690 | | | | 675 | |
| St. Charles County, Francis Howell School District (MDDP) | | | | | | | | |
| 5.000%, 03/01/2027 | | | 1,000 | | | | 1,097 | |
Wentzville School District #R-04, Refunding & Improvement | | | | | | | | |
| Series A, Zero Coupon Bond (MDDP) | | | | | | | | |
5.010%, 03/01/2026 ¤ | | | 5,000 | | | | 2,152 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 16,096 | |
| | | | | | | | | |
| Certificates of Participation – 6.0% |
| Belton Refunding & Improvement | | | | | | | | |
| 5.250%, 03/01/2029 | | | 355 | | | | 362 | |
| (NATL) | | | | | | | | |
| 4.375%, 03/01/2019 | | | 500 | | | | 503 | |
| 4.500%, 03/01/2022 | | | 250 | | | | 245 | |
| Cottleville | | | | | | | | |
| 5.125%, 08/01/2026 | | | 200 | | | | 180 | |
| 5.250%, 08/01/2031 | | | 1,700 | | | | 1,466 | |
| Hazelwood School District, Energy Improvements Project | | | | | | | | |
| 4.500%, 03/01/2017 | | | 515 | | | | 550 | |
| 4.500%, 03/01/2018 | | | 445 | | | | 470 | |
| Kansas City Metropolitan Junior College District | | | | | | | | |
| 4.500%, 07/01/2021 | | | 1,025 | | | | 1,093 | |
| Lincoln County Public Water Supply, District #1 | | | | | | | | |
| 6.750%, 06/15/2035 | | | 1,500 | | | | 1,580 | |
| Missouri School Boards Association, Liberty Public School District #53 (AGM) | | | | | | | | |
| 5.250%, 03/01/2025 | | | 1,015 | | | | 1,099 | |
| Texas County Justice Center Project (AGC) | | | | | | | | |
| 4.500%, 12/01/2025 | | | 1,595 | | | | 1,614 | |
| Union, Series A | | | | | | | | |
| 5.200%, 07/01/2023 | | | 520 | | | | 521 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 9,683 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost ($151,749) | | | | | | | 153,200 | |
| | | | | | | | | |
Short-Term Investment – 5.1% |
| Money Market Fund – 5.1% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | | | | | | |
(Cost $8,297) | | | 8,297,044 | | | | 8,297 | |
| | | | | | | | | |
Total Investments 5 – 99.4% | | | | | | | | |
(Cost $160,046) | | | | | | | 161,497 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.6% | | | | | | | 1,035 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 162,532 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| § | | 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. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $920 or 0.6% of total net assets. |
| |
| ¤ | | 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, 2010. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $160,046. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 4,789 | |
| Gross unrealized depreciation | | | (3,338 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 1,451 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $7,682 which represents 4.7% of total net assets. |
| |
| FHLMC – | Federal Home Loan Mortgage Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| GNMA – | Government National Mortgage Association |
| |
| MDDP – | Missouri Direct Deposit Program |
| |
| 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.
72 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Nebraska Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 95.1% |
| Revenue Bonds – 74.2% |
| Continuing Care Retirement Communities – 4.9% |
| Colorado Health Facilities Authority, Christian Living Communities Project, Series A | | | | | | | | |
| 5.750%, 01/01/2026 | | $ | 100 | | | $ | 91 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 275 | | | | 191 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 200 | | | | 185 | |
| Lancaster County Hospital Authority #1, Immanuel Obligated Group | | | | | | | | |
| 5.625%, 01/01/2040 | | | 1,000 | | | | 1,009 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 5.000%, 09/01/2025 | | | 600 | | | | 584 | |
| | | | | | | | | |
| | | | | | | | 2,060 | |
| | | | | | | | | |
| Education – 17.9% |
| Colorado Educational & Cultural Facilities Authority, Charter School | | | | | | | | |
| 5.625%, 05/01/2040 | | | 990 | | | | 993 | |
| Missouri Health & Educational Facilities Authority, Washington University, Series A | | | | | | | | |
| 5.375%, 03/15/2039 | | | 500 | | | | 545 | |
| Nebraska Educational Finance Authority (RAAI) | | | | | | | | |
| 5.000%, 04/01/2017 | | | 605 | | | | 612 | |
| Nebraska Elementary & Secondary School Finance Authority, Boy’s Town Project | | | | | | | | |
| 4.750%, 09/01/2028 | | | 500 | | | | 509 | |
| Nebraska Utility Corporation, University of Nebraska, Lincoln Project | | | | | | | | |
| 5.250%, 01/01/2015 | | | 1,045 | | | | 1,105 | |
| University of Nebraska Facilities Corporation, Medical Center Research Project | | | | | | | | |
| 5.000%, 02/15/2015 | | | 500 | | | | 530 | |
| University of Nebraska, Lincoln Memorial Stadium, Series A | | | | | | | | |
| 5.000%, 11/01/2015 | | | 500 | | | | 553 | |
| University of Nebraska, Lincoln Student Fees | | | | | | | | |
| 5.000%, 07/01/2022 | | | 750 | | | | 798 | |
| University of Nebraska, Omaha Health & Recreation Project | | | | | | | | |
| 5.000%, 05/15/2033 | | | 1,000 | | | | 1,045 | |
| University of Nebraska, Omaha Student Facilities Project | | | | | | | | |
| 5.000%, 05/15/2032 | | | 350 | | | | 365 | |
| University of Nebraska, Omaha Student Housing Project | | | | | | | | |
| 5.000%, 05/15/2023 | | | 500 | | | | 538 | |
| | | | | | | | | |
| | | | | | | | 7,593 | |
| | | | | | | | | |
| Healthcare – 18.4% |
| Adams County Hospital Authority #1, Mary Lanning Memorial Hospital Project (RAAI) | | | | | | | | |
| 5.250%, 12/15/2033 | | | 1,000 | | | | 952 | |
Colorado Health Facilities Authority, Evangelical Lutheran, Series B,
Mandatory Put 12/01/2014 @ 100 | | | | | | | | |
| 5.000%, 06/01/2039 | | | 500 | | | | 522 | |
| Douglas County Hospital Authority #2, Boy’s Town Project | | | | | | | | |
| 4.750%, 09/01/2028 | | | 1,000 | | | | 1,021 | |
| Douglas County Hospital Authority #2, Children’s Hospital | | | | | | | | |
| 6.000%, 08/15/2028 | | | 1,000 | | | | 1,056 | |
| Douglas County Hospital Authority #3, Methodist Health | | | | | | | | |
| 5.500%, 11/01/2038 | | | 1,000 | | | | 984 | |
| Halifax, Florida Hospital Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 600 | | | | 544 | |
| Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 02/15/2030 | | | 600 | | | | 565 | |
| Lancaster County Hospital Authority #1, BryanLGH Medical Center Project | | | | | | | | |
Series A, Pre-refunded 06/01/2011 @ 100 (AMBAC) | | | | | | | | |
5.000%, 06/01/2019 ◊ | | | 500 | | | | 522 | |
Madison County Hospital Authority #1, Faith Regional Health Services Project Pre-refunded 01/01/2012 @ 100 (RAAI) | | | | | | | | |
5.500%, 07/01/2021 ◊ | | | 500 | | | | 535 | |
| Nebraska Investment Finance Authority, Great Plains Regional Medical Center Project (RAAI) | | | | | | | | |
| 5.200%, 11/15/2016 | | | 250 | | | | 258 | |
| 5.300%, 11/15/2017 | | | 805 | | | | 829 | |
| | | | | | | | | |
| | | | | | | | 7,788 | |
| | | | | | | | | |
| Housing – 1.3% |
| Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments (GNMA) | | | | | | | | |
| 5.150%, 11/20/2022 | | | 550 | | | | 557 | |
| | | | | | | | | |
| Miscellaneous – 3.2% |
| Forsyth, Montana, Pollution Control, Northwestern Corporation (AMBAC) | | | | | | | | |
| 4.650%, 08/01/2023 | | | 585 | | | | 580 | |
| Washington County Wastewater & Solid Waste Disposal Facilities, Cargill Incorporated Project (AMT) | | | | | | | | |
| 4.850%, 04/01/2035 | | | 500 | | | | 468 | |
| Washington County Wastewater Facilities, Cargill Incorporated Project (AMT) | | | | | | | | |
| 5.900%, 11/01/2027 | | | 300 | | | | 308 | |
| | | | | | | | | |
| | | | | | | | 1,356 | |
| | | | | | | | | |
| Recreational Facility Authority – 3.3% |
| Douglas County Zoo Facility, Omaha’s Henry Doorly Zoo Project | | | | | | | | |
| 4.750%, 09/01/2024 | | | 1,365 | | | | 1,386 | |
| | | | | | | | | |
| Revolving Funds – 1.4% |
| Nebraska Investment Finance Authority, Drinking Water, Series A | | | | | | | | |
| 5.150%, 01/01/2016 | | | 580 | | | | 587 | |
| | | | | | | | | |
| Tax Revenue – 2.9% |
| Omaha Special Tax | | | | | | | | |
| 5.250%, 10/15/2028 | | | 650 | | | | 703 | |
| Series A | | | | | | | | |
| 5.125%, 02/01/2032 | | | 500 | | | | 511 | |
| | | | | | | | | |
| | | | | | | | 1,214 | |
| | | | | | | | | |
| Utilities – 20.9% |
| Burt County Public Power District, Electric System | | | | | | | | |
| 4.850%, 07/01/2026 | | | 335 | | | | 322 | |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 750 | | | | 746 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 73
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Nebraska Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Grand Island Electric System (NATL) | | | | | | | | |
| 5.125%, 08/15/2016 | | $ | 750 | | | $ | 780 | |
| Hastings Electric System (AGM) | | | | | | | | |
| 5.000%, 01/01/2015 | | | 250 | | | | 258 | |
| Lincoln Electric System | | | | | | | | |
| 5.000%, 09/01/2026 | | | 250 | | | | 265 | |
| Municipal Energy Agency of Nebraska, Power Supply System, Series A (BHAC) | | | | | | | | |
| 5.375%, 04/01/2039 | | | 150 | | | | 160 | |
| Nebraska Public Power District, Series B | | | | | | | | |
| 5.000%, 01/01/2033 | | | 500 | | | | 518 | |
| Omaha Public Power District, Electric System | | | | | | | | |
| Series A | | | | | | | | |
| 5.500%, 02/01/2033 | | | 1,000 | | | | 1,090 | |
| 5.500%, 02/01/2035 | | | 1,200 | | | | 1,302 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGC) | | | | | | | | |
| 5.000%, 07/01/2025 | | | 500 | | | | 521 | |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.250%, 07/01/2025 | | | 1,000 | | | | 1,027 | |
| South Sioux City, Combined Electric, Water & Sewer | | | | | | | | |
| 4.750%, 08/01/2027 | | | 250 | | | | 235 | |
| Southern Nebraska Public Power District, Electric System | | | | | | | | |
| 5.250%, 12/15/2028 | | | 1,500 | | | | 1,606 | |
| | | | | | | | | |
| | | | | | | | 8,830 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 31,371 | |
| | | | | | | | | |
| General Obligations – 20.9% |
| Brown County | | | | | | | | |
| 4.350%, 06/15/2026 | | | 200 | | | | 200 | |
| 4.700%, 12/15/2026 | | | 400 | | | | 401 | |
| Buffalo County (AGC) | | | | | | | | |
| 6.000%, 12/15/2028 | | | 195 | | | | 211 | |
| Douglas County School District #10, Elkhorn Public Schools | | | | | | | | |
| 6.000%, 06/15/2028 | | | 500 | | | | 532 | |
| Douglas County School District #17, Millard Public Schools | | | | | | | | |
| 4.000%, 06/15/2017 | | | 1,000 | | | | 1,058 | |
| Douglas County School District #54, Ralston Public Schools (AGM) | | | | | | | | |
| 5.000%, 12/15/2016 | | | 845 | | | | 882 | |
| La Vista | | | | | | | | |
| 4.800%, 12/15/2026 | | | 345 | | | | 346 | |
Lancaster County School District #1, Lincoln Public Schools Pre-refunded 01/15/2011 @ 100 | | | | | | | | |
5.250%, 07/15/2019 ◊ | | | 220 | | | | 226 | |
Lincoln-Lancaster County Public Building Commission, Tax Supported Lease Rental | | | | | | | | |
| 4.500%, 10/15/2026 | | | 750 | | | | 763 | |
| Madison County School District #2, Norfolk Public Schools (NATL) | | | | | | | | |
| 5.000%, 12/15/2025 | | | 1,000 | | | | 1,055 | |
| Omaha | | | | | | | | |
| 5.750%, 10/15/2028 | | | 450 | | | | 519 | |
| Omaha-Douglas Public Building Commission | | | | | | | | |
| 4.900%, 05/01/2016 | | | 500 | | | | 517 | |
| 5.100%, 05/01/2020 | | | 300 | | | | 310 | |
| Puerto Rico Commonwealth, Series C-7 (NATL) | | | | | | | | |
| 6.000%, 07/01/2027 | | | 250 | | | | 264 | |
| Puerto Rico Commonwealth, Public Improvement | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 07/01/2026 | | | 375 | | | | 378 | |
| Saunders County (AGM) | | | | | | | | |
| 5.000%, 11/01/2030 | | | 650 | | | | 659 | |
| Scotts Bluff County | | | | | | | | |
| 4.550%, 01/15/2026 | | | 500 | | | | 502 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 8,823 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
Cost ($38,777) | | | | | | | 40,194 | |
| | | | | | | | | |
| Short-Term Investment – 3.6% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | | | | | | |
Total Short-Term Investment | | | | | | | | |
(Cost $1,531) | | | 1,531,352 | | | | 1,531 | |
| | | | | | | | | |
Total Investments 5 – 98.7% | | | | | | | | |
(Cost $40,308) | | | | | | | 41,725 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.3% | | | | | | | 546 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 42,271 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $40,551. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 1,778 | |
| Gross unrealized depreciation | | | (604 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 1,174 | |
| | | | | |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $776, which represents 1.8% of total net assets. |
| |
| BHAC – | Berkshire Hathaway Assurance Corporation |
| |
| GNMA – | Government National Mortgage Association |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| RAAI – | Radian Asset Assurance, Inc. |
The accompanying notes are an integral part of the financial statements.
74 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Ohio Tax Free Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 97.3% |
| Revenue Bonds – 67.1% |
| Continuing Care Retirement Communities – 1.8% |
| Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2026 | | $ | 800 | | | $ | 729 | |
| Hamilton County Health Care, Life Enriching Communities Project, Series A | | | | | | | | |
| 5.000%, 01/01/2027 | | | 400 | | | | 371 | |
| | | | | | | | | |
| | | | | | | | 1,100 | |
| | | | | | | | | |
| Education – 18.6% |
| Bowling Green Student Housing, State University Project | | | | | | | | |
| 5.750%, 06/01/2031 | | | 500 | | | | 486 | |
| Cincinnati Port Development Authority, Economic Development Authority, Sisters of Mercy | | | | | | | | |
| 5.000%, 10/01/2025 | | | 250 | | | | 235 | |
| Ohio Higher Educational Facilities, Baldwin-Wallace College Project | | | | | | | | |
| 5.000%, 12/01/2013 | | | 750 | | | | 824 | |
| Ohio Higher Educational Facilities, College of Wooster Project | | | | | | | | |
| 5.000%, 09/01/2020 | | | 400 | | | | 424 | |
| Ohio Higher Educational Facilities, John Carroll University Project | | | | | | | | |
| 5.000%, 04/01/2019 | | | 1,000 | | | | 1,053 | |
| Ohio Higher Educational Facilities, Kenyon College Project | | | | | | | | |
| 5.250%, 07/01/2044 | | | 1,200 | | | | 1,242 | |
| Ohio Higher Educational Facilities, Mount Union College Project | | | | | | | | |
| 5.000%, 10/01/2031 | | | 1,000 | | | | 1,012 | |
| Ohio Higher Educational Facilities, Ohio Northern University Project | | | | | | | | |
| 5.000%, 05/01/2026 | | | 1,000 | | | | 1,016 | |
| Ohio Higher Educational Facilities, Otterbein College Project, Series A | | | | | | | | |
| 5.500%, 12/01/2028 | | | 500 | | | | 533 | |
| Ohio Higher Educational Facilities, University of Dayton Project | | | | | | | | |
| 5.375%, 12/01/2029 | | | 645 | | | | 680 | |
| Ohio Higher Educational Facilities, Wittenburg University 2005 Project | | | | | | | | |
| 5.000%, 12/01/2024 | | | 505 | | | | 477 | |
| Ohio Higher Educational Facilities, Xavier University Project | | | | | | | | |
| 5.000%, 05/01/2040 | | | 1,500 | | | | 1,515 | |
Pre-refunded 05/01/2013 @ 100 (FGIC) | | | | | | | | |
5.250%, 05/01/2016 ◊ | | | 1,000 | | | | 1,117 | |
| University of Cincinnati | | | | | | | | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.500%, 06/01/2014 | | | 1,000 | | | | 1,050 | |
| | | | | | | | | |
| | | | | | | | 11,664 | |
| | | | | | | | | |
| Healthcare – 16.5% |
| Allen County Hospital Facilities, Catholic Healthcare | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 250 | | | | 247 | |
| Series B | | | | | | | | |
| 4.125%, 09/01/2020 | | | 500 | | | | 495 | |
| Fairfield County Hospital Facilities, Fairfield Medical Center Project (RAAI) | | | | | | | | |
| 5.000%, 06/15/2022 | | | 345 | | | | 338 | |
| Franklin County Health Care Facilities, Ohio Presbyterian Services, Series A | | | | | | | | |
| 5.625%, 07/01/2026 | | | 500 | | | | 496 | |
| Franklin County Hospital Improvement, Nationwide Children’s Hospital Project | | | | | | | | |
| 5.000%, 11/01/2034 | | | 750 | | | | 758 | |
| Series A | | | | | | | | |
| 4.750%, 11/01/2023 | | | 365 | | | | 368 | |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.625%, 08/15/2029 | | | 750 | | | | 739 | |
| Lorain County Hospital, Catholic Healthcare | | | | | | | | |
| 5.500%, 10/01/2017 | | | 350 | | | | 365 | |
| Lucas County Hospital, Promedica Healthcare | | | | | | | | |
| Series D | | | | | | | | |
| 5.000%, 11/15/2038 | | | 400 | | | | 403 | |
| Miami County Hospital Facilities, Refunding & Improvement, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,000 | | | | 1,002 | |
| Montgomery County, Catholic Health Initiatives | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 05/01/2039 | | | 750 | | | | 771 | |
| Series D | | | | | | | | |
| 6.250%, 10/01/2033 | | | 100 | | | | 112 | |
| Montgomery County, Healthcare & Multi-Family Housing Revenue, St. Leonard | | | | | | | | |
| 6.625%, 04/01/2040 | | | 500 | | | | 495 | |
| Ohio Higher Educational Facilities, University Hospitals Health System, Series 2009A | | | | | | | | |
| 6.750%, 01/15/2039 | | | 500 | | | | 532 | |
| Richland County Hospital Facilities, Medcentral Health System Obligated Group | | | | | | | | |
| 5.250%, 11/15/2036 | | | 535 | | | | 511 | |
| Rochester Health Care Facilities, Mayo Clinic | | | | | | | | |
| Series D | | | | | | | | |
| 5.000%, 11/15/2038 | | | 1,375 | | | | 1,421 | |
| Ross County Hospital, Adena Health Systems | | | | | | | | |
| 5.500%, 12/01/2028 | | | 500 | | | | 509 | |
| Scioto County Hospital Revenue, Southern Ohio Medical Center | | | | | | | | |
| 5.750%, 02/15/2038 | | | 800 | | | | 812 | |
| | | | | | | | | |
| | | | | | | | 10,374 | |
| | | | | | | | | |
| Housing – 5.4% |
| Ohio Housing Finance Agency, Residential Mortgage Backed Securities | | | | | | | | |
| Series C (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 5.200%, 09/01/2029 | | | 1,000 | | | | 1,035 | |
| Series E (AMT) (FNMA) (GNMA) | | | | | | | | |
| 4.850%, 09/01/2026 | | | 500 | | | | 503 | |
| Series F (FHLMC) (FNMA) (GNMA) | | | | | | | | |
| 4.750%, 09/01/2029 | | | 1,000 | | | | 1,009 | |
| 5.450%, 09/01/2033 | | | 830 | | | | 859 | |
| | | | | | | | | |
| | | | | | | | 3,406 | |
| | | | | | | | | |
| Lease Revenue – 3.6% |
| Cleveland-Cuyahoga County Port Authority, Rita Project (RAAI) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 750 | | | | 758 | |
| Riversouth Authority, Lazarus Building Redevelopment, Series A | | | | | | | | |
| 5.750%, 12/01/2027 | | | 400 | | | | 373 | |
| Riversouth Authority, Riverfront Area Redevelopment, Series A | | | | | | | | |
| 5.250%, 12/01/2017 | | | 1,000 | | | | 1,110 | |
| | | | | | | | | |
| | | | | | | | 2,241 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 75
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Ohio Tax Free Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Miscellaneous – 1.7% |
| Toledo-Lucas County Port Authority Facilities, Cargill Incorporated Project, Series B | | | | | | | | |
| 4.500%, 12/01/2015 | | $ | 1,000 | | | $ | 1,060 | |
| | | | | | | | | |
| Revolving Funds – 1.7% |
Ohio Water Development Authority, Water Pollution Control Pre-refunded 06/01/2012 @ 100 | | | | | | | | |
5.050%, 12/01/2021 ◊ | | | 1,000 | | | | 1,087 | |
| | | | | | | | | |
| Tax Revenue – 1.0% |
| Buckeye Tobacco Settlement, Series A-2 | | | | | | | | |
| 5.875%, 06/01/2030 | | | 200 | | | | 156 | |
| Puerto Rico Sales Tax Financing, Series A | | | | | | | | |
| 5.375%, 08/01/2039 | | | 500 | | | | 501 | |
| | | | | | | | | |
| | | | | | | | 657 | |
| | | | | | | | | |
| Transportation – 1.6% |
| Columbus Regional Airport Authority (NATL) | | | | | | | | |
| 5.000%, 01/01/2028 | | | 1,000 | | | | 1,025 | |
| | | | | | | | | |
| Utilities – 15.2% |
| American Municipal Power, Prairie State Energy Campus Project, Series A | | | | | | | | |
| 5.000%, 02/15/2031 | | | 1,000 | | | | 1,020 | |
| Columbus Sewer System, Series A | | | | | | | | |
| 4.250%, 06/01/2030 | | | 1,000 | | | | 984 | |
| Hamilton County Sewer System, Metropolitan Sewer District, Series A (NATL) | | | | | | | | |
| 5.000%, 12/01/2026 | | | 930 | | | | 990 | |
| Hamilton Electric, Series A (AGM) | | | | | | | | |
| 4.300%, 10/15/2016 | | | 1,000 | | | | 1,098 | |
| Montgomery County Water, Greater Moraine Beaver (AMBAC) | | | | | | | | |
| 5.375%, 11/15/2016 | | | 1,000 | | | | 1,037 | |
| Northeast Ohio Regional Sewer District, Wastewater Revenue (NATL) | | | | | | | | |
| 4.500%, 11/15/2037 | | | 700 | | | | 689 | |
| Ohio Air Quality Development Authority, Firstenergy Generation, Series A | | | | | | | | |
| 5.700%, 08/01/2020 | | | 500 | | | | 535 | |
| Ohio Water Development Authority, Fresh Water Services Escrowed to Maturity (AMBAC) | | | | | | | | |
| 5.800%, 12/01/2011 § | | | 750 | | | | 751 | |
| Ohio Water Development Authority, Water Quality | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 06/01/2030 | | | 200 | | | | 215 | |
| Puerto Rico Electric Power Authority | | | | | | | | |
| Series CCC | | | | | | | | |
| 5.000%, 07/01/2024 | | | 1,000 | | | | 1,021 | |
| Series WW | | | | | | | | |
| 5.375%, 07/01/2023 | | | 400 | | | | 421 | |
| Series XX | | | | | | | | |
| 5.250%, 07/01/2040 | | | 750 | | | | 752 | |
| | | | | | | | | |
| | | | | | | | 9,513 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 42,127 | |
| | | | | | | | | |
| General Obligations – 28.6% |
| Cincinnati, Series A | | | | | | | | |
| 4.500%, 12/01/2029 | | | 150 | | | | 152 | |
| Cincinnati City School District, Classroom Construction & Improvement (FGIC) (NATL) | | | | | | | | |
| 5.250%, 12/01/2019 | | | 535 | | | | 625 | |
| 5.250%, 12/01/2027 | | | 380 | | | | 437 | |
| Cincinnati City School District, School Improvement | | | | | | | | |
| 5.250%, 06/01/2021 | | | 300 | | | | 344 | |
| Columbus City School District, School Facilities Construction & Improvement, Series B | | | | | | | | |
| 5.000%, 12/01/2027 | | | 1,320 | | | | 1,422 | |
| Cuyahoga Falls, Various Purpose | | | | | | | | |
| 4.250%, 12/01/2034 | | | 750 | | | | 719 | |
| Dayton City School District, School Facilities Construction & Improvement | | | | | | | | |
| Series D (FGIC) (NATL) | | | | | | | | |
| 5.000%, 12/01/2011 | | | 500 | | | | 529 | |
| Franklin County | | | | | | | | |
| 4.500%, 12/01/2027 | | | 690 | | | | 723 | |
| Gahanna (NATL) | | | | | | | | |
| 5.000%, 12/01/2027 | | | 400 | | | | 425 | |
| Greene County, General Infrastructure (AMBAC) | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 1,084 | |
| Highland School District Zero Coupon Bond (OSDCEP) | | | | | | | | |
4.048%, 12/01/2022 ¤ | | | 100 | | | | 61 | |
| Highland School District, School Facilities Construction & Improvement (OSDCEP) | | | | | | | | |
| 5.375%, 12/01/2033 | | | 1,000 | | | | 1,088 | |
| Ohio Common Schools, Series A | | | | | | | | |
| 5.125%, 09/15/2022 | | | 1,000 | | | | 1,051 | |
| Ohio Higher Education | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 08/01/2022 | | | 1,000 | | | | 1,045 | |
Series A, Pre-refunded 02/01/2011 @ 100 | | | | | | | | |
5.000%, 02/01/2019 ◊ | | | 1,000 | | | | 1,028 | |
Series B, Pre-refunded 11/01/2011 @ 100 | | | | | | | | |
5.000%, 11/01/2015 ◊ | | | 1,000 | | | | 1,062 | |
| Ohio State Infrastructure Improvement, Series A | | | | | | | | |
| 5.500%, 02/01/2020 | | | 1,000 | | | | 1,198 | |
| Ohio State Parks & Recreational Facilities | | | | | | | | |
| Series II-A (AGM) | | | | | | | | |
| 5.250%, 02/01/2020 | | | 1,000 | | | | 1,096 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 260 | | | | 280 | |
| Sidney City School District (FGIC) (NATL) | | | | | | | | |
| 4.375%, 12/01/2027 | | | 755 | | | | 758 | |
| Solon Rebuilding & Improvement | | | | | | | | |
| 5.000%, 12/01/2021 | | | 1,000 | | | | 1,082 | |
| St. Marys City School District, Construction & Improvement (AGM) (OSDCEP) | | | | | | | | |
| 5.000%, 12/01/2028 | | | 600 | | | | 629 | |
| Toledo City School District, School Facilities Improvement (AGM) (OSDCEP) | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 1,106 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 17,944 | |
| | | | | | | | | |
| Certificates of Participation – 1.6% |
| Mahoning County Career & Technical Center | | | | | | | | |
| Series B | | | | | | | | |
| 4.750%, 12/01/2036 | | | 475 | | | | 461 | |
| Mayfield County School District, Middle School Project, Series B, Zero Coupon Bond | | | | | | | | |
4.880%, 09/01/2027 ¤ | | | 435 | | | | 190 | |
4.959%, 09/01/2028 ¤ | | | 855 | | | | 351 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 1,002 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
Cost ($59,264) | | | | | | | 61,073 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
76 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Ohio Tax Free Bond Fund (concluded) |
| DESCRIPTION | | SHARES | | FAIR VALUE > |
| |
| |
Short-Term Investment – 3.5% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | | | | | | |
(Cost $2,194) | | | 2,193,745 | | | $ | 2,194 | |
| | | | | | | | | |
Total Investments 5 – 100.8% | | | | | | | | |
(Cost $61,458) | | | | | | | 63,267 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (0.8)% | | | | | | | (493 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 62,774 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| § | | 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, 2010. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $61,552. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 2,170 | |
| Gross unrealized depreciation | | | (455 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 1,715 | |
| | | | | |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $503, which represents 0.8% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHLMC – | Federal Home Loan Mortgage Corporation |
| |
| FNMA – | Federal National Mortgage Association |
| |
| GNMA – | Government National Mortgage Association |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| OSDCEP – | Ohio School District Credit Enhancement Program |
| |
| RAAI – | Radian Asset Assurance Inc. |
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 94.1% |
| Revenue Bonds – 44.3% |
| Continuing Care Retirement Communities – 2.7% |
| Clackamas County Hospital Facility Authority, Robison Jewish Home | | | | | | | | |
| 5.125%, 10/01/2024 | | $ | 1,000 | | | $ | 816 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2027 | | | 1,000 | | | | 781 | |
| Multnomah County Hospital Facilities Authority, Terwilliger Plaza Project | | | | | | | | |
| 6.500%, 12/01/2029 | | | 1,900 | | | | 1,916 | |
| Series A | | | | | | | | |
| 5.250%, 12/01/2026 | | | 1,000 | | | | 947 | |
| | | | | | | | | |
| | | | | | | | 4,460 | |
| | | | | | | | | |
| Education – 5.9% |
| Forest Grove Campus Improvement, Pacific University Project | | | | | | | | |
| 5.750%, 05/01/2024 | | | 250 | | | | 259 | |
| Series A (RAAI) | | | | | | | | |
| 5.000%, 05/01/2022 | | | 2,350 | | | | 2,373 | |
| Oregon Facilities Authority, Linfield College Project, Series A | | | | | | | | |
| 5.000%, 10/01/2025 | | | 1,000 | | | | 1,005 | |
| Oregon Facilities Authority, University of Portland Projects, Series A | | | | | | | | |
| 4.250%, 04/01/2014 | | | 1,000 | | | | 1,054 | |
| 4.500%, 04/01/2021 | | | 2,000 | | | | 2,010 | |
| Oregon Facilities Authority, Willamette University Projects, Series A | | | | | | | | |
| 4.300%, 10/01/2021 | | | 1,085 | | | | 1,083 | |
| 4.000%, 10/01/2024 | | | 1,000 | | | | 986 | |
| Oregon Health & Science University | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 5.250%, 07/01/2022 | | | 1,000 | | | | 1,017 | |
| | | | | | | | | |
| | | | | | | | 9,787 | |
| | | | | | | | | |
| Healthcare – 13.8% |
| Clackamas County Hospital Facility Authority, Legacy Health System, Series A | | | | | | | | |
| 5.000%, 07/15/2021 | | | 1,000 | | | | 1,050 | |
| Clackamas County Hospital Facility Authority, Willamette Falls Hospital Project (RAAI) | | | | | | | | |
| 5.500%, 04/01/2022 | | | 1,200 | | | | 1,206 | |
| Deschutes County Facilities Authority, Cascade Healthcare Community | | | | | | | | |
| 7.375%, 01/01/2023 | | | 1,500 | | | | 1,759 | |
| Series B (AMBAC) | | | | | | | | |
| 5.000%, 01/01/2016 | | | 250 | | | | 261 | |
| Klamath Falls Community Hospital Authority, Merle West Medical Center Project (AGC) | | | | | | | | |
| 4.750%, 09/01/2020 | | | 1,425 | | | | 1,452 | |
| Medford Hospital Facilities Authority, Asante Health System | | | | | | | | |
| 5.500%, 08/15/2028 (AGM) | | | 3,000 | | | | 3,226 | |
| Series A (NATL) | | | | | | | | |
| 5.250%, 08/15/2011 | | | 325 | | | | 326 | |
| 5.375%, 08/15/2012 | | | 320 | | | | 321 | |
| Multnomah County Hospital Facilities Authority, Adventist Health System/West, Series A | | | | | | | | |
| 4.500%, 09/01/2021 | | | 440 | | | | 451 | |
| 5.000%, 09/01/2021 | | | 1,875 | | | | 1,994 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 77
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Multnomah County Hospital Facilities Authority, Providence Health System | | | | | | | | |
| 5.250%, 10/01/2022 | | $ | 1,000 | | | $ | 1,077 | |
| Oregon Facilities Authority, Legacy Health System | | | | | | | | |
| Series A | | | | | | | | |
| 4.250%, 03/15/2017 | | | 2,000 | | | | 2,064 | |
| 4.750%, 03/15/2024 | | | 1,000 | | | | 1,005 | |
| Oregon Facilities Authority, Peacehealth, Series A | | | | | | | | |
| 5.000%, 11/01/2020 | | | 1,000 | | | | 1,078 | |
| Oregon Facilities Authority, Samaritan Health Services, Series A | | | | | | | | |
| 5.000%, 10/01/2019 | | | 1,250 | | | | 1,339 | |
| 5.000%, 10/01/2024 | | | 1,685 | | | | 1,733 | |
| Salem Hospital Facility Authority, Series A | | | | | | | | |
| 5.750%, 08/15/2023 | | | 1,500 | | | | 1,635 | |
| Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A | | | | | | | | |
| 5.000%, 03/01/2012 | | | 690 | | | | 733 | |
| | | | | | | | | |
| | | | | | | | 22,710 | |
| | | | | | | | | |
| Housing – 1.6% |
| Oregon Housing & Community Services, Single Family Mortgage Program | | | | | | | | |
| Series A | | | | | | | | |
| 4.050%, 01/01/2018 | | | 235 | | | | 239 | |
| 6.400%, 07/01/2018 | | | 170 | | | | 171 | |
| Series D | | | | | | | | |
| 4.750%, 07/01/2022 | | | 1,250 | | | | 1,306 | |
| Series E (FHA) | | | | | | | | |
| 5.750%, 07/01/2013 | | | 170 | | | | 174 | |
| Portland Housing Authority, Yards Union Station Project (AMT) | | | | | | | | |
| 4.750%, 05/01/2022 | | | 705 | | | | 708 | |
| | | | | | | | | |
| | | | | | | | 2,598 | |
| | | | | | | | | |
| Lease Revenue – 0.7% |
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 | | | | 1,055 | |
| | | | | | | | | |
| Recreational Facility Authority – 0.6% |
| Portland Urban Renewal & Redevelopment, Convention Center, Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/15/2015 | | | 1,000 | | | | 1,013 | |
| | | | | | | | | |
| Tax Revenue – 4.9% |
| Keizer Assessment, Keizer Station Area A Local Improvement District | | | | | | | | |
| 5.200%, 06/01/2031 | | | 905 | | | | 917 | |
| Medford Urban Renewal Agency | | | | | | | | |
| 4.500%, 06/01/2013 | | | 1,010 | | | | 1,077 | |
| Oregon Department of Administrative Services Lottery, Series A (AGM) | | | | | | | | |
| 5.000%, 04/01/2012 | | | 1,050 | | | | 1,054 | |
| Portland Economic Development, Broadway Project, Series A | | | | | | | | |
| 5.125%, 04/01/2016 | | | 880 | | | | 989 | |
| 6.250%, 04/01/2023 | | | 1,355 | | | | 1,547 | |
| Portland Urban Renewal & Redevelopment, South Park Blocks, Series B | | | | | | | | |
| 5.000%, 06/15/2021 | | | 2,030 | | | | 2,244 | |
| Seaside Urban Renewal Agency, Greater Seaside Urban Renewal | | | | | | | | |
| 4.750%, 06/01/2015 | | | 280 | | | | 290 | |
| | | | | | | | | |
| | | | | | | | 8,118 | |
| | | | | | | | | |
| Transportation – 4.8% |
Oregon Department of Transportation, Highway User Tax Pre-refunded 11/15/2010 @ 100 | | | | | | | | |
5.125%, 11/15/2014 ◊ | | | 1,000 | | | | 1,018 | |
| Series A | | | | | | | | |
| 5.000%, 11/15/2021 | | | 1,000 | | | | 1,140 | |
| 5.000%, 11/15/2024 | | | 1,000 | | | | 1,062 | |
Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
5.500%, 11/15/2016 ◊ | | | 1,000 | | | | 1,115 | |
| Portland International Airport | | | | | | | | |
| Series 12A (FGIC) (NATL) | | | | | | | | |
| 5.250%, 07/01/2011 | | | 1,165 | | | | 1,170 | |
| 5.250%, 07/01/2012 | | | 2,000 | | | | 2,007 | |
| Redmond Airport | | | | | | | | |
| 5.500%, 06/01/2024 | | | 215 | | | | 218 | |
| 5.750%, 06/01/2027 | | | 200 | | | | 202 | |
| | | | | | | | | |
| | | | | | | | 7,932 | |
| | | | | | | | | |
| Utilities – 9.3% |
| Eugene Electric Utilities (AGM) | | | | | | | | |
| 5.000%, 08/01/2011 | | | 1,305 | | | | 1,310 | |
| Lane County Metropolitan Wastewater Management | | | | | | | | |
| 5.000%, 11/01/2022 | | | 1,500 | | | | 1,648 | |
| (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2021 | | | 820 | | | | 890 | |
| Portland Sewer System, First Lien, Series A | | | | | | | | |
| 4.750%, 06/15/2024 | | | 1,000 | | | | 1,065 | |
| Portland Sewer System, Second Lien | | | | | | | | |
| Series B (NATL) | | | | | | | | |
| 5.000%, 06/15/2023 | | | 1,175 | | | | 1,274 | |
| Portland Water System, Series A | | | | | | | | |
| 5.000%, 05/01/2015 | | | 2,000 | | | | 2,313 | |
| Portland Water System, Second Lien | | | | | | | | |
| Series A (NATL) | | | | | | | | |
| 4.375%, 10/01/2024 | | | 500 | | | | 517 | |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGC) | | | | | | | | |
| 5.000%, 07/01/2025 | | | 1,500 | | | | 1,563 | |
| Puerto Rico Electric Power Authority, Series WW | | | | | | | | |
| 5.375%, 07/01/2023 | | | 800 | | | | 842 | |
| Redmond Water Revenue | | | | | | | | |
| 4.500%, 06/01/2025 | | | 450 | | | | 467 | |
| The Dalles Water Revenue (AMBAC) | | | | | | | | |
| 4.250%, 06/01/2020 | | | 325 | | | | 341 | |
| Washington County Clean Water Services (FGIC) (NATL) | | | | | | | | |
| 5.125%, 10/01/2014 | | | 1,790 | | | | 1,871 | |
| (NATL) | | | | | | | | |
| 5.000%, 10/01/2014 | | | 1,000 | | | | 1,146 | |
| | | | | | | | | |
| | | | | | | | 15,247 | |
| | | | | | | | | |
Total Revenue Bonds | | | | | | | 72,920 | |
| | | | | | | | | |
| General Obligations – 46.5% |
| Central Oregon Community College District (SBG) | | | | | | | | |
| 4.000%, 06/15/2019 | | | 1,000 | | | | 1,086 | |
| 4.500%, 06/15/2020 | | | 800 | | | | 895 | |
The accompanying notes are an integral part of the financial statements.
78 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Chemeketa Community College District (SBG) | | | | | | | | |
| 5.500%, 06/15/2024 | | $ | 1,000 | | | $ | 1,141 | |
| Escrowed to Maturity (FGIC) | | | | | | | | |
| 5.500%, 06/01/2013 § | | | 2,170 | | | | 2,462 | |
| Clackamas & Washington Counties School District #3JT, West Linn-Wilsonville (SBG) | | | | | | | | |
| 4.125%, 06/15/2025 | | | 1,070 | | | | 1,096 | |
| Clackamas Community College District (NATL) | | | | | | | | |
| 5.000%, 05/01/2019 | | | 1,145 | | | | 1,270 | |
| Clackamas County School District #115 | | | | | | | | |
| Series B (NATL) (SBG) | | | | | | | | |
| 4.500%, 06/15/2021 | | | 1,975 | | | | 2,114 | |
| Clackamas County School District #12, North Clackamas, Deferred Interest | | | | | | | | |
Series B, Convertible CABs (AGM) (SBG), 0.000% through 06/15/2011, thereafter
5.000%, 06/15/2022 ◗ | | | 3,135 | | | | 3,247 | |
Series B, Convertible CABs (AGM) (SBG), 0.000% through 06/15/2011, thereafter
5.000%, 06/15/2027 ◗ | | | 3,665 | | | | 3,825 | |
| Clackamas County School District #46, Oregon Trail, Series A (SBG) | | | | | | | | |
| 5.000%, 06/15/2024 | | | 1,000 | | | | 1,105 | |
| Clackamas County School District #7J, Lake Oswego (AGM) | | | | | | | | |
| 5.250%, 06/01/2025 | | | 200 | | | | 239 | |
| Clackamas County School District #86, Canby (AGM) (SBG) | | | | | | | | |
| 5.000%, 06/15/2018 | | | 1,000 | | | | 1,106 | |
| 5.000%, 06/15/2021 | | | 1,305 | | | | 1,416 | |
Deschutes & Jefferson Counties School District #2-J, Redmond | | | | | | | | |
| Series A (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.000%, 06/15/2013 | | | 1,250 | | | | 1,395 | |
| Series B, Zero Coupon Bond (FGIC) (NATL) (SBG) | | | | | | | | |
4.179%, 06/15/2021 ¤ | | | 1,000 | | | | 636 | |
| Zero Coupon Bond (SBG) | | | | | | | | |
4.309%, 06/15/2022 ¤ | | | 3,030 | | | | 1,820 | |
| Deschutes County (AGM) | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,755 | | | | 1,920 | |
Deschutes County School District #6, Sisters Pre-refunded 06/15/2011 @ 100 (FGIC) (SBG) | | | | | | | | |
5.500%, 06/15/2014 ◊ | | | 1,725 | | | | 1,812 | |
| Hood River County School District (SBG) | | | | | | | | |
| 5.250%, 06/15/2016 | | | 1,030 | | | | 1,074 | |
| Independence, City Hall Project (AGM) | | | | | | | | |
| 4.000%, 06/15/2021 | | | 365 | | | | 380 | |
| 4.000%, 06/15/2022 | | | 375 | | | | 388 | |
| 4.000%, 06/15/2023 | | | 390 | | | | 400 | |
| 4.000%, 06/15/2024 | | | 360 | | | | 366 | |
| Jackson County School District #549C, Medford (SBG) | | | | | | | | |
| 5.000%, 06/15/2012 | | | 2,000 | | | | 2,170 | |
| Josephine County Unit School District, Three Rivers (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.000%, 12/15/2019 | | | 1,000 | | | | 1,169 | |
| Lane County School District #40, Creswell (SBG) | | | | | | | | |
| 5.000%, 06/15/2011 | | | 585 | | | | 587 | |
Linn County Community School District #9, Lebanon Pre-refunded 06/15/2013 @ 100 (FGIC) (SBG) | | | | | | | | |
5.550%, 06/15/2021 ◊ | | | 1,000 | | | | 1,138 | |
| Marion & Clackamas Counties School District #4J, Silver Falls (NATL) (SBG) | | | | | | | | |
| 4.500%, 06/15/2022 | | | 1,305 | | | | 1,384 | |
| McMinnville School District #40 (AGM) | | | | | | | | |
| 5.500%, 06/15/2013 | | | 1,000 | | | | 1,131 | |
| Metro National Areas | | | | | | | | |
| 5.250%, 09/01/2014 | | | 1,000 | | | | 1,028 | |
| 5.000%, 06/01/2020 | | | 1,635 | | | | 1,863 | |
Multnomah County School District #7, Reynolds Pre-refunded 06/15/2011 @ 100 (SBG) | | | | | | | | |
5.625%, 06/15/2015 ◊ | | | 1,000 | | | | 1,051 | |
| Multnomah-Clackamas Counties School District #10JT, Gresham-Barlow (AGM) (SBG) | | | | | | | | |
| 5.250%, 06/15/2017 | | | 1,000 | | | | 1,186 | |
Pre-refunded 06/15/2011 @ 100 (AGM) (SBG) | | | | | | | | |
5.500%, 06/15/2013 ◊ | | | 1,780 | | | | 1,869 | |
| Multnomah-Clackamas Counties School District #28JT Zero Coupon Bond (AMBAC) (SBG) | | | | | | | | |
0.545%, 06/01/2016 ¤ | | | 1,000 | | | | 788 | |
| North Lincoln Fire & Rescue District #1 (AGM) | | | | | | | | |
| 4.250%, 02/01/2018 | | | 125 | | | | 135 | |
| Oregon Department of Administrative Services, Oregon Opportunity | | | | | | | | |
| 5.000%, 12/01/2020 | | | 1,500 | | | | 1,762 | |
| Pacific City Joint Water Sanitation Authority | | | | | | | | |
| 4.650%, 07/01/2022 | | | 455 | | | | 457 | |
| Portland Community College District | | | | | | | | |
Series A, Pre-refunded 06/01/2011 @ 100 | | | | | | | | |
5.375%, 06/01/2015 ◊ | | | 1,375 | | | | 1,440 | |
| Puerto Rico Commonwealth, Government Development, Series B | | | | | | | | |
| 5.000%, 12/01/2014 | | | 1,000 | | | | 1,078 | |
| Puerto Rico Public Buildings Authority | | | | | | | | |
Series J,
Mandatory Put 07/01/2012 @ 100 (AMBAC) (COMGTY) | | | | | | | | |
| 5.000%, 07/01/2036 | | | 1,000 | | | | 1,038 | |
| Redmond, Terminal Expansion Project | | | | | | | | |
| 4.000%, 06/01/2021 | | | 240 | | | | 243 | |
| 4.250%, 06/01/2023 | | | 200 | | | | 200 | |
| 4.375%, 06/01/2024 | | | 200 | | | | 200 | |
| 4.625%, 06/01/2029 | | | 500 | | | | 491 | |
| Salem-Keizer School District #24J (AGM) (SBG) | | | | | | | | |
| 5.000%, 06/15/2014 | | | 1,150 | | | | 1,312 | |
| Series B, Deferred Interest, Zero Coupon Bond (SBG) | | | | | | | | |
4.229%, 06/15/2022 ¤ | | | 905 | | | | 549 | |
| Sandy | | | | | | | | |
| 4.000%, 06/01/2015 | | | 190 | | | | 205 | |
| 4.000%, 06/01/2016 | | | 150 | | | | 160 | |
| 4.000%, 06/01/2017 | | | 210 | | | | 221 | |
| 4.000%, 06/01/2018 | | | 240 | | | | 251 | |
| 4.000%, 06/01/2019 | | | 100 | | | | 104 | |
| The Dalles | | | | | | | | |
| 4.000%, 06/01/2017 | | | 130 | | | | 141 | |
| 4.000%, 06/01/2018 | | | 140 | | | | 151 | |
| 4.000%, 06/01/2019 | | | 75 | | | | 80 | |
| Tualatin Hills Park & Recreation District (FGIC) (NATL) | | | | | | | | |
| 5.750%, 03/01/2013 | | | 870 | | | | 980 | |
| Umatilla County School District #16R, Pendleton (FGIC) (NATL) | | | | | | | | |
| 5.250%, 07/01/2014 | | | 1,540 | | | | 1,741 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 79
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Oregon Intermediate Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| Wasco County School District #12 (AGM) (SBG) | | | | | | | | |
| 5.500%, 06/15/2014 | | $ | 1,080 | | | $ | 1,251 | |
| Washington & Clackamas Counties School District #23J, Tigard (FGIC) (NATL) | | | | | | | | |
| 5.500%, 06/01/2013 | | | 1,000 | | | | 1,131 | |
| Zero Coupon Bond | | | | | | | | |
2.383%, 06/15/2014 ¤ | | | 1,030 | | | | 938 | |
| Washington County | | | | | | | | |
| 5.000%, 06/01/2022 | | | 1,525 | | | | 1,674 | |
| Washington County School District #48J, Beaverton, Series A (AGM) | | | | | | | | |
| 5.000%, 06/01/2014 | | | 1,600 | | | | 1,823 | |
| 5.000%, 06/01/2016 | | | 1,500 | | | | 1,688 | |
| Washington, Multnomah & Yamhill Counties School District #1J | | | | | | | | |
| 5.000%, 11/01/2014 | | | 1,000 | | | | 1,146 | |
| Washington, Multnomah & Yamhill Counties School District #1J, Hillsboro (NATL) | | | | | | | | |
| 5.000%, 06/15/2019 | | | 2,490 | | | | 2,821 | |
| Yamhill County School District #29J, Newberg (FGIC) (NATL) (SBG) | | | | | | | | |
| 5.250%, 06/15/2015 | | | 1,260 | | | | 1,456 | |
| 5.250%, 06/15/2016 | | | 1,835 | | | | 2,129 | |
| Yamhill County School District #40, McMinnville (AGM) (SBG) | | | | | | | | |
| 5.000%, 06/15/2023 | | | 1,005 | | | | 1,103 | |
| | | | | | | | | |
Total General Obligations | | | | | | | 76,656 | |
| | | | | | | | | |
| Certificates of Participation – 3.3% |
| Oregon Department of Administrative Services | | | | | | | | |
| Series A | | | | | | | | |
| 4.700%, 05/01/2025 | | | 1,500 | | | | 1,563 | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,060 | | | | 1,181 | |
| Series C | | | | | | | | |
| 5.000%, 11/01/2025 | | | 2,555 | | | | 2,761 | |
| | | | | | | | | |
Total Certificates of Participation | | | | | | | 5,505 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $148,411) | | | | | | | 155,081 | |
| | | | | | | | | |
Short-Term Investments – 5.2% |
| Money Market Fund – 5.2% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029%Å Ω | | | 8,554,272 | | | | 8,554 | |
| | | | | | | | | |
U.S. Treasury Obligation – 0.0% |
U.S. Treasury Bill o | | | | | | | | |
| 0.129%, 07/15/2010 | | $ | 60,000 | | | | 60 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $8,614) | | | | | | | 8,614 | |
| | | | | | | | | |
Total Investments 5 – 99.3% | | | | | | | | |
(Cost $157,025) | | | | | | | 163,695 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.7% | | | | | | | 1,164 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 164,859 | |
| | | | | | | | | |
Oregon Intermediate Tax Free Fund (concluded)
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| § | | 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) 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, 2010. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Yield shown is effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $157,386. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 7,287 | |
| Gross unrealized depreciation | | | (978 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 6,309 | |
| | | | | |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $708, which represents 0.4% of total net assets. |
| |
| COMGTY – | Commonwealth Guaranty |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHA – | Federal Housing Administration |
| |
| 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.
80 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Short Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 65.7% |
| Alaska – 0.6% |
| Revenue Bond – 0.6% |
| Alaska Railroad Corporation, Capital Grant Receipts (FGIC) (NATL) | | | | | | | | |
| 5.000%, 08/01/2012 | | $ | 1,825 | | | $ | 1,955 | |
| | | | | | | | | |
Arizona – 1.9% |
| Revenue Bonds – 1.9% |
| Glendale Individual Development Authority, Midwestern University | | | | | | | | |
| 5.000%, 05/15/2019 | | | 1,545 | | | | 1,623 | |
| Maricopa County Hospital, Sun Health Corporation Escrowed to Maturity | | | | | | | | |
| 5.000%, 04/01/2011 § | | | 3,815 | | | | 3,948 | |
| Salt River Project, Arizona Agriculture Improvement & Power District Electric Systems | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 01/01/2020 | | | 500 | | | | 567 | |
| | | | | | | | | |
| | | | | | | | 6,138 | |
| | | | | | | | | |
Arkansas – 0.9% |
| Revenue Bond – 0.9% |
| North Little Rock Health Facilities Board, Baptist Health, Series B | | | | | | | | |
| 5.375%, 12/01/2019 | | | 2,750 | | | | 2,949 | |
| | | | | | | | | |
California – 3.8% |
| Revenue Bonds – 1.0% |
| California Statewide Communities Development Authority, Health Facility, Adventist Health | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 03/01/2016 | | | 2,500 | | | | 2,669 | |
| Northern California Power Agency, Series A | | | | | | | | |
| 5.000%, 07/01/2016 | | | 500 | | | | 550 | |
| | | | | | | | | |
| | | | | | | | 3,219 | |
| | | | | | | | | |
| General Obligations – 2.8% |
| California Economic Recovery, Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 4,000 | | | | 4,434 | |
| Long Beach Community College, Series A | | | | | | | | |
| 9.850%, 01/15/2013 | | | 3,750 | | | | 4,499 | |
| | | | | | | | | |
| | | | | | | | 8,933 | |
| | | | | | | | | |
| | | | | | | | 12,152 | |
| | | | | | | | | |
Colorado – 3.0% |
| Revenue Bonds – 3.0% |
| Colorado Health Facilities Authority, Catholic Health Initiatives, Series A | | | | | | | | |
| 5.000%, 07/01/2015 | | | 3,345 | | | | 3,703 | |
Colorado Health Facilities Authority, Evangelical Lutheran, Series B,
Mandatory Put 12/01/2014 @ 100 | | | | | | | | |
| 5.000%, 06/01/2039 | | | 2,400 | | | | 2,506 | |
| Colorado Health Facilities Authority, North Colorado Medical Center Project | | | | | | | | |
| Series A (AGM) | | | | | | | | |
| 5.000%, 05/15/2013 | | | 1,010 | | | | 1,087 | |
| Colorado Health Facilities Authority, Yampa Valley Medical Center Project | | | | | | | | |
| 5.000%, 09/15/2013 | | | 1,000 | | | | 1,058 | |
| Denver City & County Airport System, Series A | | | | | | | | |
| 5.000%, 11/15/2017 | | | 1,110 | | | | 1,242 | |
| | | | | | | | | |
| | | | | | | | 9,596 | |
| | | | | | | | | |
District of Columbia – 0.6% |
| Revenue Bond – 0.6% |
| District of Columbia, Georgetown University | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 04/01/2014 | | | 1,700 | | | | 1,867 | |
| | | | | | | | | |
Florida – 7.0% |
| Revenue Bonds – 7.0% |
| Florida Department of Environmental Protection Preservation, Florida Forever, Series B (NATL) | | | | | | | | |
| 5.000%, 07/01/2011 | | | 10,000 | | | | 10,448 | |
| Florida Hurricane Catastrophe Fund Financial Corporation, Series A | | | | | | | | |
| 5.250%, 07/01/2012 | | | 4,000 | | | | 4,251 | |
| Highlands County Health Facilities Authority, Adventist Health | | | | | | | | |
| 5.000%, 11/15/2015 | | | 1,000 | | | | 1,102 | |
| 5.000%, 11/15/2016 | | | 2,000 | | | | 2,190 | |
| Miami-Dade County Health Facilities Authority, Miami Children’s Hospital | | | | | | | | |
Series A-1,
Mandatory Put 08/01/2011 @ 100 (NATL) | | | | | | | | |
| 4.125%, 08/01/2046 | | | 1,000 | | | | 1,024 | |
| South Miami Health Facilities Authority, Baptist Health South Florida Group | | | | | | | | |
| 5.000%, 08/15/2012 | | | 2,000 | | | | 2,135 | |
| Tallahassee Energy Systems (NATL) | | | | | | | | |
| 5.000%, 10/01/2012 | | | 1,000 | | | | 1,078 | |
| | | | | | | | | |
| | | | | | | | 22,228 | |
| | | | | | | | | |
Georgia – 2.1% |
| Revenue Bond – 1.0% |
| DeKalb County Hospital Authority, DeKalb Medical Center Project | | | | | | | | |
| 4.000%, 09/01/2015 | | | 3,200 | | | | 3,236 | |
| | | | | | | | | |
| General Obligation – 1.1% |
| Georgia, Series B | | | | | | | | |
| 5.000%, 07/01/2021 | | | 2,900 | | | | 3,327 | |
| | | | | | | | | |
| | | | | | | | 6,563 | |
| | | | | | | | | |
Hawaii – 0.5% |
| Revenue Bond – 0.5% |
| Hawaii Department of Budget & Finance, Special Purpose, Series C1 | | | | | | | | |
| 7.500%, 11/15/2015 | | | 1,500 | | | | 1,532 | |
| | | | | | | | | |
Illinois – 2.8% |
| Revenue Bonds – 2.8% |
| Illinois Finance Authority, Art Institute of Chicago | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 03/01/2015 | | | 4,000 | | | | 4,452 | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | | | | | | | |
5.100%, 05/15/2011 ¥ | | | 1,000 | | | | 398 | |
| Illinois Finance Authority, Illinois Institute of Technology | | | | | | | | |
| 6.250%, 02/01/2019 | | | 500 | | | | 534 | |
| Illinois Finance Authority, Landing at Plymouth Place Project, Series A | | | | | | | | |
| 5.000%, 05/15/2011 | | | 500 | | | | 505 | |
| Illinois Finance Authority, Rush University Medical Center, Series A | | | | | | | | |
| 5.000%, 11/01/2013 | | | 1,630 | | | | 1,748 | |
| 5.000%, 11/01/2014 | | | 1,105 | | | | 1,191 | |
| | | | | | | | | |
| | | | | | | | 8,828 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 81
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Indiana – 1.3% |
| Revenue Bonds – 1.3% |
| Anderson Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2012 | | $ | 990 | | | $ | 1,011 | |
| Crown Point, Temps-Wittenberg Village Project | | | | | | | | |
| Series C-2 | | | | | | | | |
| 6.500%, 11/15/2013 | | | 2,000 | | | | 2,001 | |
| Indiana Health & Educational Facilities, Financing Authority, Baptist Homes of Indiana | | | | | | | | |
| 5.000%, 11/15/2013 | | | 1,000 | | | | 1,052 | |
| | | | | | | | | |
| | | | | | | | 4,064 | |
| | | | | | | | | |
Iowa – 2.4% |
| Revenue Bonds – 2.4% |
| Iowa Finance Authority, Genesis Health Systems | | | | | | | | |
| 5.000%, 07/01/2016 | | | 1,150 | | | | 1,247 | |
| 5.000%, 07/01/2020 | | | 2,285 | | | | 2,403 | |
| Iowa Higher Education, Private College Facility, Grinnell Escrowed to Maturity | | | | | | | | |
| 2.100%, 12/01/2011 § | | | 4,000 | | | | 4,085 | |
| | | | | | | | | |
| | | | | | | | 7,735 | |
| | | | | | | | | |
Kansas – 1.9% |
| Revenue Bonds – 1.9% |
| Olathe Health Facilities, Olathe Medical Center | | | | | | | | |
| 4.000%, 09/01/2012 | | | 1,150 | | | | 1,203 | |
Series A,
Mandatory Put 03/01/2013 @ 100 | | | | | | | | |
| 4.125%, 09/01/2037 | | | 1,350 | | | | 1,393 | |
| Wichita Hospital Improvement | | | | | | | | |
| Series III A | | | | | | | | |
| 5.000%, 11/15/2014 | | | 1,000 | | | | 1,105 | |
| 5.000%, 11/15/2016 | | | 1,000 | | | | 1,096 | |
| Wichita Hospital, Christi Health System | | | | | | | | |
| 5.000%, 11/15/2015 | | | 1,000 | | | | 1,110 | |
| | | | | | | | | |
| | | | | | | | 5,907 | |
| | | | | | | | | |
Louisiana – 0.7% |
| Revenue Bond – 0.7% |
| Tangipahoa Parish Hospital Service District #1, North Oaks Medical Center Project, Series A | | | | | | | | |
| 5.000%, 02/01/2011 | | | 2,035 | | | | 2,059 | |
| | | | | | | | | |
Massachusetts – 2.1% |
| Revenue Bonds – 2.1% |
| Massachusetts Development Finance Agency, Senior Living Facility, Groves-Lincoln, Series B2 | | | | | | | | |
| 6.250%, 06/01/2014 | | | 2,000 | | | | 2,001 | |
| Massachusetts Educational Financing Authority, Issue I, Series B (AMT) | | | | | | | | |
| 4.500%, 01/01/2016 | | | 2,455 | | | | 2,518 | |
| Massachusetts Health & Educational Facilities Authority, Northeastern University | | | | | | | | |
Series T-1,
Mandatory Put 02/16/2012 @ 100 | | | | | | | | |
| 4.125%, 10/01/2037 | | | 2,000 | | | | 2,067 | |
| | | | | | | | | |
| | | | | | | | 6,586 | |
| | | | | | | | | |
Michigan – 1.1% |
| Revenue Bond – 0.7% |
| Michigan Hospital Finance Authority, Ascension Health Senior Credit Group, Series B | | | | | | | | |
| 5.000%, 11/15/2016 | | | 2,030 | | | | 2,244 | |
| | | | | | | | | |
| General Obligation – 0.4% |
| Warren School District, School Improvement (FGIC) (NATL) | | | | | | | | |
| 5.000%, 05/01/2012 | | | 1,200 | | | | 1,280 | |
| | | | | | | | | |
| | | | | | | | 3,524 | |
| | | | | | | | | |
Minnesota – 6.8% |
| Revenue Bonds – 2.7% |
| Minneapolis & St. Paul Housing & Redevelopment Authority, Healthpartners Obligation Group Project | | | | | | | | |
| 5.250%, 12/01/2012 | | | 1,000 | | | | 1,065 | |
| Minneapolis & St. Paul Metropolitan Apartments | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.000%, 01/01/2015 | | | 2,500 | | | | 2,721 | |
| Minnesota Agricultural & Economic Development Board, Health Care Facilities, Essentia | | | | | | | | |
| Series C-1 (AGC) | | | | | | | | |
| 5.000%, 02/15/2015 | | | 1,335 | | | | 1,471 | |
| Minnesota Higher Education Facilities Authority, Bethel University, Series 6-R | | | | | | | | |
| 5.500%, 05/01/2016 | | | 910 | | | | 946 | |
| 5.500%, 05/01/2017 | | | 1,065 | | | | 1,107 | |
| St. Cloud Health Care Facilities, CentraCare Health System, Series A | | | | | | | | |
| 5.000%, 05/01/2015 | | | 1,000 | | | | 1,098 | |
| | | | | | | | | |
| | | | | | | | 8,408 | |
| | | | | | | | | |
| General Obligations – 4.1% |
| Bemidji Temporary Sales Tax | | | | | | | | |
| 4.500%, 02/01/2012 | | | 3,000 | | | | 3,066 | |
| Edina Independent School District #273 | | | | | | | | |
| Series A (MSDCEP) | | | | | | | | |
| 1.500%, 02/14/2011 | | | 10,000 | | | | 10,067 | |
| | | | | | | | | |
| | | | | | | | 13,133 | |
| | | | | | | | | |
| | | | | | | | 21,541 | |
| | | | | | | | | |
Mississippi – 1.1% |
| Revenue Bond – 1.1% |
| Mississippi, Series B-1 (AGC) | | | | | | | | |
| 4.000%, 07/01/2015 | | | 3,235 | | | | 3,435 | |
| | | | | | | | | |
Missouri – 1.7% |
| Revenue Bonds – 1.7% |
| Kirkwood Industrial Development Authority, Aberdeen Heights, Series C-3 | | | | | | | | |
| 6.500%, 05/15/2015 | | | 3,000 | | | | 3,007 | |
| Missouri Finance Board, Infrastructure Facilities, Water Systems, Series E | | | | | | | | |
| 4.000%, 11/01/2016 | | | 2,020 | | | | 2,064 | |
| Osage Beach Tax Increment, Prewitt’s Point Project | | | | | | | | |
| 4.625%, 05/01/2011 | | | 465 | | | | 464 | |
| | | | | | | | | |
| | | | | | | | 5,535 | |
| | | | | | | | | |
Montana – 0.9% |
| Revenue Bond – 0.9% |
| Montana Finance Authority, Series B | | | | | | | | |
| 5.000%, 01/01/2019 | | | 2,740 | | | | 2,952 | |
| | | | | | | | | |
Nebraska – 0.9% |
| Revenue Bond – 0.9% |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 3,000 | | | | 2,985 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
82 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Short Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
New Hampshire – 0.8% |
| Revenue Bond – 0.8% |
| New Hampshire Health & Education Facilities Authority, Concord Hospital, Series D2 | | | | | | | | |
| 5.000%, 05/01/2011 | | $ | 2,585 | | | $ | 2,646 | |
| | | | | | | | | |
New Mexico – 0.7% |
| Revenue Bond – 0.7% |
| New Mexico Educational Assistance Foundation | | | | | | | | |
| Series C (AMT) | | | | | | | | |
| 3.900%, 09/01/2014 | | | 2,000 | | | | 2,092 | |
| | | | | | | | | |
New York – 1.1% |
| General Obligation – 1.1% |
| New York, Series A | | | | | | | | |
| 5.000%, 08/01/2011 | | | 3,435 | | | | 3,605 | |
| | | | | | | | | |
North Carolina – 0.3% |
| Revenue Bond – 0.3% |
| North Carolina Municipal Power Agency, #1 Catawba Electric, Series C | | | | | | | | |
| 5.000%, 01/01/2021 | | | 1,000 | | | | 1,098 | |
| | | | | | | | | |
Ohio – 0.3% |
| Revenue Bond – 0.3% |
Ohio Air Quality Development Authority, Ohio Power Company, Series A,
Mandatory Put 06/02/2014 @ 100 | | | | | | | | |
| 3.250%, 06/01/2041 | | | 1,000 | | | | 1,001 | |
| | | | | | | | | |
Oklahoma – 1.1% |
| Revenue Bonds – 1.1% |
| Cleveland County Public Facilities Authority, Norman Public Schools Project | | | | | | | | |
| 3.500%, 06/01/2012 | | | 2,000 | | | | 2,073 | |
| Tulsa County Individual Educational Facilities Authority, Jenks Public School | | | | | | | | |
| 5.000%, 09/01/2014 | | | 1,125 | | | | 1,282 | |
| | | | | | | | | |
| | | | | | | | 3,355 | |
| | | | | | | | | |
Oregon – 1.0% |
| Revenue Bond – 1.0% |
| Medford Hospital Facilities Authority, Asante Health System (AGM) | | | | | | | | |
| 5.000%, 08/15/2015 | | | 2,840 | | | | 3,173 | |
| | | | | | | | | |
South Carolina – 2.1% |
| Revenue Bonds – 1.0% |
| Georgetown County Pollution Control Facilities, International Paper Company Project, Series A | | | | | | | | |
| 5.125%, 02/01/2012 | | | 1,500 | | | | 1,560 | |
| Richland County Environmental Improvement | | | | | | | | |
| Series A | | | | | | | | |
| 4.600%, 09/01/2012 | | | 1,000 | | | | 1,054 | |
| South Carolina Jobs-Economic Development Authority, Palmetto Health | | | | | | | | |
| 5.000%, 08/01/2015 | | | 500 | | | | 532 | |
| | | | | | | | | |
| | | | | | | | 3,146 | |
| | | | | | | | | |
| Certificate of Participation – 1.1% |
| Scago Public Facilities Corporation, Lancaster County Project (AGC) | | | | | | | | |
| 3.500%, 12/01/2011 | | | 3,315 | | | | 3,423 | |
| | | | | | | | | |
| | | | | | | | 6,569 | |
| | | | | | | | | |
South Dakota – 0.4% |
| Revenue Bond – 0.4% |
| South Dakota Health & Educational Facilities Authority, Sanford Health | | | | | | | | |
| 4.500%, 11/01/2015 | | | 1,305 | | | | 1,402 | |
| | | | | | | | | |
Tennessee – 1.4% |
| Revenue Bonds – 1.4% |
| Memphis-Shelby County Airport Authority | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.000%, 07/01/2016 | | | 1,000 | | | | 1,071 | |
| Memphis-Shelby County Sports Authority, Memphis Arena Project, Series B | | | | | | | | |
| 5.500%, 11/01/2020 | | | 1,270 | | | | 1,409 | |
| Metropolitan Nashville Airport Authority | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2016 | | | 1,800 | | | | 1,993 | |
| | | | | | | | | |
| | | | | | | | 4,473 | |
| | | | | | | | | |
Texas – 6.2% |
| Revenue Bonds – 4.8% |
| Dallas Fort Worth International Airport | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 11/01/2021 | | | 1,000 | | | | 1,066 | |
| Lower Colorado River Authority | | | | | | | | |
| 5.000%, 05/15/2012 (AMBAC) | | | 2,615 | | | | 2,812 | |
| Escrowed to Maturity (AMBAC) | | | | | | | | |
| 5.000%, 05/15/2012 § | | | 70 | | | | 75 | |
| Tarrant County Cultural Education Facilities, CC Young Memorial Home, Series B-2 | | | | | | | | |
| 6.500%, 02/15/2014 | | | 2,000 | | | | 2,004 | |
| Tarrant County Cultural Education Facilities, Finance Corporation, Retirement Facility, Hendrick Medical Center, Series A (AGC) | | | | | | | | |
| 4.000%, 09/01/2015 | | | 1,425 | | | | 1,489 | |
| 4.000%, 09/01/2016 | | | 1,070 | | | | 1,104 | |
| 4.375%, 09/01/2018 | | | 1,355 | | | | 1,394 | |
| Tarrant County Cultural Education Facilities, Finance Corporation, Retirement Facility, Mirador Project, Series B-2 | | | | | | | | |
| 6.250%, 11/15/2014 | | | 2,000 | | | | 2,003 | |
| Tarrant County Cultural Education Facilities, Finance Corporation, Retirement Facility, Stayton at Museum Way, Series C-2 | | | | | | | | |
| 6.500%, 11/15/2014 | | | 2,000 | | | | 1,986 | |
| Tyler Health Facilities Development Corporation, East Texas Medical Center, Series A | | | | | | | | |
| 5.000%, 11/01/2010 | | | 1,500 | | | | 1,513 | |
| | | | | | | | | |
| | | | | | | | 15,446 | |
| | | | | | | | | |
| General Obligation – 1.4% |
| Texas Public Finance Authority | | | | | | | | |
| 5.000%, 10/01/2010 | | | 4,275 | | | | 4,326 | |
| | | | | | | | | |
| | | | | | | | 19,772 | |
| | | | | | | | | |
Virgin Islands – 0.3% |
| Revenue Bond – 0.3% |
| Virgin Islands Public Finance Authority, Series B | | | | | | | | |
| 5.000%, 10/01/2019 | | | 1,000 | | | | 1,068 | |
| | | | | | | | | |
Virginia – 4.4% |
| Revenue Bonds – 4.4% |
| Virginia Housing Development Authority, Commonwealth Mortgage, Series D1 (AMT) | | | | | | | | |
| 4.300%, 01/01/2014 | | | 7,000 | | | | 7,195 | |
| Virginia Public Building Authority, Series A | | | | | | | | |
| 5.000%, 08/01/2014 | | | 6,000 | | | | 6,674 | |
| | | | | | | | | |
| | | | | | | | 13,869 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 83
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Tax Free Fund (concluded) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
Washington – 0.8% |
| Revenue Bonds – 0.8% |
| Washington Health Care Facilities Authority, Central Washington Health Services | | | | | | | | |
| 5.000%, 07/01/2013 | | $ | 1,225 | | | $ | 1,290 | |
| 5.000%, 07/01/2014 | | | 1,150 | | | | 1,217 | |
| | | | | | | | | |
| | | | | | | | 2,507 | |
| | | | | | | | | |
Wisconsin – 0.7% |
| Revenue Bonds – 0.7% |
| Wisconsin Health & Educational Facilities Authority, Aurora Health Care, Series A | | | | | | | | |
| 5.000%, 04/15/2016 | | | 1,000 | | | | 1,060 | |
| Wisconsin Health & Educational Facilities Authority, St. John’s Communities | | | | | | | | |
| 5.400%, 09/15/2014 | | | 1,000 | | | | 997 | |
| | | | | | | | | |
| | | | | | | | 2,057 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $203,767) | | | | | | | 208,818 | |
| | | | | | | | | |
Short-Term Investments – 33.8% |
Money Market Fund – 6.9% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | 22,017,197 | | | | 22,017 | |
| | | | | | | | | |
Variable Rate Demand Notes v – 26.9% |
| California Financial Authority, Goodwill Industries – Orange County (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.350%, 10/01/2033 | | $ | 5,545 | | | | 5,545 | |
| Cleveland-Cuyahoga County Port Authority, Carnegie/89th Garage Project (LOC: JP Morgan Chase Bank) | | | | | | | | |
| 0.270%, 01/01/2037 | | | 9,800 | | | | 9,800 | |
| Cohasset Power & Light Company Project | | | | | | | | |
| Series A (LOC: LaSalle Bank) | | | | | | | | |
| 0.300%, 06/01/2020 | | | 5,420 | | | | 5,420 | |
| Colorado Educational & Cultural Facilities Authority, Denver Seminary Project (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.400%, 07/01/2034 | | | 2,575 | | | | 2,575 | |
| Glendale Individual Development Authority, Senior Living Facilities, Friendship Retirement Corporation (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.400%, 01/01/2027 | | | 5,500 | | | | 5,500 | |
| Indiana Health Facilities, Financing Authority, Anthony Wayne Rehabilitation Center (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.400%, 02/01/2031 | | | 2,345 | | | | 2,345 | |
| Lake Oswego Redevelopment Agency Tax Increment, Series A (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.400%, 06/01/2020 | | | 2,265 | | | | 2,265 | |
| Massachusetts Health & Educational Facilities Authority, Dana Farber Cancer Institute | | | | | | | | |
| Series L1 (LOC: JP Morgan) | | | | | | | | |
| 0.240%, 12/01/2046 | | | 3,000 | | | | 3,000 | |
| Metropolitan Government Nashville & Davidson Counties, Vanderbilt University, Series A-1 | | | | | | | | |
| 0.220%, 10/01/2044 | | | 12,000 | | | | 12,000 | |
| Milwaukee Redevelopment Authority, Yankee Hill Apartments (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.300%, 09/01/2025 | | | 1,100 | | | | 1,100 | |
| Missouri Health & Educational Facilities Authority, Barnes Hospital Project (LOC: JP Morgan Chase Bank) | | | | | | | | |
| 0.220%, 12/01/2015 | | | 7,485 | | | | 7,485 | |
| New York Dormitory Authority, University of Rochester, Series C (LOC: JP Morgan) | | | | | | | | |
| 0.220%, 07/01/2033 | | | 8,000 | | | | 8,000 | |
| South Fulton Municipal Regional Water & Sewer Authority (LOC: Bank of America) | | | | | | | | |
| 0.300%, 01/01/2033 | | | 7,000 | | | | 7,000 | |
| Washington Health Care Facilities Authority, Southwest Washington Medical Center | | | | | | | | |
| Series B (LOC: Bank of America) | | | | | | | | |
| 0.320%, 09/01/2034 | | | 6,875 | | | | 6,875 | |
| Wisconsin Health & Educational Facilities Authority, Gundersen Lutheran | | | | | | | | |
| Series A (LOC: Wells Fargo Bank) | | | | | | | | |
| 0.300%, 05/01/2020 | | | 6,545 | | | | 6,545 | |
| | | | | | | | | |
| | | | | | | | 85,455 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $107,472) | | | | | | | 107,472 | |
| | | | | | | | | |
Total Investments 5 – 99.5% | | | | | | | | |
(Cost $311,239) | | | | | | | 316,290 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 0.5% | | | | | | | 1,661 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 317,951 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in 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. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $398 or 0.1% 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 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, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $311,425. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 5,703 | |
| Gross unrealized depreciation | | | (838 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 4,865 | |
| | | | | |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to AMT was $15,597 which represents 4.9% of total net assets. |
| |
| FGIC – | Financial Guarantee Insurance Corporation |
| |
| MSDCEP – | Minnesota School District Credit Enhancement Program |
| |
| NATL – | National Public Finance Guarantee Corporation |
The accompanying notes are an integral part of the financial statements.
84 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Tax Free Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Municipal Bonds – 92.0% |
| Alabama – 0.1% |
| Revenue Bond – 0.1% |
| Camden Industrial Development Board, Weyerhaeuser Company Project | | | | | | | | |
Series B, Pre-refunded 12/01/2013 @ 100 (AMT) | | | | | | | | |
6.375%, 12/01/2024 ◊ | | $ | 350 | | | $ | 412 | |
| | | | | | | | | |
Alaska – 0.2% |
| Revenue Bond – 0.2% |
| Alaska Energy Authority, Bradley Lake, Third Series (AGM) | | | | | | | | |
| 6.000%, 07/01/2010 | | | 1,000 | | | | 1,000 | |
| | | | | | | | | |
Arizona – 7.8% |
| Revenue Bonds – 5.5% |
| Arizona Health Facilities Authority, Banner Health | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 01/01/2021 | | | 280 | | | | 289 | |
| Series D | | | | | | | | |
| 5.375%, 01/01/2032 | | | 150 | | | | 152 | |
| Arizona Health Facilities Authority, Blood Systems | | | | | | | | |
| 4.750%, 04/01/2025 | | | 300 | | | | 298 | |
Arizona Health Facilities Authority, The Terraces Project, Series A, Pre-refunded 11/15/2013 @ 101 | | | | | | | | |
7.500%, 11/15/2023 ◊ | | | 3,200 | | | | 3,757 | |
| Arizona State University Nanotechnology Project | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.000%, 03/01/2034 | | | 200 | | | | 207 | |
| Cottonwood Water, Senior Lien (SGI) | | | | | | | | |
| 5.000%, 07/01/2017 | | | 250 | | | | 264 | |
| Gilbert Public Facilities Municipal Property | | | | | | | | |
| 5.500%, 07/01/2027 | | | 500 | | | | 540 | |
| Gilbert Water Resources Municipal Property, Wastewater System Development & Utility | | | | | | | | |
| 5.000%, 04/01/2017 | | | 95 | | | | 95 | |
| Glendale Industrial Development Authority | | | | | | | | |
| 4.625%, 12/01/2027 | | | 200 | | | | 180 | |
| Glendale Industrial Development Authority, John C. Lincoln Health Network | | | | | | | | |
| 5.000%, 12/01/2032 | | | 100 | | | | 91 | |
| Glendale Industrial Development Authority, Midwestern University | | | | | | | | |
| 5.000%, 05/15/2031 | | | 500 | | | | 493 | |
Series A, Pre-refunded 05/15/2011 @ 101 | | | | | | | | |
5.750%, 05/15/2021 ◊ | | | 250 | | | | 264 | |
| Greater Arizona Development Authority, Infrastructure, Series B | | | | | | | | |
| 5.250%, 08/01/2026 | | | 750 | | | | 775 | |
| Greater Arizona Development Authority, Infrastructure, Pinal County Road Project | | | | | | | | |
| Series 1 (NATL) | | | | | | | | |
| 4.500%, 08/01/2025 | | | 750 | | | | 745 | |
| Marana Municipal Property, Series A | | | | | | | | |
| 5.000%, 07/01/2028 | | | 250 | | | | 263 | |
Maricopa County Hospital, Sun Health Corporation Pre-refunded 04/01/2024 @ 100 | | | | | | | | |
5.000%, 04/01/2025 ◊ | | | 200 | | | | 234 | |
| Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A | | | | | | | | |
| 5.375%, 07/01/2023 | | | 500 | | | | 515 | |
| 5.250%, 07/01/2032 | | | 3,600 | | | | 3,621 | |
| Maricopa County Industrial Development Authority, Senior Living Healthcare, Immanuel Care, Series A (GNMA) | | | | | | | | |
| 4.850%, 08/20/2026 | | | 750 | | | | 760 | |
| 5.000%, 08/20/2035 | | | 500 | | | | 501 | |
| Peoria Improvement District #0601 | | | | | | | | |
| 4.250%, 01/01/2022 | | | 465 | | | | 476 | |
| Peoria Municipal Development Authority | | | | | | | | |
| 5.000%, 07/01/2015 | | | 310 | | | | 359 | |
| Pinal County Industrial Development Authority, Correctional Facilities Contract, Florence West Prison Project, Series A (ACA) | | | | | | | | |
| 5.000%, 10/01/2016 | | | 250 | | | | 248 | |
| Queen Creek Improvement District #001 | | | | | | | | |
| 5.000%, 01/01/2020 | | | 300 | | | | 301 | |
| Scottsdale Industrial Development Authority, Scottsdale Healthcare, Series A | | | | | | | | |
| 5.000%, 09/01/2022 | | | 1,000 | | | | 1,009 | |
| 5.250%, 09/01/2030 | | | 2,350 | | | | 2,290 | |
| Scottsdale Municipal Property Corporation, Excise Tax, Series C, Convertible CABs (AMBAC), | | | | | | | | |
0.000% through 07/01/2013, thereafter
4.550%, 07/01/2021 ◗ | | | 500 | | | | 461 | |
| Scottsdale Municipal Property Corporation, Excise Tax, Water and Sewer Development Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2021 | | | 4,300 | | | | 4,838 | |
| Tempe Industrial Development Authority, Friendship Village Project, Series A | | | | | | | | |
| 5.375%, 12/01/2013 | | | 1,178 | | | | 1,132 | |
| University Medical Center Corporation | | | | | | | | |
| 5.000%, 07/01/2016 | | | 250 | | | | 262 | |
| 5.000%, 07/01/2024 | | | 450 | | | | 442 | |
| Yavapai County Industrial Development Authority, Waste Management Incorporated Project | | | | | | | | |
| Series A1 (AMT) (GTY) | | | | | | | | |
| 4.900%, 03/01/2028 | | | 400 | | | | 383 | |
| Yavapai County Industrial Development Authority, Yavapai Regional Medical Center | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 08/01/2033 | | | 100 | | | | 101 | |
| Series A (RAAI) | | | | | | | | |
| 5.250%, 08/01/2021 | | | 375 | | | | 375 | |
| Yuma Improvement District #68 | | | | | | | | |
| 4.700%, 01/01/2021 | | | 365 | | | | 353 | |
| | | | | | | | | |
| | | | | | | | 27,074 | |
| | | | | | | | | |
| General Obligations – 2.1% |
| Chandler | | | | | | | | |
| 4.375%, 07/01/2028 | | | 500 | | | | 509 | |
| Gila County Unified School District #10, Payson School Improvement Project of 2006 | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.250%, 07/01/2022 | | | 6,630 | | | | 7,201 | |
| Greenlee County School District #18, Morenci School Improvement | | | | | | | | |
| 5.000%, 07/01/2012 | | | 165 | | | | 174 | |
| Pima County Unified School District #1, Tucson Project of 2004, Series C (FGIC) (NATL) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 1,000 | | | | 1,037 | |
| Pinal County Unified School District #1, Florence School Improvement Project of 2006 | | | | | | | | |
| Series A (FGIC) (NATL) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 1,000 | | | | 1,040 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 85
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Tucson | | | | | | | | |
| 5.500%, 07/01/2018 | | $ | 250 | | | $ | 299 | |
| | | | | | | | | |
| | | | | | | | 10,260 | |
| | | | | | | | | |
| Certificates of Participation – 0.2% |
| Arizona School Facilities Board | | | | | | | | |
| 5.250%, 09/01/2023 | | | 500 | | | | 538 | |
| Northern Arizona University, Research Projects (AMBAC) | | | | | | | | |
| 5.000%, 09/01/2023 | | | 140 | | | | 141 | |
| Pinal County | | | | | | | | |
| 5.000%, 12/01/2014 | | | 400 | | | | 434 | |
| | | | | | | | | |
| | | | | | | | 1,113 | |
| | | | | | | | | |
| | | | | | | | 38,447 | |
| | | | | | | | | |
California – 5.8% |
| Revenue Bonds – 4.3% |
| California Department of Water Resources, Central Valley Project, Series AE | | | | | | | | |
| 5.000%, 12/01/2021 | | | 2,000 | | | | 2,253 | |
| California Pollution Control Financing Authority, Solid Waste Disposal, Waste Management Incorporated Project | | | | | | | | |
| Series B (AMT) (GTY) | | | | | | | | |
| 5.000%, 07/01/2027 | | | 2,500 | | | | 2,489 | |
| Series C (AMT) (GTY) | | | | | | | | |
| 5.125%, 11/01/2023 | | | 5,000 | | | | 4,999 | |
| California Statewide Communities Development Authority, St. Joseph | | | | | | | | |
| Series B (FGIC) | | | | | | | | |
| 5.450%, 07/01/2026 | | | 1,050 | | | | 1,082 | |
| Series C (FGIC) | | | | | | | | |
| 5.450%, 07/01/2026 | | | 1,050 | | | | 1,083 | |
| Chula Vista Industrial Development, San Diego Gas & Electric, Series A (AMT) | | | | | | | | |
| 4.900%, 03/01/2023 | | | 2,500 | | | | 2,514 | |
| Loma Linda University Medical Center, Series A | | | | | | | | |
| 8.250%, 12/01/2038 | | | 1,500 | | | | 1,678 | |
| Southern California Public Power Authority, Transmission Project, Series A | | | | | | | | |
| 5.000%, 07/01/2020 | | | 4,000 | | | | 4,427 | |
| Ventura County Area Housing Authority, Mira Vista Senior Apartments | | | | | | | | |
| Series A (AMBAC) (AMT) | | | | | | | | |
| 5.000%, 12/01/2022 | | | 1,000 | | | | 855 | |
| | | | | | | | | |
| | | | | | | | 21,380 | |
| | | | | | | | | |
| General Obligations – 1.5% |
Poway Unified School District, Election of 2008, District 2007-1-A Zero Coupon Bond | | | | | | | | |
5.462%, 08/01/2023 ¤ | | | 3,775 | | | | 1,865 | |
| Victor Valley Joint Union High School District, Election of 2008 | | | | | | | | |
Series A, Convertible CABs (AGC), 0.000% through 08/01/2019, thereafter 5.750%, 08/01/2031 ◗ | | | 5,000 | | | | 2,895 | |
| Westminster School District | | | | | | | | |
| Series A1, Zero Coupon Bond (AGC) | | | | | | | | |
5.870%, 08/01/2026 ¤ | | | 2,485 | | | | 980 | |
6.040%, 08/01/2028 ¤ | | | 1,405 | | | | 479 | |
6.110%, 08/01/2029 ¤ | | | 2,920 | | | | 926 | |
| | | | | | | | | |
| | | | | | | | 7,145 | |
| | | | | | | | | |
| | | | | | | | 28,525 | |
| | | | | | | | | |
Colorado – 3.8% |
| Revenue Bonds – 3.6% |
Colorado Educational & Cultural Facilities Authority, Classical Academy Charter School Pre-refunded 12/01/2011 @ 100 | | | | | | | | |
7.250%, 12/01/2021 ◊ | | | 1,500 | | | | 1,644 | |
| Colorado Health Facilities Authority, Covenant Retirement Communities, Series B | | | | | | | | |
| 6.125%, 12/01/2033 | | | 1,150 | | | | 1,119 | |
| Colorado Health Facilities Authority, Evangelical Lutheran | | | | | | | | |
| 5.900%, 10/01/2027 | | | 2,500 | | | | 2,521 | |
| 5.000%, 06/01/2029 | | | 2,000 | | | | 1,908 | |
| Colorado Health Facilities Authority, Sisters of Charity of Leavenworth, Series B | | | | | | | | |
| 5.250%, 01/01/2025 | | | 5,000 | | | | 5,232 | |
| Colorado Housing & Finance Authority, Solid Waste Disposal, Waste Management Incorporated Project (AMT) | | | | | | | | |
| 5.700%, 07/01/2018 | | | 1,590 | | | | 1,676 | |
| Denver City & County Airport System, Series A | | | | | | | | |
| 5.000%, 11/15/2021 | | | 3,500 | | | | 3,843 | |
| | | | | | | | | |
| | | | | | | | 17,943 | |
| | | | | | | | | |
| General Obligation – 0.2% |
| Antelope Water System General Improvement District | | | | | | | | |
| 5.125%, 12/01/2035 | | | 1,000 | | | | 896 | |
| | | | | | | | | |
| | | | | | | | 18,839 | |
| | | | | | | | | |
Delaware – 1.2% |
| Revenue Bond – 1.2% |
| Delaware Transportation Authority, Transportation System | | | | | | | | |
| 5.000%, 07/01/2019 | | | 5,000 | | | | 5,887 | |
| | | | | | | | | |
Florida – 3.2% |
| Revenue Bonds – 2.7% |
| Halifax Hospital Medical Center, Series A | | | | | | | | |
| 5.000%, 06/01/2038 | | | 375 | | | | 340 | |
| Palm Beach County Health Facilities Authority, Retirement Community, Acts Retirement Life | | | | | | | | |
| Series A | | | | | | | | |
| 4.500%, 11/15/2036 | | | 10,000 | | | | 7,925 | |
| Palm Beach County Health Facilities Authority, Waterford Project | | | | | | | | |
| 5.875%, 11/15/2037 | | | 5,700 | | | | 5,036 | |
| | | | | | | | | |
| | | | | | | | 13,301 | |
| | | | | | | | | |
| Certificate of Participation – 0.5% |
| Palm Beach County School Board (FGIC) (NATL) | | | | | | | | |
| 5.000%, 08/01/2018 | | | 2,415 | | | | 2,667 | |
| | | | | | | | | |
| | | | | | | | 15,968 | |
| | | | | | | | | |
Georgia – 2.2% |
| Revenue Bonds – 2.2% |
| DeKalb County Hospital Authority, DeKalb Medical Center Incorporated Project | | | | | | | | |
| 6.000%, 09/01/2030 | | | 4,000 | | | | 4,000 | |
Fulton County Development Authority, Maxon Atlantic Station, Series A,
Mandatory Put 03/01/2015 @ 100 (AMT) | | | | | | | | |
| 5.125%, 03/01/2026 | | | 2,300 | | | | 2,282 | |
| Fulton County Residential Care Facilities, Canterbury Court Project, Series A | | | | | | | | |
| 6.125%, 02/15/2026 | | | 1,500 | | | | 1,394 | |
| 6.125%, 02/15/2034 | | | 2,500 | | | | 2,241 | |
The accompanying notes are an integral part of the financial statements.
86 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Georgia Municipal Electric Authority Power | | | | | | | | |
| Series BB (IBC) (NATL) | | | | | | | | |
| 5.250%, 01/01/2025 | | $ | 1,000 | | | $ | 1,068 | |
| | | | | | | | | |
| | | | | | | | 10,985 | |
| | | | | | | | | |
Hawaii – 0.5% |
| Revenue Bonds – 0.5% |
| Hawaii Department of Budget & Finance, Special Purpose, 15 Craigside Project, Series A | | | | | | | | |
| 8.750%, 11/15/2029 | | | 1,000 | | | | 1,122 | |
| 9.000%, 11/15/2044 | | | 1,250 | | | | 1,396 | |
| | | | | | | | | |
| | | | | | | | 2,518 | |
| | | | | | | | | |
Idaho – 0.2% |
| Revenue Bond – 0.2% |
| Idaho Health Facilities Authority, Trinity Health Group, Series B | | | | | | | | |
| 6.250%, 12/01/2033 | | | 750 | | | | 821 | |
| | | | | | | | | |
Illinois – 6.1% |
| Revenue Bonds – 5.7% |
| Bolingbrook, Residential Mortgages Escrowed to Maturity (FGIC) (VEREX) | | | | | | | | |
| 7.500%, 08/01/2010 § | | | 510 | | | | 513 | |
| Illinois Finance Authority, Franciscan Communities, Series A | | | | | | | | |
| 5.500%, 05/15/2037 | | | 400 | | | | 277 | |
| Illinois Finance Authority, Illinois Institute of Technology | | | | | | | | |
| 7.125%, 02/01/2034 | | | 3,500 | | | | 3,837 | |
| Illinois Finance Authority, Landing at Plymouth Place Project, Series A | | | | | | | | |
| 6.000%, 05/15/2037 | | | 2,300 | | | | 1,876 | |
| Illinois Finance Authority, Roosevelt University | | | | | | | | |
| 6.250%, 04/01/2029 | | | 2,000 | | | | 2,080 | |
| 5.500%, 04/01/2037 | | | 2,800 | | | | 2,650 | |
| Illinois Finance Authority, Rush University Medical Center Obligated Group | | | | | | | | |
| Series A | | | | | | | | |
| 7.250%, 11/01/2030 | | | 3,680 | | | | 4,179 | |
| Series C | | | | | | | | |
| 6.625%, 11/01/2039 | | | 1,265 | | | | 1,362 | |
| Illinois Finance Authority, Silver Cross Hospital & Medical Centers | | | | | | | | |
| 5.500%, 08/15/2030 | | | 3,230 | | | | 3,007 | |
| Illinois Finance Authority, Three Crowns Park Plaza, Series A | | | | | | | | |
| 5.875%, 02/15/2026 | | | 100 | | | | 93 | |
| Illinois Health Facilities Authority, Covenant Retirement Communities | | | | | | | | |
| 5.875%, 12/01/2031 | | | 4,500 | | | | 4,211 | |
| Series A (RAAI) | | | | | | | | |
| 5.500%, 12/01/2022 | | | 4,000 | | | | 3,979 | |
| | | | | | | | | |
| | | | | | | | 28,064 | |
| | | | | | | | | |
| General Obligation – 0.4% |
| Chicago Illinois Board of Education, Series C | | | | | | | | |
| 5.000%, 12/01/2020 | | | 2,000 | | | | 2,175 | |
| | | | | | | | | |
| | | | | | | | 30,239 | |
| | | | | | | | | |
Indiana – 2.3% |
| Revenue Bonds – 2.3% |
| Anderson Economic Development, Anderson University Project | | | | | | | | |
| 5.000%, 10/01/2032 | | | 425 | | | | 377 | |
| Indiana Health & Educational Facilities Financing Authority, Community Foundation | | | | | | | | |
| 5.500%, 03/01/2037 | | | 2,830 | | | | 2,779 | |
| Indiana Health & Educational Facilities Financing Authority, Schneck Memorial Hospital Project | | | | | | | | |
| Series A | | | | | | | | |
| 5.250%, 02/15/2030 | | | 400 | | | | 377 | |
| Indiana Municipal Power Agency, Power Supply | | | | | | | | |
| Series B (NATL) | | | | | | | | |
| 6.000%, 01/01/2012 | | | 1,000 | | | | 1,073 | |
| Indiana Transportation Finance Authority | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 5.750%, 06/01/2012 | | | 2,000 | | | | 2,136 | |
| Indianapolis Airport Authority, Special Facilities, Federal Express Corporation Project (AMT) (GTY: Federal Express) | | | | | | | | |
| 5.100%, 01/15/2017 | | | 3,000 | | | | 3,135 | |
| Portage Economic Development, Ameriplex Project | | | | | | | | |
| 5.000%, 07/15/2023 | | | 1,000 | | | | 990 | |
| 5.000%, 01/15/2027 | | | 775 | | | | 744 | |
| | | | | | | | | |
| | | | | | | | 11,611 | |
| | | | | | | | | |
Iowa – 0.1% |
| Revenue Bond – 0.1% |
| Muscatine Electric, Escrowed to Maturity | | | | | | | | |
| 6.700%, 01/01/2013 § | | | 410 | | | | 443 | |
| | | | | | | | | |
Kansas – 1.5% |
| Revenue Bonds – 1.5% |
| Kansas Department of Transportation, Series B2 | | | | | | | | |
| 5.000%, 09/01/2022 | | | 500 | | | | 567 | |
| Kansas Development Finance Authority, Adventist Health System | | | | | | | | |
| 5.500%, 11/15/2029 | | | 4,500 | | | | 4,819 | |
| Olathe Senior Living Facility, Catholic Care Campus, Series A | | | | | | | | |
| 6.000%, 11/15/2038 | | | 2,000 | | | | 1,775 | |
| | | | | | | | | |
| | | | | | | | 7,161 | |
| | | | | | | | | |
Louisiana – 0.7% |
| Revenue Bonds – 0.7% |
| Jefferson Parish, Home Mortgage Authority Escrowed to Maturity (FGIC) (FHA) (VA) | | | | | | | | |
| 7.100%, 08/01/2011 § | | | 1,000 | | | | 1,068 | |
| Rapides Financial Authority, Cleco Power LLC Project (AMBAC) (AMT) | | | | | | | | |
| 4.700%, 11/01/2036 | | | 3,000 | | | | 2,597 | |
| | | | | | | | | |
| | | | | | | | 3,665 | |
| | | | | | | | | |
Maryland – 2.1% |
| General Obligation – 2.1% |
| Frederick County, Series C | | | | | | | | |
| 5.000%, 12/01/2020 | | | 8,685 | | | | 10,354 | |
| | | | | | | | | |
Massachusetts – 1.9% |
| Revenue Bonds – 1.9% |
| Massachusetts Development Finance Agency Senior Living Facility, Groves-Lincoln | | | | | | | | |
| Series A | | | | | | | | |
| 7.875%, 06/01/2044 | | | 1,000 | | | | 1,032 | |
| Series B2 | | | | | | | | |
| 6.250%, 06/01/2014 | | | 1,000 | | | | 1,001 | |
| Massachusetts Development Finance Agency, Health Care Facility, AdventCare Project | | | | | | | | |
| Series A | | | | | | | | |
| 6.750%, 10/15/2037 | | | 2,850 | | | | 2,502 | |
| Massachusetts Educational Financing Authority, Issue I, Series B (AMT) | | | | | | | | |
| 5.500%, 01/01/2023 | | | 1,000 | | | | 1,017 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 87
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Massachusetts Health & Educational Facilities Authority, Suffolk University, Series A | | | | | | | | |
| 5.750%, 07/01/2039 | | $ | 3,000 | | | $ | 3,051 | |
| Massachusetts Health & Educational Facilities Authority, UMass Memorial Issue, Series D | | | | | | | | |
| 5.000%, 07/01/2033 | | | 1,000 | | | | 928 | |
| | | | | | | | | |
| | | | | | | | 9,531 | |
| | | | | | | | | |
Michigan – 2.5% |
| Revenue Bonds – 2.5% |
| Kalamazoo Hospital Finance Authority, Bronson Methodist Hospital, Series A (AGM) | | | | | | | | |
| 5.000%, 05/15/2026 | | | 7,665 | | | | 7,810 | |
| Michigan Hospital Finance Authority, McLaren Health Care, Series A | | | | | | | | |
| 5.250%, 05/15/2018 | | | 1,000 | | | | 1,064 | |
| Royal Oak Hospital Finance Authority, William Beaumont Hospital | | | | | | | | |
| 8.000%, 09/01/2029 | | | 3,000 | | | | 3,566 | |
| | | | | | | | | |
| | | | | | | | 12,440 | |
| | | | | | | | | |
Minnesota – 6.0% |
| Revenue Bonds – 6.0% |
| Chippewa County, Montevideo Hospital Project | | | | | | | | |
| 5.500%, 03/01/2037 | | | 3,000 | | | | 2,859 | |
| Columbia Heights Multifamily & Health Care Facilities, Crest View Corporation Projects | | | | | | | | |
| Series A | | | | | | | | |
| 5.700%, 07/01/2042 | | | 2,790 | | | | 2,461 | |
| Cuyuna Range Hospital District | | | | | | | | |
| 5.200%, 06/01/2025 | | | 1,000 | | | | 964 | |
| 5.000%, 06/01/2029 | | | 1,500 | | | | 1,353 | |
| Minneapolis Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.625%, 11/15/2028 | | | 3,000 | | | | 3,347 | |
| Minnesota Agricultural & Economic Development Board, Health Care System, Fairview Health Services, Series A | | | | | | | | |
| 6.375%, 11/15/2029 | | | 95 | | | | 96 | |
| Monticello-Big Lake Community Hospital District, Health Care Facilities, Series C | | | | | | | | |
| 6.200%, 12/01/2022 | | | 2,995 | | | | 2,875 | |
| Shakopee Health Care Facilities, St. Francis Regional Medical Center | | | | | | | | |
| 5.250%, 09/01/2034 | | | 1,000 | | | | 933 | |
| St. Paul Housing & Redevelopment Authority, Allina Health System, Series A (NATL) | | | | | | | | |
| 5.000%, 11/15/2019 | | | 4,500 | | | | 4,813 | |
| St. Paul Housing & Redevelopment Authority, Health Care Facilities, HealthPartners Obligated Group Project | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,500 | | | | 1,461 | |
| 5.250%, 05/15/2036 | | | 3,900 | | | | 3,619 | |
| St. Paul Housing & Redevelopment Authority, HealthEast Project | | | | | | | | |
| 6.000%, 11/15/2025 | | | 2,000 | | | | 1,988 | |
| 6.000%, 11/15/2030 | | | 2,000 | | | | 1,929 | |
| 6.000%, 11/15/2035 | | | 1,000 | | | | 931 | |
| | | | | | | | | |
| | | | | | | | 29,629 | |
| | | | | | | | | |
Missouri – 2.2% |
| Revenue Bonds – 2.2% |
| Bi-State Development Agency, Missouri-Illinois Metropolitan District, St. Clair County Metrolink Project (AGM) | | | | | | | | |
| 5.250%, 07/01/2027 | | | 3,185 | | | | 3,459 | |
| St. Louis Industrial Development Authority, Sewer & Solid Waste Disposal Facilities, Anheuser-Busch Project (AMT) | | | | | | | | |
| 4.875%, 03/01/2032 | | | 8,000 | | | | 7,496 | |
| | | | | | | | | |
| | | | | | | | 10,955 | |
| | | | | | | | | |
Montana – 0.9% |
| Revenue Bonds – 0.9% |
| Forsyth Pollution Control, Northwestern Corporation (AMBAC) | | | | | | | | |
| 4.650%, 08/01/2023 | | | 2,500 | | | | 2,478 | |
| Montana Facility Finance Authority, Senior Living, St. John’s Lutheran Ministries Project, Series A | | | | | | | | |
| 6.125%, 05/15/2036 | | | 2,500 | | | | 2,120 | |
| | | | | | | | | |
| | | | | | | | 4,598 | |
| | | | | | | | | |
Nebraska – 4.3% |
| Revenue Bonds – 4.3% |
| Central Plains Energy Project, Nebraska Gas Project #1, Series A | | | | | | | | |
| 5.250%, 12/01/2021 | | | 5,000 | | | | 4,975 | |
| Nebraska Public Power District, Series B | | | | | | | | |
| 5.000%, 01/01/2020 | | | 2,750 | | | | 3,034 | |
| Washington County Wastewater & Solid Waste Disposal Facilities, Cargill Incorporated Project (AMT) | | | | | | | | |
| 4.850%, 04/01/2035 | | | 12,500 | | | | 11,696 | |
| Washington County Wastewater Facilities, Cargill Incorporated Project (AMT) | | | | | | | | |
| 5.900%, 11/01/2027 | | | 1,700 | | | | 1,747 | |
| | | | | | | | | |
| | | | | | | | 21,452 | |
| | | | | | | | | |
Nevada – 1.8% |
| Revenue Bonds – 1.8% |
| Carson City Hospital, Carson-Tahoe Hospital | | | | | | | | |
| 5.750%, 09/01/2031 | | | 2,740 | | | | 2,636 | |
| Pre-refunded 09/01/2012 @ 101 | | | | | | | | |
5.750%, 09/01/2031 ◊ | | | 2,260 | | | | 2,517 | |
| Clark County Industrial Development, Southwest Gas Corporation Project | | | | | | | | |
| Series A (AMBAC) (AMT) | | | | | | | | |
| 5.250%, 07/01/2034 | | | 4,000 | | | | 3,688 | |
| Series A (AMT) (FGIC) | | | | | | | | |
| 4.750%, 09/01/2036 | | | 80 | | | | 67 | |
| | | | | | | | | |
| | | | | | | | 8,908 | |
| | | | | | | | | |
New Hampshire – 0.4% |
| Revenue Bonds – 0.4% |
| New Hampshire Health & Educational Facilities Authority, Covenant Health | | | | | | | | |
| 5.375%, 07/01/2024 | | | 1,250 | | | | 1,266 | |
| New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital | | | | | | | | |
| 5.875%, 07/01/2034 | | | 800 | | | | 759 | |
| | | | | | | | | |
| | | | | | | | 2,025 | |
| | | | | | | | | |
New York – 0.3% |
| Revenue Bond – 0.3% |
| Troy Capital Resource, Rensselaer Polytechnic Institute Project, Series B | | | | | | | | |
| 5.000%, 09/01/2020 | | | 1,400 | | | | 1,518 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
88 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
North Carolina – 0.8% |
| Revenue Bonds – 0.8% |
| North Carolina Medical Care Community Health Care Facilities, 1st Mortgage Presbyterian | | | | | | | | |
| Series B | | | | | | | | |
| 5.200%, 10/01/2021 | | $ | 1,500 | | | $ | 1,471 | |
| North Carolina Medical Care Community Health Care Facilities, Pennybyrn at Maryfield | | | | | | | | |
| Series A | | | | | | | | |
| 6.000%, 10/01/2023 | | | 2,800 | | | | 2,507 | |
| | | | | | | | | |
| | | | | | | | 3,978 | |
| | | | | | | | | |
North Dakota – 0.2% |
| General Obligations – 0.2% |
| West Fargo, Series A (AGC) | | | | | | | | |
| 4.000%, 05/01/2017 | | | 550 | | | | 570 | |
| 4.000%, 05/01/2018 | | | 540 | | | | 557 | |
| | | | | | | | | |
| | | | | | | | 1,127 | |
| | | | | | | | | |
Ohio – 1.2% |
| Revenue Bonds – 1.2% |
Cincinnati Water System Pre-refunded 06/01/2011 @ 100 | | | | | | | | |
5.000%, 12/01/2020 ◊ | | | 125 | | | | 130 | |
| Lake County Hospital Facilities, Lake Hospital System, Series C | | | | | | | | |
| 5.625%, 08/15/2029 | | | 3,250 | | | | 3,203 | |
| Miami County Hospital Facilities, Refunding & Improvement, Upper Valley Medical Center | | | | | | | | |
| 5.250%, 05/15/2026 | | | 1,000 | | | | 1,002 | |
| Ohio Higher Educational Facility, Baldwin-Wallace College Project | | | | | | | | |
| 5.250%, 12/01/2019 | | | 1,540 | | | | 1,649 | |
| | | | | | | | | |
| | | | | | | | 5,984 | |
| | | | | | | | | |
Oregon – 0.3% |
| Revenue Bond – 0.3% |
| Gilliam County Solid Waste Disposal, Waste Management Project (AMT) | | | | | | | | |
| 5.250%, 07/01/2029 | | | 1,500 | | | | 1,506 | |
| | | | | | | | | |
Pennsylvania – 2.5% |
| Revenue Bonds – 2.5% |
| Delaware County Authority College, Neumann College | | | | | | | | |
| 6.125%, 10/01/2034 | | | 1,000 | | | | 1,051 | |
| Erie County Industrial Development Authority, International Paper Company Project | | | | | | | | |
| Series A (AMT) | | | | | | | | |
| 5.000%, 11/01/2018 | | | 1,350 | | | | 1,348 | |
| Montgomery County Industrial Development Authority, Whitemarsh Continuing Care | | | | | | | | |
| 6.250%, 02/01/2035 | | | 2,090 | | | | 1,557 | |
| Pennsylvania Economic Development Authority, Allegheny Energy Supply | | | | | | | | |
| 7.000%, 07/15/2039 | | | 5,000 | | | | 5,589 | |
| State Public School Building Authority, Delaware County Community College Project (AGM) | | | | | | | | |
| 5.000%, 10/01/2024 | | | 1,600 | | | | 1,732 | |
| Westmoreland County Industrial Development Authority, Redstone Retirement Community | | | | | | | | |
| Series A | | | | | | | | |
| 5.750%, 01/01/2026 | | | 1,200 | | | | 1,092 | |
| | | | | | | | | |
| | | | | | | | 12,369 | |
| | | | | | | | | |
Puerto Rico – 2.5% |
| Revenue Bonds – 2.3% |
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Series A (AGC) | | | | | | | | |
| 5.000%, 07/01/2028 | | | 1,000 | | | | 1,026 | |
| Puerto Rico Electric Power Authority, Series VV (NATL) | | | | | | | | |
| 5.250%, 07/01/2029 | | | 10,000 | | | | 10,329 | |
| | | | | | | | | |
| | | | | | | | 11,355 | |
| | | | | | | | | |
| General Obligations – 0.2% |
| Puerto Rico Commonwealth, Series A | | | | | | | | |
| 5.000%, 07/01/2027 | | | 550 | | | | 541 | |
| Puerto Rico Commonwealth, Public Improvement (NATL) | | | | | | | | |
| 5.750%, 07/01/2026 | | | 500 | | | | 500 | |
| | | | | | | | | |
| | | | | | | | 1,041 | |
| | | | | | | | | |
| | | | | | | | 12,396 | |
| | | | | | | | | |
South Carolina – 1.0% |
| Revenue Bonds – 0.4% |
| Georgetown County Environmental Improvement, International Paper, Series A (AMT) | | | | | | | | |
| 5.550%, 12/01/2029 | | | 700 | | | | 670 | |
| South Carolina Jobs Economic Development Authority, Palmetto Health Alliance | | | | | | | | |
| Series A | | | | | | | | |
| 6.125%, 08/01/2023 | | | 1,250 | | | | 1,300 | |
Series C, Pre-refunded 08/01/2013 @ 100 | | | | | | | | |
6.375%, 08/01/2034 ◊ | | | 135 | | | | 157 | |
| | | | | | | | | |
| | | | | | | | 2,127 | |
| | | | | | | | | |
| General Obligation – 0.6% |
| South Carolina Infrastructure, Series A | | | | | | | | |
| 3.000%, 10/01/2024 | | | 3,000 | | | | 2,841 | |
| | | | | | | | | |
| | | | | | | | 4,968 | |
| | | | | | | | | |
South Dakota – 2.9% |
| Revenue Bonds – 2.9% |
Sioux Falls Health Facilities, Dow Rummel Village Project, Series A, Pre-refunded 11/15/2012 @ 100 | | | | | | | | |
6.625%, 11/15/2023 ◊ | | | 2,270 | | | | 2,580 | |
| South Dakota Economic Development Finance Authority, Pooled Loan Program – Davis Family | | | | | | | | |
| Series 4A (AMT) | | | | | | | | |
| 6.000%, 04/01/2029 | | | 1,400 | | | | 1,424 | |
| South Dakota Economic Development Finance Authority, Pooled Loan Program – Spearfish Forest, Series A (AMT) | | | | | | | | |
| 5.875%, 04/01/2028 | | | 2,000 | | | | 2,038 | |
| South Dakota Health & Educational Facilities Authority, Vocational Education Program (AGC) | | | | | | | | |
| 5.500%, 08/01/2038 | | | 7,000 | | | | 7,392 | |
| South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community | | | | | | | | |
| 5.000%, 09/01/2031 | | | 1,250 | | | | 1,161 | |
| | | | | | | | | |
| | | | | | | | 14,595 | |
| | | | | | | | | |
Tennessee – 2.4% |
| Revenue Bonds – 2.1% |
| Claiborne County Industrial Development Board, Lincoln Memorial University Project | | | | | | | | |
| 6.625%, 10/01/2039 | | | 3,000 | | | | 3,106 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 89
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| 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 | |
| Memphis-Shelby County Airport Authority | | | | | | | | |
| Series B (AMT) | | | | | | | | |
| 5.750%, 07/01/2025 | | | 1,200 | | | | 1,257 | |
Shelby County Health, Educational, & Housing Facility Board, Methodist Healthcare Pre-refunded 09/01/2012 @ 100 | | | | | | | | |
6.500%, 09/01/2021 ◊ | | | 1,125 | | | | 1,268 | |
6.500%, 09/01/2021 ◊ | | | 1,875 | | | | 2,113 | |
| | | | | | | | | |
| | | | | | | | 10,578 | |
| | | | | | | | | |
| General Obligation – 0.3% |
| Shelby County | | | | | | | | |
| 5.000%, 04/01/2020 | | | 1,000 | | | | 1,158 | |
| | | | | | | | | |
| | | | | | | | 11,736 | |
| | | | | | | | | |
Texas – 13.7% |
| Revenue Bonds – 10.5% |
| Abilene Health Facilities Development, Sears Methodist Retirement Project | | | | | | | | |
| 5.875%, 11/15/2018 | | | 500 | | | | 443 | |
| Series A | | | | | | | | |
| 5.875%, 11/15/2018 | | | 2,500 | | | | 2,218 | |
| Brazos County Health Facilities, Franciscan Services Corporation, St. Joseph Regional | | | | | | | | |
| 5.000%, 01/01/2023 | | | 3,635 | | | | 3,632 | |
| Bryan Electric System | | | | | | | | |
| 5.000%, 07/01/2019 | | | 3,500 | | | | 3,858 | |
| Crawford Education Facilities, University of St. Thomas Project | | | | | | | | |
| 5.250%, 10/01/2022 | | | 1,300 | | | | 1,287 | |
| 5.375%, 10/01/2027 | | | 1,750 | | | | 1,699 | |
| Harris County Health Facilities Development Corporation, Memorial Hermann Healthcare System, Series B | | | | | | | | |
| 7.250%, 12/01/2035 | | | 2,000 | | | | 2,263 | |
| La Vernia Higher Education Finance Corporation, Kipp Incorporated, Series A (GTY) | | | | | | | | |
| 6.250%, 08/15/2039 | | | 1,500 | | | | 1,553 | |
| Lubbock Educational Facilities Authority, Lubbock Christian University | | | | | | | | |
| 5.125%, 11/01/2027 | | | 1,000 | | | | 977 | |
| 5.250%, 11/01/2037 | | | 2,500 | | | | 2,368 | |
| North Texas Tollway Authority, First Tier | | | | | | | | |
Series E3
Mandatory Put 01/01/2016 @ 100 | | | | | | | | |
| 5.750%, 01/01/2038 | | | 4,500 | | | | 5,053 | |
| Red River Authority Sewer & Solid Waste Disposal, Excel Corporation Project (AMT) | | | | | | | | |
| 6.100%, 02/01/2022 | | | 3,775 | | | | 3,868 | |
| San Antonio Electric & Gas | | | | | | | | |
| 5.000%, 02/01/2025 | | | 4,000 | | | | 4,363 | |
| Series A | | | | | | | | |
| 5.250%, 02/01/2025 | | | 10,000 | | | | 11,217 | |
| San Marcos Waterworks & Waste Water Systems (AGM) | | | | | | | | |
| 5.000%, 08/15/2026 | | | 1,000 | | | | 1,057 | |
| Tarrant County Cultural Education Retirement Facility, Northwest Senior Housing, Edgemere Project, Series A | | | | | | | | |
| 6.000%, 11/15/2026 | | | 1,600 | | | | 1,617 | |
| Travis County Health Facilities, Querencia Barton Creek Project | | | | | | | | |
| 5.500%, 11/15/2025 | | | 1,300 | | | | 1,182 | |
| 5.650%, 11/15/2035 | | | 4,100 | | | | 3,430 | |
| | | | | | | | | |
| | | | | | | | 52,085 | |
| | | | | | | | | |
| General Obligations – 3.2% |
| Fort Bend Independent School District Escrowed to Maturity (PSFG) | | | | | | | | |
| 5.000%, 02/15/2014 § | | | 500 | | | | 570 | |
| Humble Independent School District | | | | | | | | |
| Series A (AGC) | | | | | | | | |
| 5.250%, 02/15/2022 | | | 2,635 | | | | 2,950 | |
| Klein Independent School District | | | | | | | | |
| Series A (PSFG) | | | | | | | | |
| 5.000%, 08/01/2022 | | | 2,000 | | | | 2,306 | |
| 5.000%, 08/01/2023 | | | 2,285 | | | | 2,611 | |
| San Marcos Certificates of Obligation (AGM) | | | | | | | | |
| 5.000%, 08/15/2025 | | | 1,000 | | | | 1,070 | |
| 5.000%, 08/15/2027 | | | 1,000 | | | | 1,058 | |
| Texas Transportation Commission, Mobility Fund | | | | | | | | |
| 5.000%, 04/01/2028 | | | 5,000 | | | | 5,299 | |
| | | | | | | | | |
| | | | | | | | 15,864 | |
| | | | | | | | | |
| | | | | | | | 67,949 | |
| | | | | | | | | |
Utah – 0.2% |
| Revenue Bonds – 0.2% |
| Intermountain Power Agency, Utah Power Supply | | | | | | | | |
| Series A (AMBAC) | | | | | | | | |
| 6.500%, 07/01/2011 | | | 365 | | | | 386 | |
| Series A, Escrowed to Maturity (AMBAC) | | | | | | | | |
| 6.500%, 07/01/2011 § | | | 635 | | | | 675 | |
| | | | | | | | | |
| | | | | | | | 1,061 | |
| | | | | | | | | |
Vermont – 0.2% |
| Revenue Bond – 0.2% |
| Vermont Economic Development Authority, Wake Robin Corporation Project, Series A | | | | | | | | |
| 5.250%, 05/01/2026 | | | 1,000 | | | | 909 | |
| | | | | | | | | |
Virginia – 0.2% |
| Revenue Bond – 0.2% |
| Arlington County Industrial Development Authority, Berkeley Apartments (AMT) (FNMA) | | | | | | | | |
| 5.850%, 12/01/2020 | | | 1,000 | | | | 1,025 | |
| | | | | | | | | |
Washington – 3.4% |
| Revenue Bonds – 3.4% |
| Energy Northwest Washington Electric, Project 3 | | | | | | | | |
| Series A | | | | | | | | |
| 5.000%, 07/01/2018 | | | 2,500 | | | | 2,918 | |
| Seattle Municipal Light & Power | | | | | | | | |
| Series B | | | | | | | | |
| 5.000%, 02/01/2022 | | | 5,000 | | | | 5,666 | |
| Washington Health Care Facilities Authority, Central Washington Health Services | | | | | | | | |
| 6.250%, 07/01/2024 | | | 2,000 | | | | 2,117 | |
| 7.000%, 07/01/2039 | | | 2,000 | | | | 2,142 | |
| Washington Higher Education Facilities Authority, Whitworth University Project | | | | | | | | |
| 5.375%, 10/01/2029 | | | 3,000 | | | | 3,010 | |
| Washington Public Power Supply System, Nuclear Project #3, Series B | | | | | | | | |
| 7.125%, 07/01/2016 | | | 600 | | | | 756 | |
| | | | | | | | | |
| | | | | | | | 16,609 | |
| | | | | | | | | |
The accompanying notes are an integral part of the financial statements.
90 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | |
| Tax Free Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
Wisconsin – 1.7% |
| Revenue Bonds – 1.7% |
| Wisconsin Health & Educational Facilities Authority, Beaver Dam Community Hospitals | | | | | | | | |
| Series A | | | | | | | | |
| 6.750%, 08/15/2034 | | $ | 2,000 | | | $ | 2,006 | |
| Wisconsin Health & Educational Facilities Authority, Beloit College, Series A | | | | | | | | |
| 6.125%, 06/01/2039 | | | 1,225 | | | | 1,225 | |
| Wisconsin Health & Educational Facilities Authority, Children’s Hospital of Wisconsin | | | | | | | | |
| 5.250%, 08/15/2024 | | | 2,000 | | | | 2,115 | |
| Wisconsin Health & Educational Facilities Authority, Eastcastle Place Incorporated Project | | | | | | | | |
| 6.000%, 12/01/2024 | | | 1,000 | | | | 928 | |
| Wisconsin Health & Educational Facilities Authority, New Castle Place Project, Series A | | | | | | | | |
| 7.000%, 12/01/2031 | | | 2,000 | | | | 1,935 | |
| | | | | | | | | |
| | | | | | | | 8,209 | |
| | | | | | | | | |
Wyoming – 0.7% |
| Revenue Bonds – 0.7% |
| Teton County Hospital District, St. John’s Medical Center | | | | | | | | |
| 6.750%, 12/01/2022 | | | 2,100 | | | | 2,111 | |
| 6.750%, 12/01/2027 | | | 1,500 | | | | 1,464 | |
| | | | | | | | | |
| | | | | | | | 3,575 | |
| | | | | | | | | |
Total Municipal Bonds | | | | | | | | |
(Cost $449,740) | | | | | | | 455,927 | |
| | | | | | | | | |
Investment Company – 2.0% |
First American Short Tax Free Fund, Class Y ◖ | | | | | | | | |
(Cost $10,000) | | | 1,003,009 | | | | 10,010 | |
| | | | | | | | | |
Short-Term Investment – 5.0% |
| First American Tax Free Obligations Fund, Class Z | | | | | | | | |
0.029% Å Ω | | | | | | | | |
(Cost $24,664) | | | 24,664,324 | | | | 24,664 | |
| | | | | | | | | |
Total Investments 5 – 99.0% | | | | | | | | |
(Cost $484,404) | | | | | | | 490,601 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – 1.0% | | | | | | | 5,199 | |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 495,800 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 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. |
| |
| ◗ | | Convertible Capital Appreciation Bonds (Convertible CABs) 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, 2010. |
| |
| § | | 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. |
| |
| ◖ | | This fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. Details of transactions with this affiliated fund for fiscal year ended June 30, 2010 were as follows: |
Tax Free Fund (concluded)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | Purchase
| | | Sales
| | | Ending
| | | Dividend
| | | | | | Fair
| |
| Issuer | | Cost | | Cost | | | Cost | | | Cost | | | Income | | | Shares | | | Value | |
| | |
| First American Short Tax Free Fund | | $— | | $ | 10,000 | | | $ | — | | | $ | 10,000 | | | $ | 11 | | | | 1,003,009 | | | $ | 10,010 | |
| | |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $484,803. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 17,947 | |
| Gross unrealized depreciation | | | (12,149 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 5,798 | |
| | | | | |
| |
| ACA – | ACA Financial Guaranty Corporation |
| |
| AGC – | Assured Guaranty Corporation |
| |
| AGM – | Assured Guaranty Municipal Corporation |
| |
| AMBAC – | American Municipal Bond Assurance Corporation |
| |
| AMT – | Alternative Minimum Tax. As of June 30, 2010, the aggregate fair value of securities subject to the AMT was $60,189, which represents 12.1% of total net assets. |
| |
| FGIC – | Financial Guaranty Insurance Corporation |
| |
| FHA – | Federal Housing Administration |
| |
| FNMA – | Federal National Mortgage Association |
| |
| GNMA – | Government National Mortgage Association |
| |
| IBC – | Insured Bond Certificate |
| |
| NATL – | National Public Finance Guarantee Corporation |
| |
| PSFG – | Permanent School Fund Guarantee |
| |
| RAAI – | Radian Asset Assurance Inc. |
| |
| SGI – | Syncora Guarantee Inc. |
| |
| VA – | Veterans Administration |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 91
| |
| Statements of Assets and Liabilities | June 30, 2010, all dollars and shares are rounded to thousands (000), except for per share data |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Minnesota
| | | |
| | | California
| | | | Colorado
| | | | Intermediate
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| Unaffiliated investments, at cost | | $ | 97,550 | | | | $ | 59,781 | | | | $ | 725,967 | | | | $ | 224,227 | | | |
| Affiliated funds, at cost | | | 2,315 | | | | | 2,342 | | | | | 11,611 | | | | | — | | | |
| |
| |
ASSETS: | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated investments, at fair value (note 2) | | $ | 99,634 | | | | $ | 61,670 | | | | $ | 760,768 | | | | $ | 233,700 | | | |
| Affiliated money market fund, at fair value (note 2) | | | 2,315 | | | | | 2,342 | | | | | 11,611 | | | | | — | | | |
| Cash | | | — | | | | | — | | | | | — | | | | | — | | | |
| Receivable for dividends and interest | | | 1,401 | | | | | 477 | | | | | 9,173 | | | | | 2,863 | | | |
| Receivable for investments sold | | | — | | | | | — | | | | | — | | | | | — | | | |
| Receivable for capital shares sold | | | 646 | | | | | 1 | | | | | 2,514 | | | | | 122 | | | |
| Receivable from advisor (note 3) | | | — | | | | | — | | | | | — | | | | | — | | | |
| Prepaid expenses and other assets | | | 2 | | | | | 2 | | | | | 8 | | | | | 2 | | | |
| |
| |
Total assets | | | 103,998 | | | | | 64,492 | | | | | 784,074 | | | | | 236,687 | | | |
| |
| |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | |
| Dividends payable | | | 326 | | | | | 193 | | | | | 2,308 | | | | | 587 | | | |
| Payable for investments purchased | | | — | | | | | — | | | | | — | | | | | — | | | |
| Payable for investments purchased on a when-issued basis | | | — | | | | | 986 | | | | | 3,396 | | | | | 3,369 | | | |
| Payable for capital shares redeemed | | | 1 | | | | | 28 | | | | | 359 | | | | | 210 | | | |
| Payable to affiliates (note 3) | | | 40 | | | | | 25 | | | | | 436 | | | | | 123 | | | |
| Payable for distribution and shareholder servicing fees | | | 4 | | | | | 4 | | | | | 3 | | | | | 4 | | | |
| Accrued expenses and other liabilities | | | 29 | | | | | 29 | | | | | 30 | | | | | 29 | | | |
| |
| |
Total liabilities | | | 400 | | | | | 1,265 | | | | | 6,532 | | | | | 4,322 | | | |
| |
| |
Net assets | | $ | 103,598 | | | | $ | 63,227 | | | | $ | 777,542 | | | | $ | 232,365 | | | |
| |
| |
COMPOSITION OF NET ASSETS: | | | | | | | | | | | | | | | | | | | | | |
| Portfolio capital | | $ | 101,270 | | | | $ | 60,910 | | | | $ | 742,530 | | | | $ | 222,961 | | | |
| Undistributed (distributions in excess of) net investment income | | | 28 | | | | | (26 | ) | | | | (278 | ) | | | | (69 | ) | | |
| Accumulated net realized gain (loss) on investments (note 2) | | | 216 | | | | | 454 | | | | | 489 | | | | | — | | | |
| Net unrealized appreciation of investments | | | 2,084 | | | | | 1,889 | | | | | 34,801 | | | | | 9,473 | | | |
| |
| |
Net assets | | $ | 103,598 | | | | $ | 63,227 | | | | $ | 777,542 | | | | $ | 232,365 | | | |
| |
| |
Class A: | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 17,315 | | | | $ | 10,811 | | | | $ | 59,606 | | | | $ | 34,957 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 1,592 | | | | | 1,069 | | | | | 5,469 | | | | | 3,453 | | | |
| Net asset value and redemption price per share | | $ | 10.88 | | | | $ | 10.12 | | | | $ | 10.90 | | | | $ | 10.12 | | | |
Maximum offering price per share1 | | $ | 11.36 | | | | $ | 10.57 | | | | $ | 11.15 | | | | $ | 10.35 | | | |
Class C: | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 4,674 | | | | $ | 3,172 | | | | $ | 1,484 | | | | $ | 3,965 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 429 | | | | | 314 | | | | | 136 | | | | | 391 | | | |
Net asset value, offering price, and redemption price per share2 | | $ | 10.89 | | | | $ | 10.09 | | | | $ | 10.94 | | | | $ | 10.14 | | | |
Class Y: | | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 81,609 | | | | $ | 49,244 | | | | $ | 716,452 | | | | $ | 193,443 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 7,502 | | | | | 4,856 | | | | | 65,914 | | | | | 19,226 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 10.88 | | | | $ | 10.14 | | | | $ | 10.87 | | | | $ | 10.06 | | | |
| |
| |
| | |
| | 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.
92 FIRST AMERICAN FUNDS 2010 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 | | | |
| |
| | | $ | 162,204 | | | | $ | 151,749 | | | | $ | 38,777 | | | | $ | 59,264 | | | | $ | 148,471 | | | | $ | 289,222 | | | | $ | 449,740 | | | |
| | | | 8,915 | | | | | 8,297 | | | | | 1,531 | | | | | 2,194 | | | | | 8,554 | | | | | 22,017 | | | | | 34,664 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 165,563 | | | | $ | 153,200 | | | | $ | 40,194 | | | | $ | 61,073 | | | | $ | 155,141 | | | | $ | 294,273 | | | | $ | 455,927 | | | |
| | | | 8,915 | | | | | 8,297 | | | | | 1,531 | | | | | 2,194 | | | | | 8,554 | | | | | 22,017 | | | | | 34,674 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | | | |
| | | | 1,995 | | | | | 1,989 | | | | | 519 | | | | | 589 | | | | | 1,298 | | | | | 2,809 | | | | | 6,885 | | | |
| | | | — | | | | | — | | | | | — | | | | | 105 | | | | | — | | | | | — | | | | | — | | | |
| | | | 332 | | | | | 965 | | | | | 180 | | | | | 157 | | | | | 910 | | | | | 917 | | | | | 851 | | | |
| | | | — | | | | | — | | | | | 6 | | | | | 2 | | | | | — | | | | | — | | | | | — | | | |
| | | | 3 | | | | | 2 | | | | | 5 | | | | | 1 | | | | | 1 | | | | | — | | | | | 7 | | | |
| |
| |
| | | | 176,808 | | | | | 164,453 | | | | | 42,435 | | | | | 64,121 | | | | | 165,904 | | | | | 320,016 | | | | | 498,355 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 278 | | | | | 478 | | | | | 111 | | | | | 183 | | | | | 376 | | | | | 444 | | | | | 1,760 | | | |
| | | | — | | | | | — | | | | | — | | | | | 1,026 | | | | | — | | | | | — | | | | | — | | | |
| | | | 4,279 | | | | | 920 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| | | | 775 | | | | | 401 | | | | | 3 | | | | | 87 | | | | | 548 | | | | | 1,450 | | | | | 480 | | | |
| | | | 89 | | | | | 89 | | | | | 18 | | | | | 22 | | | | | 88 | | | | | 142 | | | | | 279 | | | |
| | | | 25 | | | | | 4 | | | | | 4 | | | | | 1 | | | | | 4 | | | | | 1 | | | | | 5 | | | |
| | | | 29 | | | | | 29 | | | | | 28 | | | | | 28 | | | | | 29 | | | | | 28 | | | | | 31 | | | |
| |
| |
| | | | 5,475 | | | | | 1,921 | | | | | 164 | | | | | 1,347 | | | | | 1,045 | | | | | 2,065 | | | | | 2,555 | | | |
| |
| |
| | | $ | 171,333 | | | | $ | 162,532 | | | | $ | 42,271 | | | | $ | 62,774 | | | | $ | 164,859 | | | | $ | 317,951 | | | | $ | 495,800 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 168,181 | | | | $ | 160,980 | | | | $ | 41,470 | | | | $ | 61,484 | | | | $ | 158,720 | | | | $ | 314,342 | | | | $ | 496,823 | | | |
| | | | 24 | | | | | (65 | ) | | | | 22 | | | | | 34 | | | | | (29 | ) | | | | (6 | ) | | | | (391 | ) | | |
| | | | (231 | ) | | | | 166 | | | | | (638 | ) | | | | (553 | ) | | | | (502 | ) | | | | (1,436 | ) | | | | (6,829 | ) | | |
| | | | 3,359 | | | | | 1,451 | | | | | 1,417 | | | | | 1,809 | | | | | 6,670 | | | | | 5,051 | | | | | 6,197 | | | |
| |
| |
| | | $ | 171,333 | | | | $ | 162,532 | | | | $ | 42,271 | | | | $ | 62,774 | | | | $ | 164,859 | | | | $ | 317,951 | | | | $ | 495,800 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 91,922 | | | | $ | 23,830 | | | | $ | 6,333 | | | | $ | 1,899 | | | | $ | 31,043 | | | | $ | 7,168 | | | | $ | 45,885 | | | |
| | | | 8,455 | | | | | 2,039 | | | | | 612 | | | | | 182 | | | | | 3,070 | | | | | 718 | | | | | 4,327 | | | |
| | | $ | 10.87 | | | | $ | 11.68 | | | | $ | 10.34 | | | | $ | 10.42 | | | | $ | 10.11 | | | | $ | 9.98 | | | | $ | 10.61 | | | |
| | | $ | 11.35 | | | | $ | 12.20 | | | | $ | 10.80 | | | | $ | 10.88 | | | | $ | 10.34 | | | | $ | 10.21 | | | | $ | 11.08 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 26,772 | | | | $ | 1,653 | | | | $ | 4,181 | | | | $ | 1,347 | | | | | — | | | | | — | | | | $ | 5,698 | | | |
| | | | 2,474 | | | | | 142 | | | | | 407 | | | | | 131 | | | | | — | | | | | — | | | | | 540 | | | |
| | | $ | 10.82 | | | | $ | 11.65 | | | | $ | 10.26 | | | | $ | 10.27 | | | | | — | | | | | — | | | | $ | 10.56 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 52,639 | | | | $ | 137,049 | | | | $ | 31,757 | | | | $ | 59,528 | | | | $ | 133,816 | | | | $ | 310,783 | | | | $ | 444,217 | | | |
| | | | 4,849 | | | | | 11,725 | | | | | 3,072 | | | | | 5,715 | | | | | 13,237 | | | | | 31,142 | | | | | 41,841 | | | |
| | | $ | 10.86 | | | | $ | 11.69 | | | | $ | 10.34 | | | | $ | 10.42 | | | | $ | 10.11 | | | | $ | 9.98 | | | | $ | 10.62 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 93
| |
| Statements of Operations | For the year ended June 30, 2010, all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Minnesota
| | | |
| | | California
| | | | Colorado
| | | | Intermediate
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | | | | | | |
| Interest from unaffiliated investments | | $ | 5,001 | | | | $ | 3,218 | | | | $ | 35,115 | | | | $ | 9,406 | | | |
| Dividends from unaffiliated money market fund | | | 1 | | | | | — | | | | | — | | | | | 7 | | | |
| Dividends from affiliated funds | | | — | | | | | — | | | | | 9 | | | | | — | | | |
| |
| |
Total investment income | | | 5,002 | | | | | 3,218 | | | | | 35,124 | | | | | 9,413 | | | |
| |
| |
EXPENSES (note 3): | | | | | | | | | | | | | | | | | | | | | |
| Investment advisory fees | | | 499 | | | | | 323 | | | | | 3,696 | | | | | 1,079 | | | |
| Administration fees | | | 231 | | | | | 151 | | | | | 1,677 | | | | | 493 | | | |
| Transfer agent fees | | | 80 | | | | | 80 | | | | | 75 | | | | | 75 | | | |
| Custodian fees | | | 5 | | | | | 3 | | | | | 37 | | | | | 11 | | | |
| Legal fees | | | 17 | | | | | 17 | | | | | 17 | | | | | 16 | | | |
| Audit fees | | | 34 | | | | | 34 | | | | | 34 | | | | | 34 | | | |
| Registration fees | | | 7 | | | | | 6 | | | | | 46 | | | | | 12 | | | |
| Postage & printing fees | | | 7 | | | | | 5 | | | | | 26 | | | | | 9 | | | |
| Directors’ fees | | | 31 | | | | | 31 | | | | | 31 | | | | | 31 | | | |
| Other expenses | | | 20 | | | | | 20 | | | | | 24 | | | | | 22 | | | |
| Distribution and shareholder servicing fees: | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 42 | | | | | 28 | | | | | 116 | | | | | 71 | | | |
| Class C | | | 26 | | | | | 20 | | | | | 3 | | | | | 8 | | | |
| |
| |
Total expenses | | | 999 | | | | | 718 | | | | | 5,782 | | | | | 1,861 | | | |
| |
| |
| Less: Fee waivers (note 3) | | | (449 | ) | | | | (347 | ) | | | | (598 | ) | | | | (327 | ) | | |
| |
| |
Total net expenses | | | 550 | | | | | 371 | | | | | 5,184 | | | | | 1,534 | | | |
| |
| |
Investment income – net | | | 4,452 | | | | | 2,847 | | | | | 29,940 | | | | | 7,879 | | | |
| |
| |
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5): | | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 499 | | | | | 1,080 | | | | | 1,318 | | | | | 42 | | | |
| Futures contracts | | | — | | | | | — | | | | | — | | | | | — | | | |
| Net change in unrealized appreciation of: | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 5,413 | | | | | 2,902 | | | | | 27,550 | | | | | 9,395 | | | |
| |
| |
Net gain on investments and futures contracts | | | 5,912 | | | | | 3,982 | | | | | 28,868 | | | | | 9,437 | | | |
| |
| |
Net increase in net assets resulting from operations | | $ | 10,364 | | | | $ | 6,829 | | | | $ | 58,808 | | | | $ | 17,316 | | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
94 FIRST AMERICAN FUNDS 2010 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 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7,723 | | | | $ | 7,512 | | | | $ | 1,984 | | | | $ | 2,470 | | | | $ | 6,369 | | | | $ | 6,735 | | | | $ | 25,384 | | | |
| | | | 6 | | | | | — | | | | | — | | | | | 4 | | | | | — | | | | | — | | | | | — | | | |
| | | | 1 | | | | | 1 | | | | | — | | | | | — | | | | | 2 | | | | | 8 | | | | | 15 | | | |
| |
| |
| | | | 7,730 | | | | | 7,513 | | | | | 1,984 | | | | | 2,474 | | | | | 6,371 | | | | | 6,743 | | | | | 25,399 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 822 | | | | | 753 | | | | | 208 | | | | | 277 | | | | | 755 | | | | | 1,324 | | | | | 2,325 | | | |
| | | | 377 | | | | | 346 | | | | | 100 | | | | | 131 | | | | | 346 | | | | | 607 | | | | | 1,057 | | | |
| | | | 82 | | | | | 82 | | | | | 80 | | | | | 80 | | | | | 60 | | | | | 60 | | | | | 80 | | | |
| | | | 8 | | | | | 8 | | | | | 2 | | | | | 3 | | | | | 8 | | | | | 13 | | | | | 23 | | | |
| | | | 17 | | | | | 17 | | | | | 16 | | | | | 17 | | | | | 16 | | | | | 16 | | | | | 16 | | | |
| | | | 34 | | | | | 34 | | | | | 34 | | | | | 34 | | | | | 34 | | | | | 34 | | | | | 34 | | | |
| | | | 13 | | | | | 9 | | | | | 9 | | | | | 6 | | | | | 6 | | | | | 28 | | | | | 37 | | | |
| | | | 8 | | | | | 7 | | | | | 3 | | | | | 3 | | | | | 6 | | | | | 8 | | | | | 13 | | | |
| | | | 31 | | | | | 31 | | | | | 31 | | | | | 31 | | | | | 30 | | | | | 31 | | | | | 31 | | | |
| | | | 21 | | | | | 21 | | | | | 21 | | | | | 21 | | | | | 21 | | | | | 21 | | | | | 25 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 228 | | | | | 57 | | | | | 16 | | | | | 4 | | | | | 54 | | | | | 16 | | | | | 104 | | | |
| | | | 158 | | | | | 7 | | | | | 23 | | | | | 5 | | | | | — | | | | | — | | | | | 30 | | | |
| |
| |
| | | | 1,799 | | | | | 1,372 | | | | | 543 | | | | | 612 | | | | | 1,336 | | | | | 2,158 | | | | | 3,775 | | | |
| |
| |
| | | | (355 | ) | | | | (281 | ) | | | | (298 | ) | | | | (328 | ) | | | | (252 | ) | | | | (584 | ) | | | | (485 | ) | | |
| |
| |
| | | | 1,444 | | | | | 1,091 | | | | | 245 | | | | | 284 | | | | | 1,084 | | | | | 1,574 | | | | | 3,290 | | | |
| |
| |
| | | | 6,286 | | | | | 6,422 | | | | | 1,739 | | | | | 2,190 | | | | | 5,287 | | | | | 5,169 | | | | | 22,109 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1,108 | | | | | 835 | | | | | (19 | ) | | | | 19 | | | | | 528 | | | | | 2,406 | | | | | 801 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | (111 | ) | | | | — | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 12,393 | | | | | 7,851 | | | | | 2,000 | | | | | 2,508 | | | | | 4,379 | | | | | 2,992 | | | | | 41,451 | | | |
| |
| |
| | | | 13,501 | | | | | 8,686 | | | | | 1,981 | | | | | 2,527 | | | | | 4,796 | | | | | 5,398 | | | | | 42,252 | | | |
| |
| |
| | | $ | 19,787 | | | | $ | 15,108 | | | | $ | 3,720 | | | | $ | 4,717 | | | | $ | 10,083 | | | | $ | 10,567 | | | | $ | 64,361 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 95
| |
| Statements of Changes in Net Assets | all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | California
| | | | Colorado
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund1 | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 4,452 | | | $ | 3,079 | | | | $ | 2,847 | | | $ | 2,049 | | | | $ | 29,940 | | | $ | 28,489 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 499 | | | | 82 | | | | | 1,080 | | | | 145 | | | | | 1,318 | | | | (457 | ) | | |
| Futures contracts | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 5,413 | | | | (3,078 | ) | | | | 2,902 | | | | (872 | ) | | | | 27,550 | | | | (2,077 | ) | | |
| Futures contracts | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | 10,364 | | | | 83 | | | | | 6,829 | | | | 1,322 | | | | | 58,808 | | | | 25,955 | | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (722 | ) | | | (622 | ) | | | | (470 | ) | | | (367 | ) | | | | (1,856 | ) | | | (1,243 | ) | | |
| Class C | | | (153 | ) | | | (115 | ) | | | | (118 | ) | | | (123 | ) | | | | (16 | ) | | | — | | | |
| Class Y | | | (3,542 | ) | | | (2,343 | ) | | | | (2,237 | ) | | | (1,611 | ) | | | | (27,974 | ) | | | (28,122 | ) | | |
| Net realized gain on investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (44 | ) | | | — | | | | | (101 | ) | | | (46 | ) | | | | — | | | | (22 | ) | | |
| Class C | | | (11 | ) | | | — | | | | | (27 | ) | | | (24 | ) | | | | — | | | | — | | | |
| Class Y | | | (211 | ) | | | — | | | | | (455 | ) | | | (132 | ) | | | | — | | | | (483 | ) | | |
| |
| |
| Total distributions | | | (4,683 | ) | | | (3,080 | ) | | | | (3,408 | ) | | | (2,303 | ) | | | | (29,846 | ) | | | (29,870 | ) | | |
| |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 2,905 | | | | 4,306 | | | | | 1,018 | | | | 877 | | | | | 32,251 | | | | 12,873 | | | |
| Fund merger (note 8) | | | — | | | | 4,782 | | | | | — | | | | 5,874 | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 466 | | | | 398 | | | | | 442 | | | | 323 | | | | | 1,253 | | | | 899 | | | |
| Payments for redemptions | | | (3,438 | ) | | | (4,585 | ) | | | | (2,325 | ) | | | (1,135 | ) | | | | (10,578 | ) | | | (6,277 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | (67 | ) | | | 4,901 | | | | | (865 | ) | | | 5,939 | | | | | 22,926 | | | | 7,495 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 1,599 | | | | 1,946 | | | | | 554 | | | | 598 | | | | | 1,645 | | | | — | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 112 | | | | 81 | | | | | 104 | | | | 118 | | | | | 10 | | | | — | | | |
| Payments for redemptions (note 3) | | | (1,329 | ) | | | (327 | ) | | | | (537 | ) | | | (494 | ) | | | | (178 | ) | | | — | | | |
| |
| |
| Increase in net assets from Class C transactions | | | 382 | | | | 1,700 | | | | | 121 | | | | 222 | | | | | 1,477 | | | | — | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 15,859 | | | | 11,939 | | | | | 9,950 | | | | 1,672 | | | | | 182,199 | | | | 174,306 | | | |
| Fund merger (note 8) | | | — | | | | 54,350 | | | | | — | | | | 42,389 | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 96 | | | | 65 | | | | | 196 | | | | 87 | | | | | 2,216 | | | | 2,666 | | | |
| Payments for redemptions | | | (16,450 | ) | | | (16,902 | ) | | | | (15,096 | ) | | | (8,391 | ) | | | | (137,650 | ) | | | (161,514 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | (495 | ) | | | 49,452 | | | | | (4,950 | ) | | | 35,757 | | | | | 46,765 | | | | 15,458 | | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | (180 | ) | | | 56,053 | | | | | (5,694 | ) | | | 41,918 | | | | | 71,168 | | | | 22,953 | | | |
| |
| |
| Total increase (decrease) in net assets | | | 5,501 | | | | 53,056 | | | | | (2,273 | ) | | | 40,937 | | | | | 100,130 | | | | 19,038 | | | |
Net assets at beginning of period | | | 98,097 | | | | 45,041 | | | | | 65,500 | | | | 24,563 | | | | | 677,412 | | | | 658,374 | | | |
| |
| |
Net assets at end of period | | $ | 103,598 | | | $ | 98,097 | | | | $ | 63,227 | | | $ | 65,500 | | | | $ | 777,542 | | | $ | 677,412 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income at end of period | | $ | 28 | | | $ | (7 | ) | | | $ | (26 | ) | | $ | (48 | ) | | | $ | (278 | ) | | $ | (372 | ) | | |
| |
| |
| | |
| | 1 | The fund began offering Class C on October 28, 2009. |
The accompanying notes are an integral part of the financial statements.
96 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Minnesota
| | | | | | | | | | | | | | | | | | | |
| | | Intermediate
| | | | Minnesota
| | | | Missouri
| | | | Nebraska
| | | | Ohio
| | | |
| | | Tax Free Fund1 | | | | 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
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7,879 | | | $ | 7,724 | | | | $ | 6,286 | | | $ | 6,466 | | | | $ | 6,422 | | | $ | 6,579 | | | | $ | 1,739 | | | $ | 1,719 | | | | $ | 2,190 | | | $ | 2,020 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 42 | | | | 277 | | | | | 1,108 | | | | (810 | ) | | | | 835 | | | | 685 | | | | | (19 | ) | | | (202 | ) | | | | 19 | | | | (353 | ) | | |
| | | | — | | | | — | | | | | — | | | | (154 | ) | | | | — | | | | — | | | | | — | | | | (245 | ) | | | | — | | | | (195 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9,395 | | | | (1,942 | ) | | | | 12,393 | | | | (6,522 | ) | | | | 7,851 | | | | (4,614 | ) | | | | 2,000 | | | | (344 | ) | | | | 2,508 | | | | (255 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | 2 | | | |
| |
| |
| | | | 17,316 | | | | 6,059 | | | | | 19,787 | | | | (1,020 | ) | | | | 15,108 | | | | 2,650 | | | | | 3,720 | | | | 928 | | | | | 4,717 | | | | 1,219 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1,021 | ) | | | (936 | ) | | | | (3,519 | ) | | | (3,870 | ) | | | | (951 | ) | | | (955 | ) | | | | (244 | ) | | | (253 | ) | | | | (53 | ) | | | (31 | ) | | |
| | | | (38 | ) | | | — | | | | | (818 | ) | | | (735 | ) | | | | (42 | ) | | | (21 | ) | | | | (123 | ) | | | (90 | ) | | | | (23 | ) | | | (10 | ) | | |
| | | | (6,807 | ) | | | (6,863 | ) | | | | (1,956 | ) | | | (1,856 | ) | | | | (5,466 | ) | | | (5,710 | ) | | | | (1,333 | ) | | | (1,415 | ) | | | | (2,063 | ) | | | (2,005 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (14 | ) | | | (67 | ) | | | | (6 | ) | | | (519 | ) | | | | (168 | ) | | | (51 | ) | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | (1 | ) | | | (109 | ) | | | | (8 | ) | | | (1 | ) | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | (90 | ) | | | (447 | ) | | | | (3 | ) | | | (234 | ) | | | | (918 | ) | | | (283 | ) | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| | | | (7,970 | ) | | | (8,313 | ) | | | | (6,303 | ) | | | (7,323 | ) | | | | (7,553 | ) | | | (7,021 | ) | | | | (1,700 | ) | | | (1,758 | ) | | | | (2,139 | ) | | | (2,046 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 14,085 | | | | 9,912 | | | | | 12,953 | | | | 11,454 | | | | | 3,897 | | | | 2,562 | | | | | 1,600 | | | | 1,265 | | | | | 1,100 | | | | 425 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 761 | | | | 687 | | | | | 2,206 | | | | 2,771 | | | | | 653 | | | | 517 | | | | | 153 | | | | 166 | | | | | 48 | | | | 24 | | | |
| | | | (4,091 | ) | | | (9,326 | ) | | | | (18,154 | ) | | | (23,953 | ) | | | | (4,633 | ) | | | (2,921 | ) | | | | (1,577 | ) | | | (1,154 | ) | | | | (368 | ) | | | (36 | ) | | |
| |
| |
| | | | 10,755 | | | | 1,273 | | | | | (2,995 | ) | | | (9,728 | ) | | | | (83 | ) | | | 158 | | | | | 176 | | | | 277 | | | | | 780 | | | | 413 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4,278 | | | | — | | | | | 6,758 | | | | 4,451 | | | | | 1,029 | | | | 342 | | | | | 1,575 | | | | 819 | | | | | 927 | | | | 266 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 34 | | | | — | | | | | 611 | | | | 585 | | | | | 33 | | | | 17 | | | | | 75 | | | | 47 | | | | | 9 | | | | 5 | | | |
| | | | (370 | ) | | | — | | | | | (3,009 | ) | | | (3,560 | ) | | | | (212 | ) | | | (2 | ) | | | | (204 | ) | | | (66 | ) | | | | (15 | ) | | | (117 | ) | | |
| |
| |
| | | | 3,942 | | | | — | | | | | 4,360 | | | | 1,476 | | | | | 850 | | | | 357 | | | | | 1,446 | | | | 800 | | | | | 921 | | | | 154 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 44,976 | | | | 39,545 | | | | | 15,413 | | | | 17,375 | | | | | 41,446 | | | | 29,215 | | | | | 4,178 | | | | 7,086 | | | | | 18,536 | | | | 6,084 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 168 | | | | 279 | | | | | 76 | | | | 100 | | | | | 256 | | | | 190 | | | | | 134 | | | | 91 | | | | | 190 | | | | 294 | | | |
| | | | (32,281 | ) | | | (41,124 | ) | | | | (8,805 | ) | | | (18,223 | ) | | | | (30,537 | ) | | | (43,791 | ) | | | | (4,804 | ) | | | (5,323 | ) | | | | (6,461 | ) | | | (9,288 | ) | | |
| |
| |
| | | | 12,863 | | | | (1,300 | ) | | | | 6,684 | | | | (748 | ) | | | | 11,165 | | | | (14,386 | ) | | | | (492 | ) | | | 1,854 | | | | | 12,265 | | | | (2,910 | ) | | |
| |
| |
| | | | 27,560 | | | | (27 | ) | | | | 8,049 | | | | (9,000 | ) | | | | 11,932 | | | | (13,871 | ) | | | | 1,130 | | | | 2,931 | | | | | 13,966 | | | | (2,343 | ) | | |
| |
| |
| | | | 36,906 | | | | (2,281 | ) | | | | 21,533 | | | | (17,343 | ) | | | | 19,487 | | | | (18,242 | ) | | | | 3,150 | | | | 2,101 | | | | | 16,544 | | | | (3,170 | ) | | |
| | | | 195,459 | | | | 197,740 | | | | | 149,800 | | | | 167,143 | | | | | 143,045 | | | | 161,287 | | | | | 39,121 | | | | 37,020 | | | | | 46,230 | | | | 49,400 | | | |
| |
| |
| | | $ | 232,365 | | | $ | 195,459 | | | | $ | 171,333 | | | $ | 149,800 | | | | $ | 162,532 | | | $ | 143,045 | | | | $ | 42,271 | | | $ | 39,121 | | | | $ | 62,774 | | | $ | 46,230 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | (69 | ) | | $ | (82 | ) | | | $ | 24 | | | $ | 31 | | | | $ | (65 | ) | | $ | (28 | ) | | | $ | 22 | | | $ | (17 | ) | | | $ | 34 | | | $ | (17 | ) | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 97
| |
| Statements of Changes in Net Assets | continued, all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Oregon
| | | | | | | | | | | |
| | | Intermediate
| | | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 5,287 | | | $ | 4,843 | | | | $ | 5,169 | | | $ | 4,528 | | | | $ | 22,109 | | | $ | 21,396 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 528 | | | | (498 | ) | | | | 2,406 | | | | 34 | | | | | 801 | | | | (5,558 | ) | | |
| Futures contracts | | | (111 | ) | | | (324 | ) | | | | — | | | | (2,092 | ) | | | | — | | | | (676 | ) | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments | | | 4,379 | | | | 1,808 | | | | | 2,992 | | | | 2,012 | | | | | 41,451 | | | | (24,517 | ) | | |
| Futures contracts | | | — | | | | 3 | | | | | — | | | | 70 | | | | | — | | | | — | | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | 10,083 | | | | 5,832 | | | | | 10,567 | | | | 4,552 | | | | | 64,361 | | | | (9,355 | ) | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (719 | ) | | | (256 | ) | | | | (116 | ) | | | (68 | ) | | | | (1,996 | ) | | | (1,662 | ) | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | | | (193 | ) | | | (138 | ) | | |
| Class Y | | | (4,596 | ) | | | (4,645 | ) | | | | (5,052 | ) | | | (4,419 | ) | | | | (20,293 | ) | | | (19,833 | ) | | |
| Net realized gain on investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (51 | ) | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (5 | ) | | |
| Class Y | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (587 | ) | | |
| |
| |
| Total distributions | | | (5,315 | ) | | | (4,901 | ) | | | | (5,168 | ) | | | (4,487 | ) | | | | (22,482 | ) | | | (22,276 | ) | | |
| |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 20,541 | | | | 6,281 | | | | | 4,089 | | | | 1,472 | | | | | 9,585 | | | | 6,423 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | 6,036 | | | | — | | | |
| Reinvestment of distributions | | | 542 | | | | 141 | | | | | 56 | | | | 49 | | | | | 1,270 | | | | 1,203 | | | |
| Payments for redemptions | | | (1,554 | ) | | | (1,497 | ) | | | | (486 | ) | | | (435 | ) | | | | (9,849 | ) | | | (5,718 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | 19,529 | | | | 4,925 | | | | | 3,659 | | | | 1,086 | | | | | 7,042 | | | | 1,908 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | — | | | | — | | | | | — | | | | — | | | | | 1,269 | | | | 967 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | 1,500 | | | | — | | | |
| Reinvestment of distributions | | | — | | | | — | | | | | — | | | | — | | | | | 101 | | | | 68 | | | |
| Payments for redemptions (note 3) | | | — | | | | — | | | | | — | | | | — | | | | | (990 | ) | | | (550 | ) | | |
| |
| |
| Increase in net assets from Class C transactions | | | — | | | | — | | | | | — | | | | — | | | | | 1,880 | | | | 485 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 45,505 | | | | 25,178 | | | | | 256,228 | | | | 99,972 | | | | | 90,171 | | | | 98,620 | | | |
| Fund merger (note 8) | | | — | | | | — | | | | | — | | | | — | | | | | 13,894 | | | | — | | | |
| Reinvestment of distributions | | | 103 | | | | 87 | | | | | 325 | | | | 216 | | | | | 891 | | | | 749 | | | |
| Payments for redemptions | | | (35,968 | ) | | | (26,966 | ) | | | | (129,986 | ) | | | (65,306 | ) | | | | (79,723 | ) | | | (137,800 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | 9,640 | | | | (1,701 | ) | | | | 126,567 | | | | 34,882 | | | | | 25,233 | | | | (38,431 | ) | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | 29,169 | | | | 3,224 | | | | | 130,226 | | | | 35,968 | | | | | 34,155 | | | | (36,038 | ) | | |
| |
| |
| Total increase (decrease) in net assets | | | 33,937 | | | | 4,155 | | | | | 135,625 | | | | 36,033 | | | | | 76,034 | | | | (67,669 | ) | | |
Net assets at beginning of period | | | 130,922 | | | | 126,767 | | | | | 182,326 | | | | 146,293 | | | | | 419,766 | | | | 487,435 | | | |
| |
| |
Net assets at end of period | | $ | 164,859 | | | $ | 130,922 | | | | $ | 317,951 | | | $ | 182,326 | | | | $ | 495,800 | | | $ | 419,766 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income at end of period | | $ | (29 | ) | | $ | (1 | ) | | | $ | (6 | ) | | $ | (7 | ) | | | $ | (391 | ) | | $ | (9 | ) | | |
| |
| |
The accompanying notes are an integral part of the financial statements.
98 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 99
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 | | |
| |
| California Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 10.27 | | | | $ | 0.47 | | | | $ | 0.63 | | | | $ | 1.10 | | | | $ | (0.46 | ) | | | $ | (0.03 | ) | | | $ | (0.49 | ) | | | $ | 10.88 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 10.28 | | | | $ | 0.41 | | | | $ | 0.64 | | | | $ | 1.05 | | | | $ | (0.41 | ) | | | $ | (0.03 | ) | | | $ | (0.44 | ) | | | $ | 10.89 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 10.27 | | | | $ | 0.48 | | | | $ | 0.64 | | | | $ | 1.12 | | | | $ | (0.48 | ) | | | $ | (0.03 | ) | | | $ | (0.51 | ) | | | $ | 10.88 | | | |
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 | | | |
| |
| |
| Colorado Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.60 | | | | $ | 0.43 | | | | $ | 0.60 | | | | $ | 1.03 | | | | $ | (0.42 | ) | | | $ | (0.09 | ) | | | $ | (0.51 | ) | | | $ | 10.12 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.57 | | | | $ | 0.38 | | | | $ | 0.61 | | | | $ | 0.99 | | | | $ | (0.38 | ) | | | $ | (0.09 | ) | | | $ | (0.47 | ) | | | $ | 10.09 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.62 | | | | $ | 0.45 | | | | $ | 0.61 | | | | $ | 1.06 | | | | $ | (0.45 | ) | | | $ | (0.09 | ) | | | $ | (0.54 | ) | | | $ | 10.14 | | | |
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 | | | |
| |
| |
| | |
| | 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.
100 FIRST AMERICAN FUNDS 2010 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.89 | % | | | $ | 17,315 | | | | | 0.65 | % | | | | 4.36 | % | | | | 1.18 | % | | | | 3.83 | % | | | | 16 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.33 | % | | | $ | 4,674 | | | | | 1.15 | % | | | | 3.86 | % | | | | 1.58 | % | | | | 3.43 | % | | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11.06 | % | | | $ | 81,609 | | | | | 0.50 | % | | | | 4.51 | % | | | | 0.93 | % | | | | 4.08 | % | | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.91 | % | | | $ | 10,811 | | | | | 0.75 | % | | | | 4.23 | % | | | | 1.29 | % | | | | 3.69 | % | | | | 25 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.51 | % | | | $ | 3,172 | | | | | 1.15 | % | | | | 3.83 | % | | | | 1.69 | % | | | | 3.29 | % | | | | 25 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11.16 | % | | | $ | 49,244 | | | | | 0.50 | % | | | | 4.48 | % | | | | 1.04 | % | | | | 3.94 | % | | | | 25 | % | | |
| | | | (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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 101
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 | | |
| |
| Intermediate Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 10.46 | | | | $ | 0.43 | | | | $ | 0.44 | | | | $ | 0.87 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 10.90 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20104 | | $ | 10.76 | | | | $ | 0.25 | | | | $ | 0.18 | | | | $ | 0.43 | | | | $ | (0.25 | ) | | | $ | — | | | | $ | (0.25 | ) | | | $ | 10.94 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 10.43 | | | | $ | 0.44 | | | | $ | 0.44 | | | | $ | 0.88 | | | | $ | (0.44 | ) | | | $ | — | | | | $ | (0.44 | ) | | | $ | 10.87 | | | |
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 | | | |
| |
| |
| Minnesota Intermediate Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.67 | | | | $ | 0.36 | | | | $ | 0.46 | | | | $ | 0.82 | | | | $ | (0.36 | ) | | | $ | (0.01 | ) | | | $ | (0.37 | ) | | | $ | 10.12 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20104 | | $ | 9.94 | | | | $ | 0.21 | | | | $ | 0.20 | | | | $ | 0.41 | | | | $ | (0.20 | ) | | | $ | (0.01 | ) | | | $ | (0.21 | ) | | | $ | 10.14 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.62 | | | | $ | 0.36 | | | | $ | 0.45 | | | | $ | 0.81 | | | | $ | (0.36 | ) | | | $ | (0.01 | ) | | | $ | (0.37 | ) | | | $ | 10.06 | | | |
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 | | | |
| |
| |
| | |
| | 1 | For the period July 1 to June 30 in the 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 year indicated. |
| |
| | 4 | Commenced operations on October 28, 2009. All ratios for the period October 28, 2009 to June 30, 2010 have been annualized, except total return and portfolio turnover. |
| |
| | 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.
102 FIRST AMERICAN FUNDS 2010 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
| | |
| | | Return5 | | | Period (000) | | | Net Assets | | | Net Assets | | | Waivers) | | | Waivers) | | | Rate | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.42 | % | | | $ | 59,606 | | | | | 0.75 | % | | | | 4.01 | % | | | | 1.02 | % | | | | 3.74 | % | | | | 10 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.05 | % | | | $ | 1,484 | | | | | 1.35 | % | | | | 3.44 | % | | | | 1.42 | % | | | | 3.37 | % | | | | 10 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.50 | % | | | $ | 716,452 | | | | | 0.70 | % | | | | 4.05 | % | | | | 0.77 | % | | | | 3.98 | % | | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.51 | % | | | $ | 34,957 | | | | | 0.75 | % | | | | 3.61 | % | | | | 1.08 | % | | | | 3.28 | % | | | | 9 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.15 | % | | | $ | 3,965 | | | | | 1.35 | % | | | | 3.00 | % | | | | 1.48 | % | | | | 2.87 | % | | | | 9 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.50 | % | | | $ | 193,443 | | | | | 0.70 | % | | | | 3.66 | % | | | | 0.83 | % | | | | 3.53 | % | | | | 9 | % | | |
| | | | 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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 103
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 Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.98 | | | | $ | 0.41 | | | | $ | 0.89 | | | | $ | 1.30 | | | | $ | (0.41 | ) | | | $ | — | | | | $ | (0.41 | ) | | | $ | 10.87 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.94 | | | | $ | 0.36 | | | | $ | 0.88 | | | | $ | 1.24 | | | | $ | (0.36 | ) | | | $ | — | | | | $ | (0.36 | ) | | | $ | 10.82 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.97 | | | | $ | 0.42 | | | | $ | 0.90 | | | | $ | 1.32 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 10.86 | | | |
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 | | | |
| |
| |
| Missouri Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 11.11 | | | | $ | 0.48 | | | | $ | 0.66 | | | | $ | 1.14 | | | | $ | (0.48 | ) | | | $ | (0.09 | ) | | | $ | (0.57 | ) | | | $ | 11.68 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 11.08 | | | | $ | 0.43 | | | | $ | 0.66 | | | | $ | 1.09 | | | | $ | (0.43 | ) | | | $ | (0.09 | ) | | | $ | (0.52 | ) | | | $ | 11.65 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 11.12 | | | | $ | 0.50 | | | | $ | 0.66 | | | | $ | 1.16 | | | | $ | (0.50 | ) | | | $ | (0.09 | ) | | | $ | (0.59 | ) | | | $ | 11.69 | | | |
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 | | | |
| |
| |
| | |
| | 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.
104 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Ratio of Net
| | | | | |
| | | | | | | | | | | | | | | Ratio of
| | | Investment
| | | | | |
| | | | | | | | | | | | Ratio of Net
| | | Expenses
| | | Income to
| | | | | |
| | | | | | | | | Ratio of
| | | Investment
| | | to Average
| | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 13.19 | % | | | $ | 91,922 | | | | | 0.85 | % | | | | 3.86 | % | | | | 1.11 | % | | | | 3.60 | % | | | | 34 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 12.58 | % | | | $ | 26,772 | | | | | 1.35 | % | | | | 3.35 | % | | | | 1.51 | % | | | | 3.19 | % | | | | 34 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 13.37 | % | | | $ | 52,639 | | | | | 0.70 | % | | | | 4.00 | % | | | | 0.86 | % | | | | 3.84 | % | | | | 34 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.41 | % | | | $ | 23,830 | | | | | 0.85 | % | | | | 4.14 | % | | | | 1.12 | % | | | | 3.87 | % | | | | 15 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.90 | % | | | $ | 1,653 | | | | | 1.35 | % | | | | 3.62 | % | | | | 1.52 | % | | | | 3.45 | % | | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.57 | % | | | $ | 137,049 | | | | | 0.70 | % | | | | 4.29 | % | | | | 0.87 | % | | | | 4.12 | % | | | | 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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 105
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 | | |
| |
| Nebraska Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.84 | | | | $ | 0.41 | | | | $ | 0.49 | | | | $ | 0.90 | | | | $ | (0.40 | ) | | | $ | — | | | | $ | (0.40 | ) | | | $ | 10.34 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.76 | | | | $ | 0.38 | | | | $ | 0.48 | | | | $ | 0.86 | | | | $ | (0.36 | ) | | | $ | — | | | | $ | (0.36 | ) | | | $ | 10.26 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.83 | | | | $ | 0.44 | | | | $ | 0.50 | | | | $ | 0.94 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 10.34 | | | |
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 | | | |
| |
| |
| Ohio Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.90 | | | | $ | 0.38 | | | | $ | 0.51 | | | | $ | 0.89 | | | | $ | (0.37 | ) | | | $ | — | | | | $ | (0.37 | ) | | | $ | 10.42 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.76 | | | | $ | 0.35 | | | | $ | 0.49 | | | | $ | 0.84 | | | | $ | (0.33 | ) | | | $ | — | | | | $ | (0.33 | ) | | | $ | 10.27 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.90 | | | | $ | 0.41 | | | | $ | 0.51 | | | | $ | 0.92 | | | | $ | (0.40 | ) | | | $ | — | | | | $ | (0.40 | ) | | | $ | 10.42 | | | |
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 | | | |
| |
| |
| Oregon Intermediate Tax Free Fund |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.77 | | | | $ | 0.35 | | | | $ | 0.33 | | | | $ | 0.68 | | | | $ | (0.34 | ) | | | $ | — | | | | $ | (0.34 | ) | | | $ | 10.11 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.77 | | | | $ | 0.35 | | | | $ | 0.35 | | | | $ | 0.70 | | | | $ | (0.36 | ) | | | $ | — | | | | $ | (0.36 | ) | | | $ | 10.11 | | | |
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 | | | |
| |
| |
| | |
| | 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.
106 FIRST AMERICAN FUNDS 2010 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.26 | % | | | $ | 6,333 | | | | | 0.75 | % | | | | 4.01 | % | | | | 1.46 | % | | | | 3.30 | % | | | | 18 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.91 | % | | | $ | 4,181 | | | | | 1.15 | % | | | | 3.62 | % | | | | 1.86 | % | | | | 2.91 | % | | | | 18 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.65 | % | | | $ | 31,757 | | | | | 0.50 | % | | | | 4.26 | % | | | | 1.21 | % | | | | 3.55 | % | | | | 18 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.12 | % | | | $ | 1,899 | | | | | 0.75 | % | | | | 3.72 | % | | | | 1.34 | % | | | | 3.13 | % | | | | 14 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 8.72 | % | | | $ | 1,347 | | | | | 1.15 | % | | | | 3.34 | % | | | | 1.74 | % | | | | 2.75 | % | | | | 14 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.39 | % | | | $ | 59,528 | | | | | 0.50 | % | | | | 3.97 | % | | | | 1.09 | % | | | | 3.38 | % | | | | 14 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 7.05 | % | | | $ | 31,043 | | | | | 0.85 | % | | | | 3.37 | % | | | | 1.10 | % | | | | 3.12 | % | | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 7.21 | % | | | $ | 133,816 | | | | | 0.70 | % | | | | 3.52 | % | | | | 0.85 | % | | | | 3.37 | % | | | | 19 | % | | |
| | | | 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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 107
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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.74 | | | | $ | 0.20 | | | | $ | 0.22 | | | | $ | 0.42 | | | | $ | (0.18 | ) | | | $ | — | | | | $ | (0.18 | ) | | | $ | 9.98 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.74 | | | | $ | 0.20 | | | | $ | 0.24 | | | | $ | 0.44 | | | | $ | (0.20 | ) | | | $ | — | | | | $ | (0.20 | ) | | | $ | 9.98 | | | |
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 | | | |
| |
| |
Tax Free Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.65 | | | | $ | 0.49 | | | | $ | 0.97 | | | | $ | 1.46 | | | | $ | (0.50 | ) | | | $ | — | | | | $ | (0.50 | ) | | | $ | 10.61 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.61 | | | | $ | 0.43 | | | | $ | 0.96 | | | | $ | 1.39 | | | | $ | (0.44 | ) | | | $ | — | | | | $ | (0.44 | ) | | | $ | 10.56 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20101 | | $ | 9.66 | | | | $ | 0.49 | | | | $ | 0.97 | | | | $ | 1.46 | | | | $ | (0.50 | ) | | | $ | — | | | | $ | (0.50 | ) | | | $ | 10.62 | | | |
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 | | | |
| |
| |
| | |
| | 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.
108 FIRST AMERICAN FUNDS 2010 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.38 | % | | | $ | 7,168 | | | | | 0.74 | % | | | | 1.81 | % | | | | 1.06 | % | | | | 1.49 | % | | | | 45 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4.53 | % | | | $ | 310,783 | | | | | 0.59 | % | | | | 1.96 | % | | | | 0.81 | % | | | | 1.74 | % | | | | 45 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 15.32 | % | | | $ | 45,885 | | | | | 0.75 | % | | | | 4.70 | % | | | | 1.04 | % | | | | 4.41 | % | | | | 25 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 14.60 | % | | | $ | 5,698 | | | | | 1.35 | % | | | | 4.09 | % | | | | 1.44 | % | | | | 4.00 | % | | | | 25 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 15.36 | % | | | $ | 444,217 | | | | | 0.70 | % | | | | 4.77 | % | | | | 0.79 | % | | | | 4.68 | % | | | | 25 | % | | |
| | | | (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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 109
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
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, 2010, FAIF offered 38 funds, including the funds listed above. Effective at the close of business on January 29, 2010, Arizona Tax Free Fund merged with Tax Free Fund. Tax Free Fund is the accounting survivor. 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. 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, Class C, and Class Y shares. Class A shares of 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 C shares are not offered by Oregon Intermediate Tax Free Fund and Short Tax Free Fund. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.
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 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’s 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 fair 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 internally 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 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
110 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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 fair value pricing. As of June 30, 2010, the funds held no internally fair valued securities.
Generally accepted accounting principles (“GAAP”) require disclosures regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or technique. These principles establish a three-tier fair value hierarchy for inputs used in measuring fair value. Fair value inputs are summarized in the three broad levels listed below:
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.
As of June 30, 2010, each fund’s investments were classified as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
California Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 67,015 | | | $ | — | | | $ | 67,015 | |
| General Obligation Bonds | | | — | | | | 28,096 | | | | — | | | | 28,096 | |
| Certificates of Participation | | | — | | | | 4,523 | | | | — | | | | 4,523 | |
| Short-Term Investment | | | 2,315 | | | | — | | | | — | | | | 2,315 | |
| |
| |
| Total Investments | | $ | 2,315 | | | $ | 99,634 | | | $ | — | | | $ | 101,949 | |
| |
| |
Colorado Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 46,615 | | | $ | — | | | $ | 46,615 | |
| General Obligation Bonds | | | — | | | | 9,493 | | | | — | | | | 9,493 | |
| Certificates of Participation | | | — | | | | 5,562 | | | | — | | | | 5,562 | |
| Short-Term Investments | | | 2,342 | | | | — | | | | — | | | | 2,342 | |
| |
| |
| Total Investments | | $ | 2,342 | | | $ | 61,670 | | | $ | — | | | $ | 64,012 | |
| |
| |
Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 514,901 | | | $ | — | | | $ | 514,901 | |
| General Obligation Bonds | | | — | | | | 218,258 | | | | — | | | | 218,258 | |
| Certificates of Participation | | | — | | | | 17,388 | | | | — | | | | 17,388 | |
| Short-Term Investments | | | 11,611 | | | | 10,220 | | | | — | | | | 21,831 | |
| |
| |
| Total Investments | | $ | 11,611 | | | $ | 760,767 | | | $ | — | | | $ | 772,378 | |
| |
| |
Minnesota Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 157,761 | | | $ | — | | | $ | 157,761 | |
| General Obligation Bonds | | | — | | | | 61,277 | | | | — | | | | 61,277 | |
| Certificates of Participation | | | — | | | | 5,298 | | | | — | | | | 5,298 | |
| Short-Term Investments | | | 6,854 | | | | 2,510 | | | | — | | | | 9,364 | |
| |
| |
| Total Investments | | $ | 6,854 | | | $ | 226,846 | | | $ | — | | | $ | 233,700 | |
| |
| |
Minnesota Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 136,415 | | | $ | — | | | $ | 136,415 | |
| General Obligation Bonds | | | — | | | | 18,384 | | | | — | | | | 18,384 | |
| Certificate of Participation | | | — | | | | 2,173 | | | | — | | | | 2,173 | |
| Short-Term Investments | | | 17,306 | | | | 200 | | | | — | | | | 17,506 | |
| |
| |
| Total Investments | | $ | 17,306 | | | $ | 157,172 | | | $ | — | | | $ | 174,478 | |
| |
| |
Missouri Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 127,421 | | | $ | — | | | $ | 127,421 | |
| General Obligation Bonds | | | — | | | | 16,096 | | | | — | | | | 16,096 | |
| Certificates of Participation | | | — | | | | 9,683 | | | | — | | | | 9,683 | |
| Short-Term Investment | | | 8,297 | | | | — | | | | — | | | | 8,297 | |
| |
| |
| Total Investments | | $ | 8,297 | | | $ | 153,200 | | | $ | — | | | $ | 161,497 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 111
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Nebraska Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 31,371 | | | $ | — | | | $ | 31,371 | |
| General Obligation Bonds | | | — | | | | 8,823 | | | | — | | | | 8,823 | |
| Short-Term Investment | | | 1,531 | | | | — | | | | — | | | | 1,531 | |
| |
| |
| Total Investments | | $ | 1,531 | | | $ | 40,194 | | | $ | — | | | $ | 41,725 | |
| |
| |
Ohio Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 42,127 | | | $ | — | | | $ | 42,127 | |
| General Obligation Bonds | | | — | | | | 17,944 | | | | — | | | | 17,944 | |
| Certificates of Participation | | | — | | | | 1,002 | | | | — | | | | 1,002 | |
| Short-Term Investment | | | 2,194 | | | | — | | | | — | | | | 2,194 | |
| |
| |
| Total Investments | | $ | 2,194 | | | $ | 61,073 | | | $ | — | | | $ | 63,267 | |
| |
| |
Oregon Intermediate Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 72,920 | | | $ | — | | | $ | 72,920 | |
| General Obligation Bonds | | | — | | | | 76,656 | | | | — | | | | 76,656 | |
| Certificates of Participation | | | — | | | | 5,505 | | | | — | | | | 5,505 | |
| Short-Term Investments | | | 8,554 | | | | 60 | | | | — | | | | 8,614 | |
| |
| |
| Total Investments | | $ | 8,554 | | | $ | 155,141 | | | $ | — | | | $ | 163,695 | |
| |
| |
Short Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 170,791 | | | $ | — | | | $ | 170,791 | |
| General Obligation Bonds | | | — | | | | 34,604 | | | | — | | | | 34,604 | |
| Certificate of Participation | | | — | | | | 3,423 | | | | — | | | | 3,423 | |
| Short-Term Investments | | | 22,017 | | | | 85,455 | | | | — | | | | 107,472 | |
| |
| |
| Total Investments | | $ | 22,017 | | | $ | 294,273 | | | $ | — | | | $ | 316,290 | |
| |
| |
Tax Free Fund | | | | | | | | | | | | | | | | |
| Revenue Bonds | | $ | — | | | $ | 399,286 | | | $ | — | | | $ | 399,286 | |
| General Obligation Bonds | | | — | | | | 52,861 | | | | — | | | | 52,861 | |
| Certificates of Participation | | | — | | | | 3,780 | | | | — | | | | 3,780 | |
| Investment Company | | | 10,010 | | | | — | | | | — | | | | 10,010 | |
| Short-Term Investment | | | 24,664 | | | | — | | | | — | | | | 24,664 | |
| |
| |
| Total Investments | | $ | 34,674 | | | $ | 455,927 | | | $ | — | | | $ | 490,601 | |
| |
| |
Refer to each fund’s Schedule of Investments for further sector breakout.
During the fiscal year ended June 30, 2010, the funds recognized no significant transfers between valuation levels.
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, 2010, 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 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.
112 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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 | | $ | (87 | ) | | $ | — | | | $ | 87 | |
| Colorado Tax Free Fund | | | (131 | ) | | | — | | | | 131 | |
| Intermediate Tax Free Fund | | | (372 | ) | | | — | | | | 372 | |
| Minnesota Intermediate Tax Free Fund | | | (26 | ) | | | — | | | | 26 | |
| Missouri Tax Free Fund | | | (260 | ) | | | — | | | | 260 | |
| Tax Free Fund | | | (37 | ) | | | (9 | ) | | | 46 | |
| |
| |
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, 2010 and June 30, 2009 (adjusted by dividends payable as of June 30, 2010 and June 30, 2009) were as follows:
| | | | | | | | | | | | | | | | | |
| | | June 30, 2010 | |
| | |
| | | Tax Exempt
| | | Ordinary
| | | Long Term
| | | | |
| Fund | | Income | | | Income | | | Gain | | | Total | |
| | |
| California Tax Free Fund | | $ | 4,311 | | | $ | 88 | | | $ | 266 | | | $ | 4,665 | |
| Colorado Tax Free Fund | | | 2,802 | | | | 29 | | | | 583 | | | | 3,414 | |
| Intermediate Tax Free Fund | | | 29,070 | | | | 626 | | | | — | | | | 29,696 | |
| Minnesota Intermediate Tax Free Fund | | | 7,780 | | | | 36 | | | | 104 | | | | 7,920 | |
| Minnesota Tax Free Fund | | | 6,226 | | | | 73 | | | | 10 | | | | 6,309 | |
| Missouri Tax Free Fund | | | 6,465 | | | | 7 | | | | 1,094 | | | | 7,566 | |
| Nebraska Tax Free Fund | | | 1,703 | | | | 7 | | | | — | | | | 1,710 | |
| Ohio Tax Free Fund | | | 2,104 | | | | — | | | | — | | | | 2,104 | |
| Oregon Intermediate Tax Free Fund | | | 5,244 | | | | 95 | | | | — | | | | 5,339 | |
| Short Tax Free Fund | | | 5,064 | | | | 18 | | | | — | | | | 5,082 | |
| Tax Free Fund | | | 21,875 | | | | 526 | | | | — | | | | 22,401 | |
| |
| |
The funds designated as long term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the fund’s related to net capital gains to zero for tax year ended June 30, 2010.
| | | | | | | | | | | | | | | | | |
| | | June 30, 2009 | |
| | |
| | | Tax Exempt
| | | Ordinary
| | | Long Term
| | | | |
| Fund | | Income | | | Income | | | Gain | | | Total | |
| | |
| 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 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 113
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
As of June 30, 2010, the funds’ most recently completed fiscal year-end; the components of accumulated earnings (deficit) on a tax-basis were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Accumulated
| | | | | | | |
| | | Undistributed
| | | Undistributed
| | | Undistributed
| | | Capital and
| | | | | | Total
| |
| | | Ordinary
| | | Tax Exempt
| | | Long Term
| | | Post-October
| | | Unrealized
| | | Accumulated
| |
| Fund | | Income | | | Income | | | Capital Gains | | | Losses | | | Appreciation | | | Earnings | |
| | |
| California Tax Free Fund | | $ | 82 | | | $ | 288 | | | $ | 216 | | | $ | — | | | $ | 2,084 | | | $ | 2,670 | |
| Colorado Tax Free Fund | | | 2 | | | | 181 | | | | 454 | | | | — | | | | 1,889 | | | | 2,526 | |
| Intermediate Tax Free Fund | | | 247 | | | | 1,794 | | | | 489 | | | | — | | | | 34,801 | | | | 37,331 | |
| Minnesota Intermediate Tax Free Fund | | | 15 | | | | 512 | | | | — | | | | — | | | | 9,473 | | | | 10,000 | |
| Minnesota Tax Free Fund | | | 41 | | | | 270 | | | | — | | | | (65 | ) | | | 3,195 | | | | 3,441 | |
| Missouri Tax Free Fund | | | 3 | | | | 420 | | | | 166 | | | | — | | | | 1,451 | | | | 2,040 | |
| Nebraska Tax Free Fund | | | 13 | | | | 129 | | | | — | | | | (394 | ) | | | 1,174 | | | | 922 | |
| Ohio Tax Free Fund | | | — | | | | 226 | | | | — | | | | (459 | ) | | | 1,715 | | | | 1,482 | |
| Oregon Intermediate Tax Free Fund | | | 79 | | | | 277 | | | | — | | | | (141 | ) | | | 6,309 | | | | 6,524 | |
| Short Tax Free Fund | | | 6 | | | | 443 | | | | — | | | | (1,250 | ) | | | 4,865 | | | | 4,064 | |
| Tax Free Fund | | | 331 | | | | 1,057 | | | | — | | | | (6,429 | ) | | | 5,798 | | | | 757 | |
| |
| |
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, 2010, 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 | | 2011 | | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | Total | |
| | |
| Minnesota Tax Free Fund | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 65 | | | $ | 65 | |
| Nebraska Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | 25 | | | | 333 | | | | 36 | | | | 394 | |
| Ohio Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 225 | | | | 205 | | | | 430 | |
| Oregon Intermediate Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 141 | | | | — | | | | 141 | |
| Short Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | 937 | | | | — | | | | 312 | | | | — | | | | 1,249 | |
| Tax Free Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 6,429 | | | | 6,429 | |
| |
| |
Certain funds incurred a loss for tax purposes for the period from November 1, 2009 to June 30, 2010. 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, 2011. The following funds had deferred losses:
| | | | | |
| Fund | | Amount | |
| | |
| Ohio Tax Free Fund | | $ | 30 | |
| Short Tax Free Fund | | | 1 | |
| |
| |
DERIVATIVES – The funds may invest in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. The funds’ investment objectives allow the funds to enter into various types of derivative contracts, including, but not limited to, futures contracts. Derivatives may contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and the potential for market movements which may expose the funds to gains or losses in excess of the amounts shown on the Statements of Assets and Liabilities.
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 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 funds’ Statements of Assets and Liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year
114 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
will be recognized as capital gains (losses) for federal income tax purposes.
During the fiscal year ended June 30, 2010, Oregon Intermediate Tax Free Fund held interest rate futures contracts. The gains or losses recognized on these interest rate futures contracts are disclosed in the fund’s Statement of Operations. For the fiscal year ended June 30, 2010, the quarterly average gross notional amount for long and short contracts for the fund was $0. As of June 30, 2010, 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, 2010, the following funds held outstanding commitments to purchase securities on a when-issued or forward-commitment basis:
| | | | | |
| Fund | | Cost | |
| | |
| Colorado Tax Free Fund | | $ | 986 | |
| Intermediate Tax Free Fund | | | 3,396 | |
| Minnesota Intermediate Tax Free Fund | | | 3,369 | |
| Minnesota Tax Free Fund | | | 4,279 | |
| Missouri Tax Free Fund | | | 920 | |
| |
| |
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 total 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, 2010, Intermediate Tax Free Fund and Short Tax Free Fund held investments in illiquid securities with a total fair value of $796 and $398, respectively, or 0.1% and 0.1%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Intermediate Tax Free Fund | | Par | | | Acquired | | | Basis | |
| | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | $ | 1,000 | | | | 11/05 | | | $ | 993 | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | | 1,000 | | | | 11/05 | | | | 992 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Short Tax Free Fund | | Par | | | Acquired | | | Basis | |
| | |
| Illinois Finance Authority, Clare at Water Tower Project, Series A | | $ | 1,000 | | | | 11/05 | | | $ | 997 | |
| |
| |
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 may provide investment leverage. The market values of inverse floaters will generally be more volatile than those of fixed-rate, tax-exempt securities. Therefore, 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, 2010, 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. The funds did not have any interfund lending transactions during the fiscal year ended June 30, 2010.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 115
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
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.
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 October 31, 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 | | | |
| |
| California Tax Free Fund | | | 0.65 | %* | | | 1.15 | % | | | 0.50 | % | | |
| Colorado Tax Free Fund | | | 0.75 | | | | 1.15 | | | | 0.50 | | | |
Intermediate Tax Free Fund1 | | | 0.75 | * | | | 1.35 | | | | 0.70 | | | |
Minnesota Intermediate Tax Free Fund1 | | | 0.75 | * | | | 1.35 | | | | 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
| | |
| | 1 | The fund began offering Class C on October 28, 2009. |
| |
| | * | 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. Effective July 1, 2010, such administration fees are based on the aggregate average daily net assets of all open-end funds in the First American Family of Funds, other than the series of First American Strategy Funds, Inc. 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.
116 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010, 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, 2010, 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 | | $ | 47 | |
| Minnesota Intermediate Tax Free Fund | | | 28 | |
| Oregon Intermediate Tax Free Fund | | | 21 | |
| Short Tax Free Fund | | | 6 | |
| |
| |
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2010:
| | | | | |
| Fund | | Amount | |
| | |
| California Tax Free Fund | | $ | 46 | |
| Colorado Tax Free Fund | | | 16 | |
| Intermediate Tax Free Fund | | | 33 | |
| Minnesota Intermediate Tax Free Fund | | | 32 | |
| Minnesota Tax Free Fund | | | 123 | |
| Missouri Tax Free Fund | | | 52 | |
| Nebraska Tax Free Fund | | | 16 | |
| Ohio Tax Free Fund | | | 6 | |
| Oregon Intermediate Tax Free Fund | | | 19 | |
| Short Tax Free Fund | | | 5 | |
| Tax Free Fund | | | 39 | |
| |
| |
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, 2010, legal fees and expenses of $59 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, 2010, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| California Tax Free Fund | | $ | 77 | |
| Colorado Tax Free Fund | | | 15 | |
| Intermediate Tax Free Fund | | | 71 | |
| Minnesota Intermediate Tax Free Fund | | | 175 | |
| Minnesota Tax Free Fund | | | 181 | |
| Missouri Tax Free Fund | | | 85 | |
| Nebraska Tax Free Fund | | | 34 | |
| Ohio Tax Free Fund | | | 31 | |
| Oregon Intermediate Tax Free Fund | | | 185 | |
| Short Tax Free Fund | | | 7 | |
| Tax Free Fund | | | 43 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 117
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| |
| 4 > | Capital Share Transactions |
FAIF has 372 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | California
| | | | Colorado
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 269 | | | | 417 | | | | | 102 | | | | 59 | | | | | 2,980 | | | | 1,244 | | | |
| Shares issued from merger | | | — | | | | 459 | | | | | — | | | | 614 | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 44 | | | | 39 | | | | | 44 | | | | 34 | | | | | 115 | | | | 87 | | | |
| Shares redeemed | | | (320 | ) | | | (444 | ) | | | | (232 | ) | | | (118 | ) | | | | (975 | ) | | | (604 | ) | | |
| |
| |
Total Class A transactions | | | (7 | ) | | | 471 | | | | | (86 | ) | | | 589 | | | | | 2,120 | | | | 727 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 148 | | | | 189 | | | | | 55 | | | | 63 | | | | | 151 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 11 | | | | 8 | | | | | 10 | | | | 12 | | | | | 1 | | | | — | | | |
| Shares redeemed | | | (125 | ) | | | (33 | ) | | | | (53 | ) | | | (52 | ) | | | | (16 | ) | | | — | | | |
| |
| |
Total Class C transactions | | | 34 | | | | 164 | | | | | 12 | | | | 23 | | | | | 136 | | | | — | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,473 | | | | 1,184 | | | | | 988 | | | | 264 | | | | | 16,900 | | | | 16,958 | | | |
| Shares issued from merger | | | — | | | | 5,217 | | | | | — | | | | 4,418 | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 9 | | | | 6 | | | | | 19 | | | | 10 | | | | | 206 | | | | 258 | | | |
| Shares redeemed | | | (1,541 | ) | | | (1,693 | ) | | | | (1,507 | ) | | | (879 | ) | | | | (12,763 | ) | | | (15,803 | ) | | |
| |
| |
Total Class Y transactions | | | (59 | ) | | | 4,714 | | | | | (500 | ) | | | 3,813 | | | | | 4,343 | | | | 1,413 | | | |
| |
| |
Net increase (decrease) in capital shares | | | (32 | ) | | | 5,349 | | | | | (574 | ) | | | 4,425 | | | | | 6,599 | | | | 2,140 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Minnesota
| | | | | | | | | | | |
| | | Intermediate
| | | | Minnesota
| | | | Missouri
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,407 | | | | 1,026 | | | | | 1,218 | | | | 1,152 | | | | | 335 | | | | 242 | | | |
| Shares issued in lieu of cash distributions | | | 76 | | | | 72 | | | | | 207 | | | | 283 | | | | | 56 | | | | 47 | | | |
| Shares redeemed | | | (409 | ) | | | (982 | ) | | | | (1,708 | ) | | | (2,438 | ) | | | | (401 | ) | | | (270 | ) | | |
| |
| |
Total Class A transactions | | | 1,074 | | | | 116 | | | | | (283 | ) | | | (1,003 | ) | | | | (10 | ) | | | 19 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 424 | | | | — | | | | | 638 | | | | 448 | | | | | 90 | | | | 31 | | | |
| Shares issued in lieu of cash distributions | | | 3 | | | | — | | | | | 58 | | | | 60 | | | | | 3 | | | | 1 | | | |
| Shares redeemed | | | (36 | ) | | | — | | | | | (284 | ) | | | (368 | ) | | | | (19 | ) | | | — | | | |
| |
| |
Total Class C transactions | | | 391 | | | | — | | | | | 412 | | | | 140 | | | | | 74 | | | | 32 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 4,529 | | | | 4,173 | | | | | 1,443 | | | | 1,806 | | | | | 3,576 | | | | 2,680 | | | |
| Shares issued in lieu of cash distributions | | | 17 | | | | 29 | | | | | 7 | | | | 10 | | | | | 22 | | | | 18 | | | |
| Shares redeemed | | | (3,247 | ) | | | (4,400 | ) | | | | (824 | ) | | | (1,892 | ) | | | | (2,625 | ) | | | (4,026 | ) | | |
| |
| |
Total Class Y transactions | | | 1,299 | | | | (198 | ) | | | | 626 | | | | (76 | ) | | | | 973 | | | | (1,328 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 2,764 | | | | (82 | ) | | | | 755 | | | | (939 | ) | | | | 1,037 | | | | (1,277 | ) | | |
| |
| |
118 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Oregon
| | | |
| | | Nebraska
| | | | Ohio
| | | | Intermediate
| | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 156 | | | | 129 | | | | | 107 | | | | 44 | | | | | 2,048 | | | | 645 | | | |
| Shares issued in lieu of cash distributions | | | 15 | | | | 17 | | | | | 5 | | | | 3 | | | | | 54 | | | | 14 | | | |
| Shares redeemed | | | (153 | ) | | | (117 | ) | | | | (36 | ) | | | (4 | ) | | | | (154 | ) | | | (154 | ) | | |
| |
| |
Total Class A transactions | | | 18 | | | | 29 | | | | | 76 | | | | 43 | | | | | 1,948 | | | | 505 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 155 | | | | 87 | | | | | 91 | | | | 27 | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 7 | | | | 5 | | | | | 1 | | | | 1 | | | | | — | | | | — | | | |
| Shares redeemed | | | (20 | ) | | | (7 | ) | | | | (2 | ) | | | (13 | ) | | | | — | | | | — | | | |
| |
| |
Total Class C transactions | | | 142 | | | | 85 | | | | | 90 | | | | 15 | | | | | — | | | | — | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 406 | | | | 732 | | | | | 1,797 | | | | 624 | | | | | 4,537 | | | | 2,596 | | | |
| Shares issued in lieu of cash distributions | | | 13 | | | | 9 | | | | | 19 | | | | 30 | | | | | 10 | | | | 9 | | | |
| Shares redeemed | | | (468 | ) | | | (556 | ) | | | | (625 | ) | | | (975 | ) | | | | (3,588 | ) | | | (2,804 | ) | | |
| |
| |
Total Class Y transactions | | | (49 | ) | | | 185 | | | | | 1,191 | | | | (321 | ) | | | | 959 | | | | (199 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 111 | | | | 299 | | | | | 1,357 | | | | (263 | ) | | | | 2,907 | | | | 306 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Short
| | | | | | | |
| | | Tax Free Fund | | | | Tax Free Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 414 | | | | 152 | | | | | 916 | | | | 677 | | | |
| Shares issued from merger | | | — | | | | — | | | | | 578 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 6 | | | | 5 | | | | | 122 | | | | 128 | | | |
| Shares redeemed | | | (49 | ) | | | (46 | ) | | | | (944 | ) | | | (617 | ) | | |
| |
| |
Total Class A transactions | | | 371 | | | | 111 | | | | | 672 | | | | 188 | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | — | | | | — | | | | | 123 | | | | 106 | | | |
| Shares issued from merger | | | — | | | | — | | | | | 144 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | — | | | | — | | | | | 10 | | | | 7 | | | |
| Shares redeemed | | | — | | | | — | | | | | (95 | ) | | | (59 | ) | | |
| |
| |
Total Class C transactions | | | — | | | | — | | | | | 182 | | | | 54 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 25,824 | | | | 10,407 | | | | | 8,673 | | | | 10,641 | | | |
| Shares issued from merger | | | — | | | | — | | | | | 1,328 | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 33 | | | | 22 | | | | | 86 | | | | 81 | | | |
| Shares redeemed | | | (13,089 | ) | | | (6,768 | ) | | | | (7,678 | ) | | | (14,997 | ) | | |
| |
| |
Total Class Y transactions | | | 12,768 | | | | 3,661 | | | | | 2,409 | | | | (4,275 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 13,139 | | | | 3,772 | | | | | 3,263 | | | | (4,033 | ) | | |
| |
| |
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.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 119
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| |
| 5 > | Investment Security Transactions |
During the fiscal year ended June 30, 2010, 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 | |
| | |
| California Tax Free Fund | | $ | 15,861 | | | $ | 20,301 | |
| Colorado Tax Free Fund | | | 16,177 | | | | 23,546 | |
| Intermediate Tax Free Fund | | | 143,479 | | | | 75,660 | |
| Minnesota Intermediate Tax Free Fund | | | 42,115 | | | | 17,856 | |
| Minnesota Tax Free Fund | | | 53,686 | | | | 57,754 | |
| Missouri Tax Free Fund | | | 25,377 | | | | 21,076 | |
| Nebraska Tax Free Fund | | | 7,041 | | | | 7,254 | |
| Ohio Tax Free Fund | | | 21,327 | | | | 7,466 | |
| Oregon Intermediate Tax Free Fund | | | 52,198 | | | | 27,657 | |
| Short Tax Free Fund | | | 229,430 | | | | 109,393 | |
| Tax Free Fund | | | 133,080 | * | | | 119,938 | |
| |
| |
| | |
| | * | Tax Free Fund includes $20,474 from Arizona Tax Free Fund that was acquired in a fund merger as described in Note 8. This amount was excluded for purposes of calculating the fund’s portfolio turnover rate. |
| |
| 6 > | Concentration of Credit Risk |
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, 2010, 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.
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.
120 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
As of the close of business on January 29, 2010, Tax Free Fund acquired the assets and assumed the liabilities of Arizona Tax Free Fund. Tax Free Fund was deemed to be the accounting survivor in the merger. Shareholders of Arizona Tax Free Fund approved the merger on January 22, 2010.
The merger was accomplished by tax free exchanges as detailed below:
| | | | | | | | | | | | | | | | | | | |
| Tax Free Fund | | Class A | | | Class C | | | Class Y | | | Total | | | |
| |
| Net assets of Arizona Tax Free Fund | | $ | 6,036 | | | $ | 1,500 | | | $ | 13,894 | | | $ | 21,430 | | | |
| |
| |
| Arizona Tax Free Fund shares exchanged | | | 566 | | | | 141 | | | | 1,302 | | | | 2,009 | | | |
| |
| |
| Tax Free Fund shares issued | | | 578 | | | | 144 | | | | 1,328 | | | | 2,050 | | | |
| |
| |
| Net assets of Tax Free Fund immediately before the merger | | $ | 40,838 | | | $ | 4,116 | | | $ | 415,610 | | | $ | 460,564 | | | |
| |
| |
| Net assets of Tax Free Fund immediately after the merger | | $ | 46,874 | | | $ | 5,616 | | | $ | 429,504 | | | $ | 481,994 | | | |
| |
| |
The components of Arizona Tax Free Fund’s net assets prior to adjustments for any permanent book-to-tax differences at the merger date were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Undistributed
| | | Accumulated
| | | | |
| | | Total
| | | Portfolio
| | | Net Investment
| | | Net Realized
| | | Net Unrealized
| |
| | | Net Assets | | | Capital | | | Loss | | | Loss | | | Appreciation | |
| | |
| Arizona Tax Free Fund | | $ | 21,430 | | | $ | 21,536 | | | $ | (74 | ) | | $ | (36 | ) | | $ | 4 | |
| |
| |
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 merger. Shareholders of California Intermediate Tax Free Fund and Colorado Intermediate Tax Free Fund approved their respective 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:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Undistributed
| | | Accumulated
| | | | |
| | | Total
| | | Portfolio
| | | Net Investment
| | | Net Realized
| | | Net Unrealized
| |
| Fund | | Net Assets | | | Capital | | | Income | | | Gain (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 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 121
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| |
| 9 > | New Accounting Pronouncements |
On January 21, 2010, the Financial Accounting Standards Board issued an Accounting Standard Update for Fair Value Measurements and Disclosures: Improving Disclosures about Fair Value Measurements. The update provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires the funds to disclose purchases, sales, issuances and settlements on a gross basis in the Level 3 rollforward rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2010. At this time management is evaluating the implications of the update and the impact to the financial statements.
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (the “Advisor”), entered into an agreement to sell a portion of the Advisor’s asset management business to Nuveen Investments, Inc. (the “Purchaser”). Included in the sale will be that part of the Advisor’s asset management business that advises the funds. The sale is subject to the satisfaction of customary conditions, and is currently expected to close by the end of 2010.
Under the Investment Company Act of 1940, the closing of the transaction will cause each fund’s current investment advisory agreement with the Advisor to terminate. In connection with the transaction, the funds’ Board of Directors will be asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a subsidiary of the Purchaser. If approved by the Board of Directors, each fund’s new investment advisory agreement will be submitted to the fund’s shareholders for their approval and, if approved, will take effect upon the closing of the transaction (or such later time as shareholder approval is obtained). The funds’ Board of Directors also will be asked to consider and approve new distribution agreements with Nuveen Investments, LLC. There will be no change in the funds’ investment objectives or policies as a result of the transaction.
Management has evaluated fund related events and transactions that occurred subsequent to June 30, 2010, through the date of issuance of the funds’ financial statements and determined that no additional events have occurred that require disclosure.
122 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Notice to Shareholders June 30, 2010 (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 2011 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2010, 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) | | | |
| |
| California Tax Free Fund | | | 6 | % | | | 92 | % | | | 2 | % | | | 100 | % | | |
| Colorado Tax Free Fund | | | 17 | | | | 82 | | | | 1 | | | | 100 | | | |
| Intermediate Tax Free Fund | | | 0 | | | | 98 | | | | 2 | | | | 100 | | | |
| Minnesota Intermediate Tax Free Fund | | | 1 | | | | 99 | | | | 0 | | | | 100 | | | |
| Minnesota Tax Free Fund | | | 0 | | | | 99 | | | | 1 | | | | 100 | | | |
| Missouri Tax Free Fund | | | 14 | | | | 86 | | | | 0 | | | | 100 | | | |
| Nebraska Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Ohio Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Oregon Intermediate Tax Free Fund | | | 0 | | | | 98 | | | | 2 | | | | 100 | | | |
| Short Tax Free Fund | | | 0 | | | | 100 | | | | 0 | | | | 100 | | | |
| Tax Free Fund | | | 0 | | | | 98 | | | | 2 | | | | 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 | | | | | |
| |
| California Tax Free Fund | | | 20.24 | % | | |
| Colorado Tax Free Fund | | | 5.15 | | | |
| Intermediate Tax Free Fund | | | 9.37 | | | |
| Minnesota Intermediate Tax Free Fund | | | 2.41 | | | |
| Minnesota Tax Free Fund | | | 4.95 | | | |
| Missouri Tax Free Fund | | | 0.49 | | | |
| Nebraska Tax Free Fund | | | 3.50 | | | |
| Ohio Tax Free Fund | | | 0.00 | | | |
| Oregon Intermediate Tax Free Fund | | | 13.05 | | | |
| Short Tax Free Fund | | | 1.27 | | | |
| Tax Free Fund | | | 14.81 | | | |
| |
| |
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 | | | | | |
| |
| California Tax Free Fund | | | 0 | % | | |
| Colorado Tax Free Fund | | | 0 | | | |
| Intermediate Tax Free Fund | | | 0 | | | |
| Minnesota Intermediate Tax Free Fund | | | 0 | | | |
| Minnesota Tax Free Fund | | | 0 | | | |
| Missouri Tax Free Fund | | | 0 | | | |
| 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 2010 ANNUAL REPORT 123
Notice to Shareholders June 30, 2010 (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 800.677.3863.
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 800.677.3863 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 3-4, 2010, 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 15-17, 2010, the Board concluded its consideration of and approved the Agreement through June 30, 2011.
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.
124 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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 for the one-, three-, and five-year periods ending February 28, 2010. 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.
California Tax Free Fund, Minnesota Intermediate Tax Free Fund and Missouri Tax Free Fund. For each of these Funds, the Board considered that the Fund outperformed its performance universe median for the three- and five-year periods, though it underperformed its performance universe median for the one-year period. The Board concluded that, in light of each Fund’s competitive performance over longer time periods, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Colorado Tax Free Fund. The Board considered that the Fund underperformed its performance universe median for all periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance can be attributed, in part, to the fact that the spreads between BBB and AAA municipal bonds widened to unprecedented levels in 2008, resulting in poor performance for the Fund because it had a larger exposure to lower-rated bonds than many of its peers had. In addition, the Fund had a high exposure to intermediate-term bonds relative to its peers during 2009, and these bonds underperformed longer-term bonds. The Board also took into account FAF Advisors’ assertion that the Fund has now completed a rebalancing of its portfolio and FAF Advisors’ positive outlook for the Fund. The Board concluded that, in light of the foregoing, it would be in the interest of the Fund and its shareholders to allow time to review the impact of the repositioning on the Fund and to renew the Agreement.
Intermediate Tax Free Fund, Nebraska 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 outperformed or performed competitively against the performance universe median for the one-, three- and five-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.
Ohio Tax Free Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median for the one- and three-year periods, though it underperformed its performance universe median for the five-year period. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Minnesota Tax Free Fund. The Board considered that the Fund outperformed its performance universe median for the one-year period, though it underperformed its performance universe median for the three- and the five-year periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance for longer periods was negatively impacted by its overweight position in BBB and non-rated bonds during the fourth quarter of 2007 and the first three quarters of 2008. The Board also considered FAF Advisors’ assertion that lower-rated municipal bonds have recovered in recent months, as demonstrated by the Fund’s improved performance, and that FAF Advisors has not experienced any credit issues in the Fund’s portfolio. The Board concluded that, in light of the Fund’s improved performance and FAF Advisors’ positive outlook for the Fund, 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 reviewed FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage the Funds. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. The Board compared fee and expense information for each Fund to fee and expense information for comparable funds managed by other advisors. The Board also reviewed advisory fees for other funds advised or sub-advised by FAF Advisors and for private accounts managed by FAF Advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are generally lower than the management fees charged by FAF Advisors to mutual funds, mutual 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
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 125
Notice to Shareholders June 30, 2010 (unaudited)
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:
California Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Nebraska Tax Free Fund, Ohio 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 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.
Oregon Intermediate Tax Free Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than the peer group median, and that the Fund’s total expense ratio, after waivers, was only one basis point higher than the peer group median and 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, after waivers, was higher than the peer group median. The Board took note of the fact that, on June 18, 2009 FAF Advisors began reimbursing 10 basis points of Class A share Rule 12b-1 fees and will continue such waivers through October 31, 2010. The Board considered FAF Advisors’ assertion that the waivers are likely to 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.
Short 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, after waivers, was higher than the peer group median, but within a range consistent with FAF Advisers’ pricing philosophy. The Board concluded that the Fund’s 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 investment 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.
126 FIRST AMERICAN FUNDS 2010 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-six 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; Advisor/Consultant, Future FreightTM, a logistics/supply chain company; Director, Towne Airfreight; non-profit board member; prior to retirement in 2005, served in several executive positions for United Airlines, including Vice President and Chief Operating Officer — Cargo; Independent Director, First American Fund Complex since 1997 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; Board Chair, United Educators Insurance Company | | First American Funds Complex: twelve registered investment companies, including fifty-six 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 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; Member, investment advisory committee, Sisters of the Good Shepherd | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; non-profit board member since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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 corporation engaged in strategic planning, operations management, government relations, transportation planning, and public relations; Owner, Chairman, and Chief Executive Officer, ExcensusTM, LLC, a demographic planning and application development firm | | First American Funds Complex: twelve registered investment companies, including fifty-six 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 | | Board member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm | | First American Funds Complex: twelve registered investment companies, including fifty-six portfolios | | None |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 127
| | | | | | | | | | | |
| 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-six 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 800.677.3863 or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
128 FIRST AMERICAN FUNDS 2010 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 | | 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 December 2004 | | Mutual Funds Treasurer, FAF Advisors, Inc. |
| |
| |
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 and 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, FAF Advisors, Inc. |
| |
| |
Cynthia C. DeRuyter
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1973)* | | Anti-Money Laundering Officer | | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since June 2010 | | Compliance Director, FAF Advisors, Inc., since March 2010; prior thereto, Compliance Manager, RSM McGladrey, Inc., since March 2006; prior thereto, Compliance Manager, FAF Advisors, Inc. |
| |
| |
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 | | Deputy General Counsel, FAF Advisors, Inc. |
| |
| |
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 |
| |
| |
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, a New York City-based law firm, from September 2005 to January 2009 |
| |
| |
| |
| * | Messrs. Schreier, Wilson, Gariboldi, Lui, Ertel and Kremenak, Mses. Stevenson, DeRuyter and 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 2010 ANNUAL REPORT 129
First American Funds’ Privacy Policy
We want you to understand what information we collect and how it’s used.
“Nonpublic personal information” is nonpublic information that we obtain while providing financial products or services to you.
Why we collect your information
We gather nonpublic personal information about you and your accounts so that we can:
| |
| • | Know who you are and prevent unauthorized access to your information. |
| • | Comply with the laws and regulations that govern us. |
The types of information we collect
We may collect the following nonpublic personal information about you:
| |
| • | Information about your identity, such as your name, address, and social security number. |
| • | Information about your transactions with us. |
| • | Information you provide on applications, such as your beneficiaries and banking information, if provided to us. |
Confidentiality and security
We require our service providers to restrict access to nonpublic personal information about you to those employees who need that information in order to provide products or services to you. We also require them to maintain physical, electronic, and procedural safeguards that comply with applicable federal standards and regulations to guard your information.
What information we disclose
We may share all of the nonpublic personal information that we collect about you with our affiliated providers of financial services, including our family of funds and their advisor, and with companies that perform marketing services on our behalf.
We’re permitted by law to disclose nonpublic personal information about you to other third parties in certain circumstances. For example, we may disclose nonpublic personal information about you to affiliated and nonaffiliated third parties to assist us in servicing your account (e.g., mailing of fund-related materials) and to government entities (e.g., IRS for tax purposes).
We’ll continue to adhere to the privacy policies and practices described here even after your account is closed or becomes inactive.
Additional rights and protections
You may have other privacy protections under applicable state laws. To the extent that these state laws apply, we will comply with them when we share information about you. This privacy policy does not apply to your relationship with other financial service providers, such as broker-dealers. We may amend this privacy notice at any time, and we will inform you of changes as required by law.
Our pledge applies to products and services offered by:
| |
| • | First American Funds, Inc. |
| • | First American Investment Funds, Inc. |
| • | First American Strategy Funds, Inc. |
| • | American Strategic Income Portfolio Inc. |
| • | American Strategic Income Portfolio Inc. II |
| • | American Strategic Income Portfolio Inc. III |
| • | American Select Portfolio Inc. |
| • | American Municipal Income Portfolio Inc. |
| • | Minnesota Municipal Income Portfolio Inc. |
| • | First American Minnesota Municipal Income Fund II, Inc. |
| • | American Income Fund, Inc. |
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
| |
| Board of Directors | First American Investment Funds, Inc. |
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair Emeritus 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 period ended June 30, 2010. 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 800.677.3863 or visit FirstAmericanFunds.com.
0285-10 8/2010 AR-TAXFREEINCOME
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| | | 74 | |
| | | | | |
| | | 76 | |
| | | | | |
| | | 86 | |
| | | | | |
| | | 104 | |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Message to Shareholders August 13, 2010
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended June 30, 2010.
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.
As announced on July 29, 2010, U.S. Bancorp has entered into an agreement to sell a portion of the asset management business of FAF Advisors, the funds’ advisor, to Nuveen Investments. Included in the sale will be that part of FAF Advisors’ business that advises the funds. Subject to the approval of the funds’ board of directors and shareholders, along with other conditions related to the closing of the sale, Nuveen Asset Management, a subsidiary of Nuveen Investments, will become the advisor to the funds. The sale is currently expected to close by the end of 2010. There will be no change in the funds’ investment objectives or policies as a result of the transaction.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.3863.
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 2010 ANNUAL REPORT 1
Explanation of Financial Statements
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 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 present 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 800.677.3863 or visit FirstAmericanFunds.com.
2 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Core Bond Fund (the “fund”), Class Y shares, returned 17.42% for the fiscal year ended June 30, 2010 (Class A shares returned 17.11% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital Aggregate Bond Index*, returned 9.50% for the same period.
What were the general economic and market conditions during the fiscal year?
Policy initiatives to stabilize the financial sector and revive the economy took hold as 2009 progressed, leading to a return of investor confidence and a modest recovery in the domestic economy. Improved capital market access gave many large banks the ability to raise equity and debt in order to repay government Troubled Asset Relief Program (TARP) support funds at a profit to taxpayers. As the expansion appeared to be self-sustaining, most of these programs have been largely eliminated. Inventories were rebuilt from the credit crunch-induced low levels, corporate earnings surprised to the upside, payrolls grew at a modest pace, and consumer spending recovered. Even housing showed signs of life, though concerns of a renewed bout of weakness mounted due to poor sales numbers after expiration of the first-time homebuyer credit.
Financial markets remained volatile as 2009 progressed, but risk taking re-emerged as the uncertainty surrounding the U.S. economy subsided. Broad improvement in fundamentals and liquidity enabled non-government bonds to recover steadily throughout 2009. Investors who accumulated large cash positions during the financial crisis moved off the sidelines, further supporting the bond market as many risk premiums approached pre-Lehman bankruptcy levels in early 2010. This spread rally proved to be somewhat short lived, however, as new market headwinds surfaced due to the European sovereign debt crisis, financial reform, the gulf oil spill, and a soft patch in domestic growth. Accordingly, many bond market sectors lagged the strong performance posted by Treasuries, which rallied hard given macro concerns and a flight to quality. Still, fixed-income assets such as corporate bonds, commercial mortgage securities, asset-backed securities, and non-agency mortgage securities posted incredibly strong results during the fiscal year, outperforming Treasuries by hundreds, if not thousands, of basis points.
How did market conditions and investment strategies affect the fund’s performance?
The fund was positioned to benefit from the recovery in economic and financial conditions during the period. Strong fundamental underwriting and credit analysis in the corporate debt and securitized sectors helped the fund weather the credit crisis in good shape without sizable permanent credit impairments. This provided the basis for a strong recovery in fund holdings, which was further bolstered by opportunistic purchases in the corporate bond sector, as new issues were brought to market at very cheap valuations throughout 2009. From an overall performance perspective, our sector weights to corporate bonds, commercial mortgages, and other securitized debt accounted for the bulk of our strong performance vs. our benchmark and peers. Selection within the corporate sector, especially financial firms and the non-agency mortgage sector, also contributed to strong performance. As part of our view for an extended economic recovery and normalization of markets, we had been expecting rates to trend higher as 2010 progressed, particularly given massive amounts of Treasury issuance. Therefore, our rates strategy was positioned defensively short to our benchmark; this strategy was a modest drag on overall investment performance in mid-2010 amid the flight-to-quality caused largely by the European debt crisis.
What strategic moves were made by the fund and why?
Continued improvement of fundamental economic conditions and substantial gains in corporate balance sheets and cash flow dynamics have supported our ongoing overweight to the corporate bond sector. Nonetheless, as valuations began to normalize, particularly in early 2010, we took the opportunity to reduce positions in corporate bonds and commercial mortgage securities, lowering exposure and locking in some prior gains. Further, we significantly paired fund exposure to non-agency mortgage-backed securities (MBS) in late 2009 and early 2010, as investor demand caused these securities to recover more rapidly than warranted by underlying mortgage credit quality metrics and housing fundamentals.
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| * | Unlike mutual funds, index returns and category averages do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 3
Core Bond Fund
Over the course of the fiscal year, the fund became increasingly underweight to the agency MBS sector as the Federal Reserve purchases pushed valuations to historically unattractive levels. Given an adjustment in valuations after the Fed program expired on March 31, 2010, we took the opportunity to add exposure at attractive levels, reducing a large share of our underweight to the sector. Finally, overall portfolio interest rate sensitivity remained defensive at the end of the period, given the low level of Treasury yields resulting from risk aversion and fears of an economic double-dip.
Going forward, we anticipate economic growth to be self-sustaining and adequate to support stability, if not renewed tightening, of risk premiums across non-government sectors. We also expect generally favorable developments in the global factors, specifically the sovereign debt crisis and concerns about growth in emerging economies.
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| Corporate Bonds | | | 44 | .0 | % |
| U.S. Government Agency Mortgage-Backed Securities | | | 22 | .6 | |
| Asset-Backed Securities | | | 17 | .7 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 5 | .6 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 4 | .4 | |
| U.S. Government & Agency Securities | | | 4 | .2 | |
| Preferred Stock | | | 0 | .0 | |
| Short-Term Investments | | | 2 | .3 | |
Other Assets and Liabilities, Net2 | | | (0 | .8 | ) |
| | | | | | |
| | | | 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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
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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. |
4 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 12 | .09% | | | 3.94 | % | | | 5.18 | % | | | — | |
| |
| |
| Class B | | | 11 | .31% | | | 3.73 | % | | | 4.87 | % | | | — | |
| |
| |
| Class C | | | 15 | .32% | | | 4.06 | % | | | 4.83 | % | | | — | |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 17 | .11% | | | 4.85 | % | | | 5.64 | % | | | — | |
| |
| |
| Class B | | | 16 | .31% | | | 4.07 | % | | | 4.87 | % | | | — | |
| |
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| Class C | | | 16 | .32% | | | 4.06 | % | | | 4.83 | % | | | — | |
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| Class R | | | 16 | .74% | | | 4.63 | % | | | — | | | | 4.63 | % |
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| Class Y | | | 17 | .42% | | | 5.09 | % | | | 5.90 | % | | | — | |
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Barclays Capital Aggregate Bond Index3 | | | 9 | .50% | | | 5.54 | % | | | 6.47 | % | | | 5.65 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 required fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.02%, 1.77%, 1.77%, 1.27%, and 0.77%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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. |
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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 for these classes will vary due to the different expense structures. |
FIRST AMERICAN FUNDS 2010 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, 2010?
The First American High Income Bond Fund (the “fund”), Class Y shares, returned 25.75% for the fiscal year ended June 30, 2010 (Class A shares returned 25.47% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital High Yield 2% Issuer Capped Index*, returned 26.66% for the same period.
What were the general economic and market conditions during the fiscal year?
Policy initiatives to stabilize the financial sector and revive the economy took hold as 2009 progressed, leading to a return of investor confidence and a modest recovery in the domestic economy. Improved capital market access gave many large banks the ability to raise equity and debt in order to repay government Troubled Asset Relief Program (TARP) support funds at a profit to taxpayers. As the expansion appeared to be self-sustaining, most of these programs have been largely eliminated. Inventories were rebuilt from the credit crunch-induced low levels, corporate earnings surprised to the upside, payrolls grew at a modest pace, and consumer spending recovered. Even housing showed signs of life, though concerns of a renewed bout of weakness mounted due to poor sales numbers after expiration of the first-time homebuyer credit.
Financial markets remained volatile as 2009 progressed, but risk taking re-emerged as the uncertainty surrounding the U.S. economy subsided. Broad improvement in fundamentals and liquidity enabled non-government bonds to recover steadily throughout 2009. Investors who accumulated large cash positions during the financial crisis moved off the sidelines, further supporting the bond market as many risk premiums approached pre-Lehman bankruptcy levels in early 2010 This spread rally proved to be somewhat short lived, however, as new market headwinds surfaced due to the European sovereign debt crisis, financial reform, the gulf oil spill, and a soft patch in domestic growth. Accordingly, many bond market sectors lagged the strong performance posted by Treasuries, which rallied hard given macro concerns and a flight to quality. Still, fixed-income assets such as corporate bonds, commercial mortgage securities, asset-backed securities, and non-agency mortgage securities posted incredibly strong results during the fiscal year, outperforming Treasuries by hundreds, if not thousands, of basis points.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s performance was aided by maintaining exposure to and selectively adding to deeply discounted bonds that had suffered large price declines during the 2008 market upheaval. Naturally, these issues tended to reflect the bounce-back in cyclical sectors such as autos, basic materials, and media, as well as the debt of emerging market issuers. Much of the improvement in the prices of these securities was simply a return of liquidity to the marketplace, as the refinancing window once again became available to high-yield issuers when the financial system stabilized in early 2009. Fund overweights to financial firms, chemicals, and airlines benefited during this period. Renewed concerns over European sovereign debt and the fledgling economic recovery here in the U.S. again resulted in a paring of risk assets during second quarter 2010. The fund gave up ground during this period from a relative performance standpoint as overweights to financial preferred stock and to financial hybrid securities sold off sharply in response to the renewed worries of systemic financial risk. As the flight-to-quality ensued, the fund’s underweight position to the interest rate-sensitive ‘‘BB’’ rated sector was also a detractor to performance.
What strategic moves were made by the fund and why?
We increased portfolio risk by moving to a benchmark weight in the lowest-rated “CCC” rated sector as the high-yield rally took hold. We added to positions in more economically sensitive areas such as basic materials, building products, and auto parts. We also added to a number of financial and insurance issues, many of which were new entrants to the high-yield arena following the credit crisis of 2008-2009. We began to add back certain preferred stock issues and closed-end funds that were trading at discounts to par or to net asset value. We remain bullish on the long-term fundamentals in the area of emerging market debt and recently began to participate in some of the increased issuance we have seen in this area. Growth rates around the world compare favorably to that being realized in the developed world, while financial disclosure and transparency are also improving. The fund added select credits in the energy and oil services sector, most of which include names that are only tangentially connected with the highly publicized oil spill in the Gulf of Mexico.
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| * | Unlike mutual funds, index returns and category averages do not reflect any expenses, transaction costs, or cash flow effects |
6 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| High Yield Corporate Bonds | | | 86 | .4 | % |
| Preferred Stocks | | | 3 | .4 | |
| Investment Grade Corporate Bonds | | | 2 | .4 | |
| Exchange-Traded Funds | | | 1 | .6 | |
| Convertible Securities | | | 1 | .5 | |
| Closed-End Funds | | | 1 | .1 | |
| Common Stocks | | | 0 | .6 | |
| Asset-Backed Securities | | | 0 | .1 | |
| Short-Term Investments | | | 2 | .6 | |
Other Assets and Liabilities, Net2 | | | 0 | .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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 7
High Income Bond Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 8/30/2001 | | 9/24/20014 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 20 | .09% | | | 4.69 | % | | | 5.57 | % | | | — | |
| |
| |
| Class B | | | 19 | .56% | | | 4.53 | % | | | 5.34 | % | | | — | |
| |
| |
| Class C | | | 23 | .67% | | | 4.84 | % | | | 5.32 | % | | | — | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 25 | .47% | | | 5.60 | % | | | 6.09 | % | | | — | |
| |
| |
| Class B | | | 24 | .56% | | | 4.82 | % | | | 5.34 | % | | | — | |
| |
| |
| Class C | | | 24 | .67% | | | 4.84 | % | | | 5.32 | % | | | — | |
| |
| |
| Class R | | | 25 | .12% | | | 5.35 | % | | | — | | | | 6.53 | % |
| |
| |
| Class Y | | | 25 | .75% | | | 5.87 | % | | | 6.38 | % | | | — | |
| |
| |
Barclays Capital High Yield 2% Issuer Capped Index3 | | | 26 | .66% | | | 7.22 | % | | | 8.26 | % | | | 9.20 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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.
Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.42%, 2.17%, 2.17%, 1.67%, and 1.17%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 2010 so that total annual fund operating expenses (after all waivers and excluding 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 8/30/2001 to 6/30/2010) as compared to the Barclays Capital High Yield 2% Issuer Capped Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. 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 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%. |
| |
| 4 | The performance since inception of the index is calculated from the month end following the inception of the class. |
| |
| 5 | Performance for Class B, Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
8 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Inflation Protected Securities Fund (the “fund”), Class Y shares, returned 10.92% for the fiscal year ended June 30, 2010 (Class A shares returned 10.62% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital U.S. TIPS Index*, returned 9.52% for the same period.
What were the general economic and market conditions during the fiscal year?
The economy returned to growth and financial markets solidified and extended their sharp recovery from the height of the financial crisis. In the second half of 2009, financial conditions continued to normalize, supported by significantly improved conditions at large banks, and strong corporate earnings and cash flow. Most large U.S. banks repaid government Troubled Asset Relief Program (TARP) support funds ahead of schedule and at significant profit to taxpayers, readily accessing private capital markets for both equity and debt. Low interest rates and federal programs supported the housing market even as foreclosures continued to climb. Employment conditions improved, albeit haltingly. Federal Reserve support programs helped ease financial conditions and have since been largely eliminated, with growth being increasingly driven by private demand. Fiscal stimulus policies in the U.S., China, and elsewhere – key drivers of growth early in the period – have begun to be scaled back or expire, prompting concerns about the durability of economic recovery.
As 2010 unfolded, market concerns focused on debt sustainability issues for sovereign states, particularly in Europe, highlighted by the Greek debt crisis. The crisis came to a peak the second quarter of 2010, resulting in a $1 trillion support facility created by the European Union. Sovereign debt fears combined with uncertainty surrounding China policy shifts, financial reform legislation, and the gulf oil spill drove an increase in market risk premiums for equities and corporate bonds, and drove interest rates to low levels as the period came to a close. Despite these economic and market pressures late in the period, fixed-income markets, particularly corporate bonds and other non-government sectors, posted strong returns during the fiscal year. The broad improvement in fundamental factors and normalization of market liquidity helped corporates, high yield, and securitized assets outperform. Interest rates moved significantly lower, with the largest declines in intermediate maturities. The U.S. dollar generally declined amid resumption of global activity and normalization of capital flows, however the euro and British pound declined significantly amid financial stress and economic and policy uncertainty.
How did market conditions and investment strategies affect the fund’s performance?
An economic recovery, driven by significant government stimulus plans, caused all risk assets to perform well. The fund had an allocation to non-government sectors and benefited substantially from the economic and financial conditions during the period. Specifically, positions in high-yield corporate bonds and securitized debt drove investment returns as these securities recovered from their distressed prices of late 2008 and early 2009. Strong fundamental credit analysis and trading conviction helped the fund avoid permanent impairments that provided the basis for the recovery in fund holdings and returns from issue selection. 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 strategy to benefit from differences between Treasury Inflation-Protected Securities (TIPS) and Treasury yields centered on a view that TIPS could perform on a recovery of inflation risk premium but would ultimately be capped by still declining core inflation. This proved to be a drag on fund returns as TIPS delivered a much stronger performance than expected. Our positioning for a steeper yield curve was productive for most of the fiscal year, as both investors’ preference for safety and aversion for interest rate risk 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?
Continued improvement of fundamental economic conditions and substantial gains in corporate balance sheet health and cash flow dynamics have supported our ongoing overweight to risk assets in the fixed-income sector. For most of the period, we were positioned with a meaningful allocation to credit and securitized sectors given the unique opportunity the market offered in 2009. When the prices of these assets recovered, we opportunistically reduced our exposure to these sectors to better reflect the return opportunity from here and to lock in some gains. Additionally, we have reduced issuer-specific weights and sub-sector weights within the broad credit sectors. We have also looked to move into the highest-rated securities of specific issuers; a move that recognizes the large relative recovery of lower-quality securities at the issuer level. In addition, the significant recovery across the mortgage and securitized sectors provided us with an opportunity to reduce positions in non-agency and commercial mortgage-backed securities.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 9
Inflation Protected Securities Fund
Looking forward, we anticipate a sustained, though moderate economic growth and generally favorable developments in the global factors that have recently caused concern for the markets. Although moderate, the economic expansion and ongoing liquidity conditions should be sufficient to cause most non-Treasury securities to outperform. Spreads available in these sectors continue to reflect a risk premium that offer an attractive compensation to investors.
We anticipate that TIPS should trade directionally with rates and risk, doing better if yields rise and risk assets perform. We think that near-term Consumer Price Index adjustments may be quite modest; as such, we favor TIPS with longer maturities. We are positioned short to the benchmark in duration, looking for rates to correct higher as fears subside about a double-dip economic recession and deflation.
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| U.S. Government & Agency Securities | | | 87 | .7 | % |
| Corporate Bonds | | | 5 | .8 | |
| Asset-Backed Securities | | | 3 | .2 | |
| Municipal Bond | | | 0 | .4 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Security | | | 0 | .4 | |
| Preferred Stocks | | | 0 | .2 | |
| Exchange-Traded Fund | | | 0 | .1 | |
| Convertible Security | | | 0 | .1 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security | | | 0 | .0 | |
| Short-Term Investments | | | 2 | .2 | |
Other Assets and Liabilities, Net2 | | | (0 | .1 | ) |
| | | | | | |
| | | | 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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
10 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10/01/2004 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 5 | .87% | | | 3.48 | % | | | 3.94 | % |
| |
| |
| Class C | | | 8 | .76% | | | 3.58 | % | | | 3.90 | % |
| | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 10 | .62% | | | 4.39 | % | | | 4.72 | % |
| |
| |
| Class C | | | 9 | .76% | | | 3.58 | % | | | 3.90 | % |
| |
| |
| Class R | | | 10 | .32% | | | 4.15 | % | | | 4.48 | % |
| |
| |
| Class Y | | | 10 | .92% | | | 4.63 | % | | | 4.96 | % |
| |
| |
Barclays Capital U.S. TIPS Index3 | | | 9 | .52% | | | 4.98 | % | | | 5.36 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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.
The fund invests in lower-rated and nonrated securities, which present a greater risk of loss to principal and interest than higher-rated securities.
Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 C, Class R, and Class Y shares was 1.10%, 1.84%, 1.35%, and 0.85%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/01/2004 to 6/30/2010) 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. 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 for these classes will vary due to the different expense structures. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 11
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, 2010?
The First American Intermediate Government Bond Fund (the “fund”), Class Y shares, returned 5.66% for the fiscal year ended June 30, 2010 (Class A shares returned 5.50% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital Intermediate Government Bond Index*, returned 5.68% for the same period.
What were the general economic and market conditions during the fiscal year?
The economy returned to growth and financial markets solidified and extended their sharp recovery from the height of financial crisis. In the second half of 2009, financial conditions continued to normalize, supported by significantly improved conditions at large banks and strong corporate earnings and cash flow. Most large U.S. banks repaid government Troubled Asset Relief Program (TARP) support funds ahead of schedule and at significant profit to taxpayers, readily accessing private capital markets for both equity and debt. Low interest rates and federal programs supported the housing market even as foreclosures continued to climb. Employment conditions improved, albeit haltingly. Federal Reserve support programs helped ease financial conditions and have since been largely eliminated, with growth being increasingly driven by private demand. Fiscal stimulus policies in the U.S., China, and elsewhere – key drivers of growth early in the period – have begun to be scaled back or expire, prompting concerns about the durability of economic recovery.
As 2010 unfolded, market concerns focused on debt sustainability issues for sovereign states, particularly in Europe, highlighted by the Greek debt crisis. The crisis came to a peak the second quarter of 2010, resulting in a $1 trillion support facility created by the European Union. Sovereign debt fears combined with uncertainty surrounding China policy shifts, financial reform legislation, and the Gulf oil spill to drive an increase in market risk premiums for equities and corporate bonds and drove interest rates to low levels as the period came to a close. Despite these economic and market pressures late in the period, fixed income markets, particularly corporate bonds and other non-government sectors, posted strong returns during the fiscal year. The broad improvement in fundamental factors and normalization of market liquidity helped corporates, high yield, and securitized assets outperform. Interest rates moved significantly lower, with the largest declines in intermediate maturities. The U.S. dollar generally declined amid resumption of global activity and normalization of capital flows, however the euro and British pound declined significantly amid financial stress and economic and policy uncertainty.
How did market conditions and investment strategies affect the fund’s performance?
An economic recovery, driven by significant government stimulus plans, caused all risk assets to perform well. The fund had an allocation to non-government sectors and benefited substantially from the economic and financial conditions during the period. Specifically, positions in agency debt, mortgage-backed securities and other securitized debt drove investment returns as these securities recovered from their distressed prices of late 2008 and early 2009. Strong fundamental credit analysis and trading conviction helped the fund avoid permanent impairments that provided the basis for the recovery in fund holdings and returns from issue selection. 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 for most of the fiscal year, as both investors’ preference for safety and aversion to interest rate risk 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?
Continued improvement of fundamental economic conditions has supported our ongoing allocation to risk assets in the fixed-income sector. For most of the period, we were positioned with a meaningful allocation to agency and securitized sectors given the unique opportunity the market offered in 2009. Given the remarkable recovery in the prices of these assets, we opportunistically reduced our exposure to these sectors to better reflect the return opportunity from here and to lock in some gains. In addition, the significant recovery across the mortgage and securitized sectors provided us with an opportunity to reduce positions in non-agency and commercial mortgage-backed securities.
Looking forward, we anticipate a sustained, though moderate economic growth and generally favorable developments in the global factors that have recently caused concern for the markets. Although moderate, the economic expansion and ongoing liquidity conditions should be sufficient to cause most non-Treasury securities to outperform. Spreads available in these sectors continue to reflect a risk premium that offers an attractive compensation to investors.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
12 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
We are positioned short to the benchmark in duration, looking for rates to correct higher as fears subside about a double-dip economic recession and deflation.
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| U.S. Government & Agency Securities | | | 54 | .7 | % |
| U.S. Government Agency Mortgage-Backed Securities | | | 24 | .0 | |
| Asset-Backed Securities | | | 8 | .5 | |
| Corporate Bonds | | | 3 | .9 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 3 | .8 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 3 | .3 | |
| Short-Term Investments | | | 1 | .3 | |
Other Assets and Liabilities, Net2 | | | 0 | .5 | |
| | | | | | |
| | | | 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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 13
Intermediate Government Bond Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10/25/2002 | | 10/28/2009 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 3.12 | % | | | 4.28 | % | | | 3.61 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 2.00 | % |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 5.50 | % | | | 4.75 | % | | | 3.92 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 3.00 | % |
| |
| |
| Class R | | | — | | | | — | | | | — | | | | 3.34 | % |
| |
| |
| Class Y | | | 5.66 | % | | | 4.90 | % | | | 4.07 | % | | | — | |
| |
| |
Barclays Capital Intermediate Government Bond Index3 | | | 5.68 | % | | | 5.31 | % | | | 4.52 | % | | | 5.83 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. 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 1.16%, 1.91%, 1.41%, and 0.91%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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 0.75%, 1.60%, 1.10%, and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/25/2002 to 6/30/2010) as compared to the Barclays Capital Intermediate Government Bond Index3.
| |
| 2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. 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 | 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. |
| |
| 4 | Performance for Class C, Class R, and Class Y shares is not presented. Performance for these classes will vary due to the different expense structures. |
14 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Intermediate Bond Fund (the “fund”), Class Y shares, returned 13.87% for the fiscal year ended June 30, 2010 (Class A shares returned 13.64% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital Intermediate Government/Credit Bond Index* returned 8.29% for the same period.
What were the general economic and market conditions during the fiscal year?
The economy returned to growth and financial markets solidified and extended their sharp recovery from the height of financial crisis. In the second half of 2009, financial conditions continued to normalize, supported by significantly improved conditions at large banks and strong corporate earnings and cash flow. Most large U.S. banks repaid government Troubled Asset Relief Program (TARP) support funds ahead of schedule and at significant profit to taxpayers, readily accessing private capital markets for both equity and debt. Low interest rates and federal programs supported the housing market even as foreclosures continued to climb. Employment conditions improved, albeit haltingly. Federal Reserve support programs helped ease financial conditions and have since been largely eliminated, with growth being increasingly driven by private demand. Fiscal stimulus policies in the U.S., China and elsewhere – key drivers of growth early in the period – have begun to be scaled back or expire, prompting concerns about the durability of economic recovery.
As 2010 unfolded, market concerns focused on debt sustainability issues for sovereign states, particularly in Europe, highlighted by the Greek debt crisis. The crisis came to a peak the second quarter of 2010, resulting in a $1 trillion support facility created by the European Union. Sovereign debt fears combined with uncertainty surrounding China policy shifts, financial reform legislation, and the gulf oil spill to drive an increase in market risk premiums for equities and corporate bonds, and drove interest rates to low levels as the period came to a close. Despite these economic and market pressures late in the period, fixed-income markets, particularly corporate bonds and other non-government sectors, posted strong returns during the fiscal year. The broad improvement in fundamental factors and normalization of market liquidity helped corporates, high yield, and securitized assets outperform. Interest rates moved significantly lower, with the largest declines in intermediate maturities. The U.S. dollar generally declined amid resumption of global activity and normalization of capital flows; however, the euro and British pound declined significantly amid financial stress and economic and policy uncertainty.
How did market conditions and investment strategies affect the fund’s performance?
An economic recovery, driven by significant government stimulus plans, caused all risk assets to perform well. The fund was positioned with a significant overweight to non-government sectors and benefited substantially from the economic and financial conditions during the period. Overweight positions to corporate bonds (especially in the financial sector) and securitized debt drove investment returns as these securities recovered from their distressed prices of late 2008 and early 2009. Strong fundamental credit analysis and trading conviction helped the fund avoid permanent impairments that provided the base for the recovery in fund holdings and returns from issue selection. During much of the period, the portfolio was defensively positioned for rising interest rates. This positioning detracted from fund performance as interest rates declined, particularly late in the period.
What strategic moves were made by the fund and why?
Continued improvement of fundamental economic conditions and substantial gains in corporate balance sheet health and cash flow dynamics have supported our ongoing overweight to risk assets in the fixed-income sector. For most of the period, we were positioned with a substantial overweight to credit and securitized sectors — given the unique opportunity the market offered in 2009. Given the remarkable recovery in the prices of these assets, we opportunistically reduced our exposure to these sectors to better reflect the return opportunity from here and to lock in some gains. Additionally, we have reduced issuer-specific weights and sub-sector weights within the broad credit sectors. We have also looked to move into the highest-rated securities of specific issuers; a move that recognizes the large relative recovery of lower-quality securities at the issuer level. In addition, the significant recovery across the mortgage and securitized sectors provided us with an opportunity to reduce positions in non-agency and commercial mortgage-backed securities. During the year, the fund remained significantly underweight Treasury securities, as they offered poor value in our assessment. Portfolio interest rate sensitivity remained defensive at the end of the period, given the low level of Treasury yields.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 15
Intermediate Term Bond Fund
Looking forward, we anticipate a sustained, although moderate economic growth and generally favorable developments in the global factors that have recently caused concern for the markets. Although moderate, the economic expansion and ongoing liquidity conditions should be sufficient to cause most non-Treasury securities to outperform. Yields and spreads available in these sectors continue to reflect a substantial risk premium that offer attractive compensation to investors.
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| Corporate Bonds | | | 52 | .2 | % |
| Asset-Backed Securities | | | 19 | .9 | |
| U.S. Government & Agency Securities | | | 9 | .3 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 7 | .9 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 7 | .5 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 2 | .6 | |
| Municipal Bond | | | 0 | .2 | |
| Preferred Stock | | | 0 | .0 | |
| Short-Term Investments | | | 0 | .8 | |
Other Assets and Liabilities, Net2 | | | (0 | .4 | ) |
| | | | | | |
| | | | 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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
16 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | |
| | | 1 year | | 5 years | | 10 years |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | |
| Class A | | | 11 | .06% | | | 4.48 | % | | | 5.24 | % |
| |
| |
Average annual return without sales charge (NAV) | | | | | | | | | | | | |
| Class A | | | 13 | .64% | | | 4.95 | % | | | 5.48 | % |
| |
| |
| Class Y | | | 13 | .87% | | | 5.10 | % | | | 5.65 | % |
| |
| |
Barclays Capital Intermediate Government/Credit Bond Index3 | | | 8 | .29% | | | 5.26 | % | | | 6.06 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 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 October 31, 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 October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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. 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 of one to 10 years. |
| |
| 4 | Performance for Class Y shares is not presented. Performance for this class will vary due to the different expense structure. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 17
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, 2010?
The First American Short Term Bond Fund (the “fund”), Class Y shares, returned 6.92% for the fiscal year ended June 30, 2010 (Class A shares returned 6.77% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital 1-3 Year U.S. Government/Credit Bond Index*, returned 3.77% for the same period.
What were the general economic and market conditions during the fiscal year?
Policy initiatives to stabilize the financial sector and revive the economy took hold as 2009 progressed, leading to a return of investor confidence and a modest recovery in the domestic economy. Improved capital market access gave many large banks the ability to raise equity and debt in order to repay government Troubled Asset Relief Program (TARP) support funds at a profit to taxpayers. As the expansion appeared to be self-sustaining, most of these programs have been largely eliminated. Inventories were rebuilt from the credit crunch-induced low levels, corporate earnings surprised to the upside, payrolls grew at a modest pace, and consumer spending recovered. Even housing showed signs of life, though concerns of a renewed bout of weakness mounted due to poor sales numbers after expiration of the first-time homebuyer credit.
Financial markets remained volatile as 2009 progressed, but risk taking re-emerged as the uncertainty surrounding the U.S. economy subsided. Broad improvement in fundamentals and liquidity enabled non-government bonds to recover steadily throughout 2009. Investors who accumulated large cash positions during the financial crisis moved off the sidelines, hastening the recovery in fixed-income markets to where many risk premiums approached pre-Lehman bankruptcy levels in early 2010. This spread rally proved to be somewhat short lived, however, as new market headwinds surfaced due to the European sovereign debt crisis, financial reform, the gulf oil spill, and a soft patch in domestic growth. Accordingly, many bond market sectors lagged the strong performance posted by Treasuries, which rallied hard given macro concerns and a flight to quality. Still, fixed-income assets such as corporate bonds, commercial mortgage securities, asset-backed securities, and non-agency mortgage securities posted incredibly strong results during the fiscal year, outperforming Treasuries by hundreds, if not thousands, of basis points.
How did market conditions and investment strategies affect the fund’s performance?
Fund performance was solid over the fiscal year, with returns well ahead of benchmark and strong peer group results. With a historical emphasis on high-quality, transparent assets, the fund came through the credit crisis well and investment results were boosted by avoiding significant permanent impairments in both its structured asset and corporate debt holdings. As demand for high-quality assets increased through 2009, most of the fund’s holdings saw valuations returning to pre-crisis levels. We also added significantly to both our short structured assets and corporate bond holdings throughout the year at historically cheap levels in both the new issue and secondary markets. Overall, our underweights to government-related sectors and overweights to other high-quality securities accounted for the majority of our outperformance relative to the benchmark.
What strategic moves were made by the fund and why?
With short-term interest rates at extremely low levels, we have positioned the duration of the fund at the absolute short end of the one-to-three year range allowed by policy. Though we don’t expect an imminent or meaningful rise in rates, we don’t see any significant downside to this conservative posture and expect that this strategy will pay off over the balance of 2010 and 2011 and will be a key factor in managing downside risk associated with higher interest rates. Along the same lines, we have added meaningfully to extremely high-quality floating rate securities, which we believe offer significant yield advantages over cash while limiting an increase in interest rate risk. Though we remain underweight in high-quality government securities relative to the fund’s benchmark (which we believe will boost portfolio income), we have scaled back risk levels in portions of the structured assets sectors as valuation targets were achieved. We have, however, maintained a diversified overweight within the high-grade corporate bond sector and have selectively added a small amount of high-yield bonds to the portfolio as we believe this sector is poised to continue to perform well into 2011 as corporate balance sheets continue to improve and default rates drop.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
18 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| Corporate Bonds | | | 40 | .1 | % |
| Asset-Backed Securities | | | 25 | .1 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 11 | .7 | |
| U.S. Government & Agency Securities | | | 8 | .0 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | 7 | .9 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 2 | .4 | |
| Short-Term Investments | | | 4 | .2 | |
Other Assets and Liabilities, Net2 | | | 0 | .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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 19
Short Term Bond Fund
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 10/28/2009 |
| |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 4.39 | % | | | 3.50 | % | | | 3.90 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 0.90 | % |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 6.77 | % | | | 3.97 | % | | | 4.14 | % | | | — | |
| |
| |
| Class C | | | — | | | | — | | | | — | | | | 1.90 | % |
| |
| |
| Class Y | | | 6.92 | % | | | 4.12 | % | | | 4.30 | % | | | — | |
| |
| |
Barclays Capital 1-3 Year U.S. Government/Credit Bond Index3 | | | 3.77 | % | | | 4.52 | % | | | 4.76 | % | | | 3.08 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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.
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.
Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 C, and Class Y shares was 1.07%, 1.82%, and 0.82%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 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%, 1.60%, and 0.60%, respectively. These fee waivers and expense reimbursements may be terminated at any time after October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) as compared to the Barclays Capital 1-3 Year U.S. 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. 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 U.S. 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 C and Class Y shares are not presented. Performance for these class will vary due to the different expense structure. |
20 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010?
The First American Total Return Bond Fund (the “fund”), Class Y shares, returned 20.31% for the fiscal year ended June 30, 2010 (Class A shares returned 20.08% without taking the sales charge into account). By comparison, the fund’s benchmark, the Barclays Capital Aggregate Bond Index*, returned 9.50% for the same period.
What were the general economic and market conditions during the fiscal year?
Policy initiatives to stabilize the financial sector and revive the economy took hold as 2009 progressed, leading to a return of investor confidence and a modest recovery in the domestic economy. Improved capital market access gave many large banks the ability to raise equity and debt in order to repay government Troubled Asset Relief Program (TARP) support funds at a profit to taxpayers. As the expansion appeared to be self-sustaining, most of these programs have been largely eliminated. Inventories were rebuilt from the credit crunch-induced low levels, corporate earnings surprised to the upside, payrolls grew at a modest pace, and consumer spending recovered. Even housing showed signs of life, though concerns of a renewed bout of weakness mounted due to poor sales numbers after expiration of the first-time homebuyer credit.
Financial markets remained volatile as 2009 progressed, but risk taking re-emerged as the uncertainty surrounding the U.S. economy subsided. Broad improvement in fundamentals and liquidity enabled non-government bonds such as corporates, high yield, and securitized assets to recover steadily throughout 2009. Investors who accumulated large cash positions during the financial crisis moved off the sidelines, further supporting the bond market as many risk premiums approached pre-Lehman bankruptcy levels in early 2010. Yield spreads reversed, however, as new market headwinds surfaced due to the European sovereign debt crisis, policy uncertainty in China, financial reform legislation, the gulf oil spill, and a soft patch in domestic growth. The resulting flight-to-quality drove interest rates significantly lower, with the largest declines in intermediate maturities. The U.S. dollar generally declined amid resumption of global activity and normalization of capital flows; however, the euro and British pound declined significantly due in part to sovereign debt concerns and economic and policy uncertainty. Despite these economic and market pressures late in the period, corporate bonds, commercial mortgage securities, asset-backed securities, and non-agency mortgage securities posted incredibly strong results during the fiscal year, outperforming Treasuries by hundreds, if not thousands, of basis points.
How did market conditions and investment strategies affect the fund’s performance?
The fund was positioned with a significant overweight to non-government sectors and benefitted substantially from the recovery in economic and financial conditions during the period. Overweight positions in investment-grade corporate bonds (particularly in the financial sector), securitized debt, and high-yield corporates were key drivers of performance. Continued strong fundamental underwriting and credit analysis helped the fund avoid credit problems in both corporates and securitized sectors, and this lack of permanent impairments provided further basis for a strong recovery in fund holdings and returns from issue selection. The portfolio’s weightings in emerging markets and foreign-currency denominated holdings also added to performance. During much of the period, the portfolio was defensively positioned for rising interest rates. This positioning detracted from fund performance as interest rates declined, particularly late in the fiscal year.
What strategic moves were made by the fund and why?
Continued improvement of fundamental economic conditions and substantial gains in corporate balance sheets and cash flow dynamics has supported our ongoing overweight to the sector. Nonetheless, as valuations for corporates began to normalize, particularly in early 2010, we took the opportunity to reduce positions in corporate bonds and emerging market debt, lowering exposure and locking in some prior gains. In addition, the significant recovery across the mortgage and securitized sectors provided us with an opportunity to reduce positions in non-agency and commercial mortgage-backed securities. During the period, we took advantage of a weakening in high yield to add to the sector. The fund’s position in high-quality, short-maturity asset-backed securities was increased during the period, given the improving credit and attractive yields in the sector. We continue to see significant value in foreign markets, particularly in fiscally stable, growth-oriented countries, such as Canada and Australia, and we added to these during the year. During the period, the fund remained significantly underweight Treasury and mortgage-backed securities, as these sectors have offered poor value in our assessment. Portfolio interest rate sensitivity remained defensive at the end of the period, given the low level of Treasury yields. Looking forward, we anticipate sustained, though moderate economic growth and generally favorable developments in the global factors that have recently caused concern for the markets.
| |
| * | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 21
Total Return Bond Fund
Although moderate, the economic expansion and ongoing liquidity conditions should be sufficient to cause most non-Treasury securities to outperform. Yields and spreads available in these sectors continue to reflect a substantial risk premium and thus offer attractive compensation to investors.
Sector Allocation as of June 30, 20101 (% of net assets)
| | | | | | |
| Corporate Bonds | | | 61 | .0 | % |
| Asset-Backed Securities | | | 14 | .0 | |
| U.S. Government Agency Mortgage-Backed Securities | | | 11 | .8 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | 4 | .4 | |
| U.S. Government & Agency Securities | | | 3 | .4 | |
| Preferred Stocks | | | 0 | .4 | |
| Municipal Bond | | | 0 | .2 | |
| Closed-End Funds | | | 0 | .1 | |
| Short-Term Investments | | | 5 | .2 | |
Other Assets and Liabilities, Net2 | | | (0 | .5 | ) |
| | | | | | |
| | | | 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. See footnote 2 below and the fund’s Schedule of Investments for derivatives held as of June 30, 2010. |
| |
| 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. |
22 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Annual Performance1,2 as of June 30, 2010
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Since Inception |
| | | 1 year | | 5 years | | 10 years | | 9/24/2001 |
Average annual return with sales charge (POP) | | | | | | | | | | | | | | | | |
| Class A | | | 15 | .10% | | | 4.82 | % | | | 6.08 | % | | | — | |
| |
| |
| Class B | | | 14 | .22% | | | 4.59 | % | | | 5.72 | % | | | — | |
| |
| |
| Class C | | | 18 | .13% | | | 4.93 | % | | | 5.73 | % | | | — | |
| | | | | | | | | | | | | | | | | |
Average annual return without sales charge (NAV) | | | | | | | | | | | | | | | | |
| Class A | | | 20 | .21% | | | 5.74 | % | | | 6.55 | % | | | — | |
| |
| |
| Class B | | | 19 | .22% | | | 4.92 | % | | | 5.72 | % | | | — | |
| |
| |
| Class C | | | 19 | .13% | | | 4.93 | % | | | 5.73 | % | | | — | |
| |
| |
| Class R | | | 19 | .47% | | | 5.40 | % | | | — | | | | 5.73 | % |
| |
| |
| Class Y | | | 20 | .31% | | | 5.98 | % | | | 6.80 | % | | | — | |
| |
| |
Barclays Capital Aggregate Bond Index3 | | | 9 | .50% | | | 5.54 | % | | | 6.47 | % | | | 5.65 | % |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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 800.677.3863.
| |
| 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 nonrated securities, which present a greater risk of loss to principal and interest than higher-rated securities.
Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.
The fund may also invest in foreign securities. International investment 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 (including acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.14%, 1.89%, 1.89%, 1.39%, and 0.89%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least October 31, 2010 so that total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.89%, 1.75%, 1.75%, 1.25%, and 0.75%, respectively. These fee waivers and expense reimbursements may be terminated at any time after October 31, 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, 2010
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 6/30/2000 to 6/30/2010) 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. 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 unive rse 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 the different expense structures. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 23
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, 2010 to June 30, 2010.
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 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,045.60 | | | $ | 4.77 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.13 | | | $ | 4.71 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,042.20 | | | $ | 8.61 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.41 | | | $ | 8.50 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,041.90 | | | $ | 8.56 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.41 | | | $ | 8.45 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,044.10 | | | $ | 6.08 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.84 | | | $ | 6.01 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,046.90 | | | $ | 3.50 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.37 | | | $ | 3.46 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.94%, 1.69%, 1.69%, 1.20%, and 0.69% 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, 2010 of 4.56%, 4.22%, 4.19%, 4.41%, and 4.69% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
24 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
High Income Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,028.50 | | | $ | 5.53 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.51 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,024.90 | | | $ | 9.29 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.62 | | | $ | 9.25 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,026.10 | | | $ | 9.29 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.62 | | | $ | 9.25 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,027.90 | | | $ | 6.79 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 6.76 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,031.00 | | | $ | 4.28 | |
| |
| |
| 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, 2010 of 2.85%, 2.49%, 2.61%, 2.79%, and 3.10% 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 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,047.90 | | | $ | 4.32 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual4 | | $ | 1,000.00 | | | $ | 1,043.40 | | | $ | 8.11 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.86 | | | $ | 8.00 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual4 | | $ | 1,000.00 | | | $ | 1,046.70 | | | $ | 5.58 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.51 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,049.10 | | | $ | 3.05 | |
| |
| |
| 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%, 1.60%, 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, 2010 of 4.79%, 4.34%, 4.67%, and 4.91% for Class A, Class C, Class R, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 25
Expense Examples
Intermediate Government Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,042.00 | | | $ | 3.80 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,037.60 | | | $ | 8.08 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.86 | | | $ | 8.00 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,040.20 | | | $ | 5.56 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.51 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,042.80 | | | $ | 3.04 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.82 | | | $ | 3.01 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.60%, 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). |
| |
| 2 | Based on the actual returns for the six-month period ended June 30, 2010 of 4.20%, 3.76%, 4.02% and 4.28% for Class A, Class C, Class R, and Class Y, respectively. |
Intermediate Term Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period3 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual4 | | $ | 1,000.00 | | | $ | 1,041.80 | | | $ | 4.30 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.58 | | | $ | 4.26 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual4 | | $ | 1,000.00 | | | $ | 1,042.70 | | | $ | 3.55 | |
| |
| |
| 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, 2010 of 4.18% and 4.27% for Class A and Class Y, respectively. |
Short Term Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period5 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual6 | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 3.75 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.08 | | | $ | 3.76 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual6 | | $ | 1,000.00 | | | $ | 1,013.10 | | | $ | 7.94 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.91 | | | $ | 7.95 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual6 | | $ | 1,000.00 | | | $ | 1,019.20 | | | $ | 3.00 | |
| |
| |
| 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 0.75%, 1.59% and 0.60% 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, 2010 of 1.84%, 1.31% and 1.92% for Class A, Class C and Class Y, respectively. |
26 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Total Return Bond Fund
| | | | | | | | | | | | | |
| | | | | | | Expenses Paid During
|
| | | Beginning Account
| | Ending Account
| | Period1 (1/01/10 to
|
| | | Value (1/01/10)
| | Value (6/30/10)
| | 6/30/10) |
| |
Class A Actual2 | | $ | 1,000.00 | | | $ | 1,036.40 | | | $ | 4.49 | |
| |
| |
| Class A Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.38 | | | $ | 4.46 | |
| |
| |
| | | | | | | | | | | | | |
Class B Actual2 | | $ | 1,000.00 | | | $ | 1,032.20 | | | $ | 8.77 | |
| |
| |
| Class B Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.17 | | | $ | 8.70 | |
| |
| |
| | | | | | | | | | | | | |
Class C Actual2 | | $ | 1,000.00 | | | $ | 1,031.30 | | | $ | 8.76 | |
| |
| |
| Class C Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.17 | | | $ | 8.70 | |
| |
| |
| | | | | | | | | | | | | |
Class R Actual2 | | $ | 1,000.00 | | | $ | 1,034.50 | | | $ | 6.26 | |
| |
| |
| Class R Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.65 | | | $ | 6.21 | |
| |
| |
| | | | | | | | | | | | | |
Class Y Actual2 | | $ | 1,000.00 | | | $ | 1,037.20 | | | $ | 3.74 | |
| |
| |
| Class Y Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.12 | | | $ | 3.71 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| |
| 1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.89%, 1.74%, 1.74%, 1.24%, and 0.74% 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, 2010 of 3.64%, 3.22%, 3.13%, 3.45%, and 3.72% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 27
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
First American Investment Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including the schedule of investments, of the Core Bond, High Income Bond, Inflation Protected Securities, Intermediate Government Bond, Intermediate Term Bond, Short Term Bond, and Total Return Bond (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2010, 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, 2010, 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, 2010, 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 23, 2010
28 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Corporate Bonds – 44.0% |
| Banking – 7.5% |
| Bank of America | | | | | | | | |
| 5.625%, 07/01/2020 | | $ | 6,810 | | | $ | 6,864 | |
| 8.000%, 12/29/2049 Δ | | | 6,225 | | | | 6,013 | |
| Barclays Bank | | | | | | | | |
5.125%, 01/08/2020 ¬ | | | 3,665 | | | | 3,646 | |
| Citigroup | | | | | | | | |
| 8.125%, 07/15/2039 | | | 3,500 | | | | 4,175 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2077 Δ | | | 8,545 | | | | 8,322 | |
| Fifth Third Bancorp | | | | | | | | |
| 6.250%, 05/01/2013 | | | 2,620 | | | | 2,850 | |
| First National Bank of Chicago | | | | | | | | |
| 8.080%, 01/05/2018 | | | 1,211 | | | | 1,355 | |
| HSBC Holdings | | | | | | | | |
6.800%, 06/01/2038 ¬ | | | 6,370 | | | | 6,865 | |
| JPMorgan Chase | | | | | | | | |
| 5.150%, 10/01/2015 | | | 3,695 | | | | 3,954 | |
| Series 1 | | | | | | | | |
7.900%, 04/29/2049 Δ 6 | | | 9,800 | | | | 10,101 | |
| JPMorgan Chase Capital XX | | | | | | | | |
| Series T | | | | | | | | |
| 6.550%, 09/29/2066 | | | 2,510 | | | | 2,400 | |
| JPMorgan Chase Capital XXII | | | | | | | | |
| Series V | | | | | | | | |
| 6.450%, 01/15/2087 | | | 2,110 | | | | 1,992 | |
| Lloyds TSB Bank | | | | | | | | |
4.375%, 01/12/2015 ¬ n | | | 2,275 | | | | 2,192 | |
5.800%, 01/13/2020 ¬ n | | | 6,940 | | | | 6,551 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 3,675 | | | | 4,213 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 2,525 | | | | 2,165 | |
| Wells Fargo | | | | | | | | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 6,630 | | | | 6,829 | |
| Wells Fargo Bank | | | | | | | | |
| 5.950%, 08/26/2036 | | | 3,415 | | | | 3,477 | |
| Wells Fargo Capital X | | | | | | | | |
| 5.950%, 12/15/2086 | | | 2,760 | | | | 2,448 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 9,600 | | | | 9,696 | |
| | | | | | | | | |
| | | | | | | | 96,108 | |
| | | | | | | | | |
| Basic Industry – 4.1% |
| Arcelormittal | | | | | | | | |
6.125%, 06/01/2018 ¬ | | | 6,200 | | | | 6,485 | |
| Celulosa Arauco y Constitucion | | | | | | | | |
5.625%, 04/20/2015 ¬ 6 | | | 3,000 | | | | 3,223 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 1,500 | | | | 1,530 | |
| Incitec Pivot Finance | | | | | | | | |
6.000%, 12/10/2019 n | | | 3,830 | | | | 3,923 | |
| International Paper | | | | | | | | |
| 8.700%, 06/15/2038 | | | 2,300 | | | | 2,934 | |
| Newmont Mining | | | | | | | | |
| 6.250%, 10/01/2039 | | | 6,000 | | | | 6,548 | |
| Rio Tinto Finance U.S.A. | | | | | | | | |
6.500%, 07/15/2018 ¬ | | | 3,385 | | | | 3,858 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 2,640 | | | | 2,849 | |
| 6.750%, 04/16/2040 | | | 2,000 | | | | 1,977 | |
| Teck Cominco Limited | | | | | | | | |
6.125%, 10/01/2035 ¬ | | | 2,785 | | | | 2,771 | |
| U.S. Steel | | | | | | | | |
| 7.000%, 02/01/2018 | | | 3,595 | | | | 3,555 | |
| Vale Overseas | | | | | | | | |
5.625%, 09/15/2019 ¬ | | | 1,000 | | | | 1,055 | |
6.875%, 11/10/2039 ¬ | | | 3,895 | | | | 4,069 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 ¬ n | | | 2,055 | | | | 2,183 | |
| Yara International | | | | | | | | |
7.875%, 06/11/2019 ¬ n | | | 5,000 | | | | 5,984 | |
| | | | | | | | | |
| | | | | | | | 52,944 | |
| | | | | | | | | |
| Brokerage – 2.2% |
| Bear Stearns | | | | | | | | |
| 7.250%, 02/01/2018 | | | 3,750 | | | | 4,379 | |
| Goldman Sachs Capital II | | | | | | | | |
5.793%, 12/29/2049 6 Δ | | | 2,415 | | | | 1,823 | |
| Goldman Sachs Group | | | | | | | | |
| 6.750%, 10/01/2037 | | | 3,685 | | | | 3,613 | |
| Merrill Lynch | | | | | | | | |
| 6.050%, 05/16/2016 | | | 9,935 | | | | 10,266 | |
| Morgan Stanley | | | | | | | | |
| 7.300%, 05/13/2019 | | | 2,450 | | | | 2,635 | |
| Series MTN | | | | | | | | |
| 6.625%, 04/01/2018 | | | 4,830 | | | | 5,062 | |
| | | | | | | | | |
| | | | | | | | 27,778 | |
| | | | | | | | | |
| Capital Goods – 0.2% |
| L-3 Communications | | | | | | | | |
| 4.750%, 07/15/2020 | | | 3,190 | | | | 3,214 | |
| | | | | | | | | |
| Communications – 5.9% |
| AT&T | | | | | | | | |
6.550%, 02/15/2039 6 | | | 5,530 | | | | 6,194 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 ¬ n | | | 3,450 | | | | 3,872 | |
| British Telecom | | | | | | | | |
5.950%, 01/15/2018 ¬ | | | 5,345 | | | | 5,574 | |
| CBS | | | | | | | | |
| 5.750%, 04/15/2020 | | | 2,270 | | | | 2,437 | |
| Comcast | | | | | | | | |
| 6.300%, 11/15/2017 | | | 2,952 | | | | 3,370 | |
6.400%, 03/01/2040 6 | | | 1,565 | | | | 1,685 | |
| DirecTV Holdings | | | | | | | | |
| 5.200%, 03/15/2020 | | | 6,215 | | | | 6,477 | |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | | 2,575 | | | | 2,745 | |
| NBC Universal | | | | | | | | |
6.400%, 04/30/2040 n | | | 3,060 | | | | 3,269 | |
| New Communications Holdings | | | | | | | | |
8.500%, 04/15/2020 6 n | | | 3,500 | | | | 3,509 | |
| News America | | | | | | | | |
6.900%, 03/01/2019 6 | | | 3,500 | | | | 4,146 | |
| 6.650%, 11/15/2037 | | | 3,590 | | | | 4,029 | |
| Rogers Communications | | | | | | | | |
6.800%, 08/15/2018 ¬ | | | 5,530 | | | | 6,537 | |
| Sprint Nextel | | | | | | | | |
6.000%, 12/01/2016 6 | | | 2,000 | | | | 1,795 | |
| Telecom Italia Capital | | | | | | | | |
7.175%, 06/18/2019 ¬ | | | 4,740 | | | | 5,103 | |
| Telefonica Emisiones | | | | | | | | |
7.045%, 06/20/2036 ¬ 6 | | | 2,875 | | | | 3,181 | |
| Time Warner Cable | | | | | | | | |
| 8.750%, 02/14/2019 | | | 2,000 | | | | 2,524 | |
6.750%, 06/15/2039 6 | | | 2,410 | | | | 2,662 | |
| Verizon Communications | | | | | | | | |
| 6.900%, 04/15/2038 | | | 5,870 | | | | 6,860 | |
| | | | | | | | | |
| | | | | | | | 75,969 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 29
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Consumer Cyclical – 2.3% |
| Home Depot | | | | | | | | |
| 5.875%, 12/16/2036 | | $ | 3,570 | | | $ | 3,660 | |
| International Game Technology | | | | | | | | |
| 7.500%, 06/15/2019 | | | 3,000 | | | | 3,484 | |
| J.C. Penney | | | | | | | | |
| 5.650%, 06/01/2020 | | | 2,585 | | | | 2,527 | |
| R.R. Donnelley & Sons | | | | | | | | |
| 7.625%, 06/15/2020 | | | 1,990 | | | | 1,973 | |
| Target | | | | | | | | |
| 7.000%, 01/15/2038 | | | 4,285 | | | | 5,474 | |
| Viacom | | | | | | | | |
| 6.875%, 04/30/2036 | | | 4,105 | | | | 4,647 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 4,905 | | | | 5,253 | |
| Wyndham Worldwide | | | | | | | | |
| 6.000%, 12/01/2016 | | | 2,000 | | | | 1,940 | |
| | | | | | | | | |
| | | | | | | | 28,958 | |
| | | | �� | | | | | |
| Consumer Non Cyclical – 3.8% |
| Altria Group | | | | | | | | |
9.950%, 11/10/2038 6 | | | 6,055 | | | | 7,955 | |
| Anheuser-Busch InBev Worldwide | | | | | | | | |
8.200%, 01/15/2039 n | | | 3,850 | | | | 5,065 | |
| Boston Scientific | | | | | | | | |
| 4.500%, 01/15/2015 | | | 3,655 | | | | 3,590 | |
| Bunge Limited Finance | | | | | | | | |
| 8.500%, 06/15/2019 | | | 5,000 | | | | 5,971 | |
| ConAgra Foods | | | | | | | | |
| 7.000%, 04/15/2019 | | | 2,090 | | | | 2,507 | |
| Constellation Brands | | | | | | | | |
7.250%, 05/15/2017 6 | | | 1,000 | | | | 1,014 | |
| General Mills | | | | | | | | |
| 5.400%, 06/15/2040 | | | 3,780 | | | | 4,019 | |
| HCA | | | | | | | | |
| 9.250%, 11/15/2016 | | | 1,090 | | | | 1,155 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 3,455 | | | | 4,013 | |
| 6.500%, 02/09/2040 | | | 3,825 | | | | 4,278 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 3,350 | | | | 3,715 | |
| Smithfield Foods | | | | | | | | |
| Series B | | | | | | | | |
7.000%, 08/01/2011 6 | | | 1,385 | | | | 1,408 | |
| UnitedHealth Group | | | | | | | | |
| 6.875%, 02/15/2038 | | | 3,185 | | | | 3,601 | |
| | | | | | | | | |
| | | | | | | | 48,291 | |
| | | | | | | | | |
| Electric – 2.1% |
| Dynegy Holdings | | | | | | | | |
| 7.750%, 06/01/2019 | | | 1,825 | | | | 1,261 | |
| Majapahit Holding | | | | | | | | |
7.750%, 01/20/2020 ¬ n | | | 1,800 | | | | 1,971 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 6.125%, 04/01/2036 | | | 5,185 | | | | 5,709 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 4,100 | | | | 4,643 | |
| Pacific Gas & Electric | | | | | | | | |
5.400%, 01/15/2040 6 | | | 5,665 | | | | 5,866 | |
| Transalta | | | | | | | | |
6.650%, 05/15/2018 ¬ | | | 3,470 | | | | 3,866 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 2,880 | | | | 3,315 | |
| | | | | | | | | |
| | | | | | | | 26,631 | |
| | | | | | | | | |
| Energy – 3.9% |
| Anadarko Petroleum | | | | | | | | |
| 6.200%, 03/15/2040 | | | 3,230 | | | | 2,556 | |
| Canadian Oil Sands | | | | | | | | |
7.750%, 05/15/2019 ¬ n | | | 4,690 | | | | 5,658 | |
| Cenovus Energy | | | | | | | | |
5.700%, 10/15/2019 ¬ n | | | 3,000 | | | | 3,277 | |
| Cloud Peak Energy Resources | | | | | | | | |
8.500%, 12/15/2019 n | | | 2,000 | | | | 1,990 | |
| ConocoPhillips | | | | | | | | |
| 6.500%, 02/01/2039 | | | 3,045 | | | | 3,677 | |
| Forest Oil | | | | | | | | |
| 7.250%, 06/15/2019 | | | 2,500 | | | | 2,413 | |
| Marathon Oil | | | | | | | | |
| 7.500%, 02/15/2019 | | | 2,500 | | | | 2,998 | |
| Nexen | | | | | | | | |
6.400%, 05/15/2037 ¬ | | | 3,475 | | | | 3,624 | |
| Petrobras International Finance | | | | | | | | |
6.875%, 01/20/2040 ¬ | | | 2,495 | | | | 2,515 | |
| Petro-Canada | | | | | | | | |
6.800%, 05/15/2038 ¬ | | | 3,235 | | | | 3,712 | |
| Pride International | | | | | | | | |
8.500%, 06/15/2019 6 | | | 1,000 | | | | 1,038 | |
| Smith International | | | | | | | | |
| 9.750%, 03/15/2019 | | | 3,180 | | | | 4,328 | |
| Suncor Energy | | | | | | | | |
6.100%, 06/01/2018 ¬ | | | 3,650 | | | | 4,111 | |
| Valero Energy | | | | | | | | |
| 6.125%, 02/01/2020 | | | 4,290 | | | | 4,408 | |
| Weatherford International | | | | | | | | |
7.000%, 03/15/2038 ¬ | | | 3,740 | | | | 3,539 | |
| | | | | | | | | |
| | | | | | | | 49,844 | |
| | | | | | | | | |
| Finance – 3.8% |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 2,230 | | | | 2,525 | |
| Anglogold Holdings | | | | | | | | |
6.500%, 04/15/2040 ¬ | | | 4,530 | | | | 4,673 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 5,780 | | | | 7,216 | |
| Capital One Capital III | | | | | | | | |
| 7.686%, 08/15/2036 | | | 2,755 | | | | 2,590 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 4,390 | | | | 4,576 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 Δ ¬ n | | | 3,270 | | | | 2,403 | |
| Discover Financial Services | | | | | | | | |
| 10.250%, 07/15/2019 | | | 3,690 | | | | 4,392 | |
| General Electric Capital | | | | | | | | |
| Series GMTN | | | | | | | | |
| 6.000%, 08/07/2019 | | | 1,500 | | | | 1,624 | |
| Series MTN | | | | | | | | |
| 6.875%, 01/10/2039 | | | 4,915 | | | | 5,427 | |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | | 3,855 | | | | 3,614 | |
| Rockies Express Pipeline | | | | | | | | |
5.625%, 04/15/2020 n | | | 3,120 | | | | 2,967 | |
| SLM | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.400%, 10/25/2011 | | | 2,010 | | | | 1,998 | |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 ¬ n | | | 4,995 | | | | 5,091 | |
| | | | | | | | | |
| | | | | | | | 49,096 | |
| | | | | | | | | |
30 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Insurance – 3.8% |
| Allied World Assurance | | | | | | | | |
7.500%, 08/01/2016 ¬ | | $ | 4,805 | | | $ | 5,292 | |
| American International Group | | | | | | | | |
| 8.175%, 05/15/2068 Δ | | | 3,360 | | | | 2,654 | |
| Genworth Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.515%, 05/22/2018 | | | 3,940 | | | | 3,793 | |
| Hartford Financial Services Group | | | | | | | | |
| 6.625%, 03/30/2040 | | | 3,190 | | | | 2,962 | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 5,860 | | | | 5,912 | |
| Lincoln National | | | | | | | | |
8.750%, 07/01/2019 6 | | | 4,795 | | | | 5,876 | |
| 6.050%, 04/20/2067 Δ | | | 3,205 | | | | 2,404 | |
| MetLife | | | | | | | | |
| 6.750%, 06/01/2016 | | | 3,400 | | | | 3,846 | |
| 7.717%, 02/15/2019 | | | 860 | | | | 1,024 | |
| MetLife Capital Trust IV | | | | | | | | |
7.875%, 12/15/2067 Δ n | | | 3,735 | | | | 3,586 | |
| Pacific Life Insurance | | | | | | | | |
6.000%, 02/10/2020 6 n | | | 1,640 | | | | 1,740 | |
| Prudential Financial | | | | | | | | |
| 5.900%, 03/17/2036 | | | 2,500 | | | | 2,370 | |
| Series MTN | | | | | | | | |
| 6.625%, 12/01/2037 | | | 4,590 | | | | 4,814 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2067 Δ n | | | 2,755 | | | | 2,466 | |
| | | | | | | | | |
| | | | | | | | 48,739 | |
| | | | | | | | | |
| Natural Gas – 1.0% |
| Duke Energy | | | | | | | | |
| 5.050%, 09/15/2019 | | | 3,430 | | | | 3,657 | |
| Kinder Morgan Energy Partners | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.950%, 01/15/2038 | | | 3,060 | | | | 3,252 | |
| NGPL Pipeco | | | | | | | | |
7.119%, 12/15/2017 n | | | 2,640 | | | | 2,518 | |
| Transocean | | | | | | | | |
6.000%, 03/15/2018 ¬ 6 | | | 3,015 | | | | 2,775 | |
| | | | | | | | | |
| | | | | | | | 12,202 | |
| | | | | | | | | |
| Other Utility – 0.3% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 3,105 | | | | 3,424 | |
| | | | | | | | | |
| Real Estate – 1.4% |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 3,310 | | | | 3,426 | |
| Prologis – REIT | | | | | | | | |
6.875%, 03/15/2020 6 | | | 5,995 | | | | 5,666 | |
| Simon Property Group – REIT | | | | | | | | |
| 5.650%, 02/01/2020 | | | 3,000 | | | | 3,177 | |
| Vornado Realty – REIT | | | | | | | | |
| 4.250%, 04/01/2015 | | | 5,700 | | | | 5,667 | |
| | | | | | | | | |
| | | | | | | | 17,936 | |
| | | | | | | | | |
| Technology – 0.1% |
| Avnet | | | | | | | | |
| 5.875%, 06/15/2020 | | | 1,570 | | | | 1,591 | |
| | | | | | | | | |
| Transportation – 1.6% |
| American Airlines | | | | | | | | |
| 10.375%, 07/02/2019 | | | 2,483 | | | | 2,756 | |
| Continental Airlines | | | | | | | | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 1,814 | | | | 1,714 | |
| Delta Airlines | | | | | | | | |
Series 2001-1, Class B | | | | | | | | |
| 7.711%, 03/18/2013 | | | 2,100 | | | | 2,079 | |
Series 2002-1, Class G-1 | | | | | | | | |
| 6.718%, 07/02/2024 | | | 1,094 | | | | 1,028 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 2,945 | | | | 3,315 | |
| Norfolk Southern | | | | | | | | |
5.900%, 06/15/2019 6 | | | 5,000 | | | | 5,748 | |
| Northwest Airlines | | | | | | | | |
Series 2007-1, Class A | | | | | | | | |
7.027%, 11/01/2019 6 | | | 2,086 | | | | 1,982 | |
| United Airlines | | | | | | | | |
Series 2007-1, Class A | | | | | | | | |
| 6.636%, 01/02/2024 | | | 2,357 | | | | 2,169 | |
| | | | | | | | | |
| | | | | | | | 20,791 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $523,711) | | | | | | | 563,516 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 22.6% |
| Adjustable Rate Δ – 2.2% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 2.722%, 05/01/2025, #846757 | | | 165 | | | | 172 | |
| 2.748%, 04/01/2029, #847190 | | | 932 | | | | 974 | |
| 2.961%, 03/01/2030, #847180 | | | 1,334 | | | | 1,396 | |
| 2.598%, 07/01/2030, #847240 | | | 1,633 | | | | 1,704 | |
| 2.574%, 06/01/2031, #846984 | | | 644 | | | | 666 | |
| 5.811%, 07/01/2036, #1K1238 | | | 6,219 | | | | 6,622 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 2.707%, 08/01/2030, #555843 | | | 3,655 | | | | 3,816 | |
| 2.700%, 03/01/2031, #545359 | | | 231 | | | | 241 | |
| 2.638%, 09/01/2033, #725553 | | | 1,334 | | | | 1,393 | |
| 5.246%, 11/01/2034, #735054 | | | 5,577 | | | | 5,939 | |
| 5.812%, 09/01/2037, #946441 | | | 4,948 | | | | 5,289 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 3.625%, 08/20/2023, #008259 | | | 1 | | | | 1 | |
| | | | | | | | | |
| | | | | | | | 28,213 | |
| | | | | | | | | |
| Fixed Rate – 20.4% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 4.500%, 03/01/2018, #P10023 | | | 1,628 | | | | 1,716 | |
| 4.500%, 05/01/2018, #P10032 | | | 3,066 | | | | 3,236 | |
| 6.500%, 01/01/2028, #G00876 | | | 665 | | | | 736 | |
| 6.500%, 11/01/2028, #C00676 | | | 1,242 | | | | 1,382 | |
| 6.500%, 12/01/2028, #C00689 | | | 921 | | | | 1,026 | |
| 6.500%, 04/01/2029, #C00742 | | | 525 | | | | 585 | |
| 6.500%, 07/01/2031, #A17212 | | | 1,951 | | | | 2,172 | |
| 6.000%, 11/01/2033, #A15521 | | | 1,851 | | | | 2,035 | |
| 7.000%, 08/01/2037, #H09059 | | | 1,684 | | | | 1,862 | |
| 5.849%, 09/01/2037, #1G2163 | | | 4,701 | | | | 5,023 | |
| 7.000%, 09/01/2037, #H01292 | | | 964 | | | | 1,065 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 3.790%, 07/01/2013, #386314 | | | 10,167 | | | | 10,638 | |
| 5.500%, 02/01/2014, #440780 | | | 743 | | | | 804 | |
| 7.000%, 02/01/2015, #535206 | | | 190 | | | | 203 | |
| 7.000%, 08/01/2016, #591038 | | | 318 | | | | 349 | |
| 5.500%, 12/01/2017, #673010 | | | 2,019 | | | | 2,188 | |
| 6.000%, 10/01/2022, #254513 | | | 2,167 | | | | 2,391 | |
| 5.500%, 01/01/2025, #255575 | | | 5,443 | | | | 5,918 | |
| 7.000%, 04/01/2026, #340798 | | | 231 | | | | 261 | |
| 7.000%, 05/01/2026, #250551 | | | 250 | | | | 283 | |
| 6.000%, 08/01/2027, #256852 | | | 5,121 | | | | 5,588 | |
| 6.500%, 02/01/2029, #252255 | | | 1,171 | | | | 1,307 | |
| 6.500%, 12/01/2031, #254169 | | | 2,373 | | | | 2,599 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 31
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| 6.000%, 04/01/2032, #745101 | | $ | 5,060 | | | $ | 5,455 | |
| 7.000%, 07/01/2032, #254379 | | | 1,577 | | | | 1,780 | |
| 7.000%, 07/01/2032, #545813 | | | 674 | | | | 763 | |
| 7.000%, 07/01/2032, #545815 | | | 424 | | | | 481 | |
| 6.000%, 09/01/2032, #254447 | | | 2,404 | | | | 2,652 | |
| 6.000%, 03/01/2033, #688330 | | | 4,086 | | | | 4,507 | |
| 5.500%, 04/01/2033, #694605 | | | 5,021 | | | | 5,415 | |
| 6.500%, 05/01/2033, #555798 | | | 3,371 | | | | 3,764 | |
| 5.500%, 07/01/2033, #709446 | | | 6,385 | | | | 6,886 | |
| 5.500%, 10/01/2033, #555800 | | | 3,855 | | | | 4,157 | |
| 6.000%, 11/01/2033, #772130 | | | 331 | | | | 364 | |
| 6.000%, 11/01/2033, #772256 | | | 796 | | | | 877 | |
| 5.000%, 03/01/2034, #725248 | | | 2,449 | | | | 2,604 | |
| 5.000%, 03/01/2034, #725250 | | | 4,454 | | | | 4,737 | |
| 5.000%, 06/01/2034, #782909 | | | 1 | | | | 1 | |
| 6.500%, 06/01/2034, #735273 | | | 5,447 | | | | 6,081 | |
4.500%, 07/01/2034 « | | | 12,900 | | | | 13,370 | |
| 6.000%, 10/01/2034, #781776 | | | 1,048 | | | | 1,150 | |
| 5.500%, 07/01/2036, #995112 | | | 16,714 | | | | 18,000 | |
| 6.000%, 08/01/2036, #885536 | | | 2,328 | | | | 2,534 | |
| 6.000%, 09/01/2036, #900555 | | | 4,421 | | | | 4,861 | |
| 5.500%, 04/01/2037, #918883 | | | 4,703 | | | | 5,055 | |
| 6.000%, 06/01/2037, #944340 | | | 2,990 | | | | 3,249 | |
| 6.500%, 08/01/2037, #256845 | | | 1,543 | | | | 1,692 | |
| 6.000%, 09/01/2037, #256890 | | | 3,089 | | | | 3,331 | |
| 5.000%, 03/01/2038, #973241 | | | 17,756 | | | | 18,816 | |
| 5.000%, 05/01/2038, #983077 | | | 3,220 | | | | 3,412 | |
| 5.500%, 05/01/2038, #889618 | | | 15,450 | | | | 16,606 | |
| 6.000%, 06/01/2038, #889706 | | | 535 | | | | 581 | |
| 5.500%, 07/01/2038, #985344 | | | 16,127 | | | | 17,334 | |
| 6.000%, 08/01/2038, #257307 | | | 3,723 | | | | 4,043 | |
| 6.000%, 10/01/2038, #993138 | | | 5,856 | | | | 6,359 | |
| 5.500%, 01/01/2039, #995258 | | | 9,558 | | | | 10,274 | |
| 4.500%, 12/01/2039, #932323 | | | 9,476 | | | | 9,839 | |
| 5.000%, 05/01/2040, #AD4375 | | | 14,963 | | | | 15,854 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 7.500%, 11/15/2030, #537699 | | | 269 | | | | 306 | |
| | | | | | | | | |
| | | | | | | | 260,557 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $295,754) | | | | | | | 288,770 | |
| | | | | | | | | |
Asset-Backed Securities – 17.7% |
| Automotive – 3.0% |
| Bank of America Auto Trust | | | | | | | | |
Series 2010-2, Class A3 | | | | | | | | |
| 1.310%, 07/15/2014 | | | 4,680 | | | | 4,694 | |
| Chrysler Financial Lease Trust | | | | | | | | |
Series 2010-A, Class A2 | | | | | | | | |
1.780%, 06/15/2011 n | | | 7,265 | | | | 7,290 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 6,500 | | | | 6,663 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2005-4, Class A2 | | | | | | | | |
| 4.850%, 06/15/2012 | | | 1,480 | | | | 1,483 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
Series 2010-1, Class A2 | | | | | | | | |
| 1.360%, 03/15/2013 | | | 10,790 | | | | 10,798 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2008-1, Class A3 | | | | | | | | |
| 4.160%, 04/16/2012 | | | 797 | | | | 802 | |
Series 2010-1, Class A2 | | | | | | | | |
| 0.630%, 06/15/2012 | | | 5,000 | | | | 4,997 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2010-A, Class A2 | | | | | | | | |
| 0.700%, 05/15/2011 | | | 1,530 | | | | 1,529 | |
| | | | | | | | | |
| | | | | | | | 38,256 | |
| | | | | | | | | |
| Credit Cards – 2.6% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.680%, 08/15/2011 Δ | | | 4,125 | | | | 4,117 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.930%, 04/15/2013 Δ | | | 3,000 | | | | 3,005 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2006-14A, Class A | | | | | | | | |
| 0.360%, 08/15/2013 Δ | | | 3,900 | | | | 3,898 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 5,000 | | | | 5,147 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 5,185 | | | | 5,964 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | | 4,150 | | | | 4,148 | |
Series 2008-A3, Class A3 | | | | | | | | |
| 5.100%, 10/15/2013 | | | 5,000 | | | | 5,166 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.780%, 05/15/2013 Δ | | | 697 | | | | 696 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.600%, 06/18/2013 Δ | | | 1,430 | | | | 1,425 | |
| | | | | | | | | |
| | | | | | | | 33,566 | |
| | | | | | | | | |
| Equipment Leases – 0.1% |
| GE Equipment Small Ticket | | | | | | | | |
Series 2009-1, Class A1 | | | | | | | | |
0.382%, 11/15/2010 n | | | 1,193 | | | | 1,193 | |
| | | | | | | | | |
| Home Equity – 2.6% |
| Amresco Residential Security Mortgage | | | | | | | | |
Series 1997-3, Class A9 | | | | | | | | |
6.960%, 03/25/2027 ¥ | | | 36 | | | | 35 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-SC1, Class M2 | | | | | | | | |
| 2.597%, 09/25/2023 Δ | | | 766 | | | | 455 | |
Series 2007-1, Class 2A-1 | | | | | | | | |
| 0.397%, 07/25/2037 Δ | | | 5,388 | | | | 5,236 | |
| Renaissance Home Equity Loan Trust | | | | | | | | |
Series 2005-3, Class AF4 | | | | | | | | |
| 5.140%, 11/25/2035 | | | 4,365 | | | | 3,147 | |
| RBSSP Resecuritization Trust | | | | | | | | |
Series 2009-10, Class 8A1 | | | | | | | | |
0.495%, 05/26/2036 Δ n | | | 4,818 | | | | 4,555 | |
Series 2009-11, Class 4A1 | | | | | | | | |
2.095%, 12/26/2037 Δ n | | | 1,805 | | | | 1,796 | |
Series 2009-8, Class 3A1 | | | | | | | | |
0.485%, 03/26/2037 Δ n | | | 1,790 | | | | 1,747 | |
Series 2009-9, Class 9A1 | | | | | | | | |
0.565%, 09/26/2037 Δ n | | | 5,918 | | | | 5,473 | |
Series 2010-4, Class 1A1 | | | | | | | | |
0.455%, 03/26/2036 Δ n | | | 7,534 | | | | 6,508 | |
Series 2010-4, Class 5A1 | | | | | | | | |
0.505%, 02/26/2037 Δ n | | | 5,203 | | | | 4,758 | |
| | | | | | | | | |
| | | | | | | | 33,710 | |
| | | | | | | | | |
32 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Manufactured Housing – 0.2% |
| Green Tree Financial | | | | | | | | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | $ | 2,203 | | | $ | 2,251 | |
| | | | | | | | | |
| Other – 9.0% |
| Banc of America Commercial Mortgage | | | | | | | | |
Series 2004-5, Class A3 | | | | | | | | |
| 4.561%, 11/10/2041 Δ | | | 6,515 | | | | 6,652 | |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 Δ | | | 6,640 | | | | 6,979 | |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 Δ n ¥ | | | 3,165 | | | | 1,102 | |
| Citigroup Commercial Mortgage Trust | | | | | | | | |
Series 2008-C7, Class AJ | | | | | | | | |
| 6.297%, 12/10/2049 Δ | | | 3,095 | | | | 1,923 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-CD1, Class A4 | | | | | | | | |
| 5.397%, 07/15/2044 Δ | | | 4,570 | | | | 4,896 | |
Series 2007-CD4, Class A2B | | | | | | | | |
5.205%, 12/11/2049 6 | | | 4,700 | | | | 4,837 | |
Series 2007-CD5, Class A4 | | | | | | | | |
| 5.886%, 11/15/2044 | | | 620 | | | | 628 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | | 4,225 | | | | 4,215 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2005-C3, Class A2 | | | | | | | | |
| 4.853%, 07/10/2045 | | | 1,967 | | | | 1,966 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 727 | | | | 727 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2010-C1, Class A1 | | | | | | | | |
3.853%, 06/15/2043 n | | | 7,815 | | | | 8,008 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2004-C2, Class A4 | | | | | | | | |
| 4.367%, 03/15/2036 | | | 6,000 | | | | 6,077 | |
Series 2005-C7, Class A2 | | | | | | | | |
| 5.103%, 11/15/2030 | | | 5,574 | | | | 5,602 | |
Series 2007-C7, Class AM | | | | | | | | |
| 6.374%, 09/15/2045 Δ | | | 4,775 | | | | 3,884 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.330%, 07/12/2038 Δ ¥ | | | 3,102 | | | | 2,075 | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 7,820 | | | | 7,878 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2006-IQ12, Class A4 | | | | | | | | |
| 5.332%, 12/15/2043 | | | 4,485 | | | | 4,591 | |
Series 2007-HQ11, Class A4 | | | | | | | | |
| 5.447%, 02/12/2044 Δ | | | 9,400 | | | | 9,341 | |
| Morgan Stanley Dean Witter Capital I | | | | | | | | |
Series 2002-TOP7, Class A2 | | | | | | | | |
| 5.980%, 01/15/2039 | | | 7,505 | | | | 7,915 | |
| Small Business Administration | | | | | | | | |
Series 2006-P10B, Class 1 | | | | | | | | |
| 5.681%, 08/10/2016 | | | 8,131 | | | | 8,800 | |
Series 2010-10A, Class 1 | | | | | | | | |
| 4.108%, 03/10/2020 | | | 7,000 | | | | 7,112 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-C19, Class A5 | | | | | | | | |
| 4.661%, 05/15/2044 | | | 9,660 | | | | 9,941 | |
| | | | | | | | | |
| | | | | | | | 115,149 | |
| | | | | | | | | |
| Utilities ��� 0.2% |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-2, Class A2 | | | | | | | | |
| 5.030%, 03/25/2014 | | | 2,923 | | | | 3,036 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $222,115) | | | | | | | 227,161 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 5.6% |
| Adjustable Rate Δ – 1.6% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2704, Class JF | | | | | | | | |
| 0.900%, 05/15/2023 | | | 4,256 | | | | 4,221 | |
| Series 2755, Class FN | | | | | | | | |
| 0.800%, 04/15/2032 | | | 4,400 | | | | 4,402 | |
| Series 3591, Class FP | | | | | | | | |
| 0.950%, 06/15/2039 | | | 6,000 | | | | 6,004 | |
| Federal National Mortgage Association | | | | | | | | |
Series 2005-59, Class DF | | | | | | | | |
| 0.547%, 05/25/2035 | | | 6,081 | | | | 6,042 | |
| | | | | | | | | |
| | | | | | | | 20,669 | |
| | | | | | | | | |
| Fixed Rate – 3.9% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1022, Class J | | | | | | | | |
| 6.000%, 12/15/2020 | | | 25 | | | | 27 | |
| Series 162, Class F | | | | | | | | |
| 7.000%, 05/15/2021 | | | 71 | | | | 79 | |
| Series 1790, Class A | | | | | | | | |
| 7.000%, 04/15/2022 | | | 42 | | | | 45 | |
| Series 188, Class H | | | | | | | | |
| 7.000%, 09/15/2021 | | | 134 | | | | 149 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 2,261 | | | | 2,298 | |
| Series 2901, Class UB | | | | | | | | |
| 5.000%, 03/15/2033 | | | 5,000 | | | | 5,386 | |
| Series 6, Class C | | | | | | | | |
| 9.050%, 06/15/2019 | | | 14 | | | | 16 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1988-24, Class G | | | | | | | | |
| 7.000%, 10/25/2018 | | | 30 | | | | 34 | |
Series 1989-44, Class H | | | | | | | | |
| 9.000%, 07/25/2019 | | | 28 | | | | 32 | |
Series 1989-90, Class E | | | | | | | | |
| 8.700%, 12/25/2019 | | | 4 | | | | 5 | |
Series 1990-102, Class J | | | | | | | | |
| 6.500%, 08/25/2020 | | | 26 | | | | 29 | |
Series 1990-105, Class J | | | | | | | | |
| 6.500%, 09/25/2020 | | | 229 | | | | 259 | |
Series 1990-30, Class E | | | | | | | | |
| 6.500%, 03/25/2020 | | | 20 | | | | 22 | |
Series 1990-61, Class H | | | | | | | | |
| 7.000%, 06/25/2020 | | | 23 | | | | 25 | |
Series 1990-72, Class B | | | | | | | | |
| 9.000%, 07/25/2020 | | | 19 | | | | 23 | |
Series 1991-56, Class M | | | | | | | | |
| 6.750%, 06/25/2021 | | | 76 | | | | 81 | |
Series 1992-120, Class C | | | | | | | | |
| 6.500%, 07/25/2022 | | | 26 | | | | 28 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 33
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Series 2002-83, Class MD | | | | | | | | |
| 5.000%, 09/25/2016 | | $ | 4,354 | | | $ | 4,467 | |
Series 2003-3, Class BC | | | | | | | | |
| 5.000%, 02/25/2018 | | | 14,030 | | | | 15,245 | |
Series 2003-30, Class AE | | | | | | | | |
| 3.900%, 10/25/2017 | | | 9,894 | | | | 10,211 | |
Series 2005-44, Class PC | | | | | | | | |
| 5.000%, 11/25/2027 | | | 5,900 | | | | 6,091 | |
Series 2005-62, Class JE | | | | | | | | |
| 5.000%, 06/25/2035 | | | 5,269 | | | | 5,621 | |
| | | | | | | | | |
| | | | | | | | 50,173 | |
| | | | | | | | | |
| Z-Bonds x – 0.1% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1118, Class Z | | | | | | | | |
| 8.250%, 07/15/2021 | | | 44 | | | | 51 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1991-134, Class Z | | | | | | | | |
| 7.000%, 10/25/2021 | | | 158 | | | | 181 | |
Series 1996-35, Class Z | | | | | | | | |
| 7.000%, 07/25/2026 | | | 751 | | | | 847 | |
| | | | | | | | | |
| | | | | | | | 1,079 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $48,333) | | | | | | | 71,921 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 4.4% |
| Adjustable Rate Δ – 1.4% |
| Arkle Master Issuer | | | | | | | | |
Series 2010-1A, Class 1A | | | | | | | | |
0.480%, 05/17/2011 n | | | 7,120 | | | | 7,076 | |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.281%, 02/25/2034 | | | 1,555 | | | | 1,562 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-S1, Class 1A | | | | | | | | |
0.896%, 02/25/2048 n | | | 1,835 | | | | 1,842 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 2.820%, 03/25/2035 | | | 1,489 | | | | 1,034 | |
| JPMorgan Alternative Loan Trust | | | | | | | | |
Series 2007-S1, Class A1 | | | | | | | | |
| 0.627%, 04/25/2047 | | | 3,647 | | | | 2,042 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.935%, 01/25/2037 | | | 1,026 | | | | 230 | |
| Structured Adjustable Rate Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 3.128%, 08/25/2034 | | | 363 | | | | 305 | |
| Wachovia Mortgage Loan Trust | | | | | | | | |
Series 2005-B, Class 1A1 | | | | | | | | |
| 3.522%, 10/20/2035 | | | 5,291 | | | | 4,057 | |
| Washington Mutual | | | | | | | | |
Series 2007-HY2, Class 3A2 | | | | | | | | |
| 5.796%, 09/25/2036 | | | 1,713 | | | | 296 | |
| | | | | | | | | |
| | | | | | | | 18,444 | |
| | | | | | | | | |
| Fixed Rate – 3.0% |
| Banc of America Funding | | | | | | | | |
Series 2007-4, Class 1A2 | | | | | | | | |
5.500%, 06/25/2037 ¥ | | | 1,784 | | | | 619 | |
| Banc of America Mortgage Securities | | | | | | | | |
Series 2003-6, Class 1A30 | | | | | | | | |
| 4.750%, 08/25/2033 | | | 267 | | | | 267 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-2CB, Class 1A1 | | | | | | | | |
| 4.250%, 03/25/2034 | | | 926 | | | | 929 | |
Series 2004-J1, Class 1A1 | | | | | | | | |
| 6.000%, 02/25/2034 | | | 512 | | | | 524 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 2,629 | | | | 2,022 | |
| Credit Suisse First Boston Mortgage Securities | | | | | | | | |
Series 2003-8, Class DB1 | | | | | | | | |
| 6.248%, 04/25/2033 | | | 4,076 | | | | 3,646 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2006-J1, Class A1 | | | | | | | | |
| 5.750%, 04/25/2036 | | | 2,949 | | | | 2,617 | |
Series 2010-1, Class A | | | | | | | | |
4.250%, 07/25/2040 n | | | 5,785 | | | | 5,771 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.848%, 03/25/2043 ¥ | | | 738 | | | | 511 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2007-CB18, Class A4 | | | | | | | | |
5.440%, 06/12/2047 6 | | | 6,280 | | | | 6,272 | |
| Lehman Brothers Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.420%, 07/25/2047 | | | 2,509 | | | | 2,362 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2004-1, Class 3A1 | | | | | | | | |
| 7.000%, 01/25/2034 | | | 1,005 | | | | 1,019 | |
Series 2005-2, Class 1A3 | | | | | | | | |
| 6.500%, 03/25/2035 | | | 2,173 | | | | 1,912 | |
| OBP Depositor Trust | | | | | | | | |
Series 2010-2OBP, Class A | | | | | | | | |
4.646%, 07/15/2045 « n | | | 5,590 | | | | 5,614 | |
| Residential Asset Mortgage Products | | | | | | | | |
Series 2004-SL4, Class A3 | | | | | | | | |
| 6.500%, 07/25/2032 | | | 1,645 | | | | 1,697 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2007-2, Class 1A8 | | | | | | | | |
| 5.750%, 03/25/2037 | | | 2,295 | | | | 2,012 | |
| Westam Mortgage Financial | | | | | | | | |
| Series 11, Class A | | | | | | | | |
6.360%, 08/26/2020 ¥ | | | 38 | | | | 40 | |
| | | | | | | | | |
| | | | | | | | 37,834 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligations – Private Mortgage-Backed Securities | | | | | | | | |
(Cost $62,048) | | | | | | | 56,278 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 4.2% |
| U.S. Treasuries – 4.2% |
| U.S. Treasury Bond | | | | | | | | |
4.625%, 02/15/2040 6 | | | 3,230 | | | | 3,631 | |
| U.S. Treasury Note | | | | | | | | |
| 0.875%, 02/28/2011 | | | 2,245 | | | | 2,254 | |
| 1.000%, 08/31/2011 | | | 4,865 | | | | 4,896 | |
2.250%, 05/31/2014 6 | | | 2,315 | | | | 2,389 | |
2.625%, 06/30/2014 6 | | | 2,650 | | | | 2,770 | |
2.375%, 02/28/2015 6 | | | 8,500 | | | | 8,760 | |
3.375%, 11/15/2019 6 | | | 4,900 | | | | 5,075 | |
34 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Core Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| 3.625%, 02/15/2020 | | $ | 9,745 | | | $ | 10,296 | |
3.500%, 05/15/2020 6 | | | 12,925 | | | | 13,527 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $51,910) | | | | | | | 53,598 | |
| | | | | | | | | |
Preferred Stock – 0.0% |
Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
Series S l | | | | | | | | |
(Cost $5,173) | | | 218,000 | | | | 74 | |
| | | | | | | | | |
Short-Term Investments – 2.3% |
| Money Market Fund – 2.0% |
| First American Prime Obligations Fund, Class Z | | | | | | | | |
0.089% Å Ω | | | 25,358,922 | | | | 25,359 | |
| | | | | | | | | |
U.S. Treasury Obligations – 0.3% | | | | | | | | |
U.S. Treasury Bills o | | | | | | | | |
| 0.128%, 07/29/2010 | | $ | 865 | | | | 865 | |
| 0.205%, 12/16/2010 | | | 2,000 | | | | 1,998 | |
| 0.231%, 04/07/2011 | | | 1,540 | | | | 1,537 | |
| | | | | | | | | |
| | | | | | | | 4,400 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $29,759) | | | | | | | 29,759 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 6.4% |
| Mount Vernon Securities Lending Prime Portfolio | | | | |
| 0.282% Ω † | | | | | | | | |
(Cost $81,712) | | | 81,711,633 | | | | 81,712 | |
| | | | | | | | | |
Total Investments 5 – 107.2% | | | | | | | | |
(Cost $1,320,515) | | | | | | | 1,372,789 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (7.2)% | | | | | | | (92,180 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 1,280,609 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| Δ | | A Variable Rate Security – The rate shown is the rate in effect as of June 30, 2010. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $125,656 or 9.8% of total net assets. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $79,807 at June 30, 2010. 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, 2010, the fair value of these investments was $144,259 or 11.3% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $18,834 or 1.5% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $4,382 or 0.3% 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. |
| |
| = | | Non-income producing security. |
| |
| 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. |
Core Bond Fund (concluded)
| | |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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, 2010, the cost of investments for federal income tax purposes was $1,328,898. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 75,623 | |
| Gross unrealized depreciation | | | (31,742 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 43,891 | |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | Notional
| | | | |
| | | Settlement
| | | Contracts
| | | Contract
| | | Unrealized
| |
| Description | | Month | | | Sold | | | Value | | | Depreciation | |
| | |
| U.S. Treasury 2 Year Note Futures | | | September 2010 | | | | (25 | ) | | $ | (5,471 | ) | | $ | (22 | ) |
| U.S. Treasury 5 Year Note Futures | | | September 2010 | | | | (948 | ) | | | (112,197 | ) | | | (1,159 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2010 | | | | (320 | ) | | | (39,215 | ) | | | (491 | ) |
| U.S. Treasury Long Bond Futures | | | September 2010 | | | | (149 | ) | | | (18,998 | ) | | | (445 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (2,117 | ) |
| | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 1.255% | | | | 11/03/2011 | | | $ | 33,000 | | | $ | (259 | ) |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 3.858% | | | | 01/19/2020 | | | | 8,000 | | | | (745 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.358% | | | | 09/25/2011 | | | | 35,000 | | | | (378 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.133% | | | | 03/25/2012 | | | | 33,000 | | | | (242 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.048% | | | | 06/25/2012 | | | | 33,000 | | | | (54 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 3.001% | | | | 08/03/2014 | | | | 14,000 | | | | (861 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | $ | (2,539 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 35
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| High Income Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
High Yield Corporate Bonds – 86.4% |
| Banking – 0.4% |
| ABN AMRO | | | | | | | | |
6.523%, 12/29/2049 Δ n | | $ | 2,000 | | | $ | 1,580 | |
| | | | | | | | | |
| Basic Industry – 12.2% |
| AbitibiBowater | | | | | | | | |
9.000%, 08/01/2011 ª | | | 4,000 | | | | 1,320 | |
| AK Steel | | | | | | | | |
7.625%, 05/15/2020 6 | | | 1,750 | | | | 1,698 | |
| Aleris International | | | | | | | | |
10.000%, 12/15/2016 ª | | | 1,000 | | | | 9 | |
| Appleton Papers | | | | | | | | |
11.250%, 12/15/2015 n | | | 1,000 | | | | 850 | |
| Berry Plastics | | | | | | | | |
| 8.875%, 09/15/2014 | | | 1,500 | | | | 1,444 | |
| 10.250%, 03/01/2016 | | | 1,350 | | | | 1,178 | |
| Boise Cascade | | | | | | | | |
| 7.125%, 10/15/2014 | | | 1,800 | | | | 1,694 | |
| Boise Paper Holdings | | | | | | | | |
9.000%, 11/01/2017 n 6 | | | 1,100 | | | | 1,133 | |
| Cascades | | | | | | | | |
7.750%, 12/15/2017 ¬ | | | 1,500 | | | | 1,492 | |
| Cellu Tissue Holdings | | | | | | | | |
| 11.500%, 06/01/2014 | | | 1,000 | | | | 1,080 | |
| CF Industries | | | | | | | | |
| 6.875%, 05/01/2018 | | | 1,500 | | | | 1,526 | |
| Cleaver-Brooks | | | | | | | | |
12.250%, 05/01/2016 n | | | 1,000 | | | | 973 | |
| Crown Cork & Seal | | | | | | | | |
7.375%, 12/15/2026 6 | | | 895 | | | | 814 | |
| Drummond | | | | | | | | |
9.000%, 10/15/2014 n | | | 750 | | | | 754 | |
| Exopack Holding | | | | | | | | |
| 11.250%, 02/01/2014 | | | 1,000 | | | | 1,012 | |
| Georgia Gulf | | | | | | | | |
9.000%, 01/15/2017 n | | | 1,300 | | | | 1,319 | |
| Hexion US Finance | | | | | | | | |
9.750%, 11/15/2014 6 | | | 2,000 | | | | 1,890 | |
| Huntsman International | | | | | | | | |
| 7.875%, 11/15/2014 | | | 2,000 | | | | 1,930 | |
| Intertape Polymer Group | | | | | | | | |
| 8.500%, 08/01/2014 | | | 2,615 | | | | 2,118 | |
| Massey Energy | | | | | | | | |
| 6.875%, 12/15/2013 | | | 2,000 | | | | 1,953 | |
| Mercer International | | | | | | | | |
| 9.250%, 02/15/2013 | | | 750 | | | | 726 | |
| Millar Western Forest | | | | | | | | |
7.750%, 11/15/2013 ¬ | | | 1,700 | | | | 1,462 | |
| Momentive Performance | | | | | | | | |
9.750%, 12/01/2014 6 | | | 1,350 | | | | 1,276 | |
| Nova Chemicals | | | | | | | | |
3.748%, 11/15/2013 Δ ¬ | | | 2,000 | | | | 1,835 | |
| Olin | | | | | | | | |
| 8.875%, 08/15/2019 | | | 2,100 | | | | 2,226 | |
| Patriot Coal | | | | | | | | |
| 8.250%, 04/30/2018 | | | 1,500 | | | | 1,444 | |
| PE Paper Escrow | | | | | | | | |
12.000%, 08/01/2014 n ¬ | | | 1,500 | | | | 1,648 | |
| Ply Gem Industries | | | | | | | | |
| 11.750%, 06/15/2013 | | | 1,000 | | | | 1,045 | |
| Severstal Columbus | | | | | | | | |
10.250%, 02/15/2018 n | | | 1,000 | | | | 1,033 | |
| Solutia | | | | | | | | |
7.875%, 03/15/2020 6 | | | 2,250 | | | | 2,244 | |
| Steel Dynamics | | | | | | | | |
7.625%, 03/15/2020 n 6 | | | 1,575 | | | | 1,567 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n ¬ | | | 1,750 | | | | 1,859 | |
| Verso Paper Holdings | | | | | | | | |
| Series B | | | | | | | | |
9.125%, 08/01/2014 6 | | | 1,750 | | | | 1,671 | |
| Weyerhaeuser | | | | | | | | |
| 7.375%, 03/15/2032 | | | 1,000 | | | | 988 | |
| | | | | | | | | |
| | | | | | | | 47,211 | |
| | | | | | | | | |
| Brokerage – 0.4% |
| E*Trade Financial | | | | | | | | |
| 12.500%, 11/30/2017 | | | 1,593 | | | | 1,693 | |
| | | | | | | | | |
| Capital Goods – 3.9% |
| BE Aerospace | | | | | | | | |
8.500%, 07/01/2018 6 | | | 1,000 | | | | 1,050 | |
| Bombardier | | | | | | | | |
7.500%, 03/15/2018 n ¬ | | | 2,600 | | | | 2,678 | |
| Case New Holland | | | | | | | | |
7.875%, 12/01/2017 n 6 | | | 1,250 | | | | 1,259 | |
| Hawker Beechcraft Acquisition | | | | | | | | |
| 9.750%, 04/01/2017 | | | 700 | | | | 432 | |
| Kratos Defense & Security Solutions | | | | | | | | |
10.000%, 06/01/2017 n | | | 1,500 | | | | 1,523 | |
| Manitowoc | | | | | | | | |
9.500%, 02/15/2018 6 | | | 1,750 | | | | 1,750 | |
| Spirit Aerosystems | | | | | | | | |
| 7.500%, 10/01/2017 | | | 1,300 | | | | 1,274 | |
| Transdigm | | | | | | | | |
7.750%, 07/15/2014 n | | | 1,000 | | | | 1,000 | |
| Triumph Group | | | | | | | | |
8.625%, 07/15/2018 n | | | 1,000 | | | | 1,020 | |
| United Rentals North America | | | | | | | | |
| 10.875%, 06/15/2016 | | | 1,600 | | | | 1,716 | |
| Wyle Services | | | | | | | | |
10.500%, 04/01/2018 n | | | 1,500 | | | | 1,492 | |
| | | | | | | | | |
| | | | | | | | 15,194 | |
| | | | | | | | | |
| Communications – 10.3% |
| Belo | | | | | | | | |
| 7.250%, 09/15/2027 | | | 1,950 | | | | 1,638 | |
| Citizens Communications | | | | | | | | |
| 9.000%, 08/15/2031 | | | 1,800 | | | | 1,670 | |
| Clear Channel Communications | | | | | | | | |
| 10.750%, 08/01/2016 | | | 800 | | | | 562 | |
| 6.875%, 06/15/2018 | | | 1,910 | | | | 926 | |
| Clear Channel Worldwide | | | | | | | | |
9.250%, 12/15/2017 n | | | 1,300 | | | | 1,307 | |
| Clearwire Communications | | | | | | | | |
12.000%, 12/01/2015 n | | | 2,000 | | | | 1,982 | |
| CSC Holdings | | | | | | | | |
| 8.625%, 02/15/2019 | | | 1,000 | | | | 1,051 | |
| Digicel Group | | | | | | | | |
8.250%, 09/01/2017 n 6 ¬ | | | 2,750 | | | | 2,722 | |
| Fairpoint Communications | | | | | | | | |
| Series I | | | | | | | | |
13.125%, 04/02/2018 ª | | | 1,043 | | | | 94 | |
| Frontier Communications | | | | | | | | |
7.875%, 04/15/2015 n | | | 1,500 | | | | 1,511 | |
| Gannett | | | | | | | | |
9.375%, 11/15/2017 n | | | 2,000 | | | | 2,105 | |
| Intelsat Bermuda | | | | | | | | |
11.250%, 02/04/2017 ¬ | | | 1,500 | | | | 1,519 | |
36 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Intelsat Jackson Holdings | | | | | | | | |
11.250%, 06/15/2016 6 ¬ | | $ | 1,000 | | | $ | 1,065 | |
8.500%, 11/01/2019 n ¬ | | | 1,500 | | | | 1,515 | |
| Level 3 Financing | | | | | | | | |
10.000%, 02/01/2018 n | | | 1,800 | | | | 1,593 | |
| McClatchy | | | | | | | | |
11.500%, 02/15/2017 n 6 | | | 1,750 | | | | 1,776 | |
| Media General | | | | | | | | |
11.750%, 02/15/2017 n 6 | | | 1,850 | | | | 1,878 | |
| Mediacom Capital | | | | | | | | |
9.125%, 08/15/2019 6 | | | 1,325 | | | | 1,279 | |
| MTS International Funding | | | | | | | | |
8.625%, 06/22/2020 n ¬ | | | 1,500 | | | | 1,552 | |
| Qwest Communications International | | | | | | | | |
8.000%, 10/01/2015 n 6 | | | 1,000 | | | | 1,028 | |
| Sirius XM Radio | | | | | | | | |
8.750%, 04/01/2015 n 6 | | | 2,300 | | | | 2,265 | |
| Sprint Nextel | | | | | | | | |
| 8.375%, 08/15/2017 | | | 3,175 | | | | 3,175 | |
| Unitymedia | | | | | | | | |
8.125%, 12/01/2017 n ¬ | | | 1,500 | | | | 1,470 | |
| UPC Holding | | | | | | | | |
9.875%, 04/15/2018 n 6 ¬ | | | 2,300 | | | | 2,312 | |
| Wind Acquisition | | | | | | | | |
11.750%, 07/15/2017 n ¬ | | | 1,850 | | | | 1,896 | |
| Young Broadcasting | | | | | | | | |
10.000%, 03/01/2011 ª | | | 500 | | | | — | |
| | | | | | | | | |
| | | | | | | | 39,891 | |
| | | | | | | | | |
| Consumer Cyclical – 16.1% |
| Allison Transmission | | | | | | | | |
11.000%, 11/01/2015 n 6 | | | 1,425 | | | | 1,493 | |
| AMC Entertainment | | | | | | | | |
8.750%, 06/01/2019 6 | | | 1,000 | | | | 1,005 | |
| American Axle & Manufacturing | | | | | | | | |
| 7.875%, 03/01/2017 | | | 2,100 | | | | 1,822 | |
| Arvinmeritor | | | | | | | | |
| 10.625%, 03/15/2018 | | | 1,250 | | | | 1,325 | |
| Beazer Homes USA | | | | | | | | |
| 9.125%, 06/15/2018 | | | 1,750 | | | | 1,619 | |
| Bon-Ton Department Stores | | | | | | | | |
10.250%, 03/15/2014 6 | | | 1,250 | | | | 1,228 | |
| Boyd Gaming | | | | | | | | |
6.750%, 04/15/2014 6 | | | 1,000 | | | | 875 | |
| Burlington Coat Factory | | | | | | | | |
14.500%, 10/15/2014 6 | | | 750 | | | | 787 | |
| Chukchansi Economic | | | | | | | | |
8.000%, 11/15/2013 n 6 | | | 1,000 | | | | 700 | |
| Corporativo Javer | | | | | | | | |
13.000%, 08/04/2014 n ¬ | | | 1,150 | | | | 1,271 | |
| Desarrolladora Homex | | | | | | | | |
9.500%, 12/11/2019 n ¬ | | | 1,350 | | | | 1,384 | |
| Felcor Lodging – REIT | | | | | | | | |
10.000%, 10/01/2014 6 | | | 1,300 | | | | 1,359 | |
| Fontainebleau Las Vegas | | | | | | | | |
11.000%, 06/15/2015 n ª | | | 1,000 | | | | 4 | |
| Ford Motor Credit | | | | | | | | |
| 7.000%, 04/15/2015 | | | 1,000 | | | | 989 | |
| 8.000%, 12/15/2016 | | | 3,000 | | | | 3,068 | |
| General Motors | | | | | | | | |
8.250%, 07/15/2023 ª 6 | | | 3,750 | | | | 1,134 | |
| Geo Group | | | | | | | | |
7.750%, 10/15/2017 n | | | 1,300 | | | | 1,310 | |
| Giti Tire | | | | | | | | |
12.250%, 01/26/2012 ¬ | | | 700 | | | | 675 | |
| Greektown Holdings | | | | | | | | |
10.750%, 12/01/2013 n ª | | | 30 | | | | 2 | |
| Hanesbrands | | | | | | | | |
| 8.000%, 12/15/2016 | | | 1,000 | | | | 1,014 | |
| Harrahs | | | | | | | | |
| 11.250%, 06/01/2017 | | | 1,250 | | | | 1,316 | |
12.750%, 04/15/2018 n 6 | | | 1,500 | | | | 1,432 | |
| Hilton Hotels | | | | | | | | |
4.936%, 11/15/2013 Δ n | | | 3,000 | | | | 2,603 | |
| Lear | | | | | | | | |
| 7.875%, 03/15/2018 | | | 2,300 | | | | 2,306 | |
| Levi Strauss | | | | | | | | |
7.625%, 05/15/2020 n 6 | | | 1,000 | | | | 980 | |
| Macys Retail Holdings | | | | | | | | |
| 5.900%, 12/01/2016 | | | 1,800 | | | | 1,805 | |
| 7.000%, 02/15/2028 | | | 1,000 | | | | 962 | |
| MCE Finance | | | | | | | | |
10.250%, 05/15/2018 n 6 ¬ | | | 1,000 | | | | 1,039 | |
| MGM Mirage | | | | | | | | |
| 6.750%, 09/01/2012 | | | 1,500 | | | | 1,395 | |
7.625%, 01/15/2017 6 | | | 2,350 | | | | 1,839 | |
| Navistar International | | | | | | | | |
| 8.250%, 11/01/2021 | | | 2,500 | | | | 2,537 | |
| Oxford Industries | | | | | | | | |
| 11.375%, 07/15/2015 | | | 1,000 | | | | 1,100 | |
| Pinnacle Entertainment | | | | | | | | |
8.625%, 08/01/2017 n 6 | | | 2,500 | | | | 2,575 | |
| Quintiles Transnational | | | | | | | | |
9.500%, 12/30/2014 n | | | 1,500 | | | | 1,507 | |
| QVC | | | | | | | | |
7.500%, 10/01/2019 n 6 | | | 1,750 | | | | 1,719 | |
| Realogy | | | | | | | | |
| 11.000%, 04/15/2014 | | | 2,875 | | | | 2,437 | |
| Rite Aid | | | | | | | | |
| 9.750%, 06/12/2016 | | | 2,000 | | | | 2,090 | |
| 7.500%, 03/01/2017 | | | 2,300 | | | | 2,035 | |
| Sally Holdings | | | | | | | | |
10.500%, 11/15/2016 6 | | | 1,300 | | | | 1,391 | |
| Snoqualmie Entertainment | | | | | | | | |
9.125%, 02/01/2015 n | | | 1,500 | | | | 1,256 | |
| Sonic Automotive | | | | | | | | |
| 9.000%, 03/15/2018 | | | 1,500 | | | | 1,522 | |
| Standard Pacific | | | | | | | | |
8.375%, 05/15/2018 6 | | | 1,500 | | | | 1,425 | |
| Trimas | | | | | | | | |
9.750%, 12/15/2017 n | | | 1,000 | | | | 1,012 | |
| TRW Automotive | | | | | | | | |
8.875%, 12/01/2017 n | | | 1,000 | | | | 1,030 | |
| | | | | | | | | |
| | | | | | | | 62,377 | |
| | | | | | | | | |
| Consumer Non Cyclical – 9.4% |
| Alliance One International | | | | | | | | |
10.000%, 07/15/2016 n 6 | | | 2,000 | | | | 2,035 | |
| Apria Healthcare Group I | | | | | | | | |
12.375%, 11/01/2014 n | | | 1,450 | | | | 1,548 | |
| Biomet | | | | | | | | |
10.375%, 10/15/2017 6 | | | 1,500 | | | | 1,612 | |
| Cardinal Health | | | | | | | | |
| 9.500%, 04/15/2015 | | | 829 | | | | 789 | |
| Central Garden & Pet Company | | | | | | | | |
| 8.250%, 03/01/2018 | | | 1,250 | | | | 1,239 | |
| Community Health Systems | | | | | | | | |
| 8.875%, 07/15/2015 | | | 2,000 | | | | 2,063 | |
| Dole Foods | | | | | | | | |
| 13.875%, 03/15/2014 | | | 790 | | | | 926 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 37
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Dyncorp International | | | | | | | | |
10.375%, 07/01/2017 n | | $ | 1,250 | | | $ | 1,253 | |
| Fage Dairy | | | | | | | | |
9.875%, 02/01/2020 n ¬ | | | 1,350 | | | | 1,134 | |
| Grupo Papelero Scribe | | | | | | | | |
8.875%, 04/07/2020 n ¬ | | | 1,000 | | | | 864 | |
| HCA | | | | | | | | |
| 6.750%, 07/15/2013 | | | 1,250 | | | | 1,225 | |
| 7.875%, 02/15/2020 | | | 1,465 | | | | 1,507 | |
| Health Management Association | | | | | | | | |
| 6.125%, 04/15/2016 | | | 550 | | | | 521 | |
| Healthsouth | | | | | | | | |
8.125%, 02/15/2020 6 | | | 1,500 | | | | 1,474 | |
| Ingles Markets | | | | | | | | |
| 8.875%, 05/15/2017 | | | 1,250 | | | | 1,272 | |
| Land O Lakes Capital Trust I | | | | | | | | |
7.450%, 03/15/2028 n | | | 2,000 | | | | 1,720 | |
| Marfrig Overseas | | | | | | | | |
9.625%, 11/16/2016 n ¬ | | | 1,500 | | | | 1,493 | |
| National Mentor Holdings | | | | | | | | |
| 11.250%, 07/01/2014 | | | 1,000 | | | | 997 | |
| Pinnacle Foods Finance | | | | | | | | |
9.250%, 04/01/2015 n | | | 1,800 | | | | 1,836 | |
| Radiation Therapy Services | | | | | | | | |
9.875%, 04/15/2017 n | | | 750 | | | | 720 | |
| Revlon Consumer Products | | | | | | | | |
9.750%, 11/15/2015 n | | | 1,350 | | | | 1,384 | |
| Reynolds Group | | | | | | | | |
8.500%, 05/15/2018 n | | | 1,750 | | | | 1,717 | |
| Smithfield Foods | | | | | | | | |
| Series B | | | | | | | | |
| 7.750%, 05/15/2013 | | | 1,500 | | | | 1,486 | |
| Spectrum Brands | | | | | | | | |
9.500%, 06/15/2018 n | | | 1,500 | | | | 1,547 | |
| Symbion | | | | | | | | |
| 11.000%, 08/23/2015 | | | 1,250 | | | | 1,091 | |
| Tenet Healthcare | | | | | | | | |
| 7.375%, 02/01/2013 | | | 1,600 | | | | 1,600 | |
10.000%, 05/01/2018 n | | | 1,500 | | | | 1,658 | |
| | | | | | | | | |
| | | | | | | | 36,711 | |
| | | | | | | | | |
| Electric – 3.7% |
| AES | | | | | | | | |
8.000%, 10/15/2017 6 | | | 2,100 | | | | 2,121 | |
| CMS Energy | | | | | | | | |
| 1.253%, 01/15/2013 Δ | | | 2,500 | | | | 2,356 | |
| Dynegy Holdings | | | | | | | | |
| 7.750%, 06/01/2019 | | | 1,350 | | | | 933 | |
| Edison Mission Energy | | | | | | | | |
7.200%, 05/15/2019 6 | | | 1,500 | | | | 923 | |
| Energy Future Holdings | | | | | | | | |
| 10.875%, 11/01/2017 | | | 1,500 | | | | 1,110 | |
| 9.750%, 10/15/2019 | | | 2,000 | | | | 1,878 | |
10.000%, 01/15/2020 n 6 | | | 1,000 | | | | 995 | |
| PPL Capital Funding | | | | | | | | |
| Series A | | | | | | | | |
| 6.700%, 03/30/2067 Δ | | | 2,300 | | | | 2,024 | |
| RRI Energy | | | | | | | | |
7.625%, 06/15/2014 6 | | | 2,000 | | | | 1,970 | |
| | | | | | | | | |
| | | | | | | | 14,310 | |
| | | | | | | | | |
| Energy – 8.2% |
| Aquilex Holdings | | | | | | | | |
11.125%, 12/15/2016 n 6 | | | 1,600 | | | | 1,600 | |
| Arch Coal | | | | | | | | |
8.750%, 08/01/2016 n | | | 1,000 | | | | 1,043 | |
| Atlas Energy | | | | | | | | |
| 12.125%, 08/01/2017 | | | 1,050 | | | | 1,160 | |
| 10.750%, 02/01/2018 | | | 1,750 | | | | 1,866 | |
| ATP Oil & Gas | | | | | | | | |
11.875%, 05/01/2015 n 6 | | | 900 | | | | 653 | |
| Chesapeake Energy | | | | | | | | |
| 9.500%, 02/15/2015 | | | 1,350 | | | | 1,492 | |
| Cloud Peak Energy Resources | | | | | | | | |
8.250%, 12/15/2017 n | | | 1,775 | | | | 1,757 | |
| Concho Resources | | | | | | | | |
| 8.625%, 10/01/2017 | | | 1,550 | | | | 1,596 | |
| DDI Holdings | | | | | | | | |
5.143%, 03/15/2012 Δ n ¬ | | | 2,144 | | | | 1,972 | |
| Forest Oil | | | | | | | | |
| 8.500%, 02/15/2014 | | | 1,500 | | | | 1,564 | |
| Headwaters | | | | | | | | |
| 11.375%, 11/01/2014 | | | 1,750 | | | | 1,767 | |
| Holly | | | | | | | | |
9.875%, 06/15/2017 n | | | 1,250 | | | | 1,284 | |
| Indo Integrated Energy II | | | | | | | | |
9.750%, 11/05/2016 n ¬ | | | 750 | | | | 780 | |
| Linn Energy | | | | | | | | |
8.625%, 04/15/2020 n 6 | | | 2,125 | | | | 2,175 | |
| Opti Canada | | | | | | | | |
7.875%, 12/15/2014 ¬ | | | 1,250 | | | | 1,088 | |
| Petroplus Finance | | | | | | | | |
9.375%, 09/15/2019 n ¬ | | | 1,500 | | | | 1,290 | |
| Pioneer Drilling | | | | | | | | |
9.875%, 03/15/2018 n | | | 1,350 | | | | 1,323 | |
| RDS Ultra-Deepwater | | | | | | | | |
11.875%, 03/15/2017 n ¬ | | | 1,000 | | | | 943 | |
| Sabine Pass LNG | | | | | | | | |
| 7.500%, 11/30/2016 | | | 1,245 | | | | 1,036 | |
| Sandridge Energy | | | | | | | | |
9.875%, 05/15/2016 n | | | 1,850 | | | | 1,878 | |
| SKDP 1 | | | | | | | | |
12.000%, 05/19/2017 ¬ | | | 1,000 | | | | 940 | |
| Stallion Oilfield Holdings | | | | | | | | |
10.500%, 02/15/2015 n 6 | | | 1,000 | | | | 940 | |
| Stone Energy | | | | | | | | |
| 6.750%, 12/15/2014 | | | 1,900 | | | | 1,615 | |
| | | | | | | | | |
| | | | | | | | 31,762 | |
| | | | | | | | | |
| Finance – 5.8% |
| American Real Estate Partners | | | | | | | | |
7.750%, 01/15/2016 n 6 | | | 1,500 | | | | 1,459 | |
| Americredit | | | | | | | | |
| 8.500%, 07/01/2015 | | | 1,000 | | | | 1,027 | |
| CIT Group | | | | | | | | |
7.000%, 05/01/2016 6 | | | 4,735 | | | | 4,321 | |
| Credit Acceptance | | | | | | | | |
9.125%, 02/01/2017 n | | | 2,600 | | | | 2,613 | |
| Glen Meadow | | | | | | | | |
6.505%, 02/12/2067 Δ n | | | 2,000 | | | | 1,437 | |
| GMAC | | | | | | | | |
| 6.750%, 12/01/2014 | | | 2,800 | | | | 2,709 | |
8.300%, 02/12/2015 n | | | 3,090 | | | | 3,129 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 Δ n | | | 1,800 | | | | 1,154 | |
| LBI Escrow | | | | | | | | |
8.000%, 11/01/2017 n | | | 1,500 | | | | 1,545 | |
| National Money Mart | | | | | | | | |
10.375%, 12/15/2016 n ¬ | | | 1,000 | | | | 1,015 | |
| Nuveen Investments | | | | | | | | |
| 10.500%, 11/15/2015 | | | 1,500 | | | | 1,305 | |
38 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Squaretwo Financial | | | | | | | | |
11.625%, 04/01/2017 n | | $ | 1,000 | | | $ | 946 | |
| | | | | | | | | |
| | | | | | | | 22,660 | |
| | | | | | | | | |
| Industrial Other – 1.3% |
| Edgen Murray | | | | | | | | |
12.250%, 01/15/2015 n | | | 1,500 | | | | 1,267 | |
| Goodman Global Group | | | | | | | | |
11.320%, 12/15/2014 n 6 ¤ | | | 2,500 | | | | 1,525 | |
| Lupatech Finance | | | | | | | | |
9.875%, 07/10/2049 n ¬ | | | 750 | | | | 716 | |
| RBS Global & Rexnord | | | | | | | | |
8.500%, 05/01/2018 n | | | 1,700 | | | | 1,649 | |
| | | | | | | | | |
| | | | | | | | 5,157 | |
| | | | | | | | | |
| Insurance – 3.1% |
| American International Group | | | | | | | | |
| 6.250%, 03/15/2087 Δ | | | 5,300 | | | | 3,604 | |
| Genworth Financial | | | | | | | | |
| 6.150%, 11/15/2066 Δ | | | 2,700 | | | | 1,842 | |
| Liberty Mutual Group | | | | | | | | |
10.750%, 06/15/2088 Δ n | | | 2,825 | | | | 3,051 | |
| Lincoln National | | | | | | | | |
| 6.050%, 04/20/2067 Δ | | | 2,585 | | | | 1,939 | |
| XL Capital | | | | | | | | |
| Series E | | | | | | | | |
6.500%, 12/29/2049 Δ 6 ¬ | | | 2,500 | | | | 1,725 | |
| | | | | | | | | |
| | | | | | | | 12,161 | |
| | | | | | | | | |
| Natural Gas – 1.4% |
| Crosstex Energy | | | | | | | | |
| 8.875%, 02/15/2018 | | | 1,300 | | | | 1,298 | |
| El Paso | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.750%, 01/15/2032 | | | 1,300 | | | | 1,285 | |
| Plains Exploration & Production | | | | | | | | |
| 7.750%, 06/15/2015 | | | 1,500 | | | | 1,485 | |
| Southern Union | | | | | | | | |
| 7.200%, 11/01/2066 Δ | | | 1,600 | | | | 1,418 | |
| | | | | | | | | |
| | | | | | | | 5,486 | |
| | | | | | | | | |
| Real Estate – 1.5% |
| Agile Property Holdings | | | | | | | | |
8.875%, 04/28/2017 n 6 ¬ | | | 1,350 | | | | 1,256 | |
| China Properties Group | | | | | | | | |
9.125%, 05/04/2014 n ¬ | | | 750 | | | | 577 | |
| Country Garden Holding | | | | | | | | |
11.750%, 09/10/2014 n 6 ¬ | | | 1,500 | | | | 1,549 | |
| Evergrande Real Estate Group | | | | | | | | |
13.000%, 01/27/2015 n ¬ | | | 1,400 | | | | 1,337 | |
| Sigma Capital | | | | | | | | |
9.000%, 04/30/2015 ¬ | | | 1,029 | | | | 1,004 | |
| | | | | | | | | |
| | | | | | | | 5,723 | |
| | | | | | | | | |
| Technology – 3.2% |
| Amkor Technologies | | | | | | | | |
7.375%, 05/01/2018 n 6 | | | 1,800 | | | | 1,746 | |
| Aspect Software | | | | | | | | |
10.625%, 05/15/2017 n 6 | | | 1,250 | | | | 1,250 | |
| Coleman Cable | | | | | | | | |
9.000%, 02/15/2018 n | | | 1,000 | | | | 955 | |
| First Data | | | | | | | | |
9.875%, 09/24/2015 6 | | | 2,850 | | | | 2,166 | |
| Freescale Semiconductor | | | | | | | | |
9.125%, 12/15/2014 6 | | | 2,114 | | | | 1,892 | |
9.250%, 04/15/2018 n 6 | | | 1,000 | | | | 988 | |
| NXP BV/NXP Funding | | | | | | | | |
3.053%, 10/15/2013 Δ ¬ | | | 3,250 | | | | 2,779 | |
| Unisys | | | | | | | | |
12.750%, 10/15/2014 n | | | 750 | | | | 838 | |
| | | | | | | | | |
| | | | | | | | 12,614 | |
| | | | | | | | | |
| Transportation – 5.5% |
| Avis Budget Car Rental | | | | | | | | |
7.625%, 05/15/2014 6 | | | 2,250 | | | | 2,166 | |
| BLT Finance BV | | | | | | | | |
7.500%, 05/15/2014 n ¬ | | | 700 | | | | 460 | |
| Continental Airlines | | | | | | | | |
| Series 1998-3 | | | | | | | | |
| 7.020%, 05/01/2017 | | | 496 | | | | 478 | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 2,080 | | | | 1,966 | |
| Delta Airlines | | | | | | | | |
12.250%, 03/15/2015 n | | | 2,350 | | | | 2,509 | |
| Series 2002-1, Class G-1 | | | | | | | | |
| 6.718%, 07/02/2024 | | | 1,367 | | | | 1,285 | |
| Greenbrier | | | | | | | | |
| 8.375%, 05/15/2015 | | | 1,325 | | | | 1,249 | |
| Hertz | | | | | | | | |
| 8.875%, 01/01/2014 | | | 2,000 | | | | 2,025 | |
| Marquette Transportation | | | | | | | | |
10.875%, 01/15/2017 n | | | 1,000 | | | | 980 | |
| Martin Midstream Partners | | | | | | | | |
8.875%, 04/01/2018 n | | | 2,500 | | | | 2,475 | |
| Navios Maritime Holdings | | | | | | | | |
9.500%, 12/15/2014 ¬ | | | 1,750 | | | | 1,680 | |
| United Airlines | | | | | | | | |
10.400%, 11/01/2016 6 | | | 1,462 | | | | 1,572 | |
Series 2007-1, Class A | | | | | | | | |
| 6.636%, 01/02/2024 | | | 1,908 | | | | 1,755 | |
| Western Express | | | | | | | | |
12.500%, 04/15/2015 n | | | 750 | | | | 684 | |
| | | | | | | | | |
| | | | | | | | 21,284 | |
| | | | | | | | | |
Total High Yield Corporate Bonds | | | | | | | | |
(Cost $338,690) | | | | | | | 335,814 | |
| | | | | | | | | |
Preferred Stocks – 3.4% |
| Banking – 0.3% |
| Bank of America | | | | | | | | |
| Series MER | | | 42,500 | | | | 1,059 | |
| | | | | | | | | |
| Communications – 0.2% |
| US Cellular | | | 32,000 | | | | 796 | |
| | | | | | | | | |
| Energy – 0.2% |
| Constellation Energy Group | | | | | | | | |
| Series A | | | 25,000 | | | | 644 | |
| | | | | | | | | |
| Finance – 1.8% |
| Bank of America | | | | | | | | |
Series 5 6 | | | 129,000 | | | | 2,054 | |
| Citigroup Capital XII | | | 80,000 | | | | 1,999 | |
Freddie Mac l | | | 46,322 | | | | 14 | |
| Goldman Sachs Group | | | | | | | | |
Series A 6 | | | 49,000 | | | | 879 | |
Morgan Stanley 6 | | | 65,000 | | | | 1,128 | |
| Regions Financing Trust III | | | 22,300 | | | | 557 | |
Royal Bank Scotland Group ¬ | | | 38,000 | | | | 529 | |
| | | | | | | | | |
| | | | | | | | 7,160 | |
| | | | | | | | | |
| Insurance – 0.3% |
Aspen Insurance Holdings ¬ | | | | | | | | |
| Series A | | | 50,000 | | | | 1,129 | |
| | | | | | | | | |
| Real Estate – 0.6% |
| American Home Mortgage Investments – REIT | | | | | | | | |
Series B ª l ¥ | | | 10,000 | | | | — | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 39
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE > |
| |
| |
| Ashford Hospitality Trust – REIT | | | | | | | | |
| Series D | | | 46,900 | | | | 941 | |
| Duke Realty – REIT | | | | | | | | |
Series O 6 | | | 36,600 | | | | 942 | |
| Hospitality Properties Trust – REIT | | | | | | | | |
| Series C | | | 20,000 | | | | 441 | |
| | | | | | | | | |
| | | | | | | | 2,324 | |
| | | | | | | | | |
| Transportation – 0.0% |
Delta Air Contingent Value l | | | 8,000,000 | | | | 170 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $14,460) | | | | | | | 13,282 | |
| | | | | | | | | |
Investment Grade Corporate Bonds – 2.4% |
| Basic Industry – 0.4% |
| Vale Overseas Limited | | | | | | | | |
8.250%, 01/17/2034 ¬ | | $ | 1,200 | | | | 1,408 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.2% |
| CVS Caremark | | | | | | | | |
| 6.302%, 06/01/2062 Δ | | | 750 | | | | 671 | |
| | | | | | | | | |
| Energy – 0.9% |
| Encana | | | | | | | | |
6.500%, 02/01/2038 ¬ | | | 750 | | | | 834 | |
| Gaz Capital | | | | | | | | |
6.510%, 03/07/2022 n 6 ¬ | | | 1,375 | | | | 1,325 | |
| Valero Energy | | | | | | | | |
| 6.625%, 06/15/2037 | | | 1,500 | | | | 1,460 | |
| | | | | | | | | |
| | | | | | | | 3,619 | |
| | | | | | | | | |
| Natural Gas – 0.4% |
| Transocean | | | | | | | | |
6.800%, 03/15/2038 6 ¬ | | | 1,850 | | | | 1,667 | |
| | | | | | | | | |
| Real Estate – 0.5% |
| Prologis – REIT | | | | | | | | |
| 6.250%, 03/15/2017 | | | 2,000 | | | | 1,905 | |
| | | | | | | | | |
Total Investment Grade Corporate Bonds | | | | | | | | |
(Cost $9,187) | | | | | | | 9,270 | |
| | | | | | | | | |
Exchange-Traded Funds – 1.6% |
| iShares iBoxx $ High Yield Corporate Bond Fund | | | 37,000 | | | | 3,141 | |
PowerShares Emerging Markets Sovereign Debt Portfolio 6 | | | 40,500 | | | | 1,058 | |
SPDR DB International Government Inflation-Protected Bond Fund 6 | | | 20,900 | | | | 1,084 | |
| SPDR S&P Dividend | | | 16,500 | | | | 745 | |
| | | | | | | | | |
Total Exchange-Traded Funds | | | | | | | | |
(Cost $6,140) | | | | | | | 6,028 | |
| | | | | | | | | |
Convertible Securities – 1.5% |
| Basic Industry – 0.2% |
| Peabody Energy | | | | | | | | |
| 4.750%, 12/15/2066 | | $ | 750 | | | | 731 | |
| | | | | | | | | |
| Consumer Discretionary – 0.2% |
| Ford Motor Capital Trust II | | | 14,500 | | | | 640 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.3% |
Archer Daniels Midland 6 | | | 21,000 | | | | 760 | |
Bunge Limited ¬ | | | 6,625 | | | | 550 | |
| | | | | | | | | |
| | | | | | | | 1,310 | |
| | | | | | | | | |
| Energy – 0.2% |
| Carrizo Oil & Gas | | | | | | | | |
| 4.375%, 06/01/2028 | | $ | 1,000 | | | | 860 | |
| | | | | | | | | |
| Industrial Other – 0.2% |
| Evergreen Solar | | | | | | | | |
13.000%, 04/15/2015 n | | | 1,000 | | | | 653 | |
| | | | | | | | | |
| Technology – 0.4% |
| Hutchinson Technology | | | | | | | | |
| 3.250%, 01/15/2026 | | | 2,000 | | | | 1,620 | |
| �� | | | | | | | | |
Total Convertible Securities | | | | | | | | |
(Cost $6,432) | | | | | | | 5,814 | |
| | | | | | | | | |
Closed-End Funds – 1.1% |
Blackrock Global Opportunities Equity Trust 6 | | | 30,000 | | | | 482 | |
First Trust/Aberdeen Global Opportunities Income Fund 6 | | | 73,000 | | | | 1,171 | |
| Gabelli Global Gold Natural Resources & Income Trust | | | 13,000 | | | | 204 | |
| Highland Credit Strategies Fund | | | 60,000 | | | | 428 | |
| ING Clarion Global Real Estate Income Fund | | | 69,000 | | | | 444 | |
Nuveen Equity Premium Opportunity Fund 6 | | | 24,600 | | | | 297 | |
| Nuveen Multi-Strategy Income and Growth Fund | | | 96,000 | | | | 704 | |
| Pioneer Diversified High Income Trust | | | 35,800 | | | | 708 | |
| | | | | | | | | |
Total Closed-End Funds | | | | | | | | |
(Cost $4,727) | | | | | | | 4,438 | |
| | | | | | | | | |
Common Stocks – 0.6% |
| Banking – 0.1% |
| Bank of America | | | 18,110 | | | | 260 | |
| | | | | | | | | |
| Basic Industry – 0.1% |
Georgia Gulf = ¥ | | | 13,588 | | | | 181 | |
Nortek = | | | 9,000 | | | | 378 | |
| | | | | | | | | |
| | | | | | | | 559 | |
| | | | | | | | | |
| Consumer Discretionary – 0.1% |
| Target | | | 11,100 | | | | 546 | |
| | | | | | | | | |
| Energy – 0.2% |
Pengrowth Energy Trust ¬ | | | 44,000 | | | | 403 | |
Provident Energy Trust ¬ | | | 35,000 | | | | 241 | |
| | | | | | | | | |
| | | | | | | | 644 | |
| | | | | | | | | |
| Finance – 0.1% |
Citigroup 6 | | | 51,153 | | | | 192 | |
| | | | | | | | | |
| Real Estate – 0.0% |
Macerich – REIT 6 | | | 3,550 | | | | 132 | |
| | | | | | | | | |
| Technology – 0.0% |
Magnachip Semiconductor Escrow = | | | 22,874 | | | | 22 | |
| | | | | | | | | |
Total Common Stocks | | | | | | | | |
(Cost $3,157) | | | | | | | 2,355 | |
| | | | | | | | | |
Asset-Backed Securities – 0.1% |
| Manufactured Housing – 0.0% |
| Green Tree Financial | | | | | | | | |
Series 1998-1, Class A4 | | | | | | | | |
6.040%, 11/01/2029 ¥ | | $ | 5 | | | | 5 | |
| | | | | | | | | |
| Other – 0.1% |
| Exum | | | | | | | | |
Series 2007-1A, Class C | | | | | | | | |
3.638%, 03/22/2014 Δ n ¬ ¥ | | | 1,063 | | | | 156 | |
Series 2007-2A, Class C | | | | | | | | |
4.038%, 06/22/2014 Δ n ¬ ¥ | | | 1,101 | | | | 167 | |
| | | | | | | | | |
| | | | | | | | 323 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $2,169) | | | | | | | 328 | |
| | | | | | | | | |
40 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| High Income Bond Fund (continued) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE > |
| |
| |
Short-Term Investments – 2.6% |
| Money Market Fund – 2.6% |
First American Prime Obligations Fund, Class Z 0.089% Å Ω | | | 10,099,959 | | | $ | 10,100 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.0% |
U.S. Treasury Bills o | | | | | | | | |
| 0.095%, 07/15/2010 | | $ | 110 | | | | 110 | |
| 0.205%, 12/16/2010 | | | 30 | | | | 30 | |
| | | | | | | | �� | |
| | | | | | | | 140 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $10,240) | | | | | | | 10,240 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 19.9% |
| Mount Vernon Securities Lending Prime Portfolio 0.282% Ω † | | | | | | | | |
(Cost $77,333) | | | 77,332,704 | | | | 77,333 | |
| | | | | | | | | |
Total Investments 5 – 119.6% | | | | | | | | |
(Cost $472,535) | | | | | | | 464,902 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (19.6)% | | | | | | | (76,364 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 388,538 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2010. |
| |
| 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, 2010, the fair value of these investments was $148,870 or 38.3% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ª | | Security in default at June 30, 2010. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $75,028 at June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $62,405 or 16.1% of total net assets. |
| |
| ¤ | | 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, 2010. |
| |
| = | | Non-income producing security. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $509 or 0.1% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| | Security is internally fair valued. As of June 30, 2010, the fair value of these investments was $323 or 0.1% 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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. |
High Income Bond Fund (concluded)
| | |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $472,725. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 10,504 | |
| Gross unrealized depreciation | | | (18,327 | ) |
| | | | | |
| Net unrealized depreciation | | $ | (7,823 | ) |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | |
| | | | | | Number of
| | | Notional
| | | |
| | | Settlement
| | | Contracts
| | | Contract
| | Unrealized
| |
| Description | | Month | | | Purchased | | | Value | | Appreciation | |
| | |
| U.S. Treasury 10 Year Note Futures | | | September 2010 | | | | 100 | | | $12,255 | | $ | 179 | |
| | | | | | | | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 41
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Inflation Protected Securities Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
U.S. Government & Agency Securities – 87.7% |
| U.S. Treasuries – 86.4% |
| U.S. Treasury Bonds | | | | | | | | |
| 2.375%, 01/15/2025 ◄ | | $ | 11,016 | | | $ | 12,221 | |
| 2.000%, 01/15/2026 ◄ | | | 3,927 | | | | 4,152 | |
| 2.375%, 01/15/2027 ◄ | | | 5,243 | | | | 5,808 | |
| 1.750%, 01/15/2028 ◄ | | | 2,654 | | | | 2,692 | |
| 3.625%, 04/15/2028 ◄ | | | 8,290 | | | | 10,728 | |
| 2.500%, 01/15/2029 ◄ | | | 2,031 | | | | 2,295 | |
| 3.875%, 04/15/2029 ◄ | | | 8,852 | | | | 11,879 | |
| 2.125%, 02/15/2040 ◄ | | | 3,177 | | | | 3,481 | |
| U.S. Treasury Notes | | | | | | | | |
| 3.500%, 01/15/2011 ◄ | | | 1,973 | | | | 2,006 | |
| 2.375%, 04/15/2011 ◄ | | | 6,700 | | | | 6,812 | |
| 2.000%, 04/15/2012 ◄ | | | 1,612 | | | | 1,669 | |
| 3.000%, 07/15/2012 ◄ | | | 3,698 | | | | 3,934 | |
| 1.875%, 07/15/2013 ◄ | | | 4,689 | | | | 4,959 | |
| 2.000%, 01/15/2014 ◄ | | | 4,495 | | | | 4,789 | |
| 2.000%, 07/15/2014 ◄ | | | 4,511 | | | | 4,840 | |
| 1.625%, 01/15/2015 ◄ | | | 7,593 | | | | 8,015 | |
2.250%, 01/31/2015 6 | | | 1,600 | | | | 1,640 | |
| 0.500%, 04/15/2015 ◄ | | | 3,798 | | | | 3,848 | |
| 1.875%, 07/15/2015 ◄ | | | 4,668 | | | | 5,002 | |
| 2.000%, 01/15/2016 ◄ | | | 4,943 | | | | 5,332 | |
| 2.500%, 07/15/2016 ◄ | | | 4,658 | | | | 5,184 | |
| 2.375%, 01/15/2017 ◄ | | | 4,005 | | | | 4,422 | |
| 2.625%, 07/15/2017 ◄ | | | 3,392 | | | | 3,827 | |
| 1.625%, 01/15/2018 ◄ | | | 4,683 | | | | 4,936 | |
| 1.375%, 07/15/2018 ◄ | | | 2,927 | | | | 3,033 | |
| 2.125%, 01/15/2019 ◄ | | | 3,980 | | | | 4,344 | |
| 1.875%, 07/15/2019 ◄ | | | 5,161 | | | | 5,533 | |
3.375%, 11/15/2019 6 | | | 4,075 | | | | 4,220 | |
| 1.375%, 01/15/2020 ◄ | | | 7,496 | | | | 7,675 | |
| | | | | | | | | |
| | | | | | | | 149,276 | |
| | | | | | | | | |
| U.S. Agency Debentures – 1.3% |
| Federal Home Loan Bank | | | | | | | | |
| 1.500%, 01/16/2013 | | | 760 | | | | 769 | |
| Federal National Mortgage Association | | | | | | | | |
| 1.750%, 02/22/2013 | | | 720 | | | | 734 | |
| 4.375%, 10/15/2015 | | | 735 | | | | 813 | |
| | | | | | | | | |
| | | | | | | | 2,316 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $146,162) | | | | | | | 151,592 | |
| | | | | | | | | |
Corporate Bonds – 5.8% |
| Basic Industry – 1.5% |
| FMG Finance | | | | | | | | |
10.000%, 09/01/2013 n ¬ | | | 500 | | | | 525 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 150 | | | | 153 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 950 | | | | 1,026 | |
| Steel Dynamics | | | | | | | | |
7.625%, 03/15/2020 n 6 | | | 175 | | | | 174 | |
| Teck Resources | | | | | | | | |
10.750%, 05/15/2019 ¬ | | | 200 | | | | 245 | |
| USG | | | | | | | | |
| 9.500%, 01/15/2018 | | | 100 | | | | 99 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 n ¬ | | | 400 | | | | 425 | |
| | | | | | | | | |
| | | | | | | | 2,647 | |
| | | | | | | | | |
| Capital Goods – 0.1% |
| Bombardier | | | | | | | | |
7.500%, 03/15/2018 n ¬ | | | 200 | | | | 206 | |
| | | | | | | | | |
| Consumer Cyclical – 0.2% |
| Macys Retail Holdings | | | | | | | | |
| 5.900%, 12/01/2016 | | | 200 | | | | 201 | |
| Wyndham Worldwide | | | | | | | | |
| 9.875%, 05/01/2014 | | | 175 | | | | 196 | |
| | | | | | | | | |
| | | | | | | | 397 | |
| | | | | | | | | |
| Consumer Non Cyclical – 0.2% |
| HCA | | | | | | | | |
| 9.250%, 11/15/2016 | | | 100 | | | | 106 | |
| Smithfield Foods | | | | | | | | |
7.000%, 08/01/2011 6 | | | 275 | | | | 280 | |
| | | | | | | | | |
| | | | | | | | 386 | |
| | | | | | | | | |
| Electric – 0.2% |
| AES | | | | | | | | |
8.000%, 10/15/2017 6 | | | 150 | | | | 152 | |
| Majapahit Holding | | | | | | | | |
7.750%, 01/20/2020 n ¬ | | | 200 | | | | 219 | |
| | | | | | �� | | | |
| | | | | | | | 371 | |
| | | | | | | | | |
| Energy – 0.6% |
| Cloud Peak Energy Resources | | | | | | | | |
8.250%, 12/15/2017 n | | | 200 | | | | 198 | |
| Concho Resources | | | | | | | | |
| 8.625%, 10/01/2017 | | | 200 | | | | 206 | |
| Gaz Capital | | | | | | | | |
6.510%, 03/07/2022 n 6 ¬ | | | 250 | | | | 241 | |
| Linn Energy | | | | | | | | |
8.625%, 04/15/2020 n 6 | | | 175 | | | | 179 | |
| Pride International | | | | | | | | |
| 7.375%, 07/15/2014 | | | 205 | | | | 204 | |
| | | | | | | | | |
| | | | | | | | 1,028 | |
| | | | | | | | | |
| Insurance – 0.6% |
| Pacific Life Global Funding | | | | | | | | |
4.490%, 02/06/2016 n Δ | | | 1,000 | | | | 960 | |
| | | | | | | | | |
| Natural Gas – 0.1% |
| El Paso | | | | | | | | |
| 6.875%, 06/15/2014 | | | 175 | | | | 178 | |
| | | | | | | | | |
| Sovereigns – 2.1% |
| Australian Government | | | | | | | | |
5.750%, 04/15/2012 ¬ AUD | | | 800 | | | | 688 | |
| Canadian Government | | | | | | | | |
1.500%, 03/01/2012 ¬ CAD | | | 800 | | | | 754 | |
3.500%, 06/01/2020 ¬ CAD | | | 750 | | | | 730 | |
| Norwegian Government | | | | | | | | |
6.000%, 05/16/2011 ¬ NOK | | | 5,000 | | | | 793 | |
6.500%, 05/15/2013 ¬ NOK | | | 3,300 | | | | 565 | |
| | | | | | | | | |
| | | | | | | | 3,530 | |
| | | | | | | | | |
| Transportation – 0.2% |
| Avis Budget Car Rental | | | | | | | | |
| 7.750%, 05/15/2016 | | $ | 150 | | | | 140 | |
| Continental Airlines | | | | | | | | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 177 | | | | 167 | |
| | | | | | | | | |
| | | | | | | | 307 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $9,930) | | | | | | | 10,010 | |
| | | | | | | | | |
42 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Inflation Protected Securities Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
Asset-Backed Securities – 3.2% |
| Credit Cards – 0.3% |
| Discover Card Master Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | $ | 500 | | | $ | 500 | |
| | | | | | | | | |
| Other – 2.9% |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-CD1, Class A4 | | | | | | | | |
| 5.397%, 07/15/2044 Δ | | | 1,255 | | | | 1,344 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2007-GG11, Class A4 | | | | | | | | |
| 5.736%, 12/10/2049 | | | 1,000 | | | | 984 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.999%, 08/10/2045 Δ | | | 1,300 | | | | 1,278 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2010-C1, Class A1 | | | | | | | | |
3.853%, 06/15/2043 n | | | 1,020 | | | | 1,045 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 380 | | | | 383 | |
| | | | | | | | | |
| | | | | | | | 5,034 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $5,414) | | | | | | | 5,534 | |
| | | | | | | | | |
Municipal Bond – 0.4% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | | | | | | |
| 6.950% 09/01/2016 | | | | | | | | |
(Cost $760) | | | 760 | | | | 760 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Security – 0.4% |
| Fixed Rate – 0.4% |
| OBP Depositor Trust | | | | | | | | |
Series 2010-0BP, Class A | | | | | | | | |
4.646% 07/15/2045 n | | | | | | | | |
(Cost $700) | | | 700 | | | | 703 | |
| | | | | | | | | |
Preferred Stocks – 0.2% |
| Banking – 0.1% |
| Goldman Sachs Group | | | | | | | | |
Series A 6 | | | 10,000 | | | | 180 | |
| Finance – 0.1% |
| Bank of America | | | | | | | | |
| Series 5 | | | 13,000 | | | | 207 | |
| Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
Series S 6 | | | 16,000 | | | | 5 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $791) | | | | | | | 392 | |
| | | | | | | | | |
Exchange-Traded Fund – 0.1% |
iShares iBoxx $ High Yield Corporate Bond Fund 6 | | | | | | | | |
Total Exchange-Traded Fund | | | | | | | | |
(Cost $205) | | | 2,500 | | | | 212 | |
| | | | | | | | | |
Convertible Security – 0.1% |
| Consumer Non Cyclical – 0.1% |
Bunge Limited ¬ | | | | | | | | |
(Cost $136) | | | 1,300 | | | | 108 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security – 0.0% |
| Fixed Rate – 0.0% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2763, Class TA | | | | | | | | |
| 4.000% 03/15/2011 | | | | | | | | |
(Cost $79) | | $ | 79 | | | | 80 | |
| | | | | | | | | |
Short-Term Investments – 2.2% |
| Money Market Fund – 2.1% |
| First American Prime Obligations Fund, Class Z | | | | | | | | |
0.089% Å Ω | | | 3,532,644 | | | | 3,533 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.1% |
U.S. Treasury Bills o | | | | | | | | |
| 0.134%, 07/15/2010 | | $ | 95 | | | | 95 | |
| 0.205%, 12/16/2010 | | | 30 | | | | 29 | |
| 0.232%, 04/07/2011 | | | 65 | | | | 65 | |
| | | | | | | | | |
| | | | | | | | 189 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $3,722) | | | | | | | 3,722 | |
| | | | | | | | | |
| Investment Purchased with Proceeds from Securities Lending – 4.2% |
| Mount Vernon Securities Lending Prime Portfolio 0.282% Ω † | | | | | | | | |
(Cost $7,192) | | | 7,191,898 | | | | 7,192 | |
| | | | | | | | | |
Total Investments 5 – 104.3% | | | | | | | | |
(Cost $175,091) | | | | | | | 180,305 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (4.3)% | | | | | | | (7,423 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 172,882 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in 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. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $7,033 at June 30, 2010. 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, 2010, the fair value of these investments was $5,028 or 2.9% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $5,499 or 3.2% of total net assets. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2010. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 43
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
Inflation Protected Securities Fund (concluded)
| | |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $175,713. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 5,893 | |
| Gross unrealized depreciation | | | (1,301 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 4,592 | |
| | | | | |
Schedule of Open Futures Contracts
| | | | | | | | | | | | | | | | | |
| | | | | | Number of
| | | Notional
| | | | |
| | | Settlement
| | | Contracts
| | | Contract
| | | Unrealized
| |
| Description | | Month | | | Sold | | | Value | | | Depreciation | |
| | |
| U.S. Treasury 5 Year Note Futures | | | September 2010 | | | | (17 | ) | | $ | (2,012 | ) | | $ | (7 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2010 | | | | (45 | ) | | | (5,515 | ) | | | (90 | ) |
| U.S. Treasury Long Bond Futures | | | September 2010 | | | | (16 | ) | | | (2,040 | ) | | | (37 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (134 | ) |
| | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 1.255% | | | | 11/03/2011 | | | $ | 4,000 | | | $ | (31 | ) |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 3.858% | | | | 01/19/2020 | | | | 1,000 | | | | (93 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.358% | | | | 09/25/2011 | | | | 4,000 | | | | (43 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.133% | | | | 03/25/2012 | | | | 2,000 | | | | (15 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.048% | | | | 06/25/2012 | | | | 4,000 | | | | (7 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 3.001% | | | | 08/03/2014 | | | | 2,000 | | | | (123 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | $ | (312 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Intermediate Government Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
U.S. Government & Agency Securities – 54.7% |
| U.S. Agency Debentures – 32.6% |
| Federal Farm Credit Bank | | | | | | | | |
| 2.250%, 07/01/2010 | | $ | 1,365 | | | $ | 1,365 | |
| 5.250%, 09/13/2010 | | | 1,000 | | | | 1,010 | |
| 5.750%, 01/18/2011 | | | 1,800 | | | | 1,853 | |
| 4.875%, 02/18/2011 | | | 1,000 | | | | 1,028 | |
| 3.875%, 08/25/2011 | | | 3,600 | | | | 3,739 | |
| 2.250%, 04/24/2012 | | | 905 | | | | 930 | |
| 2.125%, 06/18/2012 | | | 1,130 | | | | 1,160 | |
| 4.500%, 10/17/2012 | | | 1,565 | | | | 1,692 | |
| 1.875%, 12/07/2012 | | | 2,035 | | | | 2,079 | |
| 1.750%, 02/21/2013 | | | 1,885 | | | | 1,913 | |
| 1.375%, 06/25/2013 | | | 1,705 | | | | 1,715 | |
| 3.875%, 10/07/2013 | | | 1,350 | | | | 1,460 | |
| 2.625%, 04/17/2014 | | | 1,400 | | | | 1,455 | |
| 3.000%, 09/22/2014 | | | 700 | | | | 735 | |
| 4.875%, 01/17/2017 | | | 1,025 | | | | 1,159 | |
| Federal Home Loan Bank | | | | | | | | |
| 5.125%, 09/10/2010 | | | 900 | | | | 909 | |
| 4.250%, 06/10/2011 | | | 1,500 | | | | 1,551 | |
| 1.875%, 06/20/2012 | | | 2,000 | | | | 2,044 | |
| 1.625%, 09/26/2012 | | | 515 | | | | 524 | |
| 1.500%, 01/16/2013 | | | 2,000 | | | | 2,025 | |
1.625%, 03/20/2013 6 | | | 850 | | | | 862 | |
| 3.125%, 12/13/2013 | | | 1,865 | | | | 1,971 | |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
1.125%, 07/27/2012 6 | | | 1,330 | | | | 1,339 | |
| 2.500%, 04/23/2014 | | | 2,825 | | | | 2,925 | |
| Federal National Mortgage Association | | | | | | | | |
0.875%, 01/12/2012 6 | | | 2,030 | | | | 2,037 | |
| 1.125%, 07/30/2012 | | | 1,355 | | | | 1,364 | |
| 1.800%, 12/28/2012 | | | 1,715 | | | | 1,724 | |
| 1.750%, 05/07/2013 | | | 1,150 | | | | 1,171 | |
| 2.375%, 07/28/2015 | | | 2,350 | | | | 2,374 | |
| 4.375%, 10/15/2015 | | | 1,600 | | | | 1,770 | |
| Tennessee Valley Authority | | | | | | | | |
| 5.625%, 01/18/2011 | | | 2,000 | | | | 2,057 | |
| 6.790%, 05/23/2012 | | | 3,175 | | | | 3,530 | |
| 6.000%, 03/15/2013 | | | 2,725 | | | | 3,077 | |
| | | | | | | | | |
| | | | | | | | 56,547 | |
| | | | | | | | | |
| U.S. Treasuries – 22.1% |
| U.S. Treasury Bonds | | | | | | | | |
| 8.750%, 05/15/2017 | | | 1,135 | | | | 1,597 | |
9.125%, 05/15/2018 6 | | | 560 | | | | 826 | |
| 9.000%, 11/15/2018 | | | 635 | | | | 940 | |
| 8.875%, 02/15/2019 | | | 340 | | | | 501 | |
| 8.125%, 08/15/2019 | | | 1,105 | | | | 1,574 | |
| 8.500%, 02/15/2020 | | | 1,250 | | | | 1,834 | |
| 8.750%, 08/15/2020 | | | 2,850 | | | | 4,273 | |
| 8.000%, 11/15/2021 | | | 1,245 | | | | 1,811 | |
| U.S. Treasury Notes | | | | | | | | |
| 3.500%, 01/15/2011 ◄ | | | 1,566 | | | | 1,592 | |
2.250%, 05/31/2014 6 | | | 475 | | | | 490 | |
2.375%, 08/31/2014 6 | | | 6,270 | | | | 6,482 | |
4.250%, 11/15/2014 6 | | | 2,000 | | | | 2,227 | |
| 2.250%, 01/31/2015 | | | 3,150 | | | | 3,228 | |
2.625%, 04/30/2016 6 | | | 5,850 | | | | 6,011 | |
| 7.500%, 11/15/2016 | | | 2,265 | | | | 2,968 | |
3.375%, 11/15/2019 6 | | | 1,185 | | | | 1,227 | |
| 3.500%, 05/15/2020 | | | 855 | | | | 895 | |
| | | | | | | | | |
| | | | | | | | 38,476 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $91,581) | | | | | | | 95,023 | |
| | | | | | | | | |
44 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Intermediate Government Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
U.S. Government Agency Mortgage-Backed Securities – 24.0% |
| Adjustable Rate Δ – 6.8% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 2.718%, 09/01/2033, #780836 | | $ | 1,078 | | | $ | 1,115 | |
| 4.067%, 03/01/2036, #848193 | | | 838 | | | | 864 | |
| 5.517%, 05/01/2037, #1H1396 | | | 1,370 | | | | 1,452 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 2.683%, 04/01/2034, #AD0486 | | | 1,890 | | | | 1,970 | |
| 2.774%, 03/01/2035, #819652 | | | 646 | | | | 675 | |
| 2.301%, 12/01/2035, #848390 | | | 653 | | | | 665 | |
| 2.935%, 07/01/2036, #886034 | | | 1,196 | | | | 1,249 | |
| 2.791%, 09/01/2036, #995949 | | | 743 | | | | 776 | |
| 5.440%, 03/01/2037, #914224 | | | 1,373 | | | | 1,455 | |
| 5.470%, 04/01/2037, #913187 | | | 1,154 | | | | 1,228 | |
| 2.725%, 03/01/2038, #AD0706 | | | 424 | | | | 443 | |
| | | | | | | | | |
| | | | | | | | 11,892 | |
| | | | | | | | | |
| Fixed Rate – 17.2% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 7.000%, 07/01/2011, #E20252 | | | 3 | | | | 3 | |
| 7.500%, 09/01/2012, #G10735 | | | 26 | | | | 27 | |
| 6.000%, 10/01/2013, #E72802 | | | 66 | | | | 71 | |
| 5.500%, 01/01/2014, #E00617 | | | 265 | | | | 280 | |
| 7.000%, 09/01/2014, #E00746 | | | 47 | | | | 51 | |
| 6.500%, 01/01/2028, #G00876 | | | 211 | | | | 234 | |
| 7.500%, 01/01/2030, #C35768 | | | 33 | | | | 38 | |
| 6.500%, 03/01/2031, #G01244 | | | 369 | | | | 411 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 7.000%, 11/01/2011, #250738 | | | 2 | | | | 2 | |
| 7.000%, 11/01/2011, #349630 | | | 1 | | | | 1 | |
| 7.000%, 11/01/2011, #351122 | | | 2 | | | | 2 | |
| 6.000%, 04/01/2013, #425550 | | | 40 | | | | 43 | |
| 6.500%, 08/01/2013, #251901 | | | 32 | | | | 35 | |
| 6.000%, 11/01/2013, #556195 | | | 61 | | | | 66 | |
| 7.000%, 10/01/2014, #252799 | | | 33 | | | | 35 | |
| 3.030%, 01/01/2015, #464373 | | | 1,900 | | | | 1,976 | |
| 3.120%, 01/01/2015, #464158 | | | 1,897 | | | | 1,959 | |
| 5.500%, 04/01/2016, #580516 | | | 270 | | | | 292 | |
| 6.500%, 07/01/2017, #254373 | | | 413 | | | | 450 | |
| 7.000%, 07/01/2017, #254414 | | | 425 | | | | 468 | |
| 5.500%, 12/01/2017, #673010 | | | 283 | | | | 306 | |
| 5.500%, 04/01/2018, #695765 | | | 390 | | | | 423 | |
| 4.500%, 05/01/2018, #254720 | | | 1,432 | | | | 1,530 | |
| 5.500%, 09/01/2019, #725793 | | | 1,728 | | | | 1,876 | |
| 6.000%, 01/01/2022, #254179 | | | 336 | | | | 370 | |
| 6.500%, 06/01/2022, #254344 | | | 336 | | | | 374 | |
| 7.000%, 09/01/2031, #596680 | | | 436 | | | | 483 | |
| 6.500%, 12/01/2031, #254169 | | | 475 | | | | 520 | |
| 6.000%, 04/01/2032, #745101 | | | 1,580 | | | | 1,703 | |
| 6.500%, 06/01/2032, #596712 | | | 1,197 | | | | 1,314 | |
| 6.000%, 08/01/2032, #656269 | | | 367 | | | | 396 | |
| 6.000%, 03/01/2034, #745324 | | | 1,487 | | | | 1,642 | |
| 6.500%, 08/01/2036, #887017 | | | 1,641 | | | | 1,802 | |
| 7.000%, 06/01/2037, #928519 | | | 1,184 | | | | 1,317 | |
| 5.500%, 06/01/2039, #995959 | | | 5,970 | | | | 6,417 | |
6.000%, 07/01/2039 « | | | 540 | | | | 586 | |
| Government National Mortgage Association Pool | | | | |
| 8.000%, 10/15/2010, #414750 | | | 1 | | | | 1 | |
| 7.500%, 12/15/2022, #347332 | | | 53 | | | | 60 | |
| 7.000%, 09/15/2027, #455304 | | | 12 | | | | 13 | |
| 6.500%, 07/15/2028, #780825 | | | 375 | | | | 424 | |
| 6.500%, 08/20/2031, #003120 | | | 139 | | | | 156 | |
| 7.500%, 12/15/2031, #570134 | | | 147 | | | | 168 | �� |
| 6.000%, 09/15/2034, #633605 | | | 1,352 | | | | 1,487 | |
| | | | | | | | | |
| | | | | | | | 29,812 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $39,931) | | | | | | | 41,704 | |
| | | | | | | | | |
Asset-Backed Securities – 8.5% |
| Automotive – 1.1% |
| Ally Auto Receivables Trust | | | | | | | | |
Series 2009-A, Class A3 | | | | | | | | |
2.330%, 06/17/2013 n | | | 500 | | | | 509 | |
| Bank of America Auto Trust | | | | | | | | |
Series 2009-2A, Class A2 | | | | | | | | |
1.160%, 02/15/2012 n | | | 381 | | | | 381 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-D, Class A2 | | | | | | | | |
| 1.210%, 01/15/2012 | | | 439 | | | | 440 | |
| Nissan Auto Lease Trust | | | | | | | | |
Series 2009-B, Class A3 | | | | | | | | |
| 2.070%, 01/15/2015 | | | 500 | | | | 505 | |
| | | | | | | | | |
| | | | | | | | 1,835 | |
| | | | | | | | | |
| Credit Cards – 0.4% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.667%, 08/15/2011 Δ | | | 355 | | | | 354 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | | 375 | | | | 375 | |
| | | | | | | | | |
| | | | | | | | 729 | |
| | | | | | | | | |
| Equipment Leases – 0.3% |
| CNH Equipment Trust | | | | | | | | |
Series 2009-C, Class A2 | | | | | | | | |
| 0.950%, 08/15/2012 | | | 500 | | | | 500 | |
| | | | | | | | | |
| Home Equity – 0.0% |
| GRMT Mortgage Loan Trust | | | | | | | | |
Series 2001-1A, Class M1 | | | | | | | | |
8.272%, 07/20/2031 n ¥ | | | 41 | | | | 37 | |
| | | | | | | | | |
| Manufactured Housing – 0.5% |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-B, Class M1 | | | | | | | | |
| 5.990%, 01/15/2037 | | | 750 | | | | 768 | |
| | | | | | | | | |
| Other – 5.6% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-T20, Class A4A | | | | | | | | |
| 5.297%, 10/12/2042 Δ | | | 550 | | | | 588 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2005-LP5, Class A4 | | | | | | | | |
| 4.982%, 05/10/2043 Δ | | | 550 | | | | 580 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2007-GG11, Class A4 | | | | | | | | |
| 5.736%, 12/10/2049 | | | 1,470 | | | | 1,446 | |
Series 2007-GG9, Class A4 | | | | | | | | |
| 5.444%, 03/10/2039 | | | 1,000 | | | | 1,002 | |
| GS Mortgage Securities Trust | | | | | | | | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.999%, 08/10/2045 Δ | | | 1,970 | | | | 1,937 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2006-IQ12, Class A4 | | | | | | | | |
| 5.332%, 12/15/2043 | | | 1,150 | | | | 1,177 | |
| Small Business Administration | | | | | | | | |
Series 2005-P10A, Class 1 | | | | | | | | |
| 4.638%, 02/10/2015 | | | 580 | | | | 612 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 45
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Government Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Series 2005-P10B, Class 1 | | | | | | | | |
| 4.940%, 08/10/2015 | | $ | 378 | | | $ | 403 | |
Series 2010-10A, Class 1 | | | | | | | | |
| 4.108%, 03/10/2020 | | | 2,000 | | | | 2,032 | |
| | | | | | | | | |
| | | | | | | | 9,777 | |
| | | | | | | | | |
| Utilities – 0.6% |
| Centerpoint Energy Transition | | | | | | | | |
Series 2008-A, Class A1 | | | | | | | | |
| 4.192%, 02/01/2020 | | | 1,007 | | | | 1,086 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $14,332) | | | | | | | 14,732 | |
| | | | | | | | | |
Corporate Bonds – 3.9% |
| Banking – 1.8% |
| Bank of America | | | | | | | | |
| Series MTN | | | | | | | | |
| 2.100%, 04/30/2012 | | | 1,000 | | | | 1,024 | |
| Citibank | | | | | | | | |
| 1.750%, 12/28/2012 | | | 1,000 | | | | 1,018 | |
| JPMorgan Chase | | | | | | | | |
| 2.200%, 06/15/2012 | | | 1,000 | | | | 1,027 | |
| | | | | | | | | |
| | | | | | | | 3,069 | |
| | | | | | | | | |
| Brokerage – 1.2% |
| Goldman Sachs | | | | | | | | |
3.250%, 06/15/2012 6 | | | 1,000 | | | | 1,047 | |
| Morgan Stanley | | | | | | | | |
2.250%, 03/13/2012 6 | | | 1,000 | | | | 1,026 | |
| | | | | | | | | |
| | | | | | | | 2,073 | |
| | | | | | | | | |
| Finance – 0.9% |
| GMAC | | | | | | | | |
| 1.750%, 10/30/2012 | | | 1,070 | | | | 1,089 | |
| Private Export Funding | | | | | | | | |
| 3.050%, 10/15/2014 | | | 550 | | | | 575 | |
| | | | | | | | | |
| | | | | | | | 1,664 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $6,715) | | | | | | | 6,806 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
U.S. Government Agency
Mortgage-Backed Securities – 3.8% |
| Fixed Rate – 3.8% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2382, Class DA | | | | | | | | |
| 5.500%, 10/15/2030 | | | 10 | | | | 11 | |
| Series 2629, Class BO | | | | | | | | |
| 3.250%, 03/15/2018 | | | 853 | | | | 880 | |
| Series 2843, Class BH | | | | | | | | |
| 4.000%, 01/15/2018 | | | 797 | | | | 818 | |
| Federal National Mortgage Association | | | | | | | | |
Series 2002-W1, Class 2A | | | | | | | | |
| 7.500%, 02/25/2042 | | | 585 | | | | 673 | |
Series 2003-92, Class PD | | | | | | | | |
| 4.500%, 03/25/2017 | | | 1,492 | | | | 1,551 | |
Series 2009-M1, Class A1 | | | | | | | | |
| 3.400%, 07/25/2019 | | | 960 | | | | 994 | |
Series 2010-M1, Class A1 | | | | | | | | |
| 3.305%, 06/25/2019 | | | 1,577 | | | | 1,623 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation — U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $6,418) | | | | | | | 6,550 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 3.3% |
| Fixed Rate – 3.3% |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-S1, Class 2A | | | | | | | | |
3.250%, 04/25/2038 n | | | 1,314 | | | | 1,334 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.848%, 03/25/2043 ¥ | | | 868 | | | | 601 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-4F, Class B1 | | | | | | | | |
5.737%, 05/25/2035 ¥ | | | 1,297 | | | | 752 | |
| Impac Secured Assets | | | | | | | | |
Series 2000-3, Class M1 | | | | | | | | |
8.000%, 10/25/2030 ¥ | | | 392 | | | | 347 | |
| Lehman Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.420%, 07/25/2047 | | | 604 | | | | 568 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2005-2, Class 1A3 | | | | | | | | |
| 6.500%, 03/25/2035 | | | 520 | | | | 458 | |
| Residential Accredit Loans | | | | | | | | |
Series 2003-QS12, Class M1 | | | | | | | | |
5.000%, 06/25/2018 ¥ | | | 651 | | | | 510 | |
| Residential Asset Mortgage Products | | | | | | | | |
Series 2004-SL4, Class A3 | | | | | | | | |
| 6.500%, 07/25/2032 | | | 858 | | | | 886 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2007-9, Class 1A4 | | | | | | | | |
| 5.500%, 07/25/2037 | | | 600 | | | | 252 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation — Private Mortgage-Backed Securities | | | | | | | | |
(Cost $6,865) | | | | | | | 5,708 | |
| | | | | | | | | |
Short-Term Investments – 1.3% |
| Money Market Funds – 1.2% |
First American Government Obligations Fund, Class Z, 0.015% Å Ω | | | 1,598,060 | | | | 1,598 | |
First American U.S. Treasury Money Market Fund, Class Z, 0.000% Å Ω | | | 619,655 | | | | 620 | |
| | | | | | | | | |
| | | | | | | | 2,218 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.1% |
U.S. Treasury Bills o | | | | | | | | |
| 0.080%, 07/15/2010 | | $ | 25 | | | | 25 | |
| 0.205%, 12/16/2010 | | | 125 | | | | 125 | |
| | | | | | | | | |
| | | | | | | | 150 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $2,368) | | | | | | | 2,368 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 13.6% |
| Mount Vernon Securities Lending Prime Portfolio | | | | |
| 0.282% Ω † | | | | | | | | |
(Cost $23,635) | | | 23,634,965 | | | | 23,635 | |
| | | | | | | | | |
Total Investments 5 – 113.1% | | | | | | | | |
(Cost $191,845) | | | | | | | 196,526 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (13.1)% | | | | | | | (22,843 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 173,683 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $23,146 at June 30, 2010. See note 2 in Notes to Financial Statements. |
46 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
Intermediate Government Bond Fund (concluded)
| | |
| ◄ | | 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. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $583 or 0.3% 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, 2010. |
| |
| 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, 2010, the fair value of these investments was $2,261 or 1.3% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $2,247 or 1.3% 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts. Yield shown is annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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, 2010, the cost of investments for federal income tax purposes was $192,220. The approximate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 5,994 | |
| Gross unrealized depreciation | | | (1,688 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 4,306 | |
| | | | | |
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 2010 | | | | 55 | | | $12,036 | | $ | 48 | |
U.S. Treasury 5 Year
Note Futures | | | September 2010 | | | | (37 | ) | | (4,379) | | | (22 | ) |
U.S. Treasury 10 Year
Note Futures | | | September 2010 | | | | 44 | | | 5,392 | | | 94 | |
U.S. Treasury Long
Bond Futures | | | September 2010 | | | | (21 | ) | | (2,678) | | | (62 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 58 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | |
| Intermediate Term Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Corporate Bonds – 52.2% |
| Banking – 9.1% |
| Bank of America | | | | | | | | |
| 5.650%, 05/01/2018 | | $ | 3,120 | | | $ | 3,197 | |
| 5.625%, 07/01/2020 | | | 4,080 | | | | 4,112 | |
| 8.000%, 12/29/2049 Δ | | | 4,310 | | | | 4,163 | |
| Barclays Bank | | | | | | | | |
5.125%, 01/08/2020 ¬ | | | 3,630 | | | | 3,611 | |
| Citigroup | | | | | | | | |
| 6.125%, 11/21/2017 | | | 4,590 | | | | 4,794 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2077 Δ | | | 1,475 | | | | 1,437 | |
| Comerica Bank | | | | | | | | |
| 5.750%, 11/21/2016 | | | 3,245 | | | | 3,461 | |
| Deutsche Bank | | | | | | | | |
3.875%, 08/18/2014 ¬ | | | 3,205 | | | | 3,311 | |
| Fifth Third Bancorp | | | | | | | | |
6.250%, 05/01/2013 6 | | | 1,495 | | | | 1,627 | |
| JPMorgan Chase | | | | | | | | |
| 5.150%, 10/01/2015 | | | 3,290 | | | | 3,520 | |
| Series 1 | | | | | | | | |
| 7.900%, 04/29/2049 Δ | | | 4,085 | | | | 4,212 | |
| JPMorgan Chase Capital XXII | | | | | | | | |
| Series V | | | | | | | | |
| 6.450%, 02/02/2037 | | | 1,750 | | | | 1,651 | |
| Keycorp | | | | | | | | |
6.500%, 05/14/2013 6 | | | 1,000 | | | | 1,094 | |
| Lloyds TSB Bank | | | | | | | | |
4.375%, 01/12/2015 ¬ n | | | 8,000 | | | | 7,709 | |
| North Fork Bancorp | | | | | | | | |
| 5.875%, 08/15/2012 | | | 3,130 | | | | 3,247 | |
| PNC Funding | | | | | | | | |
| 3.625%, 02/08/2015 | | | 3,300 | | | | 3,397 | |
| Royal Bank of Scotland | | | | | | | | |
6.400%, 10/21/2019 ¬ | | | 1,000 | | | | 1,014 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 2,040 | | | | 2,338 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 1,170 | | | | 1,003 | |
| Wachovia | | | | | | | | |
| 5.750%, 06/15/2017 | | | 1,450 | | | | 1,584 | |
| Wells Fargo | | | | | | | | |
| 4.375%, 01/31/2013 | | | 1,840 | | | | 1,945 | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 3,365 | | | | 3,465 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 3,545 | | | | 3,580 | |
| | | | | | | | | |
| | | | | | | | 69,472 | |
| | | | | | | | | |
| Basic Industry – 3.1% |
| Arcelormittal | | | | | | | | |
5.375%, 06/01/2013 ¬ 6 | | | 7,835 | | | | 8,239 | |
| Celulosa Arauco Constitucion | | | | | | | | |
5.625%, 04/20/2015 ¬ 6 | | | 2,000 | | | | 2,149 | |
| Incitec Pivot Finance | | | | | | | | |
6.000%, 12/10/2019 n | | | 2,255 | | | | 2,310 | |
| Newmont Mining | | | | | | | | |
5.125%, 10/01/2019 6 | | | 3,720 | | | | 3,986 | |
| Rio Tinto Financial | | | | | | | | |
5.875%, 07/15/2013 ¬ | | | 3,300 | | | | 3,616 | |
| Southern Copper | | | | | | | | |
| 5.375%, 04/16/2020 | | | 2,000 | | | | 2,005 | |
| Vale Overseas | | | | | | | | |
6.250%, 01/11/2016 ¬ | | | 1,415 | | | | 1,549 | |
| | | | | | | | | |
| | | | | | | | 23,854 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 47
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Brokerage – 2.1% |
| Goldman Sachs Capital II | | | | | | | | |
5.793%, 12/29/2049 Δ 6 | | $ | 1,165 | | | $ | 880 | |
| Goldman Sachs Group | | | | | | | | |
| 6.150%, 04/01/2018 | | | 3,845 | | | | 4,028 | |
| Merrill Lynch | | | | | | | | |
| 6.050%, 05/16/2016 | | | 4,625 | | | | 4,779 | |
| Morgan Stanley | | | | | | | | |
| 5.375%, 10/15/2015 | | | 4,760 | | | | 4,820 | |
| 7.300%, 05/13/2019 | | | 1,480 | | | | 1,592 | |
| | | | | | | | | |
| | | | | | | | 16,099 | |
| | | | | | | | | |
| Capital Goods – 1.4% |
| Boeing | | | | | | | | |
| 4.875%, 02/15/2020 | | | 1,850 | | | | 2,037 | |
| John Deere Capital | | | | | | | | |
| Series MTN | | | | | | | | |
| 4.500%, 04/03/2013 | | | 1,990 | | | | 2,143 | |
| L-3 Communications | | | | | | | | |
| 4.750%, 07/15/2020 | | | 1,885 | | | | 1,899 | |
| Tyco International | | | | | | | | |
3.375%, 10/15/2015 ¬ | | | 4,405 | | | | 4,548 | |
| | | | | | | | | |
| | | | | | | | 10,627 | |
| | | | | | | | | |
| Communications – 7.2% |
| AT&T | | | | | | | | |
5.800%, 02/15/2019 6 | | | 3,350 | | | | 3,772 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 ¬ n 6 | | | 1,845 | | | | 2,071 | |
| British Telecom | | | | | | | | |
5.950%, 01/15/2018 ¬ | | | 2,415 | | | | 2,518 | |
| CBS | | | | | | | | |
5.750%, 04/15/2020 6 | | | 1,355 | | | | 1,454 | |
| Comcast | | | | | | | | |
| 5.150%, 03/01/2020 | | | 1,930 | | | | 2,021 | |
| Deutsche Telekom | | | | | | | | |
5.875%, 08/20/2013 ¬ | | | 6,560 | | | | 7,182 | |
| DirecTV Holdings | | | | | | | | |
| 3.550%, 03/15/2015 | | | 2,850 | | | | 2,869 | |
| 5.200%, 03/15/2020 | | | 2,800 | | | | 2,918 | |
| Discovery Communications | | | | | | | | |
5.050%, 06/01/2020 6 | | | 3,200 | | | | 3,326 | |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | | 1,170 | | | | 1,247 | |
| NBC Universal | | | | | | | | |
5.150%, 04/30/2020 n | | | 3,895 | | | | 4,062 | |
| News America | | | | | | | | |
5.650%, 08/15/2020 6 | | | 2,000 | | | | 2,209 | |
| Rogers Communications | | | | | | | | |
6.800%, 08/15/2018 ¬ | | | 1,390 | | | | 1,643 | |
| Telecom Italia Capital | | | | | | | | |
7.175%, 06/18/2019 ¬ | | | 2,570 | | | | 2,767 | |
| Time Warner Cable | | | | | | | | |
| 8.250%, 02/14/2014 | | | 2,000 | | | | 2,364 | |
| 6.750%, 07/01/2018 | | | 2,025 | | | | 2,324 | |
| Verizon Communications | | | | | | | | |
| 5.250%, 04/15/2013 | | | 5,053 | | | | 5,540 | |
| 8.750%, 11/01/2018 | | | 3,270 | | | | 4,251 | |
| | | | | | | | | |
| | | | | | | | 54,538 | |
| | | | | | | | | |
| Consumer Cyclical – 2.8% |
| American Honda Finance | | | | | | | | |
| Series MTN | | | | | | | | |
4.625%, 04/02/2013 n | | | 3,660 | | | | 3,920 | |
| Home Depot | | | | | | | | |
| 5.875%, 12/16/2036 | | | 1,775 | | | | 1,820 | |
| McDonald’s | | | | | | | | |
| Series MTN | | | | | | | | |
5.350%, 03/01/2018 6 | | | 1,740 | | | | 1,993 | |
| R.R. Donnelley & Sons | | | | | | | | |
| 7.625%, 06/15/2020 | | | 1,195 | | | | 1,185 | |
| Target | | | | | | | | |
| 5.125%, 01/15/2013 | | | 3,580 | | | | 3,906 | |
| Viacom | | | | | | | | |
5.625%, 09/15/2019 6 | | | 2,000 | | | | 2,191 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 3,165 | | | | 3,390 | |
| Yum! Brands | | | | | | | | |
| 8.875%, 04/15/2011 | | | 2,740 | | | | 2,894 | |
| | | | | | | | | |
| | | | | | | | 21,299 | |
| | | | | | | | | |
| Consumer Non Cyclical – 5.5% |
| Altria Group | | | | | | | | |
| 9.700%, 11/10/2018 | | | 3,000 | | | | 3,799 | |
| Anheuser-Busch InBev Worldwide | | | | | | | | |
7.750%, 01/15/2019 n | | | 3,450 | | | | 4,187 | |
| Baxter International | | | | | | | | |
| 4.500%, 08/15/2019 | | | 1,500 | | | | 1,604 | |
| Bunge Limited Finance | | | | | | | | |
| 8.500%, 06/15/2019 | | | 1,135 | | | | 1,355 | |
| ConAgra Foods | | | | | | | | |
| 5.875%, 04/15/2014 | | | 2,595 | | | | 2,934 | |
| Covidien International | | | | | | | | |
5.450%, 10/15/2012 ¬ | | | 2,240 | | | | 2,443 | |
| Genentech | | | | | | | | |
| 4.750%, 07/15/2015 | | | 1,650 | | | | 1,826 | |
| Kellogg | | | | | | | | |
| 4.450%, 05/30/2016 | | | 2,620 | | | | 2,862 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 1,225 | | | | 1,423 | |
| 5.375%, 02/10/2020 | | | 3,500 | | | | 3,751 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 1,815 | | | | 2,013 | |
| Reynolds American | | | | | | | | |
| 6.750%, 06/15/2017 | | | 3,000 | | | | 3,250 | |
| Roche Holdings | | | | | | | | |
6.000%, 03/01/2019 n | | | 2,100 | | | | 2,446 | |
| Schering-Plough | | | | | | | | |
| 5.550%, 12/01/2013 | | | 4,595 | | | | 5,155 | |
| UnitedHealth Group | | | | | | | | |
| 4.875%, 02/15/2013 | | | 2,965 | | | | 3,186 | |
| | | | | | | | | |
| | | | | | | | 42,234 | |
| | | | | | | | | |
| Electric – 2.3% |
| FirstEnergy Solutions | | | | | | | | |
| 6.050%, 08/15/2021 | | | 500 | | | | 510 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 5.875%, 10/01/2012 | | | 3,445 | | | | 3,730 | |
| National Rural Utilities | | | | | | | | |
| 10.375%, 11/01/2018 | | | 3,100 | | | | 4,299 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 2,100 | | | | 2,378 | |
| PPL Energy Supply | | | | | | | | |
| 6.300%, 07/15/2013 | | | 2,000 | | | | 2,218 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 3,780 | | | | 4,350 | |
| | | | | | | | | |
| | | | | | | | 17,485 | |
| | | | | | | | | |
| Energy – 4.1% |
| Anadarko Petroleum | | | | | | | | |
5.950%, 09/15/2016 6 | | | 1,515 | | | | 1,304 | |
| Cenovus Energy | | | | | | | | |
5.700%, 10/15/2019 ¬ n | | | 2,870 | | | | 3,135 | |
| ConocoPhillips | | | | | | | | |
6.000%, 01/15/2020 6 | | | 3,280 | | | | 3,844 | |
48 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Hess | | | | | | | | |
| 8.125%, 02/15/2019 | | $ | 2,750 | | | $ | 3,428 | |
| Marathon Oil | | | | | | | | |
| 7.500%, 02/15/2019 | | | 1,635 | | | | 1,961 | |
| Nexen | | | | | | | | |
5.650%, 05/15/2017 ¬ | | | 4,180 | | | | 4,536 | |
| Petroleos Mexicanos | | | | | | | | |
4.875%, 03/15/2015 ¬ n 6 | | | 1,000 | | | | 1,035 | |
| Suncor Energy | | | | | | | | |
6.100%, 06/01/2018 ¬ | | | 1,275 | | | | 1,436 | |
| Talisman Energy | | | | | | | | |
7.750%, 06/01/2019 ¬ | | | 2,500 | | | | 3,069 | |
| Valero Energy | | | | | | | | |
4.500%, 02/01/2015 6 | | | 1,315 | | | | 1,351 | |
| Weatherford International | | | | | | | | |
| 5.950%, 06/15/2012 | | | 3,890 | | | | 4,167 | |
| Woodside Finance | | | | | | | | |
4.500%, 11/10/2014 ¬ n | | | 1,880 | | | | 1,917 | |
| | | | | | | | | |
| | | | | | | | 31,183 | |
| | | | | | | | | |
| Finance – 5.5% |
| American Express | | | | | | | | |
| 7.250%, 05/20/2014 | | | 1,725 | | | | 1,961 | |
| American Express Centurion | | | | | | | | |
| Series BKNT | | | | | | | | |
| 5.550%, 10/17/2012 | | | 2,035 | | | | 2,187 | |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 2,405 | | | | 2,723 | |
| Ameriprise Financial | | | | | | | | |
| 5.300%, 03/15/2020 | | | 3,330 | | | | 3,479 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 3,140 | | | | 3,920 | |
| Capital One Financial | | | | | | | | |
| 6.150%, 09/01/2016 | | | 1,775 | | | | 1,878 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 2,395 | | | | 2,497 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 Δ ¬ n | | | 1,330 | | | | 978 | |
| Discover Financial Services | | | | | | | | |
| 10.250%, 07/15/2019 | | | 2,245 | | | | 2,672 | |
| General Electric Capital | | | | | | | | |
4.800%, 05/01/2013 6 | | | 6,235 | | | | 6,646 | |
| Series A | | | | | | | | |
| 3.750%, 11/14/2014 | | | 2,500 | | | | 2,557 | |
| Series MTN | | | | | | | | |
5.625%, 09/15/2017 6 | | | 3,955 | | | | 4,228 | |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | | 2,635 | | | | 2,470 | |
| Private Export Funding | | | | | | | | |
| 3.050%, 10/15/2014 | | | 575 | | | | 601 | |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 ¬ n | | | 2,990 | | | | 3,048 | |
| | | | | | | | | |
| | | | | | | | 41,845 | |
| | | | | | | | | |
| Industrial Other – 0.8% |
| Johnson Controls | | | | | | | | |
5.250%, 01/15/2011 6 | | | 4,720 | | | | 4,795 | |
| Thermo Fisher Scientific | | | | | | | | |
| 3.200%, 05/01/2015 | | | 1,265 | | | | 1,305 | |
| | | | | | | | | |
| | | | | | | | 6,100 | |
| | | | | | | | | |
| Insurance – 3.8% |
| Aflac | | | | | | | | |
8.500%, 05/15/2019 6 | | | 3,000 | | | | 3,609 | |
| Allied World Assurance | | | | | | | | |
7.500%, 08/01/2016 ¬ | | | 2,860 | | | | 3,150 | |
| American International Group | | | | | | | | |
| 8.250%, 08/15/2018 | | | 3,000 | | | | 3,038 | |
| Hartford Financial Services Group | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 3,055 | | | | 3,082 | |
| Lincoln National | | | | | | | | |
8.750%, 07/01/2019 6 | | | 2,720 | | | | 3,334 | |
| Met Life Global Funding I | | | | | | | | |
5.125%, 04/10/2013 n | | | 3,730 | | | | 4,034 | |
| MetLife | | | | | | | | |
| 7.717%, 02/15/2019 | | | 430 | | | | 512 | |
| Pacific Life Global Funding | | | | | | | | |
5.150%, 04/15/2013 n | | | 2,205 | | | | 2,312 | |
| Pacific Life Insurance | | | | | | | | |
6.000%, 02/10/2020 n 6 | | | 965 | | | | 1,024 | |
| Prudential Financial | | | | | | | | |
| 5.100%, 09/20/2014 | | | 3,235 | | | | 3,440 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2067 n Δ | | | 1,530 | | | | 1,369 | |
| | | | | | | | | |
| | | | | | | | 28,904 | |
| | | | | | | | | |
| Natural Gas – 0.4% |
| Kinder Morgan Energy Partners | | | | | | | | |
| 5.000%, 12/15/2013 | | | 1,135 | | | | 1,208 | |
| Transocean | | | | | | | | |
6.000%, 03/15/2018 ¬ 6 | | | 1,820 | | | | 1,675 | |
| | | | | | | | | |
| | | | | | | | 2,883 | |
| | | | | | | | | |
| Other Utility – 0.2% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 1,420 | | | | 1,566 | |
| | | | | | | | | |
| Real Estate – 1.7% |
| Health Care – REIT | | | | | | | | |
| 5.875%, 05/15/2015 | | | 1,875 | | | | 2,021 | |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 1,960 | | | | 2,028 | |
| Prologis – REIT | | | | | | | | |
6.875%, 03/15/2020 6 | | | 3,545 | | | | 3,351 | |
| Simon Property Group – REIT | | | | | | | | |
| 5.650%, 02/01/2020 | | | 2,000 | | | | 2,118 | |
| Vornado Realty – REIT | | | | | | | | |
| 4.250%, 04/01/2015 | | | 3,315 | | | | 3,296 | |
| | | | | | | | | |
| | | | | | | | 12,814 | |
| | | | | | | | | |
| Sovereign – 0.2% |
| United Mexican States | | | | | | | | |
5.625%, 01/15/2017 ¬ | | | 1,400 | | | | 1,537 | |
| | | | | | | | | |
| Transportation – 2.0% |
| AEP Texas Central | | | | | | | | |
| Series A-2 | | | | | | | | |
| 4.980%, 07/01/2013 | | | 9,095 | | | | 9,595 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 1,445 | | | | 1,627 | |
| Union Pacific | | | | | | | | |
5.750%, 11/15/2017 6 | | | 3,320 | | | | 3,748 | |
| | | | | | | | | |
| | | | | | | | 14,970 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $368,317) | | | | | | | 397,410 | |
| | | | | | | | | |
Asset-Backed Securities – 19.9% |
| Automotive – 5.4% |
| Ally Auto Receivables Trust | | | | | | | | |
Series 2009-A, Class A3 | | | | | | | | |
2.330%, 06/17/2013 n | | | 3,000 | | | | 3,052 | |
| Bank of America Auto Trust | | | | | | | | |
Series 2009-2A, Class A2 | | | | | | | | |
1.160%, 02/15/2012 n | | | 2,006 | | | | 2,008 | |
Series 2010-2, Class A3 | | | | | | | | |
| 1.310%, 07/15/2014 | | | 2,750 | | | | 2,758 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 49
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Capital One Prime Auto Receivables Trust | | | | | | | | |
| Series 2006-2, Class A-4 | | | | | | | | |
| 4.940%, 07/15/2012 | | $ | 1,436 | | | $ | 1,443 | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.890%, 01/15/2012 | | | 331 | | | | 333 | |
| Chrysler Financial Lease Trust | | | | | | | | |
Series 2010-A, Class A2 | | | | | | | | |
1.780%, 06/15/2011 n | | | 4,285 | | | | 4,300 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 4,000 | | | | 4,100 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2005-4, Class A2 | | | | | | | | |
| 4.850%, 06/15/2012 | | | 857 | | | | 858 | |
| Hertz Vehicle Financing | | | | | | | | |
Series 2009-2A, Class A1 | | | | | | | | |
4.260%, 03/25/2014 n | | | 5,000 | | | | 5,210 | |
| Huntington Auto Trust | | | | | | | | |
Series 2009-1A, Class A2 | | | | | | | | |
3.480%, 07/15/2011 n | | | 74 | | | | 74 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
Series 2007-B, Class A4 | | | | | | | | |
| 5.160%, 03/15/2014 | | | 5,464 | | | | 5,650 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
Series 2010-1, Class A2 | | | | | | | | |
| 1.360%, 03/15/2013 | | | 6,445 | | | | 6,450 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.900%, 02/15/2012 | | | 75 | | | | 76 | |
Series 2008-1, Class A3 | | | | | | | | |
| 4.160%, 04/16/2012 | | | 531 | | | | 535 | |
| Wachovia Auto Loan Owner Trust | | | | | | | | |
Series 2006-2, Class A4 | | | | | | | | |
5.230%, 03/20/2012 n | | | 269 | | | | 270 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2007-B, Class A3A | | | | | | | | |
| 5.280%, 01/17/2012 | | | 198 | | | | 199 | |
Series 2010-A, Class A2 | | | | | | | | |
| 0.700%, 06/15/2012 | | | 3,895 | | | | 3,892 | |
| | | | | | | | | |
| | | | | | | | 41,208 | |
| | | | | | | | | |
| Credit Cards – 5.2% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.680%, 08/15/2011 Δ | | | 1,930 | | | | 1,926 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2007-A8, Class A8 | | | | | | | | |
| 5.590%, 11/17/2014 | | | 5,855 | | | | 6,346 | |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.930%, 04/15/2013 Δ | | | 2,500 | | | | 2,504 | |
| Cabela’s Master Credit Card Trust | | | | | | | | |
Series 2008-1A, Class A2 | | | | | | | | |
1.187%, 12/15/2013 n Δ | | | 2,910 | | | | 2,915 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2008-A3, Class A3 | | | | | | | | |
| 5.050%, 02/15/2016 | | | 4,795 | | | | 5,246 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 3,000 | | | | 3,088 | |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2006-A4, Class A4 | | | | | | | | |
| 5.450%, 05/10/2013 | | | 11,195 | | | | 11,631 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 3,530 | | | | 4,061 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | | 1,940 | | | | 1,939 | |
| | | | | | | | | |
| | | | | | | | 39,656 | |
| | | | | | | | | |
| Equipment Leases – 0.3% |
| Caterpillar Financial Asset Trust | | | | | | | | |
Series 2007-A, Class A3A | | | | | | | | |
| 5.340%, 06/25/2012 | | | 1,109 | | | | 1,117 | |
| GE Equipment Small Ticket | | | | | | | | |
Series 2009-1, Class A1 | | | | | | | | |
0.382%, 11/15/2010 n | | | 1,022 | | | | 1,022 | |
| | | | | | | | | |
| | | | | | | | 2,139 | |
| | | | | | | | | |
| Home Equity – 2.3% |
| Amresco Residential Security Mortgage | | | | | | | | |
Series 1997-3, Class A9 | | | | | | | | |
6.960%, 03/25/2027 ¥ | | | 25 | | | | 24 | |
| Contimortgage Home Equity Loan Trust | | | | | | | | |
Series 1997-2, Class A9 | | | | | | | | |
7.900%, 04/15/2028 ¥ | | | 13 | | | | 12 | |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-5, Class AF5 | | | | | | | | |
| 5.739%, 02/25/2034 | | | 3,181 | | | | 2,708 | |
| RBSSP Resecuritization Trust | | | | | | | | |
Series 2009-11, Class 4A1 | | | | | | | | |
2.095%, 12/26/2037 n Δ | | | 1,062 | | | | 1,057 | |
Series 2009-13, Class 5A1 | | | | | | | | |
0.445%, 11/26/2036 n Δ | | | 3,780 | | | | 3,643 | |
Series 2009-8, Class 3A1 | | | | | | | | |
0.485%, 03/26/2037 n Δ | | | 980 | | | | 956 | |
Series 2009-9, Class 9A1 | | | | | | | | |
0.565%, 09/26/2037 n Δ | | | 3,209 | | | | 2,968 | |
Series 2010-4, Class 1A1 | | | | | | | | |
0.455%, 03/26/2036 n Δ | | | 4,526 | | | | 3,910 | |
| Renaissance Home Equity Loan Trust | | | | | | | | |
Series 2005-3, Class AF4 | | | | | | | | |
| 5.140%, 11/25/2035 | | | 2,590 | | | | 1,867 | |
| | | | | | | | | |
| | | | | | | | 17,145 | |
| | | | | | | | | |
| Manufactured Housing – 0.2% |
| Green Tree Financial | | | | | | | | |
Series 1996-9, Class A5 | | | | | | | | |
7.200%, 01/15/2028 ¥ | | | 76 | | | | 78 | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 1,184 | | | | 1,209 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 550 | | | | 552 | |
| | | | | | | | | |
| | | | | | | | 1,839 | |
| | | | | | | | | |
| Other – 5.6% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 Δ | | | 4,000 | | | | 4,205 | |
Series 2007-PW15, Class A2 | | | | | | | | |
| 5.205%, 02/11/2044 | | | 3,605 | | | | 3,723 | |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 n ¥ Δ | | | 1,470 | | | | 512 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-CD1, Class A4 | | | | | | | | |
| 5.397%, 07/15/2044 Δ | | | 5,800 | | | | 6,213 | |
Series 2007-CD4, Class A2B | | | | | | | | |
5.205%, 12/11/2049 6 | | | 2,340 | | | | 2,408 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | | 2,430 | | | | 2,424 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 257 | | | | 257 | |
50 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-GG6, Class A2 | | | | | | | | |
| 5.506%, 04/10/2038 | | $ | 3,466 | | | $ | 3,519 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2010-C1, Class A1 | | | | | | | | |
3.853%, 06/15/2043 n | | | 4,715 | | | | 4,831 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.330%, 07/12/2038 ¥ Δ | | | 1,455 | | | | 973 | |
| Small Business Administration | | | | | | | | |
Series 2006-P10A, Class 1 | | | | | | | | |
| 5.408%, 02/10/2016 | | | 3,381 | | | | 3,641 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C30, Class A3 | | | | | | | | |
| 5.246%, 12/15/2043 | | | 5,940 | | | | 5,938 | |
Series 2007-C34, Class A2 | | | | | | | | |
| 5.569%, 05/15/2046 | | | 3,830 | | | | 3,961 | |
| | | | | | | | | |
| | | | | | | | 42,605 | |
| | | | | | | | | |
| Utilities – 0.9% |
| CenterPoint Energy Transition | | | | | | | | |
Series 2008-A, Class A1 | | | | | | | | |
| 4.192%, 02/01/2020 | | | 5,229 | | | | 5,642 | |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-1, Class A3 | | | | | | | | |
| 4.140%, 09/25/2012 | | | 1,066 | | | | 1,075 | |
| | | | | | | | | |
| | | | | | | | 6,717 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $148,096) | | | | | | | 151,309 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 9.3% |
| U.S. Agency Debentures – 1.9% |
| Federal Agricultural Mortgage Corporation | | | | | | | | |
5.500%, 07/15/2011 n | | | 13,900 | | | | 14,606 | |
| | | | | | | | | |
| U.S. Treasuries – 7.4% |
| U.S. Treasury Notes | | | | | | | | |
0.875%, 05/31/2011 6 | | | 11,300 | | | | 11,353 | |
| 1.000%, 08/31/2011 | | | 2,680 | | | | 2,697 | |
1.375%, 10/15/2012 6 | | | 3,950 | | | | 4,009 | |
1.375%, 01/15/2013 6 | | | 2,505 | | | | 2,539 | |
2.625%, 06/30/2014 6 | | | 3,090 | | | | 3,230 | |
2.375%, 08/31/2014 6 | | | 1,905 | | | | 1,969 | |
2.375%, 02/28/2015 6 | | | 6,720 | | | | 6,926 | |
| 2.500%, 03/31/2015 | | | 3,835 | | | | 3,974 | |
2.125%, 05/31/2015 6 | | | 2,260 | | | | 2,299 | |
3.625%, 08/15/2019 6 | | | 750 | | | | 793 | |
3.375%, 11/15/2019 6 | | | 2,650 | | | | 2,745 | |
| 3.625%, 02/15/2020 | | | 3,555 | | | | 3,756 | |
3.500%, 05/15/2020 6 | | | 9,590 | | | | 10,037 | |
| | | | | | | | | |
| | | | | | | | 56,327 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $68,824) | | | | | | | 70,933 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 7.9% |
| Adjustable Rate Δ – 5.0% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 3.185%, 01/01/2028, #786281 | | | 719 | | | | 749 | |
| 2.748%, 04/01/2029, #847190 | | | 872 | | | | 912 | |
| 2.724%, 10/01/2030, #847209 | | | 2,410 | | | | 2,514 | |
| 2.726%, 05/01/2031, #847161 | | | 754 | | | | 787 | |
| 2.761%, 09/01/2033, #847210 | | | 2,037 | | | | 2,127 | |
| 2.856%, 01/01/2038, #848282 | | | 3,661 | | | | 3,805 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 2.756%, 09/01/2033, #725111 | | | 1,333 | | | | 1,393 | |
| 3.446%, 10/01/2033, #879906 | | | 5,043 | | | | 5,263 | |
| 2.774%, 03/01/2035, #819652 | | | 4,292 | | | | 4,485 | |
| 2.301%, 12/01/2035, #848390 | | | 1,741 | | | | 1,774 | |
| 2.758%, 07/01/2036, #AE0058 | | | 3,610 | | | | 3,762 | |
| 2.935%, 07/01/2036, #886034 | | | 4,253 | | | | 4,444 | |
| 2.791%, 09/01/2036, #995949 | | | 2,836 | | | | 2,961 | |
| 2.725%, 03/01/2038, #AD0706 | | | 3,169 | | | | 3,305 | |
| | | | | | | | | |
| | | | | | | | 38,281 | |
| | | | | | | | | |
| Fixed Rate – 2.9% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series K001, Class A3 | | | | | | | | |
| 5.469%, 01/25/2012 | | | 1,893 | | | | 1,968 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 3.131%, 01/01/2015, #464373 | | | 2,600 | | | | 2,703 | |
| 4.000%, 07/01/2018, #357414 | | | 5,554 | | | | 5,873 | |
| 4.000%, 05/01/2020, #AD0107 | | | 5,359 | | | | 5,664 | |
| 4.000%, 03/01/2022, #890134 | | | 5,383 | | | | 5,689 | |
| | | | | | | | | |
| | | | | | | | 21,897 | |
| | | | | | | | | |
Total U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $59,149) | | | | | | | 60,178 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 7.5% |
| Adjustable Rate Δ – 1.8% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 2755, Class FO | | | | | | | | |
| 0.800%, 04/15/2032 | | | 5,793 | | | | 5,795 | |
| Series 2863, Class HF | | | | | | | | |
| 0.850%, 02/15/2019 | | | 3,424 | | | | 3,424 | |
| Federal National Mortgage Association | | | | | | | | |
Series 2003-52, Class NF | | | | | | | | |
| 0.747%, 06/25/2023 | | | 4,318 | | | | 4,292 | |
| | | | | | | | | |
| | | | | | | | 13,511 | |
| | | | | | | | | |
| Fixed Rate – 5.7% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1167, Class E | | | | | | | | |
| 7.500%, 11/15/2021 | | | 15 | | | | 17 | |
| Series 1286, Class A | | | | | | | | |
| 6.000%, 05/15/2022 | | | 40 | | | | 43 | |
| Series 2750, Class HE | | | | | | | | |
| 5.000%, 02/15/2019 | | | 5,930 | | | | 6,384 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 1,531 | | | | 1,556 | |
| Series 2780, Class QC | | | | | | | | |
| 4.500%, 03/15/2017 | | | 4,060 | | | | 4,133 | |
| Series 2795, Class CL | | | | | | | | |
| 4.500%, 07/15/2017 | | | 5,263 | | | | 5,393 | |
| Series 3555, Class EA | | | | | | | | |
| 4.000%, 12/15/2014 | | | 4,025 | | | | 4,174 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1990-89, Class K | | | | | | | | |
| 6.500%, 07/25/2020 | | | 12 | | | | 14 | |
Series 2002-83, Class MD | | | | | | | | |
| 5.000%, 09/25/2016 | | | 4,695 | | | | 4,818 | |
Series 2003-30, Class AE | | | | | | | | |
| 3.900%, 10/25/2017 | | | 5,943 | | | | 6,134 | |
Series 2009-M1, Class A1 | | | | | | | | |
| 3.400%, 07/25/2019 | | | 3,838 | | | | 3,975 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 51
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Intermediate Term Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
Series 2010-M1, Class A1 | | | | | | | | |
| 3.305%, 06/25/2019 | | $ | 6,467 | | | $ | 6,655 | |
| | | | | | | | | |
| | | | | | | | 43,296 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $55,918) | | | | | | | 56,807 | |
| | | | | | | | | |
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 2.6% |
| Adjustable Rate Δ – 1.0% |
| Arkle Master Issuer | | | | | | | | |
Series 2010-1A, Class 1A | | | | | | | | |
0.480%, 05/17/2011 ¬ n | | | 4,240 | | | | 4,214 | |
| Structured Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 3.128%, 08/25/2034 | | | 251 | | | | 211 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2003-J, Class 2A5 | | | | | | | | |
| 4.437%, 10/25/2033 | | | 3,215 | | | | 3,260 | |
| | | | | | | | | |
| | | | | | | | 7,685 | |
| | | | | | | | | |
| Fixed Rate – 1.6% |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-2CB, Class 1A1 | | | | | | | | |
| 4.250%, 03/25/2034 | | | 629 | | | | 630 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,237 | | | | 951 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-S1, Class 2A | | | | | | | | |
3.250%, 04/25/2038 n | | | 4,241 | | | | 4,306 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2010-1, Class A | | | | | | | | |
4.250%, 07/25/2040 n | | | 3,455 | | | | 3,446 | |
| OBP Depositor Trust | | | | | | | | |
Series 2010-0BP, Class A | | | | | | | | |
4.646%, 07/15/2045 n | | | 3,200 | | | | 3,214 | |
| Westam Mortgage Financial | | | | | | | | |
| Series 11, Class A | | | | | | | | |
6.360%, 08/26/2020 ¥ | | | 16 | | | | 17 | |
| | | | | | | | | |
| | | | | | | | 12,564 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | | | | | | |
(Cost $20,375) | | | | | | | 20,249 | |
| | | | | | | | | |
| Municipal Bond – 0.2% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | | | | | | |
| 6.950% 09/01/2016 | | | | | | | | |
(Cost $1,620) | | | 1,620 | | | | 1,620 | |
| | | | | | | | | |
Preferred Stock – 0.0% |
| Sovereign – 0.0% |
| Fannie Mae, Series S | | | | | | | | |
| (Cost $2,472) | | | 104,000 | | | | 35 | |
| | | | | | | | | |
Short-Term Investments – 0.8% |
| Money Market Fund – 0.5% |
First American Prime Obligations Fund, Class Z 0.089% Å Ω | | | 3,902,103 | | | | 3,902 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.3% |
U.S. Treasury Bills o | | | | | | | | |
| 0.135%, 07/15/2010 | | $ | 240 | | | | 240 | |
| 0.150%, 07/29/2010 | | | 310 | | | | 310 | |
| 0.205%, 12/16/2010 | | | 300 | | | | 300 | |
| 0.232%, 04/07/2011 | | | 875 | | | | 874 | |
| 0.242%, 05/05/2011 | | | 285 | | | | 284 | |
| | | | | | | | | |
| | | | | | | | 2,008 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $5,909) | | | | | | | 5,910 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 13.0% |
| Mount Vernon Securities Lending Prime Portfolio | | | | | | | | |
| 0.282% Ω † | | | | | | | | |
(Cost $99,022) | | | 99,022,298 | | | | 99,022 | |
| | | | | | | | | |
Total Investments 5 – 113.4% | | | | | | | | |
(Cost $829,702) | | | | | | | 863,473 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (13.4)% | | | | | | | (102,208 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 761,265 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2010. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $84,100 or 11.0% of total net assets. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $96,774 at June 30, 2010. 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, 2010, the fair value of these investments was $117,331 or 15.4% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $1,616 or 0.2% 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts and/or swap agreements. Yield shown is the annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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, 2010, the cost of investments for federal income tax purposes was $832,809. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 40,159 | |
| Gross unrealized depreciation | | | (9,495 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 30,664 | |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
52 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
Intermediate Term Bond 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 2010 | | | | 257 | | | $ | 56,239 | | | $ | 199 | |
U.S. Treasury 5 Year
Note Futures | | | September 2010 | | | | (251 | ) | | | (29,706 | ) | | | (275 | ) |
U.S. Treasury 10 Year
Note Futures | | | September 2010 | | | | 157 | | | | 19,240 | | | | 405 | |
U.S. Treasury Long
Bond Futures | | | September 2010 | | | | (20 | ) | | | (2,550 | ) | | | (69 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 260 | |
| | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | | Receive
| | | | | | | | | | | | | |
| | | Rate
| | | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| JPMorgan Chase | | | 3-Month LIBOR | | | | Receive | | | | 1.255% | | | | 11/03/2011 | | | $ | 20,000 | | | $ | (157 | ) |
| JPMorgan Chase | | | 3-Month LIBOR | | | | Receive | | | | 3.858% | | | | 01/19/2020 | | | | 5,000 | | | | (466 | ) |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 1.358% | | | | 09/25/2011 | | | | 19,000 | | | | (205 | ) |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 1.133% | | | | 03/25/2012 | | | | 19,000 | | | | (140 | ) |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 1.048% | | | | 06/25/2012 | | | | 20,000 | | | | (32 | ) |
| UBS | | | 3-Month LIBOR | | | | Receive | | | | 3.001% | | | | 08/03/2014 | | | | 8,000 | | | | (492 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | (1,492 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Short Term Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Corporate Bonds – 40.1% |
| Banking – 8.4% |
| Bank of America | | | | | | | | |
| 4.875%, 01/15/2013 | | $ | 2,000 | | | $ | 2,090 | |
| 4.750%, 08/15/2013 | | | 1,500 | | | | 1,540 | |
| Series MTN | | | | | | | | |
| 2.100%, 04/30/2012 | | | 1,500 | | | | 1,536 | |
| Bank One | | | | | | | | |
| 7.875%, 08/01/2010 | | | 2,700 | | | | 2,712 | |
| BB&T | | | | | | | | |
5.700%, 04/30/2014 6 | | | 1,000 | | | | 1,098 | |
| Series MTN | | | | | | | | |
| 3.850%, 07/27/2012 | | | 260 | | | | 271 | |
| Citigroup | | | | | | | | |
| 2.125%, 04/30/2012 | | | 1,500 | | | | 1,537 | |
| 5.850%, 07/02/2013 | | | 1,000 | | | | 1,047 | |
| 6.375%, 08/12/2014 | | | 4,500 | | | | 4,780 | |
| Credit Suisse | | | | | | | | |
| 4.875%, 08/15/2010 | | | 1,500 | | | | 1,506 | |
| Credit Suisse New York | | | | | | | | |
5.500%, 05/01/2014 6 ¬ | | | 1,000 | | | | 1,093 | |
| Deutsche Bank | | | | | | | | |
3.875%, 08/18/2014 ¬ | | | 2,000 | | | | 2,066 | |
| European Investment Bank | | | | | | | | |
1.750%, 09/14/2012 6 ¬ | | | 5,000 | | | | 5,057 | |
| Fifth Third Bancorp | | | | | | | | |
6.250%, 05/01/2013 6 | | | 1,755 | | | | 1,910 | |
| HSBC Finance | | | | | | | | |
| 6.750%, 05/15/2011 | | | 2,345 | | | | 2,441 | |
| JPMorgan Chase | | | | | | | | |
| 2.200%, 06/15/2012 | | | 1,500 | | | | 1,541 | |
| 5.125%, 09/15/2014 | | | 2,000 | | | | 2,134 | |
| 3.700%, 01/20/2015 | | | 2,000 | | | | 2,046 | |
| Key Bank | | | | | | | | |
3.200%, 06/15/2012 6 | | | 1,500 | | | | 1,569 | |
| KeyCorp | | | | | | | | |
| Series MTN | | | | | | | | |
6.500%, 05/14/2013 6 | | | 1,000 | | | | 1,094 | |
| KFW | | | | | | | | |
| Series GMTN | | | | | | | | |
4.750%, 05/15/2012 ¬ | | | 5,000 | | | | 5,339 | |
| Lloyds TSB Bank | | | | | | | | |
4.375%, 01/12/2015 ¬ n | | | 3,000 | | | | 2,890 | |
| National City | | | | | | | | |
| 4.000%, 02/01/2011 | | | 1,000 | | | | 1,008 | |
| PNC Funding | | | | | | | | |
| 3.625%, 02/08/2015 | | | 1,500 | | | | 1,544 | |
| Rabobank Nederland | | | | | | | | |
3.200%, 03/11/2015 ¬ n | | | 1,400 | | | | 1,415 | |
| Royal Bank of Scotland | | | | | | | | |
4.875%, 08/25/2014 ¬ n | | | 1,900 | | | | 1,906 | |
| Santander | | | | | | | | |
2.485%, 01/18/2013 ¬ n | | | 2,000 | | | | 1,938 | |
| UBS | | | | | | | | |
3.875%, 01/15/2015 ¬ | | | 1,000 | | | | 995 | |
| Wells Fargo | | | | | | | | |
| Series AI | | | | | | | | |
| 4.750%, 02/09/2015 | | | 2,000 | | | | 2,093 | |
| Series I | | | | | | | | |
| 3.750%, 10/01/2014 | | | 2,000 | | | | 2,048 | |
| | | | | | | | | |
| | | | | | | | 60,244 | |
| | | | | | | | | |
| Basic Industry – 2.3% |
| Arcelormittal | | | | | | | | |
5.375%, 06/01/2013 6 ¬ | | | 1,900 | | | | 1,998 | |
| BHP Billiton Finance | | | | | | | | |
5.500%, 04/01/2014 ¬ | | | 1,000 | | | | 1,115 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 53
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Codelco | | | | | | | | |
5.500%, 10/15/2013 n ¬ | | $ | 2,400 | | | $ | 2,630 | |
| Dow Chemical | | | | | | | | |
| 4.850%, 08/15/2012 | | | 1,000 | | | | 1,055 | |
| E. I. du Pont de Nemours | | | | | | | | |
| 3.250%, 01/15/2015 | | | 2,600 | | | | 2,712 | |
| Georgia-Pacific | | | | | | | | |
8.125%, 05/15/2011 6 | | | 500 | | | | 521 | |
| Noranda | | | | | | | | |
7.250%, 07/15/2012 ¬ | | | 2,000 | | | | 2,166 | |
| Potash Corporation of Saskatchewan | | | | | | | | |
3.750%, 09/30/2015 ¬ | | | 1,500 | | | | 1,562 | |
| Rio Tinto Financial | | | | | | | | |
8.950%, 05/01/2014 6 ¬ | | | 1,000 | | | | 1,213 | |
| United States Steel | | | | | | | | |
| 5.650%, 06/01/2013 | | | 1,000 | | | | 1,010 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 ¬ n | | | 420 | | | | 446 | |
| | | | | | | | | |
| | | | | | | | 16,428 | |
| | | | | | | | | |
| Brokerage – 1.8% |
| Goldman Sachs Group | | | | | | | | |
6.875%, 01/15/2011 6 | | | 3,000 | | | | 3,076 | |
| 1.625%, 07/15/2011 | | | 1,580 | | | | 1,599 | |
3.625%, 08/01/2012 6 | | | 1,625 | | | | 1,655 | |
| Merrill Lynch | | | | | | | | |
| 5.450%, 02/05/2013 | | | 1,250 | | | | 1,311 | |
| Morgan Stanley | | | | | | | | |
2.250%, 03/13/2012 6 | | | 1,525 | | | | 1,565 | |
| 4.200%, 11/20/2014 | | | 2,000 | | | | 1,975 | |
| Series GMTN | | | | | | | | |
4.100%, 01/26/2015 6 | | | 1,645 | | | | 1,603 | |
| | | | | | | | | |
| | | | | | | | 12,784 | |
| | | | | | | | | |
| Capital Goods – 1.0% |
| Case New Holland | | | | | | | | |
| 7.750%, 09/01/2013 | | | 1,000 | | | | 1,023 | |
| Caterpillar Financial Services | | | | | | | | |
| Series MTN | | | | | | | | |
| 4.900%, 08/15/2013 | | | 2,490 | | | | 2,725 | |
| ITT | | | | | | | | |
| 4.900%, 05/01/2014 | | | 1,779 | | | | 1,939 | |
| Northrop Grumman | | | | | | | | |
| 3.700%, 08/01/2014 | | | 1,707 | | | | 1,790 | |
| | | | | | | | | |
| | | | | | | | 7,477 | |
| | | | | | | | | |
| Communications – 4.6% |
| American Tower | | | | | | | | |
| 4.625%, 04/01/2015 | | | 2,000 | | | | 2,080 | |
| AT&T | | | | | | | | |
| 7.300%, 11/15/2011 | | | 1,500 | | | | 1,621 | |
| 6.700%, 11/15/2013 | | | 2,000 | | | | 2,308 | |
| British Telecom | | | | | | | | |
5.150%, 01/15/2013 ¬ | | | 1,000 | | | | 1,049 | |
| Comcast | | | | | | | | |
| 5.300%, 01/15/2014 | | | 1,000 | | | | 1,098 | |
| Deutsche Telekom | | | | | | | | |
5.875%, 08/20/2013 ¬ | | | 2,000 | | | | 2,190 | |
| DirecTV Holdings | | | | | | | | |
| 3.550%, 03/15/2015 | | | 1,700 | | | | 1,711 | |
| 7.625%, 05/15/2016 | | | 2,000 | | | | 2,173 | |
| NBC Universal | | | | | | | | |
3.650%, 04/30/2015 6 n | | | 2,000 | | | | 2,045 | |
| News America | | | | | | | | |
5.300%, 12/15/2014 6 | | | 1,000 | | | | 1,111 | |
| Sprint Capital | | | | | | | | |
| 8.375%, 03/15/2012 | | | 2,000 | | | | 2,098 | |
| TCM Sub | | | | | | | | |
3.550%, 01/15/2015 n | | | 1,000 | | | | 1,022 | |
| Telecom Italia Capital | | | | | | | | |
4.950%, 09/30/2014 ¬ | | | 1,540 | | | | 1,543 | |
| Telefonica Emisiones | | | | | | | | |
2.582%, 04/26/2013 6 ¬ | | | 1,450 | | | | 1,440 | |
| Time Warner Cable | | | | | | | | |
| 5.400%, 07/02/2012 | | | 1,250 | | | | 1,335 | |
| 8.250%, 02/14/2014 | | | 1,025 | | | | 1,212 | |
| Verizon Communications | | | | | | | | |
| 5.250%, 04/15/2013 | | | 900 | | | | 987 | |
| Verizon New England | | | | | | | | |
| 6.500%, 09/15/2011 | | | 1,500 | | | | 1,584 | |
| Verizon Wireless | | | | | | | | |
| 5.550%, 02/01/2014 | | | 2,000 | | | | 2,242 | |
| Vodafone Group | | | | | | | | |
5.000%, 09/15/2015 ¬ | | | 2,500 | | | | 2,702 | |
| | | | | | | | | |
| | | | | | | | 33,551 | |
| | | | | | | | | |
| Consumer Cyclical – 1.5% |
| Best Buy | | | | | | | | |
| 6.750%, 07/15/2013 | | | 1,000 | | | | 1,119 | |
| Home Depot | | | | | | | | |
| 5.250%, 12/16/2013 | | | 2,000 | | | | 2,199 | |
| Macy’s Retail Holdings | | | | | | | | |
| 5.350%, 03/15/2012 | | | 1,700 | | | | 1,738 | |
| Staples | | | | | | | | |
| 9.750%, 01/15/2014 | | | 1,000 | | | | 1,227 | |
| Target | | | | | | | | |
| 4.000%, 06/15/2013 | | | 1,000 | | | | 1,068 | |
| Viacom | | | | | | | | |
| 4.375%, 09/15/2014 | | | 1,000 | | | | 1,063 | |
| Whirlpool | | | | | | | | |
| 8.000%, 05/01/2012 | | | 1,000 | | | | 1,094 | |
| Yum! Brands | | | | | | | | |
| 8.875%, 04/15/2011 | | | 1,260 | | | | 1,331 | |
| | | | | | | | | |
| | | | | | | | 10,839 | |
| | | | | | | | | |
| Consumer Non Cyclical – 7.2% |
| Altria Group | | | | | | | | |
| 8.500%, 11/10/2013 | | | 2,000 | | | | 2,335 | |
| Anheuser-Busch InBev Worldwide | | | | | | | | |
3.000%, 10/15/2012 6 | | | 1,750 | | | | 1,796 | |
7.200%, 01/15/2014 n | | | 1,000 | | | | 1,150 | |
| Boston Scientific | | | | | | | | |
| 4.500%, 01/15/2015 | | | 1,000 | | | | 982 | |
| Bunge Limited Finance | | | | | | | | |
| 5.875%, 05/15/2013 | | | 895 | | | | 961 | |
| Cardinal Health | | | | | | | | |
| 5.500%, 06/15/2013 | | | 915 | | | | 999 | |
| Carefusion | | | | | | | | |
| 4.125%, 08/01/2012 | | | 600 | | | | 627 | |
| Cargill | | | | | | | | |
4.375%, 06/01/2013 n | | | 2,000 | | | | 2,132 | |
| ConAgra Foods | | | | | | | | |
| 5.875%, 04/15/2014 | | | 1,950 | | | | 2,205 | |
| Covidien International | | | | | | | | |
1.875%, 06/15/2013 ¬ | | | 3,750 | | | | 3,773 | |
| Dr. Pepper Snapple Group | | | | | | | | |
| 2.350%, 12/21/2012 | | | 2,000 | | | | 2,023 | |
| Eli Lilly & Co. | | | | | | | | |
3.550%, 03/06/2012 6 | | | 1,000 | | | | 1,043 | |
| Express Scripts | | | | | | | | |
| 5.250%, 06/15/2012 | | | 2,500 | | | | 2,671 | |
| Genentech | | | | | | | | |
| 4.750%, 07/15/2015 | | | 2,000 | | | | 2,213 | |
| Kraft Foods | | | | | | | | |
| 5.625%, 11/01/2011 | | | 1,500 | | | | 1,578 | |
| 6.000%, 02/11/2013 | | | 1,500 | | | | 1,654 | |
| Kroger | | | | | | | | |
| 5.500%, 02/01/2013 | | | 2,000 | | | | 2,178 | |
54 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Life Technologies | | | | | | | | |
| 3.375%, 03/01/2013 | | $ | 1,000 | | | $ | 1,022 | |
| McKesson | | | | | | | | |
| 6.500%, 02/15/2014 | | | 2,105 | | | | 2,405 | |
| MedcoHealth Solutions | | | | | | | | |
| 6.125%, 03/15/2013 | | | 1,845 | | | | 2,042 | |
| Miller Brewing | | | | | | | | |
5.500%, 08/15/2013 ¬ n | | | 2,000 | | | | 2,188 | |
| Novartis Capital | | | | | | | | |
| 2.900%, 04/24/2015 | | | 1,000 | | | | 1,029 | |
| Pfizer | | | | | | | | |
| 4.450%, 03/15/2012 | | | 1,000 | | | | 1,055 | �� |
| Reynolds American | | | | | | | | |
| 7.250%, 06/01/2013 | | | 2,000 | | | | 2,200 | |
| Smithfield Foods | | | | | | | | |
7.000%, 08/01/2011 6 | | | 320 | | | | 325 | |
| St. Jude Medical | | | | | | | | |
| 2.200%, 09/15/2013 | | | 2,000 | | | | 2,025 | |
| 3.750%, 07/15/2014 | | | 690 | | | | 729 | |
| Teva Pharmaceutical | | | | | | | | |
1.500%, 06/15/2012 6 | | | 2,500 | | | | 2,509 | |
| UnitedHealth Group | | | | | | | | |
| 4.875%, 02/15/2013 | | | 1,500 | | | | 1,612 | |
| Watson Pharmaceuticals | | | | | | | | |
| 5.000%, 08/15/2014 | | | 2,000 | | | | 2,142 | |
| | | | | | | | | |
| | | | | | | | 51,603 | |
| | | | | | | | | |
| Electric – 1.0% |
| Arizona Public Service | | | | | | | | |
| 6.375%, 10/15/2011 | | | 2,000 | | | | 2,117 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 5.875%, 10/01/2012 | | | 1,555 | | | | 1,684 | |
| National Rural Utilities Cooperative Finance | | | | | | | | |
| 2.625%, 09/16/2012 | | | 950 | | | | 975 | |
| 4.750%, 03/01/2014 | | | 1,000 | | | | 1,096 | |
| Nevada Power | | | | | | | | |
| 6.500%, 04/15/2012 | | | 1,000 | | | | 1,079 | |
| | | | | | | | | |
| | | | | | | | 6,951 | |
| | | | | | | | | |
| Energy – 2.5% |
| Anadarko Petroleum | | | | | | | | |
5.950%, 09/15/2016 6 | | | 755 | | | | 650 | |
| ConocoPhillips | | | | | | | | |
| 4.750%, 02/01/2014 | | | 900 | | | | 990 | |
| Husky Energy | | | | | | | | |
5.900%, 06/15/2014 ¬ | | | 1,000 | | | | 1,113 | |
| Marathon Global Funding | | | | | | | | |
6.000%, 07/01/2012 ¬ | | | 1,000 | | | | 1,075 | |
| Marathon Oil | | | | | | | | |
| 6.125%, 03/15/2012 | | | 500 | | | | 536 | |
8.375%, 05/01/2012 ¬ | | | 1,000 | | | | 1,111 | |
| Nabors Industries | | | | | | | | |
| 5.375%, 08/15/2012 | | | 1,850 | | | | 1,966 | |
| Petroleos Mexicanos | | | | | | | | |
4.875%, 03/15/2015 6 ¬ n | | | 2,000 | | | | 2,070 | |
| Pride International | | | | | | | | |
| 7.375%, 07/15/2014 | | | 1,000 | | | | 996 | |
| Shell International Finance | | | | | | | | |
3.250%, 09/22/2015 6 ¬ | | | 1,180 | | | | 1,206 | |
| Smith International | | | | | | | | |
| 8.625%, 03/15/2014 | | | 1,000 | | | | 1,188 | |
| Valero Energy | | | | | | | | |
| 6.875%, 04/15/2012 | | | 1,000 | | | | 1,076 | |
| Weatherford International | | | | | | | | |
5.150%, 03/15/2013 ¬ | | | 1,500 | | | | 1,572 | |
| Woodside Finance | | | | | | | | |
4.500%, 11/10/2014 ¬ n | | | 1,250 | | | | 1,275 | |
| XTO Energy | | | | | | | | |
| 5.300%, 06/30/2015 | | | 1,000 | | | | 1,132 | |
| | | | | | | | | |
| | | | | | | | 17,956 | |
| | | | | | | | | |
| Finance – 3.3% |
| American Express Travel | | | | | | | | |
5.250%, 11/21/2011 n | | | 2,450 | | | | 2,546 | |
| Ameriprise Financial | | | | | | | | |
| 5.350%, 11/15/2010 | | | 29 | | | | 29 | |
| Capital One Bank | | | | | | | | |
| 6.500%, 06/13/2013 | | | 1,500 | | | | 1,645 | |
| General Electric Capital | | | | | | | | |
| 3.500%, 08/13/2012 | | | 1,565 | | | | 1,615 | |
4.800%, 05/01/2013 6 | | | 1,000 | | | | 1,066 | |
| Series A | | | | | | | | |
| 3.750%, 11/14/2014 | | | 3,000 | | | | 3,069 | |
| Series GMTN | | | | | | | | |
| 5.250%, 10/19/2012 | | | 3,000 | | | | 3,206 | |
| Series MTN | | | | | | | | |
| 2.200%, 06/08/2012 | | | 1,510 | | | | 1,550 | |
| GMAC | | | | | | | | |
| 1.750%, 10/30/2012 | | | 3,680 | | | | 3,744 | |
| 2.200%, 12/19/2012 | | | 1,750 | | | | 1,798 | |
| Household Finance | | | | | | | | |
| 4.750%, 07/15/2013 | | | 2,000 | | | | 2,095 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 n Δ | | | 1,000 | | | | 641 | |
| Nissan Motor Acceptance | | | | | | | | |
3.250%, 01/30/2013 n | | | 1,000 | | | | 1,021 | |
| | | | | | | | | |
| | | | | | | | 24,025 | |
| | | | | | | | | |
| Industrial Other – 1.2% |
| Arrow Electronics | | | | | | | | |
| 6.875%, 07/01/2013 | | | 1,990 | | | | 2,196 | |
| Briggs & Stratton | | | | | | | | |
8.875%, 03/15/2011 6 | | | 870 | | | | 896 | |
| Thermo Fisher Scientific | | | | | | | | |
| 3.250%, 11/20/2014 | | | 1,625 | | | | 1,678 | |
| 3.200%, 05/01/2015 | | | 1,250 | | | | 1,290 | |
| Tyco Electronics | | | | | | | | |
6.000%, 10/01/2012 ¬ | | | 2,430 | | | | 2,624 | |
| | | | | | | | | |
| | | | | | | | 8,684 | |
| | | | | | | | | |
| Insurance – 2.1% |
| Allstate Life Global Funding Trust | | | | | | | | |
| Series MTN | | | | | | | | |
5.375%, 04/30/2013 6 | | | 1,500 | | | | 1,645 | |
| Berkshire Hathaway | | | | | | | | |
| Series 0001 | | | | | | | | |
| 2.125%, 02/11/2013 | | | 2,355 | | | | 2,404 | |
| Hartford Financial Services Group | | | | | | | | |
| 5.250%, 10/15/2011 | | | 1,000 | | | | 1,035 | |
| 4.000%, 03/30/2015 | | | 1,000 | | | | 982 | |
| Lincoln National | | | | | | | | |
| 4.300%, 06/15/2015 | | | 1,000 | | | | 1,017 | |
| Metropolitan Life Global Funding I | | | | | | | | |
2.875%, 09/17/2012 n | | | 1,900 | | | | 1,945 | |
2.500%, 01/11/2013 n | | | 1,000 | | | | 1,012 | |
| Prudential Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 3.625%, 09/17/2012 | | | 2,600 | | | | 2,678 | |
| 2.750%, 01/14/2013 | | | 1,600 | | | | 1,608 | |
| Series MTNB | | | | | | | | |
| 4.500%, 07/15/2013 | | | 1,000 | | | | 1,038 | |
| | | | | | | | | |
| | | | | | | | 15,364 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 55
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Natural Gas – 0.7% |
| Consolidated Natural Gas | | | | | | | | |
| Series C | | | | | | | | |
| 6.250%, 11/01/2011 | | $ | 1,575 | | | $ | 1,670 | |
| Duke Energy | | | | | | | | |
| 3.950%, 09/15/2014 | | | 1,500 | | | | 1,577 | |
| Kinder Morgan | | | | | | | | |
| 6.500%, 09/01/2012 | | | 1,000 | | | | 1,032 | |
| Ras Laffan | | | | | | | | |
4.500%, 09/30/2012 ¬ n | | | 500 | | | | 519 | |
| | | | | | | | | |
| | | | | | | | 4,798 | |
| | | | | | | | | |
| Real Estate – 1.1% |
| Boston Properties – REIT | | | | | | | | |
| 6.250%, 01/15/2013 | | | 1,000 | | | | 1,089 | |
| HCP – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.625%, 02/28/2013 | | | 1,000 | | | | 1,049 | |
| Nationwide Health Properties – REIT | | | | | | | | |
| 6.250%, 02/01/2013 | | | 2,000 | | | | 2,148 | |
| Simon Property Group – REIT | | | | | | | | |
| 4.200%, 02/01/2015 | | | 2,000 | | | | 2,055 | |
| Vornado Realty – REIT | | | | | | | | |
| 4.250%, 04/01/2015 | | | 1,500 | | | | 1,491 | |
| | | | | | | | | |
| | | | | | | | 7,832 | |
| | | | | | | | | |
| Technology – 0.5% |
| Analog Devices | | | | | | | | |
| 5.000%, 07/01/2014 | | | 1,000 | | | | 1,081 | |
| Motorola | | | | | | | | |
| 8.000%, 11/01/2011 | | | 1,200 | | | | 1,288 | |
| National Semiconductor | | | | | | | | |
| 3.950%, 04/15/2015 | | | 1,000 | | | | 1,013 | |
| | | | | | | | | |
| | | | | | | | 3,382 | |
| | | | | | | | | |
| Transportation – 0.9% |
| CSX | | | | | | | | |
| 5.750%, 03/15/2013 | | | 1,500 | | | | 1,640 | |
| Delta Airlines | | | | | | | | |
| Series 11B, Class B | | | | | | | | |
| 7.711%, 03/18/2013 | | | 900 | | | | 891 | |
| FedEx | | | | | | | | |
| 7.375%, 01/15/2014 | | | 1,000 | | | | 1,168 | |
| GATX | | | | | | | | |
| 4.750%, 05/15/2015 | | | 1,000 | | | | 1,043 | |
| United Airlines | | | | | | | | |
10.400%, 11/01/2016 6 | | | 975 | | | | 1,048 | |
| United Parcel Service | | | | | | | | |
| 3.875%, 04/01/2014 | | | 1,000 | | | | 1,076 | |
| | | | | | | | | |
| | | | | | | | 6,866 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $280,616) | | | | | | | 288,784 | |
| | | | | | | | | |
Asset-Backed Securities – 25.1% |
| Automotive – 7.2% |
| Ally Auto Receivables Trust | | | | | | | | |
Series 2009-A, Class A3 | | | | | | | | |
2.330%, 06/17/2013 n | | | 2,500 | | | | 2,543 | |
| Bank of America Auto Trust | | | | | | | | |
Series 2008-1A, Class A3A | | | | | | | | |
4.970%, 09/20/2012 n | | | 4,463 | | | | 4,569 | |
Series 2010-2, Class A3 | | | | | | | | |
| 1.310%, 07/15/2014 | | | 2,525 | | | | 2,532 | |
| Capital Auto Receivables Asset Trust | | | | | | | | |
Series 2007-3, Class A4 | | | | | | | | |
| 5.210%, 03/17/2014 | | | 2,500 | | | | 2,588 | |
Series 2008-1, Class A3A | | | | | | | | |
| 3.860%, 08/15/2012 | | | 571 | | | | 579 | |
| Capital One Prime Auto Receivables Trust | | | | | | | | |
Series 2006-2, Class A4 | | | | | | | | |
| 4.940%, 07/15/2012 | | | 898 | | | | 902 | |
Series 2007-2, Class A3 | | | | | | | | |
| 4.890%, 01/15/2012 | | | 265 | | | | 266 | |
Series 2007-2, Class A4 | | | | | | | | |
| 5.060%, 06/15/2014 | | | 2,500 | | | | 2,579 | |
| Chase Manhattan Auto Owner Trust | | | | | | | | |
Series 2006-B, Class A4 | | | | | | | | |
| 5.110%, 04/15/2014 | | | 871 | | | | 880 | |
| Chrysler Financial Lease Trust | | | | | | | | |
Series 2010-A, Class A2 | | | | | | | | |
1.780%, 06/15/2011 n | | | 3,315 | | | | 3,326 | |
| DaimlerChrysler Auto Trust | | | | | | | | |
Series 2006-C, Class A4 | | | | | | | | |
| 4.980%, 11/08/2011 | | | 280 | | | | 280 | |
Series 2008-A, Class A3A | | | | | | | | |
| 3.700%, 06/08/2012 | | | 743 | | | | 750 | |
| Ford Credit Auto Owner Trust | | | | | | | | |
Series 2009-A, Class A3A | | | | | | | | |
| 3.960%, 05/15/2013 | | | 1,750 | | | | 1,794 | |
| Harley-Davidson Motorcycle Trust | | | | | | | | |
Series 2006-1, Class A2 | | | | | | | | |
5.040%, 10/15/2012 n | | | 698 | | | | 709 | |
| Hertz Vehicle Financing | | | | | | | | |
Series 2009-2A, Class A1 | | | | | | | | |
4.260%, 03/25/2014 n | | | 3,000 | | | | 3,126 | |
| Honda Auto Receivables Owner Trust | | | | | | | | |
Series 2010-2, Class A2 | | | | | | | | |
| 0.820%, 06/18/2012 | | | 2,000 | | | | 2,000 | |
| Huntington Auto Trust | | | | | | | | |
Series 2009-1A, Class A2 | | | | | | | | |
3.480%, 07/15/2011 n | | | 35 | | | | 35 | |
| JPMorgan Auto Receivables Trust | | | | | | | | |
Series 2006-A, Class A4 | | | | | | | | |
5.140%, 12/15/2014 n | | | 1,218 | | | | 1,240 | |
| Nissan Auto Lease Trust | | | | | | | | |
Series 2009-B, Class A3 | | | | | | | | |
| 2.070%, 01/15/2015 | | | 1,585 | | | | 1,602 | |
| Nissan Auto Receivables Owner Trust | | | | | | | | |
Series 2008-B, Class A3 | | | | | | | | |
| 4.460%, 04/15/2012 | | | 1,009 | | | | 1,026 | |
Series 2009-A, Class A2 | | | | | | | | |
| 2.940%, 07/15/2011 | | | 1,064 | | | | 1,068 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
Series 2010-1, Class A2 | | | | | | | | |
| 1.360%, 03/15/2013 | | | 5,755 | | | | 5,759 | |
| USAA Auto Owner Trust | | | | | | | | |
Series 2010-1, Class A2 | | | | | | | | |
| 0.630%, 06/15/2012 | | | 5,000 | | | | 4,997 | |
| Volkswagen Auto Lease Trust | | | | | | | | |
Series 2009-A, Class A3 | | | | | | | | |
| 3.410%, 04/16/2012 | | | 3,000 | | | | 3,062 | |
| Wachovia Auto Loan Owner Trust | | | | | | | | |
Series 2006-2, Class A4 | | | | | | | | |
5.230%, 03/20/2012 n | | | 149 | | | | 150 | |
| World Omni Auto Receivables Trust | | | | | | | | |
Series 2007-B, Class A3A | | | | | | | | |
| 5.280%, 01/17/2012 | | | 271 | | | | 272 | |
Series 2010-A, Class A2 | | | | | | | | |
| 0.700%, 05/15/2011 | | | 2,925 | | | | 2,923 | |
| | | | | | | | | |
| | | | | | | | 51,557 | |
| | | | | | | | | |
| Credit Cards – 4.7% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.680%, 08/15/2011 Δ | | | 905 | | | | 903 | |
56 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2008-A1, Class A1 | | | | | | | | |
| 0.930%, 04/15/2013 Δ | | $ | 5,231 | | | $ | 5,239 | |
| Cabela’s Master Credit Card Trust | | | | | | | | |
Series 2008-1A, Class A2 | | | | | | | | |
1.187%, 12/15/2013 n Δ | | | 1,415 | | | | 1,417 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2008-3A, Class A3 | | | | | | | | |
| 5.050%, 02/15/2016 | | | 2,750 | | | | 3,009 | |
Series 2008-A5, Class A5 | | | | | | | | |
| 4.850%, 02/15/2014 | | | 2,400 | | | | 2,474 | |
| Chase Issuance Trust | | | | | | | | |
Series 2008-A9, Class A9 | | | | | | | | |
| 4.260%, 05/15/2013 | | | 2,000 | | | | 2,059 | |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2006-A4, Class A4 | | | | | | | | |
| 5.450%, 05/10/2013 | | | 5,245 | | | | 5,449 | |
| Discover Card Master Trust | | | | | | | | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | | 885 | | | | 885 | |
Series 2008-A3, Class A3 | | | | | | | | |
| 5.100%, 10/15/2013 | | | 7,535 | | | | 7,785 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.780%, 05/15/2013 Δ | | | 185 | | | | 185 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.600%, 06/18/2013 Δ | | | 380 | | | | 379 | |
| MBNA Credit Card Master Note Trust | | | | | | | | |
Series 2005-A6, Class A6 | | | | | | | | |
| 4.500%, 01/15/2013 | | | 1,165 | | | | 1,171 | |
| Washington Mutual Master Note Trust | | | | | | | | |
Series 2007-A4, Class A4 | | | | | | | | |
5.200%, 10/15/2014 n | | | 3,000 | | | | 3,036 | |
| | | | | | | | | |
| | | | | | | | 33,991 | |
| | | | | | | | | |
| Equipment Leases – 0.6% |
| Caterpillar Financial Asset Trust | | | | | | | | |
Series 2007-A, Class A3A | | | | | | | | |
| 5.340%, 06/25/2012 | | | 519 | | | | 522 | |
| CNH Equipment Trust | | | | | | | | |
Series 2008-A, Class A4A | | | | | | | | |
| 4.930%, 08/15/2014 | | | 2,496 | | | | 2,588 | |
| GE Equipment Small Ticket | | | | | | | | |
Series 2009-1, Class A1 | | | | | | | | |
0.382%, 11/15/2010 n | | | 852 | | | | 852 | |
| MBNA Practice Solutions Owner Trust | | | | | | | | |
Series 2005-2, Class A4 | | | | | | | | |
4.470%, 06/15/2013 n | | | 47 | | | | 47 | |
| | | | | | | | | |
| | | | | | | | 4,009 | |
| | | | | | | | | |
| Home Equity – 3.3% |
| Countrywide Asset-Backed Certificates | | | | | | | | |
Series 2003-5, Class AF5 | | | | | | | | |
| 5.739%, 02/25/2034 | | | 1,804 | | | | 1,536 | |
Series 2007-1, Class 2A1 | | | | | | | | |
| 0.397%, 07/25/2037 Δ | | | 3,716 | | | | 3,611 | |
| Equivantage Home Equity Loan Trust | | | | | | | | |
Series 1996-1, Class A | | | | | | | | |
6.550%, 10/25/2025 ¥ | | | 10 | | | | 10 | |
Series 1996-4, Class A | | | | | | | | |
7.250%, 01/25/2028 ¥ | | | 168 | | | | 149 | |
| IMC Home Equity Loan Trust | | | | | | | | |
Series 1998-3, Class A7 | | | | | | | | |
7.220%, 08/20/2029 Δ ¥ | | | 1,227 | | | | 1,170 | |
| Novastar Home Equity Loan Trust | | | | | | | | |
Series 2007-1, Class A2A1 | | | | | | | | |
| 0.447%, 03/25/2037 Δ | | | 3,576 | | | | 3,272 | |
| RBSSP Resecuritization Trust | | | | | | | | |
Series 2009-10, Class 8A1 | | | | | | | | |
0.495%, 05/26/2036 n Δ | | | 1,532 | | | | 1,449 | |
Series 2009-11, Class 4A1 | | | | | | | | |
2.095%, 12/26/2037 n Δ | | | 641 | | | | 638 | |
Series 2009-13, Class 5A1 | | | | | | | | |
0.445%, 11/26/2036 n Δ | | | 2,603 | | | | 2,509 | |
Series 2009-8, Class 3A1 | | | | | | | | |
0.485%, 03/26/2037 n Δ | | | 510 | | | | 498 | |
Series 2009-9, Class 9A1 | | | | | | | | |
0.565%, 09/26/2037 n Δ | | | 1,740 | | | | 1,609 | |
Series 2010-4, Class 1A1 | | | | | | | | |
0.455%, 03/26/2036 n Δ | | | 4,049 | | | | 3,497 | |
Series 2010-4, Class 5A1 | | | | | | | | |
0.505%, 02/26/2037 n Δ | | | 2,705 | | | | 2,473 | |
| Renaissance Home Equity Loan Trust | | | | | | | | |
Series 2005-3, Class AF4 | | | | | | | | |
| 5.140%, 11/25/2035 | | | 2,425 | | | | 1,748 | |
| | | | | | | | | |
| | | | | | | | 24,169 | |
| | | | | | | | | |
| Manufactured Housing – 0.8% |
| Green Tree Financial | | | | | | | | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 508 | | | | 519 | |
| Newcastle Investment Trust | | | | | | | | |
Series 2010-MH1, Class A | | | | | | | | |
4.500%, 07/10/2035 n | | | 3,821 | | | | 3,938 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 164 | | | | 164 | |
Series 2005-B, Class A2 | | | | | | | | |
| 5.247%, 12/15/2018 | | | 1,087 | | | | 1,100 | |
| | | | | | | | | |
| | | | | | | | 5,721 | |
| | | | | | | | | |
| Other – 7.6% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2002-TOP6, Class A1 | | | | | | | | |
| 5.920%, 10/15/2036 | | | 476 | | | | 478 | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 | | | 5,000 | | | | 5,256 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-CD1, Class A4 | | | | | | | | |
| 5.397%, 07/15/2044 | | | 4,000 | | | | 4,285 | |
Series 2007-CD4, Class A2B | | | | | | | | |
5.205%, 12/11/2049 6 | | | 1,385 | | | | 1,425 | |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2005-LP5, Class A4 | | | | | | | | |
| 4.982%, 05/10/2043 Δ | | | 2,500 | | | | 2,638 | |
| Crown Castle Towers | | | | | | | | |
Series 2010-1, Class A1 | | | | | | | | |
4.523%, 01/15/2035 n Δ | | | 2,000 | | | | 2,087 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2001-3, Class A2 | | | | | | | | |
| 6.070%, 06/10/2038 | | | 3,250 | | | | 3,389 | |
| GMAC Commercial Mortgage Securities | | | | | | | | |
Series 2003-C2, Class A2 | | | | | | | | |
| 5.659%, 05/10/2040 | | | 3,500 | | | | 3,791 | |
Series 2004-C1, Class A2 | | | | | | | | |
| 4.100%, 03/10/2038 | | | 655 | | | | 657 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2005-GG5, Class A2 | | | | | | | | |
| 5.117%, 04/10/2037 | | | 4,260 | | | | 4,308 | |
| GS Commercial Mortgage | | | | | | | | |
| Series 2007-GG10 | | | | | | | | |
| 5.690%, 08/10/2045 | | | 977 | | | | 1,007 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2007-GG10, Class A4 | | | | | | | | |
| 5.999%, 08/10/2045 Δ | | | 750 | | | | 737 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 57
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2001-CIB2, Class A3 | | | | | | | | |
| 6.429%, 04/15/2035 | | $ | 7,779 | | | $ | 8,020 | |
Series 2010-C1, Class A1 | | | | | | | | |
3.853%, 06/15/2043 n | | | 4,305 | | | | 4,411 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2003-IQ6, Class A4 | | | | | | | | |
| 4.970%, 12/15/2041 | | | 1,090 | | | | 1,158 | |
| Morgan Stanley Dean Witter Capital I | | | | | | | | |
Series 2002-TOP7, Class A2 | | | | | | | | |
| 5.980%, 01/15/2039 | | | 4,555 | | | | 4,804 | |
| Small Business Administration | | | | | | | | |
Series 2005-P10A, Class 1 | | | | | | | | |
| 4.638%, 02/10/2015 | | | 2,650 | | | | 2,795 | |
Series 2006-P10A, Class 1 | | | | | | | | |
| 5.408%, 02/10/2016 | | | 1,645 | | | | 1,771 | |
| Wachovia Bank Commercial Mortgage Trust | | | | | | | | |
Series 2007-C30, Class A3 | | | | | | | | |
| 5.246%, 12/15/2043 | | | 1,739 | | | | 1,738 | |
| | | | | | | | | |
| | | | | | | | 54,755 | |
| | | | | | | | | |
| Utilities – 0.9% |
| CenterPoint Energy | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.970%, 08/01/2014 | | | 2,922 | | | | 3,044 | |
| Peco Energy Transition Trust | | | | | | | | |
Series 2001-A, Class A1 | | | | | | | | |
| 6.520%, 12/31/2010 | | | 1,123 | | | | 1,134 | |
| PG&E Energy Recovery Funding | | | | | | | | |
Series 2005-2, Class A2 | | | | | | | | |
| 5.030%, 03/25/2014 | | | 1,190 | | | | 1,237 | |
| PSE&G Transition Funding | | | | | | | | |
Series 2001-1, Class A6 | | | | | | | | |
| 6.610%, 06/15/2015 | | | 1,190 | | | | 1,316 | |
| | | | | | | | | |
| | | | | | | | 6,731 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $175,392) | | | | | | | 180,933 | |
| | | | | | | | | |
U.S. Government Agency
Mortgage-Backed Securities – 11.7% |
| Adjustable Rate Δ – 8.1% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 3.011%, 12/01/2026, #786591 | | | 411 | | | | 431 | |
| 2.741%, 01/01/2029, #846946 | | | 368 | | | | 385 | |
| 3.097%, 10/01/2029, #786853 | | | 253 | | | | 262 | |
| 4.341%, 04/01/2030, #972055 | | | 282 | | | | 300 | |
| 2.175%, 05/01/2030, #847014 | | | 222 | | | | 229 | |
| 2.706%, 06/01/2031, #847367 | | | 166 | | | | 173 | |
| 2.677%, 08/01/2032, #847331 | | | 2,207 | | | | 2,299 | |
| 2.743%, 09/01/2032, #847652 | | | 1,183 | | | | 1,234 | |
| 2.961%, 10/01/2032, #847063 | | | 201 | | | | 209 | |
| 2.597%, 05/01/2033, #780456 | | | 806 | | | | 839 | |
| 2.719%, 10/01/2033, #780911 | | | 1,453 | | | | 1,507 | |
| 2.607%, 03/01/2034, #781296 | | | 1,675 | | | | 1,741 | |
| 3.850%, 03/01/2036, #848193 | | | 3,370 | | | | 3,471 | |
| 2.641%, 08/01/2036, #1L1462 | | | 1,037 | | | | 1,076 | |
| 2.856%, 01/01/2038, #848282 | | | 3,329 | | | | 3,460 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 2.628%, 11/01/2025, #433988 | | | 503 | | | | 519 | |
| 2.726%, 10/01/2030, #847241 | | | 1,491 | | | | 1,555 | |
| 4.104%, 06/01/2031, #625338 | | | 214 | | | | 221 | |
| 5.056%, 12/01/2031, #535363 | | | 1,299 | | | | 1,391 | |
| 3.129%, 03/01/2032, #545791 | | | 33 | | | | 34 | |
| 2.518%, 05/01/2032, #545717 | | | 187 | | | | 196 | |
| 2.665%, 05/01/2032, #634948 | | | 139 | | | | 144 | |
| 3.071%, 10/01/2032, #661645 | | | 81 | | | | 84 | |
| 2.879%, 12/01/2032, #671884 | | | 192 | | | | 200 | |
| 2.376%, 04/01/2034, #775389 | | | 149 | | | | 154 | |
| 2.683%, 04/01/2034, #AD0486 | | | 3,009 | | | | 3,136 | |
| 2.692%, 06/01/2034, #725721 | | | 3,081 | | | | 3,200 | |
| 2.064%, 07/01/2034, #795242 | | | 2,038 | | | | 2,107 | |
| 2.688%, 11/01/2034, #797182 | | | 1,920 | | | | 1,998 | |
| 2.817%, 11/01/2034, #841068 | | | 1,992 | | | | 2,081 | |
| 2.774%, 03/01/2035, #819652 | | | 2,902 | | | | 3,033 | |
| 2.872%, 07/01/2035, #745922 | | | 1,960 | | | | 2,035 | |
| 4.862%, 08/01/2035, #838958 | | | 1,754 | | | | 1,821 | |
| 2.301%, 12/01/2035, #848390 | | | 1,741 | | | | 1,774 | |
| 2.758%, 07/01/2036, #AE0058 | | | 3,542 | | | | 3,690 | |
| 2.934%, 07/01/2036, #886034 | | | 2,457 | | | | 2,567 | |
| 2.624%, 08/01/2036, #555369 | | | 229 | | | | 238 | |
| 2.791%, 09/01/2036, #995949 | | | 1,858 | | | | 1,940 | |
| 3.044%, 08/01/2037, #AD0550 | | | 3,114 | | | | 3,258 | |
| 2.725%, 03/01/2038, #AD0706 | | | 2,258 | | | | 2,356 | |
| Government National Mortgage Association Pool | | | | | | | | |
| 3.625%, 08/20/2021, #008824 | | | 129 | | | | 132 | |
| 3.625%, 07/20/2022, #008006 | | | 183 | | | | 188 | |
| 3.625%, 09/20/2025, #008699 | | | 96 | | | | 99 | |
| 4.375%, 04/20/2026, #008847 | | | 80 | | | | 83 | |
| 3.625%, 08/20/2027, #080106 | | | 27 | | | | 28 | |
| 3.375%, 01/20/2028, #080154 | | | 42 | | | | 43 | |
| 4.375%, 05/20/2029, #080283 | | | 116 | | | | 119 | |
| 2.875%, 11/20/2030, #080469 | | | 206 | | | | 210 | |
| 4.375%, 04/20/2031, #080507 | | | 76 | | | | 78 | |
| 3.625%, 08/20/2031, #080535 | | | 248 | | | | 255 | |
| 3.500%, 02/20/2032, #080580 | | | 64 | | | | 65 | |
| | | | | | | | | |
| | | | | | | | 58,648 | |
| | | | | | | | | |
| Fixed Rate – 3.6% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series K001, Class A3 | | | | | | | | |
| 5.469%, 01/25/2012 | | | 1,052 | | | | 1,093 | |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 4.500%, 05/01/2018, #G11618 | | | 3,337 | | | | 3,560 | |
| 4.500%, 05/01/2019, #B14728 | | | 4,584 | | | | 4,885 | |
| 4.500%, 04/01/2022, #M30035 | | | 1,814 | | | | 1,921 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.500%, 05/01/2012, #254340 | | | 211 | | | | 218 | |
| 5.000%, 03/01/2013, #254682 | | | 173 | | | | 178 | |
| 4.000%, 12/01/2013, #255039 | | | 1,436 | | | | 1,470 | |
| 4.000%, 12/01/2019, #AA5298 | | | 1,721 | | | | 1,820 | |
| 4.000%, 05/01/2020, #AD0107 | | | 2,814 | | | | 2,974 | |
| 4.000%, 03/01/2022, #890134 | | | 2,869 | | | | 3,032 | |
| 4.500%, 04/01/2024, #AA4312 | | | 4,380 | | | | 4,630 | |
| | | | | | | | | |
| | | | | | | | 25,781 | |
| | | | | | | | | |
Total U.S. Government Agency Mortgage-Backed Securities | | | | | | | | |
(Cost $83,087) | | | | | | | 84,429 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 8.0% |
| U.S. Agency Debentures – 4.2% |
| Federal Home Loan Bank | | | | | | | | |
| 1.625%, 07/27/2011 | | | 5,550 | | | | 5,616 | |
2.250%, 04/13/2012 6 | | | 6,000 | | | | 6,165 | |
| 1.500%, 01/16/2013 | | | 5,400 | | | | 5,468 | |
1.875%, 06/21/2013 6 | | | 3,385 | | | | 3,452 | |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| 1.625%, 04/15/2013 | | | 2,000 | | | | 2,030 | |
| Federal National Mortgage Association | | | | | | | | |
| 1.000%, 04/04/2012 | | | 7,500 | | | | 7,541 | |
| | | | | | | | | |
| | | | | | | | 30,272 | |
| | | | | | | | | |
| U.S. Treasuries – 3.8% |
| U.S. Treasury Notes | | | | | | | | |
4.625%, 10/31/2011 6 | | | 6,235 | | | | 6,583 | |
58 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| 0.750%, 11/30/2011 | | $ | 3,000 | | | $ | 3,011 | |
1.125%, 12/15/2011 6 | | | 6,340 | | | | 6,400 | |
0.875%, 02/29/2012 6 | | | 7,500 | | | | 7,540 | |
4.125%, 08/31/2012 6 | | | 3,760 | | | | 4,044 | |
| | | | | | | | | |
| | | | | | | | 27,578 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $57,098) | | | | | | | 57,850 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
U.S. Government Agency
Mortgage-Backed Securities – 7.9% |
| Adjustable Rate Δ – 1.7% |
| Federal National Mortgage Association | | | | | | | | |
Series 2003-25, Class FN | | | | | | | | |
| 0.797%, 04/25/2018 | | | 4,384 | | | | 4,373 | |
Series 2004-90, Class GF | | | | | | | | |
| 0.647%, 11/25/2034 | | | 3,179 | | | | 3,166 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-S1, Class 1A | | | | | | | | |
0.896%, 02/25/2048 n | | | 4,643 | | | | 4,660 | |
| | | | | | | | | |
| | | | | | | | 12,199 | |
| | | | | | | | | |
| Fixed Rate – 6.2% |
| Federal Home Loan Mortgage Corporation | | | | | | | | |
| Series 1022, Class J | | | | | | | | |
| 6.000%, 12/15/2020 | | | 25 | | | | 27 | |
| Series 2629, Class BO | | | | | | | | |
| 3.250%, 03/15/2018 | | | 3,262 | | | | 3,368 | |
| Series 2763, Class TA | | | | | | | | |
| 4.000%, 03/15/2011 | | | 1,119 | | | | 1,137 | |
| Series 2780, Class QC | | | | | | | | |
| 4.500%, 03/15/2017 | | | 1,990 | | | | 2,025 | |
| Series 2795, Class CL | | | | | | | | |
| 4.500%, 07/15/2017 | | | 3,674 | | | | 3,765 | |
| Series 2843, Class BH | | | | | | | | |
| 4.000%, 01/15/2018 | | | 3,190 | | | | 3,272 | |
| Series 3555, Class EA | | | | | | | | |
| 4.000%, 12/15/2014 | | | 1,282 | | | | 1,329 | |
| Series 3591, Class NA | | | | | | | | |
| 1.250%, 10/15/2012 | | | 2,833 | | | | 2,797 | |
| Federal National Mortgage Association | | | | | | | | |
Series 1992-150, Class MA | | | | | | | | |
| 5.500%, 09/25/2022 | | | 64 | | | | 71 | |
Series 2002-83, Class MD | | | | | | | | |
| 5.000%, 09/25/2016 | | | 1,734 | | | | 1,780 | |
Series 2003-122, Class AJ | | | | | | | | |
| 4.500%, 02/25/2028 | | | 4,975 | | | | 5,138 | |
Series 2003-68, Class QP | | | | | | | | |
| 3.000%, 07/25/2022 | | | 3,267 | | | | 3,338 | |
Series 2003-92, Class PD | | | | | | | | |
| 4.500%, 03/25/2017 | | | 3,481 | | | | 3,620 | |
Series 2004-90, Class GA | | | | | | | | |
| 4.350%, 03/25/2034 | | | 2,028 | | | | 2,132 | |
Series 2010-M1, Class A1 | | | | | | | | |
| 3.305%, 06/25/2019 | | | 2,207 | | | | 2,272 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
| Series A1 | | | | | | | | |
0.9317%, 10/25/2011 n ¤ | | | 2,000 | | | | 1,975 | |
Series 2010-S1, Class 2A | | | | | | | | |
3.250%, 04/25/2038 n | | | 2,834 | | | | 2,877 | |
| Government National Mortgage Association | | | | | | | | |
Series 2003-85, Class ZL | | | | | | | | |
| 5.500%, 06/20/2028 | | | 3,365 | | | | 3,488 | |
| | | | | | | | | |
| | | | | | | | 44,411 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation – U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $56,398) | | | | | | | 56,610 | |
| | | | | | | | | |
Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities – 2.4% |
| Adjustable Rate Δ – 1.0% |
| Arkle Master Issuer | | | | | | | | |
Series 2010-1A, Class 1A | | | | | | | | |
0.480%, 05/17/2011 n ¬ | | | 3,640 | | | | 3,617 | |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.281%, 02/25/2034 | | | 313 | | | | 314 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class B1 | | | | | | | | |
4.246%, 01/25/2035 ¥ | | | 1,952 | | | | 295 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 2.820%, 03/25/2035 | | | 523 | | | | 364 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.935%, 01/25/2037 | | | 513 | | | | 115 | |
| Sequoia Mortgage Trust | | | | | | | | |
Series 2007-1, Class 2A1 | | | | | | | | |
| 5.510%, 02/20/2047 | | | 725 | | | | 566 | |
| Structured Mortgage Loan Trust | | | | | | | | |
Series 2004-11, Class A | | | | | | | | |
| 3.128%, 08/25/2034 | | | 198 | | | | 167 | |
| Washington Mutual | | | | | | | | |
Series 2007-HY2, Class 3A2 | | | | | | | | |
| 5.796%, 09/25/2036 | | | 694 | | | | 120 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2006-AR14, Class 2A3 | | | | | | | | |
| 5.884%, 10/25/2036 | | | 2,092 | | | | 1,686 | |
| | | | | | | | | |
| | | | | | | | 7,244 | |
| | | | | | | | | |
| Fixed Rate – 1.4% |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,481 | | | | 1,139 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2006-J1, Class A1 | | | | | | | | |
| 5.750%, 04/25/2036 | | | 1,264 | | | | 1,121 | |
Series 2010-1, Class A | | | | | | | | |
4.250%, 07/25/2040 n | | | 3,255 | | | | 3,247 | |
| Master Alternative Loans Trust | | | | | | | | |
Series 2004-13, Class 10A1 | | | | | | | | |
| 8.000%, 01/25/2035 | | | 502 | | | | 446 | |
| Thornburg Mortgage Securities Trust | | | | | | | | |
Series 2007-4, Class 3A1 | | | | | | | | |
| 6.201%, 09/25/2037 | | | 1,767 | | | | 1,714 | |
| Wells Fargo Mortgage Backed Securities Trust | | | | | | | | |
Series 2006-3, Class A1 | | | | | | | | |
| 5.500%, 03/25/2036 | | | 652 | | | | 599 | |
Series 2007-2, Class 1A8 | | | | | | | | |
| 5.750%, 03/25/2037 | | | 1,686 | | | | 1,478 | |
| | | | | | | | | |
| | | | | | | | 9,744 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation-Private Mortgage-Backed Securities | | | | | | | | |
(Cost $19,798) | | | | | | | 16,988 | |
| | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 59
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Short Term Bond Fund (continued) |
| DESCRIPTION | | SHARES/PAR | | FAIR VALUE > |
| |
| |
Short-Term Investments – 4.2% |
| Money Market Fund – 3.9% |
First American Prime Obligations Fund, Class Z 0.089% Å Ω | | | 27,795,935 | | | $ | 27,796 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.3% |
U.S. Treasury Bills o | | | | | | | | |
| 0.130%, 07/15/2010 | | $ | 90 | | | | 90 | |
0.166%, 07/29/2010 6 | | | 675 | | | | 675 | |
| 0.205%, 12/16/2010 | | | 850 | | | | 849 | |
| 0.232%, 04/07/2011 | | | 535 | | | | 534 | |
| | | | | | | | | |
| | | | | | | | 2,148 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $29,944) | | | | | | | 29,944 | |
| | | | | | | | | |
Investment Purchased with Proceeds from Securities Lending – 9.0% |
Mount Vernon Securities Lending Prime Portfolio
0.282% Ω † | | | | |
(Cost $64,562) | | | 64,561,594 | | | | 64,562 | |
| | | | | | | | | |
Total Investments 5 – 108.4% | | | | | | | | |
(Cost $766,895) | | | | | | | 780,100 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (8.4)% | | | | | | | (60,207 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 719,893 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| 6 | | This security or a portion of this security is out on loan at June 30, 2010. Total loaned securities had a fair value of $63,181 at June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $64,896 or 9.0% of total net assets. |
| |
| 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, 2010, the fair value of these investments was $91,845 or 12.8% 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, 2010. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $1,624 or 0.2% of total net assets. See note 2 in Notes to Financial Statements. |
| |
| ¤ | | 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, 2010. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| 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, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair 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. |
Short Term Bond Fund (concluded)
| | |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was $770,664. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 18,182 | |
| Gross unrealized depreciation | | | (8,746 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 9,436 | |
| | | | | |
| |
| REIT – | Real Estate Investment Trust |
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 2010 | | | | (44 | ) | | $ | (9,628 | ) | | $ | (39 | ) |
U.S. Treasury 5 Year
Note Futures | | | September 2010 | | | | (916 | ) | | | (108,410 | ) | | | (1,295 | ) |
U.S. Treasury 10 Year
Note Futures | | | September 2010 | | | | 35 | | | | 4,289 | | | | 57 | |
U.S. Treasury Long
Bond Futures | | | September 2010 | | | | (12 | ) | | | (1,530 | ) | | | (43 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (1,320 | ) |
| | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Depreciation | |
| | |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 1.255% | | | | 11/03/2011 | | | $ | 24,000 | | | $ | (188 | ) |
| JPMorgan Chase | | 3-Month LIBOR | | | Receive | | | | 3.858% | | | | 01/19/2020 | | | | 4,000 | | | | (372 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.358% | | | | 09/25/2011 | | | | 11,000 | | | | (119 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.133% | | | | 03/25/2012 | | | | 16,000 | | | | (118 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 1.048% | | | | 06/25/2012 | | | | 18,000 | | | | (29 | ) |
| UBS | | 3-Month LIBOR | | | Receive | | | | 3.001% | | | | 08/03/2014 | | | | 4,000 | | | | (246 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | $ | (1,072 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
60 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Total Return Bond Fund |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
Corporate Bonds – 61.0% |
| Banking – 9.4% |
| Bank of America | | | | | | | | |
| 5.625%, 07/01/2020 | | $ | 3,675 | | | $ | 3,704 | |
| 8.000%, 01/30/2018 Δ | | | 4,275 | | | | 4,129 | |
| Citigroup | | | | | | | | |
| 6.125%, 08/25/2036 | | | 2,765 | | | | 2,513 | |
| 6.875%, 03/05/2038 | | | 2,550 | | | | 2,675 | |
| Citigroup Capital XXI | | | | | | | | |
| 8.300%, 12/21/2077 Δ | | | 5,835 | | | | 5,683 | |
| Fifth Third Bancorp | | | | | | | | |
| 6.250%, 05/01/2013 | | | 2,010 | | | | 2,187 | |
| HSBC Holdings | | | | | | | | |
6.800%, 06/01/2038 ¬ | | | 3,020 | | | | 3,254 | |
| JPMorgan Chase | | | | | | | | |
| 6.300%, 04/23/2019 | | | 5,205 | | | | 5,879 | |
| Series 1 | | | | | | | | |
| 7.900%, 04/29/2049 Δ | | | 3,730 | | | | 3,845 | |
| JPMorgan Chase Capital XX | | | | | | | | |
| Series T | | | | | | | | |
| 6.550%, 09/29/2066 | | | 6,825 | | | | 6,525 | |
| Key Bank | | | | | | | | |
| 7.413%, 05/06/2015 | | | 1,485 | | | | 1,639 | |
| Keycorp | | | | | | | | |
| 6.500%, 05/14/2013 | | | 450 | | | | 492 | |
| Lloyds TSB Bank | | | | | | | | |
4.375%, 01/12/2015 ¬ n | | | 1,145 | | | | 1,103 | |
5.800%, 01/13/2020 ¬ n | | | 3,490 | | | | 3,294 | |
| Royal Bank of Scotland | | | | | | | | |
6.400%, 10/21/2019 ¬ | | | 2,100 | | | | 2,129 | |
| Sovereign Bank | | | | | | | | |
| 8.750%, 05/30/2018 | | | 2,350 | | | | 2,694 | |
| UBS Preferred Funding Trust V | | | | | | | | |
| 6.243%, 05/29/2049 Δ | | | 1,615 | | | | 1,385 | |
| Wells Fargo | | | | | | | | |
| Series I | | | | | | | | |
| 3.750%, 10/01/2014 | | | 2,000 | | | | 2,048 | |
| Series K | | | | | | | | |
| 7.980%, 03/29/2049 Δ | | | 3,270 | | | | 3,368 | |
| Wells Fargo Bank | | | | | | | | |
| 5.950%, 08/26/2036 | | | 710 | | | | 723 | |
| Wells Fargo Capital X | | | | | | | | |
| 5.950%, 12/15/2086 | | | 1,230 | | | | 1,091 | |
| Wells Fargo Capital XIII | | | | | | | | |
| Series GMTN | | | | | | | | |
| 7.700%, 12/29/2049 Δ | | | 4,760 | | | | 4,808 | |
| | | | | | | | | |
| | | | | | | | 65,168 | |
| | | | | | | | | |
| Basic Industry – 6.3% |
| Arcelormittal | | | | | | | | |
5.375%, 06/01/2013 ¬ | | | 3,145 | | | | 3,307 | |
6.125%, 06/01/2018 ¬ | | | 3,155 | | | | 3,300 | |
| Boise Cascade | | | | | | | | |
| 7.125%, 10/15/2014 | | | 1,300 | | | | 1,224 | |
| Braskem Finance | | | | | | | | |
7.250%, 06/05/2018 ¬ n 6 | | | 1,470 | | | | 1,507 | |
| CF Industries | | | | | | | | |
| 7.125%, 05/01/2020 | | | 1,390 | | | | 1,425 | |
| FMG Finance | | | | | | | | |
10.000%, 09/01/2013 ¬ n | | | 1,130 | | | | 1,186 | |
| Freeport-McMoran Copper & Gold | | | | | | | | |
| 8.375%, 04/01/2017 | | | 1,595 | | | | 1,754 | |
| Georgia-Pacific | | | | | | | | |
7.125%, 01/15/2017 n | | | 1,055 | | | | 1,076 | |
| Hexion Financial/Hexion Escrow | | | | | | | | |
| 8.875%, 02/01/2018 | | | 1,300 | | | | 1,173 | |
| Incitec Pivot Finance | | | | | | | | |
6.000%, 12/10/2019 n | | | 1,915 | | | | 1,962 | |
| International Paper | | | | | | | | |
| 7.500%, 08/15/2021 | | | 1,580 | | | | 1,850 | |
| 8.700%, 06/15/2038 | | | 1,545 | | | | 1,971 | |
| Inversiones CMPC | | | | | | | | |
6.125%, 11/05/2019 ¬ n | | | 1,280 | | | | 1,356 | |
| Newmont Mining | | | | | | | | |
| 6.250%, 10/01/2039 | | | 6,325 | | | | 6,903 | |
| Nova Chemicals | | | | | | | | |
8.375%, 11/01/2016 ¬ | | | 1,050 | | | | 1,045 | |
| Rio Tinto Finance U.S.A. | | | | | | | | |
6.500%, 07/15/2018 ¬ | | | 2,325 | | | | 2,650 | |
| Southern Copper | | | | | | | | |
| 7.500%, 07/27/2035 | | | 1,265 | | | | 1,365 | |
| Teck Cominco Limited | | | | | | | | |
6.125%, 10/01/2035 ¬ | | | 1,575 | | | | 1,567 | |
| U.S. Steel | | | | | | | | |
7.000%, 02/01/2018 6 | | | 2,250 | | | | 2,225 | |
| USG | | | | | | | | |
| 9.500%, 01/15/2018 | | | 950 | | | | 941 | |
| Vale Overseas | | | | | | | | |
6.875%, 11/10/2039 ¬ | | | 1,990 | | | | 2,079 | |
| Vedanta Resources | | | | | | | | |
9.500%, 07/18/2018 ¬ n | | | 1,575 | | | | 1,673 | |
| | | | | | | | | |
| | | | | | | | 43,539 | |
| | | | | | | | | |
| Brokerage – 3.1% |
| Goldman Sachs Capital II | | | | | | | | |
5.793%, 12/29/2049 Δ 6 | | | 8,975 | | | | 6,776 | |
| Merrill Lynch | | | | | | | | |
| 6.050%, 05/16/2016 | | | 5,235 | | | | 5,410 | |
| Series MTN | | | | | | | | |
| 6.400%, 08/28/2017 | | | 1,265 | | | | 1,319 | |
| Morgan Stanley | | | | | | | | |
| 7.300%, 05/13/2019 | | | 2,640 | | | | 2,839 | |
| 5.625%, 09/23/2019 | | | 2,400 | | | | 2,322 | |
| Series MTN | | | | | | | | |
| 6.625%, 04/01/2018 | | | 2,685 | | | | 2,814 | |
| | | | | | | | | |
| | | | | | | | 21,480 | |
| | | | | | | | | |
| Capital Goods – 1.3% |
| Boeing | | | | | | | | |
6.875%, 03/15/2039 6 | | | 1,665 | | | | 2,093 | |
| Bombardier | | | | | | | | |
7.500%, 03/15/2018 ¬ n | | | 1,460 | | | | 1,504 | |
| Case New Holland | | | | | | | | |
7.875%, 12/01/2017 n | | | 1,390 | | | | 1,400 | |
| L-3 Communications | | | | | | | | |
| 4.750%, 07/15/2020 | | | 1,665 | | | | 1,678 | |
| Martin Marietta Material | | | | | | | | |
| 6.600%, 04/15/2018 | | | 850 | | | | 922 | |
| United Rentals | | | | | | | | |
9.250%, 12/15/2019 6 | | | 1,455 | | | | 1,466 | |
| | | | | | | | | |
| | | | | | | | 9,063 | |
| | | | | | | | | |
| Communications – 4.5% |
| American Tower | | | | | | | | |
| 4.625%, 04/01/2015 | | | 1,885 | | | | 1,961 | |
| AT&T | | | | | | | | |
| 6.550%, 02/15/2039 | | | 1,510 | | | | 1,691 | |
| British Sky Broadcasting | | | | | | | | |
6.100%, 02/15/2018 ¬ n | | | 1,975 | | | | 2,217 | |
| British Telecom | | | | | | | | |
5.950%, 01/15/2018 ¬ | | | 2,050 | | | | 2,138 | |
| CBS | | | | | | | | |
| 5.750%, 04/15/2020 | | | 1,190 | | | | 1,277 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 61
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Comcast | | | | | | | | |
| 6.300%, 11/15/2017 | | $ | 735 | | | $ | 839 | |
| 6.400%, 05/15/2038 | | | 1,630 | | | | 1,756 | |
| DirecTV Holdings | | | | | | | | |
| 5.200%, 03/15/2020 | | | 4,195 | | | | 4,372 | |
| Embarq | | | | | | | | |
| 7.082%, 06/01/2016 | | | 1,545 | | | | 1,647 | |
| Frontier Communications | | | | | | | | |
8.125%, 10/01/2018 6 | | | 1,200 | | | | 1,192 | |
| McClatchy | | | | | | | | |
11.500%, 02/15/2017 n 6 | | | 750 | | | | 761 | |
| MTS International Funding | | | | | | | | |
8.625%, 06/22/2020 ¬ n | | | 1,500 | | | | 1,552 | |
| News America | | | | | | | | |
| 6.650%, 11/15/2037 | | | 1,600 | | | | 1,796 | |
| NII Capital | | | | | | | | |
| 10.000%, 08/15/2016 | | | 700 | | | | 737 | |
| Sprint Nextel | | | | | | | | |
6.000%, 12/01/2016 6 | | | 1,200 | | | | 1,077 | |
| TCM Sub | | | | | | | | |
3.550%, 01/15/2015 n | | | 870 | | | | 890 | |
| Telecom Italia Capital | | | | | | | | |
7.175%, 06/18/2019 ¬ | | | 2,250 | | | | 2,422 | |
| Time Warner Cable | | | | | | | | |
6.750%, 06/15/2039 6 | | | 1,515 | | | | 1,674 | |
| Verizon Communications | | | | | | | | |
| 6.900%, 04/15/2038 | | | 915 | | | | 1,069 | |
| | | | | | | | | |
| | | | | | | | 31,068 | |
| | | | | | | | | |
| Consumer Cyclical – 2.3% |
| Giti Tire | | | | | | | | |
12.250%, 01/26/2012 ¬ | | | 500 | | | | 482 | |
| J.C. Penney | | | | | | | | |
| 5.650%, 06/01/2020 | | | 1,425 | | | | 1,393 | |
| Lear | | | | | | | | |
8.125%, 03/15/2020 6 | | | 1,175 | | | | 1,178 | |
| Navistar International | | | | | | | | |
| 8.250%, 11/01/2021 | | | 1,150 | | | | 1,167 | |
| R.R. Donnelley & Sons | | | | | | | | |
| 7.625%, 06/15/2020 | | | 1,070 | | | | 1,061 | |
| Target | | | | | | | | |
7.000%, 01/15/2038 6 | | | 2,280 | | | | 2,912 | |
| Toys R Us Property II | | | | | | | | |
8.500%, 12/01/2017 n 6 | | | 1,080 | | | | 1,107 | |
| Viacom | | | | | | | | |
| 6.875%, 04/30/2036 | | | 1,975 | | | | 2,236 | |
| Whirlpool | | | | | | | | |
| Series MTN | | | | | | | | |
| 5.500%, 03/01/2013 | | | 2,360 | | | | 2,528 | |
| Wyndham Worldwide | | | | | | | | |
| 9.875%, 05/01/2014 | | | 1,565 | | | | 1,748 | |
| | | | | | | | | |
| | | | | | | | 15,812 | |
| | | | | | | | | |
| Consumer Non Cyclical – 3.3% |
| Altria Group | | | | | | | | |
9.950%, 11/10/2038 6 | | | 3,960 | | | | 5,202 | |
| Anheuser-Busch InBev Worldwide | | | | | | | | |
8.200%, 01/15/2039 n | | | 2,135 | | | | 2,809 | |
| Apria Healthcare Group I | | | | | | | | |
11.250%, 11/01/2014 n | | | 950 | | | | 1,012 | |
| Boston Scientific | | | | | | | | |
| 4.500%, 01/15/2015 | | | 1,975 | | | | 1,940 | |
| CVS Caremark | | | | | | | | |
| 6.302%, 06/01/2062 Δ | | | 1,810 | | | | 1,620 | |
| Davita | | | | | | | | |
| 7.250%, 03/15/2015 | | | 1,275 | | | | 1,275 | |
| HCA | | | | | | | | |
| 6.750%, 07/15/2013 | | | 650 | | | | 637 | |
| Kraft Foods | | | | | | | | |
| 6.500%, 08/11/2017 | | | 1,235 | | | | 1,435 | |
| 6.500%, 02/09/2040 | | | 2,485 | | | | 2,779 | |
| Lorillard Tobacco | | | | | | | | |
| 8.125%, 06/23/2019 | | | 1,590 | | | | 1,763 | |
| Mylan | | | | | | | | |
7.875%, 07/15/2020 n 6 | | | 1,025 | | | | 1,045 | |
| UnitedHealth Group | | | | | | | | |
| 6.875%, 02/15/2038 | | | 1,395 | | | | 1,577 | |
| | | | | | | | | |
| | | | | | | | 23,094 | |
| | | | | | | | | |
| Electric – 2.1% |
| AES | | | | | | | | |
8.000%, 10/15/2017 6 | | | 1,175 | | | | 1,187 | |
| Dynegy Holdings | | | | | | | | |
| 7.750%, 06/01/2019 | | | 500 | | | | 346 | |
| Energy Future Holdings | | | | | | | | |
10.000%, 01/15/2020 n 6 | | | 900 | | | | 895 | |
| Majapahit Holding | | | | | | | | |
7.750%, 10/17/2016 ¬ n | | | 1,850 | | | | 2,030 | |
| MidAmerican Energy Holdings | | | | | | | | |
| 6.125%, 04/01/2036 | | | 2,630 | | | | 2,896 | |
| NRG Energy | | | | | | | | |
7.375%, 02/01/2016 6 | | | 650 | | | | 647 | |
| Ohio Power | | | | | | | | |
| Series K | | | | | | | | |
| 6.000%, 06/01/2016 | | | 1,685 | | | | 1,908 | |
| Transalta | | | | | | | | |
6.650%, 05/15/2018 ¬ | | | 2,305 | | | | 2,568 | |
| Virginia Electric Power | | | | | | | | |
| 5.950%, 09/15/2017 | | | 1,550 | | | | 1,784 | |
| | | | | | | | | |
| | | | | | | | 14,261 | |
| | | | | | | | | |
| Energy – 6.1% |
| Amerada Hess | | | | | | | | |
| 7.125%, 03/15/2033 | | | 1,950 | | | | 2,265 | |
| Anadarko Petroleum | | | | | | | | |
| 6.200%, 03/15/2040 | | | 1,675 | | | | 1,325 | |
| Atlas Energy | | | | | | | | |
| 10.750%, 02/01/2018 | | | 1,585 | | | | 1,690 | |
| Canadian Oil Sands | | | | | | | | |
7.750%, 05/15/2019 ¬ n | | | 2,170 | | | | 2,618 | |
| Cenovus Energy | | | | | | | | |
6.750%, 11/15/2039 ¬ n | | | 2,230 | | | | 2,560 | |
| Cloud Peak Energy Resources | | | | | | | | |
8.250%, 12/15/2017 n | | | 1,270 | | | | 1,257 | |
| ConocoPhillips | | | | | | | | |
| 6.500%, 02/01/2039 | | | 3,475 | | | | 4,197 | |
| Gaz Capital | | | | | | | | |
6.510%, 03/07/2022 ¬ n 6 | | | 1,410 | | | | 1,359 | |
| Headwaters | | | | | | | | |
11.375%, 11/01/2014 6 | | | 1,295 | | | | 1,308 | |
| Indo Integrated Energy II | | | | | | | | |
9.750%, 11/05/2016 ¬ n | | | 1,100 | | | | 1,144 | |
| Linn Energy | | | | | | | | |
8.625%, 04/15/2020 n | | | 1,310 | | | | 1,341 | |
| Lukoil International Finance | | | | | | | | |
6.356%, 06/07/2017 ¬ n | | | 670 | | | | 680 | |
6.656%, 06/07/2022 ¬ n | | | 2,585 | | | | 2,530 | |
| Nexen | | | | | | | | |
6.400%, 05/15/2037 ¬ 6 | | | 2,240 | | | | 2,336 | |
| Petrobras International Finance | | | | | | | | |
6.875%, 01/20/2040 ¬ | | | 1,770 | | | | 1,785 | |
| Petro-Canada | | | | | | | | |
6.800%, 05/15/2038 ¬ | | | 1,570 | | | | 1,801 | |
62 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Petroplus Finance | | | | | | | | |
9.375%, 09/15/2019 ¬ n | | $ | 1,465 | | | $ | 1,260 | |
| Pioneer Natural Resource | | | | | | | | |
| 6.650%, 03/15/2017 | | | 1,000 | | | | 1,005 | |
| Pride International | | | | | | | | |
| 7.375%, 07/15/2014 | | | 1,610 | | | | 1,604 | |
8.500%, 06/15/2019 6 | | | 725 | | | | 752 | |
| Smith International | | | | | | | | |
| 9.750%, 03/15/2019 | | | 1,645 | | | | 2,239 | |
| Suncor Energy | | | | | | | | |
6.100%, 06/01/2018 ¬ | | | 1,175 | | | | 1,324 | |
| Valero Energy | | | | | | | | |
| 6.125%, 02/01/2020 | | | 2,200 | | | | 2,261 | |
| Weatherford International | | | | | | | | |
7.000%, 03/15/2038 ¬ | | | 1,950 | | | | 1,845 | |
| | | | | | | | | |
| | | | | | | | 42,486 | |
| | | | | | | | | |
| Finance – 6.4% |
| American Express Credit | | | | | | | | |
| Series C | | | | | | | | |
| 7.300%, 08/20/2013 | | | 2,470 | | | | 2,796 | |
| Anglogold Holdings | | | | | | | | |
6.500%, 04/15/2040 ¬ | | | 2,275 | | | | 2,347 | |
| Capital One Bank | | | | | | | | |
| 8.800%, 07/15/2019 | | | 2,810 | | | | 3,508 | |
| Capital One Capital III | | | | | | | | |
| 7.686%, 08/15/2036 | | | 1,485 | | | | 1,396 | |
| Capital One Financial | | | | | | | | |
| 6.150%, 09/01/2016 | | | 2,265 | | | | 2,397 | |
| CIT Group | | | | | | | | |
7.000%, 05/01/2016 6 | | | 1,350 | | | | 1,232 | |
| Country Garden Holding | | | | | | | | |
11.750%, 09/10/2014 ¬ n 6 | | | 1,710 | | | | 1,766 | |
| Countrywide Financial | | | | | | | | |
| 6.250%, 05/15/2016 | | | 2,885 | | | | 3,008 | |
| Credit Acceptance | | | | | | | | |
9.125%, 02/01/2017 n | | | 1,225 | | | | 1,231 | |
| Credit Agricole | | | | | | | | |
6.637%, 05/29/2049 ¬ Δ n | | | 2,190 | | | | 1,610 | |
| Discover Financial Services | | | | | | | | |
| 10.250%, 07/15/2019 | | | 1,975 | | | | 2,350 | |
| General Electric Capital | | | | | | | | |
| Series GMTN | | | | | | | | |
| 6.000%, 08/07/2019 | | | 1,000 | | | | 1,082 | |
| Series MTN | | | | | | | | |
| 6.875%, 01/10/2039 | | | 4,705 | | | | 5,195 | |
| GMAC | | | | | | | | |
| 8.000%, 11/01/2031 | | | 1,300 | | | | 1,199 | |
ILFC E-Capital Trust I | | | | | | | | |
5.900%, 12/21/2065 n Δ | | | 2,815 | | | | 1,805 | |
| International Lease Finance | | | | | | | | |
| 6.375%, 03/25/2013 | | | 2,615 | | | | 2,451 | |
| Janus Capital Group | | | | | | | | |
| 6.700%, 06/15/2017 | | | 1,700 | | | | 1,707 | |
| National Money Mart | | | | | | | | |
10.375%, 12/15/2016 ¬ n | | | 850 | | | | 863 | |
| Rockies Express Pipeline | | | | | | | | |
5.625%, 04/15/2020 n | | | 1,625 | | | | 1,546 | |
| RSHB Capital | | | | | | | | |
7.750%, 05/29/2018 ¬ n | | | 2,120 | | | | 2,209 | |
| Transcapitalinvest | | | | | | | | |
5.670%, 03/05/2014 ¬ n | | | 2,670 | | | | 2,721 | |
| | | | | | | | | |
| | | | | | | | 44,419 | |
| | | | | | | | | |
| Industrial Other – 0.2% |
| RBS Global & Rexnord | | | | | | | | |
8.500%, 05/01/2018 n | | | 1,425 | | | $ | 1,382 | |
| | | | | | | | | |
| Insurance – 4.7% |
| Allied World Assurance | | | | | | | | |
7.500%, 08/01/2016 ¬ | | | 2,510 | | | | 2,764 | |
| American International Group | | | | | | | | |
| 8.175%, 05/15/2068 Δ | | | 1,620 | | | | 1,280 | |
| Genworth Financial | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.515%, 05/22/2018 | | | 2,640 | | | | 2,542 | |
| Hartford Financial Services Group | | | | | | | | |
| 6.625%, 03/30/2040 | | | 1,225 | | | | 1,138 | |
| Series MTN | | | | | | | | |
| 6.000%, 01/15/2019 | | | 3,535 | | | | 3,566 | |
| Liberty Mutual Group | | | | | | | | |
7.000%, 03/15/2037 Δ n | | | 1,705 | | | | 1,338 | |
| Lincoln National | | | | | | | | |
8.750%, 07/01/2019 6 | | | 2,395 | | | | 2,935 | |
| 6.050%, 04/20/2067 Δ | | | 1,620 | | | | 1,215 | |
| MetLife | | | | | | | | |
| 6.750%, 06/01/2016 | | | 1,600 | | | | 1,810 | |
| 7.717%, 02/15/2019 | | | 490 | | | | 583 | |
| MetLife Capital Trust IV | | | | | | | | |
| 7.875%, 12/15/2067 | | | 2,220 | | | | 2,131 | |
| Pacific Life Insurance | | | | | | | | |
6.000%, 02/10/2020 n 6 | | | 840 | | | | 892 | |
9.250%, 06/15/2039 n | | | 2,700 | | | | 3,346 | |
| Prudential Financial | | | | | | | | |
| 5.500%, 03/15/2016 | | | 1,650 | | | | 1,738 | |
| 7.375%, 06/15/2019 | | | 2,100 | | | | 2,432 | |
| 5.900%, 03/17/2036 | | | 1,555 | | | | 1,474 | |
| ZFS Finance USA Trust V | | | | | | | | |
6.500%, 05/09/2067 Δ n | | | 1,860 | | | | 1,665 | |
| | | | | | | | | |
| | | | | | | | 32,849 | |
| | | | | | | | | |
| Natural Gas – 1.1% |
| El Paso | | | | | | | | |
| 6.875%, 06/15/2014 | | | 1,925 | | | | 1,960 | |
| Kinder Morgan Energy Partners | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.950%, 01/15/2038 | | | 1,920 | | | | 2,040 | |
| NGPL Pipeco | | | | | | | | |
7.119%, 12/15/2017 n | | | 1,585 | | | | 1,512 | |
| Southern Union | | | | | | | | |
| 7.200%, 11/01/2066 Δ | | | 545 | | | | 483 | |
| Transocean | | | | | | | | |
6.000%, 03/15/2018 6 ¬ | | | 1,595 | | | | 1,468 | |
| | | | | | | | | |
| | | | | | | | 7,463 | |
| | | | | | | | | |
| Other Utility – 0.3% |
| American Water Capital | | | | | | | | |
| 6.085%, 10/15/2017 | | | 1,730 | | | | 1,908 | |
| | | | | | | | | |
| Real Estate – 1.8% |
| Health Care Properties – REIT | | | | | | | | |
| Series MTN | | | | | | | | |
| 6.300%, 09/15/2016 | | | 1,725 | | | | 1,785 | |
| Prologis – REIT | | | | | | | | |
| 6.875%, 03/15/2020 | | | 3,080 | | | | 2,911 | |
| Shimao Property Holdings | | | | | | | | |
8.000%, 12/01/2016 ¬ n | | | 620 | | | | 557 | |
| Sigma Capital | | | | | | | | |
9.000%, 04/30/2015 ¬ | | | 1,029 | | | | 1,004 | |
| Simon Property Group – REIT | | | | | | | | |
| 10.350%, 04/01/2019 | | | 760 | | | | 1,011 | |
| 5.650%, 02/01/2020 | | | 1,825 | | | | 1,933 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 63
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Vornado Realty – REIT | | | | | | | | |
| 4.250%, 04/01/2015 | | $ | 2,975 | | | $ | 2,958 | |
| | | | | | | | | |
| | | | | | | | 12,159 | |
| | | | | | | | | |
| Sovereign – 4.9% |
| Australian Government | | | | | | | | |
5.750%, 04/15/2012 ¬ | | | AUD 7,300 | | | | 6,280 | |
| Canadian Government | | | | | | | | |
1.500%, 03/01/2012 ¬ | | | CAD 7,200 | | | | 6,788 | |
3.750%, 06/01/2019 ¬ | | | CAD 7,000 | | | | 6,956 | |
3.500%, 06/01/2020 ¬ | | | CAD 6,200 | | | | 6,030 | |
| Norwegian Government | | | | | | | | |
6.000%, 05/16/2011 ¬ | | | NOK 21,000 | | | | 3,331 | |
6.500%, 05/15/2013 ¬ | | | NOK 14,500 | | | | 2,484 | |
| Republic of Indonesia | | | | | | | | |
5.875%, 03/13/2020 ¬ n 6 | | $ | 1,730 | | | | 1,825 | |
| | | | | | | | | |
| | | | | | | | 33,694 | |
| | | | | | | | | |
| Technology – 0.3% |
| Avnet | | | | | | | | |
| 5.875%, 06/15/2020 | | | 845 | | | | 856 | |
| Seagate | | | | | | | | |
6.875%, 05/01/2020 ¬ n 6 | | | 1,360 | | | | 1,292 | |
| | | | | | | | | |
| | | | | | | | 2,148 | |
| | | | | | | | | |
| Transportation – 2.9% |
| Avis Budget Car Rental | | | | | | | | |
| 7.750%, 05/15/2016 | | | 1,450 | | | | 1,354 | |
| Canadian Pacific Railroad | | | | | | | | |
6.500%, 05/15/2018 ¬ | | | 1,840 | | | | 2,094 | |
| Continental Airlines | | | | | | | | |
Series 2007-1, Class C | | | | | | | | |
| 7.339%, 04/19/2014 | | | 2,407 | | | | 2,275 | |
| Delta Airlines | | | | | | | | |
11.750%, 03/15/2015 n | | | 1,300 | | | | 1,388 | |
| Series 2002-1, Class G-1 | | | | | | | | |
| 6.718%, 07/02/2024 | | | 1,296 | | | | 1,218 | |
| Erac USA Finance | | | | | | | | |
6.375%, 10/15/2017 n | | | 1,915 | | | | 2,156 | |
| Hertz | | | | | | | | |
| 8.875%, 01/01/2014 | | | 1,750 | | | | 1,772 | |
| Northwest Airlines | | | | | | | | |
| Series 2007-1 | | | | | | | | |
7.027%, 11/01/2019 6 | | | 1,094 | | | | 1,039 | |
| Union Pacific | | | | | | | | |
6.125%, 02/15/2020 6 | | | 3,175 | | | | 3,684 | |
| United Airlines | | | | | | | | |
Series 2007-1, Class A | | | | | | | | |
| 6.636%, 07/02/2022 | | | 1,334 | | | | 1,227 | |
| Series 2009-1 | | | | | | | | |
10.400%, 11/01/2016 6 | | | 1,676 | | | | 1,802 | |
| | | | | | | | | |
| | | | | | | | 20,009 | |
| | | | | | | | | |
Total Corporate Bonds | | | | | | | | |
(Cost $398,949) | | | | | | | 422,002 | |
| | | | | | | | | |
Asset-Backed Securities – 14.0% |
| Automotive – 1.2% |
| Fifth Third Auto Trust | | | | | | | | |
Series 2008-1, Class A4A | | | | | | | | |
| 4.810%, 01/15/2013 | | | 2,740 | | | | 2,821 | |
| Santander Drive Auto Receivables Trust | | | | | | | | |
Series 2010-1, Class A2 | | | | | | | | |
| 1.360%, 03/15/2013 | | | 5,650 | | | | 5,654 | |
| | | | | | | | | |
| | | | | | | | 8,475 | |
| | | | | | | | | |
| Credit Cards – 3.4% |
| American Express Issuance Trust | | | | | | | | |
Series 2005-1, Class C | | | | | | | | |
| 0.680%, 08/15/2011 Δ | | | 2,250 | | | | 2,246 | |
| Bank of America Credit Card Trust | | | | | | | | |
Series 2006-A16, Class A16 | | | | | | | | |
| 4.720%, 05/15/2013 | | | 2,470 | | | | 2,516 | |
| Capital One Multi-Asset Execution Trust | | | | | | | | |
Series 2008-A5, Class A5 | | | | | | | | |
| 4.850%, 02/18/2014 | | | 4,515 | | | | 4,655 | |
| Chase Issuance Trust | | | | | | | | |
Series 2009-A2, Class A2 | | | | | | | | |
| 1.900%, 04/15/2014 Δ | | | 3,195 | | | | 3,267 | |
| Citibank Credit Card Issuance Trust | | | | | | | | |
Series 2009-A1, Class A1 | | | | | | | | |
| 2.100%, 03/15/2014 Δ | | | 3,270 | | | | 3,352 | |
| Discover Card Master Trust I | | | | | | | | |
Series 2003-4, Class B2 | | | | | | | | |
| 0.780%, 05/15/2013 Δ | | | 380 | | | | 379 | |
Series 2005-4, Class B1 | | | | | | | | |
| 0.600%, 06/18/2013 Δ | | | 790 | | | | 788 | |
Series 2007-A1, Class A1 | | | | | | | | |
| 5.650%, 03/16/2020 | | | 3,655 | | | | 4,204 | |
Series 2007-C1, Class C1 | | | | | | | | |
| 0.670%, 01/15/2013 Δ | | | 2,370 | | | | 2,369 | |
| | | | | | | | | |
| | | | | | | | 23,776 | |
| | | | | | | | | |
| Home Equity – 0.8% |
| GRMT Mortgage Loan Trust | | | | | | | | |
Series 2001-1A, Class M1 | | | | | | | | |
8.272%, 07/20/2031 n ¥ | | | 122 | | | | 111 | |
| RBSSP Resecuritization Trust | | | | | | | | |
Series 2010-4, Class 1A1 | | | | | | | | |
0.455%, 03/26/2036 n Δ | | | 4,002 | | | | 3,457 | |
| Renaissance Home Equity Loan Trust | | | | | | | | |
Series 2005-3, Class AF4 | | | | | | | | |
| 5.140%, 11/25/2035 | | | 2,495 | | | | 1,799 | |
| | | | | | | | | |
| | | | | | | | 5,367 | |
| | | | | | | | | |
| Manufactured Housing – 0.3% |
| Green Tree Financial | | | | | | | | |
Series 1996-8, Class A7 | | | | | | | | |
| 8.050%, 10/15/2027 Δ | | | 147 | | | | 152 | |
Series 2008-MH1, Class A1 | | | | | | | | |
7.000%, 04/25/2038 n | | | 1,572 | | | | 1,606 | |
| Origen Manufactured Housing | | | | | | | | |
Series 2005-A, Class A2 | | | | | | | | |
| 4.490%, 05/15/2018 | | | 128 | | | | 129 | |
| | | | | | | | | |
| | | | | | | | 1,887 | |
| | | | | | | | | |
| Other – 8.3% |
| Bear Stearns Commercial Mortgage Securities | | | | | | | | |
Series 2005-PW10, Class A4 | | | | | | | | |
| 5.405%, 12/11/2040 | | | 3,325 | | | | 3,495 | |
Series 2007-T28, Class D | | | | | | | | |
6.176%, 09/11/2042 Δ n ¥ | | | 1,780 | | | | 620 | |
| Citigroup Commercial Mortgage Trust | | | | | | | | |
Series 2008-C7, Class AJ | | | | | | | | |
| 6.297%, 12/10/2049 Δ | | | 845 | | | | 525 | |
| Citigroup/Deutsche Bank Commercial Mortgage Trust | | | | | | | | |
Series 2005-CD1, Class A4 | | | | | | | | |
| 5.397%, 07/15/2044 Δ | | | 2,440 | | | | 2,614 | |
Series 2007-CD4, Class A2B | | | | | | | | |
5.205%, 12/11/2049 6 | | | 1,360 | | | | 1,400 | |
Series 2007-CD5, Class A4 | | | | | | | | |
| 5.886%, 11/15/2044 Δ | | | 5,650 | | | | 5,728 | |
64 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR | | FAIR VALUE > |
| |
| |
| Commercial Mortgage Pass-Through Certificates | | | | | | | | |
Series 2006-CN2A, Class A2FX | | | | | | | | |
5.449%, 02/05/2019 n | | $ | 1,805 | | | $ | 1,801 | |
| GE Capital Commercial Mortgage Corporation | | | | | | | | |
Series 2005-C3, Class A2 | | | | | | | | |
| 4.853%, 07/10/2045 | | | 1,257 | | | | 1,256 | |
| Greenwich Capital Commercial Funding | | | | | | | | |
Series 2003-C1, Class A2 | | | | | | | | |
| 3.285%, 07/05/2035 | | | 77 | | | | 77 | |
Series 2005-GG5, Class A2 | | | | | | | | |
| 5.117%, 04/10/2037 | | | 3,731 | | | | 3,772 | |
| GS Mortgage Securities II | | | | | | | | |
Series 2006-GG6, Class A2 | | | | | | | | |
| 5.506%, 04/10/2038 | | | 2,979 | | | | 3,025 | |
Series 2006-GG8, Class A4 | | | | | | | | |
| 5.560%, 11/10/2039 | | | 3,135 | | | | 3,181 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | | | | | |
Series 2010-C1, Class A1 | | | | | | | | |
3.853%, 06/15/2043 n | | | 4,165 | | | | 4,268 | |
| LB-UBS Commercial Mortgage Trust | | | | | | | | |
Series 2004-C2, Class A4 | | | | | | | | |
| 4.367%, 03/15/2036 | | | 4,000 | | | | 4,052 | |
Series 2005-C7, Class A2 | | | | | | | | |
| 5.103%, 11/15/2030 | | | 2,495 | | | | 2,507 | |
Series 2007-C7, Class AM | | | | | | | | |
| 6.374%, 09/15/2045 Δ | | | 3,160 | | | | 2,570 | |
| Merrill Lynch Mortgage Trust | | | | | | | | |
Series 2005-CIP1, Class C | | | | | | | | |
5.330%, 07/12/2038 Δ ¥ | | | 1,730 | | | | 1,157 | |
Series 2008-C1, Class A4 | | | | | | | | |
| 5.690%, 02/12/2051 | | | 5,540 | | | | 5,582 | |
| Morgan Stanley Capital I | | | | | | | | |
Series 2003-IQ6, Class A4 | | | | | | | | |
| 4.970%, 12/15/2041 | | | 5,112 | | | | 5,431 | |
Series 2006-IQ12, Class A4 | | | | | | | | |
| 5.332%, 12/15/2043 | | | 4,025 | | | | 4,120 | |
| | | | | | | | | |
| | | | | | | | 57,181 | |
| | | | | | | | | |
Total Asset-Backed Securities | | | | | | | | |
(Cost $94,945) | | | | | | | 96,686 | |
| | | | | | | | | |
U.S. Government Agency Mortgage-Backed Securities – 11.8% |
| Adjustable Rate Δ – 1.2% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 3.192%, 10/01/2029, #1L0117 | | | 682 | | | | 708 | |
| 2.598%, 07/01/2030, #847240 | | | 692 | | | | 722 | |
| 2.519%, 05/01/2033, #847411 | | | 479 | | | | 501 | |
| 5.811%, 07/01/2036, #1K1238 | | | 1,648 | | | | 1,754 | |
| 2.956%, 05/01/2038, #848289 | | | 3,293 | | | | 3,425 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 2.638%, 09/01/2033, #725553 | | | 279 | | | | 291 | |
| 2.729%, 01/01/2035, #745548 | | | 723 | | | | 752 | |
| | | | | | | | | |
| | | | | | | | 8,153 | |
| | | | | | | | | |
| Fixed Rate – 10.6% |
| Federal Home Loan Mortgage Corporation Pool | | | | | | | | |
| 6.500%, 07/01/2031, #A17212 | | | 1,320 | | | | 1,469 | |
| 7.000%, 08/01/2037, #H09059 | | | 923 | | | | 1,021 | |
| Federal National Mortgage Association Pool | | | | | | | | |
| 5.500%, 02/01/2025, #255628 | | | 1,583 | | | | 1,711 | |
| 5.500%, 10/01/2025, #255956 | | | 5,745 | | | | 6,205 | |
| 6.000%, 04/01/2032, #745101 | | | 481 | | | | 519 | |
| 5.500%, 06/01/2033, #843435 | | | 702 | | | | 757 | |
| 5.000%, 03/01/2034, #725205 | | | 821 | | | | 873 | |
| 5.000%, 03/01/2034, #725250 | | | 720 | | | | 766 | |
| 6.000%, 03/01/2034, #745324 | | | 1,002 | | | | 1,106 | |
| 5.500%, 09/01/2034, #725773 | | | 1,158 | | | | 1,247 | |
| 6.500%, 04/01/2036, #831377 | | | 833 | | | | 914 | |
| 6.500%, 04/01/2036, #852909 | | | 429 | | | | 471 | |
| 6.500%, 08/01/2036, #893318 | | | 1,114 | | | | 1,233 | |
| 6.500%, 09/01/2036, #897129 | | | 2,316 | | | | 2,544 | |
| 5.500%, 04/01/2037, #918883 | | | 1,152 | | | | 1,238 | |
| 6.000%, 06/01/2037, #944340 | | | 1,276 | | | | 1,387 | |
| 6.000%, 09/01/2037, #256890 | | | 1,424 | | | | 1,536 | |
| 5.000%, 05/01/2038, #963258 | | | 5,870 | | | | 6,220 | |
| 5.500%, 05/01/2038, #889618 | | | 3,944 | | | | 4,239 | |
| 5.500%, 07/01/2038, #985344 | | | 5,388 | | | | 5,792 | |
| 6.000%, 08/01/2038, #257307 | | | 1,708 | | | | 1,854 | |
| 5.500%, 11/01/2038, #AA0005 | | | 4,925 | | | | 5,294 | |
| 5.500%, 12/01/2038, #AA0889 | | | 4,981 | | | | 5,354 | |
| 6.000%, 09/01/2039, #AD0205 | | | 5,295 | | | | 5,753 | |
| 4.500%, 12/01/2039, #932323 | | | 6,598 | | | | 6,850 | |
4.500%, 07/15/2040 « | | | 6,835 | | | | 7,084 | |
| | | | | | | | | |
| | | | | | | | 73,437 | |
| | | | | | | | | |
Total U.S. Government Agency
Mortgage-Backed Securities | | | | | | | | |
(Cost $78,023) | | | | | | | 81,590 | |
| | | | | | | | | |
Collateralized Mortgage Obligation-Private Mortgage-Backed Securities – 4.4% |
| Adjustable Rate Δ – 1.2% |
| Countrywide Home Loans | | | | | | | | |
Series 2004-2, Class 2A1 | | | | | | | | |
| 5.281%, 02/25/2034 | | | 857 | | | | 862 | |
| FDIC Structured Sale Guaranteed Notes | | | | | | | | |
Series 2010-S1, Class 1A | | | | | | | | |
0.896%, 02/25/2048 n | | | 4,565 | | | | 4,582 | |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class B1 | | | | | | | | |
4.245%, 01/25/2035 ¥ | | | 1,997 | | | | 302 | |
| Indymac Index Mortgage Loan Trust | | | | | | | | |
Series 2005-AR1, Class 4A1 | | | | | | | | |
| 2.820%, 03/25/2035 | | | 602 | | | | 418 | |
| JPMorgan Alternative Loan Trust | | | | | | | | |
Series 2007-S1, Class A1 | | | | | | | | |
| 0.627%, 04/25/2047 | | | 2,175 | | | | 1,217 | |
| JPMorgan Mortgage Trust | | | | | | | | |
Series 2006-A7, Class 3A4 | | | | | | | | |
| 5.935%, 01/25/2037 | | | 1,831 | | | | 410 | |
| Wachovia Mortgage Loan Trust | | | | | | | | |
Series 2005-B, Class 1A1 | | | | | | | | |
| 3.522%, 10/20/2035 | | | 861 | | | | 660 | |
| | | | | | | | | |
| | | | | | | | 8,451 | |
| | | | | | | | | |
| Fixed Rate – 3.2% |
| Bank of America Alternative Loan Trust | | | | | | | | |
Series 2007-1, Class 2A2 | | | | | | | | |
6.009%, 04/25/2037 ¥ | | | 2,138 | �� | | | 607 | |
| Countrywide Alternative Loan Trust | | | | | | | | |
Series 2004-24CB, Class 2A1 | | | | | | | | |
| 5.000%, 11/25/2019 | | | 1,001 | | | | 1,005 | |
Series 2006-19CB, Class A15 | | | | | | | | |
| 6.000%, 08/25/2036 | | | 1,383 | | | | 1,063 | |
| GMAC Mortgage Corporation Loan Trust | | | | | | | | |
Series 2010-1, Class A | | | | | | | | |
4.250%, 07/25/2040 n | | | 3,135 | | | | 3,127 | |
| GSMPS Mortgage Loan Trust | | | | | | | | |
Series 2003-1, Class B1 | | | | | | | | |
6.848%, 03/25/2043 ¥ | | | 2,619 | | | | 1,815 | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 65
Schedule of Investments June 30, 2010, all dollars are rounded to thousands (000)
| | | | | | | | | |
| Total Return Bond Fund (continued) |
| DESCRIPTION | | PAR/SHARES | | FAIR VALUE > |
| |
| |
| GSR Mortgage Loan Trust | | | | | | | | |
Series 2005-4F, Class B1 | | | | | | | | |
5.737%, 05/25/2035 ¥ | | $ | 2,161 | | | $ | 1,253 | |
| Impac Secured Assets | | | | | | | | |
Series 2000-3, Class M1 | | | | | | | | |
8.000%, 10/25/2030 ¥ | | | 2,278 | | | | 2,020 | |
| JPMorgan Chase Commercial Mortgage Securities | | | | |
Series 2007-CB18, Class A4 | | | | | | | | |
5.440%, 06/12/2047 6 | | | 3,215 | | | | 3,211 | |
| Lehman Mortgage Trust | | | | | | | | |
Series 2008-6, Class 1A1 | | | | | | | | |
| 6.420%, 07/25/2047 | | | 2,648 | | | | 2,493 | |
| OBP Depositor Trust | | | | | | | | |
Series 2010-0BP, Class A | | | | | | | | |
4.646%, 07/15/2045 n « | | | 2,880 | | | | 2,893 | |
| Residential Accredit Loans | | | | | | | | |
Series 2005-QS12, Class A7 | | | | | | | | |
| 5.500%, 08/25/2035 | | | 1,565 | | | | 1,369 | |
| Washington Mutual Mortgage Pass-Through Certificates | | | | |
Series 2004-RA3, Class 2A | | | | | | | | |
| 6.367%, 08/25/2038 | | | 1,291 | | | | 1,322 | |
| | | | | | | | | |
| | | | | | | | 22,178 | |
| | | | | | | | | |
Total Collateralized Mortgage Obligation-Private Mortgage-Backed Securities | | | | | | | | |
(Cost $37,977) | | | | | | | 30,629 | |
| | | | | | | | | |
U.S. Government & Agency Securities – 3.4% |
| U.S. Treasuries – 3.4% |
| U.S. Treasury Bond | | | | | | | | |
4.625%, 02/15/2040 6 | | | 1,520 | | | | 1,709 | |
| U.S. Treasury Notes | | | | | | | | |
1.000%, 04/30/2012 6 | | | 13,655 | | | | 13,757 | |
2.250%, 05/31/2014 6 | | | 615 | | | | 635 | |
2.375%, 02/28/2015 6 | | | 3,915 | | | | 4,035 | |
3.625%, 08/15/2019 6 | | | 1,570 | | | | 1,660 | |
| 3.625%, 02/15/2020 | | | 375 | | | | 396 | |
| 3.500%, 05/15/2020 | | | 1,285 | | | | 1,345 | |
| | | | | | | | | |
Total U.S. Government & Agency Securities | | | | | | | | |
(Cost $23,234) | | | | | | | 23,537 | |
| | | | | | | | | |
Preferred Stocks – 0.4% |
| Banking – 0.1% |
| Goldman Sachs Group | | | | | | | | |
Series A 6 | | | 40,000 | | | | 718 | |
| | | | | | | | | |
| Insurance – 0.3% |
| Aspen Insurance Holdings | | | | | | | | |
Series A ¬ | | | 84,500 | | | | 1,907 | |
| | | | | | | | | |
| Sovereign – 0.0% |
| Fannie Mae | | | | | | | | |
| Series S | | | 217,000 | | | | 74 | |
| | | | | | | | | |
Total Preferred Stocks | | | | | | | | |
(Cost $7,984) | | | | | | | 2,699 | |
| | | | | | | | | |
| Municipal Bond – 0.2% |
| Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B | | | | | | | | |
| 6.950% 09/01/2016 | | | | | | | | |
(Cost $1,530) | | $ | 1,530 | | | | 1,530 | |
| | | | | | | | | |
Closed-End Funds – 0.1% |
| Highland Credit Strategies Fund | | | 23,000 | | | | 164 | |
| ING Clarion Global Real Estate Income Fund | | | 36,000 | | | | 232 | |
| Pioneer Diversified High Income Trust | | | 16,000 | | | | 316 | |
| | | | | | | | | |
Total Closed-End Funds | | | | | | | | |
(Cost $703) | | | | | | | 712 | |
| | | | | | | | | |
| Short-Term Investments – 5.2% |
| Money Market Fund – 4.5% |
First American Prime Obligations Fund, Class Z 0.089% Å Ω | | | 31,062,795 | | | | 31,063 | |
| | | | | | | | | |
| U.S. Treasury Obligations – 0.7% |
U.S. Treasury Bills o | | | | | | | | |
0.129%, 07/29/2010 6 | | $ | 1,170 | | | | 1,170 | |
| 0.205%, 12/16/2010 | | | 3,000 | | | | 2,997 | |
| 0.232%, 04/07/2011 | | | 695 | | | | 694 | |
| | | | | | | | | |
| | | | | | | | 4,861 | |
| | | | | | | | | |
Total Short-Term Investments | | | | | | | | |
(Cost $35,924) | | | | | | | 35,924 | |
| | | | | | | | | |
| Investment Purchased with Proceeds from Securities Lending – 10.1% |
Mount Vernon Securities Lending Prime Portfolio
0.282% Ω † |
(Cost $70,391) | | | 70,390,543 | | | | 70,391 | |
| | | | | | | | | |
Total Investments 5 – 110.6% | | | | | | | | |
(Cost $749,660) | | | | | | | 765,700 | |
| | | | | | | | | |
Other Assets and Liabilities, Net – (10.6)% | | | | | | | (73,472 | ) |
| | | | | | | | | |
Total Net Assets – 100.0% | | | | | | $ | 692,228 | |
| | | | | | | | | |
| | |
| > | | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. |
| |
| Δ | | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2010. |
| |
| ¬ | | Foreign security fair values are stated in U.S. dollars. For debt securities, principal amounts are denominated in U.S. dollars unless otherwise noted. As of June 30, 2010, the fair value of foreign securities was $121,901 or 17.6% of total net assets. |
| |
| 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, 2010, the fair value of these investments was $98,697 or 14.3% 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, 2010. Total loaned securities had a fair value of $68,679 at June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| ¥ | | Security considered illiquid. As of June 30, 2010, the fair value of the fund’s investments considered to be illiquid was $7,885 or 1.1% of total net assets. See note 2 in notes to Financial Statements. |
| |
| « | | Security purchased on a when-issued basis. On June 30, 2010, the total cost of investments purchased on a when-issued basis was $9,897 or 1.4% of total net assets. |
| |
| 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. |
| |
| Ω | | The rate shown is the annualized seven-day effective yield as of June 30, 2010. |
| |
| o | | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of June 30, 2010. See note 2 in Notes to Financial Statements. |
| |
| † | | The fund may loan securities representing up to one third of the fair 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 fair value of the securities loaned. The adequacy of the collateral is monitored on a daily basis. The cash collateral received by the |
66 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
Total Return Bond Fund (concluded)
| | |
| | fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. |
| |
| 5 | | On June 30, 2010, the cost of investments for federal income tax purposes was approximately $756,437. The approximate aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
| | | | | |
| Gross unrealized appreciation | | $ | 37,926 | |
| Gross unrealized depreciation | | | (28,663 | ) |
| | | | | |
| Net unrealized appreciation | | $ | 9,263 | |
| | | | | |
| |
| 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 2010 | | | | 88 | | | $ | 7,369 | | | $ | 2 | |
| U.S. Treasury 5 Year Note Futures | | | September 2010 | | | | (423 | ) | | | (50,063 | ) | | | (695 | ) |
| U.S. Treasury 10 Year Note Futures | | | September 2010 | | | | (713 | ) | | | (87,376 | ) | | | (1,515 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (2,208 | ) |
| | | | | | | | | | | | | | | | | |
Credit Default Swaps on Credit Indices
Sell Protection1
| | | | | | | | | | | | | | | | | | | |
| | | Reference
| | Receive
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Fixed Rate | | | Date | | | Amount2 | | | Depreciation | |
| | |
| JPMorgan Chase | | Markit iTraxx CDX NA HY 14 | | | 5.000% | | | | 06/20/2015 | | | $ | 20,300 | | | $ | (296 | ) |
| UBS | | Markit iTraxx CDX NA HY 14 | | | 5.000% | | | | 06/20/2015 | | | | 8,500 | | | | (26 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | (322 | ) |
| | | | | | | | | | | | | | | | | | | |
| | |
| | 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 Agreements
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pay/
| | | | | | | | | | | | | |
| | | Floating
| | Receive
| | | | | | | | | | | | | |
| | | Rate
| | Floating
| | | Fixed
| | | Expiration
| | | Notional
| | | Unrealized
| |
| Counterparty | | Index | | Rate | | | Rate | | | Date | | | Amount | | | Appreciation | |
| | |
| UBS | | 3-Month LIBOR | | | Receive | | | | 2.056% | | | | 07/01/2015 | | | $ | 71,000 | | | $ | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 67
| |
| Statements of Assets and Liabilities | June 30, 2010, all dollars and shares are rounded to thousands (000), except for per share data |
| | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | Core
| | | | High Income
| | | | |
| | | Bond Fund | | | | Bond Fund | | | | |
| |
| Unaffiliated investments, at cost | | $ | 1,213,444 | | | | $ | 385,102 | | | | |
| Affiliated money market fund, at cost | | | 25,359 | | | | | 10,100 | | | | |
| Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | | | 81,712 | | | | | 77,333 | | | | |
| |
| |
ASSETS: | | | | | | | | | | | | |
| Unaffiliated investments, at fair value* (note 2) | | $ | 1,265,718 | | | | $ | 377,469 | | | | |
| Affiliated money market fund, at fair value (note 2) | | | 25,359 | | | | | 10,100 | | | | |
| Affiliated investment purchased with proceeds from securities lending, at fair value (note 2) | | | 81,712 | | | | | 77,333 | | | | |
| Cash | | | — | | | | | 65 | | | | |
| Receivable for dividends and interest | | | 11,810 | | | | | 7,668 | | | | |
| Receivable for investments sold | | | 17,023 | | | | | 2,306 | | | | |
| Receivable for capital shares sold | | | 3,661 | | | | | 518 | | | | |
| Receivable for variation margin (note 2) | | | 14 | | | | | 1 | | | | |
| Receivable for swap agreements | | | — | | | | | — | | | | |
| Unrealized appreciation of swap agreements | | | — | | | | | — | | | | |
| Prepaid expenses and other assets | | | 12 | | | | | 11 | | | | |
| |
| |
Total assets | | | 1,405,309 | | | | | 475,471 | | | | |
| |
| |
LIABILITIES: | | | | | | | | | | | | |
| Bank overdraft | | | — | | | | | — | | | | |
| Dividends payable | | | 2,645 | | | | | 2,308 | | | | |
| Payable upon return of securities loaned (note 2) | | | 81,712 | | | | | 77,333 | | | | |
| Payable for investments purchased | | | 15,546 | | | | | 6,847 | | | | |
| Payable for investments purchased on a when-issued basis | | | 18,834 | | | | | — | | | | |
| Payable for capital shares redeemed | | | 2,643 | | | | | 149 | | | | |
| Payable for variation margin (note 2) | | | — | | | | | — | | | | |
| Payable for swap agreements | | | — | | | | | — | | | | |
| Unrealized depreciation of swap agreements | | | 2,539 | | | | | — | | | | |
| Payable to affiliates (note 3) | | | 723 | | | | | 254 | | | | |
| Payable for distribution and shareholder servicing fees | | | 25 | | | | | 13 | | | | |
| Accrued expenses and other liabilities | | | 33 | | | | | 29 | | | | |
| |
| |
Total liabilities | | | 124,700 | | | | | 86,933 | | | | |
| |
| |
Net assets | | $ | 1,280,609 | | | | $ | 388,538 | | | | |
| |
| |
COMPOSITION OF NET ASSETS: | | | | | | | | | | | | |
| Portfolio capital | | | 1,291,921 | | | | | 419,997 | | | | |
| Undistributed (distributions in excess of) net investment income | | | 1,184 | | | | | 21 | | | | |
| Accumulated net realized gain (loss) on investments, future contracts, foreign currency transactions, options written, and swap agreements (note 2) | | | (60,114 | ) | | | | (24,026 | ) | | | |
| Net unrealized appreciation (depreciation) of: | | | | | | | | | | | | |
| Investments | | | 52,274 | | | | | (7,633 | ) | | | |
| Futures contracts | | | (2,117 | ) | | | | 179 | | | | |
| Swap agreements | | | (2,539 | ) | | | | — | | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | — | | | | | — | | | | |
| |
| |
Net assets | | $ | 1,280,609 | | | | $ | 388,538 | | | | |
| |
| |
| * Including securities loaned, at fair value | | $ | 79,807 | | | | $ | 75,028 | | | | |
| |
| |
68 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Inflation Protected
| | | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | |
| | | Securities Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | |
| |
| | | $ | 164,366 | | | | $ | 165,992 | | | | $ | 726,778 | | | | $ | 674,537 | | | | $ | 648,206 | | | |
| | | | 3,533 | | | | | 2,218 | | | | | 3,902 | | | | | 27,796 | | | | | 31,063 | | | |
| | | | 7,192 | | | | | 23,635 | | | | | 99,022 | | | | | 64,562 | | | | | 70,391 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 169,580 | | | | $ | 170,673 | | | | $ | 760,549 | | | | $ | 687,742 | | | | $ | 664,246 | | | |
| | | | 3,533 | | | | | 2,218 | | | | | 3,902 | | | | | 27,796 | | | | | 31,063 | | | |
| | | | 7,192 | | | | | 23,635 | | | | | 99,022 | | | | | 64,562 | | | | | 70,391 | | | |
| | | | — | | | | | 4 | | | | | — | | | | | — | | | | | — | | | |
| | | | 1,388 | | | | | 1,166 | | | | | 7,407 | | | | | 5,094 | | | | | 7,459 | | | |
| | | | — | | | | | 1,225 | | | | | 5,032 | | | | | 251 | | | | | 6,800 | | | |
| | | | 860 | | | | | 409 | | | | | 1,330 | | | | | 2,294 | | | | | 647 | | | |
| | | | — | | | | | — | | | | | 2 | | | | | 70 | | | | | — | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 25 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 2 | | | |
| | | | 12 | | | | | — | | | | | 2 | | | | | 4 | | | | | 16 | | | |
| |
| |
| | | | 182,565 | | | | | 199,330 | | | | | 877,246 | | | | | 787,813 | | | | | 780,649 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | | 293 | | | | | — | | | |
| | | | 716 | | | | | 167 | | | | | 1,539 | | | | | 1,003 | | | | | 2,034 | | | |
| | | | 7,192 | | | | | 23,635 | | | | | 99,022 | | | | | 64,562 | | | | | 70,391 | | | |
| | | | 1,003 | | | | | 898 | | | | | 7,427 | | | | | — | | | | | 3,178 | | | |
| | | | — | | | | | 583 | | | | | — | | | | | — | | | | | 9,897 | | | |
| | | | 343 | | | | | 258 | | | | | 6,025 | | | | | 618 | | | | | 848 | | | |
| | | | 5 | | | | | 7 | | | | | — | | | | | — | | | | | 62 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 1,241 | | | |
| | | | 312 | | | | | — | | | | | 1,492 | | | | | 1,072 | | | | | 322 | | | |
| | | | 77 | | | | | 65 | | | | | 442 | | | | | 332 | | | | | 409 | | | |
| | | | 7 | | | | | 4 | | | | | 3 | | | | | 13 | | | | | 10 | | | |
| | | | 28 | | | | | 30 | | | | | 31 | | | | | 27 | | | | | 29 | | | |
| |
| |
| | | �� | 9,683 | | | | | 25,647 | | | | | 115,981 | | | | | 67,920 | | | | | 88,421 | | | |
| |
| |
| | | $ | 172,882 | | | | $ | 173,683 | | | | $ | 761,265 | | | | $ | 719,893 | | | | $ | 692,228 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 183,078 | | | | | 182,672 | | | | | 752,466 | | | | | 735,211 | | | | | 767,469 | | | |
| | | | 614 | | | | | (185 | ) | | | | 45 | | | | | (640 | ) | | | | 1,957 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (15,577 | ) | | | | (13,543 | ) | | | | (23,785 | ) | | | | (25,491 | ) | | | | (90,704 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5,214 | | | | | 4,681 | | | | | 33,771 | | | | | 13,205 | | | | | 16,040 | | | |
| | | | (134 | ) | | | | 58 | | | | | 260 | | | | | (1,320 | ) | | | | (2,208 | ) | | |
| | | | (312 | ) | | | | — | | | | | (1,492 | ) | | | | (1,072 | ) | | | | (320 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1 | ) | | | | — | | | | | — | | | | | — | | | | | (6 | ) | | |
| |
| |
| | | $ | 172,882 | | | | $ | 173,683 | | | | $ | 761,265 | | | | $ | 719,893 | | | | $ | 692,228 | | | |
| |
| |
| | | $ | 7,033 | | | | $ | 23,146 | | | | $ | 96,774 | | | | $ | 63,181 | | | | $ | 68,679 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 69
| |
| Statements of Assets and Liabilities | June 30, 2010, all dollars and shares are rounded to thousands (000), except for per share data |
| | | | | | | | | | | | |
| | | | | | | | | | |
| | | Core
| | | | High Income
| | | |
| | | Bond Fund | | | | Bond Fund | | | |
| |
Class A: | | | | | | | | | | | |
| Net assets | | $ | 93,374 | | | | $ | 29,532 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 8,323 | | | | | 3,565 | | | |
| Net asset value and redemption price per share | | $ | 11.22 | | | | $ | 8.28 | | | |
Maximum offering price per share1 | | $ | 11.72 | | | | $ | 8.65 | | | |
Class B2: | | | | | | | | | | | |
| Net assets | | $ | 3,607 | | | | $ | 1,628 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 324 | | | | | 198 | | | |
Net asset value, offering price, and redemption price per share3 | | $ | 11.12 | | | | $ | 8.23 | | | |
Class C: | | | | | | | | | | | |
| Net assets | | $ | 3,796 | | | | $ | 6,969 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 340 | | | | | 845 | | | |
Net asset value per share3 | | $ | 11.18 | | | | $ | 8.25 | | | |
Class R: | | | | | | | | | | | |
| Net assets | | $ | 379 | | | | $ | 343 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 34 | | | | | 41 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 11.27 | | | | $ | 8.44 | | | |
Class Y: | | | | | | | | | | | |
| Net assets | | $ | 1,179,453 | | | | $ | 350,066 | | | |
| Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | | | 105,175 | | | | | 42,246 | | | |
| Net asset value, offering price, and redemption price per share | | $ | 11.21 | | | | $ | 8.29 | | | |
| |
| |
| | |
| | 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 | No new or additional investments are allowed in Class B shares. See note 1 in Notes to Financial Statements. |
| |
| | 3 | 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. |
70 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Inflation Protected
| | | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | |
| | | Securities Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 7,894 | | | | $ | 19,003 | | | | $ | 26,341 | | | | $ | 87,631 | | | | $ | 28,165 | | | |
| | | | 765 | | | | | 2,166 | | | | | 2,549 | | | | | 8,780 | | | | | 2,742 | | | |
| | | $ | 10.33 | | | | $ | 8.77 | | | | $ | 10.33 | | | | $ | 9.98 | | | | $ | 10.27 | | | |
| | | $ | 10.79 | | | | $ | 8.97 | | | | $ | 10.57 | | | | $ | 10.21 | | | | $ | 10.73 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | $ | 1,413 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 138 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | $ | 10.22 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 6,673 | | | | $ | 1,940 | | | | | — | | | | $ | 3,111 | | | | $ | 6,748 | | | |
| | | | 651 | | | | | 221 | | | | | — | | | | | 311 | | | | | 662 | | | |
| | | $ | 10.24 | | | | $ | 8.77 | | | | | — | | | | $ | 10.00 | | | | $ | 10.20 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 1,332 | | | | $ | 652 | | | | | — | | | | | — | | | | $ | 601 | | | |
| | | | 129 | | | | | 74 | | | | | — | | | | | — | | | | | 58 | | | |
| | | $ | 10.31 | | | | $ | 8.77 | | | | | — | | | | | — | | | | $ | 10.31 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 156,983 | | | | $ | 152,088 | | | | $ | 734,924 | | | | $ | 629,151 | | | | $ | 655,301 | | | |
| | | | 15,181 | | | | | 17,339 | | | | | 71,409 | | | | | 63,005 | | | | | 63,853 | | | |
| | | $ | 10.34 | | | | $ | 8.77 | | | | $ | 10.29 | | | | $ | 9.99 | | | | $ | 10.26 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 71
| |
| Statements of Operations | For the year ended June 30, 2010, all dollars are rounded to thousands (000) |
| | | | | | | | | | | | |
| | | | | | | | | | |
| | | Core
| | | | High Income
| | | |
| | | Bond Fund | | | | Bond Fund | | | |
| |
INVESTMENT INCOME: | | | | | | | | | | | |
| Interest from unaffiliated investments | | $ | 74,981 | | | | $ | 28,162 | | | |
| Dividends from unaffiliated investments | | | 85 | | | | | 2,009 | | | |
| Dividends from affiliated money market fund | | | 51 | | | | | 11 | | | |
| Less: Foreign taxes withheld | | | — | | | | | (11 | ) | | |
| Securities lending income | | | 131 | | | | | 251 | | | |
| |
| |
Total investment income | | | 75,248 | | | | | 30,422 | | | |
| |
| |
EXPENSES (note 3): | | | | | | | | | | | |
| Investment advisory fees | | | 6,694 | | | | | 2,307 | | | |
| Administration fees | | | 3,000 | | | | | 766 | | | |
| Transfer agent fees | | | 210 | | | | | 130 | | | |
| Custodian fees | | | 67 | | | | | 17 | | | |
| Legal fees | | | 17 | | | | | 16 | | | |
| Audit fees | | | 40 | | | | | 39 | | | |
| Registration fees | | | 56 | | | | | 56 | | | |
| Postage and printing fees | | | 57 | | | | | 14 | | | |
| Directors’ fees | | | 31 | | | | | 31 | | | |
| Other expenses | | | 27 | | | | | 23 | | | |
| Distribution and shareholder servicing fees: | | | | | | | | | | | |
| Class A | | | 227 | | | | | 81 | | | |
| Class B | | | 49 | | | | | 20 | | | |
| Class C | | | 38 | | | | | 61 | | | |
| Class R | | | 2 | | | | | 2 | | | |
| |
| |
Total expenses | | | 10,515 | | | | | 3,563 | | | |
| |
| |
| Less: Fee waivers (note 3) | | | (885 | ) | | | | (609 | ) | | |
| |
| |
Total net expenses | | | 9,630 | | | | | 2,954 | | | |
| |
| |
Investment income – net | | | 65,618 | | | | | 27,468 | | | |
| |
| |
REALIZED AND UNREALIZED GAINS (LOSSES) – NET (note 5): | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | |
| Investments | | | (1,794 | ) | | | | 23,740 | | | |
| Futures contracts | | | (2,773 | ) | | | | 52 | | | |
| Swap agreements | | | 5,671 | | | | | — | | | |
| Options written | | | — | | | | | — | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (3 | ) | | | | — | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | |
| Investments | | | 157,451 | | | | | 13,991 | | | |
| Futures contracts | | | (967 | ) | | | | 187 | | | |
| Swap agreements | | | (3,764 | ) | | | | — | | | |
| Options written | | | — | | | | | — | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | — | | | | | — | | | |
| |
| |
Net gain on investments, futures contracts, swap agreements, options written, and foreign currency transactions | | | 153,821 | | | | | 37,970 | | | |
| |
| |
Net increase in net assets resulting from operations | | $ | 219,439 | | | | $ | 65,438 | | | |
| |
| |
72 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | Inflation Protected
| | | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | |
| | | Securities Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 5,868 | | | | $ | 4,022 | | | | $ | 38,474 | | | | $ | 21,332 | | | | $ | 41,647 | | | |
| | | | 31 | | | | | — | | | | | 37 | | | | | — | | | | | 280 | | | |
| | | | 9 | | | | | 1 | | | | | 32 | | | | | 23 | | | | | 37 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |
| | | | 50 | | | | | 23 | | | | | 98 | | | | | 64 | | | | | 61 | | | |
| |
| |
| | | | 5,958 | | | | | 4,046 | | | | | 38,641 | | | | | 21,419 | | | | | 42,025 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 775 | | | | | 676 | | | | | 3,885 | | | | | 2,769 | | | | | 4,077 | | | |
| | | | 355 | | | | | 320 | | | | | 1,758 | | | | | 1,271 | | | | | 1,536 | | | |
| | | | 101 | | | | | 89 | | | | | 60 | | | | | 118 | | | | | 121 | | | |
| | | | 8 | | | | | 7 | | | | | 39 | | | | | 28 | | | | | 34 | | | |
| | | | 16 | | | | | 17 | | | | | 17 | | | | | 17 | | | | | 16 | | | |
| | | | 41 | | | | | 38 | | | | | 40 | | | | | 39 | | | | | 41 | | | |
| | | | 45 | | | | | 59 | | | | | 30 | | | | | 46 | | | | | 54 | | | |
| | | | 6 | | | | | 9 | | | | | 32 | | | | | 28 | | | | | 22 | | | |
| | | | 30 | | | | | 30 | | | | | 31 | | | | | 31 | | | | | 31 | | | |
| | | | 22 | | | | | 25 | | | | | 23 | | | | | 23 | | | | | 24 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 17 | | | | | 33 | | | | | 67 | | | | | 202 | | | | | 48 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 16 | | | |
| | | | 40 | | | | | 8 | | | | | — | | | | | 11 | | | | | 44 | | | |
| | | | 7 | | | | | 2 | | | | | — | | | | | — | | | | | 2 | | | |
| |
| |
| | | | 1,463 | | | | | 1,313 | | | | | 5,982 | | | | | 4,583 | | | | | 6,066 | | | |
| |
| |
| | | | (477 | ) | | | | (476 | ) | | | | (526 | ) | | | | (1,149 | ) | | | | (910 | ) | | |
| |
| |
| | | | 986 | | | | | 837 | | | | | 5,456 | | | | | 3,434 | | | | | 5,156 | | | |
| |
| |
| | | | 4,972 | | | | | 3,209 | | | | | 33,185 | | | | | 17,985 | | | | | 36,869 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (418 | ) | | | | 336 | | | | | (736 | ) | | | | (4,660 | ) | | | | (3,645 | ) | | |
| | | | 811 | | | | | 321 | | | | | 2,078 | | | | | (2,779 | ) | | | | (9,664 | ) | | |
| | | | 15 | | | | | — | | | | | 402 | | | | | 514 | | | | | 6,235 | | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | 1,331 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3 | | | | | — | | | | | — | | | | | (1 | ) | | | | (503 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11,283 | | | | | 4,070 | | | | | 65,457 | | | | | 22,925 | | | | | 95,390 | | | |
| | | | (138 | ) | | | | 58 | | | | | 1,416 | | | | | (1,139 | ) | | | | (529 | ) | | |
| | | | (169 | ) | | | | — | | | | | (1,311 | ) | | | | (866 | ) | | | | (677 | ) | | |
| | | | — | | | | | — | | | | | — | | | | | — | | | | | (88 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1 | ) | | | | — | | | | | — | | | | | — | | | | | (7 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11,386 | | | | | 4,785 | | | | | 67,306 | | | | | 13,994 | | | | | 87,843 | | | |
| |
| |
| | | $ | 16,358 | | | | $ | 7,994 | | | | $ | 100,491 | | | | $ | 31,979 | | | | $ | 124,712 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 73
| |
| Statements of Changes in Net Assets | all dollars are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Core
| | | | High Income
| | | |
| | | Bond Fund | | | | Bond Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| | | | | | | | | | | | | | | | | | | | |
OPERATIONS: | | | | | | | | | | | | | | | | | | | |
| Investment income – net | | $ | 65,618 | | | $ | 84,630 | | | | $ | 27,468 | | | $ | 19,353 | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | |
| Investments | | | (1,794 | ) | | | (44,797 | ) | | | | 23,740 | | | | (41,280 | ) | | |
| Futures contracts | | | (2,773 | ) | | | (8,565 | ) | | | | 52 | | | | 1,291 | | | |
| Swap agreements | | | 5,671 | | | | (3,086 | ) | | | | — | | | | 1,530 | | | |
| Options written | | | — | | | | (56 | ) | | | | — | | | | — | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | (3 | ) | | | (80 | ) | | | | — | | | | — | | | |
| Net change in unrealized appreciation or depreciation of: | | | | | | | | | | | | | | | | | | | |
| Investments | | | 157,451 | | | | (53,547 | ) | | | | 13,991 | | | | (2,227 | ) | | |
| Futures contracts | | | (967 | ) | | | (1,120 | ) | | | | 187 | | | | 121 | | | |
| Swap agreements | | | (3,764 | ) | | | 2,856 | | | | | — | | | | (242 | ) | | |
| Options written | | | — | | | | — | | | | | — | | | | — | | | |
| Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | | | — | | | | (2 | ) | | | | — | | | | — | | | |
| |
| |
| Net increase (decrease) in net assets resulting from operations | | | 219,439 | | | | (23,767 | ) | | | | 65,438 | | | | (21,454 | ) | | |
| |
| |
DISTRIBUTIONS TO SHAREHOLDERS FROM: | | | | | | | | | | | | | | | | | | | |
| Investment income – net: | | | | | | | | | | | | | | | | | | | |
| Class A | | | (4,290 | ) | | | (5,156 | ) | | | | (2,599 | ) | | | (2,415 | ) | | |
| Class B | | | (201 | ) | | | (363 | ) | | | | (146 | ) | | | (245 | ) | | |
| Class C | | | (150 | ) | | | (213 | ) | | | | (447 | ) | | | (512 | ) | | |
| Class R | | | (19 | ) | | | (20 | ) | | | | (24 | ) | | | (23 | ) | | |
| Class Y | | | (61,718 | ) | | | (80,122 | ) | | | | (24,028 | ) | | | (16,979 | ) | | |
| Realized gain on investments – net: | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | | — | | | | — | | | |
| Class B | | | — | | | | — | | | | | — | | | | — | | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | |
| Class R | | | — | | | | — | | | | | — | | | | — | | | |
| Class Y | | | — | | | | — | | | | | — | | | | — | | | |
| Return of capital: | | | | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | | — | | | | — | | | |
| Class B | | | — | | | | — | | | | | — | | | | — | | | |
| Class C | | | — | | | | — | | | | | — | | | | — | | | |
| Class R | | | — | | | | — | | | | | — | | | | — | | | |
| Class Y | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| Total distributions | | | (66,378 | ) | | | (85,874 | ) | | | | (27,244 | ) | | | (20,174 | ) | | |
| |
| |
CAPITAL SHARE TRANSACTIONS (note 4): | | | | | | | | | | | | | | | | | | | |
| Class A: | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 11,630 | | | | 10,085 | | | | | 27,146 | | | | 16,377 | | | |
| Fund merger (note 9) | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 3,320 | | | | 3,991 | | | | | 1,743 | | | | 1,572 | | | |
| Payments for redemptions | | | (13,714 | ) | | | (19,007 | ) | | | | (29,443 | ) | | | (13,646 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class A transactions | | | 1,236 | | | | (4,931 | ) | | | | (554 | ) | | | 4,303 | | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 110 | | | | 381 | | | | | 193 | | | | 123 | | | |
| Reinvestment of distributions | | | 186 | | | | 335 | | | | | 105 | | | | 159 | | | |
| Payments for redemptions | | | (3,073 | ) | | | (2,011 | ) | | | | (1,157 | ) | | | (1,022 | ) | | |
| |
| |
| Decrease in net assets from Class B transactions | | | (2,777 | ) | | | (1,295 | ) | | | | (859 | ) | | | (740 | ) | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 874 | | | | 963 | | | | | 2,167 | | | | 491 | | | |
| Fund merger (note 9) | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 125 | | | | 176 | | | | | 226 | | | | 267 | | | |
| Payments for redemptions | | | (1,307 | ) | | | (1,459 | ) | | | | (1,236 | ) | | | (1,062 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class C transactions | | | (308 | ) | | | (320 | ) | | | | 1,157 | | | | (304 | ) | | |
| |
| |
| Class R: | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 108 | | | | 151 | | | | | 97 | | | | 105 | | | |
| Fund merger (note 9) | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 19 | | | | 20 | | | | | 10 | | | | 8 | | | |
| Payments for redemptions | | | (201 | ) | | | (36 | ) | | | | (72 | ) | | | (3 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class R transactions | | | (74 | ) | | | 135 | | | | | 35 | | | | 110 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | |
| Proceeds from sales | | | 224,539 | | | | 475,310 | | | | | 187,427 | | | | 62,943 | | | |
| Fund merger (note 9) | | | — | | | | — | | | | | — | | | | — | | | |
| Reinvestment of distributions | | | 18,523 | | | | 23,742 | | | | | 1,804 | | | | 1,716 | | | |
| Payments for redemptions | | | (485,332 | ) | | | (586,834 | ) | | | | (53,873 | ) | | | (49,948 | ) | | |
| |
| |
| Increase (decrease) in net assets from Class Y transactions | | | (242,270 | ) | | | (87,782 | ) | | | | 135,358 | | | | 14,711 | | | |
| |
| |
| Increase (decrease) in net assets from capital share transactions | | | (244,193 | ) | | | (94,193 | ) | | | | 135,137 | | | | 18,080 | | | |
| |
| |
| Total increase (decrease) in net assets | | | (91,132 | ) | | | (203,834 | ) | | | | 173,331 | | | | (23,548 | ) | | |
Net assets at beginning of period | | | 1,371,741 | | | | 1,575,575 | | | | | 215,207 | | | | 238,755 | | | |
| |
| |
Net assets at end of period | | $ | 1,280,609 | | | $ | 1,371,741 | | | | $ | 388,538 | | | $ | 215,207 | | | |
| |
| |
Undistributed (distributions in excess of) net investment income | | $ | 1,184 | | | $ | (389 | ) | | | $ | 21 | | | $ | (167 | ) | | |
| |
| |
| | |
| | 1 | The fund began offering Class C and Class R on October 28, 2009. |
| | 2 | The fund began offering Class C on October 28, 2009. |
74 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Inflation Protected
| | | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | |
| | | Securities Fund | | | | Bond Fund1 | | | | Bond Fund | | | | Bond Fund2 | | | | Bond Fund | | | |
| |
| | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | | Year Ended
| | | Year Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 4,972 | | | $ | 5,307 | | | | $ | 3,209 | | | $ | 2,827 | | | | $ | 33,185 | | | $ | 38,187 | | | | $ | 17,985 | | | $ | 16,150 | | | | $ | 36,869 | | | $ | 59,524 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (418 | ) | | | (6,928 | ) | | | | 336 | | | | 2,409 | | | | | (736 | ) | | | (15,230 | ) | | | | (4,660 | ) | | | (5,134 | ) | | | | (3,645 | ) | | | (61,203 | ) | | |
| | | | 811 | | | | 568 | | | | | 321 | | | | — | | | | | 2,078 | | | | (4,487 | ) | | | | (2,779 | ) | | | 987 | | | | | (9,664 | ) | | | (9,842 | ) | | |
| | | | 15 | | | | 667 | | | | | — | | | | — | | | | | 402 | | | | 2,045 | | | | | 514 | | | | 1,358 | | | | | 6,235 | | | | (14,144 | ) | | |
| | | | — | | | | (11 | ) | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (11 | ) | | | | 1,331 | | | | 915 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3 | | | | 7 | | | | | — | | | | — | | | | | — | | | | — | | | | | (1 | ) | | | (15 | ) | | | | (503 | ) | | | 264 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 11,283 | | | | (11,535 | ) | | | | 4,070 | | | | 768 | | | | | 65,457 | | | | (14,219 | ) | | | | 22,925 | | | | (3,864 | ) | | | | 95,390 | | | | (41,674 | ) | | |
| | | | (138 | ) | | | (183 | ) | | | | 58 | | | | — | | | | | 1,416 | | | | (789 | ) | | | | (1,139 | ) | | | (55 | ) | | | | (529 | ) | | | 1,035 | | | |
| | | | (169 | ) | | | (157 | ) | | | | — | | | | — | | | | | (1,311 | ) | | | 1,031 | | | | | (866 | ) | | | (227 | ) | | | | (677 | ) | | | 1,386 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (88 | ) | | | (408 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (1 | ) | | | 7 | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (7 | ) | | | 19 | | | |
| |
| |
| | | | 16,358 | | | | (12,258 | ) | | | | 7,994 | | | | 6,004 | | | | | 100,491 | | | | 6,538 | | | | | 31,979 | | | | 9,189 | | | | | 124,712 | | | | (64,128 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (192 | ) | | | (91 | ) | | | | (305 | ) | | | (257 | ) | | | | (1,095 | ) | | | (1,326 | ) | | | | (2,624 | ) | | | (2,560 | ) | | | | (1,012 | ) | | | (946 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (75 | ) | | | (125 | ) | | |
| | | | (107 | ) | | | (6 | ) | | | | (11 | ) | | | — | | | | | — | | | | — | | | | | (21 | ) | | | — | | | | | (194 | ) | | | (182 | ) | | |
| | | | (33 | ) | | | (28 | ) | | | | (5 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (22 | ) | | | (24 | ) | | |
| | | | (3,966 | ) | | | (7,681 | ) | | | | (2,949 | ) | | | (2,457 | ) | | | | (32,180 | ) | | | (39,603 | ) | | | | (15,745 | ) | | | (12,651 | ) | | | | (36,239 | ) | | | (57,528 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | (149 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (234 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (37 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (45 | ) | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (4 | ) | | |
| | | | — | | | | — | | | | | (1,675 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | (14,120 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | (53 | ) | | | | (2 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | (9 | ) | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | (15 | ) | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | — | | | | (2,696 | ) | | | | (16 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| |
| |
| | | | (4,298 | ) | | | (10,579 | ) | | | | (5,112 | ) | | | (2,714 | ) | | | | (33,275 | ) | | | (40,929 | ) | | | | (18,390 | ) | | | (15,211 | ) | | | | (37,542 | ) | | | (73,245 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 4,852 | | | | 3,292 | | | | | 3,604 | | | | 15,012 | | | | | 5,909 | | | | 3,133 | | | | | 32,250 | | | | 16,921 | | | | | 16,522 | | | | 3,930 | | | |
| | | | — | | | | — | | | | | 13,225 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 155 | | | | 110 | | | | | 407 | | | | 206 | | | | | 890 | | | | 1,092 | | | | | 2,045 | | | | 1,947 | | | | | 774 | | | | 924 | | | |
| | | | (3,026 | ) | | | (1,048 | ) | | | | (9,067 | ) | | | (11,591 | ) | | | | (6,593 | ) | | | (7,402 | ) | | | | (14,685 | ) | | | (11,765 | ) | | | | (5,066 | ) | | | (5,068 | ) | | |
| |
| |
| | | | 1,981 | | | | 2,354 | | | | | 8,169 | | | | 3,627 | | | | | 206 | | | | (3,177 | ) | | | | 19,610 | | | | 7,103 | | | | | 12,230 | | | | (214 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 138 | | | | 230 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 63 | | | | 131 | | | |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (735 | ) | | | (758 | ) | | |
| |
| |
| | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (534 | ) | | | (397 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5,477 | | | | 1,321 | | | | | 90 | | | | — | | | | | — | | | | — | | | | | 3,455 | | | | — | | | | | 4,120 | | | | 1,198 | | | |
| | | | — | | | | — | | | | | 2,023 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 94 | | | | 9 | | | | | 8 | | | | — | | | | | — | | | | — | | | | | 17 | | | | — | | | | | 139 | | | | 166 | | | |
| | | | (556 | ) | | | (287 | ) | | | | (219 | ) | | | — | | | | | — | | | | — | | | | | (359 | ) | | | — | | | | | (710 | ) | | | (1,819 | ) | | |
| |
| |
| | | | 5,015 | | | | 1,043 | | | | | 1,902 | | | | — | | | | | — | | | | — | | | | | 3,113 | | | | — | | | | | 3,549 | | | | (455 | ) | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 137 | | | | 317 | | | | | 134 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 337 | | | | 442 | | | |
| | | | — | | | | — | | | | | 874 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 33 | | | | 43 | | | | | 5 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 22 | | | | 28 | | | |
| | | | (197 | ) | | | (204 | ) | | | | (375 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (484 | ) | | | (130 | ) | | |
| |
| |
| | | | (27 | ) | | | 156 | | | | | 638 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (125 | ) | | | 340 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 58,004 | | | | 46,823 | | | | | 32,634 | | | | 109,739 | | | | | 199,377 | | | | 197,327 | | | | | 533,108 | | | | 134,155 | | | | | 151,764 | | | | 299,711 | | | |
| | | | — | | | | — | | | | | 81,335 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| | | | 592 | | | | 2,129 | | | | | 2,492 | | | | 1,341 | | | | | 8,060 | | | | 10,867 | | | | | 3,684 | | | | 3,778 | | | | | 9,613 | | | | 22,461 | | | |
| | | | (80,351 | ) | | | (137,643 | ) | | | | (68,118 | ) | | | (76,536 | ) | | | | (262,030 | ) | | | (217,486 | ) | | | | (233,939 | ) | | | (75,622 | ) | | | | (223,673 | ) | | | (622,967 | ) | | |
| |
| |
| | | | (21,755 | ) | | | (88,691 | ) | | | | 48,343 | | | | 34,544 | | | | | (54,593 | ) | | | (9,292 | ) | | | | 302,853 | | | | 62,311 | | | | | (62,296 | ) | | | (300,795 | ) | | |
| |
| |
| | | | (14,786 | ) | | | (85,138 | ) | | | | 59,052 | | | | 38,171 | | | | | (54,387 | ) | | | (12,469 | ) | | | | 325,576 | | | | 69,414 | | | | | (47,176 | ) | | | (301,521 | ) | | |
| |
| |
| | | | (2,726 | ) | | | (107,975 | ) | | | | 61,934 | | | | 41,461 | | | | | 12,829 | | | | (46,860 | ) | | | | 339,165 | | | | 63,392 | | | | | 39,994 | | | | (438,894 | ) | | |
| | | | 175,608 | | | | 283,583 | | | | | 111,749 | | | | 70,288 | | | | | 748,436 | | | | 795,296 | | | | | 380,728 | | | | 317,336 | | | | | 652,234 | | | | 1,091,128 | | | |
| |
| |
| | | $ | 172,882 | | | $ | 175,608 | | | | $ | 173,683 | | | $ | 111,749 | | | | $ | 761,265 | | | $ | 748,436 | | | | $ | 719,893 | | | $ | 380,728 | | | | $ | 692,228 | | | $ | 652,234 | | | |
| |
| |
| | | $ | 614 | | | $ | (9 | ) | | | $ | (185 | ) | | $ | 45 | | | | $ | 45 | | | $ | (36 | ) | | | $ | (640 | ) | | $ | (76 | ) | | | $ | 1,957 | | | $ | 534 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 75
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 | | |
| |
Core Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 10.04 | | | | $ | 0.51 | | | | $ | 1.18 | | | | $ | 1.69 | | | | $ | (0.51 | ) | | | $ | — | | | | $ | (0.51 | ) | | | $ | 11.22 | | | |
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 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.95 | | | | $ | 0.43 | | | | $ | 1.17 | | | | $ | 1.60 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 11.12 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 10.00 | | | | $ | 0.42 | | | | $ | 1.19 | | | | $ | 1.61 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | (0.43 | ) | | | $ | 11.18 | | | |
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 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 10.09 | | | | $ | 0.48 | | | | $ | 1.19 | | | | $ | 1.67 | | | | $ | (0.49 | ) | | | $ | — | | | | $ | (0.49 | ) | | | $ | 11.27 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 10.03 | | | | $ | 0.54 | | | | $ | 1.18 | | | | $ | 1.72 | | | | $ | (0.54 | ) | | | $ | — | | | | $ | (0.54 | ) | | | $ | 11.21 | | | |
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 | | | |
| |
| |
| | |
| | 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. |
76 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 17.11 | % | | | $ | 93,374 | | | | | 0.95 | % | | | | 4.65 | % | | | | 1.02 | % | | | | 4.58 | % | | | | 83 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 16.31 | % | | | $ | 3,607 | | | | | 1.70 | % | | | | 3.97 | % | | | | 1.77 | % | | | | 3.90 | % | | | | 83 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 16.32 | % | | | $ | 3,796 | | | | | 1.70 | % | | | | 3.91 | % | | | | 1.77 | % | | | | 3.84 | % | | | | 83 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 16.74 | % | | | $ | 379 | | | | | 1.20 | % | | | | 4.42 | % | | | | 1.27 | % | | | | 4.35 | % | | | | 83 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 17.42 | % | | | $ | 1,179,453 | | | | | 0.70 | % | | | | 4.93 | % | | | | 0.77 | % | | | | 4.86 | % | | | | 83 | % | | |
| | | | (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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 77
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
| | | Total
| | | End of
| | |
| | | of Period | | | Income | | | Investments | | | Operations | | | Income | | | Distributions | | | Period | | |
| |
High Income Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 7.15 | | | | $ | 0.67 | | | | $ | 1.12 | | | | $ | 1.79 | | | | $ | (0.66 | ) | | | $ | (0.66 | ) | | | $ | 8.28 | | | |
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 | ) | | | | (0.66 | ) | | | | 9.41 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 7.11 | | | | $ | 0.60 | | | | $ | 1.12 | | | | $ | 1.72 | | | | $ | (0.60 | ) | | | $ | (0.60 | ) | | | $ | 8.23 | | | |
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 | ) | | | | (0.59 | ) | | | | 9.37 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 7.12 | | | | $ | 0.60 | | | | $ | 1.13 | | | | $ | 1.73 | | | | $ | (0.60 | ) | | | $ | (0.60 | ) | | | $ | 8.25 | | | |
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 | ) | | | | (0.59 | ) | | | | 9.38 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 7.28 | | | | $ | 0.66 | | | | $ | 1.14 | | | | $ | 1.80 | | | | $ | (0.64 | ) | | | $ | (0.64 | ) | | | $ | 8.44 | | | |
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 | ) | | | | (0.65 | ) | | | | 9.53 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 7.16 | | | | $ | 0.69 | | | | $ | 1.12 | | | | $ | 1.81 | | | | $ | (0.68 | ) | | | $ | (0.68 | ) | | | $ | 8.29 | | | |
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 | ) | | | | (0.69 | ) | | | | 9.42 | | | |
| |
| |
| | |
| | 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 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 through 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. |
78 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 25.47 | % | | | $ | 29,532 | | | | | 1.10 | % | | | | 8.12 | % | | | | 1.29 | % | | | | 7.93 | % | | | | 132 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 24.56 | % | | | $ | 1,628 | | | | | 1.85 | % | | | | 7.47 | % | | | | 2.04 | % | | | | 7.28 | % | | | | 132 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 24.67 | % | | | $ | 6,969 | | | | | 1.85 | % | | | | 7.41 | % | | | | 2.04 | % | | | | 7.22 | % | | | | 132 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 25.12 | % | | | $ | 343 | | | | | 1.35 | % | | | | 7.92 | % | | | | 1.54 | % | | | | 7.73 | % | | | | 132 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 25.75 | % | | | $ | 350,066 | | | | | 0.85 | % | | | | 8.38 | % | | | | 1.04 | % | | | | 8.19 | % | | | | 132 | % | | |
| | | | (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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 79
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 | | |
| |
Inflation Protected Securities Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.59 | | | | $ | 0.28 | | | | $ | 0.73 | | | | $ | 1.01 | | | | $ | (0.27 | ) | | | $ | — | | | | $ | — | | | | $ | (0.27 | ) | | | $ | 10.33 | | | |
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 | | | |
20054 | | | 10.00 | | | | | 0.51 | | | | | (0.02 | ) | | | | 0.49 | | | | | (0.37 | ) | | | | — | | | | | — | | | | | (0.37 | ) | | | | 10.12 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.53 | | | | $ | 0.18 | | | | $ | 0.75 | | | | $ | 0.93 | | | | $ | (0.22 | ) | | | $ | — | | | | $ | — | | | | $ | (0.22 | ) | | | $ | 10.24 | | | |
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 | | | |
20054 | | | 10.00 | | | | | 0.40 | | | | | 0.02 | | | | | 0.42 | | | | | (0.31 | ) | | | | — | | | | | — | | | | | (0.31 | ) | | | | 10.11 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.58 | | | | $ | 0.26 | | | | $ | 0.72 | | | | $ | 0.98 | | | | $ | (0.25 | ) | | | $ | — | | | | $ | — | | | | $ | (0.25 | ) | | | $ | 10.31 | | | |
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 | | | |
20054 | | | 10.00 | | | | | 0.43 | | | | | 0.05 | | | | | 0.48 | | | | | (0.35 | ) | | | | — | | | | | — | | | | | (0.35 | ) | | | | 10.13 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.59 | | | | $ | 0.33 | | | | $ | 0.71 | | | | $ | 1.04 | | | | $ | (0.29 | ) | | | $ | — | | | | $ | — | | | | $ | (0.29 | ) | | | $ | 10.34 | | | |
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 | | | |
20054 | | | 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 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 through 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. |
80 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.62 | % | | | $ | 7,894 | | | | | 0.84 | % | | | | 2.77 | % | | | | 1.15 | % | | | | 2.46 | % | | | | 72 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 9.76 | % | | | $ | 6,673 | | | | | 1.60 | % | | | | 1.78 | % | | | | 1.91 | % | | | | 1.47 | % | | | | 72 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.32 | % | | | $ | 1,332 | | | | | 1.09 | % | | | | 2.64 | % | | | | 1.40 | % | | | | 2.33 | % | | | | 72 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 10.92 | % | | | $ | 156,983 | | | | | 0.59 | % | | | | 3.27 | % | | | | 0.90 | % | | | | 2.96 | % | | | | 72 | % | | |
| | | | (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 2010 ANNUAL REPORT 81
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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 8.67 | | | | $ | 0.20 | | | | $ | 0.27 | | | | $ | 0.47 | | | | $ | (0.20 | ) | | | $ | (0.17 | ) | | | $ | — | 6 | | | $ | (0.37 | ) | | | $ | 8.77 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20105 | | $ | 8.76 | | | | $ | 0.09 | | | | $ | 0.17 | | | | $ | 0.26 | | | | $ | (0.08 | ) | | | $ | (0.17 | ) | | | $ | — | 6 | | | $ | (0.25 | ) | | | $ | 8.77 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20105 | | $ | 8.76 | | | | $ | 0.09 | | | | $ | 0.20 | | | | $ | 0.29 | | | | $ | (0.11 | ) | | | $ | (0.17 | ) | | | $ | — | 6 | | | $ | (0.28 | ) | | | $ | 8.77 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 8.67 | | | | $ | 0.21 | | | | $ | 0.27 | | | | $ | 0.48 | | | | $ | (0.21 | ) | | | $ | (0.17 | ) | | | $ | — | 6 | | | $ | (0.38 | ) | | | $ | 8.77 | | | |
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 | | | |
| |
| |
Intermediate Term Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.47 | | | | $ | 0.42 | | | | $ | 0.86 | | | | $ | 1.28 | | | | $ | (0.42 | ) | | | $ | — | | | | $ | — | | | | $ | (0.42 | ) | | | $ | 10.33 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.43 | | | | $ | 0.43 | | | | $ | 0.86 | | | | $ | 1.29 | | | | $ | (0.43 | ) | | | $ | — | | | | $ | — | | | | $ | (0.43 | ) | | | $ | 10.29 | | | |
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 | | | |
| |
| |
| | |
| | 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 | Commenced operations on October 28, 2009. All ratios for the period October 28, 2009 to June 30, 2010 have been annualized, except total return and portfolio turnover. |
| |
| | 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. |
82 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.50 | % | | | $ | 19,003 | | | | | 0.75 | % | | | | 2.33 | % | | | | 1.19 | % | | | | 1.89 | % | | | | 105 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3.00 | % | | | $ | 1,940 | | | | | 1.60 | % | | | | 1.50 | % | | | | 1.94 | % | | | | 1.16 | % | | | | 105 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 3.34 | % | | | $ | 652 | | | | | 1.10 | % | | | | 1.78 | % | | | | 1.44 | % | | | | 1.44 | % | | | | 105 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 5.66 | % | | | $ | 152,088 | | | | | 0.60 | % | | | | 2.39 | % | | | | 0.94 | % | | | | 2.05 | % | | | | 105 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 13.64 | % | | | $ | 26,341 | | | | | 0.85 | % | | | | 4.12 | % | | | | 1.01 | % | | | | 3.96 | % | | | | 58 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 13.87 | % | | | $ | 734,924 | | | | | 0.70 | % | | | | 4.28 | % | | | | 0.76 | % | | | | 4.22 | % | | | | 58 | % | | |
| | | | 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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 83
Financial Highlights For a share outstanding throughout the indicated periods.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Realized and
| | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
| | | | | | Unrealized
| | | | | | Distributions
| | | Distributions
| | | Distribution
| | | | | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.66 | | | | $ | 0.31 | | | | $ | 0.34 | | | | $ | 0.65 | | | | $ | (0.33 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.33 | ) | | | $ | 9.98 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20105 | | $ | 9.95 | | | | $ | 0.13 | | | | $ | 0.06 | | | | $ | 0.19 | | | | $ | (0.14 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.14 | ) | | | $ | 10.00 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.67 | | | | $ | 0.32 | | | | $ | 0.34 | | | | $ | 0.66 | | | | $ | (0.34 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.34 | ) | | | $ | 9.99 | | | |
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 | | | |
| |
| |
Total Return Bond Fund1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.01 | | | | $ | 0.52 | | | | $ | 1.28 | | | | $ | 1.80 | | | | $ | (0.54 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.54 | ) | | | $ | 10.27 | | | |
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 | | | |
| Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 8.97 | | | | $ | 0.45 | | | | $ | 1.26 | | | | $ | 1.71 | | | | $ | (0.46 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.46 | ) | | | $ | 10.22 | | | |
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 | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 8.96 | | | | $ | 0.43 | | | | $ | 1.27 | | | | $ | 1.70 | | | | $ | (0.46 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.46 | ) | | | $ | 10.20 | | | |
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 | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.07 | | | | $ | 0.42 | | | | $ | 1.32 | | | | $ | 1.74 | | | | $ | (0.50 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.50 | ) | | | $ | 10.31 | | | |
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 | | | |
| Class Y | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
20102 | | $ | 9.01 | | | | $ | 0.55 | | | | $ | 1.25 | | | | $ | 1.80 | | | | $ | (0.55 | ) | | | $ | — | | | | $ | — | | | | | $ | (0.55 | ) | | | $ | 10.26 | | | |
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 | | | |
| |
| |
| | |
| | 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 | Commenced operations on October 28, 2009. All ratios for the period October 28, 2009 to June 30, 2010 have been annualized, except total return and portfolio turnover. |
| |
| | 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. |
84 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
The accompanying notes are an integral part of the financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | 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 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 6.77 | % | | | $ | 87,631 | | | | | 0.75 | % | | | | 3.17 | % | | | | 1.04 | % | | | | 2.88 | % | | | | 44 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1.90 | % | | | $ | 3,111 | | | | | 1.60 | % | | | | 1.95 | % | | | | 1.79 | % | | | | 1.76 | % | | | | 44 | % | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 6.92 | % | | | $ | 629,151 | | | | | 0.60 | % | | | | 3.26 | % | | | | 0.79 | % | | | | 3.07 | % | | | | 44 | % | | |
| | | | 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 | | | |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 20.21 | % | | | $ | 28,165 | | | | | 0.92 | % | | | | 5.19 | % | | | | 1.13 | % | | | | 4.98 | % | | | | 96 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 19.22 | % | | | $ | 1,413 | | | | | 1.74 | % | | | | 4.48 | % | | | | 1.87 | % | | | | 4.35 | % | | | | 96 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 19.13 | % | | | $ | 6,748 | | | | | 1.75 | % | | | | 4.34 | % | | | | 1.88 | % | | | | 4.21 | % | | | | 96 | % | | |
| | | | (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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 19.47 | % | | | $ | 601 | | | | | 1.24 | % | | | | 4.19 | % | | | | 1.37 | % | | | | 4.06 | % | | | | 96 | % | | |
| | | | 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 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 20.31 | % | | | $ | 655,301 | | | | | 0.74 | % | | | | 5.44 | % | | | | 0.87 | % | | | | 5.31 | % | | | | 96 | % | | |
| | | | 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 | | | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 85
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond 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, 2010, FAIF offered 38 funds, including the funds listed above. Effective at the close of business on January 29, 2010, U.S. Government Mortgage Fund merged with Intermediate Government Bond Fund. Intermediate Government Bond Fund is the accounting survivor. 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, and Total Return Bond 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 Term Bond Fund. Class R shares are not currently offered by Short Term Bond Fund. Prior to the close of business on June 30, 2008, Core Bond Fund, High Income Bond Fund, and Total Return Bond Fund offered Class B shares. Subsequent to that date, no new or additional investments are allowed in Class B shares, except through 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’s 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, then the ask price will be the closing price. If the last trade is below the bid, then 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 funds are valued at their respective net asset values on the valuation date. Investments in closed-end 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 fair 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 currencies traded
86 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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 internally 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 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 the net asset value that would be calculated without fair value pricing. As of June 30, 2010, High Income Bond Fund held internally fair valued securities with a total fair value of $323, or 0.1%, of total net assets.
Generally accepted accounting principles (“GAAP”) require disclosures regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or technique. These principles establish a three-tier fair value hierarchy for inputs used in measuring fair value. Fair value inputs are summarized in the three broad levels listed below:
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. and foreign securities for which an independent pricing service may be employed for purposes of fair market valuation).
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 is 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.
As of June 30, 2010, each fund’s investments were classified as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Core Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 553,502 | | | $ | 10,014 | | | $ | 563,516 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 288,770 | | | | — | | | | 288,770 | |
| Asset-Backed Securities | | | — | | | | 227,161 | | | | — | | | | 227,161 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 71,921 | | | | — | | | | 71,921 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 37,817 | | | | 18,461 | | | | 56,278 | |
| U.S. Government & Agency Securities | | | — | | | | 53,598 | | | | — | | | | 53,598 | |
| Preferred Stock | | | 74 | | | | — | | | | — | | | | 74 | |
| Short-Term Investments | | | 25,359 | | | | 4,400 | | | | — | | | | 29,759 | |
| Investment Purchased with Proceeds from Securities Lending | | | 81,712 | | | | — | | | | — | | | | 81,712 | |
| |
| |
| Total Investments | | $ | 107,145 | | | $ | 1,237,169 | | | $ | 28,475 | | | $ | 1,372,789 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 87
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
High Income Bond Fund | | | | | | | | | | | | | | | | |
| High Yield Corporate Bonds | | $ | — | | | $ | 328,599 | | | $ | 7,215 | | | $ | 335,814 | |
| Preferred Stocks | | | 12,403 | | | | — | | | | 879 | | | | 13,282 | |
| Investment Grade Corporate Bonds | | | — | | | | 9,270 | | | | — | | | | 9,270 | |
| Exchange-Traded Funds | | | 6,028 | | | | — | | | | — | | | | 6,028 | |
| Convertible Securities | | | 1,950 | | | | 3,864 | | | | — | | | | 5,814 | |
| Closed-End Funds | | | 4,438 | | | | — | | | | — | | | | 4,438 | |
| Common Stocks | | | 2,333 | | | | — | | | | 22 | | | | 2,355 | |
| Asset-Backed Securities | | | — | | | | 5 | | | | 323 | | | | 328 | |
| Short-Term Investments | | | 10,100 | | | | 140 | | | | — | | | | 10,240 | |
| Investment Purchased with Proceeds from Securities Lending | | | 77,333 | | | | — | | | | — | | | | 77,333 | |
| |
| |
| Total Investments | | $ | 114,585 | | | $ | 341,878 | | | $ | 8,439 | | | $ | 464,902 | |
| |
| |
Inflation Protected Securities Fund | | | | | | | | | | | | | | | | |
| U.S. Government & Agency Securities | | $ | — | | | $ | 151,592 | | | $ | — | | | $ | 151,592 | |
| Corporate Bonds | | | — | | | | 10,010 | | | | — | | | | 10,010 | |
| Asset-Backed Securities | | | — | | | | 5,534 | | | | — | | | | 5,534 | |
| Municipal Bond | | | — | | | | 760 | | | | — | | | | 760 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Security | | | — | | | | — | | | | 703 | | | | 703 | |
| Preferred Stocks | | | 212 | | | | — | | | | 180 | | | | 392 | |
| Exchange-Traded Fund | | | 212 | | | | — | | | | — | | | | 212 | |
| Convertible Security | | | 108 | | | | — | | | | — | | | | 108 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Security | | | — | | | | 80 | | | | — | | | | 80 | |
| Short-Term Investments | | | 3,533 | | | | 189 | | | | — | | | | 3,722 | |
| Investment Purchased with Proceeds from Securities Lending | | | 7,192 | | | | — | | | | — | | | | 7,192 | |
| |
| |
| Total Investments | | $ | 11,257 | | | $ | 168,165 | | | $ | 883 | | | $ | 180,305 | |
| |
| |
Intermediate Government Bond Fund | | | | | | | | | | | | | | | | |
| U.S. Government & Agency Securities | | $ | — | | | $ | 95,023 | | | $ | — | | | $ | 95,023 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 41,704 | | | | — | | | | 41,704 | |
| Asset-Backed Securities | | | — | | | | 14,732 | | | | — | | | | 14,732 | |
| Corporate Bonds | | | — | | | | 6,806 | | | | — | | | | 6,806 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 6,550 | | | | — | | | | 6,550 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 5,708 | | | | — | | | | 5,708 | |
| Short-Term Investments | | | 2,218 | | | | 150 | | | | — | | | | 2,368 | |
| Investment Purchased with Proceeds from Securities Lending | | | 23,635 | | | | — | | | | — | | | | 23,635 | |
| |
| |
| Total Investments | | $ | 25,853 | | | $ | 170,673 | | | $ | — | | | $ | 196,526 | |
| |
| |
Intermediate Term Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 397,410 | | | $ | — | | | $ | 397,410 | |
| Asset-Backed Securities | | | — | | | | 151,309 | | | | — | | | | 151,309 | |
| U.S. Government & Agency Securities | | | — | | | | 70,933 | | | | — | | | | 70,933 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 60,178 | | | | — | | | | 60,178 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 56,807 | | | | — | | | | 56,807 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 9,375 | | | | 10,874 | | | | 20,249 | |
| Municipal Bond | | | — | | | | 1,620 | | | | — | | | | 1,620 | |
| Preferred Stock | | | 35 | | | | — | | | | — | | | | 35 | |
| Short-Term Investments | | | 3,902 | | | | 2,008 | | | | — | | | | 5,910 | |
| Investment Purchased with Proceeds from Securities Lending | | | 99,022 | | | | — | | | | — | | | | 99,022 | |
| |
| |
| Total Investments | | $ | 102,959 | | | $ | 749,640 | | | $ | 10,874 | | | $ | 863,473 | |
| |
| |
Short Term Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 286,845 | | | $ | 1,939 | | | $ | 288,784 | |
| Asset-Backed Securities | | | — | | | | 180,933 | | | | — | | | | 180,933 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 84,429 | | | | — | | | | 84,429 | |
| U.S. Government & Agency Securities | | | — | | | | 57,850 | | | | — | | | | 57,850 | |
| Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 56,610 | | | | — | | | | 56,610 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 10,124 | | | | 6,864 | | | | 16,988 | |
| Short-Term Investments | | | 27,796 | | | | 2,148 | | | | — | | | | 29,944 | |
| Investment Purchased with Proceeds from Securities Lending | | | 64,562 | | | | — | | | | — | | | | 64,562 | |
| |
| |
| Total Investments | | $ | 92,358 | | | $ | 678,939 | | | $ | 8,803 | | | $ | 780,100 | |
| |
| |
88 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | Fair Value | |
| | |
Total Return Bond Fund | | | | | | | | | | | | | | | | |
| Corporate Bonds | | $ | — | | | $ | 416,716 | | | $ | 5,286 | | | $ | 422,002 | |
| Asset-Backed Securities | | | — | | | | 96,686 | | | | — | | | | 96,686 | |
| U.S. Government Agency Mortgage-Backed Securities | | | — | | | | 81,590 | | | | — | | | | 81,590 | |
| Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | | | — | | | | 24,609 | | | | 6,020 | | | | 30,629 | |
| U.S. Government & Agency Securities | | | — | | | | 23,537 | | | | — | | | | 23,537 | |
| Preferred Stocks | | | 1,981 | | | | — | | | | 718 | | | | 2,699 | |
| Municipal Bond | | | — | | | | 1,530 | | | | — | | | | 1,530 | |
| Closed-End Funds | | | 712 | | | | — | | | | — | | | | 712 | |
| Short-Term Investments | | | 31,063 | | | | 4,861 | | | | — | | | | 35,924 | |
| Investment Purchased with Proceeds from Securities Lending | | | 70,391 | | | | — | | | | — | | | | 70,391 | |
| |
| |
| Total Investments | | $ | 104,147 | | | $ | 649,529 | | | $ | 12,024 | | | $ | 765,700 | |
| |
| |
As of June 30, 2010, each fund’s investments in other financial instruments* were classified as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Total Unrealized
| |
| | | | | | | | | | | | Appreciation
| |
| Fund | | Level 1 | | | Level 2 | | | Level 3 | | | (Depreciation) | |
| | |
| Core Bond Fund | | $ | (2,117 | ) | | $ | (2,539 | ) | | $ | — | | | $ | (4,656 | ) |
| High Income Bond Fund | | | 179 | | | | — | | | | — | | | | 179 | |
| Inflation Protected Securities Fund | | | (134 | ) | | | (312 | ) | | | — | | | | (446 | ) |
| Intermediate Government Bond Fund | | | 58 | | | | — | | | | — | | | | 58 | |
| Intermediate Term Bond Fund | | | 260 | | | | (1,492 | ) | | | — | | | | (1,232 | ) |
| Short Term Bond Fund | | | (1,320 | ) | | | (1,072 | ) | | | — | | | | (2,392 | ) |
| Total Return Bond Fund | | | (2,208 | ) | | | (320 | ) | | | — | | | | (2,528 | ) |
| |
| |
| | |
| | * | 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
| | | Short
| | | Total
| |
| | | Core
| | | High Income
| | | Protected
| | | Term
| | | Term
| | | Return
| |
| | | Bond
| | | Bond
| | | Securities
| | | Bond
| | | Bond
| | | Bond
| |
| | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | |
| | |
| Balance as of June 30, 2009 | | $ | 27,756 | | | $ | 4,741 | | | $ | 84 | | | $ | 12,824 | | | $ | 9,564 | | | $ | 7,668 | |
| Accrued discounts | | | 84 | | | | 119 | | | | 2 | | | | — | | | | 6 | | | | 79 | |
| Realized gain (loss) | | | (2,929 | ) | | | 588 | | | | 15 | | | | (1,643 | ) | | | (80 | ) | | | (761 | ) |
| Net change in unrealized appreciation or depreciation | | | 5,095 | | | | (1,331 | ) | | | 7 | | | | 2,423 | | | | 466 | | | | 2,078 | |
| Net purchases (sales) | | | (4,031 | ) | | | 4,322 | | | | 775 | | | | (2,730 | ) | | | 847 | | | | 2,960 | |
Transfers in and/or out of Level 3 | | | 2,500 | | | | — | | | | — | | | | — | | | | (2,000 | ) | | | — | |
Balance as of June 30, 2010 | | $ | 28,475 | | | $ | 8,439 | | | $ | 883 | | | $ | 10,874 | | | $ | 8,803 | | | $ | 12,024 | |
| |
| |
| Net change in unrealized appreciation or depreciation during the period of Level 3 securities held as of June 30, 2010 | | $ | 504 | | | $ | (1,323 | ) | | $ | 6 | | | $ | (12 | ) | | $ | 71 | | | $ | 258 | |
| |
| |
During the period ended June 30, 2010, the funds recognized no significant transfers to/from Level 1 or Level 2. Transfers in and/or out of level 3 are shown using beginning of period values.
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 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 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, 2010, the funds did not have any tax positions that did not meet the “more-likely-than-not”
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 89
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
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.
On the Statements of Assets and Liabilities, the following reclassifications were made:
| | | | | | | | | | | | | |
| | | June 30, 2010 | |
| | |
| | | Accumulated
| | | Undistributed
| | | | |
| | | Net Realized
| | | Net Investment
| | | Portfolio
| |
| Fund | | Gain (Loss) | | | Income | | | Capital | |
| | |
| Core Bond Fund | | $ | (2,333 | ) | | $ | 2,333 | | | $ | — | |
| High Income Bond Fund | | | 36 | | | | (36 | ) | | | — | |
| Inflation Protected Securities Fund | | | 51 | | | | (51 | ) | | | — | |
| Intermediate Government Bond Fund | | | (14,303 | ) | | | (169 | ) | | | 14,472 | |
| Intermediate Term Bond Fund | | | (171 | ) | | | 171 | | | | — | |
| Short Term Bond Fund | | | 159 | | | | (159 | ) | | | — | |
| Total Return Bond Fund | | | (2,096 | ) | | | 2,096 | | | | — | |
| |
| |
The character of distributions made during the 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, 2010 and June 30, 2009 (adjusted by dividends payable as of June 30, 2010 and June 30, 2009) were as follows:
| | | | | | | | | | | | | | | | | |
| | | June 30, 2010 | |
| | |
| | | Ordinary
| | | Long Term
| | | Return of
| | | | |
| Fund | | Income | | | Gain | | | Capital | | | Total | |
| | |
| Core Bond Fund | | $ | 67,866 | | | $ | — | | | $ | — | | | $ | 67,866 | |
| High Income Bond Fund | | | 26,351 | | | | — | | | | — | | | | 26,351 | |
| Inflation Protected Securities Fund | | | 3,582 | | | | — | | | | — | | | | 3,582 | |
| Intermediate Government Bond Fund | | | 4,765 | | | | 256 | | | | 18 | | | | 5,039 | |
| Intermediate Term Bond Fund | | | 33,897 | | | | — | | | | — | | | | 33,897 | |
| Short Term Bond Fund | | | 18,434 | | | | — | | | | — | | | | 18,434 | |
| Total Return Bond Fund | | | 38,377 | | | | — | | | | — | | | | 38,377 | |
| |
| |
The funds designated as long term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the fund’s related to net capital gain to zero for the tax year ended June 30, 2010.
| | | | | | | | | | | | | | | | | |
| | | June 30, 2009 | |
| | |
| | | Ordinary
| | | Long Term
| | | Return of
| | | | |
| Fund | | Income | | | Gain | | | Capital | | | Total | |
| | |
| 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 | |
| |
| |
90 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
As of June 30, 2010, the funds’ most recently completed fiscal year-end, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | | | | | | | | | | | | | | |
| | | | | | Accumulated
| | | | | | Total
| |
| | | Undistributed
| | | Capital and
| | | Unrealized
| | | Accumulated
| |
| | | Ordinary
| | | Post-October
| | | Appreciation
| | | Earnings
| |
| Fund | | Income | | | Losses | | | (Depreciation) | | | (Deficit) | |
| | |
| Core Bond Fund | | $ | 3,843 | | | $ | (53,848 | ) | | $ | 41,352 | | | $ | (8,653 | ) |
| High Income Bond Fund | | | 2,342 | | | | (23,659 | ) | | | (7,823 | ) | | | (29,140 | ) |
| Inflation Protected Securities Fund | | | 1,342 | | | | (15,092 | ) | | | 4,280 | | | | (9,470 | ) |
| Intermediate Government Bond Fund | | | — | | | | (13,110 | ) | | | 4,306 | | | | (8,804 | ) |
| Intermediate Term Bond Fund | | | 1,595 | | | | (20,417 | ) | | | 29,171 | | | | 10,349 | |
| Short Term Bond Fund | | | 373 | | | | (23,042 | ) | | | 8,364 | | | | (14,305 | ) |
| Total Return Bond Fund | | | 4,209 | | | | (86,664 | ) | | | 9,259 | | | | (73,196 | ) |
| |
| |
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.
As of June 30, 2010, 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 | | 2011 | | | 2012 | | | 2013 | | | 2014 | | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | Total | |
| | |
| Core Bond Fund | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 994 | | | $ | — | | | $ | 25,107 | | | $ | 17,128 | | | $ | 43,229 | |
| High Income Bond Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 23,659 | | | | — | | | | 23,659 | |
| Inflation Protected Securities Fund | | | — | | | | — | | | | — | | | | 256 | | | | 5,928 | | | | 953 | | | | 4,724 | | | | 2,807 | | | | 14,668 | |
| Intermediate Government Bond Fund | | | 2,293 | | | | 1,293 | | | | 554 | | | | 1,629 | | | | 2,447 | | | | 165 | | | | 3,538 | | | | — | | | | 11,919 | |
| Intermediate Term Bond Fund | | | — | | | | — | | | | — | | | | — | | | | 3,607 | | | | — | | | | 11,744 | | | | 4,697 | | | | 20,048 | |
| Short Term Bond Fund | | | — | | | | — | | | | 1,315 | | | | 8,101 | | | | 7,433 | | | | — | | | | 839 | | | | 2,980 | | | | 20,668 | |
| Total Return Bond Fund | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 41,302 | | | | 37,557 | | | | 78,859 | |
| |
| |
Certain funds incurred a loss for tax purposes for the period from November 1, 2009 to June 30, 2010. 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, 2011. The following funds had deferred losses:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 10,619 | |
| Inflation Protected Securities Fund | | | 424 | |
| Intermediate Government Bond Fund | | | 1,191 | |
| Intermediate Term Bond Fund | | | 369 | |
| Short Term Bond Fund | | | 2,374 | |
| Total Return Bond Fund | | | 7,805 | |
| |
| |
DERIVATIVES – The funds may invest in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. The funds’ investments objectives allow the funds to enter into various types of derivative contracts, including, but not limited to, futures contracts, foreign exchange contracts, credit default swaps, interest rate swaps, total return swaps, currency swaps, and purchased and written options. Derivatives may contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and the potential for market movements which may expose the funds to gains or losses in excess of the amounts shown on the Statements of Assets and Liabilities.
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 their 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 funds’ Statements of Assets
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 91
| |
| Notes to Financial Statements | June 30, 2010, 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, 2010, 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 Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond 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 Statements of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statements 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.
Credit Default Swaps
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.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues 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.
92 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010 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, 2010, the following fund had outstanding credit default swap agreements as disclosed in its Schedule of Investments: Total Return Bond Fund.
Interest Rate Swaps
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.
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, 2010, the following funds had outstanding interest rate swap agreements: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond Fund.
Total Return Swaps
Certain funds may enter into total return swap agreements. In a total return swap, one party agrees to pay the other the “total return” of a defined underlying asset during a specified period, in return for periodic payments based on a fixed or variable interest rate (or, less frequently, the total return from other underlying assets). A total return swap may be applied to any underlying asset but is most commonly used with equity indices, single stocks, bonds and defined baskets of loans and mortgages. To the extent the total return of the underlying asset exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. As of June 30, 2010, no funds had outstanding total return swap agreements.
Currency Swaps
Certain funds may enter into currency swaps. A currency swap is an agreement between two parties to exchange equivalent fixed amounts in two different currencies for a fixed period of time. The exchange of currencies at the inception date of the contract takes place at the current spot rate. Such an agreement may provide that, for the duration of the swap, each party pays interest to the other on the received amount at an agreed upon fixed or floating interest rate. When the contract ends, the parties re-exchange the currencies at the initial exchange rate, a specified rate, or the then current spot rate. Some currency swaps may not provide for exchanging currencies, but only for exchanging interest cash flows. As of June 30, 2010, no funds had outstanding currency 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 a written option 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, 2010, no funds held written options.
Options purchased are recorded as investments and marked-to-market daily to reflect the current market value
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 93
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
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, 2010, no funds held purchased options.
For the fiscal year ended June 30, 2010, the quarterly average gross notional amounts of the derivatives held by the funds were:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Credit
| | | Interest
| | | Options
| | | Options
| |
| | | Futures/
| | | Futures/
| | | Default
| | | Rate
| | | Written-
| | | Written-
| |
| Fund | | Long | | | Short | | | Swaps | | | Swaps | | | Call | | | Put | |
| | |
| Core Bond Fund | | $ | 91,034 | | | $ | 136,642 | | | $ | 24,519 | | | $ | 91,600 | | | $ | — | | | $ | — | |
| High Income Bond Fund | | | 24,231 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Inflation Protected Securities Fund | | | 9,350 | | | | 2,467 | | | | 1,040 | | | | 10,400 | | | | — | | | | — | |
| Intermediate Government Bond Fund | | | 10,676 | | | | 3,114 | | | | — | | | | — | | | | — | | | | — | |
| Intermediate Term Bond Fund | | | 110,656 | | | | 19,401 | | | | 5,194 | | | | 52,000 | | | | — | | | | — | |
| Short Term Bond Fund | | | 45,820 | | | | 66,890 | | | | 13,600 | | | | 40,400 | | | | — | | | | — | |
| Total Return Bond Fund | | | 15,049 | | | | 153,846 | | | | 38,961 | | | | 40,400 | | | | 217 | | | | 150 | |
| |
| |
As of June 30, 2010, the funds’ fair values of derivative instruments categorized by risk exposure were classified as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | High
| | | Inflation
| | | Intermediate
| | | Intermediate
| | | Short
| | | Total
| |
| | | Statement of
| | Core
| | | Income
| | | Protected
| | | Government
| | | Term
| | | Term
| | | Return
| |
| | | Assets and Liabilities
| | Bond
| | | Bond
| | | Securities
| | | Bond
| | | Bond
| | | Bond
| | | Bond
| |
| | | Location | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | Fund | |
| | |
Asset Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Receivables, Net Assets – Unrealized Appreciation* | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2 | |
| Interest Rate Contracts | | Receivables, Net Assets – Unrealized Appreciation* | | | — | | | | 179 | | | | — | | | | 142 | | | | 604 | | | | 57 | | | | 2 | |
| Credit Contracts | | Receivables, Unrealized Appreciation | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
| |
| Balance as of June 30, 2010 | | $ | — | | | $ | 179 | | | $ | — | | | $ | 142 | | | $ | 604 | | | $ | 57 | | | $ | 4 | |
| |
| |
Liability Derivatives | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign Exchange Contracts | | Payables, Net Assets – Unrealized Depreciation* | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Interest Rate Contracts | | Payables, Net Assets – Unrealized Depreciation* | | | 4,656 | | | | — | | | | 446 | | | | 84 | | | | 1,836 | | | | 2,449 | | | | 2,210 | |
| Credit Contracts | | Payables, Unrealized Depreciation | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 322 | |
| |
| |
| Balance as of June 30, 2010 | | $ | 4,656 | | | $ | — | | | $ | 446 | | | $ | 84 | | | $ | 1,836 | | | $ | 2,449 | | | $ | 2,532 | |
| |
| |
| | |
| | * | 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, 2010:
Amount of realized gain (loss) on derivatives recognized in income:
| | | | | | | | | | | | | |
| Core Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (2,976 | ) | | $ | (968 | ) | | $ | (3,944 | ) |
| Credit Contracts | | | — | | | | 6,639 | | | | 6,639 | |
| Foreign Exchange Contracts | | | 203 | | | | — | | | | 203 | |
| |
| |
| | | | | | | | | | | | | |
| High Income Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 52 | | | $ | — | | | $ | 52 | |
| |
| |
| | | | | | | | | | | | | |
| Inflation Protected Securities Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 768 | | | $ | (110 | ) | | $ | 658 | |
| Credit Contracts | | | — | | | | 125 | | | | 125 | |
| Foreign Exchange Contracts | | | 43 | | | | — | | | | 43 | |
| |
| |
| | | | | | | | | | | | | |
| Intermediate Government Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 321 | | | $ | — | | | $ | 321 | |
| |
| |
94 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | |
| Intermediate Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 2,078 | | | $ | (540 | ) | | $ | 1,538 | |
| Credit Contracts | | | — | | | | 942 | | | | 942 | |
| |
| |
| | | | | | | | | | | | | |
| Short Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (2,801 | ) | | $ | (340 | ) | | $ | (3,141 | ) |
| Credit Contracts | | | — | | | | 854 | | | | 854 | |
| Foreign Exchange Contracts | | | 22 | | | | — | | | | 22 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| Total Return Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 272 | | | $ | (12,026 | ) | | $ | 2,892 | | | $ | (8,862 | ) |
| Credit Contracts | | | — | | | | — | | | | 3,343 | | | | 3,343 | |
| Foreign Exchange Contracts | | | — | | | | 2,362 | | | | — | | | | 2,362 | |
| |
| |
Change in unrealized appreciation (depreciation) on derivatives recognized in income:
| | | | | | | | | | | | | |
| Core Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (1,145 | ) | | $ | (2,322 | ) | | $ | (3,467 | ) |
| Credit Contracts | | | — | | | | (1,442 | ) | | | (1,442 | ) |
| Foreign Exchange Contracts | | | 178 | | | | — | | | | 178 | |
| |
| |
| | | | | | | | | | | | | |
| High Income Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 187 | | | $ | — | | | $ | 187 | |
| |
| |
| | | | | | | | | | | | | |
| Inflation Protected Securities Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (167 | ) | | $ | 116 | | | $ | (51 | ) |
| Credit Contracts | | | — | | | | (285 | ) | | | (285 | ) |
| Foreign Exchange Contracts | | | 29 | | | | — | | | | 29 | |
| |
| |
| | | | | | | | | | | | | |
| Intermediate Government Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 58 | | | $ | — | | | $ | 58 | |
| |
| |
| | | | | | | | | | | | | |
| Intermediate Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | 1,416 | | | $ | (1,384 | ) | | $ | 32 | |
| Credit Contracts | | | — | | | | 73 | | | | 73 | |
| |
| |
| | | | | | | | | | | | | |
| Short Term Bond Fund | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (1,168 | ) | | $ | (1,018 | ) | | $ | (2,186 | ) |
| Credit Contracts | | | — | | | | 152 | | | | 152 | |
| Foreign Exchange Contracts | | | 29 | | | | — | | | | 29 | |
| |
| |
| | | | | | | | | | | | | | | | | |
| Total Return Bond Fund | | Options | | | Futures | | | Swaps | | | Total | |
| | |
| Interest Rate Contracts | | $ | (88 | ) | | $ | (1,040 | ) | | $ | (1,584 | ) | | $ | (2,712 | ) |
| Credit Contracts | | | — | | | | — | | | | 907 | | | | 907 | |
| Foreign Exchange Contracts | | | — | | | | 511 | | | | — | | | | 511 | |
| |
| |
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 Statements 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:
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 95
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| | |
| | • | 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.
As of June 30, 2010, Inflation Protected Securities Fund and Total Return Bond Fund had non-U.S. dollar denominated investments with a total fair value of $3,530, and $31,869 or 2.0%, and 4.6%, respectively, 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, 2010, Core Bond Fund, Intermediate Government Bond Fund, and Total Return Bond Fund had when-issued or forward-commitment securities outstanding with a total cost of $18,834, $583, and $9,897, respectively.
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, 2010, 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 total 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, 2010, Core Bond Fund, High Income Bond Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, and Total Return Bond Fund had investments in illiquid securities with a total fair value of $4,382, $509, $2,247, $1,616, $1,624, and $7,885, respectively, or 0.3%, 0.1%, 1.3%, 0.2%, 0.2%, and 1.1%, 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 | | $ | 36 | | | | 10/02 | | | $ | 37 | |
Banc of America Funding,
Series 2007-4, Class 1A2 | | | 1,784 | | | | 9/07 | | | | 1,712 | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | | 3,165 | | | | 10/07 | | | | 2,992 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 738 | | | | 5/09 | | | | 186 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 3,102 | | | | 10/07 | | | | 2,960 | |
Westam Mortgage Financial,
Series 11, Class A | | | 38 | | | | 9/97 | | | | 37 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| High Income Bond Fund | | Shares/Par | | | Acquired | | | Basis | |
| | |
| American Home Mortgage Investments, Series B | | | 10 | | | | 7/07 | | | $ | 190 | |
Exum, Series 2007-1A, Class C | | $ | 1,063 | | | | 2/07-3/10 | | | | 1,063 | |
Exum, Series 2007-2A, Class C | | $ | 1,101 | | | | 4/07-6/10 | | | | 1,101 | |
| Georgia Gulf | | | 14 | | | | 10/09 | | | | 182 | |
Green Tree Financial,
Series 1998-1, Class A4 | | $ | 5 | | | | 5/99 | | | | 5 | |
| |
| |
96 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Intermediate Government Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | | $ | 41 | | | | 9/02 | | | $ | 42 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 868 | | | | 12/06 | | | | 897 | |
GSR Mortgage Loan Trust, Series 2005-4F, Class B1 | | | 1,297 | | | | 5/06 | | | | 1,231 | |
Impac Secured Assets,
Series 2003-3, Class M1 | | | 392 | | | | 3/08 | | | | 338 | |
Residential Accredit Loans, Series 2003-QS12, Class M1 | | | 651 | | | | 11/05 | | | | 634 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Intermediate Term Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Amresco Residential Security Mortgage, Series 1997-3, Class A9 | | $ | 25 | | | | 10/02 | | | $ | 25 | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | | 1,470 | | | | 10/07 | | | | 1,390 | |
Contimortgage Home Equity Loan Trust, Series 1997-2, Class A9 | | | 13 | | | | 10/02 | | | | 13 | |
Green Tree Financial,
Series 1996-9, Class A5 | | | 76 | | | | 4/00 | | | | 76 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 1,455 | | | | 10/07 | | | | 1,388 | |
Westam Mortgage Financial,
Series 11, Class A | | | 16 | | | | 11/97 | | | | 16 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Short Term Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Equivantage Home Equity Loan Trust, Series 1996-1, Class A | | $ | 10 | | | | 2/99 | | | $ | 10 | |
Equivantage Home Equity Loan Trust, Series 1996-4, Class A | | | 168 | | | | 1/00 | | | | 165 | |
GSR Mortgage Loan Trust, Series 2005-AR1, Class B1 | | | 1,952 | | | | 5/06 | | | | 1,892 | |
IMC Home Equity Loan Trust, Series 1998-3, Class A7 | | | 1,227 | | | | 10/02 | | | | 1,284 | |
| |
| |
| | | | | | | | | | | | | |
| | | | | | Dates
| | | Cost
| |
| Total Return Bond Fund | | Par | | | Acquired | | | Basis | |
| | |
Bank of America Alternative Loan Trust, Series 2007-1, Class 2A2 | | $ | 2,138 | | | | 9/07 | | | $ | 2,092 | |
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class D | | | 1,780 | | | | 10/07 | | | | 1,683 | |
GRMT Mortgage Loan Trust, Series 2001-1A, Class M1 | | | 122 | | | | 5/01 | | | | 122 | |
GSMPS Mortgage Loan Trust, Series 2003-1, Class B1 | | | 2,619 | | | | 12/06 | | | | 2,707 | |
GSR Mortgage Loan Trust, Series 2005-4F, Class B1 | | | 2,161 | | | | 5/06 | | | | 2,052 | |
GSR Mortgage Loan Trust, Series 2005-AR1, Class B1 | | | 1,997 | | | | 5/06 | | | | 1,935 | |
Impac Secured Assets,
Series 2000-3, Class M1 | | | 2,278 | | | | 3/08 | | | | 1,967 | |
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class C | | | 1,730 | | | | 10/07 | | | | 1,651 | |
| |
| |
SECURITIES LENDING – In order to generate additional income, each fund may lend 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. 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”). As the securities lending agent, U.S. Bank receives fees of up to 25% of each fund’s net income from securities lending transactions and pays half of such fees to FAF Advisors for certain securities lending services provided by FAF Advisors. 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, 2010, were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 32 | |
| High Income Bond Fund | | | 83 | |
| Inflation Protected Securities Fund | | | 11 | |
| Intermediate Government Bond | | | 4 | |
| Intermediate Term Bond Fund | | | 24 | |
| Short Term Bond Fund | | | 15 | |
| Total Return Bond Fund | | | 16 | |
| |
| |
Income from securities lending is recorded on the Statements 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
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 97
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
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, 2010.
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.
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 | | | |
| |
| |
FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through October 31, 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 1 | | | 0.75 | | | | NA | | | | 1.60 | | | | 1.10 | | | | 0.60 | | | |
| Intermediate Term Bond Fund | | | 0.85 | | | | NA | | | | NA | | | | NA | | | | 0.70 | | | |
Short Term Bond Fund 2 | | | 0.75 | | | | NA | | | | 1.60 | | | | NA | | | | 0.60 | | | |
| Total Return Bond Fund | | | 0.89 | * | | | 1.75 | | | | 1.75 | | | | 1.25 | | | | 0.75 | | | |
| |
| |
NA = Not Applicable
| | |
| | 1 | The fund began offering Class C and Class R on October 28, 2009. |
| |
| | 2 | The fund began offering Class C on October 28, 2009. |
| | |
| | * | Prior to October 28, 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 1.00% of average daily net assets. |
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 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. Effective July 1, 2010, such administration fees are based on the aggregate average daily net assets of all open-end funds in the First American Family of Funds, other than the series of First American Strategy Funds, Inc. All fees paid to the sub-administrator are paid from the administration fee. In
98 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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, 2010, 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 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, Class B, Class C, 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. Effective October 28, 2009, FAF Advisors is waiving an additional amount of Class A 12b-1 fees equal to 0.11% of average daily net assets of Class A shares for Total Return Bond Fund.
For the fiscal year ended June 30, 2010, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:
| | | | | |
| Fund | | Amount | |
| | |
| Intermediate Government Bond Fund | | $ | 13 | |
| Intermediate Term Bond Fund | | | 27 | |
| Short Term Bond Fund | | | 81 | |
| |
| |
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended June 30, 2010:
| | | | | |
| Fund | | Amount | |
| | |
| Core Bond Fund | | $ | 141 | |
| High Income Bond Fund | | | 36 | |
| Inflation Protected Securities Fund | | | 42 | |
| Intermediate Government Bond Fund | | | 12 | |
| Intermediate Term Bond Fund | | | 22 | |
| Short Term Bond Fund | | | 71 | |
| Total Return Bond Fund | | | 56 | |
| |
| |
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, 2010, legal fees and expenses of $39 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.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 99
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
For the fiscal year ended June 30, 2010, 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 | | $ | 69 | |
| High Income Bond Fund | | | 64 | |
| Inflation Protected Securities Fund | | | 83 | |
| Intermediate Government Bond Fund | | | 1 | |
| Intermediate Term Bond Fund | | | 44 | |
| Short Term Bond Fund | | | 194 | |
| Total Return Bond Fund | | | 101 | |
| |
| |
| |
| 4 > | Capital Share Transactions |
FAIF has 372 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
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 1,069 | | | | 1,052 | | | | | 3,282 | | | | 2,674 | | | | | 483 | | | | 345 | | | |
| Shares issued in lieu of cash distributions | | | 303 | | | | 415 | | | | | 212 | | | | 238 | | | | | 15 | | | | 12 | | | |
| Shares redeemed | | | (1,255 | ) | | | (1,968 | ) | | | | (3,521 | ) | | | (2,143 | ) | | | | (300 | ) | | | (113 | ) | | |
| |
| |
Total Class A transactions | | | 117 | | | | (501 | ) | | | | (27 | ) | | | 769 | | | | | 198 | | | | 244 | | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 10 | | | | 40 | | | | | 25 | | | | 19 | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 17 | | | | 35 | | | | | 13 | | | | 24 | | | | | — | | | | — | | | |
| Shares redeemed | | | (284 | ) | | | (212 | ) | | | | (143 | ) | | | (146 | ) | | | | — | | | | — | | | |
| |
| |
Total Class B transactions | | | (257 | ) | | | (137 | ) | | | | (105 | ) | | | (103 | ) | | | | — | | | | — | | | |
| |
| |
| Class C: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 81 | | | | 100 | | | | | 264 | | | | 76 | | | | | 550 | | | | 141 | | | |
| Shares issued in lieu of cash distributions | | | 12 | | | | 18 | | | | | 27 | | | | 41 | | | | | 9 | | | | 1 | | | |
| Shares redeemed | | | (122 | ) | | | (154 | ) | | | | (154 | ) | | | (162 | ) | | | | (55 | ) | | | (31 | ) | | |
| |
| |
Total Class C transactions | | | (29 | ) | | | (36 | ) | | | | 137 | | | | (45 | ) | | | | 504 | | | | 111 | | | |
| |
| |
| Class R: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 10 | | | | 16 | | | | | 12 | | | | 15 | | | | | 13 | | | | 34 | | | |
| Shares issued in lieu of cash distributions | | | 2 | | | | 2 | | | | | 1 | | | | 1 | | | | | 3 | | | | 5 | | | |
| Shares redeemed | | | (18 | ) | | | (4 | ) | | | | (8 | ) | | | (1 | ) | | | | (19 | ) | | | (22 | ) | | |
| |
| |
Total Class R transactions | | | (6 | ) | | | 14 | | | | | 5 | | | | 15 | | | | | (3 | ) | | | 17 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 20,683 | | | | 50,362 | | | | | 23,104 | | | | 9,209 | | | | | 5,733 | | | | 4,880 | | | |
| Shares issued in lieu of cash distributions | | | 1,694 | | | | 2,469 | | | | | 218 | | | | 259 | | | | | 58 | | | | 224 | | | |
| Shares redeemed | | | (44,709 | ) | | | (60,581 | ) | | | | (6,515 | ) | | | (7,617 | ) | | | | (8,068 | ) | | | (14,964 | ) | | |
| |
| |
Total Class Y transactions | | | (22,332 | ) | | | (7,750 | ) | | | | 16,807 | | | | 1,851 | | | | | (2,277 | ) | | | (9,860 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | (22,507 | ) | | | (8,410 | ) | | | | 16,817 | | | | 2,487 | | | | | (1,578 | ) | | | (9,488 | ) | | |
| |
| |
100 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Intermediate Government
| | | | Intermediate Term
| | | | Short Term
| | | | Total Return
| | | |
| | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | | Bond Fund | | | |
| |
| | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | | Year
| | | Year
| | | |
| | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | | Ended
| | | Ended
| | | |
| | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | | 6/30/10 | | | 6/30/09 | | | |
| |
| Class A: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 415 | | | | 1,743 | | | | | 588 | | | | 346 | | | | | 3,251 | | | | 1,786 | | | | | 1,622 | | | | 468 | | | |
| Shares issued from merger | | | 1,538 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 47 | | | | 24 | | | | | 88 | | | | 120 | | | | | 206 | | | | 205 | | | | | 76 | | | | 112 | | | |
| Shares redeemed | | | (1,044 | ) | | | (1,330 | ) | | | | (651 | ) | | | (806 | ) | | | | (1,476 | ) | | | (1,253 | ) | | | | (504 | ) | | | (605 | ) | | |
| |
| |
Total Class A transactions | | | 956 | | | | 437 | | | | | 25 | | | | (340 | ) | | | | 1,981 | | | | 738 | | | | | 1,194 | | | | (25 | ) | | |
| |
| |
| Class B: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 14 | | | | 26 | | | |
| Shares issued in lieu of cash distributions | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 6 | | | | 16 | | | |
| Shares redeemed | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (74 | ) | | | (92 | ) | | |
| |
| |
Total Class B transactions | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (54 | ) | | | (50 | ) | | |
| |
| |
Class C1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 10 | | | | — | | | | | — | | | | — | | | | | 345 | | | | — | | | | | 408 | | | | 138 | | | |
| Shares issued from merger | | | 235 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 1 | | | | — | | | | | — | | | | — | | | | | 2 | | | | — | | | | | 14 | | | | 20 | | | |
| Shares redeemed | | | (25 | ) | | | — | | | | | — | | | | — | | | | | (36 | ) | | | — | | | | | (70 | ) | | | (221 | ) | | |
| |
| |
Total Class C transactions | | | 221 | | | | — | | | | | — | | | | — | | | | | 311 | | | | — | | | | | 352 | | | | (63 | ) | | |
| |
| |
Class R1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 15 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 33 | | | | 56 | | | |
| Shares issued from merger | | | 102 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 1 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | 2 | | | | 4 | | | |
| Shares redeemed | | | (44 | ) | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (52 | ) | | | (14 | ) | | |
| |
| |
Total Class R transactions | | | 74 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | (17 | ) | | | 46 | | | |
| |
| |
| Class Y: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares issued | | | 3,775 | | | | 12,740 | | | | | 19,865 | | | | 21,980 | | | | | 53,506 | | | | 14,211 | | | | | 15,080 | | | | 34,364 | | | |
| Shares issued from merger | | | 9,456 | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | | | — | | | | — | | | |
| Shares issued in lieu of cash distributions | | | 288 | | | | 155 | | | | | 799 | | | | 1,202 | | | | | 370 | | | | 398 | | | | | 956 | | | | 2,723 | | | |
| Shares redeemed | | | (7,857 | ) | | | (8,797 | ) | | | | (26,062 | ) | | | (24,094 | ) | | | | (23,455 | ) | | | (8,043 | ) | | | | (22,465 | ) | | | (74,865 | ) | | |
| |
| |
Total Class Y transactions | | | 5,662 | | | | 4,098 | | | | | (5,398 | ) | | | (912 | ) | | | | 30,421 | | | | 6,566 | | | | | (6.429 | ) | | | (37,778 | ) | | |
| |
| |
Net increase (decrease) in capital shares | | | 6,913 | | | | 4,535 | | | | | (5,373 | ) | | | (1,252 | ) | | | | 32,713 | | | | 7,304 | | | | | (4,954 | ) | | | (37,870 | ) | | |
| |
| |
| | |
| | 1 | Class C and Class R shares were not offered by Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund during the fiscal year ended June 30, 2009. Intermediate Government Bond Fund began offering Class C and Class R shares on October 28, 2009. Short Term Bond Fund began offering Class C shares on October 28, 2009. |
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, 2010 and June 30, 2009, were as follows:
| | | | | | | | | |
| | | Year
| | | Year
| |
| | | Ended
| | | Ended
| |
| Fund | | 6/30/10 | | | 6/30/09 | |
| | |
| Core Bond Fund | | | 197 | | | | 63 | |
| High Income Bond Fund | | | 60 | | | | 26 | |
| Total Return Bond Fund | | | 48 | | | | 16 | |
| |
| |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 101
| |
| Notes to Financial Statements | June 30, 2010, all dollars and shares are rounded to thousands (000) |
| |
| 5 > | Investment Security Transactions |
During the fiscal year ended June 30, 2010, 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 | | $ | 706,223 | | | $ | 705,959 | | | $ | 390,174 | | | $ | 724,074 | |
| High Income Bond Fund | | | 32 | | | | — | | | | 547,449 | | | | 414,457 | |
| Inflation Protected Securities Fund | | | 96,264 | | | | 111,097 | | | | 11,852 | | | | 12,225 | |
| Intermediate Government Bond Fund | | | 188,209 | * | | | 156,087 | | | | 30,504 | * | | | 2,563 | |
| Intermediate Term Bond Fund | | | 176,343 | | | | 45,299 | | | | 256,543 | | | | 406,449 | |
| Short Term Bond Fund | | | 180,730 | | | | 81,229 | | | | 356,304 | | | | 155,590 | |
| Total Return Bond Fund | | | 338,425 | | | | 328,184 | | | | 289,875 | | | | 386,855 | |
| |
| |
| | |
| | * | Intermediate Government Bond Fund includes $59,513 of U.S. Government Securities and $16,062 of Other Investment Securities from U.S. Government Mortgage Fund that were acquired in a fund merger as described in Note 9. These amounts are excluded for purposes of calculating the fund’s portfolio turnover rate. |
Transactions in options written for the fiscal year ended June 30, 2010, were as follows:
| | | | | | | | | | | | | | | | | |
| | | Put Options Written | | | Call Options Written | |
| | | Number of
| | | Premium
| | | Number of
| | | Premium
| |
| Total Return Bond Fund | | Contracts | | | Amount | | | Contracts | | | Amount | |
| | |
| Balance at June 30, 2009 | | | 749 | | | $ | 571 | | | | 612 | | | $ | 329 | |
| Opened | | | 1,516 | | | | 644 | | | | 2,409 | | | | 1,180 | |
| Expired | | | (103 | ) | | | (47 | ) | | | — | | | | — | |
| Closed | | | (2,162 | ) | | | (1,168 | ) | | | (3,021 | ) | | | (1,509 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at June 30, 2010 | | | — | | | $ | — | | | | — | | | $ | — | |
| |
| |
| |
| 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 2010 ANNUAL REPORT
As of the close of business on January 29, 2010, Intermediate Government Bond Fund acquired the assets and assumed the liabilities of U.S. Government Mortgage Fund. Intermediate Government Bond Fund was deemed to be the accounting survivor in the merger. Shareholders of U.S. Government Mortgage Fund approved the merger on January 21, 2010.
The merger was accomplished by tax free exchanges as detailed below:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Intermediate Government Bond Fund | | Class A | | | Class B | | | Class C | | | Class R | | | Class Y | | | Total | |
| | |
| Net assets of U.S. Government Mortgage Fund | | $ | 10,604 | | | $ | 2,621 | | | $ | 2,023 | | | $ | 874 | | | $ | 81,335 | | | $ | 97,457 | |
| |
| |
| U.S. Government Mortgage Fund shares exchanged | | | 1,045 | | | | 258 | | | | 200 | | | | 86 | | | | 8,012 | | | | 9,601 | |
| |
| |
| Intermediate Government Bond shares issued | | | 1,538 | | | | — | | | | 235 | | | | 102 | | | | 9,456 | | | | 11,331 | |
| |
| |
| Net assets of Intermediate Government Bond Fund immediately before the merger | | $ | 8,063 | | | $ | — | | | $ | 1 | | | $ | 1 | | | $ | 87,606 | | | $ | 95,671 | |
| |
| |
| Net assets of Intermediate Government Bond Fund immediately after the merger | | $ | 21,289 | | | $ | — | | | $ | 2,024 | | | $ | 875 | | | $ | 168,940 | | | $ | 193,128 | |
| |
| |
The components of U.S. Government Mortgage Fund’s net assets prior to adjustments for any permanent book-to-tax differences at the merger date were as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Undistributed
| | | Accumulated
| | | | |
| | | Total
| | | Portfolio
| | | Net Investment
| | | Net Realized
| | | Net Unrealized
| |
| Fund | | Net Assets | | | Capital | | | Loss | | | Loss | | | Appreciation | |
| | |
| U.S. Government Mortgage Fund | | $ | 97,457 | | | $ | 111,558 | | | $ | (474 | ) | | $ | (13,746 | ) | | $ | 119 | |
| |
| |
| |
| 10 > | New Accounting Pronouncements |
On January 21, 2010, the Financial Accounting Standards Board issued an Accounting Standard Update for Fair Value Measurements and Disclosures: Improving Disclosures about Fair Value Measurements. The update provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires the funds to disclose purchases, sales, issuances and settlements on a gross basis in the Level 3 rollforward rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2010. At this time management is evaluating the implications of the update and the impact to the financial statements.
On July 28, 2010, U.S. Bancorp, the indirect parent company of FAF Advisors, Inc. (the “Advisor”), entered into an agreement to sell a portion of the Advisor’s asset management business to Nuveen Investments, Inc. (the “Purchaser”). Included in the sale will be that part of the Advisor’s asset management business that advises the funds. The sale is subject to the satisfaction of customary conditions, and is currently expected to close by the end of 2010.
Under the Investment Company Act of 1940, the closing of the transaction will cause each fund’s current investment advisory agreement with the Advisor to terminate. In connection with the transaction, the funds’ Board of Directors will be asked to consider and approve new investment advisory agreements for the funds with Nuveen Asset Management, a subsidiary of the Purchaser. If approved by the Board of Directors, each fund’s new investment advisory agreement will be submitted to the fund’s shareholders for their approval and, if approved, will take effect upon the closing of the transaction (or such later time as shareholder approval is obtained). The funds’ Board of Directors also will be asked to consider and approve new distribution agreements with Nuveen Investments, LLC. There will be no change in the funds’ investment objectives or policies as a result of the transaction.
Management has evaluated fund related events and transactions that occurred subsequent to June 30, 2010, through the date of issuance of the funds’ financial statements and determined that no additional events have occurred that require disclosure.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 103
| |
| Notice to Shareholders | June 30, 2010 (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 2011 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.
For the fiscal year ended June 30, 2010, 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
| | | Total
| | | |
| | | Distributions
| | | Distributions
| | | of 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 | | | | 100.0 | | | | 0.0 | | | | 100.0 | | | |
| Intermediate Government Bond Fund | | | 5.1 | | | | 94.5 | | | | 0.4 | | | | 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 | | | 0.0 | | | | 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, 2010, that are designated as dividends qualifying for the dividends received deduction available to corporate shareholders were as follows:
| | | | | | | |
| Core Bond Fund | | | 0.15 | % | | |
| High Income Bond Fund | | | 6.04 | | | |
| Inflation Protected Securities Fund | | | 0.63 | | | |
| Intermediate Term Bond Fund | | | 0.10 | | | |
| Total Return Bond Fund | | | 0.69 | | | |
| |
| |
The percentage of dividends declared from net investment income during the fiscal year ended June 30, 2010, as qualified income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003 were as follows:
| | | | | | | |
| Core Bond Fund | | | 0.14 | % | | |
| High Income Bond Fund | | | 9.01 | | | |
| Inflation Protected Securities Fund | | | 0.63 | | | |
| Intermediate Term Bond Fund | | | 0.11 | | | |
| Total Return Bond Fund | | | 0.78 | | | |
| |
| |
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 | | | 99.68 | % | | | | |
| High Income Bond Fund | | | 92.67 | | | | | |
| Inflation Protected Securities Fund | | | 93.24 | | | | | |
| Intermediate Government Bond Fund | | | 97.51 | | | | | |
| Intermediate Term Bond Fund | | | 99.95 | | | | | |
| Short Term Bond Fund | | | 100.00 | | | | | |
| Total Return Bond Fund | | | 99.03 | | | | | |
| |
| |
104 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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:
| | | | | | | | | |
| 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 | | | 26 | | | | | |
| Total Return Bond 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 800.677.3863.
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 800.677.3863 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 3-4, 2010, 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 15-17, 2010, the Board concluded its consideration of and approved the Agreement through June 30, 2011.
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,
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 105
| |
| Notice to Shareholders | June 30, 2010 (unaudited) |
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.
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 for the one-, three-, and five-year periods ending February 28, 2010.
Core Bond Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median and its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance, 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 outperformed its benchmark index for the one-year period, though the Fund underperformed its benchmark index for the three- and five-year periods. The Board also considered that the Fund outperformed its performance universe median for all periods. The Board concluded that, in light of the Fund’s competitive performance, 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 or performed competitively against its performance universe median and its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance, 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 outperformed its performance universe median and its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.
Intermediate Government Bond Fund. The Board considered that, for all periods, the Fund outperformed its benchmark index though it underperformed its performance universe median. The Board considered that the Fund’s former goal of providing investors with current income that is exempt from state income tax resulted in a constrained investment strategy that did not lend itself well to comparisons. The Board noted that, effective August 31, 2009, the investment objective and principal strategies of the Fund were changed to allow for investments in the full range of U.S. government securities, including mortgage-related securities. The Board considered FAF Advisors’ assertion that rebalancing of the Fund’s portfolio has been completed and that the Fund is now positioned to perform well relative to its performance universe. 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 and its benchmark for all periods. The Board concluded that, in light of the Fund’s competitive performance, 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 outperformed its performance universe median and its benchmark index for all periods. The Board concluded that, in light of the Fund’s competitive 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 reviewed FAF Advisors’ costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage the Funds. The Board also considered the profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. The Board compared fee and expense information for each Fund to fee and expense information for comparable funds managed by other advisors. The Board also reviewed advisory fees for other funds advised or sub-advised by FAF Advisors and for private accounts managed by FAF Advisors. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are generally lower than the management fees
106 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
charged by FAF Advisors to mutual funds, mutual 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:
High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund and Short Term Bond 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.
Core Bond Fund and Total Return Bond Fund. The Board considered that, although the Fund’s advisory fee, after waivers, and total expense ratio, after waivers, were higher than the peer group median, the Fund’s total expense ratio 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.
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 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 investment advisor, administrator, transfer agent, distributor, custodian and 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 2010 ANNUAL REPORT 107
| |
| Notice to Shareholders | June 30, 2010 (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-six 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; Advisor/Consultant, Future FreightTM, a logistics/supply chain company; Director, Towne Airfreight; non-profit board member; prior to retirement in 2005, served in several executive positions for United Airlines, including Vice President and Chief Operating Officer – Cargo; Independent Director, First American Fund Complex since 1997 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; Board Chair, United Educators Insurance Company | | First American Funds Complex: twelve registered investment companies, including fifty-six 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 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; Member, investment advisory committee, Sisters of the Good Shepherd | | First American Funds Complex: twelve registered investment companies, including fifty-six 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; non-profit board member since 2005 | | First American Funds Complex: twelve registered investment companies, including fifty-six 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 corporation engaged in strategic planning, operations management, government relations, transportation planning, and public relations; Owner, Chairman, and Chief Executive Officer, Excensustm, LLC, a demographic planning and application development firm | | First American Funds Complex: twelve registered investment companies, including fifty-six portfolios | | None |
| |
| |
108 FIRST AMERICAN FUNDS 2010 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 † |
| |
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 | | Board member, Mutual Fund Directors Forum; Member, Governing Board, Investment Company Institute’s Independent Directors Council; Governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm | | None | | |
| |
| |
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-six 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 800.677.3863 or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 109
| |
| Notice to Shareholders | June 30, 2010 (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 | | 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 December 2004 | | Mutual Funds Treasurer, FAF Advisors, Inc. |
| |
| |
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 and 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, FAF Advisors, Inc. |
| |
| |
Cynthia C. DeRuyter
FAF Advisors, Inc.
800 Nicollet Mall
Minneapolis, MN 55402
(1973)* | | Anti-Money Laundering Officer | | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since June 2010 | | Compliance Director, FAF Advisors, Inc., since March 2010; prior thereto, Compliance Manager, RSM McGladrey, Inc., since March 2006; prior thereto, Compliance Manager, FAF Advisors, Inc. |
| |
| |
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 | | Deputy General Counsel, FAF Advisors, Inc. |
| |
| |
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 |
| |
| |
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, a New York City-based law firm, from September 2005 to January 2009 |
| |
| |
| |
| * | Messrs. Schreier, Wilson, Gariboldi, Lui, Ertel and Kremenak, Mses. Stevenson, DeRuyter and 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 2010 ANNUAL REPORT
First American Funds’ Privacy Policy
We want you to understand what information we collect and how it’s used.
“Nonpublic personal information” is nonpublic information that we obtain while providing financial products or services to you.
Why we collect your information
We gather nonpublic personal information about you and your accounts so that we can:
| |
| • | Know who you are and prevent unauthorized access to your information. |
| • | Comply with the laws and regulations that govern us. |
The types of information we collect
We may collect the following nonpublic personal information about you:
| |
| • | Information about your identity, such as your name, address, and social security number. |
| • | Information about your transactions with us. |
| • | Information you provide on applications, such as your beneficiaries and banking information, if provided to us. |
Confidentiality and security
We require our service providers to restrict access to nonpublic personal information about you to those employees who need that information in order to provide products or services to you. We also require them to maintain physical, electronic, and procedural safeguards that comply with applicable federal standards and regulations to guard your information.
What information we disclose
We may share all of the nonpublic personal information that we collect about you with our affiliated providers of financial services, including our family of funds and their advisor, and with companies that perform marketing services on our behalf.
We’re permitted by law to disclose nonpublic personal information about you to other third parties in certain circumstances. For example, we may disclose nonpublic personal information about you to affiliated and nonaffiliated third parties to assist us in servicing your account (e.g., mailing of fund-related materials) and to government entities (e.g., IRS for tax purposes).
We’ll continue to adhere to the privacy policies and practices described here even after your account is closed or becomes inactive.
Additional rights and protections
You may have other privacy protections under applicable state laws. To the extent that these state laws apply, we will comply with them when we share information about you. This privacy policy does not apply to your relationship with other financial service providers, such as broker-dealers. We may amend this privacy notice at any time, and we will inform you of changes as required by law.
Our pledge applies to products and services offered by:
| |
| • | First American Funds, Inc. |
| • | First American Investment Funds, Inc. |
| • | First American Strategy Funds, Inc. |
| • | American Strategic Income Portfolio Inc. |
| • | American Strategic Income Portfolio Inc. II |
| • | American Strategic Income Portfolio Inc. III |
| • | American Select Portfolio Inc. |
| • | American Municipal Income Portfolio Inc. |
| • | Minnesota Municipal Income Portfolio Inc. |
| • | First American Minnesota Municipal Income Fund II, Inc. |
| • | American Income Fund, Inc. |
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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| |
| BOARD OF DIRECTORS | First American Investment Funds, Inc. |
Virginia Stringer
Chairperson of First American Investment Funds, Inc.
Governance Consultant; Chair Emeritus 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 period ended June 30, 2010. 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 800.677.3863 or visit FirstAmericanFunds.com.
0285-10 8/2010 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 that apply to the registrant’s principal executive officer or principal financial officer. 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 $1,221,819 in the fiscal period ended June 30, 2010 and $1,425,606 in the fiscal year ended June 30, 2009, 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 $3,874 in the fiscal period ended June 30, 2010 and $109,259 in the fiscal year ended June 30, 2009, including fees associated with the semi-annual review of fund disclosures. |
| |
| (c) | | Tax Fees — E&Y billed the registrant fees of $241,347 in the fiscal period ended June 30, 2010 and $231,164 in the fiscal year ended June 30, 2009, 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, 2010 and June 30, 2009. |
| |
| (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 |
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| | • | | Seed audits (related to new product filings, as required) |
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| | • | | 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 |
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| | • | | Fund merger support services |
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| | • | | Other accounting related matters |
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| | • | | Agreed Upon Procedure Reports |
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| | • | | Attestation Reports |
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| | • | | 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 |
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| | • | | Sales and use tax compliance |
| | • | | Timely RIC qualification reviews |
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| | • | | Tax distribution analysis and planning |
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| | • | | Tax authority examination services |
| | • | | Tax appeals support services |
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| | • | | Accounting methods studies |
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| | • | | Fund merger support services |
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| | • | | 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 |
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| | • | | Accounting and bookkeeping services |
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| | • | | Internal audit services |
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| | • | | Financial information systems design and implementation |
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| | • | | Valuation services supporting the financial statements |
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| | • | | Actuarial services supporting the financial statements |
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| | • | | Executive recruitment |
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| | • | | Expert services (e.g., litigation support) |
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| | • | | 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 $1,020,831 in the fiscal period June 30, 2010 and $499,536 in the fiscal year ended June 30, 2009.
(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. |
| (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. |
| (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. |
| (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 | |
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Date: August 30, 2010
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 | |
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Date: August 30, 2010
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| | By: | /s/ Charles D. Gariboldi, Jr. | |
| | | Charles D. Gariboldi, Jr. | |
| | | Treasurer | |
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Date: August 30, 2010
