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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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 | 55402 | |
(Address of principal executive offices) | (Zip code) |
Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-677-3863
Date of fiscal period end: October 31, 2010
Date of reporting period: October 31, 2010
Date of fiscal period end: October 31, 2010
Date of reporting period: October 31, 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.
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.
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EX-99.CERT | ||||||||
EX-99.906CERT |
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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Message To Shareholders December 14, 2010
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 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,
![]() | ![]() | |
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
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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 the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and 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
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Equity Income Fund
Investment Objective: long-term growth of capital and income
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Equity Income Fund (the “fund”), Class Y shares, returned 18.78% for the fiscal year ended October 31, 2010 (Class A shares returned 18.46% without taking the sales charge into account). By comparison, the fund’s broad-based benchmark, the Standard & Poor’s 500 Index*, returned 16.52% for the same period. The fund’s custom benchmark, the Standard and Poor’s 500 Dividend Only Stocks Index*, returned 15.15% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
What worked for the fund and why?
The fund’s performance was enhanced by sector allocation during the fiscal year. Relative to the custom benchmark, the fund was overweight in the consumer discretionary sector. This was the strongest performing area of the market during the period as investors discounted the outlook for improving consumer spending, especially among higher income households. The fund’s overweight position in the telecommunications services sector also aided results as investors sought out extra dividend yield opportunities in this high-yielding area of the market.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Chevron | 2 | .8 | % | ||
Exxon Mobil | 2 | .6 | |||
ConocoPhillips | 2 | .3 | |||
Bristol-Myers Squibb | 2 | .2 | |||
General Electric | 2 | .1 | |||
Microsoft | 2 | .0 | |||
First American Prime Obligations Fund, Class Z | 2 | .0 | |||
Johnson & Johnson | 1 | .8 | |||
Abbott Laboratories | 1 | .7 | |||
Intel | 1 | .7 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 15 | .2 | % | ||
Information Technology | 14 | .7 | |||
Consumer Discretionary | 12 | .3 | |||
Industrials | 11 | .9 | |||
Energy | 11 | .6 | |||
Healthcare | 9 | .0 | |||
Consumer Staples | 7 | .0 | |||
Materials | 6 | .5 | |||
Telecommunication Services | 5 | .9 | |||
Utilities | 4 | .0 | |||
Short-Term Investment | 2 | .0 | |||
Other Assets and Liabilities, Net2 | (0 | .1 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 3
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Equity Income Fund
Stock selection also contributed positively to fund results in several sectors. In financials, insurance companies Aflac and Old Republic International were standout performers, with investors re-evaluating their recovering earnings prospects in a more stable financial market environment. Real estate investment trust holdings Mid-America Apartment Communities, Ventas, and Annaly Capital Management added to the fund’s performance as this area of the market benefited from investor interest in their high dividend yields. Two bank holdings, KeyCorp and Astoria Financial, were also standouts as ongoing concerns related to the residential and commercial credit markets weighed more heavily on other companies within the group.
In the consumer discretionary sector, Hasbro, Brunswick, and J.C. Penney benefited the fund, generally beating investor earnings forecasts, while restaurant companies YUM! Brands, Darden Restaurants, and McDonald’s also provided solid results in that generally strong performing group. In the materials sector, E.I. du Pont de Nemours, Huntsman, PPG Industries, and Freeport-McMoRan Copper & Gold all rose significantly, reflecting their strong earnings performance. In telecommunications, Qwest Communications and CenturyLink added significantly to the fund’s results as investors bid those stocks up in a favorable response to their plans to merge operations. Windstream was another standout performer in the sector as investors preferred higher dividend companies within the group. Other strong contributors included: Emerson Electric due to continued strength in its emerging markets operations; utility sector holding Westar Energy; and technology holdings Analog Devices and Maxim Integrated Products in the strongly performing semiconductor group.
What did not work for the fund and why?
The fund’s worst-performing sectors relative to the custom benchmark were healthcare and energy. In the healthcare sector, fund holdings Baxter International and Covidien disappointed as they fell short of investor earnings expectations. In energy, the fund’s position in BP hindered results as the company’s well-publicized oil spill in the Gulf of Mexico hurt the stock.
What strategic moves were made by the fund and why?
At the end of the fiscal year, the fund was positioned for a gradual broadening of the economic recovery in the United States and continued moderating growth in emerging market economies. Asian countries, however, are expected to continue to show stronger growth than the developed economies. The fund’s sector overweights are modest and include consumer discretionary, information technology, telecommunications services, and materials. On the other hand, the fund remains underweight relative to the custom benchmark in the consumer staples, energy, and industrials sectors. The fund will continue to emphasize primarily large, U.S.-based companies with growing global franchises and dividend policies that support above-average current yields and dividend growth.
4 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 11.91 | % | 2.65 | % | 2.52 | % | — | 6.16 | % | 1.67 | % | 2.52 | % | — | ||||||||||||||||||
Class B | 12.59 | % | 2.73 | % | 2.33 | % | — | 6.53 | % | 1.74 | % | 2.33 | % | — | ||||||||||||||||||
Class C | 16.60 | % | 3.05 | % | 2.32 | % | — | 10.45 | % | 2.06 | % | 2.32 | % | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 18.46 | % | 3.82 | % | 3.10 | % | — | 12.35 | % | 2.82 | % | 3.10 | % | — | ||||||||||||||||||
Class B | 17.59 | % | 3.05 | % | 2.33 | % | — | 11.53 | % | 2.06 | % | 2.33 | % | — | ||||||||||||||||||
Class C | 17.60 | % | 3.05 | % | 2.32 | % | — | 11.45 | % | 2.06 | % | 2.32 | % | — | ||||||||||||||||||
Class R | 18.16 | % | 3.55 | % | — | 4.59 | % | 11.96 | % | 2.55 | % | — | 4.25 | % | ||||||||||||||||||
Class Y | 18.78 | % | 4.07 | % | 3.35 | % | — | 12.51 | % | 3.07 | % | 3.35 | % | — | ||||||||||||||||||
S&P 500 Index3 | 16.52 | % | 1.73 | % | (0.02 | )% | 3.81 | % | 10.16 | % | 0.64 | % | (0.43 | )% | 3.42 | % | ||||||||||||||||
S&P 500 Dividend Only Stocks Index4 | 15.15 | % | 1.22 | % | 0.93 | % | 3.09 | %5 | 9.56 | % | 0.18 | % | 0.70 | % | 2.72 | %5 | ||||||||||||||||
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 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Investment performance in the table reflects fee waivers that had in effect for certain portions of the periods indicated. In the absence of such fee waivers, total returns would be reduced.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.19%, 1.94%, 1.94%, 1.45%, and 0.94%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,6 as of October 31, 2010
Equity Income Fund, Class A (NAV) | ![]() | $ | 13,567 | |||||
Equity Income Fund, Class A (POP) | ![]() | $ | 12,820 | |||||
S&P 500 Index3 | ![]() | $ | 9,983 | |||||
S&P 500 Dividend Only Stocks Index4 | ![]() | $ | 10,967 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the S&P 500 Index3 and the S&P 500 Dividend Only Stocks Index4.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161602.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
4 | The S&P 500 Dividend Only Stocks Index custom benchmark is composed of companies in the S&P 500 Index that have an indicated annual dividend. |
5 | The performance since inception of this index is calculated from the month end following the inception of the class. |
6 | 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
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Global Infrastructure Fund
Investment Objective: to provide long-term growth of capital and income
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Global Infrastructure Fund (the “fund”), Class Y shares, returned 22.92% for the fiscal year ended October 31, 2010 (Class A shares returned 22.56% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard & Poor’s Global Infrastructure Index*, returned 14.37% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
What worked for the fund and why?
The fund weathered a very volatile environment for infrastructure, outpacing the index for the fiscal year. Early in the year, the infrastructure segment benefited from the overall strengthening of global economies. However, mid-way through the period, the asset class experienced significant weakness as sovereign debt issues in Southern Europe and the fear of a Chinese government-instituted liquidity squeeze caused infrastructure stocks to sell off. Later in the fiscal year, the segment rebounded strongly from its oversold state as the global economic outlook continued to gain momentum.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
China Merchangs Holdings International | 3 | .4 | % | ||
Republic Services | 3 | .1 | |||
Vinci | 3 | .1 | |||
Enbridge | 3 | .0 | |||
Tokyo Electric Power | 3 | .0 | |||
Transburban Group | 3 | .0 | |||
Spectra Energy | 2 | .8 | |||
Beijing Enterprises Holdings | 2 | .6 | |||
Sempra Energy | 2 | .3 | |||
Crown Castle International | 2 | .3 | |||
Country Allocation as of October 31, 20101 (% of net assets)
United States | 21 | .0% | ||
Japan | 12 | .0 | ||
Singapore | 9 | .9 | ||
Hong Kong | 9 | .1 | ||
Australia | 8 | .6 | ||
France | 6 | .6 | ||
Canada | 6 | .0 | ||
United Kingdom | 4 | .9 | ||
Brazil | 4 | .0 | ||
Spain | 3 | .0 | ||
Other2 | 13 | .7 | ||
Short-Term Investment | 0 | .6 | ||
Other Assets & Liabilities, Net3 | 0 | .6 | ||
100 | .0% | |||
1 | Fund holdings and sector/country allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Refer to the fund’s Schedule of Investments for further country breakout. |
3 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
6 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Because of our concerns over sovereign debt issues early on, we lowered the fund’s weighting in Southern Europe vs. the index, particularly in countries such as Spain, Italy, and Portugal. This underweight position proved beneficial to the fund’s performance partway through the fiscal year. As the situation in Southern Europe progressed, we were able to use the market’s overreaction to substantially reduce the fund’s underweight and buy a number of attractive companies at significant discounts to intrinsic value. Similarly, the fund was able to take advantage of the sell-off in the Asian markets caused by concerns over monetary policy tightening by the Chinese government. The fund benefited from a number of advantageous stock purchases in the port, rail, diversified, and gas utilities sectors, particularly in Hong-Kong based companies.
The fund also gained significantly from its underweight position in electric utilities. We typically maintain an underweight stance in the electric utilities sector because most of the integrated and generation-specific companies in the index don’t qualify as core holdings under our definition of infrastructure. Integrated and generation-specific utilities performed poorly for part of the period due to very weak natural gas prices, which in turn led to lower power prices. Additionally, the fund benefited from underweights in two German integrated electric utilities that underperformed as the country’s government sought to reduce its deficit by assessing significant taxes on nuclear operations. When we do own electric utilities in the fund, we look for companies that have a significant amount of exposure to renewable generation and regulated electric transmission and distribution because these firms provide very consistent cash flows.
Additionally, performance was aided by several out-of-index toll road holdings during the period. Also, in technology infrastructure, the fund was rewarded for its exposure to two areas not represented in the index: cell phone tower infrastructure companies and data centers. Data centers are buildings in the electric, fiber-optic, or internet grid that house the servers needed to drive companies’ businesses. In diversified infrastructure, the fund benefited from multiple holdings spread throughout Asia and Australia, particularly Brookfield Infrastructure Partners. Early in the period, Brookfield was able to take controlling interest in prime seaport, gas pipeline, and coal terminal assets from an overleveraged Australian infrastructure company that got into trouble during the economic downturn.
What did not work for the fund and why?
In the airport sector, the fund underperformed the benchmark because of its underweight position in Australian company MAP Group (formerly Macquarie Airports). MAP Group’s stock price benefited from the strength of the Australian dollar and the company’s continued streamlining efforts, which include internalizing management and divesting in non-core assets. The fund’s performance was also hindered by several out-of-index positions in Japanese gas utilities and rail companies that were weighed down by uncertainty over high debt levels and the need to raise capital. Additionally, the fund underperformed in the toll road sector due to its underweight positions in two firms that received takeover offers. Finally, we were a little early with our move to increase the fund’s weighting in ports midway through the fiscal year due to the attractive fundamentals we were seeing in the sector.
What strategic moves were made by the fund and why?
We continued to be very active in the fund, taking advantage of relative value trading opportunities. The environment throughout the fiscal year highlighted the strengths of our bottom-up company analysis that helps us uncover this relative value within each sector. When stocks trade down based on where the companies are domiciled or irrational fears, and not on fundamentals, it provides buying opportunities for the fund. One of the main advantages of a listed infrastructure strategy is the ability to capitalize on short-term market dislocations using our active management style.
Earlier in the fiscal year, we had reduced the fund’s European exposure based on country-specific deficit concerns that would result in declining stock prices. Later in the period, we began shifting the fund back toward its historical country weightings. Staying true to our investment strategy, we maintained the fund’s lower risk level (as measured by beta*) vs. our benchmark and other more diversified global indices during the fiscal year. As the economy continued to recover, we looked for opportunities in slightly more cyclical sectors such as airports, pipelines, toll roads, and ports. These sectors typically demonstrate less correlation to Gross Domestic Product and are a little less cyclical than the broader market; however, they are more cyclical than other areas of the infrastructure segment.
* | A statistical measure of a fund’s or stock’s volatility as compared to the overall market. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 7
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Global Infrastructure Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||||||
1 year | 12/17/2007 | 11/3/2008 | 1 year | 12/17/2007 | 11/3/2008 | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | 15.88 | % | (3.06 | )% | — | 10.02 | % | (4.61 | )% | — | ||||||||||||||
Class C | 20.62 | % | — | 21.41 | % | 14.47 | % | — | 19.82 | % | ||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | 22.56 | % | (1.14 | )% | — | 16.45 | % | (2.67 | )% | — | ||||||||||||||
Class C | 21.62 | % | — | 21.41 | % | 15.47 | % | — | 19.82 | % | ||||||||||||||
Class R | 22.27 | % | — | 21.97 | % | 16.28 | % | — | 20.42 | % | ||||||||||||||
Class Y | 22.92 | % | (0.94 | )% | — | 16.81 | % | (2.45 | )% | — | ||||||||||||||
S&P Global Infrastructure Index3 | 14.37 | % | (6.44 | )% | 14.46 | % | 6.91 | % | (8.15 | )% | 12.42 | % | ||||||||||||
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 5.50% for Class A shares and the maximum contingent deferred sales charge of 1.00% for Class C shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers (including acquired fund fees and expenses) for Class A, Class C, Class R and Class Y shares was 2.47%, 3.22%, 2.72% and 2.22%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least February 28, 2011 so that the total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses) for Class A and Class Y shares do not exceed 1.25%, 2.00%, 1.50% and 1.00%, respectively. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Global Infrastructure, Class A (NAV) | ![]() | $ | 9,675 | |||||
Global Infrastructure, Class A (POP) | ![]() | $ | 9,144 | |||||
S&P Global Infrastructure Index3 | ![]() | $ | 8,260 | |||||
The chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/17/2007 to 10/31/2010) as compared to the S&P Global Infrastructure Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161603.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 unmanaged S&P Global Infrastructure Index in comprised of 75 of the largest publicly listed infrastructure companies from around the world that meet specific investability requirements. |
4 | Performance for Class C, Class R and Class Y shares are not presented. Performance for these classes will vary due to the different expense structures. |
8 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
International Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2010?
The First American International Fund (the “fund”), Class Y shares, returned 8.52% for the fiscal year ended October 31, 2010 (Class A shares returned 8.21% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI EAFE Index*, returned 8.82% for the same period.
How did market conditions affect stock performance during the fiscal year?
International stock market returns over the 12-month period were generally strong, continuing last year’s recovery from the 2008-2009 global crash. As was the case last year, emerging economies’ gains were higher. The MSCI Emerging Markets Index gained more than 21%, while the developed nation focused MSCI EAFE Index registered only a slight gain of 4%. The MSCI AC World Investable Market Index ex. U.S.A., which is comprised of approximately 80% developed and 20% emerging market nations, gained more than 8%.
These relatively good returns masked major shifts and concerns that arose during the fiscal year. The three most notable issues were: the struggles over deleveraging, particularly in the United States but also affecting economies in Europe; the related crisis with the euro as countries attempted to control sovereign debt in the face of lower economic activity; and high, export-led growth in emerging markets that threatened inflation and bubbles in their asset markets. For example, concerns about insolvency at European banks, and their governments’ inability to backstop them, caused the MSCI EAFE Index to drop more than 15% between January 1, 2010 and mid-May. During this same timeframe, the more buoyant MSCI Emerging Markets Index also experienced a decline. After that low point, most markets enjoyed steady growth as investors generally expressed confidence in nations’ ability to work out their imbalances without disruption. As we write this review in November, those beliefs are being tested anew.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
State Street Institutional Liquid Reserves Fund | 4 | .4 | % | ||
U.S. Treasury Bill, 0.185%, 11/04/2010 | 2 | .9 | |||
Roche Holding | 1 | .9 | |||
Nestle | 1 | .9 | |||
SMC | 1 | .5 | |||
Novartis | 1 | .4 | |||
Canon | 1 | .4 | |||
Adidas | 1 | .2 | |||
FANUC | 1 | .1 | |||
BNP Paribas | 1 | .1 | |||
Country Allocation as of October 31, 20101 (% of net assets)
Japan | 19 | .2 | % | ||
United Kingdom | 15 | .2 | |||
Germany | 8 | .9 | |||
Switzerland | 8 | .7 | |||
France | 6 | .5 | |||
Canada | 5 | .5 | |||
United States | 3 | .9 | |||
China | 2 | .6 | |||
Hong Kong | 2 | .6 | |||
Australia | 2 | .0 | |||
Other2 | 17 | .4 | |||
Short-Term Investments | 7 | .6 | |||
Other Assets & Liabilities, Net3 | (0 | .1 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector/country allocations are subject to change at any time and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each country through direct investments and do not reflect the impact on country allocation of holding derivative instruments, such as futures contracts. See Note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 2010. |
2 | Refer to the fund’s Schedule of Investments for further country breakout. |
3 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables 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 9
Table of Contents
International Fund
What worked for the fund and why?
We continued to use the management approach detailed last year. Two subadvisors select stocks according to the growth or value styles, while we allocate between the subadvisors, adjust the overall portfolio balance and country emphasis using index-related investments, and select stocks in the infrastructure sector. The growth stock portion of the fund outperformed in last year’s markets. The fund also benefited from our theme of avoiding Spain, which was a strong success as continuing concern about its low growth and high debt dogged all of peripheral Europe. The fund’s European exposure was focused in the northern nations of Germany, Sweden, and the Netherlands, which all outpaced the rest of the continent. On balance, the fund’s underemphasis in Europe was complemented by overemphasizing emerging markets – especially China, after our initial concern about high valuations. Furthermore, the fund had good results from our general underweight to Japan, the weakest of the large-economy markets. A couple of significant stock selections were strong contributors, including ARM Holdings, a designer of chips for virtually all smart phones, and BP, in which the portfolio enjoyed a well-timed positioning.
What did not work for the fund and why?
The fund unsuccessfully emphasized technology stocks during a period when most of the sector failed to match ARM Holdings’ strong results. Also, we underweighted consumer discretionary stocks out of concern for deferred consumer spending in developed markets. Unfortunately, the consumer discretionary sector performed relatively well. Finally, our concerns about the growing difficulties in the European financial system led us to hedge away the fund’s euro exposure during the second half of the year, just as investors’ concerns were being soothed.
What strategic moves were made by the fund and why?
The fund’s primary strategy continues to be to direct more emphasis toward emerging nations, where we continue to see higher growth rates that are less affected by the overhang of the recession than developed nations have been. Although the fund is underweight in Europe, its position in Northern Europe — Germany, Sweden, and the Netherlands — continues to be strong. These nations are on the periphery of the Eurozone, especially Spain and Italy, where the fund’s underweight resides.
In the first half of 2010, the fund pulled back on its emphasis to China, as concern mounted about tightening credit conditions to contain inflation and asset bubbles. We restored a positive position mid-year and had a significant overweight at year end. We also looked to spread out the fund’s emphasis in emerging Asia to catch the rapid growth in the region with less impact from Chinese policies. At the end of the fiscal year, we had moved back to a guarded overemphasis. In contrast, we reduced the fund’s position in India, due to ongoing inflation pressures that are leading the central bank to raise rates and otherwise restrict credit. Due to world commodity demand and the ever-unpredictable supply, we expect prices will continue to be a concern there and in other nations where food is a large part of household budgets.
As the recovery has matured, we have seen a fall-off in activity associated with a recovery, especially inventory rebuilding. We expect more moderate growth across the globe, but continue to emphasize commodity-producing areas as demand should continue to be strong.
10 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 2.23 | % | 1.30 | % | 0.39 | % | — | (3.72 | )% | 0.29 | % | (0.54 | )% | — | ||||||||||||||||||
Class B | 2.42 | % | 1.30 | % | 0.18 | % | — | (3.82 | )% | 0.29 | % | (0.73 | )% | — | ||||||||||||||||||
Class C | 6.50 | % | 1.70 | % | — | 4.57 | % | 0.14 | % | 0.67 | % | — | 4.26 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 8.21 | % | 2.45 | % | 0.96 | % | — | 1.92 | % | 1.43 | % | 0.03 | % | — | ||||||||||||||||||
Class B | 7.42 | % | 1.66 | % | 0.18 | % | — | 1.18 | % | 0.64 | % | (0.73 | )% | — | ||||||||||||||||||
Class C | 7.50 | % | 1.70 | % | — | 4.57 | % | 1.14 | % | 0.67 | % | — | 4.26 | % | ||||||||||||||||||
Class R | 7.94 | % | 2.23 | % | 0.73 | % | — | 1.67 | % | 1.22 | % | (0.18 | )% | — | ||||||||||||||||||
Class Y | 8.52 | % | 2.71 | % | 1.20 | % | — | 2.21 | % | 1.68 | % | 0.28 | % | — | ||||||||||||||||||
MSCI EAFE Index3 | 8.82 | % | 3.79 | % | 3.61 | % | 8.14 | % | 3.71 | % | 2.45 | % | 2.99 | % | 7.80 | % | ||||||||||||||||
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge (’“DSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices.
As of the most recent prospectus, the fund’s total annual operating expense ratio before waivers and including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”) for Class A, Class B, Class C, Class R, and Class Y shares was 1.60%, 2.35%, 2.35%, 1.85%, and 1.35%, respectively. The advisor has contractually agreed to waive fees through February 28, 2011 so that the total annual fund operating expenses, not including any acquired fund fees and expenses, for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers may be terminated at any time after February 28, 2011, at the discretion of the advisor. Prior to that time, such waivers may not be terminated without the approval of the fund’s board of directors.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
International Fund, Class A (NAV) | ![]() | $ | 10,999 | |||
International Fund, Class A (POP) | ![]() | $ | 10,396 | |||
MSCI EAFE Index3 | ![]() | $ | 14,251 | |||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/2000 to 10/31/2010 as compared to the MSCI EAFE Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161604.gif)
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 were in effect during the periods indicated. 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. |
Effective November 3, 2008, Altrinsic Global Advisors, LLC and Hansberger Global Investors, Inc., were named subadvisors of the fund and began managing the fund’s assets. On September 24, 2001, the First American International Fund merged with Firstar International Growth Fund and Firstar International Value Fund. Performance history prior to September 24, 2001 represents that of the Firstar International Growth Fund. |
3 | An unmanaged index of common stocks in Europe, Australasia, and the Far East. |
4 | Performance for Class B, Class C, Class R, 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 11
Table of Contents
International Select Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2010?
The First American International Select Fund (the “fund”), Class Y shares, returned 13.14% for the fiscal year ended October 31, 2010 (Class A shares returned 12.72% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI All Country World Investable Market Index ex. U.S.A.*, returned 14.10% for the same period.
How did market conditions affect stock performance during the fiscal year?
International stock market returns over the 12-month period were generally strong, continuing last year’s recovery from the 2008-2009 global crash. As was the case last year, emerging economies’ gains were higher. The MSCI Emerging Markets Index gained more than 21%, while the developed nation focused MSCI EAFE Index registered only a slight gain of 4%. The MSCI AC World Investable Market Index ex. U.S.A., which is comprised of approximately 80% developed and 20% emerging market nations, gained more than 8%.
These relatively good returns masked major shifts and concerns that arose during the fiscal year. The three most notable issues were: the struggles over deleveraging, particularly in the United States but also affecting economies in Europe; the related crisis with the euro as countries attempted to control sovereign debt in the face of lower economic activity; and high, export-led growth in emerging markets that threatened inflation and bubbles in their asset markets. For example, concerns about insolvency at European banks, and their governments’ inability to backstop them, caused the MSCI EAFE Index to drop more than 15% between January 1, 2010 and mid-May. During this same timeframe, the more buoyant MSCI Emerging Markets Index also experienced a decline. After that low point, most markets enjoyed steady growth as investors generally expressed confidence in nations’ ability to work out their imbalances without disruption. As we write this review in November, those beliefs are being tested anew.
What worked for the fund and why?
We continued to use the management approach detailed last year. Three subadvisors select stocks according to growth, value, or emerging market styles, while we allocate among the subadvisors, adjust the overall portfolio balance and country emphasis using index-related investments, and select stocks in the infrastructure sector. The fund benefited from strong stock selection from two of the subadvisors. Also, our overall theme of avoiding Spain was a strong success as was our emphasis on Canada, an important supplier of minerals and energy and an often-overlooked, world investment opportunity. Additionally, overemphasizing emerging markets – especially China after our initial concern about high valuations – while directing the fund’s European exposure toward Northern Europe, worked well. Furthermore, the fund had good results from our general underweight to Japan, the weakest of the large-economy markets. A couple of significant stock selections were strong contributors, including ARM Holdings, a designer of chips for virtually all smart phones, and BP, in which the portfolio enjoyed a well-timed positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
State Street Institutional Liquid Reserves Fund | 3 | .3 | % | ||
U.S. Treasury Bill, 0.185%, 11/04/2010 | 2 | .8 | |||
Roche Holding | 1 | .4 | |||
Vale – ADR | 1 | .3 | |||
Nestle | 1 | .3 | |||
Market Vectors Russia | 1 | .2 | |||
SMC | 1 | .1 | |||
Novartis | 1 | .0 | |||
Canon | 1 | .0 | |||
Adidas | 0 | .9 | |||
Country Allocation as of October 31, 20101 (% of net assets)
Japan | 14 | .1% | ||
United Kingdom | 10 | .1 | ||
Germany | 6 | .9 | ||
Brazil | 6 | .5 | ||
Switzerland | 6 | .4 | ||
France | 5 | .1 | ||
Canada | 4 | .8 | ||
United States | 4 | .7 | ||
China | 3 | .9 | ||
South Korea | 2 | .9 | ||
Other2 | 28 | .1 | ||
Short-Term Investments | 6 | .5 | ||
100 | .0% | |||
1 | Fund holdings and sector/country allocations are subject to change at any time and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each country through direct investments and do not reflect the impact on country allocation of holding derivative instruments, such as futures contracts. See Note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 2010. |
2 | Refer to the fund’s Schedule of Investments for further country breakout. |
12 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
What did not work for the fund and why?
The fund unsuccessfully emphasized technology stocks during a period when most of the sector failed to match ARM Holdings’ strong results. Also, we underweighted consumer discretionary stocks out of concern for deferred consumer spending in developed markets. Unfortunately, the consumer discretionary sector performed relatively well. Stock selection detracted, on balance, as a large number of modest disappointments offset successes. Finally, our concerns about the growing difficulties in the European financial system led us to hedge away the fund’s euro exposure during the second half of the year, just as investors’ concerns were being soothed.
What strategic moves were made by the fund and why?
The fund’s primary strategy continues to be to direct more emphasis toward emerging nations, where we continue to see higher growth rates that are less affected by the overhang of the recession than developed nations have been. Although the fund is underweight in Europe, its position in Northern Europe – Germany, Sweden, and the Netherlands – continues to be strong. These nations are on the periphery of the Eurozone, especially Spain and Italy, where the fund’s underweight resides.
In the first half of 2010, the fund pulled back on its strong emphasis to China, as concern mounted about tightening credit conditions to contain inflation and asset bubbles. We restored a positive position mid-year and had a significant overweight at year end. We also looked to spread out the fund’s emphasis in emerging Asia to catch the rapid growth in the region with less impact from Chinese policies. At the end of the fiscal year, we had moved back to a guarded overemphasis. In contrast, we reduced the fund’s position in India, due to ongoing inflation pressures that are leading the central bank to raise rates and otherwise restrict credit. Due to world commodity demand and the ever-unpredictable supply, we expect prices will continue to be a concern there and in other nations where food is a large part of household budgets.
As the recovery has matured, we have seen a fall-off in activity associated with a recovery, especially inventory rebuilding. We expect more moderate growth across the globe, but continue to emphasize commodity-producing areas as demand should continue to be strong.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 13
Table of Contents
International Select Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 12/21/2006 | 1 year | 12/21/2006 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | 6.57 | % | (1.52 | )% | 0.96 | % | (2.32 | )% | ||||||||
Class C | 11.00 | % | (0.81 | )% | 5.14 | % | (1.59 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 12.72 | % | (0.07 | )% | 6.89 | % | (0.86 | )% | ||||||||
Class C | 12.00 | % | (0.81 | )% | 6.14 | % | (1.59 | )% | ||||||||
Class R | 12.59 | % | (0.32 | )% | 6.73 | % | (1.11 | )% | ||||||||
Class Y | 13.14 | % | 0.21 | % | 7.19 | % | (0.60 | )% | ||||||||
MSCI AC World Investable Market Index Ex. USA3 | 14.10 | % | 0.02 | % | 8.90 | % | (0.89 | )% | ||||||||
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 | International investing involves risks not typically associated with domestic investing, including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, foreign government regulations, currency exchange rates, limited liquidity, and volatile prices. |
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 the maximum sales charges of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class C, Class R, and Class Y shares was 1.78%, 2.53%, 2.03%, and 1.53%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through February 28, 2011 so that the total annual fund operating expenses for Class A, Class C, Class R, and Class Y shares do not exceed 1.49%, 2.24%, 1.74%, and 1.24%, respectively. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
International Select Fund, Class A (NAV) | ![]() | $ | 9,974 | |||
International Select Fund, Class A (POP) | ![]() | $ | 9,427 | |||
MSCI AC World Investable Market Index Ex. USA3 | ![]() | $ | 10,009 | |||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 12/21/2006 to 10/31/2010) as compared to the MSCI AC World Investable Market Index Ex. USA3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161605.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 stocks representing developed and emerging markets around the world that collectively comprise most foreign stock markets. |
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
Table of Contents
Large Cap Growth Opportunities Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Large Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 25.34% for the fiscal year ended October 31, 2010 (Class A shares returned 25.03% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Growth Index*, returned 19.65% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Apple | 7 | .5 | % | ||
Amazon.com | 3 | .6 | |||
Visa, Class A | 2 | .5 | |||
Priceline.com | 2 | .4 | |||
QUALCOMM | 2 | .1 | |||
Dollar Tree | 2 | .1 | |||
Oracle | 2 | .1 | |||
Google, Class A | 2 | .0 | |||
Netflix | 1 | .9 | |||
Cummins | 1 | .8 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 39 | .1 | % | ||
Consumer Discretionary | 23 | .8 | |||
Industrials | 12 | .1 | |||
Healthcare | 9 | .0 | |||
Energy | 7 | .0 | |||
Consumer Staples | 3 | .1 | |||
Financials | 2 | .9 | |||
Materials | 1 | .5 | |||
Telecommunication Services | 1 | .2 | |||
Short-Term Investment | 0 | .1 | |||
Other Assets and Liabilities, Net2 | 0 | .2 | |||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 15
Table of Contents
Large Cap Growth Opportunities Fund
What worked for the fund and why?
As is typical for the fund, individual stock selection had the greatest impact on its strong performance during the past fiscal year. The consumer discretionary and technology sectors – home to many outstanding franchise growth companies – produced several of the fund’s largest winners during the period. Within consumer discretionary, long-held favorites priceline.com, Amazon.com, and Chipotle Mexican Grill each rose significantly. Both priceline.com and Amazon.com benefited from the secular growth of e-commerce as consumers are increasingly turning to the internet for travel planning and shopping. Priceline.com also continued to generate very strong profit growth – particularly because of its heavy exposure to European and Asian travel. Meanwhile Amazon.com continued to distance itself from e-commerce competitors as it broadened product offerings, expanded distribution capabilities worldwide, and offered free shipping on an increasing number of orders. Chipotle’s formula of offering healthy and fast Mexican food continued to resonate with consumers, providing ample growth opportunities.
In the technology sector, Apple and F5 Networks followed very strong 2009 fiscal year performance with material gains over the past year as well. Apple has profitably introduced the most innovative products in the technology arena, expanding on its incredible success with the iPod and iPhone by introducing the iPad. The earnings growth that Apple has produced has been phenomenal. F5 Networks has the leading market share in the fast-growing area of application delivery networking, which provides intelligent products to improve data network speed and efficiency.
While the companies mentioned above have been held in the fund for a number of years, several newcomers also contributed meaningfully to performance. The fund was rewarded with strong contributions from Netflix, the leading DVD-by-mail and streaming video company; Wynn Resorts, the premier casino operator with increasing exposure to Asian gambling; Perrigo, a leading manufacturer of generic over-the-counter products; and Edwards Lifesciences, a medical products company that is transforming the treatment of heart valve disease. The success of these newcomers indicates that our process continued to uncover rewarding investment ideas.
What did not work for the fund and why?
As described above, individual stock selection had the largest impact on the fund’s performance. As in previous years, the stocks that detracted most from performance during 2010 experienced negative earnings revisions or downward valuation adjustments caused by concerns about the sustainability of growth. Goldman Sachs and CVS Caremark were examples of the former, while Visa and Medco Health Solutions were examples of the latter. Goldman’s earnings were below expectations and below last year’s due to lower trading and investment banking activity. CVS, which has attempted to be an integrated drugstore and pharmacy benefit management company, felt pressures in both of its businesses. Conversely, Visa, the global credit and debit card transaction processing network, continued to produce strong earnings results. However, concerns about how regulatory changes may impact the company’s profitability caused Visa’s valuation to fall by approximately 25% over the past year. Similarly, Medco, the leading pharmacy benefit management company, produced strong earnings growth, but had a 20% fall in its valuation as investors contemplated a potential slowdown in its long-term growth prospects.
What strategic moves were made by the fund and why?
Our basic philosophy remains the same. We identify companies with attractive long-term earnings growth prospects, solid management teams, and durable competitive advantages. From that group, we invest in those with fair valuations and approaching catalysts. Although there are individual position changes during any year, the basic framework holds and this past year was no different. As such, most of the changes that we made during the fiscal year reflected our bottom-up, one-stock-at-a-time approach. Stocks that we sold generally faced current and/or future earnings pressures. While the companies remained well run and had favorable long-term growth outlooks, their replacements, in our opinion, have better earnings growth prospects over the next 12 months. For example, we sold companies such as Blackrock, Abbott Laboratories, and Adobe and purchased Allergan, a leading ophthalmic pharmaceutical company; Dollar Tree, the largest and most successful single-price-point retailer in the country; Discovery Communications, the world’s number one cable content company; and the newer investments highlighted above. On the margin, we supplemented our single-stock approach with slight thematic tilts. Currently, we are slightly tilted toward pure growth companies as opposed to cyclical growth companies (which can be more attractive during the earlier stages of an economic recovery) or more stable companies (generally emphasized when we are worried about economic growth). These pure growth companies should do well in a decelerating, but still strong, earnings growth environment. In summary, we will continue to identify franchise growth companies, buy them at what we believe to be opportune moments, and hold them for the long term, with a goal of outperforming our benchmark over time.
16 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 18.15 | % | 2.71 | % | (1.71 | )% | — | — | 10.71 | % | 1.61 | % | (2.44 | )% | — | — | ||||||||||||||||||||||||
Class B | 19.07 | % | 2.75 | % | (1.89 | )% | — | — | 11.26 | % | 1.63 | % | (2.62 | )% | — | — | ||||||||||||||||||||||||
Class C | 23.07 | % | 3.10 | % | — | — | 3.22 | % | 15.29 | % | 2.00 | % | — | — | 2.71 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 25.03 | % | 3.38 | % | (1.15 | )% | — | — | 17.13 | % | 2.76 | % | (1.88 | )% | — | — | ||||||||||||||||||||||||
Class B | 24.07 | % | 3.11 | % | (1.89 | )% | — | — | 16.26 | % | 2.00 | % | (2.62 | )% | — | — | ||||||||||||||||||||||||
Class C | 24.07 | % | 3.10 | % | — | — | 3.22 | % | 16.29 | % | 2.00 | % | — | — | 2.71 | % | ||||||||||||||||||||||||
Class R | 24.71 | % | 3.61 | % | — | (0.64 | )% | — | 16.81 | % | 2.50 | % | — | (1.13 | )% | — | ||||||||||||||||||||||||
Class Y | 25.34 | % | 4.14 | % | (0.90 | )% | — | — | 17.42 | % | 3.02 | % | (1.64 | )% | — | — | ||||||||||||||||||||||||
Russell 1000 Growth Index3 | 19.65 | % | 3.21 | % | (2.52 | )% | (1.61 | )% | 3.75 | % | 12.65 | % | 2.06 | % | (3.44 | )% | (2.09 | )% | 3.25 | % | ||||||||||||||||||||
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Growth stocks typically have more volatility than value stocks; whereas value stocks tend to have slower earnings growth rates.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class B, Class C, Class R, and Class Y shares was 1.22%, 1.97%, 1.97%, 1.47%, and 0.97%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Large Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 8,907 | |||||
Large Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 8,418 | |||||
Russell 1000 Growth Index3 | ![]() | $ | 7,749 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 1000 Growth Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161606.gif)
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 were in effect during the periods indicated. 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. |
On September 24, 2001, the First American Large Cap Growth Opportunities Fund became the successor by merger to the Firstar Large Cap Core Equity 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 Large Cap Core Equity Fund. |
3 | An unmanaged index that measures the performance of those companies within the Russell 1000 Index (large-cap index) with higher price-to-book ratios and higher forecasted growth values. |
4 | Performance for Class B, Class C, Class R, 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
Table of Contents
Large Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Large Cap Select Fund (the “fund”), Class Y shares, returned 19.75% for the fiscal year ended October 31, 2010 (Class A shares returned 19.49% without taking the sales charge into account). By comparison, the fund’s benchmark, the Standard & Poor’s 500 Index* (“S&P 500 Index”), returned 16.52% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
What worked for the fund and why?
Strong stock selection helped the Large Cap Select Fund perform well in a difficult economic and market environment. We favored companies that had specific growth opportunities regardless of the domestic economic environment. We also held some stocks that would benefit from continued strong demand from the emerging markets.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Apple | 4 | .5% | ||
Citigroup | 2 | .4 | ||
Anadarko Petroleum | 2 | .4 | ||
JPMorgan Chase | 2 | .3 | ||
Caterpillar | 2 | .2 | ||
VMware, Class A | 2 | .1 | ||
DIRECTV, Class A | 2 | .0 | ||
BMC Software | 2 | .0 | ||
Bristol-Myers Squibb | 2 | .0 | ||
Goldman Sachs Group | 1 | .9 | ||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 29 | .4% | ||
Consumer Discretionary | 16 | .7 | ||
Industrials | 12 | .8 | ||
Financials | 10 | .4 | ||
Healthcare | 10 | .4 | ||
Energy | 9 | .7 | ||
Materials | 3 | .8 | ||
Consumer Staples | 2 | .7 | ||
Telecommunication Services | 2 | .5 | ||
Utilities | 1 | .3 | ||
Short-Term Investment | 0 | .3 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
18 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
The energy and basic material sectors were the two best-performing areas of the fund. Both sectors benefited from higher commodity prices that were tied to strong emerging market growth and a weaker U.S. dollar. The fund’s holdings in energy companies with strong production growth – such as oil and gas exploration firms Whiting Petroleum and Pioneer Natural Resources – performed very well. In basic materials, the fund’s positions in Cliffs Natural Resources, an iron ore producer, and Freeport-McMoRan Copper & Gold also added significant value.
Superior stock selection carried through to other sectors including healthcare, technology, industrials, and retail. Some noteworthy stocks that added to the fund’s performance were Apple, Sybase (which was acquired), Eaton, Caterpillar, and Williams-Sonoma.
What did not work for the fund and why?
The fund’s overweight position in financials and poor stock selection within that sector were both drags on performance. Although the fund averaged only a slight overweight in financials vs. the index, it was the worst-performing sector in the S&P 500 Index during the fiscal year. Also, the fund had almost no exposure in the real estate investment trust (REIT) industry of the financial sector. REITs were the best-performing industry within financials as these companies did not have the negative overhang of financial regulatory reform. The fund’s positions in some of the biggest financial firms like Goldman Sachs, JPMorgan Chase, and Bank of America all produced negative returns for the period. All of these companies were adversely impacted by the industry’s reform.
What strategic moves were made by the fund and why?
We positioned the fund with overweights in cyclical sectors such as consumer discretionary and technology for the whole fiscal year. Although the U.S. economic recovery has been quite slow, we are still favoring consumer discretionary stocks. We believe this sector will continue to perform well as the economic recovery progresses and as these stocks remain quite attractively valued. We also continue to like the technology sector as it is benefiting from world economic growth and recovering U.S. corporate enterprise spending. On the other hand, we have reduced the fund’s weighting in financials. Loan growth remains non-existent, net interest margins are set to decline, and uncertainty remains around financial regulatory reform. Although credit quality certainly has improved in this sector, we don’t believe this is enough to offset the negatives.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 19
Table of Contents
Large Cap Select Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||
1 year | 5 years | 1/31/2003 | 1 year | 5 years | 1/31/2003 | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | 12.92 | % | (0.75 | )% | 4.71 | % | 4.83 | % | (1.83 | )% | 4.17 | % | ||||||||||||
Class C | 17.60 | % | (0.41 | )% | 4.64 | % | 9.13 | % | (1.49 | )% | 4.12 | % | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | 19.49 | % | 0.38 | % | 5.47 | % | 10.95 | % | (0.72 | )% | 4.94 | % | ||||||||||||
Class C | 18.60 | % | (0.41 | )% | 4.64 | % | 10.13 | % | (1.49 | )% | 4.12 | % | ||||||||||||
Class R | 19.11 | % | 0.13 | % | 5.23 | % | 10.75 | % | (0.95 | )% | 4.70 | % | ||||||||||||
Class Y | 19.75 | % | 0.63 | % | 5.74 | % | 11.24 | % | (0.44 | )% | 5.22 | % | ||||||||||||
S&P 500 Index3 | 16.52 | % | 1.73 | % | 6.37 | % | 10.16 | % | 0.64 | % | 5.92 | % | ||||||||||||
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 5.50% for Class A shares and the 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. | |
As of the most recent prospectus, the fund’s total operating expense ratio (including any acquired fees and expenses) for Class A, Class C, Class R, and Class Y shares was 1.29%, 2.05%, 1.56%, and 1.04%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Large Cap Select Fund, Class A (NAV) | ![]() | $ | 15,110 | |||
Large Cap Select Fund, Class A (POP) | ![]() | $ | 14,282 | |||
S&P 500 Index3 | ![]() | $ | 16,135 | |||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 1/31/2003 to 10/31/2010) as compared to the S&P 500 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161607.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 market capitalization-weighted index based on the average weighted performance of 500 widely held common stocks. |
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. |
20 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Large Cap Value Fund
Investment Objective: primary – capital appreciation; secondary – current income
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Large Cap Value Fund (the “fund”), Class Y shares, returned 10.54% for the fiscal year ended October 31, 2010 (Class A shares returned 10.36% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 1000 Value Index*, returned 15.71% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
JPMorgan Chase | 2 | .9% | ||
AT&T | 2 | .6 | ||
Citigroup | 2 | .5 | ||
CSX | 2 | .1 | ||
Goldman Sachs Group | 2 | .0 | ||
ACE | 2 | .0 | ||
Pfizer | 2 | .0 | ||
Kraft Foods, Class A | 1 | .9 | ||
CMS Energy | 1 | .9 | ||
DIRECTV, Class A | 1 | .8 | ||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 22 | .7% | ||
Energy | 14 | .1 | ||
Healthcare | 12 | .3 | ||
Industrials | 10 | .6 | ||
Consumer Discretionary | 8 | .9 | ||
Information Technology | 8 | .1 | ||
Consumer Staples | 7 | .2 | ||
Materials | 5 | .7 | ||
Utilities | 5 | .6 | ||
Telecommunication Services | 4 | .4 | ||
Other Assets and Liabilities, Net2 | 0 | .4 | ||
100 | .0% | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 21
Table of Contents
Large Cap Value Fund
What worked for the fund and why?
During the fiscal year, the fund’s performance benefited from favorable security selection in the energy, telecommunication, and utility sectors. Within energy, the fund was rewarded for its preference for oil-producing companies with accelerating production profiles and the ability to self fund production. Fund holdings Pioneer Natural Resources, Whiting Petroleum, Concho Resources, and Newfield Exploration experienced strong returns during the period due to those characteristics. Telecommunications provider Qwest Communications rose because of accelerating fundamental trends and its agreement to be acquired by CenturyLink. Utility stock selection was positive with strong performance from CMS Energy following improved fundamental trends and a greater-than-expected dividend increase. Other stocks that had a positive impact on the fund’s performance included department store operator Macy’s; automotive manufacturer Ford Motor; pharmaceutical distributor AmerisourceBergen; soft drink manufacturer Dr. Pepper Snapple Group; and security software developer Check Point Software. Sector allocation was also favorable due to the fund’s overweight stance relative to the benchmark in the consumer cyclical and industrial sectors, as well as an underweight allocation to financials.
What did not work for the fund and why?
Fund performance was negatively impacted by unfavorable stock selection in the consumer staples, information technology, and industrial sectors. Food manufacturers including J.M. Smucker, ConAgra Foods, and General Mills lagged as profit margins came under pressure due to rising commodity costs and elevated promotional activity. Food retailer Kroger also experienced lower profit margins as the promotional environment remained elevated. Technology stock selection hindered results because of Hewlett-Packard, which experienced the unexpected departure of its CEO, and Cisco Systems, as a result of adverse market share trends. The fund fell short in the industrial sector as waste disposal operator Republic Services lagged. The company suffered because of negative pricing pressure related to sluggish demand as well as a lack of exposure to the strong-performing rail and transportation segment early in the period. Other stocks that had a negative impact on performance included pulp and paper manufacturer International Paper; managed care provider WellPoint; electronics retailer Best Buy; and regional bank PNC Financial Services. Additionally, the fund’s modest cash position and underweight allocation to real estate investment trusts (REITs) hurt performance due to the robust returns registered by the market and REIT stocks during the period.
What strategic moves were made by the fund and why?
We continued to focus on companies that we believed would benefit from improving fundamentals not fully recognized by the market. The fund established a number of new positions across a variety of industries including: diversified financial services firms Citigroup, PNC Financial, State Street, Ameriprise Financial, and Invesco; energy firms Cameron International, Concho Resources, National Oilwell Varco, and Pioneer Natural Resources; technology firms Xerox, Marvell Technology, Avnet, Check Point Software, Amphenol, and Qualcomm; specialty chemical manufacturers Albemarle and PPG Industries; satellite television provider DirectTV; fertilizer manufacturer Mosaic; industrial firms Caterpillar, Cummins, and Eaton; and telecommunications provider Qwest Communication.
We eliminated several positions from the fund including: energy-related companies Exxon Mobil, Occidental Petroleum, Apache, Noble, and Transocean; industrial conglomerate General Electric; technology companies Hewlett-Packard, Cisco Systems, Intel, Teradata, and Applied Materials; diversified financial service providers Bank of America, Morgan Stanley, and Bank of New York Mellon; food manufacturers Conagra Foods and J.M. Smucker; and industrial companies Fedex, Ingersoll-Rand, and United Technologies. We continued to implement the fund’s investment process of selecting companies that exhibit improving fundamentals, sell at attractive valuations, and exhibit a near-term catalyst that could improve investor perception.
22 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 4.33 | % | (1.33 | )% | (0.14 | )% | — | (1.58 | )% | (2.48 | )% | (0.06 | )% | — | ||||||||||||||||||
Class B | 4.54 | % | (1.26 | )% | (0.32 | )% | — | (1.59 | )% | (2.40 | )% | (0.25 | )% | — | ||||||||||||||||||
Class C | 8.45 | % | (0.97 | )% | (0.33 | )% | — | 2.42 | % | (2.10 | )% | (0.25 | )% | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 10.36 | % | (0.21 | )% | 0.43 | % | — | 4.12 | % | (1.37 | )% | 0.51 | % | — | ||||||||||||||||||
Class B | 9.54 | % | (0.95 | )% | (0.32 | )% | — | 3.14 | % | (2.10 | )% | (0.25 | )% | — | ||||||||||||||||||
Class C | 9.45 | % | (0.97 | )% | (0.33 | )% | — | 3.42 | % | (2.10 | )% | (0.25 | )% | — | ||||||||||||||||||
Class R | 10.04 | % | (0.47 | )% | — | 2.86 | % | 3.87 | % | (1.63 | )% | — | 2.52 | % | ||||||||||||||||||
Class Y | 10.54 | % | 0.04 | % | 0.68 | % | — | 4.41 | % | (1.12 | )% | 0.76 | % | — | ||||||||||||||||||
Russell 1000 Value Index3 | 15.71 | % | 0.62 | % | 2.64 | % | 4.73 | % | 8.90 | % | (0.48 | )% | 2.59 | % | 4.44 | % | ||||||||||||||||
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 5.50% for Class A shares and the contingent deferred sales charge (’CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
As of the most recent prospectus, the fund’s total operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.22%, 1.97%, 1.97%, 1.47%, and 0.97%, respectively. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Large Cap Value Fund, Class A (NAV) | ![]() | $ | 10,436 | |||||
Large Cap Value Fund, Class A (POP) | ![]() | $ | 9,860 | |||||
Russell 1000 Value Index3 | ![]() | $ | 12,983 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 1000 Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161608.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 measures the performance of those companies in the Russell 1000 Index (a large-cap index) with lower price-to-book ratios and lower forecasted growth values. |
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 23
Table of Contents
Mid Cap Growth Opportunities Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Mid Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 29.57% for the fiscal year ended October 31, 2010 (Class A shares returned 29.24% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Growth Index*, returned 28.03% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
NetApp | 3 | .2 | % | ||
Priceline.com | 2 | .6 | |||
Amphenol, Class A | 2 | .1 | |||
Precision Castparts | 2 | .0 | |||
F5 Networks | 2 | .0 | |||
Cummins | 2 | .0 | |||
Advance Auto Parts | 1 | .9 | |||
Teradata | 1 | .9 | |||
Chipotle Mexican Grill, Class A | 1 | .8 | |||
Wynn Resorts | 1 | .7 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 29 | .3 | % | ||
Consumer Discretionary | 22 | .6 | |||
Industrials | 18 | .5 | |||
Healthcare | 10 | .0 | |||
Financials | 5 | .1 | |||
Energy | 5 | .0 | |||
Materials | 3 | .6 | |||
Consumer Staples | 2 | .7 | |||
Telecommunication Services | 2 | .0 | |||
Utilities | 0 | .7 | |||
Short-Term Investment | 0 | .1 | |||
Other Assets and Liabilities, Net2 | 0 | .4 | |||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
24 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
What worked for the fund and why?
As is typical for the fund, individual stock selection (as opposed to broad themes or sector weights) had the greatest impact on performance during the past fiscal year. The beneficiaries of cyclical improvement outperformed as the financial markets and corporate profits recovered from the calamity of the previous year. Accordingly, the fund’s top performers included priceline.com and F5 Networks, which were also at the top of the list the previous year, as well as Chipotle Mexican Grill. In the case of priceline.com, travelers across the globe are increasingly turning to the internet to arrange their travel plans. Priceline.com has positioned itself to capitalize on this trend with a strong value proposition and an unrivaled breadth of hotel property relationships, which helped it gain meaningful market share during the past 12 months. F5 Networks, a leading supplier of application networking solutions to help companies manage application traffic on their networks, saw consistent improvement in demand for its flagship products and is poised to capture more market share as enterprise capital spending rebounds. Chipotle Mexican Grill, the nation’s largest fast-casual, Mexican-food restaurant, enjoyed some of the most favorable market-share trends of any restaurant concept this past year and over the last decade. Market-share gains combined with increasing operating margins and the ability to grow the store base over many years contributed to its strong stock performance. These winners, along with others such as NetApp, Netflix, and Wynn Resorts shared several characteristics. Each had a strong secular earnings growth outlook along with catalysts that would drive growth in the shorter term. All of these companies remain important fund holdings.
What did not work for the fund and why?
As described above, individual stock selection had the largest impact on the fund’s performance. Two of the fund’s largest detractors occurred in technology, a sector where we also had the best overall stock selection this past year. Vistaprint, a leading web-based marketing supplies company for small businesses, saw its growth rate interrupted. Also, MicroStrategy, a provider of business intelligence software worldwide, declined as its new product cycle fell far short of expectations. Stock selection in the healthcare and financial sectors was also weak. Nuvasive, a medical device company engaged in the surgical treatment of spine disorders, continued to execute and take market share; however, it competes in an industry that has experienced rapidly declining growth and the stock declined as a result. Thoratec, a medical device company engaged in the manufacture of blood pumps, was hurt by a potential new competitor entering its industry. In the financial sector, TD Ameritrade underperformed as short-term interest rates fell and hurt projected earnings. All of the companies mentioned above were sold from the fund’s portfolio.
What strategic moves were made by the fund and why?
Our basic philosophy remains the same. We identify companies with attractive long-term earnings growth prospects, solid management teams, and durable competitive advantages. From that group, we invest in those with fair valuations and approaching catalysts. Although there are individual position changes during any year, the basic framework holds and this past year was no different. As such, most of the changes that we made during the fiscal year reflected our bottom-up, one-stock-at-a-time approach. Stocks that we sold generally faced current and/or future earnings pressures. While the underlying companies remained well run and had favorable long-term growth outlooks, their replacements, in our opinion, have better earnings growth prospects over the next 12 months. For example, we sold holdings such as TJX Companies, DeVry, and CR Bard, and purchased Dollar Tree, the largest and most successful single-price-point retailer in the country; Netflix, one of the best-positioned companies in the on-line DVD rental industry; and Cognizant, one of the largest outsourcing service providers. On the margin, we supplemented our single-stock approach with slight thematic tilts. Currently, we are slightly tilted toward pure growth companies as opposed to cyclical growth companies (which can be more attractive during the earlier stages of an economic recovery) or more stable companies (generally emphasized when we are worried about economic growth). These pure growth companies should do well in a decelerating, but still strong, earnings growth environment.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 25
Table of Contents
Mid Cap Growth Opportunities Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 22.12 | % | 3.25 | % | 4.92 | % | — | — | 11.26 | % | 1.79 | % | 4.02 | % | — | — | ||||||||||||||||||||||||
Class B | 23.27 | % | 3.35 | % | 4.72 | % | — | — | 11.87 | % | 1.89 | % | 3.82 | % | — | — | ||||||||||||||||||||||||
Class C | 27.27 | % | 3.64 | % | — | — | 8.31 | % | 15.87 | % | 2.18 | % | — | — | 7.78 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 29.24 | % | 4.43 | % | 5.51 | % | — | — | 17.75 | % | 2.95 | % | 4.61 | % | — | — | ||||||||||||||||||||||||
Class B | 28.27 | % | 3.65 | % | 4.72 | % | — | — | 16.87 | % | 2.18 | % | 3.82 | % | — | — | ||||||||||||||||||||||||
Class C | 28.27 | % | 3.64 | % | — | — | 8.31 | % | 16.87 | % | 2.18 | % | — | — | 7.78 | % | ||||||||||||||||||||||||
Class R | 28.94 | % | 4.17 | % | — | 5.31 | % | — | 17.46 | % | 2.70 | % | — | 4.79 | % | — | ||||||||||||||||||||||||
Class Y | 29.57 | % | 4.69 | % | 5.78 | % | — | — | 18.06 | % | 3.21 | % | 4.87 | % | — | — | ||||||||||||||||||||||||
Russell Midcap Growth Index4 | 28.03 | % | 4.28 | % | 0.20 | % | 0.80 | % | 7.89 | % | 18.27 | % | 2.86 | % | (0.88 | )% | 0.41 | % | 7.51 | % | ||||||||||||||||||||
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 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
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 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
As of the most recent prospectus, the fund’s total annual operating expense ratio for Class A, Class B, Class C, Class R, and Class Y shares was 1.23%, 1.98%, 1.98%, 1.48%, and 0.98%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,5 as of October 31, 2010
Mid Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 17,100 | |||
Mid Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 16,159 | |||
Russell Midcap Growth Index4 | ![]() | $ | 10,206 | |||
This chart, illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell Midcap Growth Index4.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161609.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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. |
On September 24, 2001, the First American Mid Cap Growth Opportunities Fund became the successor by merger to the Firstar MidCap Core Equity 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 MidCap Core Equity Fund. |
4 | An unmanaged index that measures the performance of those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growth values. |
5 | Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to the different expense structures. |
26 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Select Fund
Investment Objective: long-term growth of capital
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Mid Cap Select Fund (the “fund”), Class Y shares, returned 22.26% for the fiscal year ended October 31, 2010 (Class A shares returned 22.03% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Index*, returned 27.71% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
F5 Networks | 3 | .2 | % | ||
NetApp | 2 | .9 | |||
Ventas – REIT | 2 | .3 | |||
Akamai Technologies | 2 | .2 | |||
CMS Energy | 2 | .1 | |||
Newfield Exploration | 2 | .0 | |||
Eaton | 2 | .0 | |||
Joy Global | 2 | .0 | |||
Interpublic Group of Companies | 1 | .9 | |||
PartnerRe | 1 | .9 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Consumer Discretionary | 23 | .5 | % | ||
Information Technology | 22 | .8 | |||
Financials | 13 | .6 | |||
Industrials | 11 | .6 | |||
Healthcare | 7 | .6 | |||
Energy | 6 | .7 | |||
Materials | 5 | .5 | |||
Utilities | 3 | .5 | |||
Telecommunication Services | 3 | .2 | |||
Consumer Staples | 1 | .5 | |||
Short-Term Investment | 0 | .5 | |||
Other Assets & Liabilities, Net2 | 0 | .0 | |||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 27
Table of Contents
Mid Cap Select Fund
What worked for the fund and why?
During the fiscal year, the fund once again benefited from effective size, sector, and market positioning, in addition to strong stock selection. As the economy continued on the road to recovery, the fund was rewarded for its emphasis on smaller capitalization stocks relative to the benchmark, along with its corresponding underweight in larger cap stocks. The fund’s tilt away from defensive sectors like staples, utilities, and healthcare and toward more cyclical sectors such as information technology and consumer discretionary also aided performance. Based on our outlook for an ongoing economic recovery and the subsequent quest for growth, we positioned the fund with overweight positions in fundamentally strong, economically sensitive stocks relative to the benchmark. In technology, the fund benefited from its position in software company F5 Networks and also from the takeovers of two portfolio holdings, SonicWALL and Sybase. Additionally, the fund gained significant performance from our stock selection in the energy and commodity sectors, including oil and gas exploration companies such as Pioneer Natural Resources and Whiting Petroleum as well as mining company Cliffs Natural Resources. Finally, the fund was rewarded for its positions in opportunistic, higher beta* stocks that gave it more exposure to market strength.
What did not work for the fund and why?
In terms of stock selection, the largest detractors from the fund’s performance were retailers 1-800-Flowers and J.C. Penney. In the healthcare sector, robotic surgery equipment manufacturer Intuitive Surgical and medical specialties company Thoratec also hurt results. Performance was also hindered by the fund’s relative weightings in various financial industries vs. the index. These included overweights in the weaker performing areas — banks and diversified financials — along with an underweight in the strongly advancing real estate sector. Although we attempted to keep cash at a minimum, the fund also experienced negative relative performance from holding a minimal amount of cash during the bull market conditions.
What strategic moves were made by the fund and why?
We continued to emphasize the cyclical sectors of the market, such as information technology and consumer discretionary, as more data indicated that the economy was moving forward. We funded these overweights with underweight positions in the utilities, healthcare, and consumer staples sectors. Because we expected returns to be driven primarily by stock selection, we remained focused on finding companies that exhibited strong or improving business fundamentals, attractive valuations, and positive catalysts for improved market recognition. We also emphasized cyclical stocks with attractive risk/reward characteristics that we believed investors will value as earnings eventually recover. Examples of these types of companies included fund holdings such as F5 Networks, NetApp, Newfield Exploration, Ventas, and Joy Global. As we continue to see economic recovery in 2011, we believe that companies on the smaller end of the mid-cap range are poised to outperform.
* | A statistical measure of a fund or stock’s volatility as compared to the overall market. |
28 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||
1 year | 5 years | 10 years | 1 year | 5 years | 10 years | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | 15 | .25% | 1.90 | % | (12.21 | )% | 5 | .57% | 0.47 | % | (13.93 | )% | ||||||||||||
Class B | 16 | .17% | 1.91 | % | (12.39 | )% | 5 | .92% | 0.44 | % | (14.09 | )% | ||||||||||||
Class C | 19 | .93% | 2.29 | % | (12.38 | )% | 9 | .81% | 0.81 | % | (14.09 | )% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | 22 | .03% | 3.07 | % | (11.71 | )% | 11 | .73% | 1.60 | % | (13.44 | )% | ||||||||||||
Class B | 21 | .17% | 2.27 | % | (12.39 | )% | 10 | .92% | 0.83 | % | (14.09 | )% | ||||||||||||
Class C | 20 | .93% | 2.29 | % | (12.38 | )% | 10 | .81% | 0.81 | % | (14.09 | )% | ||||||||||||
Class Y | 22 | .26% | 3.30 | % | (11.49 | )% | 12 | .09% | 1.85 | % | (13.21 | )% | ||||||||||||
Russell Midcap Index3 | 27 | .71% | 4.01 | % | 5.42 | % | 17 | .54% | 2.60 | % | 4.86 | % | ||||||||||||
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 the maximum sales charges of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class B, Class C, and Class Y shares was 1.92%, 2.67%, 2.67%, and 1.67%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least February 28, 2011 so that the total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses), for Class A, Class B, Class C, and Class Y shares do not exceed 1.41%, 2.16%, 2.16%, and 1.16%, respectively. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Mid Cap Select Fund, Class A (NAV) | ![]() | $ | 2,877 | |||||
Mid Cap Select Fund, Class A (POP) | ![]() | $ | 2,719 | |||||
Russell Midcap Index3 | ![]() | $ | 16,951 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell Midcap Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161610.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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. |
Performance for periods prior to May 4, 2009 reflects the fund’s operation using different investment strategies than are currently in place. Effective October 3, 2005, the fund’s principal investment strategy changed from investing primarily in technology stocks to investing primarily in common stocks of small- and mid-capitalization companies, and the fund’s name changed from Technology Fund to Small-Mid Cap Core Fund. Thereafter, effective May 4, 2009, the fund’s principal investment strategy was changed from investing primarily in common stocks of small- and mid-capitalization companies to investing primarily in common stocks of mid-capitalization companies, and the fund’s name changed from Small-Mid Cap Core Fund to Mid Cap Select Fund. |
3 | An unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 Index. |
4 | Performance for Class B, Class C, 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 29
Table of Contents
Mid Cap Value Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Mid Cap Value Fund (the “fund”), Class Y shares, returned 22.98% for the fiscal year ended October 31, 2010 (Class A shares returned 22.65% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell Midcap Value Index*, returned 27.49% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6, 2010 the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
PPG Industries | 2 | .1 | % | ||
CMS Energy | 2 | .0 | |||
Arch Capital Group | 1 | .9 | |||
Unum Group | 1 | .9 | |||
Sempra Energy | 1 | .9 | |||
Xerox | 1 | .9 | |||
Stanley Black & Decker | 1 | .8 | |||
JM Smucker | 1 | .8 | |||
PartnerRe | 1 | .8 | |||
Wisconsin Energy | 1 | .8 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 23 | .1 | % | ||
Energy | 11 | .3 | |||
Consumer Discretionary | 11 | .1 | |||
Utilities | 10 | .6 | |||
Industrials | 10 | .1 | |||
Materials | 9 | .4 | |||
Healthcare | 7 | .9 | |||
Information Technology | 7 | .5 | |||
Consumer Staples | 5 | .4 | |||
Telecommunication Services | 3 | .0 | |||
Short-Term Investment | 1 | .5 | |||
Other Assets and Liabilities, Net2 | (0 | .9 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
30 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
What worked for the fund and why?
During the fiscal year, the fund’s performance benefited from favorable security selection in the energy, materials, and telecommunication sectors. Within energy, the fund was rewarded for its preference for oil-producing companies with accelerating production profiles and the ability to self fund production. Fund holdings Pioneer Natural Resources, Whiting Petroleum, Concho Resources, and Newfield Exploration experienced strong returns during the period due to those favorable characteristics. Chemical manufacturers Celanese, PPG Industries, Albemarle; iron ore miner Cliffs Resources; and fertilizer manufacturer CF Industries Holdings were significant contributors to performance as commodity prices moved higher, driven by an increase in developing market demand, particularly from China. Telecommunications provider Qwest Communications rose because of accelerating fundamental trends and its agreement to be acquired by CenturyLink. Aerospace equipment manufacturer Goodrich outperformed due to rebounding industry conditions. Machinery manufacturer Cummins continued to benefit from accelerating demand for its heavy-duty truck products outside of the United States. Other holdings that helped fund performance included auto parts manufacturer Magna International, department store operator Macy’s, and hotel operator Starwood Hotels & Resorts. Sector allocation was also favorable due to the fund’s overweight stance relative to the benchmark in the information technology and consumer cyclical sectors, as well as an underweight allocation to financials.
What did not work for the fund and why?
Fund performance was negatively impacted by unfavorable stock selection in the consumer staples, consumer discretionary, information technology, and healthcare sectors. Food manufacturers including ConAgra Foods and Del Monte Foods lagged as profit margins came under pressure because of rising commodity costs and elevated promotional activity. Food retailers Kroger and Safeway also experienced lower profit margins as the promotional environment remained elevated. Within the consumer discretionary area, retail holdings OfficeMax, Expedia, AnnTaylor Stores, and Guess? negatively impacted performance due to sharp corrections following a brief pause in fundamental trends during the summer months. Communications equipment providers Tellabs and Polycom underperformed as a result of slowing demand for core offerings and lower earnings expectations. Semiconductor-related companies Micron Technology and KLA-Tencor also fell short due to peaking fundamental trends that investors believed were not sustainable. Other holdings that negatively impacted the fund’s performance during the period included reinsurance provider Everest Re Group, specialty chemical manufacturer Air Products & Chemicals, and waste disposal operator Republic Services. Additionally, the fund’s modest cash position and underweight allocation to real estate investment trusts (REITs) hurt performance due to the robust returns registered by the market and REIT stocks during the period.
What strategic moves were made by the fund and why?
We continued to focus on companies that we believed would benefit from improving fundamentals not fully recognized by the market. The fund established a number of new positions during the fiscal year including: chemical producers PPG Industries and Albemarle; fertilizer manufacturer CF Industries Holdings, energy-related firms Whiting Petroleum, Concho Resources, and Plains Exploration; industrial companies Eaton, Cummins, Dover, and Textron; pharmaceutical developers Endo Pharmaceuticals and Valeant Pharmaceuticals; and technology providers Xerox, Check Point Software, and Marvell Technology.
We eliminated several positions from the fund including: food company Conagra Foods; food retailers Kroger and Safeway; industrial companies Ingersoll-Rand, ITT Corp, W.W. Grainger, and Werner Enterprises; specialty chemical manufacturer Air Products & Chemicals; packaging manufacturers Sonoco Products and Packaging Corp of America; technology firms Computer Sciences, Polycom, Tellabs, Analog Devices, KLA Tencor, and Altera; regional banks Comerica, Regions Financial, and Keycorp; and consumer discretionary companies OfficeMax, Newell Rubbermaid, WMS Industries, Expedia, Guess?, and Gap. We continued to implement the fund’s investment process of selecting companies that exhibit improving fundamentals, sell at attractive valuations, and exhibit a near-term catalyst that could improve investor perception.
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 31
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Mid Cap Value Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 15.93 | % | 1.61 | % | 5.98 | % | — | 7.79 | % | 0.18 | % | 5.89 | % | — | ||||||||||||||||||
Class B | 16.77 | % | 1.66 | % | 5.79 | % | — | 8.11 | % | 0.23 | % | 5.69 | % | — | ||||||||||||||||||
Class C | 20.74 | % | 1.99 | % | 5.79 | % | — | 12.16 | % | 0.57 | % | 5.70 | % | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 22.65 | % | 2.76 | % | 6.58 | % | — | 14.04 | % | 1.32 | % | 6.49 | % | — | ||||||||||||||||||
Class B | 21.77 | % | 2.00 | % | 5.79 | % | — | 13.11 | % | 0.56 | % | 5.69 | % | — | ||||||||||||||||||
Class C | 21.74 | % | 1.99 | % | 5.79 | % | — | 13.16 | % | 0.57 | % | 5.70 | % | — | ||||||||||||||||||
Class R | 22.40 | % | 2.51 | % | — | 8.44 | % | 13.69 | % | 1.07 | % | — | 8.08 | % | ||||||||||||||||||
Class Y | 22.98 | % | 3.03 | % | 6.83 | % | — | 14.30 | % | 1.57 | % | 6.74 | % | — | ||||||||||||||||||
Russell Midcap Value Index3 | 27.49 | % | 3.38 | % | 8.00 | % | 9.47 | % | 16.93 | % | 1.97 | % | 7.80 | % | 9.10 | % | ||||||||||||||||
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 5.50% for Class A shares and the contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies.
As of the most recent prospectus, the fund’s total annual operating expense ratio (including any acquired fund fees and expenses) for Class A, Class B, Class C, Class R, and Class Y shares was 1.25%, 1.98%, 2.00%, 1.50%, and 1.00%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Mid Cap Value Fund, Class A (NAV) | ![]() | $ | 18,915 | |||||
Mid Cap Value Fund, Class A (POP) | ![]() | $ | 17,880 | |||||
Russell Midcap Value Index3 | ![]() | $ | 21,586 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell Midcap Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161611.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 measures the performance of those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values. |
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. |
32 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Quantitative Large Cap Core Fund
Investment Objective: to provide, over the long term, a total return that exceeds that of the S&P 500 Index*
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Quantitative Large Cap Core Fund (the “fund”), Class Y shares, returned 15.61% for the fiscal year ended October 31, 2010 (Class A shares returned 15.24% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index*, returned 16.52% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6th the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
What worked for the fund and why?
Our various “style” management strategies continued to benefit the performance of the Quantitative Large Cap Core Fund during the past year. In particular, one of our key style strategies that proved beneficial was an emphasis on smaller-capitalization stocks in the fund. The fund’s average market capitalization was approximately $28 billion, in the range of firms such as Texas Instruments, Deere & Co, or Bank of New York Mellon. This compares to the S&P 500’s average market cap of $45 billion, which is about the size of Ford Motor Company, Bristol-Myers Squibb, or DuPont. Other style strategies also contributed to performance over the course of the fiscal year, including our emphasis on owning stocks with somewhat more variable earnings, higher financial leverage, and higher book value for every dollar of market value.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Exxon Mobil | 3 | .7 | % | ||
Microsoft | 2 | .4 | |||
Chevron | 2 | .3 | |||
Apple | 1 | .8 | |||
Proctor & Gamble | 1 | .6 | |||
Pfizer | 1 | .5 | |||
Cisco Systems | 1 | .5 | |||
Google, Class A | 1 | .4 | |||
IBM | 1 | .4 | |||
AT&T | 1 | .3 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 24 | .6 | % | ||
Financials | 12 | .8 | |||
Consumer Discretionary | 11 | .9 | |||
Healthcare | 10 | .9 | |||
Industrials | 10 | .3 | |||
Energy | 9 | .2 | |||
Consumer Staples | 7 | .8 | |||
Materials | 7 | .3 | |||
Telecommunication Services | 3 | .5 | |||
Utilities | 0 | .2 | |||
Short-Term Investments | 1 | .6 | |||
Other Assets and Liabilities, Net2 | (0 | .1 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all 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 33
Table of Contents
Quantitative Large Cap Core Fund
In the sector component of our strategy, we placed a strong overweight on technology stocks. This overweight stance, plus a modest underweight in the healthcare sector, was also beneficial to the fund’s performance. Finally, in the fund’s diversified portfolio, we successfully implemented a number of individual stock decisions to achieve our underlying style and industry strategies. For example, the fund benefited from avoiding the agriculture products firm Monsanto and from overweighting internet company IAC and semiconductor firm Marvell Technology Group.
What did not work for the fund and why?
The market drivers over the past few years again led us to take positions in industries that were not successful overall. Financial firms were at the top of that list as changes in the Federal Reserve’s interest rate policy went well outside the historical ranges, while new regulatory proposals also caused valuations to gyrate. Throughout the fiscal year, the fund’s performance was hindered by an overweight position in the financial sector, including increasing its position in that group as news made the stocks more volatile. In aggregate, individual stock selections also reduced the fund’s returns. For example, we overweighted laggards such as Pitney-Bowes and Alcoa and underweighted companies that ran ahead of their peers such as Apple and Amazon.com.
What strategic moves were made by the fund and why?
Over the past year, large-cap stocks have turned in a remarkable V-shaped rebound in profits to a near-record share of national income, belying the slow recovery of the overall economy. Much of the rebound has been driven by the surge of production due to inventory rebuilding, the stimulus package, and tight control on production costs. These factors are not expected to drive further gains. Final demand for production remains weak, the big boost from inventories is over, and “austerity measures” instead of stimulus is the watchword in Washington today. Also, further gains from already low labor costs would require dramatic reductions in wages or new sources of productivity that seem incompatible with extending hours worked. Therefore, the fund’s strategy is currently less levered to an increase in market values and more focused on stable earnings plus organic growth.
34 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||
Since Inception | Since Inception | |||||||||||||||
1 year | 7/31/2007 | 1 year | 7/31/2007 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | 8.89 | % | (6.20 | )% | 2.65 | % | (7.47 | )% | ||||||||
Class C | 13.46 | % | (5.25 | )% | 6.86 | % | (6.49 | )% | ||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 15.24 | % | (4.55 | )% | 8.62 | % | (5.80 | )% | ||||||||
Class C | 14.46 | % | (5.25 | )% | 7.86 | % | (6.49 | )% | ||||||||
Class Y | 15.61 | % | (4.30 | )% | 8.93 | % | (5.56 | )% | ||||||||
S&P 500 Index3 | 16.52 | % | (4.04 | )% | 10.16 | % | (5.27 | )% | ||||||||
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 5.50% for Class A shares and the 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.
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 2.02%, 2.77% and 1.77%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least February 28, 2011 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 0.70%, 1.45% and 0.45%, respectively. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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.
The First American Quantitative Large Cap Core Fund is actively managed using our proprietary macro quant process, which projects individual stock performance based on multiple factors and current economic conditions. Stocks selected using this process could underperform if the current performance of the factors differs from their historic performance. Turnover, expenses, and taxes will be similar to other actively managed funds.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Quantitative Large Cap Core Fund, Class A (NAV) | ![]() | $ | 8,595 | |||||
Quantitative Large Cap Core Fund, Class A (POP) | ![]() | $ | 8,121 | |||||
S&P 500 Index3 | ![]() | $ | 8,746 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares
(from 7/31/2007 to 10/31/2010) as compared to the S&P 500 Index3.
(from 7/31/2007 to 10/31/2010) as compared to the S&P 500 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161612.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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, market capitalization-weighted index based on the average weighted performance of 500 widely held large-cap common stocks. |
4 | Performance for Class C 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 35
Table of Contents
Real Estate Securities Fund
Investment Objective: above-average current income and long-term capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Real Estate Securities Fund (the “fund”), Class Y shares, returned 45.16% for the fiscal year ended October 31, 2010 (Class A shares returned 44.82% without taking the sales charge into account). By comparison, the fund’s benchmark, the MSCI U.S. REIT Index*, returned 43.39% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6th the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Simon Property Group | 9 | .0 | % | ||
Public Storage | 5 | .0 | |||
Avalonbay Communities | 5 | .0 | |||
Equity Residential Properties Trust | 4 | .7 | |||
Boston Properties | 4 | .3 | |||
Ventas | 3 | .9 | |||
HCP | 3 | .6 | |||
Vornado Realty Trust | 3 | .0 | |||
Host Hotels & Resorts | 2 | .8 | |||
Macerich | 2 | .4 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Office | 18 | .4 | % | ||
Apartments | 15 | .1 | |||
Malls | 13 | .1 | |||
Healthcare | 12 | .3 | |||
Community Centers | 8 | .7 | |||
Hotels | 7 | .7 | |||
Industrials | 7 | .4 | |||
Self Storage | 6 | .7 | |||
Diversified | 4 | .8 | |||
Net Lease | 1 | .5 | |||
Infrastructure | 1 | .4 | |||
Student Housing | 0 | .9 | |||
Manufactured Homes | 0 | .9 | |||
Short-Term Investment | 2 | .3 | |||
Other Assets and Liabilities, Net2 | (1 | .2 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
36 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
In the commercial real estate sector, many of the issues remained the same as those documented in last year’s report. Generally weak economic conditions, a lack of job growth, and constrained capital contributed to a weak fundamental environment. However, public real estate investment trusts (REITs) — approximately 10% of the total commercial real estate sector — continued their strong price recovery that began in March 2009, enjoying a significant capital advantage over many private real estate companies. As a whole, the experienced management teams at these public firms have been able to repair balance sheets due to their collections of very good overall portfolios in strong long-term locations. Public REITs are now well positioned to take advantage of opportunities for internal and external growth. Over the fiscal year, apartments were the best-performing REIT sector given the strong dynamics found in that segment including: renewed household formation, already strong occupancy levels, and very little new supply in the foreseeable future.
What worked for the fund and why?
The fund benefited from individual stock selection during the fiscal year. Consistent with our investment process, the portfolio had a bias toward higher-quality companies (those with consistent, visible cash flows) and continued to invest on a relative-value basis (with a focus on individual stocks rather than economic or market cycles). This strategy helped the fund avoid several underperforming stocks. The fund invests in a fairly sector-neutral manner, which we believe provides shareholders with a well-diversified* portfolio of public real estate stocks.
The fund’s best-performing sectors on a relative basis were office, community centers, and healthcare REITs. Our strong relative performance in the office sector was due to underweight positions in underperforming stocks such as Commonwealth REIT and Duke Realty; a good position in non-index holding Brookfield Properties; and active management of several companies whose price dynamics throughout the year offered distinct entry and/or exit points. In community centers and healthcare REITs, the fund performed well due to a combination of solid holdings in outperformers and underweight positions in several underperformers.
What did not work for the fund and why?
The broad REIT rally that continued during this fiscal year saw some lower quality stocks keeping up and, in some cases, outperforming higher quality stocks. Therefore, the fund’s emphasis on higher quality stocks actually hurt its performance. An example of this was in the apartment sector where the fund’s underweight positions in the sector’s historically weaker companies held back performance. That being said, we continue to believe in our long-term investment process. The fund’s worst-performing sectors on a relative value basis were apartments, student housing, and cash. Although we strive to stay close to fully invested at all times, the fund’s small average cash position of approximately 0.70% was a drag on performance in the strongly appreciating markets.
What strategic moves were made by the fund and why?
We continued to invest the fund on a relative value and sector-neutral basis, which provided a well-diversified portfolio of public real estate companies. This has the effect of reducing the impact of any one negatively performing sector. We took a cautious approach to weightings in suburban office companies, believing the fundamental environment for central business district office companies was stronger. We continued to own international real estate stocks and infrastructure stocks with heavy real estate foundations in an attempt to access more dynamic parts of the global real estate cycle. At the end of the fiscal year, the fund had less than 5% of its assets in international and infrastructure holdings.
* | Diversification does not assure a profit or protect against a loss in a declining market. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 37
Table of Contents
Real Estate Securities Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||
Class A | 36.90 | % | 4.82 | % | 12.12 | % | — | 24.53 | % | 3.46 | % | 11.15 | % | — | ||||||||||||||||||||||
Class B | 38.66 | % | 4.95 | % | 11.92 | % | — | 25.80 | % | 3.60 | % | 10.95 | % | — | ||||||||||||||||||||||
Class C | 42.76 | % | 5.23 | % | 11.91 | % | — | 29.74 | % | 3.85 | % | 10.95 | % | — | ||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||
Class A | 44.82 | % | 6.01 | % | 12.75 | % | — | 31.79 | % | 4.64 | % | 11.78 | % | — | ||||||||||||||||||||||
Class B | 43.66 | % | 5.22 | % | 11.92 | % | — | 30.80 | % | 3.86 | % | 10.95 | % | — | ||||||||||||||||||||||
Class C | 43.76 | % | 5.23 | % | 11.91 | % | — | 30.74 | % | 3.85 | % | 10.95 | % | — | ||||||||||||||||||||||
Class R | 44.54 | % | 5.76 | % | — | 12.96 | % | 31.49 | % | 4.39 | % | — | 12.50 | % | ||||||||||||||||||||||
Class Y | 45.16 | % | 6.27 | % | 13.03 | % | — | 32.15 | % | 4.90 | % | 12.07 | % | — | ||||||||||||||||||||||
MSCI U.S. REIT Index3 | 43.39 | % | 3.33 | % | 11.25 | % | 11.15 | % | 30.54 | % | 1.88 | % | 10.20 | % | 10.69 | % | ||||||||||||||||||||
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Sector funds such as the Real Estate Securities Fund are more vulnerable to price fluctuation as a result of events that may affect the industry in which they focus than are funds that invest in multiple industries. Share prices of sector funds also will fluctuate with changing market conditions, as will share prices of other stock funds. Sector funds should not be treated as a core investment; rather, their role is to round out the growth portion of a well-diversified investment portfolio.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”) for Class A, Class B, Class C, Class R, and Class Y shares was 1.27%, 2.02%, 2.02%, 1.52%, and 1.02%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Real Estate Securities Fund, Class A (NAV) | ![]() | $ | 33,217 | |||||
Real Estate Securities Fund, Class A (POP) | ![]() | $ | 31,393 | |||||
MSCI U.S. REIT Index3 | ![]() | $ | 29,048 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the MSCI U.S. REIT Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161613.gif)
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 were in effect during the periods indicated. 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 the most actively traded real estate investment trusts. |
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. |
38 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Growth Opportunities Fund
Investment Objective: growth of capital
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Small Cap Growth Opportunities Fund (the “fund”), Class Y shares, returned 31.22% for the fiscal year ended October 31, 2010 (Class A shares returned 30.86% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Growth Index*, returned 28.67% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6th the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
What worked for the fund and why?
Stock selection in the healthcare sector was the most significant positive contributor to the fund’s relative performance, particularly among biotechnology firms because of acquisition activity and the anticipation of clinical results. The strongest biotechnology performer was OSI Pharmaceuticals, a company that manufactures and co-markets the cancer medication Tarceva. The company was the subject of a hostile takeover by a Japanese pharmaceutical company, Astellas, which drove its shares higher by 55%. In the healthcare services group, shares of the home nursing company Amedisys reacted favorably in anticipation of strong fourth-quarter results and robust 2010 guidance. At that point, we believed the stock was fully valued and sold it prior to an unexpected federal inquiry into its billing practices. Zoll Medical, a manufacturer of defibrillation equipment with an emerging new product pipeline, benefited from stabilization in its core markets and annual guidance that was well received by investors.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 4 | .1 | % | ||
Wolverine World Wide | 2 | .3 | |||
Warnaco Group | 1 | .8 | |||
PMC-Sierra | 1 | .8 | |||
Atheros Communications | 1 | .8 | |||
Zoll Medical | 1 | .7 | |||
Clean Harbors | 1 | .7 | |||
AnnTaylor Stores | 1 | .6 | |||
Buffalo Wild Wings | 1 | .6 | |||
Plantronics | 1 | .6 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 28 | .0 | % | ||
Consumer Discretionary | 20 | .3 | |||
Healthcare | 18 | .7 | |||
Industrials | 16 | .8 | |||
Energy | 5 | .1 | |||
Financials | 3 | .9 | |||
Materials | 2 | .3 | |||
Telecommunication Services | 1 | .5 | |||
Short-Term Investment | 4 | .1 | |||
Other Assets & Liabilities, Net2 | (0 | .7 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 39
Table of Contents
Small Cap Growth Opportunities Fund
Once again, stock selection in the industrial sector contributed to the fund’s outperformance. BE Aerospace, the largest manufacturer of cabin interior products for commercial airlines and a leading aftermarket distributor of aerospace fasteners, benefited from the long-awaited increase in demand associated with increases in new plane orders that sent shares higher. Interface also fared well as this modular carpet manufacturer for commercial and residential markets suggested that cost initiatives had taken hold and that office turnover and renovation work would support top-line growth on a more sustained basis.
Consumer staples – a sector that is typically not emphasized in the fund – provided outperformance driven by a pair of acquisitions. The first of these was Chattem, a Tennessee-based manufacturer and marketer of branded, over-the-counter healthcare products. The company was acquired in December 2009 by the French pharmaceutical giant Sanofi-Aventis for a 33% premium. In January 2010, Bare Escentuals, a marketer of minerals-based makeup, was acquired in a cash deal by the Japanese cosmetics company, Shiseido, sending shares higher by 42%.
Lastly, the fund derived positive relative performance in the consumer discretionary sector, primarily from a group of restaurants that generally reported modest improvements in comparable store sales – a distinct reversal from the sluggish environment in 2009. Restaurant holdings that added to results this fiscal year included California Pizza Kitchen, Panera Bread Company, Texas Roadhouse, Buffalo Wild Wings, and P.F. Chang’s China Bistro.
What did not work for the fund and why?
Stock selection in the telecommunications sector was the most notable detractor from relative performance over the past fiscal year. Shares of Neutral Tandem, a provider of local switching and related services to telecommunications carriers, were weak during the first three quarters as a result of soft initial 2010 guidance, concerns over increased price competition from a small private company, and a pronouncement by the U.S. Patent Office that its patents were invalid. The fund’s energy holdings, primarily natural gas-levered companies without liquid condensate production such as GMX Resources and Comstock Resources, also weighed on performance as the market factored in continued on-shore supply growth. Finally, the fund’s modest cash balance was also a slight negative given the strong performance of small-cap stocks over the past year.
What strategic moves were made in the fund and why?
Over the course of the past fiscal year, we have attempted to maintain flexibility in the fund’s positioning given the stop-and-start nature of the recovery in the U.S. economy. Generally speaking, investors were encouraged by progress made on the labor front in the early portion of the year, but this gave way to summer weakness punctuated by housing market softness and a period of rising unemployment claims. However, the Federal Reserve’s new course of monetary stimulus has created a renewed optimism for growth looking ahead to 2011. In terms of sector moves, the most significant change we made during the year was to increase consumer discretionary holdings, moving the fund from an underweight relative to the benchmark Russell 2000 Growth Index to being substantially overweight. We believed there were attractive opportunities in specialty retail as well as apparel and luxury goods that presented favorable valuations and should fare well as investors react to additional stimulus measures and prospects for extended tax cuts. A portion of the fund’s overweight in the consumer discretionary area also reflects the lack of attractive candidates among consumer staples stocks at this point. We also increased the fund’s weighting in the energy sector this past year, where strong oil prices were driven by the weakening U.S. dollar. This led us to emphasize oil-based production holdings as well as oil-related energy service companies, which should benefit from heightened production activity.
On the other hand, we lowered the fund’s normally overweight position among technology holdings to the benchmark weight. Not only has the sector performed strongly – particularly in the networking and semiconductor groups – but valuations do not appear as attractive as they were earlier in the year. We also reduced financial sector holdings in light of the continuing uncertainties associated with regional banks in terms of prospective loan growth and net interest margin pressure. The fund’s healthcare and industrial weightings are essentially in line with the benchmark. Our investment process continues to be driven by the identification of secular trends and valuation opportunities that we believe will provide attractive returns for investors.
40 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 12/11/2000 | 9/24/2001 | 1 year | 5 years | 10 years | 12/11/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 23.64 | % | 2.25 | % | 3.09 | % | — | — | 11.15 | % | 0.45 | % | 1.54 | % | — | — | ||||||||||||||||||||||||
Class B | 24.95 | % | 2.36 | % | 2.90 | % | — | — | 11.75 | % | 0.55 | % | 1.35 | % | — | — | ||||||||||||||||||||||||
Class C | 28.91 | % | 2.65 | % | — | — | 6.45 | % | 15.75 | % | 0.84 | % | — | — | 5.96 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 30.86 | % | 3.42 | % | 3.67 | % | — | — | 17.63 | % | 1.59 | % | 2.11 | % | — | — | ||||||||||||||||||||||||
Class B | 29.95 | % | 2.64 | % | 2.90 | % | — | — | 16.75 | % | 0.83 | % | 1.35 | % | — | — | ||||||||||||||||||||||||
Class C | 29.91 | % | 2.65 | % | — | — | 6.45 | % | 16.75 | % | 0.84 | % | — | — | 5.96 | % | ||||||||||||||||||||||||
Class R | 30.50 | % | 3.16 | % | — | 4.33 | % | — | 17.33 | % | 1.33 | % | — | 3.86 | % | — | ||||||||||||||||||||||||
Class Y | 31.22 | % | 3.67 | % | 3.93 | % | — | — | 17.91 | % | 1.84 | % | 2.37 | % | — | — | ||||||||||||||||||||||||
Russell 2000 Growth Index3 | 28.67 | % | 3.99 | % | 1.15 | % | 1.96 | % | 6.86 | % | 14.79 | % | 2.35 | % | (0.13 | )% | 1.54 | % | 6.43 | % | ||||||||||||||||||||
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.3863.
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 contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.
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 1.48%, 2.23%, 2.23%, 1.73%, and 1.23%, respectively. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least February 28, 2011 so that the 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 1.47%, 2.22%, 2.22%, 1.72%, and 1.22%, respectively. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Small Cap Growth Opportunities Fund, Class A (NAV) | ![]() | $ | 14,343 | |||||
Small Cap Growth Opportunities Fund, Class A (POP) | ![]() | $ | 13,554 | |||||
Russell 2000 Growth Index3 | ![]() | $ | 11,209 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 2000 Growth Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161614.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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. |
On December 12, 2002 the fund changed its main investment strategy such that it was permitted to invest in securities of companies with market capitalizations within the range of companies in the Russell 2000 index. Previously, the fund invested primarily in companies with market capitalizations of below $500 million at the time of purchase. | |
On September 24, 2001, the First American Small Cap Growth Opportunities Fund became the successor by merger to the Firstar MicroCap 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 MicroCap Fund. | |
3 | An unmanaged index that measures the performance of those Russell 2000 Index (a small-cap index) with higher price-to-book ratios and higher forecasted growth values. |
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 41
Table of Contents
Small Cap Select Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Small Cap Select Fund (the “fund”), Class Y shares, returned 23.30% for the fiscal year ended October 31, 2010 (Class A shares returned 22.98% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned 26.58% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6th the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual fund returns, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 2 | .5 | % | ||
Delphi Financial Group, Class A | 1 | .8 | |||
MasTec | 1 | .8 | |||
CommVault Systems | 1 | .7 | |||
Umpqua Holdings | 1 | .7 | |||
MGIC Investment | 1 | .6 | |||
Regal-Beloit | 1 | .5 | |||
Thoratec | 1 | .5 | |||
Smith Micro Software | 1 | .5 | |||
Zoll Medical | 1 | .5 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 21 | .0 | % | ||
Financials | 19 | .4 | |||
Consumer Discretionary | 15 | .3 | |||
Industrials | 15 | .3 | |||
Healthcare | 11 | .0 | |||
Materials | 6 | .5 | |||
Energy | 5 | .5 | |||
Short-Term Investment | 2 | .5 | |||
Consumer Staples | 1 | .9 | |||
Utilities | 0 | .9 | |||
Telecommunication Services | 0 | .9 | |||
Other Assets & Liabilities, Net2 | (0 | .2 | ) | ||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
42 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
What worked for the fund and why?
The fund’s performance benefited from stock selection within the consumer, technology, and industrial sectors. In the consumer area, the fund’s investments in Coinstar and Fossil contributed positively to results as the stocks returned 80% and 120%, respectively, over the fiscal year timeframe. Coinstar continued to execute on opportunities in the DVD rental marketplace. Fossil hit the market right with its merchandise and executed very well in an extremely tough and value-conscious market. These positive returns helped the fund’s consumer holdings generate a 32% return vs. 29% for the sector as a whole. In technology, gains in Progress Software and NetLogic Microsystems of 61% and 70%, respectively, helped that sector outpace the index, gaining 38% for the fund vs. 36% for the index. Smith Micro Software was also a big contributor to the fund. The company continued to execute on the opportunity for embedded software that helps manage the increasingly complex wireless network infrastructure. Finally, the industrial sector was a source of relative strength for the fund. Companies like BE Aerospace and Interface were up dramatically as their businesses found some stability and their managements took the opportunity to acquire new businesses or streamline operations.
What did not work for the fund and why?
Energy, financials, and healthcare were the three underperforming sectors for the fund, each being down more than 1% for the fiscal year. In energy, GMX Resources and Comstock Resources – two exploration and production companies that are heavily levered to the Haynesville shale natural gas fields – were poor performers. Natural gas supply has been extremely robust this year even though the commodity price has been very weak. This was especially problematic for these two companies as their gas production is on a higher cost basis than other companies. In financials, the fund was less interested in the real estate investment trust (REIT) industry as the slow economy and high unemployment rate continued to hurt occupancy and rental rates. This tough operating environment did not hold back REITs from performing well as their operations stabilized at this lower level and the low interest rates improved their ability to purchase more assets at reasonable prices. Healthcare was hurt by the fund’s investment in Amedisys, a home healthcare service company. The stock came under pressure as the government increased its scrutiny on the home healthcare industry and began looking at how it was incentivizing these companies through its payment schedule.
What strategic moves were made by the fund and why?
We continued to keep the fund well diversified* and to execute our discipline of buying good companies with good valuations. We did not materially change the fund’s positioning as the economic growth of the United States continued on its moderate course. The fund’s sector weightings are very close to their index weights. Early in the year, we sold several of the fund’s financial holdings, including TCF Bank and East West Bancorp, as they were valued much higher and hit their price targets. We have also been adding to cyclical ideas in the industrial space. We continued to underweight the healthcare sector in part to buffer the fund from any adverse changes due to increased government involvement. Additionally, the fund continues to have good exposure to the energy sector as we believe the world’s economic conditions will continue to gradually improve.
* | Diversification does not assure a profit or protect against a loss in a declining market. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 43
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 16.27 | % | 2.10 | % | 5.62 | % | — | 3.45 | % | 0.38 | % | 4.69 | % | — | ||||||||||||||||||
Class B | 16.97 | % | 2.22 | % | 5.42 | % | — | 3.64 | % | 0.52 | % | 4.51 | % | — | ||||||||||||||||||
Class C | 20.99 | % | 2.49 | % | — | 7.90 | % | 7.60 | % | 0.75 | % | — | 7.34 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 22.98 | % | 3.26 | % | 6.21 | % | — | 9.46 | % | 1.52 | % | 5.29 | % | — | ||||||||||||||||||
Class B | 21.97 | % | 2.47 | % | 5.42 | % | — | 8.64 | % | 0.76 | % | 4.51 | % | — | ||||||||||||||||||
Class C | 21.99 | % | 2.49 | % | — | 7.90 | % | 8.60 | % | 0.75 | % | — | 7.34 | % | ||||||||||||||||||
Class R | 22.70 | % | 3.00 | % | 6.07 | % | — | 9.15 | % | 1.25 | % | 5.15 | % | — | ||||||||||||||||||
Class Y | 23.30 | % | 3.51 | % | 6.48 | % | — | 9.69 | % | 1.76 | % | 5.55 | % | — | ||||||||||||||||||
Russell 2000 Index3 | 26.58 | % | 3.07 | % | 4.89 | % | 7.98 | % | 13.35 | % | 1.60 | % | 4.00 | % | 7.58 | % | ||||||||||||||||
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 the maximum sales charges of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class B, Class C, Class R, and Class Y shares was 1.27%, 2.02%, 2.02%, 1.52%, and 1.02%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Small Cap Select Fund, Class A (NAV) | ![]() | $ | 18,272 | |||||
Small Cap Select Fund, Class A (POP) | ![]() | $ | 17,271 | |||||
Russell 2000 Index3 | ![]() | $ | 16,121 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 2000 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161615.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 small-cap index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. |
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. |
44 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Value Fund
Investment Objective: capital appreciation
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Small Cap Value Fund (the “fund”), Class Y shares, returned 25.43% for the fiscal year ended October 31, 2010 (Class A shares returned 25.15% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Value Index*, returned 24.43% for the same period.
How did market conditions affect stock market performance during the fiscal year?
The U.S. economy continued on its slow path to recovery during the fiscal year. Economic growth indicators appeared to stabilize, relieving persistent fears of a double-dip recession. However, the jobless rate continued to hold above 9%, marking the longest stretch above this rate on record. The sluggish nature of the recovery led the Federal Reserve to continue its stimulative fiscal positioning. Toward the end of the period, the Fed expanded its quantitative easing by committing to buy up Treasury bonds in the hopes of driving investors to purchase riskier asset classes such as corporate debt and equities. Inflation data during the period remained very subdued; however, oil and broader commodity prices jumped sharply toward the end of the fiscal year in anticipation of the Fed’s further easing. Higher energy, commodity, and import prices are unlikely to materially change the underlying inflation trend unless they push wage and compensation rates higher, an unlikely development with the unemployment rate holding at the current high level.
U.S. equity markets posted excellent returns for the fiscal year, continuing their rebound from the 2008-2009 drop. However, the strong overall results masked several bouts of significant volatility during the period. At various times throughout the year, unfavorable data regarding employment, housing, and consumer spending weighed on the markets as did unrelenting negative headlines about regulatory action against financial firms, the Gulf of Mexico oil spill, and political posturing regarding financial reform. Midway through the fiscal year, markets plunged in response to concerns over the sovereign debt situation in Southern Europe and a potential major slowdown in China. Then on May 6th the equity markets experienced a “flash crash” with the Dow Jones Industrials Average falling nearly 1,000 points in a matter of minutes for no apparent fundamental reason. In the end, however, equity markets showed resilience, shrugging off these events. Markets advanced significantly as investors focused on positive news, including strong corporate earnings reports, improved U.S. economic growth indicators, and the Federal Reserve’s stimulative positioning.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
Buckeye Technologies | 1 | .8 | % | ||
Affiliated Managers Group | 1 | .8 | |||
First American Prime Obligations Fund, Class Z | 1 | .7 | |||
DiamondRock Hospitality | 1 | .7 | |||
Berry Petroleum, Class A | 1 | .7 | |||
TTM Technologies | 1 | .6 | |||
Atlas Air Worldwide Holdings | 1 | .6 | |||
GrafTech International | 1 | .5 | |||
Interface, Class A | 1 | .5 | |||
Triumph Group | 1 | .5 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 28 | .9 | % | ||
Industrials | 16 | .2 | |||
Information Technology | 14 | .1 | |||
Consumer Discretionary | 12 | .8 | |||
Energy | 7 | .3 | |||
Materials | 6 | .8 | |||
Healthcare | 5 | .5 | |||
Utilities | 3 | .6 | |||
Telecommunication Services | 1 | .3 | |||
Consumer Staples | 0 | .7 | |||
Exchange-Traded Fund | 0 | .7 | |||
Short-Term Investment | 1 | .7 | |||
Other Assets & Liabilities, Net2 | 0 | .4 | |||
100 | .0 | % | |||
1 | Fund holdings and sector allocations are subject to change at any time and are not recommendations to buy or sell any security. |
2 | Investments typically comprise substantially all of the fund’s net assets. Other assets and liabilities include receivables for items such as income earned but not yet received and payables for items such as fund expenses incurred but not yet paid. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 45
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Small Cap Value Fund
What worked for the fund and why?
The fund’s performance was primarily driven by solid, bottom-up stock selection across most of the sectors. From a top-down perspective, the fund’s pro-cyclical tilt also benefited results, including overweights relative to the benchmark in the materials, consumer discretionary, industrial, and information technology sectors. Our underweight stance in financials and consumer staples also helped as those sectors underperformed during the period. The top contributors to the fund during the fiscal year included: Atlas Air Worldwide Holdings, a leading global provider of air cargo solutions; Buckeye Technologies, a manufacturer of specialty paper products and fluff pulp; Interface, a global manufacturer of floor covering products; Complete Production Services, a leading provider of oil and gas well completion/production services; and Sally Beauty Holdings, a leading distributor and retailer of beauty supplies. Generally speaking, the common characteristic of the above-mentioned companies was solid market positioning, which allowed for top-line growth and margin expansion in an overall economic recovery. For example, Atlas Air Worldwide and Interface both benefited from continued strength in their core international markets. Buckeye Technologies’ positioning in strong sub-markets of the overall paper industry — in conjunction with management’s cost containment efforts — allowed the company to de-lever its balance sheet. Complete Production Services’ state-of-the-art positioning in both equipment and manpower enabled solid margin expansion as it continued to grow with leading domestic energy producers. Finally, Sally Beauty Holdings was able to demonstrate above-industry organic growth in an otherwise difficult domestic economy because of its focused marketing strategy.
What did not work for the fund and why?
The primary detractor during the fiscal year was stock selection in the healthcare sector, combined with modest underperformance from several holdings in the financial and utility sectors relative to the benchmark. Within healthcare, the fund was hindered by a lack of representation in the pharmaceutical industry. From a stock specific standpoint, Res-Care — a leading provider of care and services for people with developmental disabilities — was negatively impacted by impaired funding sources as state budgets became stressed. Additional detractors for the fund included Piper Jaffray, a leading middle-market investment bank; Kirkland’s, a specialty retailer of home décor and gifts; Sterling Construction, a civil engineering contractor primarily focused in Texas, Utah, and Nevada; and United Online, a branded provider of consumer products and social networking services. In general, these companies were hurt by continued sluggishness in their respective domestic markets.
What strategic moves were made by the fund and why?
From a sector positioning standpoint, we did not make any major changes to the fund over the course of the fiscal year as we continued to favor a pro-cyclical tilt. As the period progressed, we tilted the fund’s holdings in favor of larger, more liquid investments.
Our bottom-up portfolio construction process, in conjunction with careful consideration of the status of the business cycle recovery phase, continues to favor more pro-cyclical tilt. The fund is, therefore, overweight relative to the benchmark in sectors whose performance is closely linked to the business cycle, such as information technology, consumer discretionary, and industrials. The fund also has a modest overweight in the commodity-oriented materials and energy segments. We believe these sectors are well positioned now that the economic environment has shifted from recession toward stabilization and recovery. We continue to underweight financials, consumer staples, and utilities relative to the benchmark.
Building a well-diversified* portfolio of small-cap stocks with strengthening balance sheets and free cash flow characteristics remains our focus. We continue to target companies that can gain market share opportunistically in the current environment with sound business models and a strong competitive advantage. We remain committed to our approach of investing in quality companies that are trading at a discount to both intrinsic and relative value metrics.
* | Diversification does not assure a profit or protect against a loss in a declining market. |
46 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Annual Performance1,2 as of October 31, 2010
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 18.24 | % | 0.79 | % | 5.51 | % | — | 3.93 | % | (0.99 | )% | 4.71 | % | — | ||||||||||||||||||
Class C | 23.21 | % | 1.17 | % | 5.31 | % | — | 8.07 | % | (0.61 | )% | 4.52 | % | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 25.15 | % | 1.93 | % | 6.11 | % | — | 9.96 | % | 0.14 | % | 5.30 | % | — | ||||||||||||||||||
Class C | 24.21 | % | 1.17 | % | 5.31 | % | — | 9.07 | % | (0.61 | )% | 4.52 | % | — | ||||||||||||||||||
Class R | 24.85 | % | 1.69 | % | — | 7.67 | % | 9.72 | % | (0.09 | )% | — | 7.02 | % | ||||||||||||||||||
Class Y | 25.43 | % | 2.17 | % | 6.36 | % | — | 10.24 | % | 0.39 | % | 5.56 | % | — | ||||||||||||||||||
Russell 2000 Value Index3 | 24.43 | % | 2.02 | % | 8.16 | % | 8.74 | % | 11.84 | % | 0.73 | % | 7.72 | % | 8.37 | % | ||||||||||||||||
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge of 1.00% for Class C shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future.
As of the most recent prospectus, the fund’s total annual operating expense ratio, including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class C, Class R, and Class Y shares was 1.38%, 2.13%, 1.63%, and 1.13%, respectively.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Small Cap Value Fund, Class A (NAV) | ![]() | $ | 18,096 | |||||
Small Cap Value Fund, Class A (POP) | ![]() | $ | 17,102 | |||||
Russell 2000 Value Index3 | ![]() | $ | 21,921 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 2000 Value Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161616.gif)
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 were in effect during the periods indicated. 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 measures the performance of those companies within the Russell 2000 Index (small-cap index) with lower price-to-book ratios and lower forecasted growth values. |
4 | Performance for Class C, Class R, 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 47
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Tactical Market Opportunities Fund
How did the fund perform during the period from December 31, 2009, through October 31, 2010?
The First American Tactical Market Opportunities Fund (the “fund”), Class Y shares, returned 6.20% for the fiscal period ended October 31, 2010. By comparison, the fund’s benchmark, the Bank of America Merrill Lynch 3-Month Treasury Bill Index*, returned 0.10% for the same period.
How did market conditions affect market performance during the fiscal year?
International stock market returns over the 12-month period were generally strong, continuing last year’s recovery from the 2008-2009 global crash. As was the case last year, emerging economies’ gains were higher. The MSCI Emerging Markets Index gained more than 21%, while the developed nation focused MSCI EAFE Index registered only a slight gain of 4%. The MSCI AC World Investable Market Index ex. U.S.A., which is comprised of approximately 80% developed and 20% emerging market nations, gained more than 8%.
These relatively good returns masked major shifts and concerns that arose during the fiscal year. The three most notable issues were: the struggles over deleveraging, particularly in the United States but also affecting economies in Europe; the related crisis with the euro as countries attempted to control sovereign debt in the face of lower economic activity; and high, export-led growth in emerging markets that threatened inflation and bubbles in their asset markets. For example, concerns about insolvency at European banks, and their governments’ inability to backstop them, caused the MSCI EAFE Index to drop more than 15% between January 1, 2010 and mid-May. During this same timeframe, the more buoyant MSCI Emerging Markets Index also experienced a decline. After that low point, most markets enjoyed steady growth as investors generally expressed confidence in nations’ ability to work out their imbalances without disruption. As we write this review in November, those beliefs are being tested anew.
In the bond market, market technicals continued to be extremely supportive as retail investors pushed more than $200 billion into taxable fixed-income funds of all types so far in 2010. This demand was a major driver of strong bond market returns, particularly since many broad sectors of the market experienced net negative issuance, creating a shortage of high-quality, fixed-income assets. Most spread sectors posted excellent returns for the fiscal year, with high-yield credit, investment-grade credit, and commercial mortgage-backed securities leading the pack. These sectors continued to demonstrate stable-to-improving credit fundamentals and were fueled by strong investor demand for higher yielding assets. On the other hand, agency mortgage-backed securities finally hit the wall because of high dollar prices on pass-through securities, prepayment fears due to lower mortgage rates and policy rumors, and net positive supply as new origination exceeded investor demand.
What worked for the fund and why?
The fund strategy consists of outperforming the BofA Merrill Lynch 3-Month Treasury Bill Index by 4% annually over a reasonable period of time while maintaining a lower volatility than the broad market. In order to achieve these objectives, we first consider the allocation between fixed income, equities, and cash. Other asset classes, such as currencies and commodities, are periodically held to take advantage of market opportunities or to further diversify** the fund.
Overall, the fund’s fixed-income component provided a significant contribution to performance during the fiscal period. Its fixed-income allocation generally consisted of long duration Treasuries as well as exchange-traded funds (ETFs) in various fixed-income sectors such as investment-grade credit, high-yield bonds, emerging market debt, mortgage-backed securities, and preferred stock. We also included short Treasury futures at the front end of the yield curve as a view on market rates and also as a hedge to other fixed-income securities.
The fund’s equity allocation included several long positions in index futures and ETFs that contributed positively to performance. For example, the fund benefited from long positions in China, Germany, the S&P 500, South Africa, and Russia. Additionally, the fund’s short position in Spain contributed favorably to performance.
What did not work for the fund and why?
In general, short equity positions detracted from performance over the time period, including short Russell 2000, Mexico, India, and Canada. Although these short positions underperformed, they were utilized as part of spread trades with other countries and do not necessarily reflect a negative outlook on the broad market. Rather, these spread trades are used to express a view of relative performance between countries while reducing the overall volatility of the fund.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
** | Diversification does not assure a profit or protect against a loss in a declining market. |
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What strategic moves were made by the fund and why?
As mentioned, the fixed-income component consisted of Treasuries and a variety of fixed-income ETFs representing various sectors such as investment-grade credit, high-yield bonds, mortgage-backed securities, emerging market debt, and preferred stock. These securities are held in various proportions at different times and are a primary component of the Tactical Market Opportunity Fund’s strategy. Throughout the year, we have slowly reduced the fund’s overall fixed-income exposure as rates have decreased and ETF prices have gone higher. ETF rotation within fixed income is an ongoing process to take advantage of market conditions, the outlook for fixed-income sectors, and relative yield advantages.
The equity component of the fund generally consists of long or short futures contracts as well as country and sector ETFs. While net equity exposure remains constrained, gross exposure is significant and reflects a view of relative country performance. These views are generally expressed with futures spread trades such as long emerging markets/short EAFE, long South Africa/short Mexico, long Germany/short Spain, and long China/short India to name a few. Other securities, such as high-yield and preferred stock ETFs, provide equity-like exposure yet are not included in the net and gross equity market value calculation. When evaluating the proper equity risk exposure, the weights of these fixed-income ETFs are considered. From a positioning perspective, the fund still has an emphasis on emerging markets and materials-producing countries as well as a short position in peripheral Europe.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 48.0 | % | ||
iShares Barclays 1-3 Year Credit Bond Fund | 13.0 | |||
U.S. Treasury Bond, 4.500%, 08/15/2039 | 10.8 | |||
iShares JPMorgan USD Emerging Markets Bond Fund | 5.6 | |||
iShares iBoxx $ High Yield Corporate Bond Fund | 5.4 | |||
iShares S&P U.S. Preferred Stock Index Fund | 4.9 | |||
iShares Barclays MBS Bond Fund | 4.0 | |||
U.S. Treasury Bill, 0.157%, 04/14/2011 | 3.8 | |||
Market Vectors Russia | 2.3 | |||
Utilities Select Sector SPDR | 1.1 | |||
Sector Allocation as of October 31, 20101 (% of net assets)
Exchange-Traded Funds | 36.3 | % | ||
U.S. Government & Agency Security | 10.8 | |||
Short-Term Investments | 53.1 | |||
Other Assets and Liabilities, Net2 | (0.2 | ) | ||
100.0 | % | |||
1 | Fund holdings and sector allocations are subject to change at anytime and are not recommendations to buy or sell any security. Allocations reflect the fund’s exposure to each sector through direct investments and do not reflect the impact on sector allocation of holding derivative instruments, such as futures contracts. See note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 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. |
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Tactical Market Opportunities Fund
Annual Performance1,2 as of October 31, 2010
October 31, 2010† | September 30, 2010*† | |||||||
Since Inception | Since Inception | |||||||
12/30/2009 | 12/30/2009 | |||||||
Average annual return without sales charge (NAV) | ||||||||
Class Y | 6.20 | % | 5.60 | % | ||||
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index 3 | 0.10 | % | 0.08 | % | ||||
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 and assume reinvestment of all distributions at NAV. |
As of the most recent prospectus, the fund’s total annual operating expense ratio (including acquired fund fees and expenses) for Class Y was 5.62%. The advisor has contractually agreed to waive fees and reimburse other fund expenses through at least February 28, 2011 so that total annual fund operating expenses (after all waivers and excluding acquired fund fees and expenses) for Class Y does not exceed 0.95%. These fee waivers and expense reimbursements may be terminated at any time after February 28, 2011, 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. There is no guarantee that the fund will achieve its investment objectives. The advisor’s asset allocation decisions may be incorrect and could adversely affect fund performance. The fund is exposed to the risks of the underlying securities held by an exchange-traded fund (ETF) and bears its proportionate share of the ETF’s expenses. Derivative investing may involve a high degree of financial risk, including the risk that the loss on a derivative may be greater than the principal amount invested. The use of leverage through the use of derivatives may magnify this risk. Foreign investing, especially in emerging markets, entails additional risks, including currency fluctuations, political and economic instability, accounting changes, and foreign taxation. Debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Lower-rated and nonrated securities present a greater risk of loss to principal and interest than higher-rated securities. Commodity prices may be highly volatile and are affected by factors such as changes in demand, disruption in supply, and hedging and trading strategies of other market participants. Each of these asset classes may be less liquid and more volatile.
† | Returns not annualized |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,3 as of October 31, 2010
Tactical Market Opportunities Fund, Class Y | ![]() | $ | 10,620 | |||||
Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index3 | ![]() | $ | 10,010 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class Y shares (from 12/30/2009 to 10/31/2010) as compared to the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161617.gif)
2 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects voluntary fee waivers 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 Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index is comprised of a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month. At the end of the month, that issue is sold and rolled into a newly selected issue. |
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Expense Examples
Expense Example
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 May 1, 2010 to October 31, 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 these 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.
Equity Income Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,011.40 | $ | 5.78 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.46 | $ | 5.80 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,008.10 | $ | 9.57 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.68 | $ | 9.60 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,008.10 | $ | 9.57 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.68 | $ | 9.60 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,010.70 | $ | 6.99 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 7.02 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,012.50 | $ | 4.51 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.72 | $ | 4.53 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.14%, 1.89%, 1.89%, 1.38%, and 0.89% 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 October 31, 2010 of 1.14%, 0.81%, 0.81%, 1.07%, and 1.25% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
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Expense Examples
Global Infrastructure Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,114.80 | $ | 6.66 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,110.80 | $ | 10.64 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | $ | 10.16 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,113.70 | $ | 7.99 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,115.60 | $ | 5.33 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.25%, 2.00%, 1.50%, and 1.00% 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 October 31, 2010 of 11.48%, 11.08%, 11.37%, and 11.56% for Class A, Class C, Class R, and Class Y, respectively. |
International Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,014.80 | $ | 7.52 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.74 | $ | 7.53 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,010.50 | $ | 11.30 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.96 | $ | 11.32 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,011.00 | $ | 11.30 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.96 | $ | 11.32 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,013.10 | $ | 8.78 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.48 | $ | 8.79 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,016.40 | $ | 6.25 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.48%, 2.23%, 2.23%, 1.73%, and 1.23% 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). |
4 | Based on the actual returns for the six-month period ended October 31, 2010 of 1.48%, 1.05%, 1.10%, 1.31%, and 1.64% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
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International Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,048.40 | $ | 7.69 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,044.30 | $ | 11.49 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,013.96 | $ | 11.32 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,047.50 | $ | 8.98 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.43 | $ | 8.84 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,050.50 | $ | 6.41 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.49%, 2.23%, 1.74%, and 1.24% 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 October 31, 2010 of 4.84%, 4.43%, 4.75%, and 5.05% for Class A, Class C, Class R and Class Y, respectively. |
Large Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 1,066.30 | $ | 6.20 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.21 | $ | 6.06 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 1,062.20 | $ | 10.08 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.86 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 1,062.30 | $ | 10.08 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.43 | $ | 9.86 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 1,065.00 | $ | 7.50 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.95 | $ | 7.32 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,067.80 | $ | 4.90 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.47 | $ | 4.79 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.19%, 1.94%, 1.94%, 1.44%, and 0.94% 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). |
4 | Based on the actual returns for the six-month period ended October 31, 2010 of 6.63%, 6.22%, 6.23%, 6.50%, and 6.78% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 53
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Expense Examples
Large Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 993.20 | $ | 6.68 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.50 | $ | 6.77 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 989.40 | $ | 10.43 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.72 | $ | 10.56 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 991.40 | $ | 7.93 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.24 | $ | 8.03 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 994.10 | $ | 5.43 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.76 | $ | 5.50 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.33%, 2.08%, 1.58%, and 1.08% 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 October 31, 2010 of -0.68%, -1.06%, -0.86%, and -0.59% for Class A, Class C, Class R, and Class Y, respectively. |
Large Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 970.20 | $ | 6.16 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 966.90 | $ | 9.87 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.17 | $ | 10.11 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 966.10 | $ | 9.86 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.17 | $ | 10.11 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 968.70 | $ | 7.44 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.64 | $ | 7.63 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 971.70 | $ | 4.92 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.24%, 1.99%, 1.99%, 1.50%, and 0.99% 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). |
4 | Based on the actual returns for the six-month period ended October 31, 2010 of -2.98%, -3.31%, -3.39%, -3.13%, and -2.83% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
54 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Mid Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,076.90 | $ | 6.44 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,073.00 | $ | 10.35 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.22 | $ | 10.06 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,072.80 | $ | 10.34 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.22 | $ | 10.06 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,075.60 | $ | 7.69 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.48 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,078.30 | $ | 5.13 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.27 | $ | 4.99 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.23%, 1.98%, 1.98%, 1.47%, and 0.98% 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 October 31, 2010 of 7.69%, 7.30%, 7.28%, 7.56%, and 7.83% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Mid Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual3 | $ | 1,000.00 | $ | 998.90 | $ | 7.10 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 7.17 | ||||||
Class B Actual3 | $ | 1,000.00 | $ | 995.00 | $ | 10.86 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.32 | $ | 10.97 | ||||||
Class C Actual3 | $ | 1,000.00 | $ | 994.20 | $ | 10.86 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.32 | $ | 10.97 | ||||||
Class Y Actual3 | $ | 1,000.00 | $ | 1,000.00 | $ | 5.85 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.36 | $ | 5.90 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.41%, 2.16%, 2.16%, and 1.16% for Class A, Class B, 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 October 31, 2010 of -0.11%, -0.50%, -0.58%, and 0.00% for Class A, Class B, Class C, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 55
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Expense Examples
Mid Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,000.90 | $ | 6.30 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 997.10 | $ | 10.07 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | $ | 10.16 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 997.20 | $ | 10.07 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | $ | 10.16 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,000.00 | $ | 7.51 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,002.70 | $ | 5.05 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.25%, 2.00%, 2.00%, 1.49%, and 1.00% 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 October 31, 2010 of 0.09%, -0.29%, -0.28%, 0.00%, and 0.27% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Quantitative Large Cap Core Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 999.00 | $ | 3.53 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.68 | $ | 3.57 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 995.60 | $ | 7.29 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.90 | $ | 7.37 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 1,001.00 | $ | 2.27 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.94 | $ | 2.29 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.70%, 1.45%, and 0.45% 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 October 31, 2010 of -0.10%, -0.44%, and 0.10% for Class A, Class C, and Class Y, respectively. |
56 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Real Estate Securities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/2010 to | ||||||||||
Value (5/01/2010) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,073.80 | $ | 6.53 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,069.40 | $ | 10.38 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.17 | $ | 10.11 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,069.80 | $ | 10.43 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.12 | $ | 10.16 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,072.60 | $ | 7.73 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.74 | $ | 7.53 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,074.90 | $ | 5.23 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.25%, 1.99%, 2.00%, 1.48%, and 1.00% 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 October 31, 2010 of 7.38%, 6.94%, 6.98%, 7.26%, and 7.49% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Growth Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 991.70 | $ | 7.38 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.48 | ||||||
Class B Actual4 | $ | 1,000.00 | $ | 988.10 | $ | 11.12 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.01 | $ | 11.27 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 988.10 | $ | 11.12 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.01 | $ | 11.27 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 990.50 | $ | 8.63 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.53 | $ | 8.74 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 993.20 | $ | 6.13 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.06 | $ | 6.21 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.47%, 2.22%, 2.22%, 1.72%, and 1.22% 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). |
4 | Based on the actual returns for the six-month period ended October 31, 2010 of -0.83%, -1.19%, -1.19%, -0.95%, and -0.68% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 57
Table of Contents
Expense Examples
Small Cap Select Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 986.50 | $ | 6.21 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 982.00 | $ | 9.94 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.17 | $ | 10.11 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 983.40 | $ | 9.95 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.17 | $ | 10.11 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 985.40 | $ | 7.41 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.74 | $ | 7.53 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 988.40 | $ | 4.96 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.24%, 1.99%, 1.99%, 1.48%, and 0.99% 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 October 31, 2010 of -1.35%, -1.80%, -1.66%, -1.46%, and -1.16% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
Small Cap Value Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 973.40 | $ | 6.67 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.82 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 969.10 | $ | 10.37 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.67 | $ | 10.61 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 972.10 | $ | 7.85 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.24 | $ | 8.03 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 973.20 | $ | 5.42 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.34%, 2.09%, 1.58%, and 1.09% 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 October 31, 2010 of -2.66%, -3.09%, -2.79%, and -2.68% for Class A, Class C, Class R, and Class Y, respectively. |
Tactical Market Opportunities Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period5 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class Y Actual6 | $ | 1,000.00 | $ | 1,048.40 | $ | 4.70 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.62 | $ | 4.63 | ||||||
5 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.91% for Class Y, 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 October 31, 2010 of 4.84% for Class Y. |
58 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
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 of the Equity Income, Global Infrastructure, International, International Select, Large Cap Growth Opportunities, Large Cap Select, Large Cap Value, Mid Cap Growth Opportunities, Mid Cap Select, Mid Cap Value, Quantitative Large Cap Core, Real Estate Securities, Small Cap Growth Opportunities, Small Cap Select, Small Cap Value, and Tactical Market Opportunity Funds (series of First American Investment Fund, Inc.) (collectively, the “funds”), including the schedule of investments, as of October 31, 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 October 31, 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 October 31, 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.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616ernstyo.gif)
Minneapolis, Minnesota
December 23, 2010
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 59
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Equity Income Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 98.1% | ||||||||
Consumer Discretionary – 12.3% | ||||||||
Brunswick 6 | 316,324 | $ | 5,004 | |||||
Darden Restaurants 6 | 231,009 | 10,559 | ||||||
Foot Locker 6 | 672,300 | 10,710 | ||||||
Hasbro | 281,882 | 13,037 | ||||||
Home Depot | 366,137 | 11,306 | ||||||
J.C. Penney | 123,819 | 3,861 | ||||||
Mattel 6 | 283,623 | 6,617 | ||||||
McDonald’s | 158,917 | 12,359 | ||||||
Thomson Reuters 6 | 156,343 | 5,980 | ||||||
Whirlpool 6 | 121,809 | 9,237 | ||||||
Yum! Brands | 270,951 | 13,429 | ||||||
102,099 | ||||||||
Consumer Staples – 7.0% | ||||||||
Altria Group | 328,835 | 8,359 | ||||||
ConAgra Foods | 239,485 | 5,386 | ||||||
Kraft Foods, Class A 6 | 378,535 | 12,215 | ||||||
Philip Morris International | 194,939 | 11,404 | ||||||
Sysco 6 | 334,855 | 9,865 | ||||||
Unilever 6 | 358,714 | 10,650 | ||||||
57,879 | ||||||||
Energy – 11.6% | ||||||||
Anadarko Petroleum 6 | 144,358 | 8,888 | ||||||
Chesapeake Energy 6 | 83,509 | 1,812 | ||||||
Chevron | 280,138 | 23,143 | ||||||
ConocoPhillips | 319,220 | 18,962 | ||||||
Enbridge Energy Partners 6 | 29,542 | 1,817 | ||||||
Exterran Partners 6 | 296,886 | 6,920 | ||||||
Exxon Mobil | 326,181 | 21,681 | ||||||
Total – ADR 6 | 230,732 | 12,570 | ||||||
95,793 | ||||||||
Financials – 15.2% | ||||||||
Aflac | 182,836 | 10,219 | ||||||
Annaly Capital Management – REIT 6 | 484,758 | 8,585 | ||||||
Astoria Financial 6 | �� | 541,900 | 6,730 | |||||
Bank of America | 1,037,517 | 11,869 | ||||||
DCT Industrial Trust – REIT 6 | 335,670 | 1,682 | ||||||
Fifth Third Bancorp 6 | 449,720 | 5,648 | ||||||
Goldman Sachs Group 6 | 52,908 | 8,516 | ||||||
JPMorgan Chase | 347,854 | 13,090 | ||||||
KeyCorp | 510,586 | 4,182 | ||||||
Liberty Property Trust – REIT | 117,008 | 3,915 | ||||||
Mid-America Apartment Communities – REIT | 91,449 | 5,581 | ||||||
National Retail Properties – REIT | 165,292 | 4,479 | ||||||
Old Republic International 6 | 640,528 | 8,455 | ||||||
Prudential Financial 6 | 124,618 | 6,552 | ||||||
Redwood Trust – REIT 6 | 274,660 | 3,895 | ||||||
Regions Financial 6 | 839,099 | 5,286 | ||||||
SunTrust Banks | 232,337 | 5,813 | ||||||
Ventas – REIT 6 | 83,760 | 4,486 | ||||||
Wells Fargo | 259,305 | 6,763 | ||||||
125,746 | ||||||||
Healthcare – 9.0% | ||||||||
Abbott Laboratories | 279,359 | 14,337 | ||||||
Bristol-Myers Squibb | 661,437 | 17,793 | ||||||
Covidien | 202,257 | 8,064 | ||||||
Johnson & Johnson | 232,510 | 14,804 | ||||||
McKesson | 57,312 | 3,781 | ||||||
Pfizer 6 | 724,147 | 12,600 | ||||||
Teva Pharmaceutical Industries – ADR 6 | 65,603 | 3,405 | ||||||
74,784 | ||||||||
Industrials – 11.9% | ||||||||
3M 6 | 161,946 | $ | 13,639 | |||||
Boeing | 106,320 | 7,510 | ||||||
Emerson Electric 6 | 157,557 | 8,649 | ||||||
General Dynamics | 102,451 | 6,979 | ||||||
General Electric | 1,099,012 | 17,606 | ||||||
Hubbell, Class B | 116,115 | 6,273 | ||||||
Manpower 6 | 156,674 | 8,575 | ||||||
Textron 6 | 379,530 | 7,902 | ||||||
United Parcel Service, Class B 6 | 120,200 | 8,094 | ||||||
United Technologies | 174,568 | 13,053 | ||||||
98,280 | ||||||||
Information Technology – 14.7% | ||||||||
Analog Devices 6 | 312,191 | 10,511 | ||||||
Applied Materials 6 | 656,012 | 8,108 | ||||||
Automatic Data Processing | 185,460 | 8,238 | ||||||
Intel | 702,867 | 14,108 | ||||||
MasterCard, Class A | 36,439 | 8,748 | ||||||
Maxim Integrated Products 6 | 517,519 | 11,209 | ||||||
Microsoft | 636,431 | 16,955 | ||||||
Molex, Class A | 369,127 | 6,301 | ||||||
Oracle 6 | 319,398 | 9,390 | ||||||
Paychex | 116,023 | 3,214 | ||||||
QUALCOMM | 244,987 | 11,056 | ||||||
Texas Instruments | 321,691 | 9,512 | ||||||
Visa, Class A 6 | 54,474 | 4,258 | ||||||
121,608 | ||||||||
Materials – 6.5% | ||||||||
E.I. Du Pont de Nemours | 207,991 | 9,833 | ||||||
Freeport-McMoRan Copper & Gold 6 | 105,556 | 9,994 | ||||||
Huntsman | 603,292 | 8,356 | ||||||
PPG Industries | 116,854 | 8,963 | ||||||
Praxair 6 | 95,641 | 8,736 | ||||||
Weyerhaeuser | 476,948 | 7,736 | ||||||
53,618 | ||||||||
Telecommunication Services – 5.9% | ||||||||
AT&T | 443,236 | 12,632 | ||||||
CenturyLink 6 | 272,880 | 11,292 | ||||||
Qwest Communications International 6 | 2,011,497 | 13,276 | ||||||
Windstream 6 | 893,064 | 11,306 | ||||||
48,506 | ||||||||
Utilities – 4.0% | ||||||||
American Electric Power | 94,897 | 3,553 | ||||||
CenterPoint Energy 6 | 460,478 | 7,626 | ||||||
PNM Resources | 664,861 | 7,839 | ||||||
Westar Energy 6 | 543,783 | 13,757 | ||||||
32,775 | ||||||||
Total Common Stocks | ||||||||
(Cost $622,177) | 811,088 | |||||||
The accompanying notes are an integral part of the financial statements.
60 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Equity Income Fund (concluded) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Short-Term Investment – 2.0% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $16,709) | 16,709,221 | $ | 16,709 | |||||
Investment Purchased with Proceeds from Securities Lending – 27.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $224,304) | 224,304,109 | 224,304 | ||||||
Total Investments 5 – 127.2% | ||||||||
(Cost $863,190) | 1,052,101 | |||||||
Other Assets and Liabilities, Net – (27.2)% | (224,985 | ) | ||||||
Total Net Assets – 100.0% | $ | 827,116 | ||||||
> | 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 October 31, 2010. Total loaned securities had a fair value of $216,824 at October 31, 2010. 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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $863,148. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 206,044 | ||
Gross unrealized depreciation | (17,091 | ) | ||
Net unrealized appreciation | $ | 188,953 | ||
ADR – | American Depositary Receipt |
REIT – | Real Estate Investment Trust |
Global Infrastructure Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 98.8% | ||||||||
Australia – 8.6% | ||||||||
APA Group | 203,100 | $ | 777 | |||||
Asciano Group = | 1,881,820 | 2,891 | ||||||
Australian Infrastructure Fund | 426,417 | 827 | ||||||
DUET Group | 583,896 | 995 | ||||||
Macquarie Atlas Roads Group = | 70,963 | 101 | ||||||
MAp Group | 579,503 | 1,732 | ||||||
Spark Infrastructure Group | 1,188,677 | 1,304 | ||||||
Transurban Group | 901,800 | 4,614 | ||||||
13,241 | ||||||||
Austria – 0.7% | ||||||||
Flughafen Wien | 17,047 | 1,057 | ||||||
Belgium – 0.4% | ||||||||
Elia System Operator – VVPR Strips = | 3,039 | 1 | ||||||
Elia System Operator | 15,195 | 575 | ||||||
576 | ||||||||
Brazil – 4.0% | ||||||||
All America Latina Logistica | 50,948 | 485 | ||||||
Companhia de Gas de Sao Paulo, Class A | 45,797 | 978 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo – ADR | 9,150 | 420 | ||||||
Companhia de Saneamento de Minas Gerais | 27,354 | 420 | ||||||
Companhia de Transmissao de Energia Electrica Paulista | 50,442 | 1,572 | ||||||
Companhia Energetica do Ceara – Coelce, Class A | 41,776 | 692 | ||||||
CPFL Energia – ADR | 91 | 6 | ||||||
EcoRodovias Infraestructura e Logistica = | 63,386 | 481 | ||||||
Energias do Brasil | 28,448 | 624 | ||||||
Light | 11,719 | 148 | ||||||
Santos Brasil Participacoes | 6,664 | 90 | ||||||
Wilson Sons – BDR | 16,554 | 282 | ||||||
6,198 | ||||||||
Canada – 6.0% | ||||||||
ATCO, Class I | 1,147 | 59 | ||||||
Boralex, Class A = | 16,315 | 134 | ||||||
Brookfield Renewable Power Fund | 13,888 | 293 | ||||||
Canadian Utilities, Class A | 14,942 | 718 | ||||||
Enbridge | 84,340 | 4,672 | ||||||
IESI-BFC | 52,153 | 1,219 | ||||||
TransCanada | 55,942 | 2,067 | ||||||
9,162 | ||||||||
Chile – 0.1% | ||||||||
Enersis – ADR | 8,052 | 184 | ||||||
China – 1.1% | ||||||||
China Suntien Green Energy, Class H = | 1,599,197 | 538 | ||||||
Dalian Port, Class H | 319,584 | 138 | ||||||
Jiangsu Expressway, Class H | 654,030 | 793 | ||||||
Zhejiang Expressway, Class H | 202,460 | 205 | ||||||
1,674 | ||||||||
Denmark – 0.3% | ||||||||
AP Moller – Maersk, Class B | 47 | 408 | ||||||
France – 6.6% | ||||||||
Aeroports de Paris | 27,514 | 2,338 | ||||||
Electricite de France | 15,290 | 701 | ||||||
Eutelsat Communications | 21,596 | 813 | ||||||
Rubis | 1,573 | 174 | ||||||
Seche Environnement | 2,004 | 162 | ||||||
Suez Environnement | 59,330 | 1,161 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 61
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Global Infrastructure Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Vinci | 88,657 | $ | 4,754 | |||||
10,103 | ||||||||
Germany – 0.7% | ||||||||
Fraport Frankfurt Airport | 16,797 | 1,066 | ||||||
Hong Kong – 9.1% | ||||||||
Beijing Capital International Airport, Class H | 963,267 | 533 | ||||||
Beijing Enterprises Holdings | 572,097 | 3,920 | ||||||
Beijing Enterprises Water Group = | 1,181,093 | 413 | ||||||
China Everbright International | 540,398 | 287 | ||||||
China Gas Holdings | 1,594,863 | 912 | ||||||
China Merchants Holdings International | 1,475,007 | 5,187 | ||||||
China Resources Gas Group | 343,086 | 510 | ||||||
China Water Affairs Group | 249,253 | 95 | ||||||
Guangdong Investment | 1,079,694 | 542 | ||||||
Hong Kong and China Gas | 417,335 | 1,008 | ||||||
Hopewell Highway Infrastructure | 11,684 | 9 | ||||||
MTR | 170,458 | 651 | ||||||
14,067 | ||||||||
India – 1.0% | ||||||||
GAIL India – GDR | 24,049 | 1,594 | ||||||
Italy – 2.5% | ||||||||
Atlantia | 7,120 | 163 | ||||||
Hera | 73,182 | 155 | ||||||
IREN | 89,537 | 157 | ||||||
SAVE | 50,983 | 496 | ||||||
Snam Rete Gas | 57,809 | 313 | ||||||
Terna-Rete Elettrica Nationale | 559,296 | 2,581 | ||||||
3,865 | ||||||||
Japan – 12.0% | ||||||||
Chubu Electric Power | 30,473 | 770 | ||||||
East Japan Railway | 47,700 | 2,946 | ||||||
Japan Airport Terminal | 89,729 | 1,472 | ||||||
Kamigumi | 286,038 | 2,234 | ||||||
Kansai Electric Power | 42,668 | 1,080 | ||||||
Mitsubishi Logistics | 39,460 | 477 | ||||||
Park24 | 135,629 | 1,310 | ||||||
Toho Gas | 245,367 | 1,293 | ||||||
Tokyo Electric Power | 195,495 | 4,668 | ||||||
Tokyo Gas | 461,021 | 2,169 | ||||||
18,419 | ||||||||
Luxembourg – 2.1% | ||||||||
SES | 124,119 | 3,187 | ||||||
Mexico – 0.2% | ||||||||
Empresas ICA – ADR = | 30,217 | 319 | ||||||
Netherlands – 0.9% | ||||||||
Koninklijke Vopak | 26,521 | 1,327 | ||||||
New Zealand – 1.5% | ||||||||
Auckland International Airport | 139,889 | 224 | ||||||
Contact Energy | 88,619 | 396 | ||||||
Infratil | 122,071 | 171 | ||||||
Port of Tauranga | 217,723 | 1,236 | ||||||
Vector | 148,861 | 276 | ||||||
2,303 | ||||||||
Norway – 0.2% | ||||||||
Hafslund, Class B | 33,585 | 373 | ||||||
Portugal – 0.6% | ||||||||
Brisa Auto-Estradas de Portugal | 124,344 | 942 | ||||||
Singapore – 9.9% | ||||||||
CitySpring Infrastructure Trust | 839,606 | 397 | ||||||
ComfortDelGro | 2,803,286 | 3,216 | ||||||
Hyflux | 1,282,787 | $ | 3,131 | |||||
Parkway Life – REIT | 373,423 | 482 | ||||||
SembCorp Industries | 582,215 | 2,066 | ||||||
Singapore Airport Terminal Services | 858,445 | 1,893 | ||||||
Singapore Post | 1,434,482 | 1,308 | ||||||
Singapore Telecommunications | 443,028 | 1,062 | ||||||
SMRT | 1,023,851 | 1,625 | ||||||
15,180 | ||||||||
Spain – 3.0% | ||||||||
Abertis Infraestructuras | 143,122 | 2,830 | ||||||
Enagas | 78,211 | 1,725 | ||||||
4,555 | ||||||||
Switzerland – 1.4% | ||||||||
BKW FMB Energie | 6,601 | 450 | ||||||
Flughafen Zuerich | 4,691 | 1,729 | ||||||
2,179 | ||||||||
United Kingdom – 4.9% | ||||||||
Centrica | 332,609 | 1,770 | ||||||
Forth Ports | 1,094 | 23 | ||||||
National Grid – ADR | 10,002 | 475 | ||||||
Pennon Group | 39,053 | 390 | ||||||
Scottish & Southern Energy | 137,905 | 2,548 | ||||||
Serco Group | 28,419 | 280 | ||||||
Severn Trent | 54,495 | 1,218 | ||||||
United Utilities Group | 92,702 | 908 | ||||||
7,612 | ||||||||
United States – 21.0% | ||||||||
AGL Resources | 1,914 | 75 | ||||||
American Electric Power | 21,050 | 788 | ||||||
American Tower, Class A = | 35,353 | 1,825 | ||||||
Atmos Energy | 396 | 12 | ||||||
California Water Service Group | 20,464 | 764 | ||||||
Chesapeake Utilities | 3,151 | 116 | ||||||
Connecticut Water Service | 4,343 | 106 | ||||||
Coresite Realty – REIT = | 36,634 | 552 | ||||||
Crown Castle International = | 80,024 | 3,451 | ||||||
Digital Realty Trust – REIT | 22,600 | 1,350 | ||||||
DuPont Fabros Technology – REIT | 12,342 | 310 | ||||||
ITC Holdings | 26,179 | 1,639 | ||||||
Kinder Morgan Management | 7,044 | 434 | ||||||
Middlesex Water | 3,687 | 66 | ||||||
New Jersey Resources | 1,284 | 52 | ||||||
NextEra Energy | 22,630 | 1,245 | ||||||
Niska Gas Storage Partners | 5,560 | 111 | ||||||
NiSource | 48,442 | 838 | ||||||
Northeast Utilities | 14,541 | 455 | ||||||
Questar | 45,267 | 768 | ||||||
Republic Services | 160,444 | 4,783 | ||||||
SBA Communications, Class A = | 32,813 | 1,288 | ||||||
Sempra Energy | 65,493 | 3,503 | ||||||
SJW | 10,230 | 248 | ||||||
Southern Union | 48,988 | 1,231 | ||||||
Spectra Energy | 178,239 | 4,237 | ||||||
Standard Parking = | 69,911 | 1,195 | ||||||
Unitil | 14,054 | 305 | ||||||
Williams | 15,911 | 342 | ||||||
Xcel Energy | 9,533 | 227 | ||||||
32,316 | ||||||||
Total Common Stocks | ||||||||
(Cost $138,395) | 151,907 | |||||||
The accompanying notes are an integral part of the financial statements.
62 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Global Infrastructure Fund (concluded) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Short-Term Investment – 0.6% | ||||||||
State Street Institutional Liquid Reserves Fund | ||||||||
0.220% Ω | ||||||||
(Cost $901) | 900,924 | $ | 901 | |||||
Total Investments 5 – 99.4% | ||||||||
(Cost $139,296) | 152,808 | |||||||
Other Assets and Liabilities, Net – 0.6% | 877 | |||||||
Total Net Assets – 100.0% | $ | 153,685 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Ω | The rate shown is the annualized seven-day effective yield as of October 31, 2010. | |
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $140,470. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 13,427 | ||
Gross unrealized depreciation | (1,089 | ) | ||
Net unrealized appreciation | $ | 12,338 | ||
ADR – | American Depositary Receipt |
BDR – | Brazilian Depositary Receipt |
GDR – | Global Depositary Receipt |
REIT – | Real Estate Investment Trust |
At October 31, 2010, sector diversification of the fund was as follows:
% of Net Assets | Fair Value | |||||||
Common Stocks | ||||||||
Industrials* | 43.9 | % | $ | 67,413 | ||||
Utilities* | 34.8 | 53,510 | ||||||
Energy | 10.1 | 15,582 | ||||||
Telecommunication Services | 5.0 | 7,626 | ||||||
Consumer Discretionary | 2.9 | 4,496 | ||||||
Financials | 1.4 | 2,212 | ||||||
Transportation | 0.4 | 586 | ||||||
Healthcare | 0.3 | 482 | ||||||
Total Common Stocks | 98.8 | 151,907 | ||||||
Total Short-Term Investment | 0.6 | 901 | ||||||
Total Investments | 99.4 | 152,808 | ||||||
Other Assets and Liabilities, Net | 0.6 | 877 | ||||||
Net Assets | 100.0 | % | $ | 153,685 | ||||
* | The fund is significantly invested in these sectors and therefore subject to additional risks. See note 6 in Notes to Financial Statements. |
Fund (concluded)
International Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 91.9% | ||||||||
Australia – 2.0% | ||||||||
APA Group | 71,793 | $ | 275 | |||||
Asciano Group = | 674,560 | 1,036 | ||||||
Australian Infrastructure Fund | 149,334 | 290 | ||||||
CSL | 87,656 | 2,827 | ||||||
DUET Group | 206,139 | 351 | ||||||
Macquarie Atlas Roads Group = | 21,731 | 31 | ||||||
Macquarie Group | 83,477 | 2,967 | ||||||
MAp Group | 204,848 | 612 | ||||||
National Australia Bank | 61,283 | 1,534 | ||||||
Newcrest Mining | 38,800 | 1,527 | ||||||
Spark Infrastructure Group | 419,784 | 461 | ||||||
Transurban Group | 318,096 | 1,628 | ||||||
13,539 | ||||||||
Austria – 0.1% | ||||||||
Flughafen Wien | 6,008 | 373 | ||||||
Belgium – 0.9% | ||||||||
Anheuser-Busch InBev | 95,126 | 5,974 | ||||||
Elia System Operator – VVPR Strips = | 1,188 | — | ||||||
Elia System Operator | 5,354 | 203 | ||||||
6,177 | ||||||||
Brazil – 1.8% | ||||||||
All America Latina Logistica | 18,067 | 172 | ||||||
Companhia de Gas de Sao Paulo, Class A | 16,088 | 343 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo – ADR | 3,225 | 148 | ||||||
Companhia de Saneamento de Minas Gerais | 9,686 | 149 | ||||||
Companhia de Transmissao de Energia Electrica Paulista | 17,741 | 553 | ||||||
Companhia Energetica de Minas Gerais – ADR | 152,448 | 2,720 | ||||||
Companhia Energetica do Ceara – COELCE, Class A | 14,839 | 246 | ||||||
CPFL Energia – ADR | 32 | 2 | ||||||
EcoRodovias Infraestructura e Logistica = | 22,273 | 169 | ||||||
Energias do Brasil | 10,161 | 223 | ||||||
Itau Unibanco Holding – ADR | 109,463 | 2,688 | ||||||
Light | 4,117 | 52 | ||||||
Petroleo Brasileiro – ADR | 55,213 | 1,884 | ||||||
Santos Brasil Participacoes | 2,452 | 33 | ||||||
Vale – ADR | 85,127 | 2,736 | ||||||
Wilson Sons – BDR | 5,766 | 98 | ||||||
12,216 | ||||||||
Canada – 5.5% | ||||||||
Agrium | 18,950 | 1,677 | ||||||
ATCO, Class I | 403 | 21 | ||||||
Bank of Nova Scotia | 69,170 | 3,701 | ||||||
Boralex, Class A = | 5,753 | 47 | ||||||
Brookfield Renewable Power Fund | 4,878 | 103 | ||||||
Cameco | 155,148 | 4,804 | ||||||
Canadian Utilities, Class A | 5,283 | 254 | ||||||
Cenovus Energy | 103,999 | 2,894 | ||||||
Enbridge | 29,717 | 1,646 | ||||||
EnCana | 116,589 | 3,293 | ||||||
IESI-BFC | 18,392 | 430 | ||||||
Inmet Mining | 30,080 | 1,798 | ||||||
Manulife Financial | 237,429 | 3,015 | ||||||
Pan American Silver | 40,380 | 1,289 | ||||||
Suncor Energy | 146,523 | 4,690 | ||||||
TMX Group | 95,470 | 3,175 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 63
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
International Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
TransCanada | 19,653 | $ | 726 | |||||
Yamana Gold | 360,974 | 3,968 | ||||||
37,531 | ||||||||
Chile – 0.4% | ||||||||
Enersis – ADR | 2,851 | 65 | ||||||
Sociedad Quimica y Minera de Chile – ADR | 50,805 | 2,632 | ||||||
2,697 | ||||||||
China – 2.6% | ||||||||
Agile Property Holdings | 2,024,000 | 2,670 | ||||||
China Communications Construction, Class H | 2,181,000 | 2,092 | ||||||
China Merchants Bank | 737,350 | 2,101 | ||||||
China Suntien Green Energy, Class H = | 563,146 | 190 | ||||||
Dalian Port, Class H | 112,848 | 49 | ||||||
Industrial & Commercial Bank of China, Class H | 2,688,000 | 2,171 | ||||||
Jiangsu Expressway, Class H | 231,406 | 280 | ||||||
New Oriental Education & Technology Group – ADR = | 26,187 | 2,812 | ||||||
PetroChina, Class H | 1,946,000 | 2,395 | ||||||
Tencent Holdings | 138,100 | 3,175 | ||||||
Zhejiang Expressway, Class H | 71,046 | 72 | ||||||
18,007 | ||||||||
Denmark – 1.3% | ||||||||
AP Moller-Maersk, Class B | 17 | 148 | ||||||
Novo Nordisk, Class B | 51,127 | 5,368 | ||||||
Vestas Wind Systems = | 108,939 | 3,473 | ||||||
8,989 | ||||||||
Finland – 0.9% | ||||||||
Nokia Oyj | 576,827 | 6,195 | ||||||
France – 6.5% | ||||||||
Aeroports de Paris | 9,701 | 824 | ||||||
AXA | 194,327 | 3,544 | ||||||
BNP Paribas | 101,157 | 7,399 | ||||||
Carrefour | 96,792 | 5,241 | ||||||
Electricite de France | 74,293 | 3,408 | ||||||
Eutelsat Communications | 7,625 | 287 | ||||||
Iliad | 52,620 | 5,928 | ||||||
L’oreal | 24,883 | 2,923 | ||||||
Rubis | 555 | 62 | ||||||
Seche Environnement | 732 | 59 | ||||||
Suez Environnement | 20,779 | 407 | ||||||
Total | 101,704 | 5,536 | ||||||
Total – ADR | 59,200 | 3,225 | ||||||
Ubisoft Entertainment = | 309,866 | 4,037 | ||||||
Vinci | 31,225 | 1,674 | ||||||
44,554 | ||||||||
Germany – 8.9% | ||||||||
Adidas | 125,450 | 8,171 | ||||||
Aixtron | 132,618 | 4,318 | ||||||
Allianz | 49,793 | 6,235 | ||||||
BASF | 30,160 | 2,193 | ||||||
BMW | 56,355 | 4,039 | ||||||
Deutsche Boerse | 44,579 | 3,136 | ||||||
E.ON | 211,980 | 6,635 | ||||||
Fraport Frankfurt Airport | 5,927 | 376 | ||||||
Henkel KGAA | 66,690 | 3,932 | ||||||
Metro | 29,720 | 2,083 | ||||||
SAP | 93,918 | 4,893 | ||||||
Siemens | 39,200 | 4,473 | ||||||
Symrise | 158,870 | 4,825 | ||||||
Wacker Chemie | 25,383 | 5,236 | ||||||
60,545 | ||||||||
Hong Kong – 2.6% | ||||||||
Beijing Capital International Airport, Class H | 339,112 | 188 | ||||||
Beijing Enterprises Holdings | 202,036 | 1,384 | ||||||
Beijing Enterprises Water Group = | 415,543 | 145 | ||||||
Cheung Kong Holdings | 270,821 | 4,137 | ||||||
China Everbright International | 191,780 | 102 | ||||||
China Gas Holdings | 563,850 | 322 | ||||||
China Merchants Holdings International | 520,618 | 1,830 | ||||||
China Resources Gas Group | 121,390 | 180 | ||||||
China Resources Land | 1,028,000 | 2,032 | ||||||
China Water Affairs Group | 88,453 | 34 | ||||||
Esprit Holdings | 638,303 | 3,446 | ||||||
Guangdong Investment | 381,182 | 191 | ||||||
Hong Kong & China Gas | 147,049 | 356 | ||||||
Hopewell Highway Infrastructure | 4,130 | 3 | ||||||
Li & Fung | 612,000 | 3,240 | ||||||
MTR | 60,045 | 229 | ||||||
17,819 | ||||||||
India – 0.4% | ||||||||
GAIL India – GDR | 8,505 | 564 | ||||||
HDFC Bank – ADR | 11,215 | 1,940 | ||||||
2,504 | ||||||||
Ireland – 1.6% | ||||||||
Covidien | 151,690 | 6,047 | ||||||
Experian Group | 220,473 | 2,562 | ||||||
WPP | 185,081 | 2,151 | ||||||
10,760 | ||||||||
Israel – 0.4% | ||||||||
Teva Pharmaceutical Industries – ADR | 55,327 | 2,871 | ||||||
Italy – 1.3% | ||||||||
Atlantia | 2,520 | 58 | ||||||
Eni | 141,431 | 3,185 | ||||||
Hera | 25,705 | 54 | ||||||
IREN | 31,423 | 56 | ||||||
Saipem | 94,859 | 4,213 | ||||||
SAVE | 17,986 | 175 | ||||||
Snam Rete Gas | 20,479 | 111 | ||||||
Terna-Rete Elettrica Nationale | 197,426 | 911 | ||||||
8,763 | ||||||||
Japan – 19.2% | ||||||||
AMADA | 230,539 | 1,517 | ||||||
Canon | 203,802 | 9,382 | ||||||
Chubu Electric Power | 10,741 | 271 | ||||||
East Japan Railway | 16,788 | 1,037 | ||||||
FANUC | 53,800 | 7,789 | ||||||
Fast Retailing | 23,600 | 3,091 | ||||||
INPEX | 860 | 4,479 | ||||||
Japan Airport Terminal | 31,668 | 519 | ||||||
Kamigumi | 101,469 | 793 | ||||||
Kansai Electric Power | 15,039 | 381 | ||||||
Keyence | 16,021 | 3,969 | ||||||
Mitsubishi | 264,956 | 6,364 | ||||||
Mitsubishi Logistics | 13,879 | 168 | ||||||
Mitsubishi UFJ Financial Group | 365,882 | 1,698 | ||||||
Mitsui Sumitomo Insurance Group | 130,273 | 3,121 | ||||||
NGK Insulators | 235,000 | 3,558 | ||||||
Nintendo | 26,500 | 6,843 | ||||||
NKSJ Holdings = | 744,900 | 5,112 |
The accompanying notes are an integral part of the financial statements.
64 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
International Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Nomura Research Institute | 123,548 | $ | 2,331 | |||||
Park24 | 48,110 | 465 | ||||||
SECOM | 70,650 | 3,214 | ||||||
Seven & I Holdings | 266,688 | 6,191 | ||||||
Shin-Etsu Chemical | 70,600 | 3,570 | ||||||
SMC | 65,756 | 10,037 | ||||||
Sony Financial Holdings | 1,792 | 6,231 | ||||||
Sugi Holdings | 163,186 | 3,646 | ||||||
Sumitomo Metal Mining | 345,099 | 5,492 | ||||||
Sumitomo Trust & Banking | 1,224,408 | 6,684 | ||||||
Suzuki Motor | 273,506 | 6,676 | ||||||
The Bank of Yokohama | 1,353,973 | 6,639 | ||||||
THK | 118,200 | 2,269 | ||||||
Toho Gas | 86,564 | 456 | ||||||
Tokyo Electric Power | 68,845 | 1,644 | ||||||
Tokyo Gas | 162,482 | 765 | ||||||
Toyota Motor | 132,000 | 4,675 | ||||||
131,077 | ||||||||
Luxembourg – 0.9% | ||||||||
Millicom International Cellular | 54,582 | 5,163 | ||||||
SES | 43,768 | 1,124 | ||||||
6,287 | ||||||||
Malaysia – 0.2% | ||||||||
Sime Darby Berhad | 575,192 | 1,635 | ||||||
Mexico – 0.4% | ||||||||
Empresas ICA – ADR = | 10,687 | 113 | ||||||
Wal-Mart de Mexico – ADR | 99,511 | 2,727 | ||||||
2,840 | ||||||||
Netherlands – 1.3% | ||||||||
Heineken | 128,909 | 6,544 | ||||||
Koninklijke KPN | 125,189 | 2,091 | ||||||
Koninklijke Vopak | 9,527 | 477 | ||||||
9,112 | ||||||||
New Zealand – 0.1% | ||||||||
Auckland International Airport | 51,077 | 82 | ||||||
Contact Energy | 31,140 | 139 | ||||||
Infratil | 47,222 | 66 | ||||||
Port of Tauranga | 76,532 | 434 | ||||||
Vector | 51,232 | 95 | ||||||
816 | ||||||||
Norway – 0.5% | ||||||||
Hafslund, Class B | 11,399 | 127 | ||||||
Statoil | 135,307 | 2,955 | ||||||
3,082 | ||||||||
Portugal – 0.4% | ||||||||
Brisa Auto-Estradas de Portugal | 44,075 | 334 | ||||||
Energias de Portugal | 658,014 | 2,517 | ||||||
2,851 | ||||||||
Russia – 0.3% | ||||||||
Gazprom – ADR | 84,969 | 1,857 | ||||||
Singapore – 1.4% | ||||||||
CitySpring Infrastructure Trust | 284,561 | 135 | ||||||
ComfortDelGro | 986,280 | 1,131 | ||||||
DBS Group Holdings | 374,316 | 4,032 | ||||||
Hyflux | 459,793 | 1,122 | ||||||
Parkway Life – REIT | 133,198 | 172 | ||||||
SembCorp Industries | 202,893 | 720 | ||||||
Singapore Airport Terminal Services | 302,905 | 668 | ||||||
Singapore Post | 505,788 | 461 | ||||||
Singapore Telecommunications | 156,119 | 374 | ||||||
SMRT | 365,143 | 580 | ||||||
9,395 | ||||||||
South Korea – 0.4% | ||||||||
Samsung Electronics – GDR | 7,814 | 2,587 | ||||||
Spain – 0.8% | ||||||||
Abertis Infraestructuras | 51,031 | 1,009 | ||||||
Banco Santander | 325,824 | 4,182 | ||||||
Enagas | 27,799 | 613 | ||||||
5,804 | ||||||||
Sweden – 1.4% | ||||||||
Atlas Copco, Class A | 269,029 | 5,623 | ||||||
Ericsson | 359,569 | 3,954 | ||||||
9,577 | ||||||||
Switzerland – 8.7% | ||||||||
ABB = | 163,065 | 3,378 | ||||||
BKW FMB Energie | 2,333 | 159 | ||||||
Compagnie Financiere Richemont | 57,859 | 2,886 | ||||||
Credit Suisse Group | 74,160 | 3,070 | ||||||
Flughafen Zuerich | 1,651 | 609 | ||||||
Foster Wheeler = | 197,873 | 4,634 | ||||||
Logitech International = | 202,393 | 3,803 | ||||||
Nestle | 231,750 | 12,694 | ||||||
Noble = | 85,120 | 2,939 | ||||||
Novartis | 170,632 | 9,887 | ||||||
Roche Holding | 88,577 | 13,008 | ||||||
Xstrata | 133,510 | 2,587 | ||||||
59,654 | ||||||||
Thailand – 0.2% | ||||||||
Bangkok Bank | 281,881 | 1,456 | ||||||
United Kingdom – 15.2% | ||||||||
Anglo American | 151,205 | 7,044 | ||||||
Antofagasta | 60,384 | 1,278 | ||||||
ARM Holdings | 1,022,849 | 5,972 | ||||||
Autonomy = | 249,294 | 5,837 | ||||||
BG Group | 219,396 | 4,271 | ||||||
BHP Billiton | 172,617 | 6,114 | ||||||
BP – ADR | 85,996 | 3,511 | ||||||
British Sky Broadcasting Group | 466,486 | 5,281 | ||||||
Centrica | 117,092 | 623 | ||||||
Diageo | 323,056 | 5,960 | ||||||
Forth Ports | 394 | 8 | ||||||
GlaxoSmithKline | 352,750 | 6,888 | ||||||
HSBC Holdings – ADR | 67,017 | 3,492 | ||||||
National Grid – ADR | 3,540 | 168 | ||||||
Pennon Group | 13,845 | 138 | ||||||
Prudential | 513,709 | 5,196 | ||||||
Reed Elsevier | 632,625 | 5,427 | ||||||
Rio Tinto | 66,137 | 4,296 | ||||||
Scottish & Southern Energy | 222,717 | 4,116 | ||||||
Serco Group | 10,355 | 102 | ||||||
Severn Trent | 19,205 | 430 | ||||||
Standard Chartered | 249,120 | 7,205 | ||||||
Tesco | 744,735 | 5,097 | ||||||
United Utilities Group | 32,732 | 321 | ||||||
Vedanta Resources | 136,930 | 4,554 | ||||||
Vodafone Group – ADR | 232,816 | 6,405 | ||||||
Willis Group Holdings | 127,820 | 4,065 | ||||||
103,799 | ||||||||
United States – 3.3% | ||||||||
AGL Resources | 683 | 27 | ||||||
American Electric Power | 7,413 | 278 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 65
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
International Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | FAIR VALUE > | ||||||
American Tower, Class A = | 12,442 | $ | 642 | |||||
Atmos Energy | 144 | 4 | ||||||
Bunge | 66,760 | 4,011 | ||||||
California Water Service Group | 7,251 | 271 | ||||||
Chesapeake Utilities | 1,114 | 41 | ||||||
Connecticut Water Service | 1,570 | 38 | ||||||
Coresite Realty – REIT = | 12,930 | 195 | ||||||
Crown Castle International = | 28,253 | 1,218 | ||||||
Digital Realty Trust – REIT | 7,964 | 476 | ||||||
DuPont Fabros Technology – REIT | 4,355 | 109 | ||||||
ITC Holdings | 9,219 | 576 | ||||||
Kinder Morgan Management | 2,444 | 151 | ||||||
Middlesex Water | 1,312 | 23 | ||||||
New Jersey Resources | 469 | 19 | ||||||
NextEra Energy | 7,959 | 438 | ||||||
Niska Gas Storage Partners | 1,938 | 39 | ||||||
NiSource | 17,723 | 307 | ||||||
Northeast Utilities | 5,293 | 166 | ||||||
Philip Morris International | 58,861 | 3,443 | ||||||
Questar | 15,975 | 271 | ||||||
Republic Services | 56,167 | 1,674 | ||||||
SBA Communications, Class A = | 11,487 | 451 | ||||||
Schlumberger | 56,020 | 3,915 | ||||||
Sempra Energy | 23,071 | 1,234 | ||||||
SJW | 3,663 | 89 | ||||||
Southern Union | 17,280 | 434 | ||||||
Spectra Energy | 62,886 | 1,495 | ||||||
Standard Parking = | 24,682 | 422 | ||||||
Unitil | 4,924 | 107 | ||||||
Williams | 5,451 | 117 | ||||||
Xcel Energy | 3,365 | 80 | ||||||
22,761 | ||||||||
Total Common Stocks | ||||||||
(Cost $514,172) | 628,130 | |||||||
Exchange-Traded Funds – 0.6% | ||||||||
United States – 0.6% | ||||||||
Market Vectors Russia | 110,000 | 3,772 | ||||||
Market Vectors Vietnam | 10,000 | 248 | ||||||
Total Exchange-Traded Funds | ||||||||
(Cost $3,582) | 4,020 | |||||||
Short-Term Investments – 7.6% | ||||||||
Money Market Fund – 4.4% | ||||||||
State Street Institutional Liquid Reserves Fund | ||||||||
0.220% Ω | 29,755,767 | 29,756 | ||||||
U.S. Treasury Obligations – 3.2% | ||||||||
U.S. Treasury Bills o | ||||||||
0.185%, 11/04/2010 | $ | 19,600 | 19,600 | |||||
0.150%, 04/07/2011 | 2,550 | 2,548 | ||||||
22,148 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $51,904) | 51,904 | |||||||
Total Investments 5 – 100.1% | ||||||||
(Cost $569,658) | 684,054 | |||||||
Other Assets and Liabilities, Net – (0.1)% | (582 | ) | ||||||
Total Net Assets – 100.0% | $ | 683,472 | ||||||
International Fund (continued)
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
Ω | The rate shown is the annualized seven-day effective yield as of October 31, 2010. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 2010. See note 2 in Notes to Financial Statements. | |
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $570,229. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 132,232 | ||
Gross unrealized depreciation | (18,407 | ) | ||
Net unrealized appreciation | $ | 113,825 | ||
ADR – | American Depositary Receipt |
BDR – | Brazilian Depositary Receipt |
GDR – | Global Depositary Receipt |
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Settlement | Purchased | Contract | Appreciation | |||||||||||
Description | Month | (Sold) | Value | (Depreciation) | ||||||||||
Amsterdam Index Futures | November 2010 | 187 | $17,508 | $ | 63 | |||||||||
CAC 40 10 Euro Index Futures | December 2010 | 134 | 7,112 | 131 | ||||||||||
DAX Index Futures | December 2010 | 109 | 25,106 | 1,293 | ||||||||||
Dow Jones Euro STOXX 50 Futures | December 2010 | (124 | ) | (4,900) | (128 | ) | ||||||||
E-Mini MSCI EAFE Index Futures | December 2010 | (64 | ) | (5,169) | (381 | ) | ||||||||
E-Mini MSCI Emerging Markets Index Futures | December 2010 | 335 | 18,589 | 1,290 | ||||||||||
Euro Currency Futures | December 2010 | (260 | ) | (45,136) | (3,805 | ) | ||||||||
FTSE 100 Index Futures | December 2010 | 516 | 46,806 | 1,270 | ||||||||||
FTSE/JSE Top 40 Index Futures | December 2010 | 148 | 5,750 | 380 | ||||||||||
IBEX 35 Index Futures | November 2010 | (118 | ) | (17,598) | (74 | ) | ||||||||
KOPSI 200 Index Futures | December 2010 | (89 | ) | (9,576) | (196 | ) | ||||||||
Mexican Bolsa Index Futures | December 2010 | (548 | ) | (15,818) | (1,257 | ) | ||||||||
Nikkei 225 Index Futures | December 2010 | 631 | 28,979 | 15 | ||||||||||
OMXS30 Index Futures | November 2010 | 924 | 15,054 | (61 | ) | |||||||||
Russell 2000 Mini Index Futures | December 2010 | (286 | ) | (20,083) | (1,905 | ) | ||||||||
S&P 500 Futures | December 2010 | (142 | ) | (41,879) | (3,029 | ) | ||||||||
S&P TSE 60 Futures | December 2010 | (240 | ) | (34,206) | (1,210 | ) | ||||||||
SGX MSCI Singapore Index Futures | November 2010 | 149 | 8,507 | (155 | ) | |||||||||
SGX S&P CNX Nifty Index Futures | November 2010 | (1,256 | ) | (15,172) | 256 | |||||||||
SPI 200 Futures | December 2010 | 361 | 41,081 | 96 | ||||||||||
STOXX 600 Banks Index Futures | December 2010 | (104 | ) | (1,511) | 113 | |||||||||
STOXX Small 200 Index Futures | December 2010 | 105 | 4,957 | 175 | ||||||||||
Swiss Market Index Futures | December 2010 | 230 | 15,141 | (57 | ) | |||||||||
$ | (7,176 | ) | ||||||||||||
The accompanying notes are an integral part of the financial statements.
66 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
International Fund (concluded)
At October 31, 2010, sector diversification of the fund, sector was as follows:
% of Net Assets | Fair Value | |||||||
Common Stocks | ||||||||
Financials | 16.9 | % | $ | 115,411 | ||||
Industrials | 12.6 | 86,435 | ||||||
Consumer Staples | 10.3 | 70,465 | ||||||
Information Technology | 9.8 | 67,295 | ||||||
Energy | 9.6 | 65,533 | ||||||
Consumer Discretionary | 8.5 | 58,306 | ||||||
Materials | 8.5 | 57,989 | ||||||
Healthcare | 6.9 | 47,070 | ||||||
Utilities | 5.5 | 37,151 | ||||||
Telecommunication Services | 3.3 | 22,272 | ||||||
Transportation | — | 203 | ||||||
Total Common Stocks | 91.9 | 628,130 | ||||||
Total Exchange-Traded Funds | 0.6 | 4,020 | ||||||
Total Short-Term Investments | 7.6 | 51,904 | ||||||
Total Investments | 100.1 | 684,054 | ||||||
Other Assets and Liabilities, Net | (0.1 | ) | (582 | ) | ||||
Net Assets | 100.0 | % | $ | 683,472 | ||||
International Fund (concluded)
International Select Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 91.2% | ||||||||
Australia – 2.8% | ||||||||
APA Group | 55,105 | $ | 211 | |||||
Asciano Group = | 517,768 | 795 | ||||||
Australian Infrastructure Fund | 114,614 | 222 | ||||||
BHP Billiton | 132,090 | 5,458 | ||||||
CSL | 93,868 | 3,027 | ||||||
DUET Group | 158,224 | 270 | ||||||
Macquarie Atlas Roads Group = | 15,007 | 21 | ||||||
Macquarie Group | 102,755 | 3,654 | ||||||
MAp Group | 157,241 | 470 | ||||||
National Australia Bank | 60,257 | 1,508 | ||||||
Newcrest Mining | 38,579 | 1,518 | ||||||
Rio Tinto | 65,236 | 5,309 | ||||||
Spark Infrastructure Group | 322,237 | 353 | ||||||
Transurban Group | 244,171 | 1,249 | ||||||
24,065 | ||||||||
Austria – 0.0% | ||||||||
Flughafen Wien | 4,611 | 286 | ||||||
Belgium – 0.6% | ||||||||
Anheuser-Busch InBev | 74,532 | 4,681 | ||||||
Elia System Operator – VVPR Strips = | 911 | — | ||||||
Elia System Operator | 4,109 | 156 | ||||||
4,837 | ||||||||
Brazil – 6.5% | ||||||||
All America Latina Logistica | 13,866 | 132 | ||||||
Banco do Brasil | 342,743 | 6,672 | ||||||
Cielo | 543,100 | 4,673 | ||||||
Companhia de Concessoes Rodoviarias | 50,000 | 1,353 | ||||||
Companhia de Gas de Sao Paulo, Class A | 12,349 | 264 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo – ADR | 2,476 | 114 | ||||||
Companhia de Saneamento de Minas Gerais | 7,434 | 114 | ||||||
Companhia de Transmissao de Energia Electrica Paulista | 13,618 | 424 | ||||||
Companhia Energetica de Minas Gerais – ADR | 358,838 | 6,402 | ||||||
Companhia Energetica do Ceara – COELCE, Class A | 11,391 | 189 | ||||||
Companhia Siderurgica Nacional – ADR | 125,600 | 2,120 | ||||||
CPFL Energia – ADR | 25 | 2 | ||||||
EcoRodovias Infraestructura e Logistica = | 17,097 | 130 | ||||||
Eletropaulo Metropolitana, Class B | 22,400 | 392 | ||||||
Energias do Brasil | 7,798 | 171 | ||||||
Fertilizantes Fosfatados = | 24,400 | 276 | ||||||
Itau Unibanco Holding – ADR | 193,051 | 4,741 | ||||||
Light | 3,161 | 40 | ||||||
Natura Cosmeticos | 81,800 | 2,343 | ||||||
Petroleo Brasileiro – ADR | 105,307 | 3,593 | ||||||
Redecard | 293,930 | 3,803 | ||||||
Santos Brasil Participacoes | 1,882 | 25 | ||||||
Souza Cruz | 39,599 | 2,036 | ||||||
Ultrapar Participacoes | 22,900 | 1,391 | ||||||
Usinas Siderurgicas de Minas Gerais, Class A | 250,200 | 3,124 | ||||||
Vale – ADR | 349,823 | 11,243 | ||||||
Wilson Sons – BDR | 4,425 | 75 | ||||||
55,842 | ||||||||
Canada – 4.8% | ||||||||
Agrium | 18,860 | 1,669 | ||||||
ATCO, Class I | 310 | 16 | ||||||
Bank of Nova Scotia | 71,014 | 3,800 | ||||||
Boralex, Class A = | 4,438 | 37 | ||||||
Brookfield Renewable Power Fund | 3,744 | 79 | ||||||
Cameco | 190,343 | 5,893 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 67
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Canadian Utilities, Class A | 4,055 | $ | 195 | |||||
Cenovus Energy | 103,357 | 2,876 | ||||||
Enbridge | 22,810 | 1,264 | ||||||
EnCana | 114,127 | 3,224 | ||||||
First Quantum Minerals | 30,700 | 2,688 | ||||||
IESI-BFC | 14,118 | 330 | ||||||
Inmet Mining | 29,394 | 1,757 | ||||||
Manulife Financial | 276,682 | 3,514 | ||||||
Pan American Silver | 40,140 | 1,281 | ||||||
Suncor Energy | 137,870 | 4,413 | ||||||
TMX Group | 93,420 | 3,107 | ||||||
TransCanada | 15,085 | 557 | ||||||
Yamana Gold | 353,459 | 3,885 | ||||||
40,585 | ||||||||
Chile – 0.5% | ||||||||
Enersis – ADR | 2,188 | 50 | ||||||
Sociedad Quimica y Minera de Chile – ADR | 75,018 | 3,886 | ||||||
3,936 | ||||||||
China – 3.9% | ||||||||
Agile Property Holdings | 3,786,000 | 4,994 | ||||||
China Communications Construction, Class H | 3,754,000 | 3,600 | ||||||
China Construction Bank, Class H | 1,805,000 | 1,725 | ||||||
China Merchants Bank | 1,127,900 | 3,214 | ||||||
China Suntien Green Energy, Class H = | 432,257 | 146 | ||||||
Dalian Port, Class H | 86,603 | 37 | ||||||
Industrial & Commercial Bank of China, Class H | 4,082,000 | 3,298 | ||||||
Jiangsu Expressway, Class H | 177,637 | 215 | ||||||
NetEase.com – ADR = | 44,900 | 1,877 | ||||||
New Oriental Education & Technology Group – ADR = | 44,079 | 4,733 | ||||||
PetroChina, Class H | 2,978,000 | 3,666 | ||||||
Tencent Holdings | 224,500 | 5,161 | ||||||
Weichai Power, Class H | 35,500 | 468 | ||||||
Zhejiang Expressway, Class H | 54,535 | 55 | ||||||
33,189 | ||||||||
Denmark – 0.7% | ||||||||
AP Moller – Maersk, Class B | 13 | 113 | ||||||
Novo Nordisk, Class B | 34,752 | 3,649 | ||||||
Vestas Wind Systems = | 80,654 | 2,571 | ||||||
6,333 | ||||||||
Egypt – 0.6% | ||||||||
Commercial International Bank | 248,960 | 1,862 | ||||||
Eastern Tobacco | 34,206 | 715 | ||||||
Mobinil | 23,297 | 692 | ||||||
Orascom Construction Industries | 46,414 | 2,104 | ||||||
5,373 | ||||||||
Finland – 0.7% | ||||||||
Nokia Oyj | 589,479 | 6,331 | ||||||
France – 5.1% | ||||||||
Aeroports de Paris | 7,447 | 633 | ||||||
AXA | 187,654 | 3,422 | ||||||
BNP Paribas | 95,365 | 6,976 | ||||||
Carrefour | 96,184 | 5,208 | ||||||
CFAO | 27,469 | 1,222 | ||||||
Electricite de France | 74,163 | 3,402 | ||||||
Eutelsat Communications | 5,853 | 220 | ||||||
Iliad | 42,938 | 4,837 | ||||||
L’oreal | 24,739 | 2,906 | ||||||
Rubis | 427 | 47 | ||||||
Seche Environnement | 564 | 45 | ||||||
Suez Environnement | 15,950 | 312 | ||||||
Total | 101,133 | 5,505 | ||||||
Total – ADR | 59,685 | 3,252 | ||||||
Ubisoft Entertainment = | 303,248 | 3,951 | ||||||
Vinci | 23,969 | 1,285 | ||||||
43,223 | ||||||||
Germany – 6.9% | ||||||||
Adidas | 116,363 | 7,579 | ||||||
Aixtron | 119,706 | 3,898 | ||||||
Allianz | 49,054 | 6,143 | ||||||
BASF | 29,661 | 2,157 | ||||||
BMW | 57,903 | 4,150 | ||||||
Deutsche Boerse | 45,534 | 3,203 | ||||||
E.ON | 210,680 | 6,594 | ||||||
Frankfurt Airport | 4,549 | 289 | ||||||
Henkel KGAA | 66,316 | 3,910 | ||||||
Metro | 29,235 | 2,049 | ||||||
SAP | 92,473 | 4,818 | ||||||
Siemens | 38,955 | 4,445 | ||||||
Symrise | 157,896 | 4,795 | ||||||
Wacker Chemie | 24,542 | 5,061 | ||||||
59,091 | ||||||||
Hong Kong – 2.2% | ||||||||
Beijing Capital International Airport, Class H | 260,300 | 144 | ||||||
Beijing Enterprises Holdings | 155,074 | 1,063 | ||||||
Beijing Enterprises Water Group = | 318,971 | 112 | ||||||
Cheung Kong Holdings | 269,213 | 4,112 | ||||||
China Everbright International | 147,211 | 78 | ||||||
China Gas Holdings | 432,798 | 247 | ||||||
China High Speed Transmission Equipment | 77,000 | 158 | ||||||
China Merchants Holdings International | 399,566 | 1,405 | ||||||
China Resources Gas Group | 93,178 | 138 | ||||||
China Resources Land | 1,830,000 | 3,617 | ||||||
China Water Affairs Group | 67,897 | 26 | ||||||
Esprit Holdings | 648,546 | 3,500 | ||||||
Guangdong Investment | 292,585 | 147 | ||||||
Hong Kong & China Gas | 112,877 | 273 | ||||||
Hopewell Highway Infrastructure | 3,170 | 2 | ||||||
Li & Fung | 688,000 | 3,643 | ||||||
MTR | 46,086 | 176 | ||||||
Shougang Concord International Enterprises | 655,000 | 110 | ||||||
18,951 | ||||||||
Hungary – 0.2% | ||||||||
OTP Bank | 67,239 | 1,997 | ||||||
India – 1.5% | ||||||||
Bank of India | 153,631 | 1,687 | ||||||
GAIL India – GDR | 6,527 | 433 | ||||||
HDFC Bank – ADR | 24,486 | 4,235 | ||||||
Infosys Technologies – ADR | 17,400 | 1,173 | ||||||
Jindal Steel & Power | 75,976 | 1,196 | ||||||
Punjab National Bank | 124,748 | 3,634 | ||||||
12,358 | ||||||||
Indonesia – 1.0% | ||||||||
Bank of Mandiri | 1,553,200 | 1,221 | ||||||
Semen Gresik Persero | 1,109,300 | 1,220 | ||||||
Tambang Batubara Bukit Asam | 547,700 | 1,207 | ||||||
Telekomunikasi Indonesia – ADR | 82,700 | 3,340 | ||||||
United Tractors | 663,166 | 1,653 | ||||||
8,641 | ||||||||
The accompanying notes are an integral part of the financial statements.
68 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Ireland – 1.2% | ||||||||
Covidien | 150,750 | $ | 6,010 | |||||
Experian Group | 215,713 | 2,507 | ||||||
WPP | 183,987 | 2,138 | ||||||
10,655 | ||||||||
Israel – 0.4% | ||||||||
Israel Chemicals | 8,409 | 128 | ||||||
Teva Pharmaceutical Industries – ADR | 64,963 | 3,372 | ||||||
3,500 | ||||||||
Italy – 1.0% | ||||||||
Atlantia | 1,936 | 44 | ||||||
Eni | 140,635 | 3,167 | ||||||
Hera | 19,730 | 42 | ||||||
IREN | 24,121 | 42 | ||||||
Saipem | 91,923 | 4,084 | ||||||
SAVE | 13,805 | 134 | ||||||
Snam Rete Gas | 15,799 | 86 | ||||||
Terna-Rete Elettrica Nationale | 151,529 | 699 | ||||||
8,298 | ||||||||
Japan – 14.1% | ||||||||
AMADA | 229,159 | 1,508 | ||||||
Canon | 176,763 | 8,137 | ||||||
Chubu Electric Power | 8,245 | 208 | ||||||
East Japan Railway | 12,883 | 795 | ||||||
FANUC | 40,600 | 5,878 | ||||||
Fast Retailing | 21,200 | 2,777 | ||||||
INPEX | 850 | 4,426 | ||||||
Japan Airport Terminal | 24,309 | 399 | ||||||
Kamigumi | 77,867 | 608 | ||||||
Kansai Electric Power | 11,542 | 292 | ||||||
Keyence | 15,951 | 3,952 | ||||||
Mitsubishi | 263,434 | 6,328 | ||||||
Mitsubishi Logistics | 10,653 | 129 | ||||||
Mitsubishi UFJ Financial Group | 421,978 | 1,958 | ||||||
Mitsui Sumitomo Insurance Group | 129,794 | 3,109 | ||||||
NGK Insulators | 173,000 | 2,619 | ||||||
Nintendo | 26,348 | 6,803 | ||||||
NKSJ Holdings | 675,100 | 4,633 | ||||||
Nomura Research Institute | 119,986 | 2,264 | ||||||
Park24 | 37,112 | 359 | ||||||
SECOM | 69,423 | 3,158 | ||||||
Seven & I Holdings | 261,093 | 6,061 | ||||||
Shin-Etsu Chemical | 53,800 | 2,720 | ||||||
SMC | 61,027 | 9,316 | ||||||
Sony Financial Holdings | 1,287 | 4,476 | ||||||
Sugi Holdings | 160,413 | 3,584 | ||||||
Sumitomo Metal Mining | 342,911 | 5,457 | ||||||
Sumitomo Trust & Banking | 1,217,025 | 6,645 | ||||||
Suzuki Motor | 271,960 | 6,638 | ||||||
The Bank of Yokohama | 1,345,854 | 6,599 | ||||||
THK | 117,500 | 2,256 | ||||||
Toho Gas | 66,440 | 350 | ||||||
Tokyo Electric Power | 52,843 | 1,262 | ||||||
Tokyo Gas | 124,697 | 587 | ||||||
Toyota Motor | 105,300 | 3,730 | ||||||
120,021 | ||||||||
Luxembourg – 0.9% | ||||||||
Millicom International Cellular | 57,255 | 5,416 | ||||||
Oriflame Cosmetics – SDR | 24,695 | 1,400 | ||||||
SES | 33,595 | 863 | ||||||
7,679 | ||||||||
Malaysia – 0.3% | ||||||||
British American Tobacco | 61,800 | 925 | ||||||
Sime Darby Berhad | 562,466 | 1,599 | ||||||
2,524 | ||||||||
Mexico – 1.8% | ||||||||
America Movil, Series L – ADR | 45,200 | 2,588 | ||||||
Desarrolladora Homex – ADR = | 34,500 | 1,159 | ||||||
Empresas ICA – ADR = | 8,203 | 87 | ||||||
Fomento Economico Mexicano – ADR | 38,740 | 2,127 | ||||||
Grupo Mexico, Series B | 730,553 | 2,403 | ||||||
Grupo Televisa – ADR | 87,900 | 1,973 | ||||||
Kimberly-Clark de Mexico, Series A | 173,700 | 1,090 | ||||||
Wal-Mart de Mexico – ADR | 139,525 | 3,824 | ||||||
15,251 | ||||||||
Netherlands – 1.0% | ||||||||
Heineken | 126,163 | 6,405 | ||||||
Koninklijke KPN | 124,454 | 2,078 | ||||||
Koninklijke Vopak | 7,312 | 366 | ||||||
8,849 | ||||||||
New Zealand – 0.1% | ||||||||
Auckland International Airport | 39,202 | 63 | ||||||
Contact Energy = | 23,902 | 107 | ||||||
Infratil | 36,484 | 51 | ||||||
Port of Tauranga | 58,744 | 333 | ||||||
Vector | 39,324 | 73 | ||||||
627 | ||||||||
Norway – 0.4% | ||||||||
Hafslund, Class B | 8,748 | 97 | ||||||
Statoil | 134,548 | 2,939 | ||||||
3,036 | ||||||||
Pakistan – 0.1% | ||||||||
Oil & Gas Development | 315,696 | 566 | ||||||
Pakistan Petroleum | 234,935 | 511 | ||||||
1,077 | ||||||||
Philippines – 0.4% | ||||||||
Philippine Long Distance Telephone – ADR | 54,600 | 3,392 | ||||||
Portugal – 0.3% | ||||||||
Brisa Auto-Estradas de Portugal | 33,831 | 257 | ||||||
Energias de Portugal | 647,301 | 2,476 | ||||||
2,733 | ||||||||
Russia – 1.4% | ||||||||
Gazprom – ADR | 142,217 | 3,108 | ||||||
LUKOIL – ADR | 41,000 | 2,286 | ||||||
Magnit – GDR = ⊡ | 56,371 | 1,507 | ||||||
Mobile TeleSystems – ADR | 96,350 | 2,086 | ||||||
TNK-BP Holding | 536,241 | 1,092 | ||||||
Uralkali – GDR, Class S | 63,293 | 1,564 | ||||||
11,643 | ||||||||
Singapore – 0.9% | ||||||||
CitySpring Infrastructure Trust | 218,211 | 103 | ||||||
ComfortDelGro | 757,218 | 869 | ||||||
DBS Group Holdings | 367,406 | 3,957 | ||||||
Hyflux | 352,883 | 861 | ||||||
Parkway Life – REIT | 102,212 | 132 | ||||||
SembCorp Industries | 155,736 | 553 | ||||||
Singapore Airport Terminal Services | 232,502 | 513 | ||||||
Singapore Post | 388,229 | 354 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 69
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Singapore Telecommunications | 119,791 | $ | 287 | |||||
SMRT | 281,698 | 447 | ||||||
8,076 | ||||||||
South Africa – 2.1% | ||||||||
Kumba Iron Ore | 52,873 | 3,002 | ||||||
Massmart Holdings | 73,709 | 1,501 | ||||||
Murray & Roberts Holdings | 328,367 | 2,035 | ||||||
Nedbank Group | 79,661 | 1,488 | ||||||
Pretoria Portland Cement | 334,892 | 1,595 | ||||||
Sanlam | 645,181 | 2,415 | ||||||
Shoprite Holdings | 103,942 | 1,470 | ||||||
Standard Bank Group | 94,427 | 1,389 | ||||||
Tiger Brands | 55,870 | 1,498 | ||||||
Truworths International | 174,779 | 1,725 | ||||||
18,118 | ||||||||
South Korea – 2.9% | ||||||||
Hite Brewery | 7,618 | 850 | ||||||
Hyundai Mobis | 7,809 | 1,945 | ||||||
Korea Life Insurance | 323,002 | 2,241 | ||||||
KT&G | 47,860 | 2,942 | ||||||
NHN = | 16,440 | 2,909 | ||||||
Samsung Electronics – GDR | 4,058 | 1,354 | ||||||
Samsung Electronics – GDR | 18,599 | 6,157 | ||||||
Shinhan Financial Group – ADR | 58,648 | 4,561 | ||||||
Woongjin Coway | 52,357 | 1,900 | ||||||
24,859 | ||||||||
Spain – 0.5% | ||||||||
Abertis Infraestructuras | 39,171 | 775 | ||||||
Banco Santander | 241,886 | 3,105 | ||||||
Enagas | 21,336 | 470 | ||||||
4,350 | ||||||||
Sweden – 1.0% | ||||||||
Atlas Copco, Class A | 230,322 | 4,813 | ||||||
Ericsson | 357,483 | 3,932 | ||||||
8,745 | ||||||||
Switzerland – 6.4% | ||||||||
ABB = | 146,577 | 3,036 | ||||||
BKW FMB Energie | 1,791 | 122 | ||||||
Compagnie Financiere Richemont | 58,755 | 2,931 | ||||||
Credit Suisse Group | 65,401 | 2,707 | ||||||
Flughafen Zuerich | 1,268 | 467 | ||||||
Foster Wheeler = | 196,872 | 4,611 | ||||||
Logitech International = | 225,472 | 4,237 | ||||||
Nestle | 198,699 | 10,884 | ||||||
Noble = | 84,640 | 2,923 | ||||||
Novartis | 144,305 | 8,361 | ||||||
Roche Holding | 79,533 | 11,680 | ||||||
Xstrata | 132,760 | 2,572 | ||||||
54,531 | ||||||||
Taiwan – 1.4% | ||||||||
Advanced Semiconductor Engineering | 1,297,044 | 1,129 | ||||||
Delta Electronics | 270,000 | 1,115 | ||||||
Hon Hai Precision Industry | 642,998 | 2,432 | ||||||
HTC | 75,863 | 1,720 | ||||||
MediaTek | 153,150 | 1,927 | ||||||
Taiwan Semiconductor Manufacturing | 1,937,961 | 3,987 | ||||||
12,310 | ||||||||
Thailand – 0.6% | ||||||||
Bangkok Bank | 280,215 | 1,447 | ||||||
Banpu Public | 64,400 | 1,679 | ||||||
Kasikornbank | 389,300 | 1,640 | ||||||
4,766 | ||||||||
Turkey – 1.5% | ||||||||
Akbank T.A.S | 323,907 | 2,008 | ||||||
Koc Holding | 288,745 | 1,359 | ||||||
Turkcell Iletisim Hizmetleri – ADR | 216,000 | 3,873 | ||||||
Turkiye Is Bankasi, Class C | 1,170,650 | 5,183 | ||||||
12,423 | ||||||||
United Kingdom – 10.1% | ||||||||
Anglo American | 152,299 | 7,096 | ||||||
Antofagasta | 60,020 | 1,271 | ||||||
ARM Holdings | 589,504 | 3,442 | ||||||
Autonomy = | 237,415 | 5,559 | ||||||
BG Group | 228,596 | 4,450 | ||||||
BP – ADR | 85,561 | 3,494 | ||||||
British Sky Broadcasting Group | 369,827 | 4,187 | ||||||
Centrica | 89,880 | 478 | ||||||
Diageo | 321,083 | 5,923 | ||||||
Forth Ports | 303 | 6 | ||||||
GlaxoSmithKline | 350,635 | 6,847 | ||||||
HSBC Holdings – ADR | 67,765 | 3,531 | ||||||
National Grid – ADR | 2,716 | 129 | ||||||
Pennon Group | 10,625 | 106 | ||||||
Prudential | 490,121 | 4,957 | ||||||
Reed Elsevier | 619,117 | 5,312 | ||||||
Scottish & Southern Energy | 208,663 | 3,856 | ||||||
Serco Group | 7,945 | 78 | ||||||
Severn Trent | 14,739 | 330 | ||||||
Standard Chartered | 215,470 | 6,233 | ||||||
Tesco | 584,827 | 4,002 | ||||||
United Utilities Group | 25,124 | 246 | ||||||
Vedanta Resources | 129,825 | 4,317 | ||||||
Vodafone Group – ADR | 229,023 | 6,300 | ||||||
Willis Group Holdings | 127,060 | 4,040 | ||||||
86,190 | ||||||||
United States – 2.4% | ||||||||
AGL Resources | 524 | 21 | ||||||
American Electric Power | 5,690 | 213 | ||||||
American Tower, Class A = | 9,550 | 493 | ||||||
Atmos Energy | 110 | 3 | ||||||
Bunge | 68,410 | 4,109 | ||||||
California Water Service Group | 5,564 | 208 | ||||||
Chesapeake Utilities | 855 | 31 | ||||||
Connecticut Water Service | 1,206 | 30 | ||||||
Coresite Realty – REIT = | 9,925 | 150 | ||||||
Crown Castle International = | 21,683 | 935 | ||||||
Digital Realty Trust – REIT | 6,114 | 365 | ||||||
DuPont Fabros Technology – REIT | 3,343 | 84 | ||||||
ITC Holdings | 7,076 | 443 | ||||||
Kinder Morgan Management | 1,876 | 116 | ||||||
Middlesex Water | 1,007 | 18 | ||||||
New Jersey Resources | 360 | 15 | ||||||
NextEra Energy | 6,109 | 336 | ||||||
Niska Gas Storage Partners | 1,487 | 30 | ||||||
NiSource | 13,593 | 235 | ||||||
Northeast Utilities | 4,062 | 127 | ||||||
Philip Morris International | 58,499 | 3,422 | ||||||
Questar | 12,262 | 208 | ||||||
Republic Services | 43,113 | 1,285 | ||||||
SBA Communications, Class A = | 8,817 | 346 | ||||||
Schlumberger | 55,680 | 3,891 |
The accompanying notes are an integral part of the financial statements.
70 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
International Select Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | FAIR VALUE > | ||||||
Sempra Energy | 17,710 | $ | 947 | |||||
SJW | 2,812 | 68 | ||||||
Southern Union | 13,264 | 333 | ||||||
Spectra Energy | 48,270 | 1,147 | ||||||
Standard Parking = | 18,945 | 324 | ||||||
Unitil | 3,780 | 82 | ||||||
Williams | 4,183 | 90 | ||||||
Xcel Energy | 2,583 | 62 | ||||||
20,167 | ||||||||
Total Common Stocks | ||||||||
(Cost $701,622) | 778,858 | |||||||
Exchange-Traded Funds – 2.3% | ||||||||
United States – 2.3% | ||||||||
iShares MSCI Chile Investable Market Index Fund | 60,000 | 4,550 | ||||||
iShares MSCI Turkey Investable Market Index Fund | 30,000 | 2,220 | ||||||
Market Vectors Russia | 310,000 | 10,630 | ||||||
Market Vectors Vietnam | 90,000 | 2,229 | ||||||
Total Exchange-Traded Funds | ||||||||
(Cost $17,056) | 19,629 | |||||||
Short-Term Investments – 6.5% | ||||||||
Money Market Fund – 3.3% | ||||||||
State Street Institutional Liquid Reserves Fund | ||||||||
0.220% Ω | 28,201,375 | 28,201 | ||||||
U.S. Treasury Obligations – 3.2% | ||||||||
U.S. Treasury Bills o | ||||||||
0.185%, 11/04/2010 | $ | 24,150 | 24,150 | |||||
0.150%, 04/07/2011 | 3,025 | 3,023 | ||||||
0.157%, 04/14/2011 | 600 | 599 | ||||||
27,772 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $55,974) | 55,973 | |||||||
Total Investments 5 – 100.0% | ||||||||
(Cost $774,652) | 854,460 | |||||||
Other Assets and Liabilities, Net – 0.0% | 58 | |||||||
Total Net Assets – 100.0% | $ | 854,518 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the fair value of this investment was $1,507 or 0.2% of total net assets. | |
Ω | The rate shown is the annualized seven-day effective yield as of October 31, 2010. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 2010. See note 2 in Notes to Financial Statements. | |
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $778,325. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 111,553 | ||
Gross unrealized depreciation | (35,418 | ) | ||
Net unrealized appreciation | $ | 76,135 | ||
ADR – | American Depositary Receipt |
BDR – | Brazilian Depositary Receipt |
GDR – | Global Depositary Receipt |
REIT – | Real Estate Investment Trust |
SDR – | Swedish Depositary Receipt |
International Select Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||
Settlement | Purchased | Contract | Appreciation | |||||||||||
Description | Month | (Sold) | Value | (Depreciation) | ||||||||||
Amsterdam Index Futures | November 2010 | 187 | $17,508 | $ | 63 | |||||||||
CAC 40 10 Euro Index Futures | December 2010 | 163 | 8,651 | 159 | ||||||||||
DAX Index Futures | December 2010 | 95 | 21,881 | 1,127 | ||||||||||
Dow Jones Euro STOXX 50 Futures | December 2010 | (790 | ) | (31,216) | (816 | ) | ||||||||
E-Mini MSCI EAFE Index Futures | December 2010 | (131 | ) | (10,580) | (634 | ) | ||||||||
E-Mini MSCI Emerging Markets Index Futures | December 2010 | 82 | 4,550 | 24 | ||||||||||
Euro Currency Futures | December 2010 | (251 | ) | (43,574) | (3,674 | ) | ||||||||
FTSE 100 Index Futures | December 2010 | 383 | 34,742 | 874 | ||||||||||
FTSE/JSE Top 40 Index Futures | December 2010 | 75 | 2,914 | 193 | ||||||||||
Hang Seng Index Futures | November 2010 | 4 | 593 | (16 | ) | |||||||||
H-Shares Index Futures | November 2010 | 465 | 39,345 | (1,582 | ) | |||||||||
IBEX 35 Index Futures | November 2010 | (155 | ) | (23,115) | (109 | ) | ||||||||
KOPSI 200 Index Futures | December 2010 | (32 | ) | (3,443) | 47 | |||||||||
Mexican Bolsa Index Futures | December 2010 | (758 | ) | (21,880) | (1,773 | ) | ||||||||
MSCI Taiwan Stock Index Futures | November 2010 | 495 | 14,548 | 72 | ||||||||||
Nikkei 225 Index Futures | December 2010 | 157 | 7,210 | (15 | ) | |||||||||
OMXS30 Index Futures | November 2010 | 1,035 | 16,862 | (69 | ) | |||||||||
Russell 2000 Mini Index Futures | December 2010 | (327 | ) | (22,962) | (1,893 | ) | ||||||||
S&P 500 Futures | December 2010 | (154 | ) | (45,418) | (3,199 | ) | ||||||||
S&P TSE 60 Futures | December 2010 | 219 | 31,213 | 1,258 | ||||||||||
SGX MSCI Singapore Index Futures | November 2010 | 189 | 10,791 | (197 | ) | |||||||||
SGX S&P CNX Nifty Index Futures | November 2010 | (905 | ) | (10,932) | 185 | |||||||||
SPI 200 Futures | December 2010 | 429 | 48,820 | 63 | ||||||||||
STOXX 600 Bank Futures | December 2010 | (481 | ) | (6,989) | 521 | |||||||||
STOXX SML200 Futures | December 2010 | (196 | ) | (9,253) | (298 | ) | ||||||||
Swiss Market Index Futures | December 2010 | 127 | 8,360 | (31 | ) | |||||||||
$ | (9,720 | ) | ||||||||||||
At October 31, 2010, sector diversification of the fund, was as follows:
% of Net Assets | Fair Value | |||||||
Common Stocks | ||||||||
Financials | 18.9 | % | $ | 161,258 | ||||
Information Technology | 11.3 | 96,739 | ||||||
Consumer Staples | 10.2 | 87,371 | ||||||
Industrials | 10.2 | 86,882 | ||||||
Materials | 10.1 | 86,084 | ||||||
Energy | 9.1 | 77,846 | ||||||
Consumer Discretionary | 7.7 | 66,031 | ||||||
Healthcare | 5.1 | 43,078 | ||||||
Utilities | 4.3 | 36,751 | ||||||
Telecommunication Services | 4.3 | 36,665 | ||||||
Transportation | — | 153 | ||||||
Total Common Stocks | 91.2 | 778,858 | ||||||
Total Exchange-Traded Funds | 2.3 | 19,629 | ||||||
Total Short-Term Investments | 6.5 | 55,973 | ||||||
Total Investments | 100.0 | 854,460 | ||||||
Other Assets and Liabilities, Net | 0.0 | 58 | ||||||
Net Assets | 100.00 | % | $ | 854,518 | ||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 71
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Large Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 99.7% | ||||||||
Consumer Discretionary – 23.8% | ||||||||
Advance Auto Parts | 106,463 | $ | 6,918 | |||||
Amazon.com 6 = | 134,943 | 22,285 | ||||||
Chipotle Mexican Grill, Class A 6 = | 35,334 | 7,428 | ||||||
Ctrip.com International – ADR 6 = | 111,666 | 5,814 | ||||||
Dick’s Sporting Goods 6 = | 186,092 | 5,363 | ||||||
DIRECTV, Class A = | 199,856 | 8,686 | ||||||
Discovery Communications, Class A 6 = | 205,817 | 9,182 | ||||||
Dollar Tree = | 249,843 | 12,819 | ||||||
Las Vegas Sands = | 113,855 | 5,224 | ||||||
lululemon Athletica 6 = | 95,846 | 4,248 | ||||||
Netflix 6 = | 69,576 | 12,071 | ||||||
Polo Ralph Lauren 6 | 66,810 | 6,473 | ||||||
Priceline.com = | 39,801 | 14,997 | ||||||
Starbucks | 269,502 | 7,675 | ||||||
Walt Disney | 124,981 | 4,513 | ||||||
Wynn Resorts 6 | 68,651 | 7,357 | ||||||
Yum! Brands | 135,573 | 6,719 | ||||||
147,772 | ||||||||
Consumer Staples – 3.1% | ||||||||
Estee Lauder, Class A | 113,191 | 8,056 | ||||||
PepsiCo | 167,344 | 10,927 | ||||||
18,983 | ||||||||
Energy – 7.0% | ||||||||
Concho Resources = | 97,249 | 6,678 | ||||||
Exxon Mobil | 67,422 | 4,482 | ||||||
FMC Technologies = | 64,532 | 4,653 | ||||||
National Oilwell Varco | 119,278 | 6,412 | ||||||
Occidental Petroleum | 64,454 | 5,068 | ||||||
Schlumberger | 141,127 | 9,863 | ||||||
Whiting Petroleum = | 63,316 | 6,360 | ||||||
43,516 | ||||||||
Financials – 2.9% | ||||||||
American Express | 219,220 | 9,089 | ||||||
Goldman Sachs Group 6 | 55,961 | 9,007 | ||||||
18,096 | ||||||||
Healthcare – 9.0% | ||||||||
Allergan | 153,425 | 11,110 | ||||||
Cerner 6 = | 40,788 | 3,582 | ||||||
Edwards Lifesciences = | 82,984 | 5,304 | ||||||
Express Scripts = | 192,937 | 9,361 | ||||||
Perrigo | 111,047 | 7,316 | ||||||
ResMed 6 = | 130,386 | 4,155 | ||||||
Thermo Fisher Scientific = | 62,331 | 3,205 | ||||||
Thoratec 6 = | 100,005 | 3,264 | ||||||
Varian Medical Systems = | 61,343 | 3,878 | ||||||
Vertex Pharmaceuticals 6 = | 124,809 | 4,784 | ||||||
55,959 | ||||||||
Industrials – 12.1% | ||||||||
3M | 69,259 | 5,833 | ||||||
Boeing | 67,732 | 4,785 | ||||||
C.H. Robinson Worldwide | 86,513 | 6,098 | ||||||
Caterpillar 6 | 143,860 | 11,307 | ||||||
Cummins | 129,357 | 11,396 | ||||||
Goodrich | 84,299 | 6,918 | ||||||
Parker Hannifin | 116,657 | 8,930 | ||||||
Precision Castparts | 80,881 | 11,047 | ||||||
United Technologies | 120,634 | 9,020 | ||||||
75,334 | ||||||||
Information Technology ⊳ – 39.1% | ||||||||
Accenture, Class A | 149,996 | 6,706 | ||||||
Akamai Technologies = | 134,678 | 6,959 | ||||||
Amphenol, Class A | 184,566 | 9,252 | ||||||
Apple = | 155,055 | 46,651 | ||||||
Baidu – ADR 6 = | 57,425 | 6,317 | ||||||
Broadcom, Class A 6 | 187,566 | 7,641 | ||||||
Cisco Systems = | 345,373 | 7,885 | ||||||
Citrix Systems = | 103,515 | 6,632 | ||||||
Cognizant Technology Solutions, Class A = | 121,288 | 7,907 | ||||||
Dolby Laboratories, Class A = | 97,405 | 6,008 | ||||||
EMC = | 526,282 | 11,057 | ||||||
F5 Networks = | 86,049 | 10,128 | ||||||
Google, Class A = | 20,184 | 12,373 | ||||||
Juniper Networks 6 = | 259,817 | 8,416 | ||||||
Marvell Technology Group = | 326,167 | 6,298 | ||||||
NetApp 6 = | 165,190 | 8,796 | ||||||
Oracle | 432,339 | 12,711 | ||||||
QUALCOMM | 295,275 | 13,326 | ||||||
Red Hat = | 164,833 | 6,966 | ||||||
Rovi 6 = | 83,084 | 4,208 | ||||||
Salesforce.com = | 73,844 | 8,571 | ||||||
Teradata = | 167,198 | 6,581 | ||||||
Visa, Class A 6 | 202,578 | 15,836 | ||||||
VMware, Class A = | 79,045 | 6,044 | ||||||
243,269 | ||||||||
Materials – 1.5% | ||||||||
Freeport-McMoRan Copper & Gold 6 | 99,336 | 9,405 | ||||||
Telecommunication Services – 1.2% | ||||||||
American Tower, Class A = | 143,670 | 7,415 | ||||||
Total Common Stocks | ||||||||
(Cost $472,731) | 619,749 | |||||||
Short-Term Investment – 0.1% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $751) | 751,444 | 751 | ||||||
Investment Purchased with Proceeds from Securities Lending – 23.0% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $142,971) | 142,970,645 | 142,971 | ||||||
Total Investments 5 – 122.8% | ||||||||
(Cost $616,453) | 763,471 | |||||||
Other Assets and Liabilities, Net – (22.8)% | (142,022 | ) | ||||||
Total Net Assets – 100.0% | $ | 621,449 | ||||||
> | 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 October 31, 2010. Total loaned securities had a fair value of $138,733 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 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 October 31, 2010. |
The accompanying notes are an integral part of the financial statements.
72 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Large Cap Growth Opportunities Fund (concluded)
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $617,358. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 149,609 | ||
Gross unrealized depreciation | (3,496 | ) | ||
Net unrealized appreciation | $ | 146,113 | ||
ADR – | American Depositary Receipt |
Large Cap Growth Opportunities Fund (concluded)
Large Cap Select Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE> | ||||||
Common Stocks – 99.7% | ||||||||
Consumer Discretionary – 16.7% | ||||||||
AnnTaylor Stores = | 68,723 | $ | 1,601 | |||||
Brunswick 6 | 88,980 | 1,408 | ||||||
D.R. Horton 6 | 122,531 | 1,279 | ||||||
DIRECTV, Class A = | 61,781 | 2,685 | ||||||
Discovery Communications, Class A 6 = | 45,428 | 2,026 | ||||||
Foot Locker | 155,850 | 2,483 | ||||||
Interpublic Group of Companies 6 = | 149,244 | 1,545 | ||||||
Jarden | 66,987 | 2,148 | ||||||
OfficeMax 6 = | 100,088 | 1,771 | ||||||
Starbucks | 82,569 | 2,352 | ||||||
Whirlpool | 22,657 | 1,718 | ||||||
Williams-Sonoma | 43,596 | 1,411 | ||||||
22,427 | ||||||||
Consumer Staples – 2.7% | ||||||||
Energizer Holdings = | 18,459 | 1,380 | ||||||
Estee Lauder, Class A | 31,545 | 2,245 | ||||||
3,625 | ||||||||
Energy – 9.7% | ||||||||
Anadarko Petroleum | 51,805 | 3,189 | ||||||
Cameron International 6 = | 56,045 | 2,452 | ||||||
Concho Resources = | 19,630 | 1,348 | ||||||
National Oilwell Varco | 30,816 | 1,657 | ||||||
Newfield Exploration = | 26,636 | 1,588 | ||||||
Schlumberger | 9,883 | 691 | ||||||
Whiting Petroleum 6 = | 21,877 | 2,197 | ||||||
13,122 | ||||||||
Financials – 10.4% | ||||||||
Citigroup = | 780,049 | 3,253 | ||||||
Fifth Third Bancorp | 115,601 | 1,452 | ||||||
Goldman Sachs Group 6 | 16,122 | 2,595 | ||||||
JPMorgan Chase | 82,550 | 3,106 | ||||||
KeyCorp | 136,864 | 1,121 | ||||||
Lincoln National | 52,595 | 1,288 | ||||||
Public Storage – REIT | 12,289 | 1,219 | ||||||
14,034 | ||||||||
Healthcare – 10.4% | ||||||||
Alexion Pharmaceuticals = | 18,064 | 1,234 | ||||||
Allergan | 27,000 | 1,955 | ||||||
Bristol-Myers Squibb | 99,428 | 2,675 | ||||||
Edwards Lifesciences = | 19,552 | 1,250 | ||||||
Endo Pharmaceuticals Holdings = | 47,494 | 1,745 | ||||||
McKesson | 27,744 | 1,830 | ||||||
Thermo Fisher Scientific = | 34,363 | 1,767 | ||||||
Valeant Pharmaceuticals International 6 | 53,469 | 1,476 | ||||||
13,932 | ||||||||
Industrials – 12.8% | ||||||||
Caterpillar 6 | 37,262 | 2,929 | ||||||
Cummins | 20,293 | 1,788 | ||||||
Delta Air Lines = | 111,485 | 1,549 | ||||||
Dover | 31,230 | 1,658 | ||||||
Eaton | 28,762 | 2,555 | ||||||
Honeywell International | 41,094 | 1,936 | ||||||
Manpower | 28,554 | 1,563 | ||||||
Parker Hannifin | 22,932 | 1,755 | ||||||
Textron 6 | 72,820 | 1,516 | ||||||
17,249 | ||||||||
Information Technology ⊳ – 29.4% | ||||||||
Accenture, Class A | 33,309 | 1,489 | ||||||
Adobe Systems = | 37,841 | 1,065 | ||||||
Akamai Technologies = | 46,660 | 2,411 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 73
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Large Cap Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE> | ||||||
Amphenol, Class A | 30,494 | $ | 1,529 | |||||
Apple = | 19,972 | 6,009 | ||||||
Autodesk = | 42,526 | 1,539 | ||||||
Avnet = | 47,324 | 1,409 | ||||||
BMC Software = | 59,037 | 2,684 | ||||||
Check Point Software Technologies 6 = | 44,783 | 1,914 | ||||||
Citrix Systems = | 20,642 | 1,322 | ||||||
EMC = | 106,075 | 2,229 | ||||||
Marvell Technology Group = | 111,369 | 2,151 | ||||||
MasterCard, Class A | 9,929 | 2,384 | ||||||
NetApp 6 = | 43,194 | 2,300 | ||||||
QUALCOMM | 45,674 | 2,061 | ||||||
Teradata = | 61,594 | 2,424 | ||||||
VMware, Class A = | 36,957 | 2,826 | ||||||
Xerox | 160,520 | 1,878 | ||||||
39,624 | ||||||||
Materials – 3.8% | ||||||||
Freeport-McMoRan Copper & Gold | 19,813 | 1,876 | ||||||
Mosaic | 24,898 | 1,822 | ||||||
Walter Energy | 15,567 | 1,369 | ||||||
5,067 | ||||||||
Telecommunication Services – 2.5% | ||||||||
Qwest Communications International 6 | 212,629 | 1,403 | ||||||
SBA Communications, Class A = | 48,791 | 1,916 | ||||||
3,319 | ||||||||
Utilities – 1.3% | ||||||||
CMS Energy 6 | 97,143 | 1,785 | ||||||
Total Common Stocks | ||||||||
(Cost $115,217) | 134,184 | |||||||
Short-Term Investment – 0.3% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $421) | 420,593 | 421 | ||||||
Investment Purchased with Proceeds from Securities Lending – 18.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $24,274) | 24,274,245 | 24,274 | ||||||
Total Investments 5 – 118.1% | ||||||||
(Cost $139,912) | 158,879 | |||||||
Other Assets and Liabilities, Net – (18.1)% | (24,297 | ) | ||||||
Total Net Assets – 100.0% | $ | 134,582 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $23,456 at October 31, 2010. See 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. | |
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 October 31, 2010. | |
† | 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 |
Large Cap Select Fund (concluded)
fund is invested in this affiliated money market fund. See note 2 in Notes to Financial Statements. | ||
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $139,964. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 19,650 | ||
Gross unrealized depreciation | (735 | ) | ||
Net unrealized appreciation | $ | 18,915 | ||
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
74 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Large Cap Value Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 99.6% | ||||||||
Consumer Discretionary – 8.9% | ||||||||
Darden Restaurants | 82,139 | $ | 3,755 | |||||
DIRECTV, Class A = | 144,184 | 6,266 | ||||||
Interpublic Group of Companies 6 = | 362,559 | 3,752 | ||||||
Macy’s 6 | 183,615 | 4,341 | ||||||
Mattel 6 | 168,981 | 3,942 | ||||||
Stanley Black & Decker | 77,917 | 4,829 | ||||||
Walt Disney | 97,084 | 3,506 | ||||||
30,391 | ||||||||
Consumer Staples – 7.2% | ||||||||
Bunge 6 | 42,745 | 2,568 | ||||||
Energizer Holdings = | 23,943 | 1,790 | ||||||
General Mills | 116,302 | 4,366 | ||||||
Kraft Foods, Class A 6 | 202,443 | 6,533 | ||||||
PepsiCo | 88,055 | 5,750 | ||||||
Procter & Gamble | 59,751 | 3,798 | ||||||
24,805 | ||||||||
Energy – 14.1% | ||||||||
Anadarko Petroleum | 84,628 | 5,211 | ||||||
Cameron International = | 110,818 | 4,848 | ||||||
Chevron | 52,447 | 4,333 | ||||||
Concho Resources = | 69,723 | 4,788 | ||||||
ConocoPhillips | 63,472 | 3,770 | ||||||
National Oilwell Varco | 82,090 | 4,413 | ||||||
Newfield Exploration = | 80,016 | 4,771 | ||||||
Noble Energy 6 | 32,775 | 2,671 | ||||||
Pioneer Natural Resources 6 | 62,370 | 4,353 | ||||||
Schlumberger | 63,672 | 4,450 | ||||||
Whiting Petroleum = | 46,271 | 4,647 | ||||||
48,255 | ||||||||
Financials – 22.7% | ||||||||
ACE 6 | 114,770 | 6,820 | ||||||
Ameriprise Financial | 86,660 | 4,479 | ||||||
AvalonBay Communities – REIT | 30,864 | 3,281 | ||||||
Citigroup 6 = | 2,091,548 | 8,722 | ||||||
Fifth Third Bancorp | 284,816 | 3,577 | ||||||
Goldman Sachs Group 6 | 43,106 | 6,938 | ||||||
Invesco | 151,963 | 3,495 | ||||||
JPMorgan Chase | 261,702 | 9,848 | ||||||
PartnerRe | 53,807 | 4,268 | ||||||
PNC Financial Services Group 6 | 85,664 | 4,617 | ||||||
Prudential Financial | 85,332 | 4,487 | ||||||
Simon Property Group – REIT | 35,141 | 3,374 | ||||||
State Street | 87,222 | 3,642 | ||||||
Unum Group | 221,365 | 4,963 | ||||||
Wells Fargo | 201,980 | 5,268 | ||||||
77,779 | ||||||||
Healthcare – 12.3% | ||||||||
AmerisourceBergen | 135,802 | 4,457 | ||||||
Amgen = | 90,851 | 5,196 | ||||||
Bristol-Myers Squibb | 135,487 | 3,645 | ||||||
Endo Pharmaceuticals Holdings = | 100,223 | 3,682 | ||||||
Johnson & Johnson | 69,962 | 4,454 | ||||||
Merck | 117,291 | 4,255 | ||||||
Pfizer | 385,515 | 6,708 | ||||||
St. Jude Medical = | 89,469 | 3,427 | ||||||
UnitedHealth Group | 102,095 | 3,680 | ||||||
Valeant Pharmaceuticals International 6 | 96,144 | 2,655 | ||||||
42,159 | ||||||||
Industrials – 10.6% | ||||||||
Boeing | 53,999 | 3,815 | ||||||
Caterpillar | 42,632 | 3,351 | ||||||
CSX | 119,332 | 7,333 | ||||||
Cummins | 55,392 | 4,880 | ||||||
Delta Air Lines = | 186,201 | 2,586 | ||||||
Eaton | 49,449 | 4,393 | ||||||
Manpower | 46,118 | 2,524 | ||||||
Republic Services | 139,332 | 4,153 | ||||||
Textron 6 | 160,269 | 3,337 | ||||||
36,372 | ||||||||
Information Technology – 8.1% | ||||||||
Amphenol, Class A | 73,174 | 3,668 | ||||||
Avnet = | 147,311 | 4,387 | ||||||
BMC Software = | 59,687 | 2,713 | ||||||
Check Point Software Technologies 6 = | 91,826 | 3,926 | ||||||
Marvell Technology Group = | 228,686 | 4,416 | ||||||
QUALCOMM | 76,686 | 3,461 | ||||||
Xerox | 461,786 | 5,403 | ||||||
27,974 | ||||||||
Materials – 5.7% | ||||||||
Albemarle | 77,933 | 3,907 | ||||||
Freeport-McMoRan Copper & Gold | 29,416 | 2,785 | ||||||
Mosaic | 68,708 | 5,026 | ||||||
PPG Industries | 80,010 | 6,137 | ||||||
Walter Energy | 19,317 | 1,699 | ||||||
19,554 | ||||||||
Telecommunication Services – 4.4% | ||||||||
AT&T | 316,719 | 9,027 | ||||||
Qwest Communications International 6 | 906,406 | 5,982 | ||||||
15,009 | ||||||||
Utilities – 5.6% | ||||||||
CenterPoint Energy | 230,377 | 3,815 | ||||||
CMS Energy 6 | 346,902 | 6,376 | ||||||
Public Service Enterprise Group | 130,371 | 4,218 | ||||||
Sempra Energy | 88,919 | 4,755 | ||||||
19,164 | ||||||||
Total Common Stocks | ||||||||
(Cost $318,455) | 341,462 | |||||||
Short-Term Investment – 0.0% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $110) | 110,255 | 110 | ||||||
Investment Purchased with Proceeds from Securities Lending – 18.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $62,033) | 62,033,268 | 62,033 | ||||||
Total Investments 5 – 117.7% | ||||||||
(Cost $380,598) | 403,605 | |||||||
Other Assets and Liabilities, Net – (17.7)% | (60,833 | ) | ||||||
Total Net Assets – 100.0% | $ | 342,772 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $59,902 at October 31, 2010. See note 2 in Notes to Financial Statements. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 75
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Large Cap Value Fund (concluded)
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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $380,731. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 34,371 | ||
Gross unrealized depreciation | (11,497 | ) | ||
Net unrealized appreciation | $ | 22,874 | ||
REIT – | Real Estate Investment Trust |
Large Cap Value Fund (concluded)
Mid Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 99.5% | ||||||||
Consumer Discretionary – 22.6% | ||||||||
Abercrombie & Fitch, Class A 6 | 172,853 | $ | 7,408 | |||||
Advance Auto Parts 6 | 385,259 | 25,034 | ||||||
AnnTaylor Stores 6 = | 414,883 | 9,667 | ||||||
Bed Bath & Beyond 6 = | 218,387 | 9,587 | ||||||
Chipotle Mexican Grill, Class A 6 = | 113,257 | 23,808 | ||||||
Coinstar 6 = | 281,242 | 16,194 | ||||||
Ctrip.com International – ADR 6 = | 295,171 | 15,370 | ||||||
Dick’s Sporting Goods 6 = | 599,909 | 17,289 | ||||||
Discovery Communications, Class A 6 = | 450,298 | 20,088 | ||||||
Dollar Tree = | 432,542 | 22,194 | ||||||
Las Vegas Sands = | 191,875 | 8,803 | ||||||
lululemon Athletica 6 = | 227,880 | 10,100 | ||||||
Netflix 6 = | 131,158 | 22,756 | ||||||
Polo Ralph Lauren 6 | 146,852 | 14,227 | ||||||
Priceline.com 6 = | 91,279 | 34,395 | ||||||
Ulta Salon, Cosmetics & Fragrance = | 256,148 | 7,861 | ||||||
Williams-Sonoma 6 | 321,719 | 10,414 | ||||||
Wynn Resorts 6 | 215,610 | 23,107 | ||||||
298,302 | ||||||||
Consumer Staples – 2.7% | ||||||||
Estee Lauder, Class A | 117,754 | 8,381 | ||||||
TreeHouse Foods 6 = | 166,623 | 7,781 | ||||||
Whole Foods Market 6 = | 500,035 | 19,876 | ||||||
36,038 | ||||||||
Energy – 5.0% | ||||||||
Concho Resources 6 = | 258,461 | 17,748 | ||||||
FMC Technologies 6 = | 252,425 | 18,200 | ||||||
National Oilwell Varco | 250,279 | 13,455 | ||||||
Petrohawk Energy = | 415,371 | 7,065 | ||||||
Whiting Petroleum 6 = | 102,472 | 10,292 | ||||||
66,760 | ||||||||
Financials – 5.1% | ||||||||
Blackstone Group 6 | 1,243,201 | 16,758 | ||||||
Discover Financial Services 6 | 1,008,850 | 17,806 | ||||||
IntercontinentalExchange = | 139,956 | 16,077 | ||||||
MSCI, Class A 6 = | 270,764 | 9,707 | ||||||
PartnerRe 6 | 84,603 | 6,711 | ||||||
67,059 | ||||||||
Healthcare – 10.0% | ||||||||
Alexion Pharmaceuticals 6 = | 186,314 | 12,725 | ||||||
Cerner 6 = | 158,503 | 13,921 | ||||||
Edwards Lifesciences = | 99,694 | 6,372 | ||||||
Express Scripts = | 211,697 | 10,272 | ||||||
PerkinElmer | 305,105 | 7,155 | ||||||
Perrigo | 296,377 | 19,525 | ||||||
ResMed 6 = | 367,592 | 11,715 | ||||||
Thoratec 6 = | 349,010 | 11,392 | ||||||
Valeant Pharmaceuticals International 6 | 731,042 | 20,184 | ||||||
Vertex Pharmaceuticals 6 = | 498,550 | 19,109 | ||||||
132,370 | ||||||||
Industrials – 18.5% | ||||||||
AMETEK | 279,481 | 15,106 | ||||||
C.H. Robinson Worldwide | 199,750 | 14,078 | ||||||
Cummins | 296,888 | 26,156 | ||||||
Eaton | 217,221 | 19,296 | ||||||
Expeditors International of Washington 6 | 384,477 | 18,978 | ||||||
Fastenal 6 | 345,025 | 17,762 | ||||||
Joy Global | 247,978 | 17,594 | ||||||
MSC Industrial Direct, Class A 6 | 325,875 | 18,555 | ||||||
Parker Hannifin | 213,612 | 16,352 |
The accompanying notes are an integral part of the financial statements.
76 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Growth Opportunities Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Precision Castparts | 197,208 | $ | 26,934 | |||||
Rockwell Automation | 258,036 | 16,094 | ||||||
Roper Industries 6 | 324,973 | 22,563 | ||||||
Ryanair Holdings – ADR 6 | 449,031 | 14,652 | ||||||
244,120 | ||||||||
Information Technology ⊳ – 29.3% | ||||||||
Akamai Technologies = | 380,648 | 19,668 | ||||||
Altera 6 | 440,892 | 13,760 | ||||||
Amphenol, Class A 6 | 549,614 | 27,552 | ||||||
Autodesk 6 = | 574,258 | 20,777 | ||||||
BMC Software = | 308,023 | 14,003 | ||||||
Check Point Software Technologies 6 = | 362,692 | 15,505 | ||||||
Citrix Systems = | 354,445 | 22,709 | ||||||
Cognizant Technology Solutions, Class A = | 157,272 | 10,252 | ||||||
Dolby Laboratories, Class A 6 = | 306,456 | 18,902 | ||||||
F5 Networks = | 225,111 | 26,496 | ||||||
Juniper Networks 6 = | 404,757 | 13,110 | ||||||
Lam Research 6 = | 417,080 | 19,098 | ||||||
Marvell Technology Group = | 929,923 | 17,957 | ||||||
NetApp 6 = | 782,405 | 41,663 | ||||||
Red Hat 6 = | 307,843 | 13,009 | ||||||
Rovi 6 = | 201,700 | 10,216 | ||||||
Salesforce.com 6 = | 137,107 | 15,914 | ||||||
SuccessFactors 6 = | 512,608 | 13,902 | ||||||
Teradata = | 621,893 | 24,478 | ||||||
Waters = | 293,402 | 21,750 | ||||||
Xilinx 6 | 244,749 | 6,562 | ||||||
387,283 | ||||||||
Materials – 3.6% | ||||||||
Albemarle | 429,314 | 21,521 | ||||||
PPG Industries 6 | 174,847 | 13,411 | ||||||
Walter Energy 6 | 141,025 | 12,405 | ||||||
47,337 | ||||||||
Telecommunication Services – 2.0% | ||||||||
NII Holdings = | 228,702 | 9,562 | ||||||
SBA Communications, Class A 6 = | 421,490 | 16,548 | ||||||
26,110 | ||||||||
Utilities – 0.7% | ||||||||
ITC Holdings | 148,042 | 9,269 | ||||||
Total Common Stocks | ||||||||
(Cost $1,028,715) | 1,314,648 | |||||||
Short-Term Investment – 0.1% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $418) | 418,277 | 418 | ||||||
Investment Purchased with Proceeds from Securities Lending – 33.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $437,314) | 437,313,722 | 437,314 | ||||||
Total Investments 5 – 132.7% | ||||||||
(Cost $1,466,447) | 1,752,380 | |||||||
Other Assets and Liabilities, Net – (32.7)% | (431,461 | ) | ||||||
Total Net Assets – 100.0% | $ | 1,320,919 | ||||||
Mid Cap Growth Opportunites Fund (concluded)
> | 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 October 31, 2010. Total loaned securities had a fair value of $429,035 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $1,466,894. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 295,243 | ||
Gross unrealized depreciation | (9,757 | ) | ||
Net unrealized appreciation | $ | 285,486 | ||
ADR – American Depositary Receipt
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 77
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Mid Cap Select Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 99.5% | ||||||||
Consumer Discretionary – 23.5% | ||||||||
Advance Auto Parts 6 | 9,706 | $ | 631 | |||||
AnnTaylor Stores 6 = | 25,230 | 588 | ||||||
Bed Bath & Beyond = | 13,141 | 577 | ||||||
Brunswick 6 | 30,509 | 483 | ||||||
Coinstar 6 = | 9,134 | 526 | ||||||
D.R. Horton 6 | 41,610 | 434 | ||||||
Dollar Tree 6 = | 11,698 | 600 | ||||||
Foot Locker 6 | 45,219 | 720 | ||||||
Interpublic Group of Companies 6 = | 73,494 | 761 | ||||||
lululemon Athletica 6 = | 10,940 | 485 | ||||||
Netflix 6 = | 3,182 | 552 | ||||||
OfficeMax = | 28,584 | 506 | ||||||
Quiksilver = | 132,489 | 552 | ||||||
Valassis Communications = | 10,884 | 359 | ||||||
Warnaco Group = | 9,093 | 483 | ||||||
Whirlpool | 6,341 | 481 | ||||||
Williams-Sonoma 6 | 13,578 | 440 | ||||||
9,178 | ||||||||
Consumer Staples – 1.5% | ||||||||
Estee Lauder, Class A 6 | 8,266 | 588 | ||||||
Energy – 6.7% | ||||||||
Cameron International = | 16,678 | 729 | ||||||
National Oilwell Varco | 8,533 | 459 | ||||||
Newfield Exploration = | 13,405 | 799 | ||||||
Whiting Petroleum = | 6,170 | 620 | ||||||
2,607 | ||||||||
Financials – 13.6% | ||||||||
Ameriprise Financial 6 | 14,217 | 735 | ||||||
CNO Financial Group 6 = | 102,055 | 555 | ||||||
Digital Realty Trust – REIT 6 | 12,140 | 725 | ||||||
Discover Financial Services 6 | 32,735 | 578 | ||||||
Fifth Third Bancorp 6 | 31,582 | 396 | ||||||
PartnerRe 6 | 9,542 | 757 | ||||||
Unum Group | 29,960 | 672 | ||||||
Ventas – REIT | 16,692 | 894 | ||||||
5,312 | ||||||||
Healthcare – 7.6% | ||||||||
AmerisourceBergen | 14,480 | 476 | ||||||
C.R. Bard | 5,197 | 432 | ||||||
Endo Pharmaceuticals Holdings 6 = | 14,323 | 526 | ||||||
Intuitive Surgical = | 2,351 | 618 | ||||||
Thoratec 6 = | 12,853 | 420 | ||||||
Zoll Medical 6 = | 15,592 | 507 | ||||||
2,979 | ||||||||
Industrials – 11.6% | ||||||||
Altra Holdings = | 37,394 | 553 | ||||||
Cummins | 7,618 | 671 | ||||||
Eaton | 8,701 | 773 | ||||||
Joy Global 6 | 10,773 | 764 | ||||||
Parker Hannifin | 9,443 | 723 | ||||||
Precision Castparts | 4,448 | 608 | ||||||
Textron 6 | 21,509 | 448 | ||||||
4,540 | ||||||||
Information Technology – 22.8% | ||||||||
Adobe Systems = | 10,074 | 284 | ||||||
Akamai Technologies = | 16,508 | 853 | ||||||
Amkor Technology 6 = | 61,108 | 441 | ||||||
Citrix Systems = | 7,695 | 493 | ||||||
Dolby Laboratories, Class A 6 = | 6,617 | 408 | ||||||
F5 Networks = | 10,554 | 1,242 | ||||||
LoopNet = | 33,665 | 355 | ||||||
MICROS Systems = | 14,266 | 648 | ||||||
MKS Instruments = | 14,199 | 293 | ||||||
NetApp 6 = | 21,545 | 1,147 | ||||||
Plantronics 6 | 19,854 | 712 | ||||||
Quest Software = | 14,861 | 389 | ||||||
Red Hat = | 11,468 | 485 | ||||||
Teradata = | 18,553 | 730 | ||||||
Verigy = | 49,069 | 449 | ||||||
8,929 | ||||||||
Materials – 5.5% | ||||||||
Albemarle | 14,962 | 750 | ||||||
PPG Industries 6 | 8,207 | 629 | ||||||
Rockwood Holdings = | 11,514 | 391 | ||||||
Walter Energy | 4,434 | 390 | ||||||
2,160 | ||||||||
Telecommunication Services – 3.2% | ||||||||
Qwest Communications International 6 | 93,050 | 614 | ||||||
SBA Communications, Class A 6 = | 15,860 | 623 | ||||||
1,237 | ||||||||
Utilities – 3.5% | ||||||||
CenterPoint Energy | 34,158 | 566 | ||||||
CMS Energy 6 | 43,763 | 804 | ||||||
1,370 | ||||||||
Total Common Stocks | ||||||||
(Cost $33,845) | 38,900 | |||||||
Warrants – 0.0% | ||||||||
Lantronix, Warrants = ¥ ⊡ | ||||||||
(Cost $0) | 746 | — | ||||||
Short-Term Investment – 0.5% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $189) | 188,621 | 189 | ||||||
Investment Purchased with Proceeds from Securities Lending – 43.4% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $16,985) | 16,985,471 | 16,985 | ||||||
Total Investments 5 – 143.4% | ||||||||
(Cost $51,019) | 56,074 | |||||||
Other Assets and Liabilities, Net – (43.4)% | (16,969 | ) | ||||||
Total Net Assets – 100.0% | $ | 39,105 | ||||||
> | 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 October 31, 2010. Total loaned securities had a fair value of $16,443 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
¥ | Security considered illiquid. As of October 31, 2010, the fair value of the fund’s investments in securities considered to be illiquid was $0 or 0.0% of total net assets. See note 2 in notes to Financial Statements. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the fair value of this investment was $0 or 0.0% 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 October 31, 2010. |
The accompanying notes are an integral part of the financial statements.
78 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Select Fund (concluded)
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $51,025. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 5,726 | ||
Gross unrealized depreciation | (677 | ) | ||
Net unrealized appreciation | $ | 5,049 | ||
REIT – Real Estate Investment Trust
Mid Cap Select Fund (concluded)
Mid Cap Value Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 99.4% | ||||||||
Consumer Discretionary – 11.1% | ||||||||
AnnTaylor Stores = | 176,587 | $ | 4,114 | |||||
Cablevision Systems, Class A | 213,681 | 5,714 | ||||||
CBS, Class B 6 | 509,626 | 8,628 | ||||||
Darden Restaurants | 145,556 | 6,653 | ||||||
Foot Locker | 305,370 | 4,865 | ||||||
Interpublic Group of Companies 6 = | 791,802 | 8,195 | ||||||
Macy’s 6 | 361,886 | 8,555 | ||||||
Mattel 6 | 304,249 | 7,098 | ||||||
Stanley Black & Decker | 170,420 | 10,561 | ||||||
64,383 | ||||||||
Consumer Staples – 5.4% | ||||||||
Bunge 6 | 121,237 | 7,283 | ||||||
Dr. Pepper Snapple Group 6 | 210,116 | 7,680 | ||||||
Energizer Holdings = | 40,377 | 3,019 | ||||||
JM Smucker | 162,419 | 10,440 | ||||||
TreeHouse Foods = | 62,835 | 2,935 | ||||||
31,357 | ||||||||
Energy – 11.3% | ||||||||
Cameron International 6 = | 188,427 | 8,244 | ||||||
Concho Resources 6 = | 139,198 | 9,559 | ||||||
Newfield Exploration = | 167,064 | 9,960 | ||||||
Noble Energy 6 | 73,528 | 5,991 | ||||||
Pioneer Natural Resources 6 | 131,746 | 9,196 | ||||||
Plains Exploration & Production = | 222,426 | 6,199 | ||||||
Spectra Energy | 309,230 | 7,350 | ||||||
Whiting Petroleum = | 95,194 | 9,561 | ||||||
66,060 | ||||||||
Financials – 23.1% | ||||||||
Ameriprise Financial 6 | 179,799 | 9,294 | ||||||
Arch Capital Group 6 = | 129,009 | 11,145 | ||||||
AvalonBay Communities – REIT | 52,325 | 5,563 | ||||||
BOK Financial 6 | 118,493 | 5,478 | ||||||
Boston Properties – REIT 6 | 81,966 | 7,065 | ||||||
Discover Financial Services | 499,221 | 8,811 | ||||||
Essex Property Trust – REIT 6 | 81,399 | 9,195 | ||||||
Federal Realty Investment Trust – REIT 6 | 85,951 | 7,046 | ||||||
Fifth Third Bancorp | 779,133 | 9,786 | ||||||
Invesco | 256,765 | 5,905 | ||||||
Lazard, Class A | 118,624 | 4,377 | ||||||
Liberty Property Trust – REIT | 201,587 | 6,745 | ||||||
Lincoln National 6 | 346,563 | 8,484 | ||||||
PartnerRe | 130,805 | 10,375 | ||||||
SunTrust Banks | 316,139 | 7,910 | ||||||
Unum Group | 496,905 | 11,141 | ||||||
Ventas – REIT | 111,915 | 5,994 | ||||||
134,314 | ||||||||
Healthcare – 7.9% | ||||||||
AmerisourceBergen | 228,986 | 7,515 | ||||||
C.R. Bard | 71,900 | 5,976 | ||||||
CIGNA | 114,425 | 4,027 | ||||||
Endo Pharmaceuticals Holdings = | 171,057 | 6,285 | ||||||
Health Net = | 126,498 | 3,402 | ||||||
St. Jude Medical = | 157,108 | 6,017 | ||||||
Universal Health Services | 194,731 | 8,037 | ||||||
Valeant Pharmaceuticals International 6 | 164,376 | 4,538 | ||||||
45,797 | ||||||||
Industrials – 10.1% | ||||||||
Cummins | 90,588 | 7,981 | ||||||
Delta Air Lines = | 316,830 | 4,401 | ||||||
Dover | 107,728 | 5,720 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 79
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Mid Cap Value Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Eaton | 111,631 | $ | 9,916 | |||||
Goodrich | 117,165 | 9,616 | ||||||
Manpower | 131,721 | 7,209 | ||||||
Republic Services | 269,564 | 8,035 | ||||||
Textron 6 | 271,554 | 5,654 | ||||||
58,532 | ||||||||
Information Technology – 7.5% | ||||||||
Amphenol, Class A | 117,750 | 5,903 | ||||||
Avnet = | 249,417 | 7,427 | ||||||
BMC Software = | 100,851 | 4,585 | ||||||
Check Point Software Technologies 6 = | 169,930 | 7,264 | ||||||
Marvell Technology Group = | 391,295 | 7,556 | ||||||
Xerox | 934,774 | 10,937 | ||||||
43,672 | ||||||||
Materials – 9.4% | ||||||||
Albemarle | 191,556 | 9,603 | ||||||
Celanese, Class A 6 | 212,668 | 7,582 | ||||||
CF Industries Holdings | 81,038 | 9,930 | ||||||
Crown Holdings = | 188,416 | 6,065 | ||||||
PPG Industries 6 | 158,544 | 12,160 | ||||||
Walter Energy 6 | 106,698 | 9,385 | ||||||
54,725 | ||||||||
Telecommunication Services – 3.0% | ||||||||
Qwest Communications International 6 | 1,277,735 | 8,433 | ||||||
Windstream 6 | 696,309 | 8,815 | ||||||
17,248 | ||||||||
Utilities – 10.6% | ||||||||
CenterPoint Energy | 593,916 | 9,835 | ||||||
CMS Energy 6 | 642,360 | 11,807 | ||||||
Progress Energy 6 | 120,025 | 5,401 | ||||||
Public Service Enterprise Group | 216,987 | 7,020 | ||||||
Sempra Energy | 204,583 | 10,941 | ||||||
Wisconsin Energy | 172,977 | 10,299 | ||||||
Xcel Energy | 278,281 | 6,640 | ||||||
61,943 | ||||||||
Total Common Stocks | ||||||||
(Cost $499,523) | 578,031 | |||||||
Short-Term Investment – 1.5% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $8,394) | 8,393,566 | 8,394 | ||||||
Investment Purchased with Proceeds from Securities Lending – 23.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $137,426) | 137,425,906 | 137,426 | ||||||
Total Investments 5 – 124.5% | ||||||||
(Cost $645,343) | 723,851 | |||||||
Other Assets and Liabilities, Net – (24.5)% | (142,344 | ) | ||||||
Total Net Assets – 100.0% | $ | 581,507 | ||||||
Mid Cap Value Fund (concluded)
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $132,999 at October 31, 2010. 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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $645,645. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 81,198 | ||
Gross unrealized depreciation | (2,992 | ) | ||
Net unrealized appreciation | $ | 78,206 | ||
REIT – Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
80 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Value Fund (concluded)
Quantitative Large Cap Core Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 98.5% | ||||||||
Consumer Discretionary – 11.9% | ||||||||
Aeropostale 6 = | 20,600 | $ | 502 | |||||
Amazon.com 6 = | 2,091 | 345 | ||||||
American Eagle Outfitters | 8,824 | 141 | ||||||
Apollo Group, Class A = | 7,282 | 273 | ||||||
AutoZone = | 1,892 | 450 | ||||||
Best Buy | 5,117 | 220 | ||||||
Big Lots = | 4,462 | 140 | ||||||
Brinker International | 17,734 | 329 | ||||||
Career Education 6 = | 22,133 | 388 | ||||||
Carnival 6 | 12,401 | 535 | ||||||
Chico’s FAS | 20,289 | 197 | ||||||
Coach | 6,514 | 326 | ||||||
Comcast, Class A 6 | 49,092 | 1,010 | ||||||
Darden Restaurants | 8,102 | 370 | ||||||
DIRECTV, Class A = | 6,485 | 282 | ||||||
Dollar Tree = | 3,750 | 193 | ||||||
DreamWorks Animation, Class A 6 = | 12,884 | 455 | ||||||
Expedia | 10,197 | 295 | ||||||
Family Dollar Stores 6 | 15,601 | 720 | ||||||
Ford Motor 6 = | 17,930 | 253 | ||||||
Fortune Brands | 2,061 | 111 | ||||||
Fossil = | 2,372 | 140 | ||||||
Gannett | 11,329 | 134 | ||||||
Gap | 39,751 | 756 | ||||||
Garmin 6 | 9,819 | 323 | ||||||
Gentex | 7,215 | 144 | ||||||
Genuine Parts | 9,658 | 462 | ||||||
Hasbro | 7,414 | 343 | ||||||
Hillenbrand | 9,215 | 198 | ||||||
Home Depot | 24,835 | 767 | ||||||
International Speedway, Class A | 13,332 | 305 | ||||||
ITT Educational Services 6 = | 5,466 | 353 | ||||||
J.C. Penney | 5,736 | 179 | ||||||
Johnson Controls | 978 | 34 | ||||||
Kohl’s = | 6,998 | 358 | ||||||
Lowe’s | 27,880 | 595 | ||||||
Mattel 6 | 31,875 | 744 | ||||||
McDonald’s | 12,229 | 951 | ||||||
McGraw-Hill | 12,116 | 456 | ||||||
News, Class A | 2,756 | 40 | ||||||
Nordstrom 6 | 6,293 | 242 | ||||||
Omnicom Group | 4,346 | 191 | ||||||
Panera Bread, Class A = | 1,561 | 140 | ||||||
RadioShack | 21,722 | 437 | ||||||
Ross Stores | 9,909 | 585 | ||||||
Royal Caribbean Cruises 6 = | 22,331 | 883 | ||||||
Sherwin-Williams | 12,542 | 915 | ||||||
Signet Jewelers = | 21,471 | 755 | ||||||
Stanley Black & Decker | 2,148 | 133 | ||||||
Staples 6 | 3,267 | 67 | ||||||
Target | 17,419 | 905 | ||||||
Tempur-pedic International = | 15,815 | 546 | ||||||
Thor Industries | 35,003 | 1,102 | ||||||
Time Warner | 30,845 | 1,003 | ||||||
TJX | 2,089 | 96 | ||||||
Viacom, Class B | 24,343 | 939 | ||||||
Walt Disney | 7,044 | 254 | ||||||
Whirlpool | 3,883 | 295 | ||||||
24,305 | ||||||||
Consumer Staples – 7.8% | ||||||||
Alberto-Culver | 4,557 | 170 | ||||||
Altria Group | 72,632 | 1,846 | ||||||
Archer-Daniels-Midland | 1,681 | 56 | ||||||
BJ’s Wholesale Club = | 4,477 | 187 | ||||||
Brown-Forman, Class B | 5,333 | 324 | ||||||
Coca-Cola | 27,710 | 1,699 | ||||||
Colgate-Palmolive | 3,727 | 287 | ||||||
CVS Caremark | 10,731 | 323 | ||||||
Dean Foods = | 29,060 | 302 | ||||||
Hansen Natural = | 5,344 | 274 | ||||||
Hershey | 4,256 | 211 | ||||||
Kimberly-Clark | 8,069 | 511 | ||||||
Kraft Foods, Class A 6 | 233 | 8 | ||||||
Kroger | 10,790 | 237 | ||||||
Molson Coors Brewing, Class B | 3,423 | 162 | ||||||
PepsiCo | 30,885 | 2,017 | ||||||
Philip Morris International | 24,471 | 1,432 | ||||||
Procter & Gamble | 50,327 | 3,199 | ||||||
Sysco 6 | 11,638 | 343 | ||||||
Walgreen | 6,360 | 215 | ||||||
Wal-Mart Stores | 38,677 | 2,095 | ||||||
Whole Foods Market = | 1,758 | 70 | ||||||
15,968 | ||||||||
Energy – 9.2% | ||||||||
Anadarko Petroleum | 995 | 61 | ||||||
Apache | 11,294 | 1,141 | ||||||
Baker Hughes | 4,804 | 223 | ||||||
Chevron | 56,467 | 4,665 | ||||||
ConocoPhillips | 18,186 | 1,080 | ||||||
Exxon Mobil | 112,833 | 7,500 | ||||||
Halliburton | 22,713 | 724 | ||||||
Hess | 54 | 3 | ||||||
Marathon Oil | 13,188 | 469 | ||||||
Occidental Petroleum | 13,201 | 1,038 | ||||||
Schlumberger | 14,616 | 1,021 | ||||||
SEACOR Holdings = | 5,010 | 475 | ||||||
Tidewater 6 | 5,069 | 234 | ||||||
Unit = | 77 | 3 | ||||||
18,637 | ||||||||
Financials – 12.8% | ||||||||
Aflac | 1,496 | 84 | ||||||
American Express | 20,893 | 866 | ||||||
American Financial Group | 11,885 | 363 | ||||||
Ameriprise Financial 6 | 11,158 | 577 | ||||||
Annaly Capital Management – REIT 6 | 63,378 | 1,122 | ||||||
AON | 9,653 | 384 | ||||||
Ares Capital | 8,758 | 147 | ||||||
Bank of America | 82,930 | 949 | ||||||
Bank of Hawaii 6 | 25,143 | 1,086 | ||||||
Bank of New York Mellon 6 | 11,451 | 287 | ||||||
BB&T 6 | 17,062 | 399 | ||||||
Berkshire Hathaway, Class B 6 = | 8,216 | 654 | ||||||
BOK Financial 6 | 5,634 | 260 | ||||||
Brown & Brown | 28,810 | 642 | ||||||
CBOE Holdings 6 | 7,937 | 191 | ||||||
Chimera Investment – REIT 6 | 93,534 | 383 | ||||||
Citigroup = | 71,145 | 297 | ||||||
Commerce Bancshares | 9,800 | 361 | ||||||
Cullen/Frost Bankers 6 | 8,957 | 470 | ||||||
Discover Financial Services 6 | 30,302 | 535 | ||||||
Eaton Vance | 5,511 | 159 | ||||||
Federated Investors, Class B 6 | 23,131 | 576 | ||||||
First Citizens Bancshares, Class A | 1,428 | 267 | ||||||
Franklin Resources | 11,108 | 1,274 | ||||||
Goldman Sachs Group 6 | 5,350 | 861 | ||||||
HCC Insurance Holdings | 10,218 | 271 | ||||||
Host Hotels & Resorts – REIT 6 | 5,475 | 87 | ||||||
Interactive Brokers Group, Class A = | 9,353 | 175 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 81
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Quantitative Large Cap Core Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
JPMorgan Chase | 58,857 | $ | 2,215 | |||||
Marsh & McLennan | 3,248 | 81 | ||||||
MetLife 6 | 5,930 | 239 | ||||||
Moody’s 6 | 17,841 | 483 | ||||||
PNC Financial Services Group 6 | 11,082 | 597 | ||||||
Principal Financial Group | 28,993 | 778 | ||||||
Prudential Financial | 9,565 | 503 | ||||||
Raymond James Financial | 3,841 | 108 | ||||||
Rayonier – REIT | 11,888 | 621 | ||||||
Reinsurance Group of America | 2,148 | 107 | ||||||
StanCorp Financial Group | 31,258 | 1,341 | ||||||
Symetra Financial | 9,129 | 101 | ||||||
T. Rowe Price Group 6 | 11,589 | 640 | ||||||
TCF Financial 6 | 15,332 | 202 | ||||||
TD Ameritrade 6 = | 44,722 | 764 | ||||||
Torchmark | 10,437 | 598 | ||||||
Unum Group 6 | 8,703 | 195 | ||||||
Validus Holdings | 6,999 | 198 | ||||||
Wells Fargo | 94,784 | 2,472 | ||||||
25,970 | ||||||||
Healthcare – 10.9% | ||||||||
Abbott Laboratories | 13,164 | 676 | ||||||
Aetna | 11,781 | 352 | ||||||
Amgen = | 16,858 | 964 | ||||||
Baxter International | 9,904 | 504 | ||||||
Becton, Dickinson & Company | 8,840 | 668 | ||||||
Bristol-Myers Squibb | 8,664 | 233 | ||||||
C.R. Bard | 11,374 | 945 | ||||||
CareFusion = | 151 | 4 | ||||||
CIGNA | 31,445 | 1,106 | ||||||
Cooper 6 | 2,054 | 101 | ||||||
Covidien | 5,448 | 217 | ||||||
DENTSPLY International | 5,693 | 179 | ||||||
Eli Lilly | 12,483 | 439 | ||||||
Endo Pharmaceuticals Holdings = | 26,113 | 959 | ||||||
Forest Laboratories = | 9,592 | 317 | ||||||
Henry Schein = | 3,579 | 201 | ||||||
Hill-Rom Holdings | 3,612 | 140 | ||||||
Hospira = | 48 | 3 | ||||||
Humana = | 4,626 | 270 | ||||||
Johnson & Johnson | 38,288 | 2,438 | ||||||
Laboratory Corporation of America 6 = | 2,986 | 243 | ||||||
Medtronic | 14,449 | 509 | ||||||
Merck | 62,132 | 2,254 | ||||||
Mettler-Toledo International = | 7,413 | 968 | ||||||
Omnicare | 7,995 | 193 | ||||||
Pfizer | 176,248 | 3,067 | ||||||
Quest Diagnostics | 3,596 | 177 | ||||||
Stryker 6 | 812 | 40 | ||||||
Teleflex 6 | 2,364 | 132 | ||||||
Thermo Fisher Scientific = | 2,382 | 122 | ||||||
Thoratec = | 21,426 | 699 | ||||||
UnitedHealth Group | 33,338 | 1,202 | ||||||
WellPoint = | 24,231 | 1,317 | ||||||
Zimmer Holdings = | 10,608 | 503 | ||||||
22,142 | ||||||||
Industrials – 10.3% | ||||||||
3M | 13,421 | 1,130 | ||||||
Alliant Techsystems 6 = | 4,920 | 375 | ||||||
Armstrong World Industries 6 = | 4,868 | 203 | ||||||
Boeing | 5,907 | 417 | ||||||
Carlisle Companies | 13,795 | 484 | ||||||
Cintas 6 | 3,701 | 102 | ||||||
Danaher | 25,252 | 1,095 | ||||||
Deere & Company | 4,708 | 362 | ||||||
Dover | 10,450 | 555 | ||||||
Dun & Bradstreet | 7,435 | 553 | ||||||
Eaton | 2,509 | 223 | ||||||
Equifax | 5,276 | 175 | ||||||
FedEx | 5,357 | 470 | ||||||
General Dynamics | 16,476 | 1,122 | ||||||
General Electric | 80,241 | 1,285 | ||||||
Honeywell International | 11,062 | 521 | ||||||
IDEX 6 | 1,833 | 66 | ||||||
Illinois Tool Works | 9,622 | 440 | ||||||
ITT | 169 | 8 | ||||||
Landstar System | 6,927 | 261 | ||||||
Lennox International | 7,407 | 304 | ||||||
Lockheed Martin | 8,076 | 576 | ||||||
Monster Worldwide 6 = | 3,873 | 70 | ||||||
Norfolk Southern | 5,230 | 322 | ||||||
Northrop Grumman | 12,764 | 807 | ||||||
Owens Corning = | 5,941 | 161 | ||||||
Pall | 1,980 | 84 | ||||||
Parker Hannifin | 912 | 70 | ||||||
Pentair 6 | 8,449 | 276 | ||||||
Pitney Bowes 6 | 6,865 | 151 | ||||||
Raytheon | 5,495 | 253 | ||||||
Roper Industries 6 | 4,139 | 287 | ||||||
Snap-On | 3,212 | 164 | ||||||
Timken | 3,389 | 140 | ||||||
Toro | 14,186 | 805 | ||||||
Towers Watson, Class A 6 | 6,754 | 347 | ||||||
United Parcel Service, Class B 6 | 16,221 | 1,092 | ||||||
United Technologies | 19,819 | 1,482 | ||||||
URS = | 5,170 | 201 | ||||||
UTi Worldwide 6 | 34,454 | 662 | ||||||
Valmont Industries | 5,228 | 412 | ||||||
W.W. Grainger 6 | 3,208 | 398 | ||||||
Waste Connections = | 15,975 | 651 | ||||||
Waste Management | 42,323 | 1,512 | ||||||
21,074 | ||||||||
Information Technology – 24.6% | ||||||||
Advanced Micro Devices = | 499 | 4 | ||||||
Agilent Technologies = | 12,123 | 422 | ||||||
Akamai Technologies = | 6,943 | 359 | ||||||
Amdocs 6 = | 30,071 | 923 | ||||||
Amphenol, Class A | 8,134 | 408 | ||||||
Analog Devices | 6,208 | 209 | ||||||
Apple = | 12,036 | 3,621 | ||||||
Applied Materials | 6,313 | 78 | ||||||
Automatic Data Processing | 17,685 | 786 | ||||||
Avago Technologies = | 7,259 | 179 | ||||||
AVX | 130,497 | 1,871 | ||||||
Broadcom, Class A 6 | 26,321 | 1,072 | ||||||
Broadridge Financial Solutions | 12,160 | 267 | ||||||
CA | 8,599 | 200 | ||||||
Cisco Systems = | 132,689 | 3,029 | ||||||
Cognizant Technology Solutions, Class A = | 3,291 | 215 | ||||||
Computer Sciences | 15,098 | 741 | ||||||
Compuware = | 114,654 | 1,148 | ||||||
Corning | 47,873 | 875 | ||||||
Dell = | 55,572 | 799 | ||||||
DST Systems 6 | 6,768 | 293 | ||||||
eBay = | 34,323 | 1,023 | ||||||
EMC = | 28,423 | 597 | ||||||
Fairchild Semiconductor International = | 4,368 | 49 | ||||||
FLIR Systems 6 = | 6,136 | 171 | ||||||
Google, Class A = | 4,609 | 2,825 | ||||||
Harris | 28,400 | 1,283 |
The accompanying notes are an integral part of the financial statements.
82 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Quantitative Large Cap Core Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Hewlett-Packard | 57,201 | $ | 2,406 | |||||
IBM | 19,317 | 2,774 | ||||||
Intel | 108,662 | 2,181 | ||||||
Jabil Circuit | 71,675 | 1,099 | ||||||
Lam Research 6 = | 5,174 | 237 | ||||||
Lender Processing Services | 4,403 | 127 | ||||||
Lexmark International, Class A = | 13,400 | 510 | ||||||
Marvell Technology Group = | 39,159 | 756 | ||||||
Maxim Integrated Products 6 | 351 | 8 | ||||||
McAfee = | 1,761 | 83 | ||||||
Micron Technology 6 = | 7,720 | 64 | ||||||
Microsoft | 179,290 | 4,776 | ||||||
Motorola = | 40,390 | 329 | ||||||
NCR = | 22,691 | 311 | ||||||
Novellus Systems 6 = | 10,916 | 319 | ||||||
Oracle | 60,163 | 1,769 | ||||||
Polycom 6 = | 24,019 | 811 | ||||||
QLogic 6 = | 11,964 | 210 | ||||||
QUALCOMM | 43,121 | 1,946 | ||||||
SAIC = | 25,580 | 397 | ||||||
SanDisk = | 8,746 | 329 | ||||||
Synopsys = | 4,699 | 120 | ||||||
Tellabs 6 | 102,602 | 700 | ||||||
Texas Instruments | 63,889 | 1,889 | ||||||
Total System Services | 11,838 | 185 | ||||||
Trimble Navigation = | 20,472 | 734 | ||||||
Varian Semiconductor Equipment Associates = | 2,545 | 83 | ||||||
Vishay Intertechnology = | 18,953 | 214 | ||||||
Vishay Precision Group 6 = | 18,473 | 314 | ||||||
Waters = | 1,691 | 125 | ||||||
Western Digital = | 12,472 | 399 | ||||||
Western Union | 9,011 | 159 | ||||||
Xilinx 6 | 5,913 | 159 | ||||||
Yahoo! 6 = | 5,607 | 93 | ||||||
50,063 | ||||||||
Materials – 7.3% | ||||||||
Albemarle | 4,830 | 242 | ||||||
Allegheny Technologies 6 | 4,301 | 227 | ||||||
AptarGroup | 3,563 | 160 | ||||||
Ashland | 17,757 | 917 | ||||||
Ball | 16,792 | 1,081 | ||||||
Bemis | 281 | 9 | ||||||
Carpenter Technology 6 | 11,346 | 405 | ||||||
Celanese, Class A 6 | 19,239 | 686 | ||||||
Cliffs Natural Resources 6 | 7,176 | 468 | ||||||
Compass Minerals International | 1,066 | 84 | ||||||
Crown Holdings = | 14,426 | 464 | ||||||
Dow Chemical | 14,183 | 437 | ||||||
E.I. Du Pont de Nemours | 9,679 | 458 | ||||||
Eagle Materials | 1,853 | 43 | ||||||
Eastman Chemical | 8,602 | 676 | ||||||
FMC | 8,675 | 634 | ||||||
Greif, Class A | 7,189 | 422 | ||||||
International Flavors & Fragrances | 2,722 | 136 | ||||||
International Paper | 427 | 11 | ||||||
Lubrizol | 3,836 | 393 | ||||||
Monsanto | 3,294 | 196 | ||||||
Newmont Mining | 2,930 | 178 | ||||||
Nucor 6 | 4,901 | 187 | ||||||
Packaging Corporation of America | 13,059 | 319 | ||||||
Pactiv = | 26,496 | 879 | ||||||
PPG Industries | 5,191 | 398 | ||||||
Praxair | 6,073 | 555 | ||||||
Reliance Steel & Aluminum | 3,333 | 139 | ||||||
Schnitzer Steel Industries, Class A | 2,332 | 121 | ||||||
Scotts Miracle-Gro, Class A | 21,076 | 1,125 | ||||||
Sealed Air | 12,562 | 291 | ||||||
Sonoco Products | 16,425 | 550 | ||||||
Temple-Inland | 44,244 | 917 | ||||||
Titanium Metals 6 = | 7,510 | 148 | ||||||
Valspar | 25,690 | 825 | ||||||
14,781 | ||||||||
Telecommunication Services – 3.5% | ||||||||
AT&T | 95,480 | 2,721 | ||||||
CenturyLink 6 | 22,129 | 916 | ||||||
Frontier Communications 6 | 61,677 | 542 | ||||||
Qwest Communications International | 84,506 | 558 | ||||||
Verizon Communications | 51,294 | 1,665 | ||||||
Windstream | 57,274 | 725 | ||||||
7,127 | ||||||||
Utilities – 0.2% | ||||||||
Constellation Energy Group | 1,731 | 52 | ||||||
Energen | 6,735 | 301 | ||||||
Sempra Energy | 2,786 | 149 | ||||||
502 | ||||||||
Total Common Stocks | ||||||||
(Cost $191,697) | 200,569 | |||||||
Short-Term Investments – 1.6% | ||||||||
Money Market Fund – 0.4% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | 872,552 | 873 | ||||||
U.S. Treasury Obligation – 1.2% | ||||||||
U.S. Treasury Bill | ||||||||
0.185%, 11/04/2010 | $ | 2,300 | 2,300 | |||||
Total Short-Term Investments | ||||||||
(Cost $3,173) | 3,173 | |||||||
Investment Purchased with Proceeds from Securities Lending – 13.1% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Å † | ||||||||
(Cost $26,604) | 26,604,460 | 26,604 | ||||||
Total Investments 5 – 113.2% | ||||||||
(Cost $221,474) | 230,346 | |||||||
Other Assets and Liabilities, Net – (13.2)% | (26,763 | ) | ||||||
Total Net Assets – 100.0% | $ | 203,583 | ||||||
> | 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 October 31, 2010. Total loaned securities had a fair value of $25,729 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | 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. | |
Ω | The rate shown is the annualized seven-day effective yield as of October 31, 2010. | |
† | 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 83
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Quantitative Large Cap Core Fund (concluded)
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $221,784. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 15,631 | ||
Gross unrealized depreciation | (7,069 | ) | ||
Net unrealized appreciation | $ | 8,562 | ||
REIT – Real Estate Investment Trust
Quantitative Large Cap Core Fund (concluded)
Real Estate Securities Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 98.9% ⊳ | ||||||||
Apartments – 15.1% | ||||||||
Apartment Investment & Management, Class A 6 ⊲ | 98,883 | $ | 2,305 | |||||
Associated Estates Realty ⊲ | 571,258 | 7,935 | ||||||
Avalonbay Communities 6 ⊲ | 1,133,796 | 120,534 | ||||||
BRE Properties 6 ⊲ | 565,623 | 24,282 | ||||||
Camden Property Trust 6 ⊲ | 552,962 | 27,421 | ||||||
Equity Residential Properties Trust 6 ⊲ | 2,330,434 | 113,329 | ||||||
Essex Property Trust 6 ⊲ | 364,897 | 41,219 | ||||||
Mid-America Apartment Communities 6 ⊲ | 413,773 | 25,253 | ||||||
Post Properties 6 ⊲ | 71,785 | 2,185 | ||||||
364,463 | ||||||||
Community Centers – 8.7% | ||||||||
Acadia Realty Trust ⊲ | 1,009,812 | 19,267 | ||||||
Agree Realty ⊲ | 8,998 | 229 | ||||||
Developers Diversified Realty 6 ⊲ | 2,151,205 | 27,751 | ||||||
Equity One 6 ⊲ | 61,754 | 1,155 | ||||||
Federal Realty Investment Trust 6 ⊲ | 373,012 | 30,579 | ||||||
Kimco Realty 6 ⊲ | 1,276,412 | 21,993 | ||||||
Kite Realty Group Trust ⊲ | 507,480 | 2,426 | ||||||
Ramco-Gershenson Properties Trust ⊲ | 1,640,877 | 19,001 | ||||||
Regency Centers 6 ⊲ | 474,782 | 20,026 | ||||||
Saul Centers ⊲ | 267,901 | 11,434 | ||||||
Tanger Factory Outlet Centers 6 ⊲ | 31,575 | 1,513 | ||||||
Urstadt Biddle Properties, Class A 6 ⊲ | 635,689 | 12,212 | ||||||
Weingarten Realty Investors 6 ⊲ | 1,753,327 | 42,308 | ||||||
209,894 | ||||||||
Diversified – 4.8% | ||||||||
Colonial Properties Trust 6 ⊲ | 173,643 | 3,114 | ||||||
Coresite Realty 6 ⊲ = | 594,176 | 8,948 | ||||||
Cousins Properties 6 ⊲ | 3,261,859 | 24,170 | ||||||
Forest City Enterprises, Class A 6 = | 492,015 | 7,179 | ||||||
Vornado Realty Trust 6 ⊲ | 830,099 | 72,542 | ||||||
Washington Real Estate Investment Trust 6 ⊲ | 34,735 | 1,113 | ||||||
117,066 | ||||||||
Healthcare – 12.3% | ||||||||
Assisted Living Concepts, Class A = | 4,795 | 155 | ||||||
Capital Senior Living 6 = | 416,284 | 2,481 | ||||||
Cogdell Spencer 6 ⊲ | 1,123,933 | 7,384 | ||||||
HCP 6 ⊲ | 2,393,450 | 86,188 | ||||||
Health Care 6 ⊲ | 665,107 | 33,987 | ||||||
Healthcare Realty Trust 6 ⊲ | 1,410,793 | 34,057 | ||||||
LTC Properties ⊲ | 746,355 | 20,786 | ||||||
Nationwide Health Properties ⊲ | 283,942 | 11,593 | ||||||
OMEGA Healthcare Investors 6 ⊲ | 37,019 | 851 | ||||||
Parkway Life ⊲ | 3,263,258 | 4,213 | ||||||
Ventas 6 ⊲ | 1,774,690 | 95,052 | ||||||
296,747 | ||||||||
Hotels – 7.7% | ||||||||
Chatham Lodging Trust 6 = | 147,698 | 2,724 | ||||||
Chesapeake Lodging Trust ⊲ | 507,868 | 9,132 | ||||||
DiamondRock Hospitality 6 ⊲ | 132,365 | 1,400 | ||||||
Host Hotels & Resorts 6 ⊲ | 4,220,776 | 67,068 | ||||||
Hyatt Hotels, Class A 6 = | 354,458 | 14,285 | ||||||
LaSalle Hotel Properties 6 ⊲ | 934,923 | 22,148 | ||||||
Marcus 6 | 226,348 | 2,902 | ||||||
Marriott International, Class A 6 | 841,552 | 31,179 | ||||||
Pebblebrook Hotel Trust ⊲ = | 1,290,254 | 25,276 | ||||||
Starwood Hotels & Resorts Worldwide | 90,569 | 4,903 | ||||||
Sunstone Hotel Investors 6 ⊲ = | 503,072 | 5,458 | ||||||
186,475 | ||||||||
The accompanying notes are an integral part of the financial statements.
84 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Real Estate Securities Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Industrials – 7.4% | ||||||||
AMB Property 6 ⊲ | 1,403,537 | $ | 39,566 | |||||
DCT Industrial Trust 6 ⊲ | 2,239,591 | 11,220 | ||||||
EastGroup Properties 6 ⊲ | 618,112 | 25,021 | ||||||
First Potomac Realty Trust ⊲ | 486,812 | 8,023 | ||||||
Mapletree Logistics Trust ⊲ | 309,275 | 215 | ||||||
Mitsubishi Logistics | 222,590 | 2,692 | ||||||
Prologis 6 ⊲ | 3,102,457 | 42,349 | ||||||
PS Business Parks ⊲ | 657,817 | 38,982 | ||||||
Terreno Realty 6 ⊲ = ◖ | 552,301 | 10,008 | ||||||
178,076 | ||||||||
Infrastructure – 1.4% | ||||||||
American Tower, Class A 6 = | 151,213 | 7,804 | ||||||
Brookfield Asset Management, Class A | 499,042 | 14,831 | ||||||
Crown Castle International = | 69,483 | 2,996 | ||||||
Hopewell Holdings | 486 | 2 | ||||||
Standard Parking = | 439,505 | 7,511 | ||||||
33,144 | ||||||||
Malls – 13.1% | ||||||||
Glimcher Realty Trust ⊲ | 1,136,239 | 8,533 | ||||||
Macerich 6 ⊲ | 1,315,933 | 58,704 | ||||||
Simon Property Group 6 ⊲ | 2,279,797 | 218,906 | ||||||
Taubman Centers 6 ⊲ | 689,700 | 32,016 | ||||||
318,159 | ||||||||
Manufactured Homes – 0.9% | ||||||||
Equity Lifestyle Properties 6 ⊲ | 397,981 | 22,653 | ||||||
Net Lease – 1.5% | ||||||||
Getty Realty 6 ⊲ | 120,349 | 3,431 | ||||||
National Retail Properties 6 ⊲ | 904,190 | 24,503 | ||||||
Realty Income 6 ⊲ | 277,380 | 9,509 | ||||||
37,443 | ||||||||
Office – 18.4% | ||||||||
Alexandria Real Estate Equities 6 ⊲ | 639,712 | 47,006 | ||||||
BioMed Realty Trust 6 ⊲ | 891,251 | 16,354 | ||||||
Boston Properties 6 ⊲ | 1,200,987 | 103,513 | ||||||
Brandywine Realty Trust 6 ⊲ | 863,782 | 10,340 | ||||||
Corporate Office Properties Trust 6 ⊲ | 297,754 | 10,567 | ||||||
Digital Realty Trust 6 ⊲ | 818,792 | 48,906 | ||||||
Douglas Emmett ⊲ | 120,645 | 2,164 | ||||||
Duke Realty 6 ⊲ | 2,639,143 | 32,910 | ||||||
DuPont Fabros Technology 6 ⊲ | 939,656 | 23,585 | ||||||
Hudson Pacific Properties ⊲ | 355,723 | 5,692 | ||||||
Kilroy Realty 6 ⊲ | 449,572 | 15,362 | ||||||
Liberty Property Trust 6 ⊲ | 1,055,816 | 35,328 | ||||||
Mack-Cali Realty ⊲ | 1,353,040 | 45,435 | ||||||
Mission West Properties 6 ⊲ | 183,269 | 1,228 | ||||||
Parkway Properties ⊲ | 99,838 | 1,554 | ||||||
Piedmont Office Realty Trust, Class A 6 ⊲ | 244,919 | 4,622 | ||||||
SL Green Realty 6 ⊲ | 616,101 | 40,490 | ||||||
445,056 | ||||||||
Real Estate Service Provider – 0.0% | ||||||||
HFF = | 33,588 | 330 | ||||||
Self Storage – 6.7% | ||||||||
Extra Space Storage ⊲ | 770,661 | 12,485 | ||||||
Public Storage 6 ⊲ | 1,221,624 | 121,209 | ||||||
Sovran Self Storage 6 ⊲ | 448,802 | 17,535 | ||||||
U-Store-It Trust 6 ⊲ | 1,284,581 | 11,060 | ||||||
162,289 | ||||||||
Student Housing – 0.9% | ||||||||
American Campus Communities 6 ⊲ | 564,877 | 17,867 | ||||||
Campus Crest Communities ⊲ = | 268,453 | 3,356 | ||||||
Education Realty Trust ⊲ | 229,413 | 1,720 | ||||||
22,943 | ||||||||
Total Common Stocks | ||||||||
(Cost $2,028,566) | 2,394,738 | |||||||
Private Real Estate Company – 0.0% | ||||||||
Newcastle Investment Holdings ⊲ = ¥ ⊡ | ||||||||
(Cost $153) | 35,000 | 33 | ||||||
Short-Term Investment – 2.3% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $56,919) | 56,918,707 | 56,919 | ||||||
Investment Purchased with Proceeds from Securities Lending – 27.5% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $664,673) | 664,672,593 | 664,673 | ||||||
Total Investments 5 – 128.7% | ||||||||
(Cost $2,750,311) | 3,116,363 | |||||||
Other Assets and Liabilities, Net – (28.7)% | (695,519 | ) | ||||||
Total Net Assets – 100.0% | $ | 2,420,844 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
⊳ | The fund is primarily invested in the Real Estate sector and therefore is subject to additional risks. See notes 1 and 6 in Notes to Financial Statements. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $642,162 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
⊲ | Real Estate Investment Trust. As of October 31, 2010, the fair value of these investments was $2,295,521 or 94.8% of total net assets. | |
= | Non-income producing security. | |
◖ | A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represent 5% or more of the outstanding voting securities of the company. Transactions with companies that are or were affiliates during the fiscal year ended October 31, 2010 are as follows: |
Beginning | Purchase | Sales | Ending | Dividend | Fair | |||||||||||||||||||||||
Issuer | Cost | Cost | Cost | Cost | Income | Shares | Value | |||||||||||||||||||||
Terreno Realty | $ | — | $ | 10,472 | $ | — | $ | 10,472 | $ | — | 552,301 | $ | 10,008 |
¥ | Security considered illiquid. As of October 31, 2010, the fair value of the fund’s investments in securities considered to be illiquid was $33 or 0.0% of total net assets. See note 2 in notes to Financial Statements. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the fair value of this investment was $33 or 0.0% 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 October 31, 2010. | |
† | 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 85
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Real Estate Securities Fund (concluded)
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $2,809,464. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 319,783 | ||
Gross unrealized depreciation | (12,884 | ) | ||
Net unrealized appreciation | $ | 306,899 | ||
Real Estate Securities Fund (concluded)
Small Cap Growth Opportunities Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 96.6% | ||||||||
Consumer Discretionary – 20.3% | ||||||||
AnnTaylor Stores 6 = | 131,708 | $ | 3,069 | |||||
Buffalo Wild Wings 6 = | 64,666 | 3,041 | ||||||
Crocs = | 135,646 | 1,890 | ||||||
Dress Barn 6 = | 95,784 | 2,197 | ||||||
Hibbett Sports 6 = | 75,346 | 2,031 | ||||||
J. Crew Group 6 = | 79,400 | 2,540 | ||||||
Lumber Liquidators Holdings 6 = | 79,724 | 1,920 | ||||||
Penske Automotive Group 6 = | 172,138 | 2,315 | ||||||
Polaris Industries 6 | 37,559 | 2,670 | ||||||
Sotheby’s Holdings, Class A | 24,432 | 1,071 | ||||||
Texas Roadhouse 6 = | 174,762 | 2,684 | ||||||
Tractor Supply 6 | 60,607 | 2,400 | ||||||
Warnaco Group = | 64,186 | 3,409 | ||||||
WMS Industries 6 = | 55,729 | 2,432 | ||||||
Wolverine World Wide | 145,955 | 4,250 | ||||||
37,919 | ||||||||
Energy – 5.1% | ||||||||
Atlas Energy 6 = | 72,145 | 2,101 | ||||||
Dril-Quip 6 = | 21,416 | 1,480 | ||||||
Key Energy Services = | 197,006 | 1,940 | ||||||
Lufkin Industries | 39,926 | 1,950 | ||||||
Oasis Petroleum 6 = | 92,706 | 1,972 | ||||||
9,443 | ||||||||
Financials – 3.9% | ||||||||
Associated Banc 6 | 199,170 | 2,524 | ||||||
KBW 6 | 81,471 | 2,061 | ||||||
Stifel Financial 6 = | 58,366 | 2,766 | ||||||
7,351 | ||||||||
Healthcare – 18.7% | ||||||||
Acorda Therapeutics 6 = | 65,506 | 1,771 | ||||||
Align Technology = | 132,682 | 2,259 | ||||||
Alkermes = | 84,438 | 977 | ||||||
Catalyst Health Solutions = | 60,861 | 2,304 | ||||||
Cubist Pharmaceuticals = | 74,502 | 1,734 | ||||||
Haemonetics = | 43,882 | 2,398 | ||||||
Halozyme Therapeutics 6 = | 164,631 | 1,207 | ||||||
HealthSouth = | 160,790 | 2,909 | ||||||
ICON – ADR = | 87,949 | 1,702 | ||||||
ICU Medical = | 72,833 | 2,658 | ||||||
LHC Group 6 = | 69,505 | 1,870 | ||||||
Masimo 6 | 61,059 | 1,842 | ||||||
Nektar Therapeutics 6 = | 150,246 | 2,189 | ||||||
Onyx Pharmaceuticals = | 82,301 | 2,208 | ||||||
Salix Pharmaceuticals 6 = | 51,841 | 1,961 | ||||||
Thoratec 6 = | 52,440 | 1,712 | ||||||
Zoll Medical 6 = | 96,705 | 3,146 | ||||||
34,847 | ||||||||
Industrials – 16.8% | ||||||||
Actuant, Class A 6 | 121,466 | 2,729 | ||||||
Altra Holdings = | 148,025 | 2,191 | ||||||
BE Aerospace 6 = | 38,349 | 1,410 | �� | |||||
Clean Harbors 6 = | 43,840 | 3,091 | ||||||
GrafTech International = | 160,701 | 2,647 | ||||||
Interface, Class A 6 | 161,194 | 2,319 | ||||||
Kaydon | 75,547 | 2,634 | ||||||
MasTec = | 244,476 | 2,983 | ||||||
Old Dominion Freight Line = | 94,369 | 2,647 | ||||||
Orbital Sciences = | 155,344 | 2,523 | ||||||
Satcon Technology = | 444,830 | 1,788 | ||||||
Tetra Tech = | 115,735 | 2,437 |
The accompanying notes are an integral part of the financial statements.
86 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Growth Opportunities Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
TrueBlue = | 142,498 | $ | 2,002 | |||||
31,401 | ||||||||
Information Technology ⊳ – 28.0% | ||||||||
ADTRAN | 83,407 | 2,691 | ||||||
Atheros Communications 6 = | 105,437 | 3,273 | ||||||
Blackboard 6 = | 61,494 | 2,567 | ||||||
Kenexa 6 = | 135,648 | 2,481 | ||||||
LoopNet = | 197,217 | 2,081 | ||||||
MICROS Systems = | 42,367 | 1,923 | ||||||
MKS Instruments = | 99,832 | 2,061 | ||||||
Multi-Fineline Electronix = | 101,454 | 2,484 | ||||||
National Instruments | 62,209 | 2,164 | ||||||
Perficient = | 226,384 | 2,391 | ||||||
Pericom Semiconductor = | 211,108 | 1,989 | ||||||
Plantronics 6 | 84,166 | 3,020 | ||||||
PMC-Sierra = | 438,045 | 3,369 | ||||||
QLogic 6 = | 151,644 | 2,664 | ||||||
Quest Software = | 92,715 | 2,426 | ||||||
RF Micro Devices = | 380,434 | 2,773 | ||||||
Solarwinds 6 = | 157,590 | 2,860 | ||||||
Varian Semiconductor Equipment Associates = | 63,219 | 2,065 | ||||||
Verigy = | 247,031 | 2,263 | ||||||
VideoPropulsion = ¥ ⊡ | 780,460 | — | ||||||
Virtusa 6 = | 143,680 | 2,049 | ||||||
Vocus 6 = | 119,005 | 2,636 | ||||||
52,230 | ||||||||
Materials – 2.3% | ||||||||
Arch Chemicals | 58,812 | 2,088 | ||||||
Louisiana-Pacific = | 285,865 | 2,213 | ||||||
4,301 | ||||||||
Telecommunication Services – 1.5% | ||||||||
Neutral Tandem 6 = | 189,853 | 2,776 | ||||||
Total Common Stocks | ||||||||
(Cost $163,365) | 180,268 | |||||||
Warrant – 0.0% | ||||||||
Lantronix, Warrants = ¥ ⊡ | ||||||||
(Cost $0) | 11,236 | — | ||||||
Short-Term Investment – 4.1% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $7,626) | 7,625,647 | 7,626 | ||||||
Investment Purchased with Proceeds from Securities Lending – 32.7% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $60,995) | 60,994,639 | 60,995 | ||||||
Total Investments 5 – 133.4% | ||||||||
(Cost $231,986) | 248,889 | |||||||
Other Assets and Liabilities, Net – (33.4)% | (62,304 | ) | ||||||
Total Net Assets – 100.0% | $ | 186,585 | ||||||
Small Cap Growth Opportunities Fund (concluded)
> | 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 October 31, 2010. Total loaned securities had a fair value of $58,595 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
⊳ | The fund is significantly invested in this sector and therefore is subject to additional risks. See note 6 in Notes to Financial Statements. | |
¥ | Security considered illiquid. As of October 31, 2010, the fair value of the fund’s investments considered to be illiquid was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the fair value of these investments was $0 or 0.0% 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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $233,429. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 21,164 | ||
Gross unrealized depreciation | (5,704 | ) | ||
Net unrealized appreciation | $ | 15,460 | ||
ADR – American Depositary Receipt
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 87
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Growth Opportunities Fund (concluded)
Small Cap Select Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 97.7% | ||||||||
Consumer Discretionary – 15.3% | ||||||||
Amerigon = | 590,792 | $ | 6,369 | |||||
AnnTaylor Stores = 6 | 493,906 | 11,508 | ||||||
Bravo Brio Restaurant Group = 6 | 166,841 | 3,003 | ||||||
Buffalo Wild Wings = 6 | 119,839 | 5,636 | ||||||
Coinstar = 6 | 137,429 | 7,913 | ||||||
Collective Brands = 6 | 595,305 | 9,126 | ||||||
Dress Barn = 6 | 425,546 | 9,762 | ||||||
Fossil = | 118,601 | 6,996 | ||||||
Gaylord Entertainment = 6 | 82,325 | 2,745 | ||||||
Life Time Fitness = 6 | 170,394 | 6,156 | ||||||
McCormick & Schmick’s Seafood Restaurants = 6 | 411,891 | 3,678 | ||||||
Panera Bread, Class A = | 82,030 | 7,343 | ||||||
Quiksilver = | 970,033 | 4,045 | ||||||
ReachLocal = 6 | 143,301 | 2,449 | ||||||
Ryland Group 6 | 100,139 | 1,500 | ||||||
Tractor Supply 6 | 192,892 | 7,639 | ||||||
Valassis Communications = | 201,132 | 6,637 | ||||||
Warnaco Group = 6 | 189,001 | 10,038 | ||||||
WMS Industries = 6 | 150,862 | 6,582 | ||||||
119,125 | ||||||||
Consumer Staples – 1.9% | ||||||||
Hain Celestial Group = 6 | 452,917 | 11,201 | ||||||
Smart Balance = 6 | 934,136 | 3,325 | ||||||
14,526 | ||||||||
Energy – 5.5% | ||||||||
Concho Resources = 6 | 87,532 | 6,011 | ||||||
Delek US Holdings 6 | 399,756 | 2,938 | ||||||
Energy XXI = 6 | 128,470 | 2,793 | ||||||
James River Coal = 6 | 518,805 | 8,980 | ||||||
L & L Energy = 6 | 205,670 | 1,680 | ||||||
Lufkin Industries | 119,009 | 5,814 | ||||||
Parker Drilling = | 2,160,896 | 9,141 | ||||||
Whiting Petroleum = | 56,958 | 5,721 | ||||||
43,078 | ||||||||
Financials – 19.4% | ||||||||
Bank of the Ozarks 6 | 202,293 | 7,689 | ||||||
Calamos Asset Management, Class A 6 | 642,297 | 7,701 | ||||||
Cullen/Frost Bankers 6 | 127,702 | 6,697 | ||||||
CVB Financial 6 | 569,162 | 4,331 | ||||||
Delphi Financial Group, Class A 6 | 528,709 | 14,312 | ||||||
Dime Community Bancshares 6 | 381,447 | 5,565 | ||||||
Evercore Partners, Class A 6 | 350,842 | 10,652 | ||||||
Independent Bank 6 | 258,082 | 6,062 | ||||||
Knight Capital Group, Class A = 6 | 763,221 | 9,945 | ||||||
MGIC Investment = 6 | 1,394,667 | 12,301 | ||||||
Nara Bancorp = | 212,394 | 1,665 | ||||||
National Retail Properties – REIT 6 | 276,743 | 7,500 | ||||||
Piper Jaffray Companies = | 252,187 | 7,810 | ||||||
Platinum Underwriters Holdings | 107,441 | 4,625 | ||||||
PS Business Parks – REIT | 163,094 | 9,665 | ||||||
Senior Housing Properties Trust – REIT | 276,834 | 6,614 | ||||||
Terreno Realty – REIT = | 239,613 | 4,342 | ||||||
Umpqua Holdings 6 | 1,192,686 | 13,120 | ||||||
Waddell & Reed Financial, Class A 6 | 378,059 | 10,990 | ||||||
151,586 | ||||||||
Healthcare – 11.0% | ||||||||
Acorda Therapeutics = 6 | 27,872 | 754 | ||||||
Alexion Pharmaceuticals = 6 | 44,674 | 3,051 | ||||||
Cadence Pharmaceuticals = 6 | 442,138 | 3,926 | ||||||
Catalyst Health Solutions = | 98,336 | 3,722 | ||||||
Cepheid = 6 | 85,507 | 1,799 | ||||||
Cubist Pharmaceuticals = 6 | 63,229 | 1,472 | ||||||
Endologix = 6 | 1,583,470 | 8,757 | ||||||
Haemonetics = | 101,121 | 5,526 | ||||||
Incyte = 6 | 101,290 | 1,688 | ||||||
LHC Group = 6 | 170,352 | 4,582 | ||||||
MEDNAX = 6 | 170,131 | 10,073 | ||||||
Nektar Therapeutics = 6 | 93,693 | 1,365 | ||||||
Onyx Pharmaceuticals = | 61,226 | 1,643 | ||||||
Regeneron Pharmaceuticals = 6 | 151,878 | 3,961 | ||||||
Salix Pharmaceuticals = 6 | 178,010 | 6,734 | ||||||
Savient Pharmaceuticals = 6 | 53,652 | 666 | ||||||
Seattle Genetics = 6 | 90,261 | 1,479 | ||||||
Theravance = 6 | 55,293 | 1,127 | ||||||
Thoratec = | 363,447 | 11,863 | ||||||
Zoll Medical = 6 | 359,664 | 11,700 | ||||||
85,888 | ||||||||
Industrials – 15.3% | ||||||||
Actuant, Class A | 159,936 | 3,594 | ||||||
Allegiant Travel 6 | 153,216 | 7,215 | ||||||
BE Aerospace = 6 | 111,801 | 4,110 | ||||||
CBIZ = 6 | 864,170 | 5,116 | ||||||
Chart Industries = 6 | 219,072 | 5,104 | ||||||
GrafTech International = 6 | 698,889 | 11,511 | ||||||
IDEX 6 | 145,487 | 5,249 | ||||||
Interface, Class A | 663,189 | 9,543 | ||||||
Kaydon | 318,848 | 11,118 | ||||||
MasTec = 6 | 1,123,600 | 13,708 | ||||||
MYR Group = | 242,504 | 3,781 | ||||||
Old Dominion Freight Line = | 224,274 | 6,291 | ||||||
Orbital Sciences = | 513,807 | 8,344 | ||||||
Regal-Beloit | 207,796 | 11,992 | ||||||
Tetra Tech = | 283,833 | 5,978 | ||||||
United Rentals = 6 | 339,660 | 6,382 | ||||||
119,036 | ||||||||
Information Technology – 21.0% | ||||||||
Acme Packet = | 49,999 | 1,977 | ||||||
Advanced Analogic Technologies = 6 ◖ | 2,379,893 | 8,948 | ||||||
AsiaInfo Holdings = 6 | 329,503 | 7,322 | ||||||
CommVault Systems = | 456,398 | 13,204 | ||||||
Entropic Communications = 6 | 990,239 | 8,278 | ||||||
International Rectifier = 6 | 180,041 | 4,182 | ||||||
Kenexa = 6 | 617,776 | 11,299 | ||||||
Mellanox Technologies = 6 | 373,489 | 8,598 | ||||||
Polycom = 6 | 273,608 | 9,243 | ||||||
Progress Software = | 300,142 | 11,216 | ||||||
RF Micro Devices = | 1,266,804 | 9,235 | ||||||
Smith Micro Software = 6 | 962,401 | 11,703 | ||||||
Sourcefire = | 84,624 | 1,996 | ||||||
SPS Commerce = 6 | 241,748 | 3,191 | ||||||
STEC = 6 | 662,870 | 10,341 | ||||||
Taleo, Class A = | 306,869 | 8,804 | ||||||
Tessera Technologies = | 559,001 | 11,029 | ||||||
TTM Technologies = 6 | 309,585 | 3,244 | ||||||
ValueClick = 6 | 724,971 | 9,976 | ||||||
Vocus = 6 | 460,203 | 10,194 | ||||||
163,980 | ||||||||
Materials – 6.5% | ||||||||
Arch Chemicals | 219,637 | 7,799 | ||||||
Buckeye Technologies | 285,217 | 5,148 | ||||||
Horsehead Holding = | 364,445 | 3,984 | ||||||
Louisiana-Pacific = | 1,106,083 | 8,561 | ||||||
Rock-Tenn, Class A | 102,633 | 5,835 | ||||||
Schnitzer Steel Industries, Class A | 148,860 | 7,695 |
The accompanying notes are an integral part of the financial statements.
88 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Select Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
STR Holdings = 6 | 271,921 | $ | 6,757 | |||||
Thompson Creek Metals = 6 | 383,406 | 4,616 | ||||||
50,395 | ||||||||
Telecommunication Services – 0.9% | ||||||||
Cogent Communications Group = 6 | 620,646 | 6,734 | ||||||
Utilities – 0.9% | ||||||||
NSTAR 6 | 164,118 | 6,845 | ||||||
Total Common Stocks | ||||||||
(Cost $667,674) | 761,193 | |||||||
Warrants – 0.0% | ||||||||
Lantronix, Warrants = ¥ ⊡ | ||||||||
(Cost $0) | 5,143 | — | ||||||
Short-Term Investment – 2.5% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $19,522) | 19,522,201 | 19,522 | ||||||
Investment Purchased with Proceeds from Securities Lending – 38.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $300,888) | 300,887,638 | 300,888 | ||||||
Total Investments 5 – 138.8% | ||||||||
(Cost $988,084) | 1,081,603 | |||||||
Other Assets and Liabilities, Net – (38.8)% | (302,370 | ) | ||||||
Total Net Assets – 100.0% | $ | 779,233 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $291,138 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
◖ | A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings of that company represent 5% or more of the outstanding voting securities of the company. Transactions with companies that are or were affiliates during the fiscal period ended October 31, 2010 are as follows: |
Beginning | Purchase | Sales | Ending | Dividend | Fair | |||||||||||||||||||||||
Issuer | Cost | Cost | Cost | Cost | Income | Shares | Value | |||||||||||||||||||||
Advanced Analogic Technologies | $ | 12,299 | $ | 684 | $ | — | $ | 12,983 | $ | — | 2,379,893 | $ | 8,948 | |||||||||||||||
¥ | Security considered illiquid. As of October 31, 2010, the fair value of the fund’s investments in securities considered to be illiquid was $0 or 0.0% of total net assets. See note 2 in notes to Financial Statements. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the value of this investment was $0 or 0.0% 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 October 31, 2010. | |
† | 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. |
Small Cap Select Fund (concluded)
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $994,885. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 126,155 | ||
Gross unrealized depreciation | (39,437 | ) | ||
Net unrealized appreciation | $ | 86,718 | ||
REIT – Real Estate Investment Trust
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 89
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Select Fund (concluded)
Small Cap Value Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 97.2% | ||||||||
Consumer Discretionary – 12.8% | ||||||||
America’s Car-Mart = | 77,346 | $ | 2,063 | |||||
Coinstar = 6 | 38,637 | 2,225 | ||||||
Core-Mark Holding = 6 | 65,039 | 2,146 | ||||||
Domino’s Pizza = | 94,298 | 1,400 | ||||||
Group 1 Automotive = 6 | 83,306 | 2,937 | ||||||
Jo-Ann Stores = | 38,133 | 1,649 | ||||||
Jones Group | 125,741 | 1,818 | ||||||
Kirkland’s = | 99,641 | 1,340 | ||||||
OfficeMax = 6 | 160,334 | 2,838 | ||||||
Polaris Industries 6 | 34,443 | 2,449 | ||||||
Ryland Group 6 | 103,728 | 1,554 | ||||||
Sally Beauty Holdings = 6 | 239,031 | 2,909 | ||||||
Tenneco = | 74,470 | 2,429 | ||||||
27,757 | ||||||||
Consumer Staples – 0.7% | ||||||||
Spartan Stores 6 | 108,514 | 1,622 | ||||||
Energy – 7.3% | ||||||||
Berry Petroleum, Class A 6 | 105,819 | 3,620 | ||||||
Complete Production Services = | 97,517 | 2,285 | ||||||
Matrix Service = | 190,821 | 1,733 | ||||||
Natural Gas Services Group = | 99,491 | 1,567 | ||||||
Oil States International = | 35,054 | 1,792 | ||||||
Penn Virginia | 66,483 | 985 | ||||||
SM Energy 6 | 44,066 | 1,837 | ||||||
Swift Energy = | 61,551 | 1,960 | ||||||
15,779 | ||||||||
Financials ⊳ – 28.9% | ||||||||
Affiliated Managers Group = | 45,631 | 3,907 | ||||||
Alexandria Real Estate Equities – REIT 6 | 31,573 | 2,320 | ||||||
American Campus Communities – REIT 6 | 72,343 | 2,288 | ||||||
Apollo Investment 6 | 277,018 | 3,044 | ||||||
Bank of the Ozarks 6 | 71,237 | 2,708 | ||||||
Brandywine Realty Trust – REIT | 236,841 | 2,835 | ||||||
Cardtronics = | 152,599 | 2,587 | ||||||
CNO Financial Group = 6 | 394,882 | 2,148 | ||||||
Cogdell Spencer – REIT | 297,873 | 1,957 | ||||||
Community Bank System 6 | 117,029 | 2,735 | ||||||
Delphi Financial Group, Class A 6 | 98,916 | 2,678 | ||||||
DiamondRock Hospitality – REIT 6 | 348,305 | 3,685 | ||||||
East West Bancorp | 178,057 | 3,139 | ||||||
EZCORP, Class A = | 99,420 | 2,136 | ||||||
First Midwest Bancorp 6 | 128,092 | 1,372 | ||||||
FirstMerit 6 | 182,500 | 3,135 | ||||||
Flushing Financial | 85,453 | 1,124 | ||||||
FPIC Insurance Group = | 65,272 | 2,312 | ||||||
Heartland Financial USA 6 | 98,832 | 1,527 | ||||||
Home Properties – REIT 6 | 52,631 | 2,866 | ||||||
IBERIABANK 6 | 43,232 | 2,250 | ||||||
MGIC Investment = 6 | 279,409 | 2,464 | ||||||
Texas Capital Bancshares = 6 | 130,217 | 2,363 | ||||||
U-Store-It Trust – REIT | 322,691 | 2,778 | ||||||
WSFS Financial | 62,342 | 2,434 | ||||||
62,792 | ||||||||
Healthcare – 5.5% | ||||||||
AMERIGROUP = | 25,915 | 1,082 | ||||||
BioScrip = 6 | 331,598 | 1,867 | ||||||
DepoMed = | 113,632 | 556 | ||||||
Greatbatch = 6 | 72,274 | 1,572 | ||||||
Hanger Orthopedic Group = 6 | 83,768 | 1,568 | ||||||
ICON – ADR = | 67,769 | 1,311 | ||||||
LHC Group = | 74,344 | 2,000 | ||||||
MEDNAX = | 34,341 | 2,033 | ||||||
11,989 | ||||||||
Industrials – 16.2% | ||||||||
Altra Holdings = | 171,141 | 2,533 | ||||||
Atlas Air Worldwide Holdings = | 66,248 | 3,462 | ||||||
Brady, Class A | 87,149 | 2,680 | ||||||
Douglas Dynamics | 93,373 | 1,346 | ||||||
EMCOR Group = | 105,024 | 2,715 | ||||||
Ennis | 84,685 | 1,528 | ||||||
GrafTech International = | 203,673 | 3,354 | ||||||
Interface, Class A | 226,970 | 3,266 | ||||||
Old Dominion Freight Line = | 100,126 | 2,808 | ||||||
PHH = 6 | 106,316 | 2,049 | ||||||
Regal-Beloit | 38,024 | 2,194 | ||||||
SFN Group = 6 | 325,419 | 2,467 | ||||||
Sterling Construction = 6 | 131,553 | 1,605 | ||||||
Triumph Group | 38,747 | 3,239 | ||||||
35,246 | ||||||||
Information Technology – 14.1% | ||||||||
Amkor Technology = 6 | 169,916 | 1,225 | ||||||
Bottomline Technologies = | 106,178 | 1,913 | ||||||
CACI International, Class A = | 36,332 | 1,821 | ||||||
Kenexa = | 93,920 | 1,718 | ||||||
MKS Instruments = | 99,505 | 2,055 | ||||||
Perficient = | 238,093 | 2,514 | ||||||
Plantronics 6 | 70,467 | 2,528 | ||||||
PMC-Sierra = | 263,575 | 2,027 | ||||||
Polycom = 6 | 76,470 | 2,583 | ||||||
Progress Software = | 64,215 | 2,400 | ||||||
RF Micro Devices = | 265,844 | 1,938 | ||||||
Rogers = 6 | 76,165 | 2,712 | ||||||
TTM Technologies = 6 | 335,809 | 3,519 | ||||||
Virtusa = | 113,927 | 1,625 | ||||||
30,578 | ||||||||
Materials – 6.8% | ||||||||
Arch Chemicals | 55,726 | 1,979 | ||||||
Buckeye Technologies | 218,267 | 3,940 | ||||||
Commercial Metals 6 | 124,745 | 1,731 | ||||||
Kraton Performance Polymers = | 32,968 | 1,070 | ||||||
Minerals Technologies | 28,794 | 1,689 | ||||||
Packaging Corp of America | 68,648 | 1,677 | ||||||
Rockwood Holdings = 6 | 42,532 | 1,443 | ||||||
Schnitzer Steel Industries, Class A | 22,187 | 1,147 | ||||||
14,676 | ||||||||
Telecommunication Services – 1.3% | ||||||||
NTELOS Holdings | 73,208 | 1,330 | ||||||
PAETEC Holding = | 367,844 | 1,552 | ||||||
2,882 | ||||||||
Utilities – 3.6% | ||||||||
Atmos Energy | 71,119 | 2,094 | ||||||
El Paso Electric = | 77,515 | 1,907 | ||||||
UIL Holdings 6 | 62,500 | 1,810 | ||||||
Unitil 6 | 93,777 | 2,037 | ||||||
7,848 | ||||||||
Total Common Stocks | ||||||||
(Cost $186,829) | 211,169 | |||||||
Exchange-Traded Fund – 0.7% | ||||||||
SPDR S&P Metals & Mining 6 | ||||||||
(Cost $1,489) | 26,466 | 1,482 | ||||||
The accompanying notes are an integral part of the financial statements.
90 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Value Fund (concluded) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Short-Term Investment – 1.7% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | ||||||||
(Cost $3,731) | 3,730,698 | $ | 3,731 | |||||
Investment Purchased with Proceeds from Securities Lending – 25.6% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $55,582) | 55,581,567 | 55,582 | ||||||
Total Investments 5 – 125.2% | ||||||||
(Cost $247,631) | 271,964 | |||||||
Other Assets and Liabilities, Net – (25.2)% | (54,803 | ) | ||||||
Total Net Assets – 100.0% | $ | 217,161 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $53,686 at October 31, 2010. See 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. | |
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 October 31, 2010. | |
† | 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 October 31, 2010, the cost of investments for federal income tax purposes was $247,682. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 37,996 | ||
Gross unrealized depreciation | (13,714 | ) | ||
Net unrealized appreciation | $ | 24,282 | ||
REIT – Real Estate Investment Trust
Fund (concluded)
Tactical Market Opportunities Fund | ||||||||
DESCRIPTION | SHARES/PAR | FAIR VALUE > | ||||||
Exchange-Traded Funds – 36.3% | ||||||||
iShares Barclays 1-3 Year Credit Bond Fund | 33,800 | $ | 3,557 | |||||
iShares Barclays MBS Bond Fund | 10,000 | 1,097 | ||||||
iShares iBoxx $ High Yield Corporate Bond Fund | 16,100 | 1,461 | ||||||
iShares JPMorgan USD Emerging Markets Bond Fund | 13,500 | 1,526 | ||||||
iShares S&P U.S. Preferred Stock Index Fund | 34,000 | 1,347 | ||||||
Market Vectors Russia | 18,300 | 628 | ||||||
Utilities Select Sector SPDR | 9,200 | 292 | ||||||
Total Exchange-Traded Funds (Cost $9,814) | 9,908 | |||||||
U.S. Government & Agency Security – 10.8% | ||||||||
U.S. Treasury Obligation – 10.8% | ||||||||
U.S. Treasury Bond | ||||||||
4.500%, 08/15/2039 | ||||||||
(Cost $2,710) | $ | 2,710 | 2,947 | |||||
Short-Term Investments – 53.1% | ||||||||
Money Market Fund – 48.0% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | 13,091,672 | 13,092 | ||||||
U.S. Treasury Obligations – 5.1% | ||||||||
U.S. Treasury Bills o | ||||||||
0.185%, 11/04/2010 | $ | 275 | 275 | |||||
0.150%, 04/07/2011 | 100 | 100 | ||||||
0.157%, 04/14/2011 | 1,025 | 1,024 | ||||||
1,399 | ||||||||
Total Short-Term Investments | ||||||||
(Cost $14,491) | 14,491 | |||||||
Total Investments 5 – 100.2% | ||||||||
(Cost $27,229) | 27,346 | |||||||
Other Assets and Liabilities, Net – (0.2)% | (46 | ) | ||||||
Total Net Assets – 100.0% | $ | 27,300 | ||||||
> | Securities are valued in accordance with procedures described in 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 October 31, 2010. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 2010. See note 2 in Notes to Financial Statements. | |
5 | On October 31, 2010, the cost of investments for federal income tax purposes was $27,234. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 150 | ||
Gross unrealized depreciation | (38 | ) | ||
Net unrealized appreciation | $ | 112 | ||
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Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Tactical Market Opportunities Fund (concluded)
Schedule of Open Futures Contracts
Number of | |||||||||||||||
Contracts | Notional | Unrealized | |||||||||||||
Settlement | Purchased | Contract | Appreciation | ||||||||||||
Description | Month | (Sold) | Value | (Depreciation) | |||||||||||
DAX Index Futures | December 2010 | 10 | $ | 2,303 | $ | 55 | |||||||||
E-Mini MSCI EAFE Index Futures | December 2010 | (16 | ) | (1,292) | (15 | ) | |||||||||
E-Mini MSCI Emerging Markets Index Futures | December 2010 | 26 | 1,443 | 24 | |||||||||||
FTSE/JSE Top 40 Index Futures | December 2010 | 42 | 1,632 | 37 | |||||||||||
H-Shares Index Futures | November 2010 | 26 | 2,200 | (88 | ) | ||||||||||
IBEX 35 Index Futures | November 2010 | (10 | ) | (1,491) | (1 | ) | |||||||||
Mexican Bolsa Index Futures | December 2010 | (37 | ) | (1,068) | (41 | ) | |||||||||
Russell 2000 Mini Index Futures | December 2010 | (47 | ) | (3,300) | (72 | ) | |||||||||
S&P 500 E-Mini Futures | December 2010 | 54 | 3,185 | 55 | |||||||||||
S&P TSE 60 Futures | December 2010 | (5 | ) | (713) | (7 | ) | |||||||||
SGX S&P CNX Nifty Index Futures | November 2010 | (115 | ) | (1,389) | 23 | ||||||||||
SPI 200 Futures | December 2010 | 10 | 1,138 | (1 | ) | ||||||||||
U.S. Treasury 2 Year Note Futures | December 2010 | (26 | ) | (5,720) | (4 | ) | |||||||||
U.S. Treasury 5 Year Note Futures | December 2010 | (10 | ) | (1,216) | 1 | ||||||||||
$ | (34 | ) | |||||||||||||
The accompanying notes are an integral part of the financial statements.
92 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 93
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Statements of Assets and Liabilities | October 31, 2010, all dollars and shares are rounded to thousands (000), except per share data |
Equity | Global | International | Large Cap Growth | Large Cap | |||||||||||||||||||||||||||
Income Fund | Infrastructure Fund | International Fund | Select Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Unaffiliated investments, at cost | $ | 622,177 | $ | 139,296 | $ | 569,658 | $ | 774,652 | $ | 472,731 | $ | 115,217 | |||||||||||||||||||
Affiliated investments, at cost | 16,709 | — | — | — | 751 | 421 | |||||||||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 224,304 | — | — | — | 142,971 | 24,274 | |||||||||||||||||||||||||
Cash denominated in foreign currencies, at cost | — | — | 4,845 | 4,490 | — | — | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Unaffiliated investments, at fair value* (note 2) | $ | 811,088 | $ | 152,808 | $ | 684,054 | $ | 854,460 | $ | 619,749 | $ | 134,184 | |||||||||||||||||||
Affiliated investments, at fair value (note 2) | 16,709 | — | — | — | 751 | 421 | |||||||||||||||||||||||||
Affiliated investment purchased with proceeds from securities lending, at fair value (note 2) | 224,304 | — | — | — | 142,971 | 24,274 | |||||||||||||||||||||||||
Cash denominated in foreign currencies, at fair value (note 2) | — | — | 4,843 | 4,586 | — | — | |||||||||||||||||||||||||
Cash | — | 464 | — | — | — | — | |||||||||||||||||||||||||
Receivable for dividends and interest | 1,416 | 293 | 1,360 | 1,749 | 270 | 88 | |||||||||||||||||||||||||
Receivable for investments sold | — | 3,626 | 5,857 | 6,100 | 19,080 | 1,704 | |||||||||||||||||||||||||
Receivable for capital shares sold | 1,697 | 551 | 29 | 205 | 178 | 10 | |||||||||||||||||||||||||
Receivable for foreign withholding tax reclaim | — | 14 | 992 | 368 | — | — | |||||||||||||||||||||||||
Receivable for variation margin (note 2) | — | — | — | — | — | — | |||||||||||||||||||||||||
Prepaid expenses and other assets | 40 | 30 | 34 | 28 | 28 | 26 | |||||||||||||||||||||||||
Total assets | 1,055,254 | 157,786 | 697,169 | 867,496 | 783,027 | 160,707 | |||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||
Bank overdraft | — | — | 1,748 | 1,893 | — | — | |||||||||||||||||||||||||
Payable for investments purchased | 2,651 | 3,716 | 9,458 | 8,776 | 17,630 | 1,674 | |||||||||||||||||||||||||
Payable upon return of securities loaned (note 2) | 224,304 | — | — | — | 142,971 | 24,274 | |||||||||||||||||||||||||
Payable for capital shares redeemed | 494 | 236 | 427 | 374 | 457 | 53 | |||||||||||||||||||||||||
Payable for foreign withholding tax | — | — | 73 | — | — | — | |||||||||||||||||||||||||
Payable for variation margin (note 2) | — | — | 1,217 | 980 | — | — | |||||||||||||||||||||||||
Payable to affiliates (note 3) | 647 | 110 | 723 | 863 | 497 | 117 | |||||||||||||||||||||||||
Payable to custodian (note 3) | — | 20 | 39 | 66 | — | — | |||||||||||||||||||||||||
Payable for distribution and shareholder servicing fees | 40 | 19 | 9 | 2 | 20 | 1 | |||||||||||||||||||||||||
Accrued expenses and other liabilities | 2 | — | 3 | 24 | 3 | 6 | |||||||||||||||||||||||||
Total liabilities | 228,138 | 4,101 | 13,697 | 12,978 | 161,578 | 26,125 | |||||||||||||||||||||||||
Net assets | $ | 827,116 | $ | 153,685 | $ | 683,472 | $ | 854,518 | $ | 621,449 | $ | 134,582 | |||||||||||||||||||
COMPOSITION OF NET ASSETS: | |||||||||||||||||||||||||||||||
Portfolio capital | $ | 642,532 | $ | 131,242 | $ | 579,783 | $ | 810,688 | $ | 517,576 | $ | 209,595 | |||||||||||||||||||
Undistributed (distributions in excess of) net investment income | 3,972 | 2,120 | 4,271 | 6,281 | (13 | ) | 66 | ||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments, futures contracts and foreign currency transactions | (8,299 | ) | 6,805 | (7,936 | ) | (32,734 | ) | (43,132 | ) | (94,046 | ) | ||||||||||||||||||||
Net unrealized appreciation or depreciation of: | |||||||||||||||||||||||||||||||
Investments | 188,911 | 13,512 | 114,396 | 79,808 | 147,018 | 18,967 | |||||||||||||||||||||||||
Futures contracts | — | — | (7,176 | ) | (9,720 | ) | — | — | |||||||||||||||||||||||
Foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | 6 | 134 | 195 | — | — | |||||||||||||||||||||||||
Net assets | $ | 827,116 | $ | 153,685 | $ | 683,472 | $ | 854,518 | $ | 621,449 | $ | 134,582 | |||||||||||||||||||
* Including securities loaned, at fair value | $ | 216,824 | $ | — | $ | — | $ | — | $ | 138,733 | $ | 23,456 | |||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
94 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Quantitative | |||||||||||||||||||||||||||||||||||||||||||||||||||
Large Cap | Mid Cap Growth | Mid Cap | Mid Cap | Large Cap | Real Estate | Small Cap Growth | Small Cap | Small Cap | Tactical Market | ||||||||||||||||||||||||||||||||||||||||||
Value Fund | Opportunities Fund | Select Fund | Value Fund | Core Fund | Securities Fund | Opportunities Fund | Select Fund | Value Fund | Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||||
$ | 318,455 | $ | 1,028,715 | $ | 33,845 | $ | 499,523 | $ | 193,997 | $ | 2,018,247 | $ | 163,365 | $ | 654,691 | $ | 188,318 | $ | 14,137 | ||||||||||||||||||||||||||||||||
110 | 418 | 189 | 8,394 | 873 | 67,391 | 7,626 | 32,505 | 3,731 | 13,092 | ||||||||||||||||||||||||||||||||||||||||||
62,033 | 437,314 | 16,985 | 137,426 | 26,604 | 664,673 | 60,995 | 300,888 | 55,582 | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | 130 | ||||||||||||||||||||||||||||||||||||||||||
$ | 341,462 | $ | 1,314,648 | $ | 38,900 | $ | 578,031 | $ | 202,869 | $ | 2,384,763 | $ | 180,268 | $ | 752,245 | $ | 212,651 | $ | 14,254 | ||||||||||||||||||||||||||||||||
110 | 418 | 189 | 8,394 | 873 | 66,927 | 7,626 | 28,470 | 3,731 | 13,092 | ||||||||||||||||||||||||||||||||||||||||||
62,033 | 437,314 | 16,985 | 137,426 | 26,604 | 664,673 | 60,995 | 300,888 | 55,582 | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | 130 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
388 | 509 | 13 | 130 | 168 | 975 | 43 | 380 | 69 | 26 | ||||||||||||||||||||||||||||||||||||||||||
11,050 | 25,405 | 1,578 | 22,171 | — | 30,292 | 5,129 | 7,048 | 3,680 | 3 | ||||||||||||||||||||||||||||||||||||||||||
7 | 571 | 3 | 320 | 15 | 11,347 | 187 | 1,116 | 55 | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | 29 | ||||||||||||||||||||||||||||||||||||||||||
42 | 42 | 27 | 50 | 40 | 91 | 40 | 43 | 34 | 8 | ||||||||||||||||||||||||||||||||||||||||||
415,092 | 1,778,907 | 57,695 | 746,522 | 230,569 | 3,159,068 | 254,288 | 1,090,190 | 275,802 | 27,542 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | 77 | ||||||||||||||||||||||||||||||||||||||||||
9,611 | 18,572 | 1,549 | 24,172 | — | 68,597 | 6,382 | 6,796 | 2,668 | 56 | ||||||||||||||||||||||||||||||||||||||||||
62,033 | 437,314 | 16,985 | 137,426 | 26,604 | 664,673 | 60,995 | 300,888 | 55,582 | — | ||||||||||||||||||||||||||||||||||||||||||
366 | 950 | 7 | 2,879 | 305 | 2,797 | 122 | 2,530 | 182 | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 11 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | 89 | ||||||||||||||||||||||||||||||||||||||||||
292 | 1,066 | 39 | 498 | 72 | 1,932 | 188 | 645 | 195 | 14 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
14 | 86 | 6 | 37 | — | 205 | 12 | 96 | 9 | — | ||||||||||||||||||||||||||||||||||||||||||
4 | — | 4 | 3 | 5 | 9 | 4 | 2 | 5 | 6 | ||||||||||||||||||||||||||||||||||||||||||
72,320 | 457,988 | 18,590 | 165,015 | 26,986 | 738,224 | 67,703 | 310,957 | 58,641 | 242 | ||||||||||||||||||||||||||||||||||||||||||
$ | 342,772 | $ | 1,320,919 | $ | 39,105 | $ | 581,507 | $ | 203,583 | $ | 2,420,844 | $ | 186,585 | $ | 779,233 | $ | 217,161 | $ | 27,300 | ||||||||||||||||||||||||||||||||
$ | 427,437 | $ | 1,127,643 | $ | 61,916 | $ | 606,863 | $ | 200,847 | $ | 2,102,985 | $ | 187,440 | $ | 784,518 | $ | 243,846 | $ | 27,104 | ||||||||||||||||||||||||||||||||
2,310 | (15 | ) | (11 | ) | 3,971 | 1,951 | (12 | ) | (9 | ) | (13 | ) | (11 | ) | 52 | ||||||||||||||||||||||||||||||||||||
(109,982 | ) | (92,642 | ) | (27,855 | ) | (107,835 | ) | (8,087 | ) | (48,182 | ) | (17,749 | ) | (98,791 | ) | (51,007 | ) | 61 | |||||||||||||||||||||||||||||||||
23,007 | 285,933 | 5,055 | 78,508 | 8,872 | 366,052 | 16,903 | 93,519 | 24,333 | 117 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | (34 | ) | |||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 342,772 | $ | 1,320,919 | $ | 39,105 | $ | 581,507 | $ | 203,583 | $ | 2,420,844 | $ | 186,585 | $ | 779,233 | $ | 217,161 | $ | 27,300 | ||||||||||||||||||||||||||||||||
$ | 59,902 | $ | 429,035 | $ | 16,443 | $ | 132,999 | $ | 25,729 | $ | 642,162 | $ | 58,595 | $ | 291,138 | $ | 53,686 | $ | — | ||||||||||||||||||||||||||||||||
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Statements of Assets and Liabilities | continued |
Equity | Global | International | Large Cap Growth | Large Cap | |||||||||||||||||||||||||||
Income Fund | Infrastructure Fund | International Fund | Select Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Class A1: | |||||||||||||||||||||||||||||||
Net assets | $ | 125,226 | $ | 57,594 | $ | 26,698 | $ | 5,530 | $ | 66,409 | $ | 3,487 | |||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 10,083 | 6,115 | 2,297 | 579 | 2,196 | 299 | |||||||||||||||||||||||||
Net asset value and redemption price per share | $ | 12.42 | $ | 9.42 | $ | 11.62 | $ | 9.54 | $ | 30.24 | $ | 11.65 | |||||||||||||||||||
Maximum offering price per share2 | $ | 13.14 | $ | 9.97 | $ | 12.30 | $ | 10.10 | $ | 32.00 | $ | 12.33 | |||||||||||||||||||
Class B3: | |||||||||||||||||||||||||||||||
Net assets | $ | 5,039 | — | $ | 1,497 | — | $ | 3,473 | — | ||||||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 412 | — | 142 | — | 125 | — | |||||||||||||||||||||||||
Net asset value, offering price, and redemption price per share4 | $ | 12.25 | — | $ | 10.57 | — | $ | 27.68 | — | ||||||||||||||||||||||
Class C1: | |||||||||||||||||||||||||||||||
Net assets | $ | 11,107 | $ | 8,103 | $ | 2,607 | $ | 816 | $ | 4,220 | $ | 175 | |||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 906 | 869 | 236 | 87 | 149 | 16 | |||||||||||||||||||||||||
Net asset value, offering price and redemption price per share4 | $ | 12.26 | $ | 9.32 | $ | 11.03 | $ | 9.43 | $ | 28.30 | $ | 11.22 | |||||||||||||||||||
Class R1,5: | |||||||||||||||||||||||||||||||
Net assets | $ | 1,204 | $ | 8 | $ | 6 | $ | 7 | $ | 742 | $ | 117 | |||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 97 | 1 | 1 | 1 | 25 | 10 | |||||||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 12.41 | $ | 9.40 | $ | 11.61 | $ | 9.48 | $ | 29.83 | $ | 11.54 | |||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||
Net assets | $ | 684,540 | $ | 87,980 | $ | 652,664 | $ | 848,165 | $ | 546,605 | $ | 130,803 | |||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 54,623 | 9,298 | 55,404 | 88,669 | 17,446 | 11,172 | |||||||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 12.53 | $ | 9.46 | $ | 11.78 | $ | 9.57 | $ | 31.33 | $ | 11.71 | |||||||||||||||||||
1 | Share class is not offered by Tactical Market Opportunities Fund. | |
2 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. |
3 | No new investments allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. Certain funds do not offer Class B shares. See note 1 in Notes to Financial Statements. |
4 | 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. | |
5 | Share class is not offered by Mid Cap Select Fund and Quantitative Large Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
96 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Large Cap | Mid Cap Growth | Mid Cap | Mid Cap | Quantitative | Real Estate | Small Cap Growth | Small Cap | Small Cap | Tactical Market | ||||||||||||||||||||||||||||||||||||||||||
Value Fund | Opportunities Fund | Select Fund | Value Fund | Large Cap Core Fund | Securities Fund | Opportunities Fund | Select Fund | Value Fund | Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||||
$ | 52,567 | $ | 275,040 | $ | 12,402 | $ | 76,667 | $ | 253 | $ | 686,148 | $ | 39,501 | $ | 339,826 | $ | 32,332 | — | |||||||||||||||||||||||||||||||||
3,672 | 7,381 | 1,332 | 3,453 | 12 | 39,031 | 2,075 | 29,002 | 3,152 | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 14.32 | $ | 37.26 | $ | 9.31 | $ | 22.20 | $ | 20.50 | $ | 17.58 | $ | 19.04 | $ | 11.72 | $ | 10.26 | — | |||||||||||||||||||||||||||||||||
$ | 15.15 | $ | 39.43 | $ | 9.85 | $ | 23.49 | $ | 21.69 | $ | 18.60 | $ | 20.15 | $ | 12.40 | $ | 10.86 | — | |||||||||||||||||||||||||||||||||
$ | 1,338 | $ | 5,490 | $ | 1,295 | $ | 2,815 | — | $ | 3,005 | $ | 2,088 | $ | 3,925 | — | — | |||||||||||||||||||||||||||||||||||
97 | 168 | 164 | 135 | — | 175 | 125 | 423 | — | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 13.75 | $ | 32.62 | $ | 7.90 | $ | 20.87 | — | $ | 17.18 | $ | 16.66 | $ | 9.27 | — | — | |||||||||||||||||||||||||||||||||||
$ | 1,337 | $ | 13,564 | $ | 2,332 | $ | 11,564 | $ | 14 | $ | 52,732 | $ | 1,596 | $ | 17,393 | $ | 1,843 | — | |||||||||||||||||||||||||||||||||
95 | 397 | 271 | 541 | 1 | 3,061 | 91 | 1,634 | 203 | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 13.97 | $ | 34.21 | $ | 8.61 | $ | 21.36 | $ | 20.50 | $ | 17.23 | $ | 17.46 | $ | 10.65 | $ | 9.08 | — | |||||||||||||||||||||||||||||||||
$ | 794 | $ | 33,772 | — | $ | 20,195 | — | $ | 47,970 | $ | 2,185 | $ | 18,047 | $ | 2,111 | — | |||||||||||||||||||||||||||||||||||
56 | 923 | — | 916 | — | 2,696 | 117 | 1,575 | 209 | — | ||||||||||||||||||||||||||||||||||||||||||
$ | 14.24 | $ | 36.58 | — | $ | 22.05 | — | $ | 17.79 | $ | 18.74 | $ | 11.46 | $ | 10.11 | — | |||||||||||||||||||||||||||||||||||
$ | 286,736 | $ | 993,053 | $ | 23,076 | $ | 470,266 | $ | 203,316 | $ | 1,630,989 | $ | 141,215 | $ | 400,042 | $ | 180,875 | $ | 27,300 | ||||||||||||||||||||||||||||||||
19,899 | 24,769 | 2,376 | 21,027 | 9,885 | 91,762 | 6,887 | 31,433 | 17,138 | 2,571 | ||||||||||||||||||||||||||||||||||||||||||
$ | 14.41 | $ | 40.09 | $ | 9.71 | $ | 22.37 | $ | 20.57 | $ | 17.77 | $ | 20.51 | $ | 12.73 | $ | 10.55 | $ | 10.62 | ||||||||||||||||||||||||||||||||
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Statements of Operations | For the fiscal period ended October 31, 2010, all dollars are rounded to thousands (000) |
Equity | Global | International | Large Cap Growth | Large Cap | |||||||||||||||||||||||||||
Income Fund | Infrastructure Fund | International Fund | Select Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Interest from unaffiliated investments | $ | — | $ | 3 | $ | 11 | $ | 170 | $ | — | $ | — | |||||||||||||||||||
Dividends from unaffiliated investments | 30,294 | 3,709 | 16,110 | 18,177 | 4,742 | 1,744 | |||||||||||||||||||||||||
Dividends from affiliated money market fund | 5 | — | — | — | 5 | 1 | |||||||||||||||||||||||||
Securities lending income | 141 | — | — | — | 168 | 42 | |||||||||||||||||||||||||
Less: Foreign taxes withheld | (294 | ) | (282 | ) | (1,396 | ) | (1,544 | ) | (14 | ) | — | ||||||||||||||||||||
Total investment income | 30,146 | 3,430 | 14,725 | 16,803 | 4,901 | 1,787 | |||||||||||||||||||||||||
EXPENSES (note 3): | |||||||||||||||||||||||||||||||
Investment advisory fees | 4,852 | 980 | 6,997 | 7,586 | 3,748 | 903 | |||||||||||||||||||||||||
Administration fees | 1,676 | 264 | 1,617 | 1,741 | 1,297 | 320 | |||||||||||||||||||||||||
Transfer agent fees | 263 | 145 | 189 | 100 | 253 | 100 | |||||||||||||||||||||||||
Custodian fees | 37 | 218 | 392 | 737 | 30 | 9 | |||||||||||||||||||||||||
Legal fees | 15 | 15 | 15 | 15 | 15 | 15 | |||||||||||||||||||||||||
Audit fees | 32 | 34 | 36 | 63 | 32 | 32 | |||||||||||||||||||||||||
Registration fees | 48 | 52 | 51 | 64 | 46 | 47 | |||||||||||||||||||||||||
Postage and printing fees | 50 | 14 | 38 | 44 | 41 | 11 | |||||||||||||||||||||||||
Directors’ fees | 32 | 32 | 32 | 32 | 32 | 32 | |||||||||||||||||||||||||
Other expenses | 24 | 21 | 25 | 24 | 26 | 23 | |||||||||||||||||||||||||
Distribution and shareholder servicing fees: | |||||||||||||||||||||||||||||||
Class A2 | 280 | 105 | 68 | 10 | 152 | 9 | |||||||||||||||||||||||||
Class B3 | 62 | — | 17 | — | 40 | — | |||||||||||||||||||||||||
Class C2 | 70 | 55 | 29 | 5 | 42 | 2 | |||||||||||||||||||||||||
Class R2,4 | 2 | — | — | — | 3 | — | |||||||||||||||||||||||||
Total expenses | 7,443 | 1,935 | 9,506 | 10,421 | 5,757 | 1,503 | |||||||||||||||||||||||||
Less: Fee waivers (note 3) | (5 | ) | (686 | ) | (717 | ) | (999 | ) | (4 | ) | (1 | ) | |||||||||||||||||||
Less: Expense reimbursement from regulatory settlement (note 8) | (176 | ) | — | (36 | ) | — | (38 | ) | — | ||||||||||||||||||||||
Total net expenses | 7,262 | 1,249 | 8,753 | 9,422 | 5,715 | 1,502 | |||||||||||||||||||||||||
Investment income (loss) – net | 22,884 | 2,181 | 5,972 | 7,381 | (814 | ) | 285 | ||||||||||||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) – NET: | |||||||||||||||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||||||||||||||
Unaffiliated investments | 20,111 | 9,648 | 54,937 | 38,581 | 70,540 | 26,152 | |||||||||||||||||||||||||
Futures contracts | — | — | (3,993 | ) | (195 | ) | — | — | |||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | (1 | ) | (24 | ) | (1,345 | ) | (1,505 | ) | — | — | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | |||||||||||||||||||||||||||||||
Unaffiliated investments | 85,170 | 11,025 | 5,091 | 52,273 | 61,995 | 483 | |||||||||||||||||||||||||
Affiliated investments | — | — | — | — | — | — | |||||||||||||||||||||||||
Futures contracts | — | — | (5,099 | ) | (7,356 | ) | — | — | |||||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | 5 | 218 | 50 | — | — | |||||||||||||||||||||||||
Net gain on investments, futures contracts, and foreign currency transactions | 105,280 | 20,654 | 49,809 | 81,848 | 132,535 | 26,635 | |||||||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 128,164 | $ | 22,835 | $ | 55,781 | $ | 89,229 | $ | 131,721 | $ | 26,920 | |||||||||||||||||||
1 | For the period December 30, 2009 (commencement of operations) through October 31, 2010. | |
2 | Class A, Class C, and Class R are not offered by the Tactical Market Opportunities Fund. | |
3 | No new investments allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. Certain funds do not offer Class B shares. See note 1 in Notes to Financial Statements. | |
4 | Class R is not offered by Mid Cap Select Fund and Quantitative Large Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
98 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Large Cap | Mid Cap Growth | Mid Cap | Mid Cap | Quantitative | Real Estate | Small Cap Growth | Small Cap | Small Cap | Tactical Market | ||||||||||||||||||||||||||||||||||||||||||
Value Fund | Opportunities Fund | Select Fund | Value Fund | Large Cap Core Fund | Securities Fund | Opportunities Fund | Select Fund | Value Fund | Opportunities Fund1 | ||||||||||||||||||||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | 38 | ||||||||||||||||||||||||||||||||
6,942 | 8,072 | 443 | 10,497 | 3,321 | 53,026 | 561 | 4,840 | 2,432 | 43 | ||||||||||||||||||||||||||||||||||||||||||
3 | 10 | — | 6 | 7 | 21 | 3 | 13 | 2 | 1 | ||||||||||||||||||||||||||||||||||||||||||
65 | 481 | 19 | 129 | 34 | 713 | 151 | 760 | 73 | — | ||||||||||||||||||||||||||||||||||||||||||
— | (193 | ) | — | (2 | ) | — | (155 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
7,010 | 8,370 | 462 | 10,630 | 3,365 | 53,605 | 715 | 5,613 | 2,507 | 82 | ||||||||||||||||||||||||||||||||||||||||||
2,434 | 8,862 | 285 | 4,163 | 519 | 11,401 | 1,705 | 5,145 | 1,427 | 27 | ||||||||||||||||||||||||||||||||||||||||||
846 | 2,835 | 101 | 1,337 | 401 | 3,651 | 392 | 1,651 | 465 | 12 | ||||||||||||||||||||||||||||||||||||||||||
209 | 360 | 161 | 210 | 80 | 680 | 165 | 264 | 157 | 17 | ||||||||||||||||||||||||||||||||||||||||||
20 | 65 | 4 | 31 | 9 | 82 | 9 | 37 | 10 | — | ||||||||||||||||||||||||||||||||||||||||||
15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 15 | 19 | ||||||||||||||||||||||||||||||||||||||||||
32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 | ||||||||||||||||||||||||||||||||||||||||||
44 | 53 | 40 | 53 | 44 | 146 | 47 | 67 | 45 | 4 | ||||||||||||||||||||||||||||||||||||||||||
30 | 85 | 11 | 46 | 23 | 143 | 17 | 81 | 19 | 1 | ||||||||||||||||||||||||||||||||||||||||||
32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 32 | 28 | ||||||||||||||||||||||||||||||||||||||||||
25 | 28 | 23 | 26 | 21 | 26 | 24 | 26 | 24 | 8 | ||||||||||||||||||||||||||||||||||||||||||
137 | 634 | 32 | 216 | 1 | 1,150 | 89 | 795 | 78 | — | ||||||||||||||||||||||||||||||||||||||||||
17 | 61 | 15 | 32 | — | 29 | 21 | 48 | — | — | ||||||||||||||||||||||||||||||||||||||||||
16 | 134 | 25 | 117 | — | 335 | 15 | 176 | 20 | — | ||||||||||||||||||||||||||||||||||||||||||
2 | 157 | — | 117 | — | 261 | 9 | 118 | 12 | — | ||||||||||||||||||||||||||||||||||||||||||
3,859 | 13,353 | 776 | 6,427 | 1,177 | 17,983 | 2,572 | 8,487 | 2,336 | 148 | ||||||||||||||||||||||||||||||||||||||||||
(2 | ) | (10 | ) | (232 | ) | (6 | ) | (405 | ) | (21 | ) | (362 | ) | (15 | ) | (2 | ) | (115 | ) | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | (40 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||
3,857 | 13,343 | 544 | 6,421 | 772 | 17,962 | 2,210 | 8,432 | 2,334 | 33 | ||||||||||||||||||||||||||||||||||||||||||
3,153 | (4,973 | ) | (82 | ) | 4,209 | 2,593 | 35,643 | (1,495 | ) | (2,819 | ) | 173 | 49 | ||||||||||||||||||||||||||||||||||||||
26,403 | 195,722 | 6,634 | 83,856 | 18,592 | 252,012 | 32,333 | 92,494 | 13,113 | 86 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | 88 | — | — | — | — | (22 | ) | |||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
8,454 | 129,355 | 1,905 | 34,723 | 2,535 | 278,746 | 11,747 | 59,357 | 31,588 | 117 | ||||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | (464 | ) | — | 1,415 | — | — | |||||||||||||||||||||||||||||||||||||||||
— | — | — | — | 234 | — | — | — | — | (34 | ) | |||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | 1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
34,857 | 325,077 | 8,539 | 118,579 | 21,449 | 530,295 | 44,080 | 153,266 | 44,701 | 147 | ||||||||||||||||||||||||||||||||||||||||||
$ | 38,010 | $ | 320,104 | $ | 8,457 | $ | 122,788 | $ | 24,042 | $ | 565,938 | $ | 42,585 | $ | 150,447 | $ | 44,874 | $ | 196 | ||||||||||||||||||||||||||||||||
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Statements of Changes in Net Assets | all dollars are rounded to thousands (000) |
Global | ||||||||||||||||||||||||||||
Equity | Infrastructure | International | ||||||||||||||||||||||||||
Income Fund | Fund | Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income (loss) – net | $ | 22,884 | $ | 20,246 | $ | 2,181 | $ | 1,028 | $ | 5,972 | $ | 7,837 | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Unaffiliated investments | 20,111 | (14,066 | ) | 9,648 | 2,258 | 54,937 | (59,460 | ) | ||||||||||||||||||||
Futures contracts | — | — | — | — | (3,993 | ) | (15,635 | ) | ||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | (1 | ) | (1 | ) | (24 | ) | 3 | (1,345 | ) | (2,356 | ) | |||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Unaffiliated investments | 85,170 | 56,206 | 11,025 | 7,143 | 5,091 | 197,864 | ||||||||||||||||||||||
Futures contracts | — | — | — | — | (5,099 | ) | 14,698 | |||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | 5 | 2 | 218 | (314 | ) | |||||||||||||||||||||
Net increase in net assets resulting from operations | 128,164 | 62,385 | 22,835 | 10,434 | 55,781 | 142,634 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (2,941 | ) | (3,050 | ) | (422 | ) | (86 | ) | (112 | ) | (236 | ) | ||||||||||||||||
Class B | (112 | ) | (200 | ) | — | — | — | — | ||||||||||||||||||||
Class C | (143 | ) | (114 | ) | (45 | ) | — | — | — | |||||||||||||||||||
Class R | (12 | ) | (9 | ) | — | — | — | — | ||||||||||||||||||||
Class Y | (17,684 | ) | (19,001 | ) | (658 | ) | (262 | ) | (4,307 | ) | (8,282 | ) | ||||||||||||||||
Total distributions | (20,892 | ) | (22,374 | ) | (1,125 | ) | (348 | ) | (4,419 | ) | (8,518 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 27,882 | 9,072 | 40,687 | 16,619 | 2,352 | 3,228 | ||||||||||||||||||||||
Reinvestment of distributions | 2,661 | 2,785 | 372 | 67 | 103 | 219 | ||||||||||||||||||||||
Payments for redemptions | (20,975 | ) | (17,930 | ) | (11,596 | ) | (4,091 | ) | (5,764 | ) | (6,232 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | 9,568 | (6,073 | ) | 29,463 | 12,595 | (3,309 | ) | (2,785 | ) | |||||||||||||||||||
Class B1: | ||||||||||||||||||||||||||||
Proceeds from sales | 84 | 113 | — | — | 67 | 77 | ||||||||||||||||||||||
Reinvestment of distributions | 107 | 187 | — | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (3,330 | ) | (2,480 | ) | — | — | (667 | ) | (975 | ) | ||||||||||||||||||
Decrease in net assets from Class B transactions | (3,139 | ) | (2,180 | ) | — | — | (600 | ) | (898 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 6,915 | 1,181 | 4,512 | 2,639 | 235 | 331 | ||||||||||||||||||||||
Reinvestment of distributions | 128 | 107 | 40 | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (1,799 | ) | (1,258 | ) | (567 | ) | (32 | ) | (1,100 | ) | (985 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | 5,244 | 30 | 3,985 | 2,607 | (865 | ) | (654 | ) | ||||||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | 1,089 | 52 | — | 5 | 1 | 1 | ||||||||||||||||||||||
Reinvestment of distributions | 11 | 9 | — | — | — | — | ||||||||||||||||||||||
Payments for redemptions | (99 | ) | (452 | ) | — | — | — | — | ||||||||||||||||||||
Increase (decrease) in net assets from Class R transactions | 1,001 | (391 | ) | — | 5 | 1 | 1 | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 144,124 | 127,721 | 53,473 | 41,075 | 28,438 | 54,320 | ||||||||||||||||||||||
Reinvestment of distributions | 4,079 | 4,494 | 261 | 141 | 2,919 | 5,049 | ||||||||||||||||||||||
Payments for redemptions | (124,062 | ) | (169,842 | ) | (14,743 | ) | (28,216 | ) | (108,028 | ) | (165,305 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | 24,141 | (37,627 | ) | 38,991 | 13,000 | (76,671 | ) | (105,936 | ) | |||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | 36,815 | (46,241 | ) | 72,439 | 28,207 | (81,444 | ) | (110,272 | ) | |||||||||||||||||||
Increase in net assets from regulatory settlement proceeds (note 8) | — | — | — | — | — | 359 | ||||||||||||||||||||||
Total increase (decrease) in net assets | 144,087 | (6,230 | ) | 94,149 | 38,293 | (30,082 | ) | 24,203 | ||||||||||||||||||||
Net assets at beginning of period | 683,029 | 689,259 | 59,536 | 21,243 | 713,554 | 689,351 | ||||||||||||||||||||||
Net assets at end of period | $ | 827,116 | $ | 683,029 | $ | 153,685 | $ | 59,536 | $ | 683,472 | $ | 713,554 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | 3,972 | $ | 2,092 | $ | 2,120 | $ | 941 | $ | 4,271 | $ | 4,397 | ||||||||||||||||
1 | No new or additional investments are allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. Certain funds do not offer Class B shares. See Note 1 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
100 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Mid Cap Growth | ||||||||||||||||||||||||||||||||||||||||||||||
International | Large Cap Growth | Large Cap | Large Cap | Opportunities | ||||||||||||||||||||||||||||||||||||||||||
Select Fund | Opportunities Fund | Select Fund | Value Fund | Fund | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||||||||||||||||
$ | 7,381 | $ | 4,098 | $ | (814 | ) | $ | 2,104 | $ | 285 | $ | 1,304 | $ | 3,153 | $ | 6,741 | $ | (4,973 | ) | $ | (1,648 | ) | ||||||||||||||||||||||||
38,581 | (45,089 | ) | 70,540 | (66,901 | ) | 26,152 | (49,896 | ) | 26,403 | (81,898 | ) | 195,722 | (161,489 | ) | ||||||||||||||||||||||||||||||||
(195 | ) | 4,615 | — | 6,794 | — | — | — | — | — | 15,590 | ||||||||||||||||||||||||||||||||||||
(1,505 | ) | (1,097 | ) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
52,273 | 138,434 | 61,995 | 121,303 | 483 | 61,203 | 8,454 | 81,677 | 129,355 | 340,238 | |||||||||||||||||||||||||||||||||||||
(7,356 | ) | 2,599 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
50 | (53 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
89,229 | 103,507 | 131,721 | 63,300 | 26,920 | 12,611 | 38,010 | 6,520 | 320,104 | 192,691 | |||||||||||||||||||||||||||||||||||||
(7 | ) | (30 | ) | (112 | ) | (59 | ) | (19 | ) | (15 | ) | (728 | ) | (635 | ) | — | — | |||||||||||||||||||||||||||||
— | (2 | ) | — | — | — | — | (10 | ) | (21 | ) | — | — | ||||||||||||||||||||||||||||||||||
— | (1 | ) | — | — | — | — | (7 | ) | (15 | ) | — | — | ||||||||||||||||||||||||||||||||||
— | (1 | ) | — | — | — | — | (4 | ) | (2 | ) | — | — | ||||||||||||||||||||||||||||||||||
(2,439 | ) | (6,078 | ) | (1,994 | ) | (1,833 | ) | (1,121 | ) | (1,109 | ) | (5,078 | ) | (4,702 | ) | — | — | |||||||||||||||||||||||||||||
(2,446 | ) | (6,112 | ) | (2,106 | ) | (1,892 | ) | (1,140 | ) | (1,124 | ) | (5,827 | ) | (5,375 | ) | — | — | |||||||||||||||||||||||||||||
3,042 | 1,588 | 8,454 | 7,172 | 486 | 856 | 1,946 | 2,954 | 38,764 | 36,041 | |||||||||||||||||||||||||||||||||||||
5 | 25 | 106 | 56 | 17 | 12 | 671 | 579 | — | — | |||||||||||||||||||||||||||||||||||||
(1,140 | ) | (1,027 | ) | (12,704 | ) | (9,957 | ) | (894 | ) | (1,480 | ) | (10,076 | ) | (9,418 | ) | (59,512 | ) | (51,431 | ) | |||||||||||||||||||||||||||
1,907 | 586 | (4,144 | ) | (2,729 | ) | (391 | ) | (612 | ) | (7,459 | ) | (5,885 | ) | (20,748 | ) | (15,390 | ) | |||||||||||||||||||||||||||||
— | 2 | 14 | 42 | — | 3 | — | 15 | 39 | 54 | |||||||||||||||||||||||||||||||||||||
— | 2 | — | — | — | — | 10 | 20 | — | — | |||||||||||||||||||||||||||||||||||||
— | (298 | ) | (2,161 | ) | (1,629 | ) | — | (324 | ) | (1,124 | ) | (1,394 | ) | (2,824 | ) | (1,623 | ) | |||||||||||||||||||||||||||||
— | (294 | ) | (2,147 | ) | (1,587 | ) | — | (321 | ) | (1,114 | ) | (1,359 | ) | (2,785 | ) | (1,569 | ) | |||||||||||||||||||||||||||||
561 | 21 | 155 | 481 | 4 | 22 | 74 | 217 | 1,175 | 2,061 | |||||||||||||||||||||||||||||||||||||
— | 1 | — | — | — | — | 6 | 15 | — | — | |||||||||||||||||||||||||||||||||||||
(38 | ) | (61 | ) | (1,360 | ) | (845 | ) | (46 | ) | (36 | ) | (910 | ) | (869 | ) | (3,782 | ) | (3,972 | ) | |||||||||||||||||||||||||||
523 | (39 | ) | (1,205 | ) | (364 | ) | (42 | ) | (14 | ) | (830 | ) | (637 | ) | (2,607 | ) | (1,911 | ) | ||||||||||||||||||||||||||||
2 | 4 | 173 | 225 | 36 | 102 | 486 | 176 | 13,126 | 11,251 | |||||||||||||||||||||||||||||||||||||
— | 1 | — | — | 1 | — | 4 | 2 | — | — | |||||||||||||||||||||||||||||||||||||
(15 | ) | (42 | ) | (250 | ) | (114 | ) | (1 | ) | (55 | ) | (81 | ) | (35 | ) | (14,166 | ) | (10,412 | ) | |||||||||||||||||||||||||||
(13 | ) | (37 | ) | (77 | ) | 111 | 36 | 47 | 409 | 143 | (1,040 | ) | 839 | |||||||||||||||||||||||||||||||||
327,770 | 363,659 | 54,876 | 116,710 | 18,016 | 39,404 | 14,969 | 38,047 | 139,991 | 171,004 | |||||||||||||||||||||||||||||||||||||
704 | 1,729 | 783 | 724 | 527 | 441 | 3,338 | 2,849 | — | — | |||||||||||||||||||||||||||||||||||||
(151,115 | ) | (127,280 | ) | (105,362 | ) | (106,659 | ) | (60,119 | ) | (111,700 | ) | (94,336 | ) | (107,134 | ) | (298,042 | ) | (142,727 | ) | |||||||||||||||||||||||||||
177,359 | 238,108 | (49,703 | ) | 10,775 | (41,576 | ) | (71,855 | ) | (76,029 | ) | (66,238 | ) | (158,051 | ) | 28,277 | |||||||||||||||||||||||||||||||
179,776 | 238,324 | (57,276 | ) | 6,206 | (41,973 | ) | (72,755 | ) | (85,023 | ) | (73,976 | ) | (185,231 | ) | 10,246 | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
266,559 | 335,719 | 72,339 | 67,614 | (16,193 | ) | (61,268 | ) | (52,840 | ) | (72,831 | ) | 134,873 | 202,937 | |||||||||||||||||||||||||||||||||
587,959 | 252,240 | 549,110 | 481,496 | 150,775 | 212,043 | 395,612 | 468,443 | 1,186,046 | 983,109 | |||||||||||||||||||||||||||||||||||||
$ | 854,518 | $ | 587,959 | $ | 621,449 | $ | 549,110 | $ | 134,582 | $ | 150,775 | $ | 342,772 | $ | 395,612 | $ | 1,320,919 | $ | 1,186,046 | |||||||||||||||||||||||||||
$ | 6,281 | $ | 2,268 | $ | (13 | ) | $ | 2,094 | $ | 66 | $ | 921 | $ | 2,310 | $ | 4,984 | $ | (15 | ) | $ | (13 | ) | ||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 101
Table of Contents
Statements of Changes in Net Assets | continued |
Mid Cap | Mid Cap | Quantitative | ||||||||||||||||||||||||||
Select Fund | Value Fund | Large Cap Core Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income (loss) – net | $ | (82 | ) | $ | 297 | $ | 4,209 | $ | 9,075 | $ | 2,593 | $ | 2,193 | |||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Unaffiliated investments | 6,634 | (16,427 | ) | 83,856 | (84,621 | ) | 18,592 | (18,929 | ) | |||||||||||||||||||
Affiliated investments | — | — | — | — | — | — | ||||||||||||||||||||||
Futures contracts | — | 994 | — | — | 88 | 1,549 | ||||||||||||||||||||||
Options written | — | (321 | ) | — | — | — | — | |||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | — | — | — | — | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Unaffiliated investments | 1,905 | 18,365 | 34,723 | 147,981 | 2,535 | 27,924 | ||||||||||||||||||||||
Affiliated investments | — | — | — | — | — | — | ||||||||||||||||||||||
Futures contracts | — | — | — | — | 234 | (358 | ) | |||||||||||||||||||||
Forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency (note 2) | — | — | — | — | — | — | ||||||||||||||||||||||
Net increase in net assets resulting from operations | 8,457 | 2,908 | 122,788 | 72,435 | 24,042 | 12,379 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (37 | ) | (4 | ) | (1,055 | ) | (600 | ) | (3 | ) | (1 | ) | ||||||||||||||||
Class B | — | — | (15 | ) | (2 | ) | — | — | ||||||||||||||||||||
Class C | — | — | (46 | ) | (7 | ) | — | — | ||||||||||||||||||||
Class R | — | — | (180 | ) | (90 | ) | — | — | ||||||||||||||||||||
Class Y | (127 | ) | (143 | ) | (6,065 | ) | (2,658 | ) | (2,274 | ) | (1,072 | ) | ||||||||||||||||
Return of Capital: | ||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||||||
Total distributions | (164 | ) | (147 | ) | (7,361 | ) | (3,357 | ) | (2,277 | ) | (1,073 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A2: | ||||||||||||||||||||||||||||
Proceeds from sales | 1,134 | 1,858 | 16,925 | 29,555 | 52 | 130 | ||||||||||||||||||||||
Reinvestment of distributions | 33 | 3 | 1,027 | 583 | 2 | 1 | ||||||||||||||||||||||
Payments for redemptions | (3,730 | ) | (3,132 | ) | (89,871 | ) | (38,523 | ) | (76 | ) | (20 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (2,563 | ) | (1,271 | ) | (71,919 | ) | (8,385 | ) | (22 | ) | 111 | |||||||||||||||||
Class B3: | ||||||||||||||||||||||||||||
Proceeds from sales | — | 8 | 1 | 47 | — | — | ||||||||||||||||||||||
Reinvestment of distributions | — | — | 14 | 2 | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (697 | ) | (917 | ) | (1,328 | ) | (1,032 | ) | — | — | ||||||||||||||||||
Decrease in net assets from Class B transactions | (697 | ) | (909 | ) | (1,313 | ) | (983 | ) | — | — | ||||||||||||||||||
Class C2: | ||||||||||||||||||||||||||||
Proceeds from sales | 192 | 190 | 685 | 676 | 10 | — | ||||||||||||||||||||||
Reinvestment of distributions | — | — | 41 | 7 | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (866 | ) | (894 | ) | (3,517 | ) | (3,112 | ) | — | (6 | ) | |||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (674 | ) | (704 | ) | (2,791 | ) | (2,429 | ) | 10 | (6 | ) | |||||||||||||||||
Class R2,4: | ||||||||||||||||||||||||||||
Proceeds from sales | — | — | 10,515 | 14,902 | — | — | ||||||||||||||||||||||
Reinvestment of distributions | — | — | 180 | 90 | — | — | ||||||||||||||||||||||
Payments for redemptions | — | — | (20,572 | ) | (16,399 | ) | — | (3 | ) | |||||||||||||||||||
Increase (decrease) in net assets from Class R transactions | — | — | (9,877 | ) | (1,407 | ) | — | (3 | ) | |||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 2,283 | 10,760 | 50,896 | 66,387 | 76,625 | 94,121 | ||||||||||||||||||||||
Reinvestment of distributions | 33 | 33 | 4,150 | 1,760 | 899 | 546 | ||||||||||||||||||||||
Payments for redemptions | (11,304 | ) | (25,773 | ) | (115,441 | ) | (92,117 | ) | (42,121 | ) | (49,049 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (8,988 | ) | (14,980 | ) | (60,395 | ) | (23,970 | ) | 35,403 | 45,618 | ||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (12,922 | ) | (17,864 | ) | (146,295 | ) | (37,174 | ) | 35,391 | 45,720 | ||||||||||||||||||
Increase in net assets from regulatory settlement proceeds (note 8) | — | — | — | — | — | — | ||||||||||||||||||||||
Total increase (decrease) in net assets | (4,629 | ) | (15,103 | ) | (30,868 | ) | 31,904 | 57,156 | 57,026 | |||||||||||||||||||
Net assets at beginning of period | 43,734 | 58,837 | 612,375 | 580,471 | 146,427 | 89,401 | ||||||||||||||||||||||
Net assets at end of period | $ | 39,105 | $ | 43,734 | $ | 581,507 | $ | 612,375 | $ | 203,583 | $ | 146,427 | ||||||||||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | (11 | ) | $ | 155 | $ | 3,971 | $ | 7,349 | $ | 1,951 | $ | 1,659 | |||||||||||||||
1 | Commencement of operations. | |
2 | Class A, Class C, and Class R are not offered by the Tactical Market Opportunities Fund. | |
3 | No new investments allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. Certain funds do not offer Class B shares. See Note 1 in Notes to Financial Statements. | |
4 | Class R is not offered by Mid Cap Select Fund and Quantitative Large Cap Core Fund. |
The accompanying notes are an integral part of the financial statements.
102 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Tactical Market | ||||||||||||||||||||||||||||||||||||||||||
Real Estate | Small Cap Growth | Small Cap | Small Cap | Opportunities | ||||||||||||||||||||||||||||||||||||||
Securities Fund | Opportunities Fund | Select Fund | Value Fund | Fund | ||||||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | 12/30/091 to | ||||||||||||||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | ||||||||||||||||||||||||||||||||||
$ | 35,643 | $ | 28,866 | $ | (1,495 | ) | $ | (810 | ) | $ | (2,819 | ) | $ | 105 | $ | 173 | $ | 1,109 | $ | 49 | ||||||||||||||||||||||
252,012 | (162,772 | ) | 32,333 | (5,607 | ) | 92,494 | (93,728 | ) | 13,113 | (37,715 | ) | 86 | ||||||||||||||||||||||||||||||
— | (1,573 | ) | — | — | — | (1,433 | ) | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | (22 | ) | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
— | (8 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
278,746 | 203,043 | 11,747 | 27,775 | 59,357 | 176,157 | 31,588 | 39,307 | 117 | ||||||||||||||||||||||||||||||||||
(464 | ) | (4,227 | ) | — | — | 1,415 | 1,710 | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | (34 | ) | |||||||||||||||||||||||||||||||||
1 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
565,938 | 63,329 | 42,585 | 21,358 | 150,447 | 82,811 | 44,874 | 2,701 | 196 | ||||||||||||||||||||||||||||||||||
(11,390 | ) | (5,684 | ) | — | — | — | — | (84 | ) | (281 | ) | — | ||||||||||||||||||||||||||||||
(53 | ) | (61 | ) | — | — | — | — | — | (3 | ) | — | |||||||||||||||||||||||||||||||
(629 | ) | (291 | ) | — | — | — | — | — | (7 | ) | — | |||||||||||||||||||||||||||||||
(1,183 | ) | (899 | ) | — | — | — | — | (1 | ) | (18 | ) | — | ||||||||||||||||||||||||||||||
(29,400 | ) | (16,569 | ) | — | — | (184 | ) | — | (751 | ) | (1,989 | ) | — | |||||||||||||||||||||||||||||
— | (2,077 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
— | (33 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
— | (141 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
— | (356 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
— | (6,186 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
(42,655 | ) | (32,297 | ) | — | — | (184 | ) | — | (836 | ) | (2,298 | ) | — | |||||||||||||||||||||||||||||
400,605 | 197,810 | 6,417 | 3,534 | 141,839 | 148,270 | 1,626 | 5,254 | — | ||||||||||||||||||||||||||||||||||
10,433 | 7,096 | — | — | — | — | 81 | 270 | — | ||||||||||||||||||||||||||||||||||
(161,112 | ) | (71,600 | ) | (6,354 | ) | (7,288 | ) | (164,001 | ) | (55,873 | ) | (5,270 | ) | (5,111 | ) | — | ||||||||||||||||||||||||||
249,926 | 133,306 | 63 | (3,754 | ) | (22,162 | ) | 92,397 | (3,563 | ) | 413 | — | |||||||||||||||||||||||||||||||
63 | 51 | 37 | 47 | 5 | 46 | — | 16 | — | ||||||||||||||||||||||||||||||||||
44 | 81 | — | — | — | — | — | 3 | — | ||||||||||||||||||||||||||||||||||
(787 | ) | (558 | ) | (523 | ) | (320 | ) | (2,625 | ) | (1,443 | ) | — | (2,690 | ) | — | |||||||||||||||||||||||||||
(680 | ) | (426 | ) | (486 | ) | (273 | ) | (2,620 | ) | (1,397 | ) | — | (2,671 | ) | — | |||||||||||||||||||||||||||
29,944 | 8,357 | 405 | 271 | 932 | 1,427 | 242 | 201 | — | ||||||||||||||||||||||||||||||||||
426 | 338 | — | — | — | — | — | 6 | — | ||||||||||||||||||||||||||||||||||
(5,451 | ) | (2,664 | ) | (520 | ) | (239 | ) | (3,931 | ) | (3,469 | ) | (894 | ) | (499 | ) | — | ||||||||||||||||||||||||||
24,919 | 6,031 | (115 | ) | 32 | (2,999 | ) | (2,042 | ) | (652 | ) | (292 | ) | — | |||||||||||||||||||||||||||||
46,563 | 25,869 | 1,127 | 1,204 | 9,184 | 7,603 | 1,416 | 1,693 | — | ||||||||||||||||||||||||||||||||||
1,183 | 1,255 | — | — | — | — | 1 | 18 | — | ||||||||||||||||||||||||||||||||||
(65,341 | ) | (6,732 | ) | (865 | ) | (314 | ) | (21,453 | ) | (9,240 | ) | (2,197 | ) | (1,683 | ) | — | ||||||||||||||||||||||||||
(17,595 | ) | 20,392 | 262 | 890 | (12,269 | ) | (1,637 | ) | (780 | ) | 28 | — | ||||||||||||||||||||||||||||||
946,590 | 382,082 | 34,078 | 26,506 | 80,890 | 68,946 | 20,325 | 17,091 | 27,104 | ||||||||||||||||||||||||||||||||||
20,949 | 14,186 | — | — | 133 | — | 635 | 1,747 | — | ||||||||||||||||||||||||||||||||||
(341,090 | ) | (269,156 | ) | (28,262 | ) | (14,191 | ) | (77,159 | ) | (76,685 | ) | (25,790 | ) | (27,723 | ) | — | ||||||||||||||||||||||||||
626,449 | 127,112 | 5,816 | 12,315 | 3,864 | (7,739 | ) | (4,830 | ) | (8,885 | ) | 27,104 | |||||||||||||||||||||||||||||||
883,019 | 286,415 | 5,540 | 9,210 | (36,186 | ) | 79,582 | (9,825 | ) | (11,407 | ) | 27,104 | |||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
1,406,302 | 317,447 | 48,125 | 30,568 | 114,077 | 162,393 | 34,213 | (11,004 | ) | 27,300 | |||||||||||||||||||||||||||||||||
1,014,542 | 697,095 | 138,460 | 107,892 | 665,156 | 502,763 | 182,948 | 193,952 | — | ||||||||||||||||||||||||||||||||||
$ | 2,420,844 | $ | 1,014,542 | $ | 186,585 | $ | 138,460 | $ | 779,233 | $ | 665,156 | $ | 217,161 | $ | 182,948 | $ | 27,300 | |||||||||||||||||||||||||
$ | (12 | ) | $ | (10 | ) | $ | (9 | ) | $ | (8 | ) | $ | (13 | ) | $ | 170 | $ | (11 | ) | $ | (7 | ) | $ | 52 | ||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 103
Table of Contents
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 | ||||||||||||||||||||||||||||||||||
Equity Income Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.76 | $ | 0.34 | $ | 1.63 | $ | 1.97 | $ | (0.31 | ) | $ | — | $ | (0.31 | ) | $ | 12.42 | |||||||||||||||||||||||
20092 | 10.09 | 0.29 | 0.71 | 1.00 | (0.33 | ) | — | (0.33 | ) | 10.76 | |||||||||||||||||||||||||||||||
20082 | 16.43 | 0.33 | (5.28 | ) | (4.95 | ) | (0.29 | ) | (1.10 | ) | (1.39 | ) | 10.09 | ||||||||||||||||||||||||||||
20072 | 15.90 | 0.29 | 1.96 | 2.25 | (0.29 | ) | (1.43 | ) | (1.72 | ) | 16.43 | ||||||||||||||||||||||||||||||
20062 | 13.67 | 0.20 | 2.32 | 2.52 | (0.21 | ) | (0.08 | ) | (0.29 | ) | 15.90 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.61 | $ | 0.24 | $ | 1.61 | $ | 1.85 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | $ | 12.25 | |||||||||||||||||||||||
20092 | 9.96 | 0.22 | 0.68 | 0.90 | (0.25 | ) | — | (0.25 | ) | 10.61 | |||||||||||||||||||||||||||||||
20082 | 16.23 | 0.22 | (5.19 | ) | (4.97 | ) | (0.20 | ) | (1.10 | ) | (1.30 | ) | 9.96 | ||||||||||||||||||||||||||||
20072 | 15.75 | 0.17 | 1.94 | 2.11 | (0.20 | ) | (1.43 | ) | (1.63 | ) | 16.23 | ||||||||||||||||||||||||||||||
20062 | 13.57 | 0.09 | 2.30 | 2.39 | (0.13 | ) | (0.08 | ) | (0.21 | ) | 15.75 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.63 | $ | 0.26 | $ | 1.60 | $ | 1.86 | $ | (0.23 | ) | $ | — | $ | (0.23 | ) | $ | 12.26 | |||||||||||||||||||||||
20092 | 9.98 | 0.21 | 0.69 | 0.90 | (0.25 | ) | — | (0.25 | ) | 10.63 | |||||||||||||||||||||||||||||||
20082 | 16.26 | 0.22 | (5.20 | ) | (4.98 | ) | (0.20 | ) | (1.10 | ) | (1.30 | ) | 9.98 | ||||||||||||||||||||||||||||
20072 | 15.78 | 0.17 | 1.94 | 2.11 | (0.20 | ) | (1.43 | ) | (1.63 | ) | 16.26 | ||||||||||||||||||||||||||||||
20062 | 13.59 | 0.10 | 2.30 | 2.40 | (0.13 | ) | (0.08 | ) | (0.21 | ) | 15.78 | ||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.76 | $ | 0.30 | $ | 1.64 | $ | 1.94 | $ | (0.29 | ) | $ | — | $ | (0.29 | ) | $ | 12.41 | |||||||||||||||||||||||
20092 | 10.08 | 0.28 | 0.68 | 0.96 | (0.28 | ) | — | (0.28 | ) | 10.76 | |||||||||||||||||||||||||||||||
20082 | 16.41 | 0.29 | (5.26 | ) | (4.97 | ) | (0.26 | ) | (1.10 | ) | (1.36 | ) | 10.08 | ||||||||||||||||||||||||||||
20072 | 15.88 | 0.23 | 1.98 | 2.21 | (0.25 | ) | (1.43 | ) | (1.68 | ) | 16.41 | ||||||||||||||||||||||||||||||
20062 | 13.66 | 0.17 | 2.31 | 2.48 | (0.18 | ) | (0.08 | ) | (0.26 | ) | 15.88 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.85 | $ | 0.37 | $ | 1.65 | $ | 2.02 | $ | (0.34 | ) | $ | — | $ | (0.34 | ) | $ | 12.53 | |||||||||||||||||||||||
20092 | 10.18 | 0.32 | 0.70 | 1.02 | (0.35 | ) | — | (0.35 | ) | 10.85 | |||||||||||||||||||||||||||||||
20082 | 16.55 | 0.36 | (5.30 | ) | (4.94 | ) | (0.33 | ) | (1.10 | ) | (1.43 | ) | 10.18 | ||||||||||||||||||||||||||||
20072 | 16.00 | 0.33 | 1.98 | 2.31 | (0.33 | ) | (1.43 | ) | (1.76 | ) | 16.55 | ||||||||||||||||||||||||||||||
20062 | 13.76 | 0.24 | 2.33 | 2.57 | (0.25 | ) | (0.08 | ) | (0.33 | ) | 16.00 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Total return does not include 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
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Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Income | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
18.46 | % | $ | 125,226 | 1.17 | % | 2.89 | % | 1.19 | % | 2.87 | % | 29 | % | |||||||||||||||||||||||
10.32 | 100,059 | 1.19 | 3.00 | 1.19 | 3.00 | 48 | ||||||||||||||||||||||||||||||
(32.51 | ) | 100,824 | 1.17 | 2.45 | 1.17 | 2.45 | 32 | |||||||||||||||||||||||||||||
15.24 | 179,379 | 1.16 | 1.83 | 1.16 | 1.83 | 20 | ||||||||||||||||||||||||||||||
18.66 | 171,814 | 1.18 | 1.40 | 1.18 | 1.40 | 23 | ||||||||||||||||||||||||||||||
17.59 | % | $ | 5,039 | 1.92 | % | 2.07 | % | 1.94 | % | 2.05 | % | 29 | % | |||||||||||||||||||||||
9.41 | 7,237 | 1.94 | 2.28 | 1.94 | 2.28 | 48 | ||||||||||||||||||||||||||||||
(32.95 | ) | 9,113 | 1.92 | 1.69 | 1.92 | 1.69 | 32 | |||||||||||||||||||||||||||||
14.40 | 16,893 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||||||||||||
17.76 | 19,845 | 1.93 | 0.65 | 1.93 | 0.65 | 23 | ||||||||||||||||||||||||||||||
17.60 | % | $ | 11,107 | 1.92 | % | 2.22 | % | 1.94 | % | 2.20 | % | 29 | % | |||||||||||||||||||||||
9.41 | 4,921 | 1.94 | 2.23 | 1.94 | 2.23 | 48 | ||||||||||||||||||||||||||||||
(32.95 | ) | 4,625 | 1.92 | 1.69 | 1.92 | 1.69 | 32 | |||||||||||||||||||||||||||||
14.37 | 9,241 | 1.91 | 1.09 | 1.91 | 1.09 | 20 | ||||||||||||||||||||||||||||||
17.80 | 11,225 | 1.93 | 0.68 | 1.93 | 0.68 | 23 | ||||||||||||||||||||||||||||||
18.16 | % | $ | 1,204 | 1.39 | % | 2.50 | % | 1.41 | % | 2.48 | % | 29 | % | |||||||||||||||||||||||
9.92 | 122 | 1.45 | 2.94 | 1.45 | 2.94 | 48 | ||||||||||||||||||||||||||||||
(32.64 | ) | 535 | 1.42 | 2.20 | 1.42 | 2.20 | 32 | |||||||||||||||||||||||||||||
14.98 | 940 | 1.41 | 1.48 | 1.41 | 1.48 | 20 | ||||||||||||||||||||||||||||||
18.33 | 511 | 1.43 | 1.14 | 1.57 | 1.00 | 23 | ||||||||||||||||||||||||||||||
18.78 | % | $ | 684,540 | 0.92 | % | 3.12 | % | 0.94 | % | 3.10 | % | 29 | % | |||||||||||||||||||||||
10.51 | 570,690 | 0.94 | 3.25 | 0.94 | 3.25 | 48 | ||||||||||||||||||||||||||||||
(32.29 | ) | 574,162 | 0.92 | 2.70 | 0.92 | 2.70 | 32 | |||||||||||||||||||||||||||||
15.54 | 1,061,433 | 0.91 | 2.09 | 0.91 | 2.09 | 20 | ||||||||||||||||||||||||||||||
18.89 | 1,129,971 | 0.93 | 1.65 | 0.93 | 1.65 | 23 | ||||||||||||||||||||||||||||||
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
�� | Realized and | ||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | End of | ||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Period | ||||||||||||||||||||||||||
Global Infrastructure Fund1 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20102 | $ | 7.80 | $ | 0.16 | $ | 1.58 | $ | 1.74 | $ | (0.12 | ) | $ | 9.42 | ||||||||||||||||||
20092 | 6.43 | 0.16 | 1.29 | 1.45 | (0.08 | ) | 7.80 | ||||||||||||||||||||||||
20083 | 10.00 | 0.05 | (3.62 | ) | (3.57 | ) | — | 6.43 | |||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20102 | $ | 7.75 | $ | 0.09 | $ | 1.57 | $ | 1.66 | $ | (0.09 | ) | $ | 9.32 | ||||||||||||||||||
20094 | 6.48 | 0.11 | 1.24 | 1.35 | (0.08 | ) | 7.75 | ||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
20102 | $ | 7.78 | $ | 0.13 | $ | 1.59 | $ | 1.72 | $ | (0.10 | ) | $ | 9.40 | ||||||||||||||||||
20094 | 6.48 | 0.14 | 1.24 | 1.38 | (0.08 | ) | 7.78 | ||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20102 | $ | 7.82 | $ | 0.18 | $ | 1.59 | $ | 1.77 | $ | (0.13 | ) | $ | 9.46 | ||||||||||||||||||
20092 | 6.43 | 0.17 | 1.30 | 1.47 | (0.08 | ) | 7.82 | ||||||||||||||||||||||||
20083 | 10.00 | 0.16 | (3.73 | ) | (3.57 | ) | — | 6.43 | |||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Commenced operations on December 17, 2007. All ratios for the period ended October 31, 2008 have been annualized, except total return and portfolio turnover. | |
4 | Commenced operations on November 3, 2008. All ratios for the period ended October 31, 2009 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.
106 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
22.56 | % | $ | 57,594 | 1.25 | % | 1.93 | % | 1.88 | % | 1.30 | % | 314 | % | |||||||||||||||||||||||
22.76 | 19,901 | 1.25 | 2.34 | 2.47 | 1.12 | 299 | ||||||||||||||||||||||||||||||
(35.70 | ) | 4,022 | 1.25 | 0.80 | 4.16 | (2.11 | ) | 304 | ||||||||||||||||||||||||||||
21.62 | % | $ | 8,103 | 2.00 | % | 1.14 | % | 2.63 | % | 0.51 | % | 314 | % | |||||||||||||||||||||||
21.00 | 3,034 | 2.00 | 1.59 | 3.22 | 0.37 | 299 | ||||||||||||||||||||||||||||||
22.27 | % | $ | 8 | 1.50 | % | 1.54 | % | 2.13 | % | 0.91 | % | 314 | % | |||||||||||||||||||||||
21.48 | 6 | 1.50 | 2.15 | 2.72 | 0.93 | 299 | ||||||||||||||||||||||||||||||
22.92 | % | $ | 87,980 | 1.00 | % | 2.13 | % | 1.63 | % | 1.50 | % | 314 | % | |||||||||||||||||||||||
23.14 | 36,595 | 1.00 | 2.57 | 2.22 | 1.35 | 299 | ||||||||||||||||||||||||||||||
(35.70 | ) | 17,221 | 0.99 | 2.18 | 3.90 | (0.73 | ) | 304 | ||||||||||||||||||||||||||||
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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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
International Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.78 | $ | 0.07 | $ | 0.81 | $ | 0.88 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 11.62 | |||||||||||||||||||||||
20092 | 8.68 | 0.09 | 2.09 | 2.18 | (0.08 | ) | — | (0.08 | ) | 10.78 | |||||||||||||||||||||||||||||||
20082 | 17.15 | 0.26 | (7.14 | ) | (6.88 | ) | (0.14 | ) | (1.45 | ) | (1.59 | ) | 8.68 | ||||||||||||||||||||||||||||
20072 | 14.80 | 0.15 | 2.59 | 2.74 | (0.13 | ) | (0.26 | ) | (0.39 | ) | 17.15 | ||||||||||||||||||||||||||||||
20062 | 12.01 | 0.12 | 2.80 | 2.92 | (0.13 | ) | — | (0.13 | ) | 14.80 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.84 | $ | (0.02 | ) | $ | 0.75 | $ | 0.73 | $ | — | $ | — | $ | — | $ | 10.57 | ||||||||||||||||||||||||
20092 | 7.92 | 0.02 | 1.90 | 1.92 | — | — | — | 9.84 | |||||||||||||||||||||||||||||||||
20082 | 15.78 | 0.14 | (6.52 | ) | (6.38 | ) | (0.03 | ) | (1.45 | ) | (1.48 | ) | 7.92 | ||||||||||||||||||||||||||||
20072 | 13.65 | 0.03 | 2.39 | 2.42 | (0.03 | ) | (0.26 | ) | (0.29 | ) | 15.78 | ||||||||||||||||||||||||||||||
20062 | 11.09 | 0.02 | 2.58 | 2.60 | (0.04 | ) | — | (0.04 | ) | 13.65 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.26 | $ | (0.02 | ) | $ | 0.79 | $ | 0.77 | $ | — | $ | — | $ | — | $ | 11.03 | ||||||||||||||||||||||||
20092 | 8.25 | 0.02 | 1.99 | 2.01 | — | — | — | 10.26 | |||||||||||||||||||||||||||||||||
20082 | 16.36 | 0.15 | (6.79 | ) | (6.64 | ) | (0.02 | ) | (1.45 | ) | (1.47 | ) | 8.25 | ||||||||||||||||||||||||||||
20072 | 14.13 | 0.03 | 2.48 | 2.51 | (0.02 | ) | (0.26 | ) | (0.28 | ) | 16.36 | ||||||||||||||||||||||||||||||
20062 | 11.47 | 0.02 | 2.67 | 2.69 | (0.03 | ) | — | (0.03 | ) | 14.13 | |||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.78 | $ | 0.04 | $ | 0.82 | $ | 0.86 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 11.61 | |||||||||||||||||||||||
20092 | 8.67 | 0.07 | 2.11 | 2.18 | (0.07 | ) | — | (0.07 | ) | 10.78 | |||||||||||||||||||||||||||||||
20082 | 17.17 | 0.19 | (7.10 | ) | (6.91 | ) | (0.14 | ) | (1.45 | ) | (1.59 | ) | 8.67 | ||||||||||||||||||||||||||||
20072 | 14.81 | 0.10 | 2.61 | 2.71 | (0.09 | ) | (0.26 | ) | (0.35 | ) | 17.17 | ||||||||||||||||||||||||||||||
20062 | 11.94 | 0.05 | 2.82 | 2.87 | — | — | — | 14.81 | |||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.92 | $ | 0.10 | $ | 0.83 | $ | 0.93 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 11.78 | |||||||||||||||||||||||
20092 | 8.81 | 0.11 | 2.12 | 2.23 | (0.12 | ) | — | (0.12 | ) | 10.92 | |||||||||||||||||||||||||||||||
20082 | 17.38 | 0.30 | (7.24 | ) | (6.94 | ) | (0.18 | ) | (1.45 | ) | (1.63 | ) | 8.81 | ||||||||||||||||||||||||||||
20072 | 14.99 | 0.19 | 2.62 | 2.81 | (0.16 | ) | (0.26 | ) | (0.42 | ) | 17.38 | ||||||||||||||||||||||||||||||
20062 | 12.16 | 0.16 | 2.83 | 2.99 | (0.16 | ) | — | (0.16 | ) | 14.99 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. | |
4 | During the period indicated, the fund received a regulatory settlement, which had no impact on total return. |
The accompanying notes are an integral part of the financial statements.
108 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
8 | .21% | $ | 26,698 | 1.48 | % | 0.62 | % | 1.59 | % | 0.51 | % | 56 | % | |||||||||||||||||||||||
25 | .294 | 27,995 | 1.49 | 1.00 | 1.59 | 0.90 | 231 | |||||||||||||||||||||||||||||
(43 | .82) | 25,342 | 1.49 | 1.92 | 1.54 | 1.87 | 18 | |||||||||||||||||||||||||||||
18 | .92 | 56,705 | 1.49 | 0.97 | 1.53 | 0.93 | 14 | |||||||||||||||||||||||||||||
24 | .50 | 52,489 | 1.51 | 0.89 | 1.54 | 0.86 | 17 | |||||||||||||||||||||||||||||
7 | .42% | $ | 1,497 | 2.23 | % | (0.15 | )% | 2.34 | % | (0.26 | )% | 56 | % | |||||||||||||||||||||||
24 | .244 | 1,976 | 2.24 | 0.23 | 2.34 | 0.13 | 231 | |||||||||||||||||||||||||||||
(44 | .19) | 2,499 | 2.24 | 1.16 | 2.29 | 1.11 | 18 | |||||||||||||||||||||||||||||
18 | .05 | 6,668 | 2.24 | 0.22 | 2.28 | 0.18 | 14 | |||||||||||||||||||||||||||||
23 | .50 | 7,172 | 2.26 | 0.15 | 2.29 | 0.12 | 17 | |||||||||||||||||||||||||||||
7 | .50% | $ | 2,607 | 2.23 | % | (0.14 | )% | 2.34 | % | (0.25 | )% | 56 | % | |||||||||||||||||||||||
24 | .364 | 3,269 | 2.24 | 0.24 | 2.34 | 0.14 | 231 | |||||||||||||||||||||||||||||
(44 | .21) | 3,232 | 2.24 | 1.20 | 2.29 | 1.15 | 18 | |||||||||||||||||||||||||||||
18 | .09 | 7,173 | 2.24 | 0.20 | 2.28 | 0.16 | 14 | |||||||||||||||||||||||||||||
23 | .53 | 8,049 | 2.26 | 0.16 | 2.29 | 0.13 | 17 | |||||||||||||||||||||||||||||
7 | .94% | $ | 6 | 1.73 | % | 0.38 | % | 1.84 | % | 0.27 | % | 56 | % | |||||||||||||||||||||||
25 | .394 | 5 | 1.74 | 0.73 | 1.84 | 0.63 | 231 | |||||||||||||||||||||||||||||
(43 | .94) | 2 | 1.74 | 1.40 | 1.79 | 1.35 | 18 | |||||||||||||||||||||||||||||
18 | .66 | 4 | 1.74 | 0.60 | 1.78 | 0.56 | 14 | |||||||||||||||||||||||||||||
24 | .04 | 1 | 1.76 | 0.39 | 1.91 | 0.24 | 17 | |||||||||||||||||||||||||||||
8 | .52% | $ | 652,664 | 1.23 | % | 0.87 | % | 1.34 | % | 0.76 | % | 56 | % | |||||||||||||||||||||||
25 | .684 | 680,309 | 1.24 | 1.25 | 1.34 | 1.15 | 231 | |||||||||||||||||||||||||||||
(43 | .68) | 658,276 | 1.24 | 2.19 | 1.29 | 2.14 | 18 | |||||||||||||||||||||||||||||
19 | .23 | 1,670,810 | 1.24 | 1.21 | 1.28 | 1.17 | 14 | |||||||||||||||||||||||||||||
24 | .81 | 1,738,254 | 1.26 | 1.16 | 1.29 | 1.13 | 17 | |||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 109
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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 | ||||||||||||||||||||||||||||||||||
International Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.48 | $ | 0.06 | $ | 1.02 | $ | 1.08 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 9.54 | |||||||||||||||||||||||
20092 | 6.53 | 0.07 | 2.00 | 2.07 | (0.12 | ) | — | (0.12 | ) | 8.48 | |||||||||||||||||||||||||||||||
20082 | 12.15 | 0.15 | (5.52 | ) | (5.37 | ) | (0.06 | ) | (0.19 | ) | (0.25 | ) | 6.53 | ||||||||||||||||||||||||||||
20073 | 10.00 | 0.09 | 2.07 | 2.16 | (0.01 | ) | — | (0.01 | ) | 12.15 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.42 | $ | 0.01 | $ | 1.00 | $ | 1.01 | $ | — | $ | — | $ | — | $ | 9.43 | |||||||||||||||||||||||||
20092 | 6.46 | 0.03 | 1.97 | 2.00 | (0.04 | ) | — | (0.04 | ) | 8.42 | |||||||||||||||||||||||||||||||
20082 | 12.07 | 0.09 | (5.48 | ) | (5.39 | ) | (0.03 | ) | (0.19 | ) | (0.22 | ) | 6.46 | ||||||||||||||||||||||||||||
20073 | 10.00 | 0.03 | 2.04 | 2.07 | — | — | — | 12.07 | |||||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.42 | $ | 0.05 | $ | 1.01 | $ | 1.06 | $ | — | $ | — | $ | — | $ | 9.48 | |||||||||||||||||||||||||
20092 | 6.52 | 0.09 | 1.94 | 2.03 | (0.13 | ) | — | (0.13 | ) | 8.42 | |||||||||||||||||||||||||||||||
20082 | 12.12 | 0.08 | (5.46 | ) | (5.38 | ) | (0.03 | ) | (0.19 | ) | (0.22 | ) | 6.52 | ||||||||||||||||||||||||||||
20073 | 10.00 | 0.07 | 2.06 | 2.13 | (0.01 | ) | — | (0.01 | ) | 12.12 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.49 | $ | 0.09 | $ | 1.02 | $ | 1.11 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | $ | 9.57 | |||||||||||||||||||||||
20092 | 6.55 | 0.08 | 2.01 | 2.09 | (0.15 | ) | — | (0.15 | ) | 8.49 | |||||||||||||||||||||||||||||||
20082 | 12.17 | 0.17 | (5.52 | ) | (5.35 | ) | (0.08 | ) | (0.19 | ) | (0.27 | ) | 6.55 | ||||||||||||||||||||||||||||
20073 | 10.00 | 0.13 | 2.05 | 2.18 | (0.01 | ) | — | (0.01 | ) | 12.17 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | Commenced operations on December 21, 2006. All ratios for the period ended October 31, 2007 have been annualized, except total return and portfolio turnover. | |
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.
110 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
12.72 | % | $ | 5,530 | 1.49 | % | 0.69 | % | 1.62 | % | 0.56 | % | 47 | % | |||||||||||||||||||||||
32.32 | 3,029 | 1.49 | 1.04 | 1.76 | 0.77 | 64 | ||||||||||||||||||||||||||||||
(45.00 | ) | 1,904 | 1.49 | 1.52 | 1.70 | 1.31 | 63 | |||||||||||||||||||||||||||||
21.58 | 3,228 | 1.49 | 0.95 | 1.89 | 0.55 | 45 | ||||||||||||||||||||||||||||||
12.00 | % | $ | 816 | 2.24 | % | 0.08 | % | 2.37 | % | (0.05 | )% | 47 | % | |||||||||||||||||||||||
31.43 | 244 | 2.24 | 0.40 | 2.51 | 0.13 | 64 | ||||||||||||||||||||||||||||||
(45.39 | ) | 226 | 2.24 | 0.92 | 2.45 | 0.71 | 63 | |||||||||||||||||||||||||||||
20.75 | 287 | 2.24 | 0.30 | 2.64 | (0.10 | ) | 45 | |||||||||||||||||||||||||||||
12.59 | % | $ | 7 | 1.74 | % | 0.53 | % | 1.87 | % | 0.40 | % | 47 | % | |||||||||||||||||||||||
31.99 | 19 | 1.74 | 1.30 | 2.01 | 1.03 | 64 | ||||||||||||||||||||||||||||||
(45.10 | ) | 48 | 1.74 | 0.90 | 1.95 | 0.69 | 63 | |||||||||||||||||||||||||||||
21.27 | 17 | 1.74 | 0.77 | 2.14 | 0.37 | 45 | ||||||||||||||||||||||||||||||
13.14 | % | $ | 848,165 | 1.24 | % | 0.98 | % | 1.37 | % | 0.85 | % | 47 | % | |||||||||||||||||||||||
32.68 | 584,667 | 1.24 | 1.17 | 1.51 | 0.90 | 64 | ||||||||||||||||||||||||||||||
(44.86 | ) | 249,805 | 1.24 | 1.72 | 1.45 | 1.51 | 63 | |||||||||||||||||||||||||||||
21.78 | 343,161 | 1.24 | 1.36 | 1.64 | 0.96 | 45 | ||||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 111
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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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Large Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 24.23 | $ | (0.09 | ) | $ | 6.15 | $ | 6.06 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 30.24 | ||||||||||||||||||||||
20092 | 21.52 | 0.05 | 2.68 | 2.73 | (0.02 | ) | — | (0.02 | ) | 24.23 | |||||||||||||||||||||||||||||||
20082 | 36.27 | 0.02 | (11.65 | ) | (11.63 | ) | — | (3.12 | ) | (3.12 | ) | 21.52 | |||||||||||||||||||||||||||||
20072 | 29.58 | (0.05 | ) | 7.08 | 7.03 | — | (0.34 | ) | (0.34 | ) | 36.27 | ||||||||||||||||||||||||||||||
20062 | 27.86 | (0.02 | ) | 1.74 | 1.72 | — | — | — | 29.58 | ||||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 22.31 | $ | (0.26 | ) | $ | 5.63 | $ | 5.37 | $ | — | $ | — | $ | — | $ | 27.68 | ||||||||||||||||||||||||
20092 | 19.93 | (0.09 | ) | 2.47 | 2.38 | — | — | — | 22.31 | ||||||||||||||||||||||||||||||||
20082 | 34.08 | (0.19 | ) | (10.84 | ) | (11.03 | ) | — | (3.12 | ) | (3.12 | ) | 19.93 | ||||||||||||||||||||||||||||
20072 | 28.01 | (0.27 | ) | 6.68 | 6.41 | — | (0.34 | ) | (0.34 | ) | 34.08 | ||||||||||||||||||||||||||||||
20062 | 26.58 | (0.22 | ) | 1.65 | 1.43 | — | — | — | 28.01 | ||||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 22.81 | $ | (0.27 | ) | $ | 5.76 | $ | 5.49 | $ | — | $ | — | $ | — | $ | 28.30 | ||||||||||||||||||||||||
20092 | 20.38 | (0.10 | ) | 2.53 | 2.43 | — | — | — | 22.81 | ||||||||||||||||||||||||||||||||
20082 | 34.77 | (0.19 | ) | (11.08 | ) | (11.27 | ) | — | (3.12 | ) | (3.12 | ) | 20.38 | ||||||||||||||||||||||||||||
20072 | 28.58 | (0.28 | ) | 6.81 | 6.53 | — | (0.34 | ) | (0.34 | ) | 34.77 | ||||||||||||||||||||||||||||||
20062 | 27.12 | (0.23 | ) | 1.69 | 1.46 | — | — | — | 28.58 | ||||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 23.92 | $ | (0.16 | ) | $ | 6.07 | $ | 5.91 | $ | — | $ | — | $ | — | $ | 29.83 | ||||||||||||||||||||||||
20092 | 21.26 | (0.01 | ) | 2.67 | 2.66 | — | — | — | 23.92 | ||||||||||||||||||||||||||||||||
20082 | 35.97 | (0.05 | ) | (11.54 | ) | (11.59 | ) | — | (3.12 | ) | (3.12 | ) | 21.26 | ||||||||||||||||||||||||||||
20072 | 29.41 | (0.12 | ) | 7.02 | 6.90 | — | (0.34 | ) | (0.34 | ) | 35.97 | ||||||||||||||||||||||||||||||
20062 | 27.78 | (0.09 | ) | 1.72 | 1.63 | — | — | — | 29.41 | ||||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 25.09 | $ | (0.03 | ) | $ | 6.38 | $ | 6.35 | $ | (0.11 | ) | $ | — | $ | (0.11 | ) | $ | 31.33 | ||||||||||||||||||||||
20092 | 22.31 | 0.11 | 2.77 | 2.88 | (0.10 | ) | — | (0.10 | ) | 25.09 | |||||||||||||||||||||||||||||||
20082 | 37.42 | 0.10 | (12.07 | ) | (11.97 | ) | (0.02 | ) | (3.12 | ) | (3.14 | ) | 22.31 | ||||||||||||||||||||||||||||
20072 | 30.48 | 0.03 | 7.30 | 7.33 | (0.05 | ) | (0.34 | ) | (0.39 | ) | 37.42 | ||||||||||||||||||||||||||||||
20062 | 28.64 | 0.05 | 1.79 | 1.84 | — | — | — | 30.48 | |||||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
112 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
25.03 | % | $ | 66,409 | 1.20 | % | (0.35 | )% | 1.21 | % | (0.36 | )% | 106 | % | |||||||||||||||||||||||
12.73 | 56,963 | 1.22 | 0.24 | 1.22 | 0.24 | 112 | ||||||||||||||||||||||||||||||
(34.81 | ) | 53,430 | 1.20 | 0.07 | 1.20 | 0.07 | 92 | |||||||||||||||||||||||||||||
24.01 | 96,514 | 1.19 | (0.15 | ) | 1.19 | (0.15 | ) | 102 | ||||||||||||||||||||||||||||
6.17 | 90,285 | 1.19 | (0.07 | ) | 1.19 | (0.07 | ) | 94 | ||||||||||||||||||||||||||||
24.07 | % | $ | 3,473 | 1.95 | % | (1.06 | )% | 1.96 | % | (1.07 | )% | 106 | % | |||||||||||||||||||||||
11.94 | 4,749 | 1.97 | (0.48 | ) | 1.97 | (0.48 | ) | 112 | ||||||||||||||||||||||||||||
(35.33 | ) | 5,907 | 1.95 | (0.68 | ) | 1.95 | (0.68 | ) | 92 | |||||||||||||||||||||||||||
23.13 | 11,955 | 1.94 | (0.90 | ) | 1.94 | (0.90 | ) | 102 | ||||||||||||||||||||||||||||
5.38 | 13,990 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | ||||||||||||||||||||||||||||
24.07 | % | $ | 4,220 | 1.95 | % | (1.08 | )% | 1.96 | % | (1.09 | )% | 106 | % | |||||||||||||||||||||||
11.92 | 4,509 | 1.97 | (0.51 | ) | 1.97 | (0.51 | ) | 112 | ||||||||||||||||||||||||||||
(35.31 | ) | 4,368 | 1.95 | (0.68 | ) | 1.95 | (0.68 | ) | 92 | |||||||||||||||||||||||||||
23.09 | 8,506 | 1.94 | (0.90 | ) | 1.94 | (0.90 | ) | 102 | ||||||||||||||||||||||||||||
5.38 | 8,424 | 1.94 | (0.82 | ) | 1.94 | (0.82 | ) | 94 | ||||||||||||||||||||||||||||
24.71 | % | $ | 742 | 1.45 | % | (0.59 | )% | 1.46 | % | (0.60 | )% | 106 | % | |||||||||||||||||||||||
12.51 | 667 | 1.47 | (0.05 | ) | 1.47 | (0.05 | ) | 112 | ||||||||||||||||||||||||||||
(35.00 | ) | 454 | 1.45 | (0.18 | ) | 1.45 | (0.18 | ) | 92 | |||||||||||||||||||||||||||
23.70 | 566 | 1.44 | (0.39 | ) | 1.44 | (0.39 | ) | 102 | ||||||||||||||||||||||||||||
5.87 | 558 | 1.44 | (0.32 | ) | 1.57 | (0.45 | ) | 94 | ||||||||||||||||||||||||||||
25.34 | % | $ | 546,605 | 0.95 | % | (0.10 | )% | 0.96 | % | (0.11 | )% | 106 | % | |||||||||||||||||||||||
13.02 | 482,222 | 0.97 | 0.48 | 0.97 | 0.48 | 112 | ||||||||||||||||||||||||||||||
(34.65 | ) | 417,337 | 0.95 | 0.32 | 0.95 | 0.32 | 92 | |||||||||||||||||||||||||||||
24.32 | 749,865 | 0.94 | 0.11 | 0.94 | 0.11 | 102 | ||||||||||||||||||||||||||||||
6.42 | 793,853 | 0.94 | 0.18 | 0.94 | 0.18 | 94 | ||||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 113
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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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Large Cap Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.80 | $ | (0.01 | ) | $ | 1.92 | $ | 1.91 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 11.65 | ||||||||||||||||||||||
20092 | 8.83 | 0.04 | 0.97 | 1.01 | (0.04 | ) | — | (0.04 | ) | 9.80 | |||||||||||||||||||||||||||||||
20082 | 17.05 | 0.06 | (6.04 | ) | (5.98 | ) | (0.04 | ) | (2.20 | ) | (2.24 | ) | 8.83 | ||||||||||||||||||||||||||||
20072 | 15.18 | 0.03 | 2.12 | 2.15 | (0.03 | ) | (0.25 | ) | (0.28 | ) | 17.05 | ||||||||||||||||||||||||||||||
20062 | 14.30 | 0.06 | 1.48 | 1.54 | (0.06 | ) | (0.60 | ) | (0.66 | ) | 15.18 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.46 | $ | (0.08 | ) | $ | 1.84 | $ | 1.76 | $ | — | $ | — | $ | — | $ | 11.22 | ||||||||||||||||||||||||
20092 | 8.56 | (0.02 | ) | 0.93 | 0.91 | (0.01 | ) | — | (0.01 | ) | 9.46 | ||||||||||||||||||||||||||||||
20082 | 16.69 | (0.03 | ) | (5.90 | ) | (5.93 | ) | — | (2.20 | ) | (2.20 | ) | 8.56 | ||||||||||||||||||||||||||||
20072 | 14.95 | (0.09 | ) | 2.08 | 1.99 | — | (0.25 | ) | (0.25 | ) | 16.69 | ||||||||||||||||||||||||||||||
20062 | 14.13 | (0.05 | ) | 1.48 | 1.43 | (0.01 | ) | (0.60 | ) | (0.61 | ) | 14.95 | |||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.74 | $ | (0.03 | ) | $ | 1.89 | $ | 1.86 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 11.54 | ||||||||||||||||||||||
20092 | 8.78 | 0.01 | 0.98 | 0.99 | (0.03 | ) | — | (0.03 | ) | 9.74 | |||||||||||||||||||||||||||||||
20082 | 16.97 | 0.03 | (6.00 | ) | (5.97 | ) | (0.02 | ) | (2.20 | ) | (2.22 | ) | 8.78 | ||||||||||||||||||||||||||||
20072 | 15.12 | — | 2.11 | 2.11 | (0.01 | ) | (0.25 | ) | (0.26 | ) | 16.97 | ||||||||||||||||||||||||||||||
20062 | 14.26 | 0.01 | 1.49 | 1.50 | (0.04 | ) | (0.60 | ) | (0.64 | ) | 15.12 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.85 | $ | 0.02 | $ | 1.92 | $ | 1.94 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 11.71 | |||||||||||||||||||||||
20092 | 8.87 | 0.07 | 0.96 | 1.03 | (0.05 | ) | — | (0.05 | ) | 9.85 | |||||||||||||||||||||||||||||||
20082 | 17.10 | 0.09 | (6.05 | ) | (5.96 | ) | (0.07 | ) | (2.20 | ) | (2.27 | ) | 8.87 | ||||||||||||||||||||||||||||
20072 | 15.22 | 0.07 | 2.13 | 2.20 | (0.07 | ) | (0.25 | ) | (0.32 | ) | 17.10 | ||||||||||||||||||||||||||||||
20062 | 14.33 | 0.10 | 1.49 | 1.59 | (0.10 | ) | (0.60 | ) | (0.70 | ) | 15.22 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated | |
3 | 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.
114 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
19.49 | % | $ | 3,487 | 1.32 | % | (0.06 | )% | 1.32 | % | (0.06 | )% | 140 | % | |||||||||||||||||||||||
11.54 | 3,292 | 1.29 | 0.52 | 1.29 | 0.52 | 185 | ||||||||||||||||||||||||||||||
(39.81 | ) | 3,608 | 1.21 | 0.49 | 1.21 | 0.49 | 210 | |||||||||||||||||||||||||||||
14.36 | 7,998 | 1.19 | 0.20 | 1.19 | 0.20 | 138 | ||||||||||||||||||||||||||||||
11.07 | 7,152 | 1.20 | 0.41 | 1.20 | 0.41 | 112 | ||||||||||||||||||||||||||||||
18.60 | % | $ | 175 | 2.07 | % | (0.79 | )% | 2.07 | % | (0.79 | )% | 140 | % | |||||||||||||||||||||||
10.64 | 186 | 2.05 | (0.23 | ) | 2.05 | (0.23 | ) | 185 | ||||||||||||||||||||||||||||
(40.38 | ) | 180 | 1.96 | (0.26 | ) | 1.96 | (0.26 | ) | 210 | |||||||||||||||||||||||||||
13.45 | 325 | 1.94 | (0.57 | ) | 1.94 | (0.57 | ) | 138 | ||||||||||||||||||||||||||||
10.36 | 248 | 1.95 | (0.35 | ) | 1.95 | (0.35 | ) | 112 | ||||||||||||||||||||||||||||
19.11 | % | $ | 117 | 1.58 | % | (0.32 | )% | 1.58 | % | (0.32 | )% | 140 | % | |||||||||||||||||||||||
11.31 | 66 | 1.56 | 0.12 | 1.56 | 0.12 | 185 | ||||||||||||||||||||||||||||||
(39.94 | ) | 20 | 1.46 | 0.24 | 1.46 | 0.24 | 210 | |||||||||||||||||||||||||||||
14.09 | 37 | 1.44 | 0.02 | 1.44 | 0.02 | 138 | ||||||||||||||||||||||||||||||
10.79 | 118 | 1.45 | 0.08 | 1.57 | (0.04 | ) | 112 | |||||||||||||||||||||||||||||
19.75 | % | $ | 130,803 | 1.07 | % | 0.21 | % | 1.07 | % | 0.21 | % | 140 | % | |||||||||||||||||||||||
11.81 | 147,231 | 1.04 | 0.82 | 1.04 | 0.82 | 185 | ||||||||||||||||||||||||||||||
(39.63 | ) | 207,904 | 0.96 | 0.74 | 0.96 | 0.74 | 210 | |||||||||||||||||||||||||||||
14.65 | 449,201 | 0.94 | 0.45 | 0.94 | 0.45 | 138 | ||||||||||||||||||||||||||||||
11.37 | 476,154 | 0.95 | 0.66 | 0.95 | 0.66 | 112 | ||||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 115
Table of Contents
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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Large Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 13.14 | $ | 0.09 | $ | 1.27 | $ | 1.36 | $ | (0.18 | ) | $ | — | $ | (0.18 | ) | $ | 14.32 | |||||||||||||||||||||||
20092 | 12.88 | 0.18 | 0.22 | 0.40 | (0.14 | ) | — | (0.14 | ) | 13.14 | |||||||||||||||||||||||||||||||
20082 | 22.61 | 0.25 | (7.02 | ) | (6.77 | ) | (0.16 | ) | (2.80 | ) | (2.96 | ) | 12.88 | ||||||||||||||||||||||||||||
20072 | 22.12 | 0.23 | 2.19 | 2.42 | (0.24 | ) | (1.69 | ) | (1.93 | ) | 22.61 | ||||||||||||||||||||||||||||||
20062 | 19.56 | 0.21 | 3.19 | 3.40 | (0.21 | ) | (0.63 | ) | (0.84 | ) | 22.12 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.61 | $ | (0.01 | ) | $ | 1.21 | $ | 1.20 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 13.75 | ||||||||||||||||||||||
20092 | 12.39 | 0.09 | 0.21 | 0.30 | (0.08 | ) | — | (0.08 | ) | 12.61 | |||||||||||||||||||||||||||||||
20082 | 21.92 | 0.11 | (6.77 | ) | (6.66 | ) | (0.07 | ) | (2.80 | ) | (2.87 | ) | 12.39 | ||||||||||||||||||||||||||||
20072 | 21.54 | 0.07 | 2.12 | 2.19 | (0.12 | ) | (1.69 | ) | (1.81 | ) | 21.92 | ||||||||||||||||||||||||||||||
20062 | 19.12 | 0.06 | 3.11 | 3.17 | (0.12 | ) | (0.63 | ) | (0.75 | ) | 21.54 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.81 | $ | (0.01 | ) | $ | 1.22 | $ | 1.21 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 13.97 | ||||||||||||||||||||||
20092 | 12.59 | 0.09 | 0.21 | 0.30 | (0.08 | ) | — | (0.08 | ) | 12.81 | |||||||||||||||||||||||||||||||
20082 | 22.21 | 0.11 | (6.86 | ) | (6.75 | ) | (0.07 | ) | (2.80 | ) | (2.87 | ) | 12.59 | ||||||||||||||||||||||||||||
20072 | 21.81 | 0.07 | 2.14 | 2.21 | (0.12 | ) | (1.69 | ) | (1.81 | ) | 22.21 | ||||||||||||||||||||||||||||||
20062 | 19.35 | 0.06 | 3.15 | 3.21 | (0.12 | ) | (0.63 | ) | (0.75 | ) | 21.81 | ||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 13.09 | $ | 0.05 | $ | 1.26 | $ | 1.31 | $ | (0.16 | ) | $ | — | $ | (0.16 | ) | $ | 14.24 | |||||||||||||||||||||||
20092 | 12.85 | 0.13 | 0.23 | 0.36 | (0.12 | ) | — | (0.12 | ) | 13.09 | |||||||||||||||||||||||||||||||
20082 | 22.57 | 0.20 | (6.99 | ) | (6.79 | ) | (0.13 | ) | (2.80 | ) | (2.93 | ) | 12.85 | ||||||||||||||||||||||||||||
20072 | 22.10 | 0.17 | 2.17 | 2.34 | (0.18 | ) | (1.69 | ) | (1.87 | ) | 22.57 | ||||||||||||||||||||||||||||||
20062 | 19.55 | 0.12 | 3.23 | 3.35 | (0.17 | ) | (0.63 | ) | (0.80 | ) | 22.10 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 13.23 | $ | 0.12 | $ | 1.27 | $ | 1.39 | $ | (0.21 | ) | $ | — | $ | (0.21 | ) | $ | 14.41 | |||||||||||||||||||||||
20092 | 12.95 | 0.21 | 0.23 | 0.44 | (0.16 | ) | — | (0.16 | ) | 13.23 | |||||||||||||||||||||||||||||||
20082 | 22.69 | 0.29 | (7.04 | ) | (6.75 | ) | (0.19 | ) | (2.80 | ) | (2.99 | ) | 12.95 | ||||||||||||||||||||||||||||
20072 | 22.19 | 0.29 | 2.18 | 2.47 | (0.28 | ) | (1.69 | ) | (1.97 | ) | 22.69 | ||||||||||||||||||||||||||||||
20062 | 19.62 | 0.26 | 3.21 | 3.47 | (0.27 | ) | (0.63 | ) | (0.90 | ) | 22.19 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
116 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
10.36 | % | $ | 52,567 | 1.23 | % | 0.63 | % | 1.23 | % | 0.63 | % | 135 | % | |||||||||||||||||||||||
3.24 | 55,401 | 1.22 | 1.49 | 1.22 | 1.49 | 68 | ||||||||||||||||||||||||||||||
(34.00 | ) | 60,870 | 1.19 | 1.41 | 1.19 | 1.41 | 90 | |||||||||||||||||||||||||||||
11.60 | 113,223 | 1.17 | 1.05 | 1.17 | 1.05 | 81 | ||||||||||||||||||||||||||||||
17.93 | 115,438 | 1.19 | 1.05 | 1.19 | 1.05 | 55 | ||||||||||||||||||||||||||||||
9.54 | % | $ | 1,338 | 1.98 | % | (0.10 | )% | 1.98 | % | (0.10 | )% | 135 | % | |||||||||||||||||||||||
2.48 | 2,266 | 1.97 | 0.83 | 1.97 | 0.83 | 68 | ||||||||||||||||||||||||||||||
(34.51 | ) | 3,750 | 1.94 | 0.65 | 1.94 | 0.65 | 90 | |||||||||||||||||||||||||||||
10.76 | 7,973 | 1.92 | 0.31 | 1.92 | 0.31 | 81 | ||||||||||||||||||||||||||||||
17.04 | 9,815 | 1.94 | 0.32 | 1.94 | 0.32 | 55 | ||||||||||||||||||||||||||||||
9.45 | % | $ | 1,337 | 1.98 | % | (0.10 | )% | 1.98 | % | (0.10 | )% | 135 | % | |||||||||||||||||||||||
2.47 | 2,016 | 1.97 | 0.76 | 1.97 | 0.76 | 68 | ||||||||||||||||||||||||||||||
(34.46 | ) | 2,643 | 1.94 | 0.66 | 1.94 | 0.66 | 90 | |||||||||||||||||||||||||||||
10.71 | 4,587 | 1.92 | 0.31 | 1.92 | 0.31 | 81 | ||||||||||||||||||||||||||||||
17.05 | 5,174 | 1.94 | 0.30 | 1.94 | 0.30 | 55 | ||||||||||||||||||||||||||||||
10.04 | % | $ | 794 | 1.49 | % | 0.35 | % | 1.49 | % | 0.35 | % | 135 | % | |||||||||||||||||||||||
2.96 | 340 | 1.47 | 1.06 | 1.47 | 1.06 | 68 | ||||||||||||||||||||||||||||||
(34.13 | ) | 174 | 1.44 | 1.18 | 1.44 | 1.18 | 90 | |||||||||||||||||||||||||||||
11.25 | 188 | 1.42 | 0.78 | 1.42 | 0.78 | 81 | ||||||||||||||||||||||||||||||
17.63 | 164 | 1.44 | 0.58 | 1.55 | 0.47 | 55 | ||||||||||||||||||||||||||||||
10.54 | % | $ | 286,736 | 0.98 | % | 0.89 | % | 0.98 | % | 0.89 | % | 135 | % | |||||||||||||||||||||||
3.54 | 335,589 | 0.97 | 1.76 | 0.97 | 1.76 | 68 | ||||||||||||||||||||||||||||||
(33.80 | ) | 401,006 | 0.94 | 1.66 | 0.94 | 1.66 | 90 | |||||||||||||||||||||||||||||
11.83 | 726,512 | 0.92 | 1.30 | 0.92 | 1.30 | 81 | ||||||||||||||||||||||||||||||
18.23 | 825,633 | 0.94 | 1.29 | 0.94 | 1.29 | 55 | ||||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 117
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | Total from | Distributions | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||
of Period | Loss | Investments | Operations | Realized Gains | Period | ||||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20102 | $ | 28.83 | $ | (0.18 | ) | $ | 8.61 | $ | 8.43 | $ | — | $ | 37.26 | ||||||||||||||||||
20092 | 23.88 | (0.08 | ) | 5.03 | 4.95 | — | 28.83 | ||||||||||||||||||||||||
20082 | 46.57 | (0.16 | ) | (17.86 | ) | (18.02 | ) | (4.67 | ) | 23.88 | |||||||||||||||||||||
20072 | 41.43 | (0.24 | ) | 9.19 | 8.95 | (3.81 | ) | 46.57 | |||||||||||||||||||||||
20062 | 40.77 | (0.11 | ) | 5.04 | 4.93 | (4.27 | ) | 41.43 | |||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20102 | $ | 25.43 | $ | (0.37 | ) | $ | 7.56 | $ | 7.19 | $ | — | $ | 32.62 | ||||||||||||||||||
20092 | 21.22 | (0.23 | ) | 4.44 | 4.21 | — | 25.43 | ||||||||||||||||||||||||
20082 | 42.21 | (0.38 | ) | (15.94 | ) | (16.32 | ) | (4.67 | ) | 21.22 | |||||||||||||||||||||
20072 | 38.15 | (0.51 | ) | 8.38 | 7.87 | (3.81 | ) | 42.21 | |||||||||||||||||||||||
20062 | 38.12 | (0.38 | ) | 4.68 | 4.30 | (4.27 | ) | 38.15 | |||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20102 | $ | 26.67 | $ | (0.39 | ) | $ | 7.93 | $ | 7.54 | $ | — | $ | 34.21 | ||||||||||||||||||
20092 | 22.26 | (0.24 | ) | 4.65 | 4.41 | — | 26.67 | ||||||||||||||||||||||||
20082 | 44.03 | (0.40 | ) | (16.70 | ) | (17.10 | ) | (4.67 | ) | 22.26 | |||||||||||||||||||||
20072 | 39.65 | (0.53 | ) | 8.72 | 8.19 | (3.81 | ) | 44.03 | |||||||||||||||||||||||
20062 | 39.46 | (0.40 | ) | 4.86 | 4.46 | (4.27 | ) | 39.65 | |||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
20102 | $ | 28.37 | $ | (0.26 | ) | $ | 8.47 | $ | 8.21 | $ | — | $ | 36.58 | ||||||||||||||||||
20092 | 23.56 | (0.14 | ) | 4.95 | 4.81 | — | 28.37 | ||||||||||||||||||||||||
20082 | 46.11 | (0.24 | ) | (17.64 | ) | (17.88 | ) | (4.67 | ) | 23.56 | |||||||||||||||||||||
20072 | 41.15 | (0.34 | ) | 9.11 | 8.77 | (3.81 | ) | 46.11 | |||||||||||||||||||||||
20062 | 40.61 | (0.23 | ) | 5.04 | 4.81 | (4.27 | ) | 41.15 | |||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20102 | $ | 30.94 | $ | (0.11 | ) | $ | 9.26 | $ | 9.15 | $ | — | $ | 40.09 | ||||||||||||||||||
20092 | 25.57 | (0.02 | ) | 5.39 | 5.37 | — | 30.94 | ||||||||||||||||||||||||
20082 | 49.40 | (0.07 | ) | (19.09 | ) | (19.16 | ) | (4.67 | ) | 25.57 | |||||||||||||||||||||
20072 | 43.62 | (0.14 | ) | 9.73 | 9.59 | (3.81 | ) | 49.40 | |||||||||||||||||||||||
20062 | 42.61 | (0.01 | ) | 5.29 | 5.28 | (4.27 | ) | 43.62 | |||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
118 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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�� | ||||||||||||||||||||||||||||||||||||
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Loss | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Loss | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
29.24 | % | $ | 275,040 | 1.23 | % | (0.57 | )% | 1.23 | % | (0.57 | )% | 114 | % | |||||||||||||||||||||||
20.73 | 231,743 | 1.23 | (0.33 | ) | 1.23 | (0.33 | ) | 123 | ||||||||||||||||||||||||||||
(42.75 | ) | 209,052 | 1.22 | (0.43 | ) | 1.22 | (0.43 | ) | 113 | |||||||||||||||||||||||||||
23.36 | 425,995 | 1.21 | (0.56 | ) | 1.21 | (0.56 | ) | 96 | ||||||||||||||||||||||||||||
12.69 | 322,385 | 1.23 | (0.26 | ) | 1.23 | (0.26 | ) | 75 | ||||||||||||||||||||||||||||
28.27 | % | $ | 5,490 | 1.98 | % | (1.31 | )% | 1.98 | % | (1.31 | )% | 114 | % | |||||||||||||||||||||||
19.84 | 6,762 | 1.98 | (1.06 | ) | 1.98 | (1.06 | ) | 123 | ||||||||||||||||||||||||||||
(43.18 | ) | 7,241 | 1.97 | (1.18 | ) | 1.97 | (1.18 | ) | 113 | |||||||||||||||||||||||||||
22.47 | 15,820 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||||||||||||
11.83 | 15,605 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | ||||||||||||||||||||||||||||
28.27 | % | $ | 13,564 | 1.98 | % | (1.32 | )% | 1.98 | % | (1.32 | )% | 114 | % | |||||||||||||||||||||||
19.81 | 12,894 | 1.98 | (1.07 | ) | 1.98 | (1.07 | ) | 123 | ||||||||||||||||||||||||||||
(43.16 | ) | 13,011 | 1.97 | (1.18 | ) | 1.97 | (1.18 | ) | 113 | |||||||||||||||||||||||||||
22.42 | 28,891 | 1.96 | (1.31 | ) | 1.96 | (1.31 | ) | 96 | ||||||||||||||||||||||||||||
11.84 | 19,540 | 1.98 | (1.02 | ) | 1.98 | (1.02 | ) | 75 | ||||||||||||||||||||||||||||
28.94 | % | $ | 33,772 | 1.48 | % | (0.82 | )% | 1.48 | % | (0.82 | )% | 114 | % | |||||||||||||||||||||||
20.42 | 26,822 | 1.48 | (0.59 | ) | 1.48 | (0.59 | ) | 123 | ||||||||||||||||||||||||||||
(42.88 | ) | 21,246 | 1.47 | (0.69 | ) | 1.47 | (0.69 | ) | 113 | |||||||||||||||||||||||||||
23.06 | 29,490 | 1.46 | (0.81 | ) | 1.46 | (0.81 | ) | 96 | ||||||||||||||||||||||||||||
12.41 | 17,853 | 1.48 | (0.57 | ) | 1.61 | (0.70 | ) | 75 | ||||||||||||||||||||||||||||
29.57 | % | $ | 993,053 | 0.98 | % | (0.31 | )% | 0.98 | % | (0.31 | )% | 114 | % | |||||||||||||||||||||||
21.00 | 907,825 | 0.98 | (0.09 | ) | 0.98 | (0.09 | ) | 123 | ||||||||||||||||||||||||||||
(42.59 | ) | 732,559 | 0.97 | (0.18 | ) | 0.97 | (0.18 | ) | 113 | |||||||||||||||||||||||||||
23.68 | 1,478,374 | 0.96 | (0.31 | ) | 0.96 | (0.31 | ) | 96 | ||||||||||||||||||||||||||||
12.98 | 1,243,776 | 0.98 | (0.02 | ) | 0.98 | (0.02 | ) | 75 | ||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 119
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Net | Gains | Total from | from Net | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | End of | ||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Period | ||||||||||||||||||||||||||
Mid Cap Select Fund1,2 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20103 | $ | 7.65 | $ | (0.02 | ) | $ | 1.70 | $ | 1.68 | $ | (0.02 | ) | $ | 9.31 | |||||||||||||||||
20093 | 7.00 | 0.03 | 0.62 | 0.65 | — | 7.65 | |||||||||||||||||||||||||
20083 | 10.64 | (0.01 | ) | (3.63 | ) | (3.64 | ) | — | 7.00 | ||||||||||||||||||||||
20073 | 9.57 | (0.02 | ) | 1.09 | 1.07 | — | 10.64 | ||||||||||||||||||||||||
20063 | 8.03 | 0.01 | 1.53 | 1.54 | — | 9.57 | |||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20103 | $ | 6.52 | $ | (0.07 | ) | $ | 1.45 | $ | 1.38 | $ | — | $ | 7.90 | ||||||||||||||||||
20093 | 6.01 | (0.01 | ) | 0.52 | 0.51 | — | 6.52 | ||||||||||||||||||||||||
20083 | 9.21 | (0.07 | ) | (3.13 | ) | (3.20 | ) | — | 6.01 | ||||||||||||||||||||||
20073 | 8.34 | (0.08 | ) | 0.95 | 0.87 | — | 9.21 | ||||||||||||||||||||||||
20063 | 7.06 | (0.04 | ) | 1.32 | 1.28 | — | 8.34 | ||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20103 | $ | 7.12 | $ | (0.08 | ) | $ | 1.57 | $ | 1.49 | $ | — | $ | 8.61 | ||||||||||||||||||
20093 | 6.56 | (0.01 | ) | 0.57 | 0.56 | — | 7.12 | ||||||||||||||||||||||||
20083 | 10.04 | (0.08 | ) | (3.40 | ) | (3.48 | ) | — | 6.56 | ||||||||||||||||||||||
20073 | 9.09 | (0.09 | ) | 1.04 | 0.95 | — | 10.04 | ||||||||||||||||||||||||
20063 | 7.69 | (0.05 | ) | 1.45 | 1.40 | — | 9.09 | ||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20103 | $ | 7.98 | $ | — | $ | 1.77 | $ | 1.77 | $ | (0.04 | ) | $ | 9.71 | ||||||||||||||||||
20093 | 7.31 | 0.06 | 0.64 | 0.70 | (0.03 | ) | 7.98 | ||||||||||||||||||||||||
20083 | 11.09 | 0.01 | (3.79 | ) | (3.78 | ) | — | 7.31 | |||||||||||||||||||||||
20073 | 9.95 | — | 1.15 | 1.15 | (0.01 | ) | 11.09 | ||||||||||||||||||||||||
20063 | 8.34 | 0.04 | 1.57 | 1.61 | — | 9.95 | |||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | The financial highlights for Mid Cap Select Fund as set forth herein include the historical financial highlights of the First American Technology Fund. Effective October 3, 2005, the fund’s name and strategy changed. | |
3 | For the period November 1 to October 31 in the 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.
120 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
22.03 | % | $ | 12,402 | 1.41 | % | (0.27 | )% | 1.98 | % | (0.84 | )% | 154 | % | |||||||||||||||||||||||
9.32 | 12,487 | 1.41 | 0.49 | 1.92 | (0.02 | ) | 186 | |||||||||||||||||||||||||||||
(34.21 | ) | 12,848 | 1.41 | (0.13 | ) | 1.60 | (0.32 | ) | 170 | |||||||||||||||||||||||||||
11.18 | 21,817 | 1.41 | (0.20 | ) | 1.49 | (0.28 | ) | 151 | ||||||||||||||||||||||||||||
19.18 | 26,190 | 1.39 | 0.12 | 1.46 | 0.05 | 110 | ||||||||||||||||||||||||||||||
21.17 | % | $ | 1,295 | 2.16 | % | (1.02 | )% | 2.73 | % | (1.59 | )% | 154 | % | |||||||||||||||||||||||
8.49 | 1,691 | 2.16 | (0.20 | ) | 2.67 | (0.71 | ) | 186 | ||||||||||||||||||||||||||||
(34.74 | ) | 2,512 | 2.16 | (0.88 | ) | 2.35 | (1.07 | ) | 170 | |||||||||||||||||||||||||||
10.43 | 6,883 | 2.16 | (0.94 | ) | 2.24 | (1.02 | ) | 151 | ||||||||||||||||||||||||||||
18.13 | 8,689 | 2.14 | (0.58 | ) | 2.21 | (0.65 | ) | 110 | ||||||||||||||||||||||||||||
20.93 | % | $ | 2,332 | 2.16 | % | (1.03 | )% | 2.73 | % | (1.60 | )% | 154 | % | |||||||||||||||||||||||
8.54 | 2,526 | 2.16 | (0.24 | ) | 2.67 | (0.75 | ) | 186 | ||||||||||||||||||||||||||||
(34.66 | ) | 3,068 | 2.16 | (0.88 | ) | 2.35 | (1.07 | ) | 170 | |||||||||||||||||||||||||||
10.45 | 5,190 | 2.16 | (0.96 | ) | 2.24 | (1.04 | ) | 151 | ||||||||||||||||||||||||||||
18.21 | 4,986 | 2.14 | (0.64 | ) | 2.21 | (0.71 | ) | 110 | ||||||||||||||||||||||||||||
22.26 | % | $ | 23,076 | 1.16 | % | (0.03 | )% | 1.73 | % | (0.60 | )% | 154 | % | |||||||||||||||||||||||
9.62 | 27,030 | 1.16 | 0.81 | 1.67 | 0.30 | 186 | ||||||||||||||||||||||||||||||
(34.08 | ) | 40,409 | 1.16 | 0.12 | 1.35 | (0.07 | ) | 170 | ||||||||||||||||||||||||||||
11.62 | 79,574 | 1.16 | 0.02 | 1.24 | (0.06 | ) | 151 | |||||||||||||||||||||||||||||
19.30 | 67,437 | 1.14 | 0.35 | 1.21 | 0.28 | 110 | ||||||||||||||||||||||||||||||
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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 | from Net | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | Realized | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income (Loss) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Mid Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.28 | $ | 0.12 | $ | 4.00 | $ | 4.12 | $ | (0.20 | ) | $ | — | $ | (0.20 | ) | $ | 22.20 | |||||||||||||||||||||||
20092 | 16.13 | 0.24 | 1.99 | 2.23 | (0.08 | ) | — | (0.08 | ) | 18.28 | |||||||||||||||||||||||||||||||
20082 | 27.83 | 0.21 | (9.92 | ) | (9.71 | ) | (0.16 | ) | (1.83 | ) | (1.99 | ) | 16.13 | ||||||||||||||||||||||||||||
20072 | 26.65 | 0.14 | 2.78 | 2.92 | (0.16 | ) | (1.58 | ) | (1.74 | ) | 27.83 | ||||||||||||||||||||||||||||||
20062 | 24.04 | 0.14 | 3.89 | 4.03 | (0.16 | ) | (1.26 | ) | (1.42 | ) | 26.65 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 17.21 | $ | (0.04 | ) | $ | 3.78 | $ | 3.74 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 20.87 | ||||||||||||||||||||||
20092 | 15.22 | 0.13 | 1.87 | 2.00 | (0.01 | ) | — | (0.01 | ) | 17.21 | |||||||||||||||||||||||||||||||
20082 | 26.48 | 0.03 | (9.39 | ) | (9.36 | ) | (0.07 | ) | (1.83 | ) | (1.90 | ) | 15.22 | ||||||||||||||||||||||||||||
20072 | 25.50 | (0.05 | ) | 2.65 | 2.60 | (0.04 | ) | (1.58 | ) | (1.62 | ) | 26.48 | |||||||||||||||||||||||||||||
20062 | 23.12 | (0.03 | ) | 3.71 | 3.68 | (0.04 | ) | (1.26 | ) | (1.30 | ) | 25.50 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 17.61 | $ | (0.04 | ) | $ | 3.86 | $ | 3.82 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 21.36 | ||||||||||||||||||||||
20092 | 15.58 | 0.12 | 1.92 | 2.04 | (0.01 | ) | — | (0.01 | ) | 17.61 | |||||||||||||||||||||||||||||||
20082 | 27.05 | 0.03 | (9.60 | ) | (9.57 | ) | (0.07 | ) | (1.83 | ) | (1.90 | ) | 15.58 | ||||||||||||||||||||||||||||
20072 | 26.02 | (0.06 | ) | 2.72 | 2.66 | (0.05 | ) | (1.58 | ) | (1.63 | ) | 27.05 | |||||||||||||||||||||||||||||
20062 | 23.57 | (0.04 | ) | 3.80 | 3.76 | (0.05 | ) | (1.26 | ) | (1.31 | ) | 26.02 | |||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.15 | $ | 0.06 | $ | 3.99 | $ | 4.05 | $ | (0.15 | ) | $ | — | $ | (0.15 | ) | $ | 22.05 | |||||||||||||||||||||||
20092 | 16.04 | 0.19 | 1.98 | 2.17 | (0.06 | ) | — | (0.06 | ) | 18.15 | |||||||||||||||||||||||||||||||
20082 | 27.72 | 0.15 | (9.87 | ) | (9.72 | ) | (0.13 | ) | (1.83 | ) | (1.96 | ) | 16.04 | ||||||||||||||||||||||||||||
20072 | 26.56 | 0.06 | 2.78 | 2.84 | (0.10 | ) | (1.58 | ) | (1.68 | ) | 27.72 | ||||||||||||||||||||||||||||||
20062 | 24.00 | 0.05 | 3.91 | 3.96 | (0.14 | ) | (1.26 | ) | (1.40 | ) | 26.56 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.42 | $ | 0.16 | $ | 4.05 | $ | 4.21 | $ | (0.26 | ) | $ | — | $ | (0.26 | ) | $ | 22.37 | |||||||||||||||||||||||
20092 | 16.24 | 0.28 | 2.01 | 2.29 | (0.11 | ) | — | (0.11 | ) | 18.42 | |||||||||||||||||||||||||||||||
20082 | 27.98 | 0.27 | (9.99 | ) | (9.72 | ) | (0.19 | ) | (1.83 | ) | (2.02 | ) | 16.24 | ||||||||||||||||||||||||||||
20072 | 26.77 | 0.22 | 2.80 | 3.02 | (0.23 | ) | (1.58 | ) | (1.81 | ) | 27.98 | ||||||||||||||||||||||||||||||
20062 | 24.14 | 0.22 | 3.89 | 4.11 | (0.22 | ) | (1.26 | ) | (1.48 | ) | 26.77 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Total return does not include 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.
122 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
22.65 | % | $ | 76,667 | 1.25 | % | 0.58 | % | 1.25 | % | 0.58 | % | 123 | % | |||||||||||||||||||||||
13.95 | 130,222 | 1.25 | 1.52 | 1.25 | 1.52 | 106 | ||||||||||||||||||||||||||||||
(37.32 | ) | 124,275 | 1.23 | 0.90 | 1.23 | 0.90 | 93 | |||||||||||||||||||||||||||||
11.47 | 254,342 | 1.22 | 0.58 | 1.22 | 0.58 | 95 | ||||||||||||||||||||||||||||||
17.36 | 156,576 | 1.24 | 0.50 | 1.24 | 0.50 | 70 | ||||||||||||||||||||||||||||||
21.77 | % | $ | 2,815 | 2.00 | % | (0.20 | )% | 2.00 | % | (0.20 | )% | 123 | % | |||||||||||||||||||||||
13.13 | 3,481 | 1.98 | 0.85 | 1.98 | 0.85 | 106 | ||||||||||||||||||||||||||||||
(37.82 | ) | 4,133 | 1.98 | 0.14 | 1.98 | 0.14 | 93 | |||||||||||||||||||||||||||||
10.67 | 8,360 | 1.97 | (0.13 | ) | 1.97 | (0.13 | ) | 95 | ||||||||||||||||||||||||||||
16.45 | 8,590 | 1.99 | (0.17 | ) | 1.99 | (0.17 | ) | 70 | ||||||||||||||||||||||||||||
21.74 | % | $ | 11,564 | 2.00 | % | (0.21 | )% | 2.00 | % | (0.21 | )% | 123 | % | |||||||||||||||||||||||
13.10 | 12,040 | 2.00 | 0.80 | 2.00 | 0.80 | 106 | ||||||||||||||||||||||||||||||
(37.80 | ) | 13,154 | 1.98 | 0.14 | 1.98 | 0.14 | 93 | |||||||||||||||||||||||||||||
10.66 | 26,141 | 1.97 | (0.18 | ) | 1.97 | (0.18 | ) | 95 | ||||||||||||||||||||||||||||
16.47 | 18,162 | 1.99 | (0.24 | ) | 1.99 | (0.24 | ) | 70 | ||||||||||||||||||||||||||||
22.40 | % | $ | 20,195 | 1.50 | % | 0.30 | % | 1.50 | % | 0.30 | % | 123 | % | |||||||||||||||||||||||
13.63 | 25,664 | 1.50 | 1.21 | 1.50 | 1.21 | 106 | ||||||||||||||||||||||||||||||
(37.47 | ) | 23,423 | 1.49 | 0.64 | 1.49 | 0.64 | 93 | |||||||||||||||||||||||||||||
11.18 | 29,752 | 1.47 | 0.29 | 1.47 | 0.29 | 95 | ||||||||||||||||||||||||||||||
17.06 | 17,724 | 1.49 | 0.15 | 1.61 | 0.03 | 70 | ||||||||||||||||||||||||||||||
22.98 | % | $ | 470,266 | 1.00 | % | 0.78 | % | 1.00 | % | 0.78 | % | 123 | % | |||||||||||||||||||||||
14.24 | 440,968 | 1.00 | 1.76 | 1.00 | 1.76 | 106 | ||||||||||||||||||||||||||||||
(37.17 | ) | 415,486 | 0.99 | 1.14 | 0.99 | 1.14 | 93 | |||||||||||||||||||||||||||||
11.79 | 772,178 | 0.97 | 0.86 | 0.97 | 0.86 | 95 | ||||||||||||||||||||||||||||||
17.63 | 728,014 | 0.99 | 0.81 | 0.99 | 0.81 | 70 | ||||||||||||||||||||||||||||||
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
Net Asset | Distributions | Net Asset | |||||||||||||||||||||||||||||||||||||||
Value | Net | Realized and | Total from | from Net | Distributions | Value | |||||||||||||||||||||||||||||||||||
Beginning | Investment | Unrealized | Investment | Investment | from Net Realized | Total | End of | ||||||||||||||||||||||||||||||||||
of Period | Income | Gains (Losses) on Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Quantitative Large Cap Core Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.01 | $ | 0.25 | $ | 2.48 | $ | 2.73 | $ | (0.24 | ) | $ | — | $ | (0.24 | ) | $ | 20.50 | |||||||||||||||||||||||
20092 | 16.56 | 0.31 | 1.29 | 1.60 | (0.15 | ) | — | (0.15 | ) | 18.01 | |||||||||||||||||||||||||||||||
20082 | 26.90 | 0.40 | (10.21 | ) | $ | (9.81 | ) | (0.29 | ) | (0.24 | ) | (0.53 | ) | 16.56 | |||||||||||||||||||||||||||
20073 | 25.00 | 0.06 | 1.91 | 1.97 | (0.07 | ) | — | (0.07 | ) | 26.90 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 17.91 | $ | 0.08 | $ | 2.51 | $ | 2.59 | $ | — | $ | — | $ | — | $ | 20.50 | |||||||||||||||||||||||||
20092 | 16.51 | 0.24 | 1.24 | 1.48 | (0.08 | ) | — | (0.08 | ) | 17.91 | |||||||||||||||||||||||||||||||
20082 | 26.88 | 0.23 | (10.20 | ) | $ | (9.97 | ) | (0.16 | ) | (0.24 | ) | (0.40 | ) | 16.51 | |||||||||||||||||||||||||||
20073 | 25.00 | 0.02 | 1.90 | 1.92 | (0.04 | ) | — | (0.04 | ) | 26.88 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.04 | $ | 0.29 | $ | 2.51 | $ | 2.80 | $ | (0.27 | ) | $ | — | $ | (0.27 | ) | $ | 20.57 | |||||||||||||||||||||||
20092 | 16.57 | 0.35 | 1.29 | 1.64 | (0.17 | ) | — | (0.17 | ) | 18.04 | |||||||||||||||||||||||||||||||
20082 | 26.90 | 0.44 | (10.20 | ) | $ | (9.76 | ) | (0.33 | ) | (0.24 | ) | (0.57 | ) | 16.57 | |||||||||||||||||||||||||||
20073 | 25.00 | 0.11 | 1.87 | 1.98 | (0.08 | ) | — | (0.08 | ) | 26.90 | |||||||||||||||||||||||||||||||
1 | Per share data calculated using average share method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Commenced operations on July 31, 2007. All ratios for the period July 31, 2007 to October 31, 2007 have been annualized, except total return and portfolio turnover. | |
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.
124 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||
Return4 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||
15.24 | % | $ | 253 | 0.70 | % | 1.28 | % | 0.93 | % | 1.05 | % | 142 | % | |||||||||||||||||||||||
9.87 | 243 | 0.69 | 1.94 | 1.01 | 1.62 | 75 | ||||||||||||||||||||||||||||||
(37.08 | ) | 118 | 0.70 | 1.77 | 1.18 | 1.29 | 153 | |||||||||||||||||||||||||||||
7.89 | 131 | 0.70 | 0.91 | 1.40 | 0.21 | 55 | ||||||||||||||||||||||||||||||
14.46 | % | $ | 14 | 1.45 | % | 0.43 | % | 1.68 | % | 0.20 | % | 142 | % | |||||||||||||||||||||||
9.05 | 4 | 1.44 | 1.57 | 1.76 | 1.25 | 75 | ||||||||||||||||||||||||||||||
(37.58 | ) | 10 | 1.45 | 0.99 | 1.93 | 0.51 | 153 | |||||||||||||||||||||||||||||
7.69 | 15 | 1.45 | 0.23 | 2.15 | (0.47 | ) | 55 | |||||||||||||||||||||||||||||
15.61 | % | $ | 203,316 | 0.45 | % | 1.50 | % | 0.68 | % | 1.27 | % | 142 | % | |||||||||||||||||||||||
10.13 | 146,180 | 0.44 | 2.19 | 0.76 | 1.87 | 75 | ||||||||||||||||||||||||||||||
(36.93 | ) | 89,270 | 0.45 | 1.99 | 0.93 | 1.51 | 153 | |||||||||||||||||||||||||||||
7.93 | 48,745 | 0.45 | 1.73 | 1.15 | 1.03 | 55 | ||||||||||||||||||||||||||||||
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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 | Distributions | Value | |||||||||||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Investment | from Net | from | Total | End of | ||||||||||||||||||||||||||||||||||||||
of Period | Income | Investments | Operations | Income | Realized Gains | Return of Capital | Distributions | Period | ||||||||||||||||||||||||||||||||||||||
Real Estate Securities Fund1 | ||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.44 | $ | 0.32 | $ | 5.20 | $ | 5.52 | $ | (0.38 | ) | $ | — | $ | — | $ | (0.38 | ) | $ | 17.58 | ||||||||||||||||||||||||||
20092 | 12.67 | 0.41 | (0.16 | ) | 0.25 | (0.34 | ) | — | (0.14 | ) | (0.48 | ) | 12.44 | |||||||||||||||||||||||||||||||||
20082 | 23.99 | 0.60 | (8.78 | ) | (8.18 | ) | (0.40 | ) | (2.74 | ) | — | (3.14 | ) | 12.67 | ||||||||||||||||||||||||||||||||
20072 | 26.49 | 0.47 | (0.24 | ) | 0.23 | (0.36 | ) | (2.37 | ) | — | (2.73 | ) | 23.99 | |||||||||||||||||||||||||||||||||
20062 | 21.42 | 0.47 | 7.77 | 8.24 | (0.58 | ) | (2.59 | ) | — | (3.17 | ) | 26.49 | ||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.17 | $ | 0.21 | $ | 5.07 | $ | 5.28 | $ | (0.27 | ) | $ | — | $ | — | $ | (0.27 | ) | $ | 17.18 | ||||||||||||||||||||||||||
20092 | 12.39 | 0.36 | (0.19 | ) | 0.17 | (0.25 | ) | — | (0.14 | ) | (0.39 | ) | 12.17 | |||||||||||||||||||||||||||||||||
20082 | 23.53 | 0.46 | (8.60 | ) | (8.14 | ) | (0.26 | ) | (2.74 | ) | — | (3.00 | ) | 12.39 | ||||||||||||||||||||||||||||||||
20072 | 26.08 | 0.27 | (0.22 | ) | 0.05 | (0.23 | ) | (2.37 | ) | — | (2.60 | ) | 23.53 | |||||||||||||||||||||||||||||||||
20062 | 21.14 | 0.29 | 7.66 | 7.95 | (0.42 | ) | (2.59 | ) | — | (3.01 | ) | 26.08 | ||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.21 | $ | 0.19 | $ | 5.12 | $ | 5.31 | $ | (0.29 | ) | $ | — | $ | — | $ | (0.29 | ) | $ | 17.23 | ||||||||||||||||||||||||||
20092 | 12.44 | 0.34 | (0.17 | ) | 0.17 | (0.26 | ) | — | (0.14 | ) | (0.40 | ) | 12.21 | |||||||||||||||||||||||||||||||||
20082 | 23.62 | 0.45 | (8.63 | ) | (8.18 | ) | (0.26 | ) | (2.74 | ) | — | (3.00 | ) | 12.44 | ||||||||||||||||||||||||||||||||
20072 | 26.17 | 0.26 | (0.21 | ) | 0.05 | (0.23 | ) | (2.37 | ) | — | (2.60 | ) | 23.62 | |||||||||||||||||||||||||||||||||
20062 | 21.21 | 0.28 | 7.70 | 7.98 | (0.43 | ) | (2.59 | ) | — | (3.02 | ) | 26.17 | ||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.57 | $ | 0.31 | $ | 5.24 | $ | 5.55 | $ | (0.33 | ) | $ | — | $ | — | $ | (0.33 | ) | $ | 17.79 | ||||||||||||||||||||||||||
20092 | 12.79 | 0.39 | (0.16 | ) | 0.23 | (0.31 | ) | — | (0.14 | ) | (0.45 | ) | 12.57 | |||||||||||||||||||||||||||||||||
20082 | 24.20 | 0.54 | (8.85 | ) | (8.31 | ) | (0.36 | ) | (2.74 | ) | — | (3.10 | ) | 12.79 | ||||||||||||||||||||||||||||||||
20072 | 26.72 | 0.38 | (0.21 | ) | 0.17 | (0.32 | ) | (2.37 | ) | — | (2.69 | ) | 24.20 | |||||||||||||||||||||||||||||||||
20062 | 21.61 | 0.35 | 7.90 | 8.25 | (0.55 | ) | (2.59 | ) | — | (3.14 | ) | 26.72 | ||||||||||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||||||||||||||||
20102 | $ | 12.57 | $ | 0.36 | $ | 5.26 | $ | 5.62 | $ | (0.42 | ) | $ | — | $ | — | $ | (0.42 | ) | $ | 17.77 | ||||||||||||||||||||||||||
20092 | 12.79 | 0.47 | (0.19 | ) | 0.28 | (0.36 | ) | — | (0.14 | ) | (0.50 | ) | 12.57 | |||||||||||||||||||||||||||||||||
20082 | 24.18 | 0.64 | (8.84 | ) | (8.20 | ) | (0.45 | ) | (2.74 | ) | — | (3.19 | ) | 12.79 | ||||||||||||||||||||||||||||||||
20072 | 26.67 | 0.53 | (0.24 | ) | 0.29 | (0.41 | ) | (2.37 | ) | — | (2.78 | ) | 24.18 | |||||||||||||||||||||||||||||||||
20062 | 21.54 | 0.53 | 7.82 | 8.35 | (0.63 | ) | (2.59 | ) | — | (3.22 | ) | 26.67 | ||||||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
126 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
44.82 | % | $ | 686,148 | 1.24 | % | 2.04 | % | 1.24 | % | 2.04 | % | 133 | % | |||||||||||||||||||||||
2.82 | 287,493 | 1.27 | 3.81 | 1.27 | 3.81 | 117 | ||||||||||||||||||||||||||||||
(37.71 | ) | 133,162 | 1.23 | 3.31 | 1.23 | 3.31 | 150 | |||||||||||||||||||||||||||||
0.78 | 203,101 | 1.22 | 1.87 | 1.22 | 1.87 | 210 | ||||||||||||||||||||||||||||||
43.25 | 228,186 | 1.23 | 2.06 | 1.23 | 2.06 | 161 | ||||||||||||||||||||||||||||||
43.66 | % | $ | 3,005 | 1.99 | % | 1.42 | % | 1.99 | % | �� | 1.42 | % | 133 | % | ||||||||||||||||||||||
2.13 | 2,693 | 2.02 | 3.57 | 2.02 | 3.57 | 117 | ||||||||||||||||||||||||||||||
(38.18 | ) | 3,276 | 1.98 | 2.57 | 1.98 | 2.57 | 150 | |||||||||||||||||||||||||||||
— | 7,391 | 1.97 | 1.12 | 1.97 | 1.12 | 210 | ||||||||||||||||||||||||||||||
42.17 | 7,288 | 1.98 | 1.30 | 1.98 | 1.30 | 161 | ||||||||||||||||||||||||||||||
43.76 | % | $ | 52,732 | 1.99 | % | 1.26 | % | 1.99 | % | 1.26 | % | 133 | % | |||||||||||||||||||||||
2.09 | 17,632 | 2.02 | 3.26 | 2.02 | 3.26 | 117 | ||||||||||||||||||||||||||||||
(38.19 | ) | 11,458 | 1.98 | 2.56 | 1.98 | 2.56 | 150 | |||||||||||||||||||||||||||||
0.03 | 18,403 | 1.97 | 1.06 | 1.97 | 1.06 | 210 | ||||||||||||||||||||||||||||||
42.16 | 12,281 | 1.98 | 1.25 | 1.98 | 1.25 | 161 | ||||||||||||||||||||||||||||||
44.54 | % | $ | 47,970 | 1.48 | % | 1.99 | % | 1.48 | % | 1.99 | % | 133 | % | |||||||||||||||||||||||
2.62 | 46,382 | 1.52 | 3.61 | 1.52 | 3.61 | 117 | ||||||||||||||||||||||||||||||
(37.90 | ) | 22,813 | 1.48 | 3.01 | 1.48 | 3.01 | 150 | |||||||||||||||||||||||||||||
0.52 | 18,493 | 1.47 | 1.52 | 1.47 | 1.52 | 210 | ||||||||||||||||||||||||||||||
42.87 | 9,423 | 1.48 | 1.50 | 1.60 | 1.38 | 161 | ||||||||||||||||||||||||||||||
45.16 | % | $ | 1,630,989 | 0.99 | % | 2.29 | % | 0.99 | % | 2.29 | % | 133 | % | |||||||||||||||||||||||
3.11 | 660,342 | 1.02 | 4.39 | 1.02 | 4.39 | 117 | ||||||||||||||||||||||||||||||
(37.56 | ) | 526,386 | 0.98 | 3.51 | 0.98 | 3.51 | 150 | |||||||||||||||||||||||||||||
1.01 | 652,579 | 0.97 | 2.12 | 0.97 | 2.12 | 210 | ||||||||||||||||||||||||||||||
43.58 | 756,868 | 0.98 | 2.31 | 0.98 | 2.31 | 161 | ||||||||||||||||||||||||||||||
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||
Net Asset | Unrealized | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | Total from | Distributions | Value | ||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||
of Period | Loss | Investments | Operations | Realized Gains | Period | ||||||||||||||||||||||||||
Small Cap Growth Opportunities Fund1 | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
20102 | $ | 14.55 | $ | (0.18 | ) | $ | 4.67 | $ | 4.49 | $ | — | $ | 19.04 | ||||||||||||||||||
20092 | 11.96 | (0.11 | ) | 2.70 | 2.59 | — | 14.55 | ||||||||||||||||||||||||
20082 | 21.65 | (0.14 | ) | (7.97 | ) | (8.11 | ) | (1.58 | ) | 11.96 | |||||||||||||||||||||
20072 | 20.49 | (0.19 | ) | 2.67 | 2.48 | (1.32 | ) | 21.65 | |||||||||||||||||||||||
20062 | 22.79 | (0.18 | ) | 2.37 | 2.19 | (4.49 | ) | 20.49 | |||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||
20102 | $ | 12.82 | $ | (0.27 | ) | $ | 4.11 | $ | 3.84 | $ | — | $ | 16.66 | ||||||||||||||||||
20092 | 10.62 | (0.18 | ) | 2.38 | 2.20 | — | 12.82 | ||||||||||||||||||||||||
20082 | 19.56 | (0.23 | ) | (7.13 | ) | (7.36 | ) | (1.58 | ) | 10.62 | |||||||||||||||||||||
20072 | 18.76 | (0.31 | ) | 2.43 | 2.12 | (1.32 | ) | 19.56 | |||||||||||||||||||||||
20062 | 21.36 | (0.31 | ) | 2.20 | 1.89 | (4.49 | ) | 18.76 | |||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
20102 | $ | 13.44 | $ | (0.28 | ) | $ | 4.30 | $ | 4.02 | $ | — | $ | 17.46 | ||||||||||||||||||
20092 | 11.13 | (0.19 | ) | 2.50 | 2.31 | — | 13.44 | ||||||||||||||||||||||||
20082 | 20.41 | (0.24 | ) | (7.46 | ) | (7.70 | ) | (1.58 | ) | 11.13 | |||||||||||||||||||||
20072 | 19.53 | (0.33 | ) | 2.53 | 2.20 | (1.32 | ) | 20.41 | |||||||||||||||||||||||
20062 | 22.05 | (0.32 | ) | 2.29 | 1.97 | (4.49 | ) | 19.53 | |||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
20102 | $ | 14.36 | $ | (0.22 | ) | $ | 4.60 | $ | 4.38 | $ | — | $ | 18.74 | ||||||||||||||||||
20092 | 11.83 | (0.16 | ) | 2.69 | 2.53 | — | 14.36 | ||||||||||||||||||||||||
20082 | 21.49 | (0.17 | ) | (7.91 | ) | (8.08 | ) | (1.58 | ) | 11.83 | |||||||||||||||||||||
20072 | 20.39 | (0.24 | ) | 2.66 | 2.42 | (1.32 | ) | 21.49 | |||||||||||||||||||||||
20062 | 22.75 | (0.23 | ) | 2.36 | 2.13 | (4.49 | ) | 20.39 | |||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||
20102 | $ | 15.63 | $ | (0.15 | ) | $ | 5.03 | $ | 4.88 | $ | — | $ | 20.51 | ||||||||||||||||||
20092 | 12.81 | (0.09 | ) | 2.91 | 2.82 | — | 15.63 | ||||||||||||||||||||||||
20082 | 23.03 | (0.10 | ) | (8.54 | ) | (8.64 | ) | (1.58 | ) | 12.81 | |||||||||||||||||||||
20072 | 21.66 | (0.15 | ) | 2.84 | 2.69 | (1.32 | ) | 23.03 | |||||||||||||||||||||||
20062 | 23.81 | (0.13 | ) | 2.47 | 2.34 | (4.49 | ) | 21.66 | |||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. | |
4 | During the period indicated, the fund received a regulatory settlement, which had a positive impact on total return of 0.75% for Class A, Class C, and Class Y, 0.79% for Class B, and 0.76% for Class R. | |
5 | During the period indicated, the fund received a regulatory settlement, which had a positive impact on total return of 0.05% for Class A, Class R, and Class Y and 0.06% for Class B and Class C. |
The accompanying notes are an integral part of the financial statements.
128 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Loss | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Loss | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
30.86 | % | $ | 39,501 | 1.47 | % | (1.05 | )% | 1.68 | % | (1.26 | )% | 142 | % | |||||||||||||||||||||||
21.66 | 30,202 | 1.47 | (0.89 | ) | 1.79 | (1.21 | ) | 169 | ||||||||||||||||||||||||||||
(40.07 | )4 | 29,022 | 1.46 | (0.82 | ) | 1.63 | (0.99 | ) | 138 | |||||||||||||||||||||||||||
12.815 | 149,231 | 1.47 | (0.89 | ) | 1.59 | (1.01 | ) | 118 | ||||||||||||||||||||||||||||
9.91 | 138,786 | 1.47 | (0.88 | ) | 1.58 | (0.99 | ) | 209 | ||||||||||||||||||||||||||||
29.95 | % | $ | 2,088 | 2.22 | % | (1.79 | )% | 2.43 | % | (2.00 | )% | 142 | % | |||||||||||||||||||||||
20.72 | 2,025 | 2.22 | (1.64 | ) | 2.54 | (1.96 | ) | 169 | ||||||||||||||||||||||||||||
(40.55 | )4 | 1,978 | 2.21 | (1.57 | ) | 2.38 | (1.74 | ) | 138 | |||||||||||||||||||||||||||
12.035 | 4,467 | 2.22 | (1.65 | ) | 2.34 | (1.77 | ) | 118 | ||||||||||||||||||||||||||||
9.03 | 6,540 | 2.22 | (1.62 | ) | 2.33 | (1.73 | ) | 209 | ||||||||||||||||||||||||||||
29.91 | % | $ | 1,596 | 2.22 | % | (1.80 | )% | 2.43 | % | (2.01 | )% | 142 | % | |||||||||||||||||||||||
20.75 | 1,341 | 2.22 | (1.66 | ) | 2.54 | (1.98 | ) | 169 | ||||||||||||||||||||||||||||
(40.53 | )4 | 1,104 | 2.21 | (1.56 | ) | 2.38 | (1.73 | ) | 138 | |||||||||||||||||||||||||||
11.965 | 2,295 | 2.22 | (1.64 | ) | 2.34 | (1.76 | ) | 118 | ||||||||||||||||||||||||||||
9.11 | 2,664 | 2.22 | (1.63 | ) | 2.33 | (1.74 | ) | 209 | ||||||||||||||||||||||||||||
30.50 | % | $ | 2,185 | 1.72 | % | (1.31 | )% | 1.93 | % | (1.52 | )% | 142 | % | |||||||||||||||||||||||
21.39 | 1,469 | 1.72 | (1.24 | ) | 2.04 | (1.56 | ) | 169 | ||||||||||||||||||||||||||||
(40.24 | )4 | 433 | 1.72 | (1.04 | ) | 1.89 | (1.21 | ) | 138 | |||||||||||||||||||||||||||
12.565 | 522 | 1.72 | (1.17 | ) | 1.84 | (1.29 | ) | 118 | ||||||||||||||||||||||||||||
9.62 | 1,323 | 1.72 | (1.16 | ) | 1.95 | (1.39 | ) | 209 | ||||||||||||||||||||||||||||
31.22 | % | $ | 141,215 | 1.22 | % | (0.80 | )% | 1.43 | % | (1.01 | )% | 142 | % | |||||||||||||||||||||||
22.01 | 103,423 | 1.22 | (0.67 | ) | 1.54 | (0.99 | ) | 169 | ||||||||||||||||||||||||||||
(39.97 | )4 | 75,355 | 1.22 | (0.56 | ) | 1.39 | (0.73 | ) | 138 | |||||||||||||||||||||||||||
13.105 | 154,456 | 1.22 | (0.64 | ) | 1.34 | (0.76 | ) | 118 | ||||||||||||||||||||||||||||
10.16 | 182,429 | 1.22 | (0.63 | ) | 1.33 | (0.74 | ) | 209 | ||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 129
Table of Contents
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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Small Cap Select Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.53 | $ | (0.05 | ) | $ | 2.24 | $ | 2.19 | $ | — | $ | — | $ | — | $ | 11.72 | ||||||||||||||||||||||||
20092 | 8.27 | (0.01 | ) | 1.27 | 1.26 | — | — | — | 9.53 | ||||||||||||||||||||||||||||||||
20082 | 14.06 | (0.02 | ) | (4.92 | ) | (4.94 | ) | — | (0.85 | ) | (0.85 | ) | 8.27 | ||||||||||||||||||||||||||||
20072 | 15.12 | (0.02 | ) | 1.04 | 1.02 | — | (2.08 | ) | (2.08 | ) | 14.06 | ||||||||||||||||||||||||||||||
20062 | 15.33 | (0.05 | ) | 3.05 | 3.00 | — | (3.21 | ) | (3.21 | ) | 15.12 | ||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.60 | $ | (0.10 | ) | $ | 1.77 | $ | 1.67 | $ | — | $ | — | $ | — | $ | 9.27 | ||||||||||||||||||||||||
20092 | 6.64 | (0.05 | ) | 1.01 | 0.96 | — | — | — | 7.60 | ||||||||||||||||||||||||||||||||
20082 | 11.56 | (0.08 | ) | (3.99 | ) | (4.07 | ) | — | (0.85 | ) | (0.85 | ) | 6.64 | ||||||||||||||||||||||||||||
20072 | 12.88 | (0.11 | ) | 0.87 | 0.76 | — | (2.08 | ) | (2.08 | ) | 11.56 | ||||||||||||||||||||||||||||||
20062 | 13.58 | (0.13 | ) | 2.64 | 2.51 | — | (3.21 | ) | (3.21 | ) | 12.88 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.73 | $ | (0.12 | ) | $ | 2.04 | $ | 1.92 | $ | — | $ | — | $ | — | $ | 10.65 | ||||||||||||||||||||||||
20092 | 7.63 | (0.06 | ) | 1.16 | 1.10 | — | — | — | 8.73 | ||||||||||||||||||||||||||||||||
20082 | 13.13 | (0.09 | ) | (4.56 | ) | (4.65 | ) | — | (0.85 | ) | (0.85 | ) | 7.63 | ||||||||||||||||||||||||||||
20072 | 14.36 | (0.12 | ) | 0.97 | 0.85 | — | (2.08 | ) | (2.08 | ) | 13.13 | ||||||||||||||||||||||||||||||
20062 | 14.79 | (0.16 | ) | 2.94 | 2.78 | — | (3.21 | ) | (3.21 | ) | 14.36 | ||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.34 | $ | (0.08 | ) | $ | 2.20 | $ | 2.12 | $ | — | $ | — | $ | — | $ | 11.46 | ||||||||||||||||||||||||
20092 | 8.12 | (0.03 | ) | 1.25 | 1.22 | — | — | — | 9.34 | ||||||||||||||||||||||||||||||||
20082 | 13.86 | (0.04 | ) | (4.85 | ) | (4.89 | ) | — | (0.85 | ) | (0.85 | ) | 8.12 | ||||||||||||||||||||||||||||
20072 | 14.98 | (0.05 | ) | 1.01 | 0.96 | — | (2.08 | ) | (2.08 | ) | 13.86 | ||||||||||||||||||||||||||||||
20062 | 15.24 | (0.09 | ) | 3.04 | 2.95 | — | (3.21 | ) | (3.21 | ) | 14.98 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 10.33 | $ | (0.03 | ) | $ | 2.44 | $ | 2.41 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 12.73 | ||||||||||||||||||||||
20092 | 8.94 | 0.02 | 1.37 | 1.39 | — | — | — | 10.33 | |||||||||||||||||||||||||||||||||
20082 | 15.10 | 0.01 | (5.31 | ) | (5.30 | ) | (0.01 | ) | (0.85 | ) | (0.86 | ) | 8.94 | ||||||||||||||||||||||||||||
20072 | 16.06 | 0.01 | 1.11 | 1.12 | — | (2.08 | ) | (2.08 | ) | 15.10 | |||||||||||||||||||||||||||||||
20062 | 16.06 | (0.01 | ) | 3.22 | 3.21 | — | (3.21 | ) | (3.21 | ) | 16.06 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the year indicated. | |
3 | 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.
130 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
22.98 | % | $ | 339,826 | 1.24 | % | (0.48 | )% | 1.25 | % | (0.49 | )% | 88 | % | |||||||||||||||||||||||
15.24 | 295,348 | 1.26 | (0.09 | ) | 1.26 | (0.09 | ) | 99 | ||||||||||||||||||||||||||||
(37.00 | ) | 166,698 | 1.26 | (0.15 | ) | 1.26 | (0.15 | ) | 92 | |||||||||||||||||||||||||||
7.35 | 238,129 | 1.23 | (0.22 | ) | 1.23 | (0.22 | ) | 97 | ||||||||||||||||||||||||||||
22.46 | 222,293 | 1.24 | (0.38 | ) | 1.24 | (0.38 | ) | 111 | ||||||||||||||||||||||||||||
21.97 | % | $ | 3,925 | 1.99 | % | (1.22 | )% | 2.00 | % | (1.23 | )% | 88 | % | |||||||||||||||||||||||
14.46 | 5,511 | 2.01 | (0.80 | ) | 2.01 | (0.80 | ) | 99 | ||||||||||||||||||||||||||||
(37.52 | ) | 6,249 | 2.01 | (0.90 | ) | 2.01 | (0.90 | ) | 92 | |||||||||||||||||||||||||||
6.51 | 13,720 | 1.98 | (0.97 | ) | 1.98 | (0.97 | ) | 97 | ||||||||||||||||||||||||||||
21.59 | 15,077 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | ||||||||||||||||||||||||||||
21.99 | % | $ | 17,393 | 1.99 | % | (1.23 | )% | 2.00 | % | (1.24 | )% | 88 | % | |||||||||||||||||||||||
14.42 | 16,938 | 2.01 | (0.80 | ) | 2.01 | (0.80 | ) | 99 | ||||||||||||||||||||||||||||
(37.44 | ) | 17,062 | 2.01 | (0.90 | ) | 2.01 | (0.90 | ) | 92 | |||||||||||||||||||||||||||
6.46 | 34,505 | 1.98 | (0.95 | ) | 1.98 | (0.95 | ) | 97 | ||||||||||||||||||||||||||||
21.64 | 18,794 | 1.99 | (1.14 | ) | 1.99 | (1.14 | ) | 111 | ||||||||||||||||||||||||||||
22.70 | % | $ | 18,047 | 1.49 | % | (0.71 | )% | 1.50 | % | (0.72 | )% | 88 | % | |||||||||||||||||||||||
15.02 | 24,701 | 1.51 | (0.31 | ) | 1.51 | (0.31 | ) | 99 | ||||||||||||||||||||||||||||
(37.19 | ) | 23,069 | 1.51 | (0.40 | ) | 1.51 | (0.40 | ) | 92 | |||||||||||||||||||||||||||
6.99 | 38,181 | 1.48 | (0.43 | ) | 1.48 | (0.43 | ) | 97 | ||||||||||||||||||||||||||||
22.23 | 2,697 | 1.49 | (0.59 | ) | 1.62 | (0.72 | ) | 111 | ||||||||||||||||||||||||||||
23.30 | % | $ | 400,042 | 0.99 | % | (0.23 | )% | 1.00 | % | (0.24 | )% | 88 | % | |||||||||||||||||||||||
15.55 | 322,658 | 1.01 | 0.19 | 1.01 | 0.19 | 99 | ||||||||||||||||||||||||||||||
(36.86 | ) | 289,685 | 1.01 | 0.10 | 1.01 | 0.10 | 92 | |||||||||||||||||||||||||||||
7.58 | 691,488 | 0.98 | 0.03 | 0.98 | 0.03 | 97 | ||||||||||||||||||||||||||||||
22.81 | 732,252 | 0.99 | (0.15 | ) | 0.99 | (0.15 | ) | 111 | ||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 131
Table of Contents
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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Small Cap Value Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.22 | $ | (0.01 | ) | $ | 2.07 | $ | 2.06 | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | 10.26 | ||||||||||||||||||||||
20092 | 8.12 | 0.03 | 0.15 | 0.18 | (0.08 | ) | — | (0.08 | ) | 8.22 | |||||||||||||||||||||||||||||||
20082 | 13.52 | 0.08 | (3.97 | ) | (3.89 | ) | (0.14 | ) | (1.37 | ) | (1.51 | ) | 8.12 | ||||||||||||||||||||||||||||
20072 | 15.38 | 0.12 | 0.48 | 0.60 | (0.02 | ) | (2.44 | ) | (2.46 | ) | 13.52 | ||||||||||||||||||||||||||||||
20062 | 16.34 | 0.03 | 2.86 | 2.89 | (0.04 | ) | (3.81 | ) | (3.85 | ) | 15.38 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.31 | $ | (0.07 | ) | $ | 1.84 | $ | 1.77 | $ | — | $ | — | $ | — | $ | 9.08 | ||||||||||||||||||||||||
20092 | 7.22 | (0.02 | ) | 0.13 | 0.11 | (0.02 | ) | — | (0.02 | ) | 7.31 | ||||||||||||||||||||||||||||||
20082 | 12.19 | — | (3.54 | ) | (3.54 | ) | (0.06 | ) | (1.37 | ) | (1.43 | ) | 7.22 | ||||||||||||||||||||||||||||
20072 | 14.17 | 0.02 | 0.44 | 0.46 | — | (2.44 | ) | (2.44 | ) | 12.19 | |||||||||||||||||||||||||||||||
20062 | 15.39 | (0.07 | ) | 2.66 | 2.59 | — | (3.81 | ) | (3.81 | ) | 14.17 | ||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.10 | $ | (0.03 | ) | $ | 2.04 | $ | 2.01 | $ | — | $ | — | $ | — | $ | 10.11 | ||||||||||||||||||||||||
20092 | 8.00 | 0.01 | 0.15 | 0.16 | (0.06 | ) | — | (0.06 | ) | 8.10 | |||||||||||||||||||||||||||||||
20082 | 13.35 | 0.05 | (3.91 | ) | (3.86 | ) | (0.12 | ) | (1.37 | ) | (1.49 | ) | 8.00 | ||||||||||||||||||||||||||||
20072 | 15.24 | 0.10 | 0.47 | 0.57 | (0.02 | ) | (2.44 | ) | (2.46 | ) | 13.35 | ||||||||||||||||||||||||||||||
20062 | 16.29 | (0.01 | ) | 2.84 | 2.83 | (0.07 | ) | (3.81 | ) | (3.88 | ) | 15.24 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 8.45 | $ | 0.01 | $ | 2.13 | $ | 2.14 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 10.55 | |||||||||||||||||||||||
20092 | 8.36 | 0.05 | 0.15 | 0.20 | (0.11 | ) | — | (0.11 | ) | 8.45 | |||||||||||||||||||||||||||||||
20082 | 13.87 | 0.11 | (4.08 | ) | (3.97 | ) | (0.17 | ) | (1.37 | ) | (1.54 | ) | 8.36 | ||||||||||||||||||||||||||||
20072 | 15.71 | 0.16 | 0.49 | 0.65 | (0.05 | ) | (2.44 | ) | (2.49 | ) | 13.87 | ||||||||||||||||||||||||||||||
20062 | 16.62 | 0.07 | 2.90 | 2.97 | (0.07 | ) | (3.81 | ) | (3.88 | ) | 15.71 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income (Loss) | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income (Loss) | Net Assets | Net Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
25.15 | % | $ | 32,332 | 1.34 | % | (0.11 | )% | 1.34 | % | (0.11 | )% | 58 | % | |||||||||||||||||||||||
2.40 | 29,026 | 1.37 | 0.46 | 1.37 | 0.46 | 73 | ||||||||||||||||||||||||||||||
(31.75 | ) | 28,344 | 1.31 | 0.75 | 1.31 | 0.75 | 49 | |||||||||||||||||||||||||||||
4.18 | 53,498 | 1.26 | 0.90 | 1.26 | 0.90 | 63 | ||||||||||||||||||||||||||||||
20.78 | 57,922 | 1.26 | 0.21 | 1.26 | 0.21 | 96 | ||||||||||||||||||||||||||||||
24.21 | % | $ | 1,843 | 2.09 | % | (0.86 | )% | 2.09 | % | (0.86 | )% | 58 | % | |||||||||||||||||||||||
1.56 | 2,080 | 2.12 | (0.27 | ) | 2.12 | (0.27 | ) | 73 | ||||||||||||||||||||||||||||
(32.23 | ) | 2,373 | 2.06 | — | 2.06 | — | 49 | |||||||||||||||||||||||||||||
3.42 | 4,006 | 2.01 | 0.14 | 2.01 | 0.14 | 63 | ||||||||||||||||||||||||||||||
19.89 | 4,405 | 2.01 | (0.53 | ) | 2.01 | (0.53 | ) | 96 | ||||||||||||||||||||||||||||
24.85 | % | $ | 2,111 | 1.59 | % | (0.35 | )% | �� | 1.59 | % | (0.35 | )% | 58 | % | ||||||||||||||||||||||
2.14 | 2,327 | 1.62 | 0.19 | 1.62 | 0.19 | 73 | ||||||||||||||||||||||||||||||
(31.90 | ) | 2,159 | 1.56 | 0.50 | 1.56 | 0.50 | 49 | |||||||||||||||||||||||||||||
3.96 | 3,263 | 1.51 | 0.72 | 1.51 | 0.72 | 63 | ||||||||||||||||||||||||||||||
20.44 | 1,849 | 1.51 | (0.09 | ) | 1.63 | (0.21 | ) | 96 | ||||||||||||||||||||||||||||
25.43 | % | $ | 180,875 | 1.09 | % | 0.14 | % | 1.09 | % | 0.14 | % | 58 | % | |||||||||||||||||||||||
2.59 | 149,515 | 1.12 | 0.72 | 1.12 | 0.72 | 73 | ||||||||||||||||||||||||||||||
(31.56 | ) | 158,112 | 1.06 | 1.00 | 1.06 | 1.00 | 49 | |||||||||||||||||||||||||||||
4.45 | 302,683 | 1.01 | 1.15 | 1.01 | 1.15 | 63 | ||||||||||||||||||||||||||||||
21.01 | 355,148 | 1.01 | 0.47 | 1.01 | 0.47 | 96 | ||||||||||||||||||||||||||||||
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FINANCIAL HIGHLIGHTS For a share outstanding throughout the indicated periods.
Net Asset | Realized and | Net Asset | ||||||||||||||||||||||||
Value | Net | Unrealized | Total from | Value | ||||||||||||||||||||||
Beginning | Investment | Gains on | Investment | End of | ||||||||||||||||||||||
of Period | Income | Investments | Operations | Period | ||||||||||||||||||||||
Tactical Market Opportunities Fund | ||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||
20101 | $ | 10.00 | $ | 0.02 | $ | 0.60 | $ | 0.62 | $ | 10.62 | ||||||||||||||||
1 | Commenced operations on December 30, 2009. All ratios for the period ended October 31, 2010 have been annualized, except total return and portfolio turnover. | |
2 | Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Loss | ||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
Return2 | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
6.20 | % | $ | 27,300 | 0.92 | % | 1.39 | % | 4.14 | % | (1.83 | )% | 156 | % | |||||||||||||||||||||||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Equity Income Fund, Global Infrastructure Fund, International Fund, International Select Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Mid Cap Growth Opportunities Fund, Mid Cap Select Fund (formerly Small-Mid Cap Core Fund), Mid Cap Value Fund, Quantitative Large Cap Core Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, and Tactical Market Opportunities 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 October 31, 2010, FAIF offered 37 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund other than Real Estate Securities Fund is a diversified open-end management investment company. Real Estate Securities Fund is a non-diversified, open-end management investment company. From October 3, 2005 to May 4, 2009, Mid Cap Select Fund had different investment strategies and was named Small-Mid Cap Core Fund. Prior thereto, the fund was named Technology Fund, had different investment strategies and also was non-diversified. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.
FAIF offers Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. 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 A and Class C shares are not offered by Tactical Market Opportunities Fund. Class R shares are not offered by Mid Cap Select Fund, Quantitative Large Cap Core Fund, and Tactical Market Opportunities Fund. Prior to November 3, 2008, Class C and Class R were not offered by Global Infrastructure Fund. Prior to the close of business on June 30, 2008, each fund except Global Infrastructure Fund, Quantitative Large Cap Core Fund, and Tactical Market Opportunities 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’ prospectuses provide descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’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 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.
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 may be valued at their amortized cost, which approximates fair value.
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 stock exchange, whether domestic or foreign, are valued at the last sale price on
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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), 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. As of October 31, 2010, International Select Fund, Mid Cap Select Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Small Cap Select Fund held internally fair valued securities with a total fair value of $1,507, $0, $33, $0, and $0, respectively, or 0.2%, 0.0%, 0.0%, 0.0%, and 0.0% of total net assets, respectively. The fair values of foreign securities held by Global Infrastructure Fund, International Fund, and International Select Fund are determined on each business day by an independent third party based on factors such as price changes for futures contracts, sector indices, American Depositary Receipts, and currency exchange rates that occur between the close of the local market and the close of the New York Stock Exchange. The use of daily fair value pricing by the Global Infrastructure Fund, International Fund, and International Select Fund may cause the net asset value of their shares to differ significantly from the net asset value that would be determined without fair value pricing. Foreign securities are valued at the closing prices on the principal exchange on which they trade unless they are fair valued as described above. 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.
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 October 31, 2010, each fund’s investments were classified as follows:
Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Equity Income Fund | ||||||||||||||||
Common Stocks | $ | 811,088 | $ | — | $ | — | $ | 811,088 | ||||||||
Short-Term Investment | 16,709 | — | — | 16,709 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 224,304 | — | — | 224,304 | ||||||||||||
Total Investments | $ | 1,052,101 | $ | — | $ | — | $ | 1,052,101 | ||||||||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Global Infrastructure Fund1 | ||||||||||||||||
Common Stocks | $ | 51,159 | $ | 100,748 | $ | — | $ | 151,907 | ||||||||
Short-Term Investments | 901 | — | — | 901 | ||||||||||||
Total Investments | $ | 52,060 | $ | 100,748 | $ | — | $ | 152,808 | ||||||||
1 Investments classified by industry sector are as follows: | ||||||||||||||||
Consumer Discretionary | $ | — | $ | 4,496 | $ | — | ||||||||||
Energy | 13,813 | 1,771 | — | |||||||||||||
Financials | 2,211 | — | — | |||||||||||||
Healthcare | — | 482 | — | |||||||||||||
Industrials | 8,368 | 59,043 | — | |||||||||||||
Telecommunication Services | 6,563 | 1,061 | — | |||||||||||||
Transportation | 485 | 101 | — | |||||||||||||
Utilities | 19,719 | 33,794 | — | |||||||||||||
Short Term Investments | 901 | — | — | |||||||||||||
$ | 52,060 | $ | 100,748 | $ | — | |||||||||||
International Fund2 | ||||||||||||||||
Common Stocks | $ | 136,536 | $ | 491,594 | $ | — | $ | 628,130 | ||||||||
Exchange-Traded Funds | 4,020 | — | — | 4,020 | ||||||||||||
Short-Term Investments | 29,756 | 22,148 | — | 51,904 | ||||||||||||
Total Investments | $ | 170,312 | $ | 513,742 | $ | — | $ | 684,054 | ||||||||
2 Investments classified by industry sector are as follows: | ||||||||||||||||
Consumer Discretionary | $ | 2,812 | $ | 55,494 | $ | — | ||||||||||
Consumer Staples | 10,181 | 60,284 | — | |||||||||||||
Energy | 37,874 | 27,659 | — | |||||||||||||
Financials | 22,857 | 92,555 | — | |||||||||||||
Healthcare | 8,919 | 38,150 | — | |||||||||||||
Industrials | 7,573 | 78,862 | — | |||||||||||||
Information Technology | 6,390 | 60,905 | — | |||||||||||||
Materials | 14,099 | 43,890 | — | |||||||||||||
Telecommunication Services | 15,970 | 6,302 | — | |||||||||||||
Transportation | 172 | 31 | — | |||||||||||||
Utilities | 9,689 | 27,462 | — | |||||||||||||
Exchange-Traded Funds | 4,020 | — | — | |||||||||||||
Short Term Investments | 29,756 | 22,148 | — | |||||||||||||
$ | 170,312 | $ | 513,742 | $ | — | |||||||||||
International Select Fund3 | ||||||||||||||||
Common Stocks | $ | 225,462 | $ | 551,889 | $ | 1,507 | $ | 778,858 | ||||||||
Exchange-Traded Funds | 19,629 | — | — | 19,629 | ||||||||||||
Short-Term Investments | 28,201 | 27,772 | — | 55,973 | ||||||||||||
Total Investments | $ | 273,292 | $ | 579,661 | $ | 1,507 | $ | 854,460 | ||||||||
3 Investments classified by industry sector are as follows: | ||||||||||||||||
Consumer Discretionary | $ | 7,865 | $ | 58,166 | $ | — | ||||||||||
Consumer Staples | 18,952 | 66,912 | 1,507 | |||||||||||||
Energy | 42,866 | 34,980 | — | |||||||||||||
Financials | 38,801 | 122,457 | — | |||||||||||||
Healthcare | 9,382 | 33,696 | — | |||||||||||||
Industrials | 8,219 | 78,663 | — | |||||||||||||
Information Technology | 21,920 | 74,819 | — | |||||||||||||
Materials | 34,333 | 51,751 | — | |||||||||||||
Telecommunication Services | 30,849 | 5,816 | — | |||||||||||||
Transportation | 132 | 21 | — | |||||||||||||
Utilities | 12,143 | 24,608 | — | |||||||||||||
Short Term Investments | 28,201 | 27,772 | — | |||||||||||||
Exchange-Traded Funds | 19,629 | — | — | |||||||||||||
$ | 273,292 | $ | 579,661 | $ | 1,507 | |||||||||||
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Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Large Cap Growth Opportunities Fund | ||||||||||||||||
Common Stocks | $ | 619,749 | $ | — | $ | — | $ | 619,749 | ||||||||
Short-Term Investment | 751 | — | — | 751 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 142,971 | — | — | 142,971 | ||||||||||||
Total Investments | $ | 763,471 | $ | — | $ | — | $ | 763,471 | ||||||||
Large Cap Select Fund | ||||||||||||||||
Common Stocks | $ | 134,184 | $ | — | $ | — | $ | 134,184 | ||||||||
Short-Term Investment | 421 | — | — | 421 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 24,274 | — | — | 24,274 | ||||||||||||
Total Investments | $ | 158,879 | $ | — | $ | — | $ | 158,879 | ||||||||
Large Cap Value Fund | ||||||||||||||||
Common Stocks | $ | 341,462 | $ | — | $ | — | $ | 341,462 | ||||||||
Short-Term Investment | 110 | — | — | 110 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 62,033 | — | — | 62,033 | ||||||||||||
Total Investments | $ | 403,605 | $ | — | $ | — | $ | 403,605 | ||||||||
Mid Cap Growth Opportunities Fund | ||||||||||||||||
Common Stocks | $ | 1,314,648 | $ | — | $ | — | $ | 1,314,648 | ||||||||
Short-Term Investment | 418 | — | — | 418 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 437,314 | — | — | 437,314 | ||||||||||||
Total Investments | $ | 1,752,380 | $ | — | $ | — | $ | 1,752,380 | ||||||||
Mid Cap Select Fund | ||||||||||||||||
Common Stocks | $ | 38,900 | $ | — | $ | — | $ | 38,900 | ||||||||
Warrants | — | — | — | — | ||||||||||||
Short-Term Investment | 189 | — | — | 189 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 16,985 | — | — | 16,985 | ||||||||||||
Total Investments | $ | 56,074 | $ | — | $ | — | $ | 56,074 | ||||||||
Mid Cap Value Fund | ||||||||||||||||
Common Stocks | $ | 578,031 | $ | — | $ | — | $ | 578,031 | ||||||||
Short-Term Investment | 8,394 | — | — | 8,394 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 137,426 | — | — | 137,426 | ||||||||||||
Total Investments | $ | 723,851 | $ | — | $ | — | $ | 723,851 | ||||||||
Quantitative Large Cap Core Fund | ||||||||||||||||
Common Stocks | $ | 200,569 | $ | — | $ | — | $ | 200,569 | ||||||||
Short-Term Investments | 873 | 2,300 | — | 3,173 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 26,604 | — | — | 26,604 | ||||||||||||
Total Investments | $ | 228,046 | $ | 2,300 | $ | — | $ | 230,346 | ||||||||
Real Estate Securities Fund | ||||||||||||||||
Common Stocks | $ | 2,394,738 | $ | — | $ | — | $ | 2,394,738 | ||||||||
Private Real Estate Company | — | — | 33 | 33 | ||||||||||||
Short-Term Investment | 56,919 | — | — | 56,919 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 664,673 | — | — | 664,673 | ||||||||||||
Total Investments | $ | 3,116,330 | $ | — | $ | 33 | $ | 3,116,363 | ||||||||
Small Cap Growth Opportunities Fund | ||||||||||||||||
Common Stocks | $ | 180,268 | $ | — | $ | — | $ | 180,268 | ||||||||
Warrants | — | — | — | — | ||||||||||||
Short-Term Investment | 7,626 | — | — | 7,626 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 60,995 | — | — | 60,995 | ||||||||||||
Total Investments | $ | 248,889 | $ | — | $ | — | $ | 248,889 | ||||||||
Small Cap Select Fund | ||||||||||||||||
Common Stocks | $ | 761,193 | $ | — | $ | — | $ | 761,193 | ||||||||
Warrants | — | — | — | — | ||||||||||||
Short-Term Investment | 19,522 | — | — | 19,522 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 300,888 | — | — | 300,888 | ||||||||||||
Total Investments | $ | 1,081,603 | $ | — | $ | — | $ | 1,081,603 | ||||||||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Small Cap Value Fund | ||||||||||||||||
Common Stocks | $ | 211,169 | $ | — | $ | — | $ | 211,169 | ||||||||
Exchange-Traded Fund | 1,482 | — | — | 1,482 | ||||||||||||
Short-Term Investment | 3,731 | — | — | 3,731 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 55,582 | — | — | 55,582 | ||||||||||||
Total Investments | $ | 271,964 | $ | — | $ | — | $ | 271,964 | ||||||||
Tactical Market Opportunities Fund | ||||||||||||||||
Exchange-Traded Funds | $ | 9,908 | $ | — | $ | — | $ | 9,908 | ||||||||
U.S. Government & Agency Securities | — | 2,947 | — | $ | 2,947 | |||||||||||
Short-Term Investments | 13,092 | 1,399 | — | 14,491 | ||||||||||||
Total Investments | $ | 23,000 | $ | 4,346 | $ | — | $ | 27,346 | ||||||||
Refer to each fund’s Schedule of Investments for further sector breakout.
As of October 31, 2010, each fund’s investments in other financial instruments* were classified as follows:
Total Unrealized | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Depreciation | ||||||||||||
International Fund | $ | (7,176 | ) | $ | — | $ | — | $ | (7,176 | ) | ||||||
International Select Fund | (9,720 | ) | — | — | (9,720 | ) | ||||||||||
Tactical Market Opportunities Fund | (34 | ) | — | — | (34 | ) | ||||||||||
* | Other financial instruments are derivative instruments such as futures, 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 for funds which held Level 3 asset as of October 31, 2010:
Global | Real Estate | |||||||||||||||
Infrastructure | International | International | Securities | |||||||||||||
Fund | Fund | Select Fund | Fund | |||||||||||||
Balance as of October 31, 2009 | $ | 332 | $ | 211 | $ | 110 | $ | 111 | ||||||||
Accrued discounts/premiums | — | — | — | — | ||||||||||||
Realized gain (loss) | — | — | 108 | — | ||||||||||||
Net change in unrealized appreciation or depreciation | — | — | 730 | (78 | ) | |||||||||||
Net purchases (sales) | — | — | (132 | ) | — | |||||||||||
Transfers in and/or (out) of Level 3 | (332 | ) | (211 | ) | 691 | — | ||||||||||
Balance as of October 31, 2010 | $ | — | $ | — | $ | 1,507 | $ | 33 | ||||||||
Net change in unrealized appreciation or depreciation of Level 3 investments held as of October 31, 2010 | $ | — | $ | — | $ | 730 | $ | (78 | ) | |||||||
During the year ended October 31, 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 accretion of bond discounts and amortization of bond premiums, 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 – Equity Income Fund and Real Estate Securities Fund normally declare and pay income dividends quarterly. Global Infrastructure Fund, International Fund, International Select Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Large Cap Value Fund, Mid Cap Growth Opportunities Fund, Mid Cap Select Fund, Mid Cap Value Fund, Quantitative Large Cap Core Fund, Small Cap Growth Opportunities Fund, Small Cap Select Fund, Small Cap Value Fund, and Tactical Market Opportunities Fund normally declare and pay income dividends annually. Distributions are payable in cash or reinvested in additional shares of the funds. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.
Real Estate Securities Fund receives substantial distributions from holdings in real estate investment trusts (“REITs”). Additionally, other funds also invest in REITs. Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the REIT shareholder. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, Real Estate Securities Fund,
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and other funds that invest in REITs, must use estimates in reporting the character of their income and distributions for financial statement purposes. The actual character of distributions to fund shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by a fund shareholder may represent a return of capital.
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 taxes is required.
As of October 31, 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 deferred wash sale and straddle losses, foreign currency gains and losses, investments in limited partnerships and REITs, and the “mark-to-market” of certain passive foreign investment companies (“PFICs”) for tax purposes. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.
On the Statements of Assets and Liabilities the following reclassifications were made:
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Fund | Gain (Loss) | Income | Capital | |||||||||
Equity Income Fund | $ | 112 | $ | (112 | ) | $ | ��� | |||||
Global Infrastructure Fund | (720 | ) | 123 | 597 | ||||||||
International Fund | 1,679 | (1,679 | ) | — | ||||||||
International Select Fund | 922 | (922 | ) | — | ||||||||
Large Cap Growth Opportunities Fund | — | 813 | (813 | ) | ||||||||
Mid Cap Growth Opportunities Fund | (6 | ) | 4,971 | (4,965 | ) | |||||||
Mid Cap Select Fund | 95,675 | 80 | (95,755 | ) | ||||||||
Mid Cap Value Fund | 226 | (226 | ) | — | ||||||||
Quantitative Large Cap Core Fund | 24 | (24 | ) | — | ||||||||
Real Estate Securities Fund | (8,406 | ) | 7,010 | 1,396 | ||||||||
Small Cap Growth Opportunities Fund | — | 1,494 | (1,494 | ) | ||||||||
Small Cap Select Fund | 1 | 2,820 | (2,821 | ) | ||||||||
Small Cap Value Fund | 65 | 659 | (724 | ) | ||||||||
Tactical Market Opportunities Fund | (3 | ) | 3 | — | ||||||||
The character of distributions made during the tax 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 funds. The distributions paid during the fiscal period ended October 31, 2010, and the fiscal year ended October 31, 2009 were as follows:
October 31, 2010 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gains | Total | |||||||||
Equity Income Fund | $ | 20,892 | $ | — | $ | 20,892 | ||||||
Global Infrastructure Fund | 1,125 | — | 1,125 | |||||||||
International Fund | 4,419 | — | 4,419 | |||||||||
International Select Fund | 2,446 | — | 2,446 | |||||||||
Large Cap Growth Opportunities Fund | 2,106 | — | 2,106 | |||||||||
Large Cap Select Fund | 1,140 | — | 1,140 | |||||||||
Large Cap Value Fund | 5,827 | — | 5,827 | |||||||||
Mid Cap Select Fund | 164 | — | 164 | |||||||||
Mid Cap Value Fund | 7,361 | — | 7,361 | |||||||||
Quantitative Large Cap Core Fund | 2,277 | — | 2,277 | |||||||||
Real Estate Securities Fund | 28,543 | 14,112 | 42,655 | |||||||||
Small Cap Select Fund | 184 | — | 184 | |||||||||
Small Cap Value Fund | 836 | — | 836 | |||||||||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
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 related to net capital gain to zero for the tax year ended October 31, 2010.
October 31, 2009 | ||||||||||||
Ordinary | Return of | |||||||||||
Fund | Income | Capital | Total | |||||||||
Equity Income Fund | $ | 22,374 | $ | — | $ | 22,374 | ||||||
Global Infrastructure Fund | 348 | — | 348 | |||||||||
International Fund | 8,518 | — | 8,518 | |||||||||
International Select Fund | 6,112 | — | 6,112 | |||||||||
Large Cap Growth Opportunities Fund | 1,892 | — | 1,892 | |||||||||
Large Cap Select Fund | 1,124 | — | 1,124 | |||||||||
Large Cap Value Fund | 5,375 | — | 5,375 | |||||||||
Mid Cap Select Fund | 147 | — | 147 | |||||||||
Mid Cap Value Fund | 3,357 | — | 3,357 | |||||||||
Quantitative Large Cap Core Fund | 1,073 | — | 1,073 | |||||||||
Real Estate Securities Fund | 23,504 | 8,793 | 32,297 | |||||||||
Small Cap Value Fund | 2,298 | — | 2,298 | |||||||||
As of October 31, 2010, components of accumulated earnings (deficit) on a tax-basis were as follows:
Accumulated | Other | Total | ||||||||||||||||||||||
Undistributed | Undistributed | Capital and | Unrealized | Accumulated | Accumulated | |||||||||||||||||||
Ordinary | Long-Term | Post-October | Appreciation | Gains | Earnings | |||||||||||||||||||
Fund | Income | Capital Gains | Losses | (Depreciation) | (Losses) | (Deficit) | ||||||||||||||||||
Equity Income Fund | $ | 3,943 | $ | — | $ | (8,298 | ) | $ | 188,953 | $ | — | $ | 184,598 | |||||||||||
Global Infrastructure Fund | 9,793 | 428 | — | 12,338 | (111 | ) | 22,448 | |||||||||||||||||
International Fund | 4,305 | — | (14,508 | ) | 113,825 | 81 | 103,703 | |||||||||||||||||
International Select Fund | 6,304 | — | (38,755 | ) | 76,135 | 154 | 43,838 | |||||||||||||||||
Large Cap Growth Opportunities Fund | — | — | (42,227 | ) | 146,113 | — | 103,886 | |||||||||||||||||
Large Cap Select Fund | 77 | — | (93,994 | ) | 18,915 | — | (75,002 | ) | ||||||||||||||||
Large Cap Value Fund | 2,322 | — | (109,849 | ) | 22,874 | — | (84,653 | ) | ||||||||||||||||
Mid Cap Growth Opportunities Fund | — | — | (91,799 | ) | 285,486 | (396 | ) | 193,291 | ||||||||||||||||
Mid Cap Select Fund | — | — | (27,848 | ) | 5,049 | — | (22,799 | ) | ||||||||||||||||
Mid Cap Value Fund | 3,983 | — | (107,533 | ) | 78,206 | — | (25,344 | ) | ||||||||||||||||
Quantitative Large Cap Core Fund | 1,957 | — | (7,778 | ) | 8,562 | — | 2,741 | |||||||||||||||||
Real Estate Securities Fund | — | 11,063 | — | 306,899 | (92 | ) | 317,870 | |||||||||||||||||
Small Cap Growth Opportunities Fund | — | — | (16,281 | ) | 15,460 | (25 | ) | (846 | ) | |||||||||||||||
Small Cap Select Fund | — | — | (91,990 | ) | 86,718 | — | (5,272 | ) | ||||||||||||||||
Small Cap Value Fund | — | — | (50,956 | ) | 24,282 | — | (26,674 | ) | ||||||||||||||||
Tactical Market Opportunities Fund | 101 | — | — | 112 | (16 | ) | 197 | |||||||||||||||||
The differences between book and tax basis unrealized appreciation (depreciation) are primarily due to the tax deferral of losses on wash sales and investments in limited partnerships, the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts, and the mark-to-market for certain PFICs for tax purposes.
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As of October 31, 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 | |||||||||||||||||||||||||||
Equity Income Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 8,298 | $ | — | $ | 8,298 | ||||||||||||||||||
Global Infrastructure Fund | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
International Fund | — | — | — | — | — | — | 14,508 | — | 14,508 | |||||||||||||||||||||||||||
International Select Fund | — | — | — | — | — | 3,362 | 35,393 | — | 38,755 | |||||||||||||||||||||||||||
Large Cap Growth Opportunities Fund | — | — | — | — | — | — | 42,227 | — | 42,227 | |||||||||||||||||||||||||||
Large Cap Select Fund | — | — | — | — | — | 39,678 | 54,316 | — | 93,994 | |||||||||||||||||||||||||||
Large Cap Value Fund | — | — | — | — | — | 28,962 | 80,887 | — | 109,849 | |||||||||||||||||||||||||||
Mid Cap Growth Opportunities Fund | — | — | — | — | — | — | 91,799 | — | 91,799 | |||||||||||||||||||||||||||
Mid Cap Select Fund | 4,320 | — | — | — | — | 7,820 | 15,708 | — | 27,848 | |||||||||||||||||||||||||||
Mid Cap Value Fund | — | — | — | — | — | 21,812 | 85,721 | — | 107,533 | |||||||||||||||||||||||||||
Quantitative Large Cap Core Fund | — | — | — | — | — | — | 7,778 | — | 7,778 | |||||||||||||||||||||||||||
Real Estate Securities Fund | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Small Cap Growth Opportunities Fund | — | — | — | — | — | 5,118 | 11,163 | — | 16,281 | |||||||||||||||||||||||||||
Small Cap Select Fund | — | — | — | — | — | — | 91,990 | — | 91,990 | |||||||||||||||||||||||||||
Small Cap Value Fund | — | — | — | — | — | 13,843 | 37,113 | — | 50,956 | |||||||||||||||||||||||||||
Tactical Market Opportunities Fund | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
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, forward foreign exchange contracts, 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 to or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, certain funds 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 will be recognized as capital gains (losses) for federal income tax purposes.
As of October 31, 2010, International Fund, International Select Fund and Tactical Market Opportunities Fund held outstanding futures contracts as disclosed in their Schedules of Investments.
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 October 31, 2010, the funds held no investments in outstanding written options.
Options purchased are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If an option purchased expires, a loss is realized in the amount of the cost of the option. If a
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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 October 31, 2010, the funds held no investments in options purchased.
For the fiscal period ended October 31, 2010, the quarterly average gross notional amounts of the derivatives held by the funds were:
Futures/ | Futures/ | |||||||
Fund | Long | Short | ||||||
International Fund | $ | 191,467 | $ | 146,497 | ||||
International Select Fund | 204,982 | 128,431 | ||||||
Quantitative Large Cap Core Fund | 10,135 | — | ||||||
Tactical Market Opportunities Fund | 3,858 | 4,850 | ||||||
As of October 31, 2010, the funds’ fair values of derivative instruments (i.e. futures contracts) categorized by risk exposure were classified as follows:
Tactical | ||||||||||||||
Statement of | International | Market | ||||||||||||
Assets and Liabilities | International | Select | Opportunities | |||||||||||
Location | Fund | Fund | Fund | |||||||||||
Asset Derivatives | ||||||||||||||
Interest Rate Contracts | Receivables, Net Assets – Unrealized Appreciation* | $ | — | $ | — | $ | 1 | |||||||
Equity Contracts | Receivables, Net Assets – Unrealized Appreciation* | 5,082 | 4,586 | 194 | ||||||||||
Balance as of October 31, 2010 | $ | 5,082 | $ | 4,586 | $ | 195 | ||||||||
Liability Derivatives | ||||||||||||||
Interest Rate Contracts | Payables, Net Assets – Unrealized Depreciation* | $ | — | $ | — | $ | 4 | |||||||
Equity Contracts | Payables, Net Assets – Unrealized Depreciation* | 8,453 | 10,632 | 225 | ||||||||||
Foreign Currency Contracts | Payables, Net Assets – Unrealized Depreciation* | 3,805 | 3,674 | — | ||||||||||
Balance as of October 31, 2010 | $ | 12,258 | $ | 14,306 | $ | 229 | ||||||||
* | 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 period ended October 31, 2010:
Amount of realized gain (loss) on derivatives recognized in income:
International Fund | Futures | |||
Equity Contracts | $ | (4,994 | ) | |
Foreign Exchange Contracts | 1,001 | |||
International Select Fund | Futures | |||
Equity Contracts | (1,420 | ) | ||
Foreign Exchange Contracts | 1,225 | |||
Quantitative Large Cap Core Fund | Futures | |||
Equity Contracts | $ | 88 | ||
Tactical Market Opportunities Fund1 | Futures | |||
Equity Contracts | $ | (22 | ) | |
Interest Rate Contracts | (4 | ) | ||
Foreign Exchange Contracts | 4 | |||
Net change in unrealized appreciation or depreciation on derivatives recognized in income:
International Fund | Futures | |||
Equity Contracts | $ | (1,257 | ) | |
Foreign Exchange Contracts | (3,842 | ) | ||
International Select Fund | Futures | |||
Equity Contracts | $ | (3,660 | ) | |
Foreign Exchange Contracts | (3,696 | ) | ||
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Quantitative Large Cap Core Fund | Futures | |||
Equity Contracts | $ | 234 | ||
Tactical Market Opportunities Fund1 | Futures | |||
Equity Contracts | $ | (31 | ) | |
Interest Rate Contracts | (3 | ) | ||
1 | Commenced operations December 30, 2009. For the period December 30, 2009 to October 31, 2010. |
FOREIGN CURRENCY TRANSLATION – The books and records of Global Infrastructure Fund, International Fund, International Select Fund, Real Estate Securities Fund, and Tactical Market Opportunities Fund, relating to the funds’ non-U.S. dollar denominated investments, are maintained in U.S. dollars on the following basis:
• | market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and | |
• | purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The funds do not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
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 October 31, 2010, Global Infrastructure Fund, International Fund, International Select Fund, and Tactical Market Opportunities Fund held foreign currency holdings consisting of multiple denominations.
FORWARD FOREIGN CURRENCY CONTRACTS – The funds may enter into forward foreign currency contracts as hedges against either specific transactions or fund positions. The aggregate principal amount of the contracts is not recorded because the funds intend to settle the contracts prior to delivery. All commitments are marked-to-market daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The funds realize gains or losses at the time the forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the period are recognized as ordinary income or loss for federal income tax purposes.
The use of forward foreign currency contracts does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit a potential gain that might result should the value of the currency increase. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular currency contract. In addition, there could be exposure to risks (limited to the amount of unrealized gains) if the counterparties to the contracts are unable to meet the terms of their contracts. As of October 31, 2010, the funds held no investments in outstanding forward currency 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 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 the fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. As of October 31, 2010, the funds held no investments in when-issued or forward-commitment securities.
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 “roll over” 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 period ended October 31, 2010, the funds held no investments in 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
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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 October 31, 2010, Mid Cap Select Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, and Small Cap Select Fund held investments in illiquid securities with a total value of $0, $33, $0, and $0, respectively, or 0.0%, 0.0%, 0.0%, and 0.0%, respectively, of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
Dates | Cost | |||||||||||
Mid Cap Select Fund | Shares | Acquired | Basis | |||||||||
Lantronix Warrants | 1 | 5/08 | $ | — | ||||||||
Dates | Cost | |||||||||||
Real Estate Securities Fund | Shares | Acquired | Basis | |||||||||
Newcastle Investment Holdings | 35 | 6/98 | $ | 153 | ||||||||
Dates | Cost | |||||||||||
Small Cap Growth Opportunities Fund | Shares | Acquired | Basis | |||||||||
Lantronix Warrants | 11 | 5/08 | $ | — | ||||||||
VideoPropulsion | 780 | 12/99 | — | |||||||||
Dates | Cost | |||||||||||
Small Cap Select Fund | Shares | Acquired | Basis | |||||||||
Lantronix Warrants | 5 | 6/08 | $ | — | ||||||||
SECURITIES LENDING – In order to generate additional income, a 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 of 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. With respect to Global Infrastructure Fund, International Fund, and International Select Fund, a portion of this amount is paid to State Street Bank and Trust (“State Street”) for acting as sub-lending agent. For each fund other than Global Infrastructure Fund, International Fund, and International Select Fund, 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. For Global Infrastructure Fund, International Fund, and International Select Fund, collateral for securities on loan is invested in a money market fund administered by State Street.
Securities lending fees paid to U.S. Bank by the funds during the fiscal year ended October 31, 2010, were as follows:
Fund | Amount | |||
Equity Income Fund | $ | 36 | ||
Large Cap Growth Opportunities Fund | 50 | |||
Large Cap Select Fund | 10 | |||
Large Cap Value Fund | 16 | |||
Mid Cap Growth Opportunities Fund | 142 | |||
Mid Cap Select Fund | 6 | |||
Mid Cap Value Fund | 31 | |||
Quantitative Large Cap Core Fund | 10 | |||
Real Estate Securities Fund | 197 | |||
Small Cap Growth Opportunities Fund | 52 | |||
Small Cap Select Fund | 252 | |||
Small Cap Value Fund | 23 | |||
Income from securities lending is recorded on the Statements of Operations as securities lending income net of fees paid to U.S. Bank.
SECURITY LITIGATION SETTLEMENTS – Cash from settlement proceeds related to portfolio securities no longer included in the portfolio is recorded as an adjustment to realized gains or losses. Adjustments made during the fiscal year ended October 31, 2010, were as follows:
Fund | Amount | |||
Equity Income Fund | $ | 236 | ||
Large Cap Growth Opportunities Fund | 994 | |||
Large Cap Select Fund | 67 | |||
Large Cap Value Fund | 296 | |||
Mid Cap Growth Opportunities Fund | 944 | |||
Mid Cap Select Fund | 195 | |||
Mid Cap Value Fund | 44 | |||
Quantitative Large Cap Core Fund | 2 | |||
Small Cap Growth Opportunities Fund | 1,183 | |||
Small Cap Select Fund | 1,056 | |||
Small Cap Value Fund | 115 | |||
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating
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expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended October 31, 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 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 amount 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.
3 > | Fees and Expenses |
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:
Advisory Fee | ||||||
as a % of Average | ||||||
Fund | Daily Net Assets | |||||
Equity Income Fund* | 0.65 | % | ||||
Global Infrastructure Fund | 0.90 | |||||
International Fund | 1.00 | |||||
International Select Fund | 1.00 | |||||
Large Cap Growth Opportunities Fund* | 0.65 | |||||
Large Cap Select Fund* | 0.65 | |||||
Large Cap Value Fund* | 0.65 | |||||
Mid Cap Growth Opportunities Fund | 0.70 | |||||
Mid Cap Select Fund | 0.70 | |||||
Mid Cap Value Fund | 0.70 | |||||
Quantitative Large Cap Core Fund | 0.30 | |||||
Real Estate Securities Fund | 0.70 | |||||
Small Cap Growth Opportunities Fund | 1.00 | |||||
Small Cap Select Fund | 0.70 | |||||
Small Cap Value Fund | 0.70 | |||||
Tactical Market Opportunities Fund | 0.75 | |||||
* | The advisory fees for Equity Income Fund, Large Cap Growth Opportunities Fund, Large Cap Select Fund, and Large Cap Value Fund are equal to an annual rate of 0.65% of the average daily net assets up to $3 billion, 0.625% of the average daily net assets on the next $2 billion, and 0.60% of the average daily net assets in excess of $5 billion. |
FAF Advisors has agreed to contractually waive fees and reimburse other fund expenses for the following funds through February 28, 2011, so that total annual fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange-traded funds and other investment companies, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Global Infrastructure Fund | 1.25 | % | N/A | 2.00 | % | 1.50 | % | 1.00 | % | |||||||||||||
International Fund | 1.49 | 2.24 | % | 2.24 | 1.74 | 1.24 | ||||||||||||||||
International Select Fund | 1.49 | 2.24 | 2.24 | 1.74 | 1.24 | |||||||||||||||||
Mid Cap Select Fund | 1.41 | 2.16 | 2.16 | N/A | 1.16 | |||||||||||||||||
Quantitative Large Cap Core Fund | 0.70 | N/A | 1.45 | N/A | 0.45 | |||||||||||||||||
Small Cap Growth Opportunities Fund | 1.47 | 2.22 | 2.22 | 1.72 | 1.22 | |||||||||||||||||
Tactical Market Opportunities Fund | N/A | N/A | N/A | N/A | 0.95 | |||||||||||||||||
N/A = Not Applicable
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisor’s 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
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
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 an annual basis, to 0.25% of the aggregate average daily net assets of all open-end funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
SUB-ADVISORY FEES – Altrinsic Global Advisors, LLC (“Altrinsic”) and Hansberger Global Investors, Inc. (“HGI”) each serve as investment sub-advisor to International Fund pursuant to separate sub-advisory agreements with FAF Advisors. Altrinsic, HGI, and Lazard Asset Management, LLC (“Lazard”) each serve as investment sub-advisor to International Select Fund pursuant to separate sub-advisory agreements with FAF Advisors. Each sub-advisor has discretion to select portfolio securities for its portion of the respective fund. FAF Advisors pays monthly fees to Altrinsic, HGI, and Lazard for the services provided under their respective sub-advisory agreements with FAF Advisors.
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 based on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based on 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 other than Global Infrastructure Fund, International Fund, and International Select Fund pursuant to a custodian agreement with FAIF. The fee for each fund (except Global Infrastructure Fund, International Fund, and International Select Fund) is equal to an annual rate of 0.005% of average daily net assets. State Street Bank (“SSB”) serves as the custodian for Global Infrastructure Fund, International Fund, and International Select Fund pursuant to a custodian agreement with FAIF. Global Infrastructure Fund, International Fund, and International Select Fund pay SSB various asset-based fees and transaction charges based on the issuer’s country. All fees are computed daily and paid monthly.
Under the custodian agreements, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. Conversely, the custodian charges a fee for any cash overdrafts incurred, which increases the fund’s custodian expenses.
For the fiscal year ended October 31, 2010, custodian fees were increased as a result of overdrafts and decreased as a result of interest earned as follows:
Fund | Increased | Decreased | ||||||
Large Cap Growth Opportunities Fund | $ | 2 | $ | — | ||||
Large Cap Select Fund | 2 | — | ||||||
Large Cap Value Fund | 1 | — | ||||||
Mid Cap Growth Opportunities Fund | 2 | — | ||||||
Mid Cap Select Fund | 2 | — | ||||||
Mid Cap Value Fund | 2 | — | ||||||
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 attributable to 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.
Under the distribution and shareholder servicing agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2010:
Fund | Amount | |||
Equity Income Fund | $ | 238 | ||
Global Infrastructure Fund | 42 | |||
International Fund | 34 | |||
International Select Fund | 8 | |||
Large Cap Growth Opportunities Fund | 101 | |||
Large Cap Select Fund | 7 | |||
Large Cap Value Fund | 82 | |||
Mid Cap Growth Opportunities Fund | 214 | |||
Mid Cap Select Fund | 18 | |||
Mid Cap Value Fund | 57 | |||
Quantitative Large Cap Core Fund | 1 | |||
Real Estate Securities Fund | 252 | |||
Small Cap Growth Opportunities Fund | 49 | |||
Small Cap Select Fund | 100 | |||
Small Cap Value Fund | 45 | |||
OTHER FEES AND EXPENSES – In addition to investment advisory fees, administration fees, transfer agent fees,
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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 period ended October 31, 2010, legal fees and expenses of $80 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 and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.
For the fiscal year ended October 31, 2010, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | ||||
Equity Income Fund | $ | 68 | ||
Global Infrastructure Fund | 22 | |||
International Fund | 11 | |||
International Select Fund | 10 | |||
Large Cap Growth Opportunities Fund | 17 | |||
Large Cap Select Fund | 2 | |||
Large Cap Value Fund | 8 | |||
Mid Cap Growth Opportunities Fund | 41 | |||
Mid Cap Select Fund | 4 | |||
Mid Cap Value Fund | 13 | |||
Real Estate Securities Fund | 23 | |||
Small Cap Growth Opportunities Fund | 11 | |||
Small Cap Select Fund | 28 | |||
Small Cap Value Fund | 5 | |||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
4 > | Capital Share Transactions |
FAIF has 382 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Equity | Global | |||||||||||||||||||||||||||
Income Fund | Insfrastructure Fund | International Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 2,350 | 922 | 4,927 | 2,504 | 211 | 357 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 226 | 291 | 44 | 10 | 9 | 26 | ||||||||||||||||||||||
Shares redeemed | (1,792 | ) | (1,903 | ) | (1,409 | ) | (587 | ) | (520 | ) | (704 | ) | ||||||||||||||||
Total Class A transactions | 784 | (690 | ) | 3,562 | 1,927 | (300 | ) | (321 | ) | |||||||||||||||||||
Class B:1 | ||||||||||||||||||||||||||||
Shares issued | 7 | 11 | — | — | 6 | 9 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 10 | 20 | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (287 | ) | (264 | ) | — | — | (65 | ) | (124 | ) | ||||||||||||||||||
Total Class B transactions | (270 | ) | (233 | ) | — | — | (59 | ) | (115 | ) | ||||||||||||||||||
Class C:1 | ||||||||||||||||||||||||||||
Shares issued | 587 | 124 | 541 | 396 | 21 | 39 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 11 | 11 | 4 | — | — | — | ||||||||||||||||||||||
Shares redeemed | (155 | ) | (136 | ) | (68 | ) | (4 | ) | (104 | ) | (112 | ) | ||||||||||||||||
Total Class C transactions | 443 | (1 | ) | 477 | 392 | (83 | ) | (73 | ) | |||||||||||||||||||
Class R:1 | ||||||||||||||||||||||||||||
Shares issued | 93 | 5 | — | 1 | 1 | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | 1 | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (8 | ) | (48 | ) | — | — | — | — | ||||||||||||||||||||
Total Class R transactions | 86 | (42 | ) | — | 1 | 1 | — | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 12,184 | 13,237 | 6,355 | 6,078 | 2,499 | 6,013 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 343 | 467 | 31 | 22 | 251 | 593 | ||||||||||||||||||||||
Shares redeemed | (10,482 | ) | (17,527 | ) | (1,766 | ) | (4,098 | ) | (9,647 | ) | (18,994 | ) | ||||||||||||||||
Total Class Y transactions | 2,045 | (3,823 | ) | 4,620 | 2,002 | (6,897 | ) | (12,388 | ) | |||||||||||||||||||
Net increase (decrease) in capital shares | 3,088 | (4,789 | ) | 8,659 | 4,322 | (7,338 | ) | (12,897 | ) | |||||||||||||||||||
1 | Class B shares are not offered by the Global Infrastructure Fund. The Global Infrastructure Fund began offering Class C and Class R shares on November 3, 2008. |
International | Large Cap Growth | Large Cap | ||||||||||||||||||||||||||
Select Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 352 | 210 | 313 | 342 | 45 | 99 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | 4 | 4 | 3 | 1 | 1 | ||||||||||||||||||||||
Shares redeemed | (131 | ) | (148 | ) | (472 | ) | (478 | ) | (83 | ) | (173 | ) | ||||||||||||||||
Total Class A transactions | 222 | 66 | (155 | ) | (133 | ) | (37 | ) | (73 | ) | ||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | — | — | — | 2 | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | — | (40 | ) | (88 | ) | (85 | ) | — | (39 | ) | ||||||||||||||||||
Total Class B transactions | — | (40 | ) | (88 | ) | (83 | ) | — | (39 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 62 | 3 | 6 | 25 | — | 3 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (4 | ) | (9 | ) | (55 | ) | (41 | ) | (4 | ) | (4 | ) | ||||||||||||||||
Total Class C transactions | 58 | (6 | ) | (49 | ) | (16 | ) | (4 | ) | (1 | ) | |||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 1 | 1 | 7 | 12 | 3 | 10 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (2 | ) | (6 | ) | (10 | ) | (5 | ) | — | (5 | ) | |||||||||||||||||
Total Class R transactions | (1 | ) | (5 | ) | (3 | ) | 7 | 3 | 5 | |||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 36,745 | 50,353 | 1,980 | 5,401 | 1,646 | 4,793 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 78 | 276 | 28 | 36 | 49 | 56 | ||||||||||||||||||||||
Shares redeemed | (17,034 | ) | (19,878 | ) | (3,781 | ) | (4,929 | ) | (5,476 | ) | (13,346 | ) | ||||||||||||||||
Total Class Y transactions | 19,789 | 30,751 | (1,773 | ) | 508 | (3,781 | ) | (8,497 | ) | |||||||||||||||||||
Net increase (decrease) in capital shares | 20,068 | 30,766 | (2,068 | ) | 283 | (3,819 | ) | (8,605 | ) | |||||||||||||||||||
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Large Cap | Mid Cap Growth | Mid Cap | ||||||||||||||||||||||||||
Value Fund | Opportunities Fund | Select Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 140 | 254 | 1,171 | 1,472 | 133 | 270 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 48 | 50 | — | — | 4 | 1 | ||||||||||||||||||||||
Shares redeemed | (731 | ) | (814 | ) | (1,828 | ) | (2,187 | ) | (437 | ) | (474 | ) | ||||||||||||||||
Total Class A transactions | (543 | ) | (510 | ) | (657 | ) | (715 | ) | (300 | ) | (203 | ) | ||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | — | 1 | 1 | 3 | — | 1 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | 2 | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (83 | ) | (126 | ) | (99 | ) | (78 | ) | (95 | ) | (160 | ) | ||||||||||||||||
Total Class B transactions | (83 | ) | (123 | ) | (98 | ) | (75 | ) | (95 | ) | (159 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 6 | 20 | 39 | 88 | 24 | 31 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | 1 | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (68 | ) | (74 | ) | (126 | ) | (188 | ) | (108 | ) | (144 | ) | ||||||||||||||||
Total Class C transactions | (62 | ) | (53 | ) | (87 | ) | (100 | ) | (84 | ) | (113 | ) | ||||||||||||||||
Class R:2 | ||||||||||||||||||||||||||||
Shares issued | 36 | 15 | 417 | 464 | — | — | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Shares redeemed | (6 | ) | (2 | ) | (439 | ) | (421 | ) | — | — | ||||||||||||||||||
Total Class R transactions | 30 | 13 | (22 | ) | 43 | — | — | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 1,074 | 3,340 | 3,994 | 6,379 | 256 | 1,621 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 237 | 246 | — | — | 4 | 5 | ||||||||||||||||||||||
Shares redeemed | (6,787 | ) | (9,176 | ) | (8,563 | ) | (5,692 | ) | (1,271 | ) | (3,765 | ) | ||||||||||||||||
Total Class Y transactions | (5,476 | ) | (5,590 | ) | (4,569 | ) | 687 | (1,011 | ) | (2,139 | ) | |||||||||||||||||
Net decrease in capital shares | (6,134 | ) | (6,263 | ) | (5,433 | ) | (160 | ) | (1,490 | ) | (2,614 | ) | ||||||||||||||||
2 Class R shares are not offered by the Mid Cap Select Fund.
Mid Cap | Quantitative | Real Estate | ||||||||||||||||||||||||||
Value Fund | Large Cap Core Fund | Securities Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 826 | 1,853 | 2 | 8 | 25,765 | 18,629 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 51 | 39 | — | — | 664 | 666 | ||||||||||||||||||||||
Shares redeemed | (4,548 | ) | (2,473 | ) | (4 | ) | (1 | ) | (10,506 | ) | (6,699 | ) | ||||||||||||||||
Total Class A transactions | (3,671 | ) | (581 | ) | (2 | ) | 7 | 15,923 | 12,596 | |||||||||||||||||||
Class B:3 | ||||||||||||||||||||||||||||
Shares issued | — | 3 | — | — | 4 | 5 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 1 | — | — | — | 3 | 8 | ||||||||||||||||||||||
Shares redeemed | (68 | ) | (72 | ) | — | — | (53 | ) | (56 | ) | ||||||||||||||||||
Total Class B transactions | (67 | ) | (69 | ) | — | — | (46 | ) | (43 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 34 | 44 | 1 | — | 1,946 | 758 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 2 | 1 | — | — | 28 | 33 | ||||||||||||||||||||||
Shares redeemed | (179 | ) | (205 | ) | — | (1 | ) | (357 | ) | (268 | ) | |||||||||||||||||
Total Class C transactions | (143 | ) | (160 | ) | 1 | (1 | ) | 1,617 | 523 | |||||||||||||||||||
Class R:3 | ||||||||||||||||||||||||||||
Shares issued | 508 | 972 | — | — | 2,996 | 2,407 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 9 | 6 | — | — | 75 | 118 | ||||||||||||||||||||||
Shares redeemed | (1,015 | ) | (1,025 | ) | — | — | (4,064 | ) | (619 | ) | ||||||||||||||||||
Total Class R transactions | (498 | ) | (47 | ) | — | — | (993 | ) | 1,906 | |||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 2,458 | 4,102 | 3,897 | 5,877 | 59,982 | 36,806 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 205 | 118 | 46 | 36 | 1,317 | 1,335 | ||||||||||||||||||||||
Shares redeemed | (5,579 | ) | (5,865 | ) | (2,159 | ) | (3,199 | ) | (22,061 | ) | (26,769 | ) | ||||||||||||||||
Total Class Y transactions | (2,916 | ) | (1,645 | ) | 1,784 | 2,714 | 39,238 | 11,372 | ||||||||||||||||||||
Net increase (decrease) in capital shares | (7,295 | ) | (2,502 | ) | 1,783 | 2,720 | 55,739 | 26,354 | ||||||||||||||||||||
3 Class B and Class R shares are not offered by the Quantitative Large Cap Core Fund.
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
Tactical | |||||||||||||||||||||||||||||||||
| Market | ||||||||||||||||||||||||||||||||
Small Cap Growth | Small Cap | Small Cap | Opportunities | ||||||||||||||||||||||||||||||
Opportunities Fund | Select Fund | Value Fund | Fund | ||||||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | 12/30/09* | |||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | to | |||||||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | |||||||||||||||||||||||||||
Class A:4 | |||||||||||||||||||||||||||||||||
Shares issued | 368 | 286 | 13,154 | 17,577 | 171 | 700 | — | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | 9 | 37 | — | ||||||||||||||||||||||||||
Shares redeemed | (369 | ) | (637 | ) | (15,141 | ) | (6,751 | ) | (560 | ) | (696 | ) | — | ||||||||||||||||||||
Total Class A transactions | (1 | ) | (351 | ) | (1,987 | ) | 10,826 | (380 | ) | 41 | — | ||||||||||||||||||||||
Class B:4 | |||||||||||||||||||||||||||||||||
Shares issued | 2 | 4 | — | 7 | — | 2 | — | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | 1 | — | ||||||||||||||||||||||||||
Shares redeemed | (35 | ) | (32 | ) | (302 | ) | (223 | ) | — | (423 | ) | — | |||||||||||||||||||||
Total Class B transactions | (33 | ) | (28 | ) | (302 | ) | (216 | ) | — | (420 | ) | — | |||||||||||||||||||||
Class C:4 | |||||||||||||||||||||||||||||||||
Shares issued | 24 | 22 | 94 | 187 | 28 | 31 | — | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | 1 | — | ||||||||||||||||||||||||||
Shares redeemed | (33 | ) | (21 | ) | (401 | ) | (483 | ) | (110 | ) | (76 | ) | — | ||||||||||||||||||||
Total Class C transactions | (9 | ) | 1 | (307 | ) | (296 | ) | (82 | ) | (44 | ) | — | |||||||||||||||||||||
Class R:4 | |||||||||||||||||||||||||||||||||
Shares issued | 67 | 90 | 866 | 941 | 149 | 230 | — | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | 2 | — | ||||||||||||||||||||||||||
Shares redeemed | (52 | ) | (25 | ) | (1,935 | ) | (1,137 | ) | (227 | ) | (215 | ) | — | ||||||||||||||||||||
Total Class R transactions | 15 | 65 | (1,069 | ) | (196 | ) | (78 | ) | 17 | — | |||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||||
Shares issued | 1,821 | 1,885 | 6,805 | 7,705 | 2,082 | 2,259 | 2,571 | ||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 11 | — | 68 | 239 | — | ||||||||||||||||||||||||||
Shares redeemed | (1,551 | ) | (1,149 | ) | (6,613 | ) | (8,879 | ) | (2,702 | ) | (3,723 | ) | — | ||||||||||||||||||||
Total Class Y transactions | 270 | 736 | 203 | (1,174 | ) | (552 | ) | (1,225 | ) | 2,571 | |||||||||||||||||||||||
Net increase (decrease) in capital shares | 242 | 423 | (3,462 | ) | 8,944 | (1,092 | ) | (1,631 | ) | 2,571 | |||||||||||||||||||||||
* | Commencement of operations. |
4 Class A, Class B, Class C, and Class R shares are not offered by the Tactical Market Opportunities Fund.
Class B shares converted to Class A shares (reflected above as Class A shares issued and Class B shares redeemed) during the fiscal years ended October 31, 2010 and October 31, 2009, were as follows:
Fiscal | Fiscal | |||||||
Year | Year | |||||||
Ended | Ended | |||||||
Fund | 10/31/10 | 10/31/09 | ||||||
Equity Income Fund | 197 | 83 | ||||||
International Fund | 39 | 60 | ||||||
International Select Fund | — | 38 | ||||||
Large Cap Growth Opportunities Fund | 65 | 47 | ||||||
Large Cap Select Fund | — | 29 | ||||||
Large Cap Value Fund | 60 | 75 | ||||||
Mid Cap Growth Opportunities Fund | 59 | 22 | ||||||
Mid Cap Select Fund | 66 | 107 | ||||||
Mid Cap Value Fund | 39 | 28 | ||||||
Real Estate Securities Fund | 21 | 10 | ||||||
Small Cap Growth Opportunities Fund | 9 | 3 | ||||||
Small Cap Select Fund | 212 | 61 | ||||||
Small Cap Value Fund | — | 359 | ||||||
5 > | Investment Security Transactions |
During the fiscal period ended October 31, 2010, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:
Fund | Purchases | Sales | ||||||
Equity Income Fund | $ | 240,513 | $ | 212,640 | ||||
Global Infrastructure Fund | 405,412 | 332,189 | ||||||
International Fund | 355,748 | 429,842 | ||||||
International Select Fund | 509,583 | 302,037 | ||||||
Large Cap Growth Opportunities Fund | 600,369 | 658,710 | ||||||
Large Cap Select Fund | 191,684 | 234,762 | ||||||
Large Cap Value Fund | 493,859 | 580,328 | ||||||
Mid Cap Growth Opportunities Fund | 1,414,743 | 1,606,360 | ||||||
Mid Cap Select Fund | 61,522 | 74,106 | ||||||
Mid Cap Value Fund | 716,194 | 863,270 | ||||||
Quantitative Large Cap Core Fund | 273,012 | 230,296 | ||||||
Real Estate Securities Fund | 2,998,372 | 2,130,956 | ||||||
Small Cap Growth Opportunities Fund | 235,146 | 233,436 | ||||||
Small Cap Select Fund | 626,243 | 661,919 | ||||||
Small Cap Value Fund | 116,400 | 128,123 | ||||||
Tactical Market Opportunities Fund | 17,450 | 4,796 | ||||||
6 > | Sector Risk |
Portfolios that primarily invest in a particular sector may experience greater volatility than portfolios investing in a broad range of industry sectors. Real Estate Securities Fund primarily invests in income-producing common stocks of publicly traded companies engaged in the real estate industry. The real estate industry has been subject to substantial fluctuations and declines on a local, regional, and national basis in the past and that
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may continue in the future. Global Infrastructure Fund concentrates its investments in infrastructure-related securities of companies in the industrial and utility sectors. The securities of these companies in the industrial and utility sectors have greater exposure to adverse economic, regulatory, political, legal, and other changes affecting the issuers of such securities. As of October 31, 2010, Large Cap Growth Opportunities Fund, Large Cap Select Fund, Mid Cap Growth Opportunities Fund, and Small Cap Growth Opportunities Fund each had a significant portion of their assets invested in the information technology sector, which could be more sensitive to short product cycles and aggressive pricing than the technology industry as a whole. As of the same date, Large Cap Value Fund, Mid Cap Value Fund, and Small Cap Value Fund each had a significant portion of their assets invested in the financials sector. The financials sector may be more greatly impacted by the performance of the overall economy, interest rates, competition, and consumer confidence and spending.
7 > | Indemnifications |
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
8 > | Regulatory Settlements |
International Fund received a total of $359 during the year ended October 31, 2009 from Millennium Partners, as part of a settlement of an administrative proceeding with the SEC involving market timing and late trading of mutual funds. The settlement proceeds are presented in the fund’s Statement of Changes in Net Assets for the year ended October 31, 2009. The fund and its affiliates were not involved in the proceedings.
On August 23, 2010, Equity Income Fund, International Fund, Large Cap Growth Opportunities Fund, and Small Cap Select Fund received settlement payments from the SEC related to the BISYS Fair Fund Settlement. The settlement was paid to funds that had used BISYS from June 1999 through June 2004. The Mercantile Funds, which subsequently merged into Equity Income Fund, International Fund, Large Cap Growth Opportunities Fund, and Small Cap Select Fund, had used BISYS as an administrator during this period. Because the settlement was for the overcharging of expenses to these funds, the amounts are shown in the funds’ Statements of Operations as an expense reimbursement from regulatory settlement.
9 > | New Accounting Pronouncement |
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.
10 > | Nuveen Acquisition |
On July 28, 2010, FAF Advisors and its parent company, U.S. Bank, entered into an agreement to sell a portion of FAF Advisor’s asset management business to Nuveen Investments, Inc. (the “Purchaser”). Included in the sale will be that part of FAF 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 FAF Advisors to terminate. On October 7, 2010, the funds’ Board of Directors considered and approved new investment advisory agreements for the funds with Nuveen Asset Management, a subsidiary of the Purchaser. 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 considered and approved 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.
11 > | Subsequent Events |
An affiliated 401(k) plan (the “plan”) previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares held in the plan were redeemed in-kind on December 1, 2010, in the amounts set forth below:
Large Cap Growth Opportunities Fund | $ | 86,539 | ||
Large Cap Select Fund | 15,346 | |||
Large Cap Value Fund | 132,685 | |||
Mid Cap Growth Opportunities Fund | 129,554 | |||
Mid Cap Value Fund | 91,634 | |||
Quantitative Large Cap Core Fund | 17,935 | |||
Small Cap Value Fund | 79,419 |
An affiliated pension plan (the “plan”) also previously offered certain funds as investment options to plan participants. As a result of a decision to no longer offer such funds as investment options, certain fund shares
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
held in the plan were redeemed in-kind on December 20, 2010, in the amounts set forth below:
Mid Cap Growth Opportunities Fund | $ | 191,102 | ||
Mid Cap Value Fund | 170,281 | |||
Real Estate Securities Fund | 48,375 | |||
Small Cap Growth Opportunities Fund | 46,265 | |||
Small Cap Select Fund | 49,354 | |||
Small Cap Value Fund | 48,511 |
In these transactions, the funds paid redemption proceeds by distributing a proportionate amount of securities in their respective portfolios. Remaining shareholders in the funds did not recognize any capital gains from the transactions.
Management has evaluated all other fund related events and transactions that occurred subsequent to October 31, 2010, through the date of issuance of the funds’ financial statements and determined that no additional events have occurred that require disclosure.
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Notice to Shareholders | October 31, 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 period ended October 31, 2010, each fund has designated long term capital gains, ordinary income, dividends qualifying for the corporate received deduction, and qualified dividend income with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||||||
Capital Gains | Income | Return of | Total | |||||||||||||||
Distribution | Distributions | Capital | Distributions | |||||||||||||||
Fund | (Tax Basis)1 | (Tax Basis)1 | (Tax Basis)1 | (Tax Basis) | ||||||||||||||
Equity Income Fund | — | % | 100.00 | % | — | % | 100.00 | % | ||||||||||
Global Infrastructure Fund2 | — | 100.00 | — | 100.00 | ||||||||||||||
International Fund2 | — | 100.00 | — | 100.00 | ||||||||||||||
International Select Fund2 | — | 100.00 | — | 100.00 | ||||||||||||||
Large Cap Growth Opportunities Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Large Cap Select Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Large Cap Value Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Mid Cap Growth Opportunities Fund | — | — | — | — | ||||||||||||||
Mid Cap Select Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Mid Cap Value Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Quantitative Large Cap Core Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Real Estate Securities Fund | 33.00 | 67.00 | — | 100.00 | ||||||||||||||
Small Cap Growth Opportunities Fund | — | — | — | — | ||||||||||||||
Small Cap Select Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Small Cap Value Fund | — | 100.00 | — | 100.00 | ||||||||||||||
Tactical Market Opportunities Fund | — | — | — | — | ||||||||||||||
1 | Based on a percentage of the fund’s total distributions. | |
2 | The Global Infrastructure Fund, International Fund, and International Select Fund have elected to pass through to shareholders foreign taxes under Section 853 of the Internal Revenue Code. Foreign taxes paid for the funds were $225, $1,334, and $1,501, respectively, and foreign source income for the funds was $2,744, $12,601, and $14,755, respectively. |
Shareholder Notification of Federal Tax Status:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal period ended October 31, 2010 as dividends qualifying for the dividends received deduction available to corporate shareholders:
Fund | ||||||
Equity Income Fund | 100.00 | % | ||||
Global Infrastructure Fund | 13.41 | |||||
International Fund | 1.20 | |||||
International Select Fund | 1.26 | |||||
Large Cap Growth Opportunities Fund | 100.00 | |||||
Large Cap Select Fund | 100.00 | |||||
Large Cap Value Fund | 100.00 | |||||
Mid Cap Growth Opportunities Fund | — | |||||
Mid Cap Select Fund | 100.00 | |||||
Mid Cap Value Fund | 100.00 | |||||
Quantitative Large Cap Core Fund | 100.00 | |||||
Real Estate Securities Fund | 1.36 | |||||
Small Cap Growth Opportunities Fund | — | |||||
Small Cap Select Fund | 84.71 | |||||
Small Cap Value Fund | 100.00 | |||||
Tactical Market Opportunities Fund | — | |||||
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Notice to Shareholders | October 31, 2010 (unaudited) |
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal period ended October 31, 2010 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Fund | ||||||
Equity Income Fund | 100.00 | % | ||||
Global Infrastructure Fund | 76.01 | |||||
International Fund | 100.00 | |||||
International Select Fund | 100.00 | |||||
Large Cap Growth Opportunities Fund | 100.00 | |||||
Large Cap Select Fund | 100.00 | |||||
Large Cap Value Fund | 100.00 | |||||
Mid Cap Growth Opportunities Fund | — | |||||
Mid Cap Select Fund | 100.00 | |||||
Mid Cap Value Fund | 100.00 | |||||
Quantitative Large Cap Core Fund | 100.00 | |||||
Real Estate Securities Fund | 3.80 | |||||
Small Cap Growth Opportunities Fund | — | |||||
Small Cap Select Fund | 84.71 | |||||
Small Cap Value Fund | 100.00 | |||||
Tactical Market Opportunities Fund | — | |||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund was as follows:
Fund | ||||||
Equity Income Fund | 0.09 | % | ||||
Global Infrastructure Fund | 0.28 | |||||
International Fund | 1.58 | |||||
International Select Fund | 2.41 | |||||
Large Cap Growth Opportunities Fund | 0.32 | |||||
Large Cap Select Fund | 0.22 | |||||
Large Cap Value Fund | 0.20 | |||||
Mid Cap Growth Opportunities Fund | — | |||||
Mid Cap Select Fund | 0.36 | |||||
Mid Cap Value Fund | 1.41 | |||||
Quantitative Large Cap Core Fund | 1.62 | |||||
Real Estate Securities Fund | 0.05 | |||||
Small Cap Growth Opportunities Fund | — | |||||
Small Cap Select Fund | 1.89 | |||||
Small Cap Value Fund | 0.11 | |||||
Tactical Market Opportunities Fund | — | |||||
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The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund was as follows:
Fund | ||||||
Equity Income Fund | — | % | ||||
Global Infrastructure Fund | — | |||||
International Fund | — | |||||
International Select Fund | — | |||||
Large Cap Growth Opportunities Fund | — | |||||
Large Cap Select Fund | — | |||||
Large Cap Value Fund | — | |||||
Mid Cap Growth Opportunities Fund | — | |||||
Mid Cap Select Fund | — | |||||
Mid Cap Value Fund | — | |||||
Quantitative Large Cap Core Fund | — | |||||
Real Estate Securities Fund | — | |||||
Small Cap Growth Opportunities Fund | — | |||||
Small Cap Select Fund | — | |||||
Small Cap Value Fund | — | |||||
Tactical Market Opportunities Fund | — | |||||
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 AND SUB-ADVISORY AGREEMENTS
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”). In addition to determining whether to renew the Agreement with FAF Advisors, the Board also is responsible for determining whether to approve sub-advisory agreements for the Funds.
At a meeting on May 3-4, 2010, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”) and: (i) with respect to the International Select Fund, information relating to each sub-advisory agreement between FAF Advisors and Altrinsic Global Advisors, LLC (“Altrinsic”), Hansberger Global Investors, Inc. (“HGI”), and Lazard Asset Management LLC (“Lazard”), and (ii) with respect to the International Fund, information relating to each sub-advisory agreement between FAF Advisors and HGI and Altrinsic (collectively the “Sub-Advisory Agreements” and the “Sub-Advisors”). In advance of the meeting, the Board received materials relating to the Agreement and the Sub-Advisory Agreements, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 15-17, 2010, the Board concluded its consideration of and approved the Agreement and the Sub-Advisory Agreements 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 considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of each Fund, (3) the profitability of FAF
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Notice to Shareholders | October 31, 2010 (unaudited) |
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 and the Sub-Advisory Agreements.
Before approving the Agreement and the Sub-Advisory Agreements, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement and the Sub-Advisory Agreements. 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 and that the Sub-Advisory Agreements are fair and in the interests of the shareholders of the International Fund and of the International Select 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, and the nature, quality and extent of the services provided by the Sub-Advisors to the International Fund and to the International Select Fund.
For each Fund, the Board reviewed FAF Advisors’ key personnel who provide investment management services to the 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 the 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, (iii) monitoring the performance of the various organizations providing services to each Fund, including the Fund’s distributor, sub-administrator, transfer agent and custodian. The Board also considered that, with respect to International Fund and International Select Fund, FAF Advisors is responsible for allocating assets among the Sub-Advisors, monitoring the performance of the Sub-Advisors and managing assets that have not been allocated to a Sub-Advisor. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.
With respect to the International Fund and the International Select Fund, the Board examined the nature, quality and extent of the services provided by each Sub-Advisor and reviewed each Sub-Advisor’s key personnel who provide investment management services to the Funds. The Board noted that, under the Sub-Advisory Agreements, the Sub-Advisors have the authority and responsibility to make and execute investment decisions for the Funds with respect to assets that have been allocated to them and within the framework of the Funds’ investment policies and restrictions, subject to the supervision of FAF Advisors and review by the Board. The Board further considered that the Sub-Advisors’ duties with respect to the International Fund and the International Select Fund include investment research and stock selection and adherence to the Funds’ investment policies and restrictions. The Board noted that, under the Agreement, FAF Advisors is responsible for monitoring the performance of the Sub-Advisors.
The Board considered compliance reports about FAF Advisors, Altrinsic, HGI and Lazard from the Fund’s Chief Compliance Officer (“CCO”).
Based on the foregoing, the Board concluded that: (i) each Fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement, and (ii) the International Fund and the International Select Fund are likely to benefit from the nature, extent and quality of the services provided by their respective Sub-Advisors under the Sub-Advisory Agreements.
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, unless otherwise noted.
Global Infrastructure Fund. The Board considered that the Fund outperformed its performance universe median for the one-year period and performed competitively against its performance universe median for the period since the Fund’s inception on December 17, 2007. The Board also considered that the Fund outperformed its benchmark index for the period since its inception, though it underperformed its benchmark index for the one-year period. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
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Equity Income Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median for all periods. The Board also considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
International Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe median for all periods. The Board also considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement and the Sub-Advisory Agreements.
International Select Fund. The Board considered that the Fund outperformed its performance universe median for the one- and three-year periods and since the Fund’s inception on December 21, 2006. The Board also considered that the Fund outperformed its benchmark index for the three-year period and the period since the Fund’s inception, though it underperformed its benchmark index for the one-year period. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement and the Sub-Advisory Agreements.
Large Cap Growth Opportunities Fund. The Board considered that the Fund outperformed both its performance universe median and its benchmark index for the three- and five-year periods, though it underperformed both its performance universe median and its benchmark index for the one-year period. The Board considered FAF Advisors’ assertion that the Fund’s underperformance during the one-year period was attributable primarily to the Fund being underweight to economically sensitive, higher beta stocks relative to the Fund’s benchmark and performance universe in March 2009, when those stocks led a market rally. The Board also considered that FAF Advisors subsequently increased the Fund’s holdings in higher beta stocks throughout the year. In light of the Fund’s long-term competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Large Cap Select Fund. The Board considered that the Fund outperformed its benchmark index for all periods. The Board also 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 five-year periods. In light of the Fund’s competitive performance against its benchmark and competitive performance against its performance universe for the one-year period, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Large Cap Value Fund. The Board considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. The Board also considered that the Fund underperformed its performance universe median for all periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance during the one-year period could be attributed primarily to the Fund being underweight to economically sensitive, higher beta stocks relative to the Fund’s benchmark and performance universe in March 2009, when those stocks led a market rally. The Board also considered that FAF Advisors subsequently increased the Fund’s holdings in higher beta stocks throughout the year and noted that the Fund had improved its performance vis-à-vis its performance universe median for the three-month period ending March 31, 2010. In light of the Fund’s competitive performance against its benchmark and improved performance against its performance universe, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Growth Opportunities Fund. The Board considered that the Fund outperformed or performed competitively against both its performance universe median and its benchmark index for the three- and five-year periods, though it underperformed both its performance universe median and its benchmark index for the one-year period. The Board considered FAF Advisors’ assertion that the Fund’s underperformance during the one-year period could be attributed primarily to the Fund being underweight to economically sensitive, higher beta stocks relative to the Fund’s benchmark and performance universe in March 2009, when those stocks led a market rally. The Board also considered that FAF Advisors subsequently increased the Fund’s holdings in higher beta stocks throughout the year. In light of the Fund’s competitive long-term performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Select Fund. The Board considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. The Board also considered that the Fund underperformed its performance universe median for all periods. The Board considered FAF Advisors’ assertion that, effective May 4, 2009, the Fund’s principal investment strategy and name were changed and that the Fund began operating as a mid-cap core fund; therefore, comparisons of the Fund’s performance against a mid-cap core performance universe and the Russell Mid Cap Total Return benchmark index for the three- and five-year periods are not particularly meaningful. The Board also considered FAF Advisors’ assertion that, for the one-year period, the Fund’s underperformance was attributable in large part to the Fund’s quantitative focus on companies with strong cash flows rather than on economically sensitive, higher beta
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stocks that led a market rally, and that the Fund’s investment approach will tend to lag during periods of historic market rallies. The Board also considered FAF Advisors’ assertion that the Fund will perform better during periods of normalized economic growth, and the Board noted that the Fund had performed competitively against its performance universe for the three months ending March 31, 2010. In light of the Fund’s limited history operating as a mid-cap core fund and its recent competitive performance, the Board concluded it would be in the interest of the Fund and its shareholders to renew the Agreement.
Mid Cap Value Fund. The Board considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. The Board also considered that the Fund underperformed its performance universe median for all periods. The Board noted FAF Advisors’ assertion that the Fund’s underperformance for the one-year period could be attributed primarily to the Fund being underweight to economically sensitive, higher beta stocks in March 2009, when those stocks led a market rally. The Board also considered that FAF Advisors subsequently increased the Fund’s holdings in high beta stocks throughout the year and noted that the Fund had improved its performance vis-à-vis its performance universe median for the three-month period ending March 31, 2010. In light of the foregoing, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Quantitative Large Cap Core Fund. The Board considered that the Fund outperformed its benchmark index for the period since the Fund’s inception on July 31, 2007, though the Fund underperformed its benchmark index for the one-year period. The Board also considered that the Fund underperformed its performance universe median for the one-year period and the period since the Fund’s inception. The Board considered FAF Advisors’ assertion that the Fund’s underperformance vis-à-vis its benchmark index and its performance universe median for the one-year period could be attributed in part to risk-averse positioning in March 2009, during a market rally. The Board also considered FAF Advisors’ assertion that the Fund’s strategy and sector weightings remain sound. In light of the Fund’s competitive performance against its benchmark during the period since the Fund’s inception and FAF Advisors’ market outlook for the Fund, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Real Estate Securities Fund. The Board considered that the Fund outperformed its performance universe median for all periods. The Board also considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Growth Opportunities Fund. The Board considered that the Fund outperformed both its performance universe median and its benchmark index for all periods. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Select Fund. The Board considered that the Fund outperformed or performed competitively against both its performance universe median and its benchmark index for all periods. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Value Fund. The Board considered that the Fund outperformed its benchmark index for the three- and five-year periods, though it underperformed its benchmark index for the one-year period. The Board also considered that the Fund underperformed its performance universe median for all periods. The Board considered FAF Advisors’ assertion that the Fund’s underperformance during the one-year period could be attributed primarily to the Fund’s investment in higher-quality, lower-beta stocks, whereas during the past year, economically sensitive, higher-beta stocks led a market rally. The Board also considered that FAF Advisors subsequently increased the Fund’s holdings in higher-beta stocks throughout the year, and the Board noted that the Fund outperformed its performance universe median for the three months ending March 31, 2010. In light of the foregoing, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Tactical Market Opportunities Fund. The Board noted that the Fund offers only one class of shares, Class Y Shares. The discussion below relates to the performance of this class. The Board considered that the Fund started operations on December 30, 2009, and that the Fund has a short operating history. The Board also considered that the Fund outperformed its benchmark index for the three-month period since inception, ending March 31, 2010. In light of the Fund’s short operating history and its competitive performance, the Board concluded that 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
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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 investment companies, investment companies 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 expense ratio after waivers compared to the median expense ratio after waivers 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 expense ratios of each Fund is set forth below:
Global Infrastructure Fund, Equity Income Fund, International Select Fund, Mid Cap Growth Opportunities Fund, Quantitative Large Cap Core Fund, Real Estate Securities Fund, Small Cap Growth Opportunities Fund, Small Cap Value Fund. The Board considered that, after waivers, each Fund’s advisory fee and total expense ratio are 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.
International Fund, Large Cap Growth Opportunities Fund, Mid Cap Value Fund. The Board considered that, after waivers, each Fund’s advisory fee is higher than the peer group median, but that each Fund’s total expense ratio is 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.
Large Cap Value Fund. The Board considered that, after waivers, the Fund’s advisory fee and total expense ratio are higher than the peer group median, though 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.
Mid Cap Select Fund. The Board considered that, after waivers, the Fund’s advisory fee is lower than the peer group median and that the Fund’s total expense ratio is higher than the peer group median, though 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.
Large Cap Select Fund. The Board considered that, after waivers, the Fund’s advisory fee is higher than the peer group median and that the Fund’s total expense ratio is equal to that of the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Small Cap Select Fund. The Board considered that, after waivers, the Fund’s advisory fee is equal to that of the peer group median and that the Fund’s total expense ratio is lower than the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Tactical Market Opportunities Fund. The Board considered that, at the Fund’s inception, FAF Advisors agreed to waive advisory fees and reimburse expenses through February 28, 2011, so that the total annual fund operating expenses do not exceed 0.95% for the Class Y Shares. The Board concluded that, given the expense limitation and the short time since the approval of the Fund’s initial advisory contract, the Fund’s advisory fee is reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each Fund’s investment advisory fee reflects 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 most 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,
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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, 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.
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.
After full consideration of these and other factors, the Board concluded that approval of the Agreement and the Sub-Advisory Agreements was in the interest of each Fund and its shareholders.
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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 | |||||
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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 | First American Funds Complex: twelve registered investment companies, including fifty-six portfolios | 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.
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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. |
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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 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.
independent directors.
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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 October 31, 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.
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 | CUSTODIANS U.S. Bank National Association 60 Livingston Avenue St. Paul, Minnesota 55101 State Street Bank and Trust Company 2 Avenue de Lafayette Boston, Massachusetts 02111 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 |
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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 12/2010 AR-STOCK
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Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Table of Contents
Message to Shareholders December 14, 2010
Dear Shareholders:
We invite you to take a few minutes to review the results of the fiscal year ended October 31, 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,
![]() | ![]() | |
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
Table of Contents
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 the Financial Statements provide additional details on how the securities are valued.
The Statement of Assets and Liabilities lists the assets and liabilities of the fund and 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
Table of Contents
Equity Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s
500 Index* (“S&P 500 Index”).
500 Index* (“S&P 500 Index”).
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Equity Index Fund (the “fund”), Class Y shares, returned 16.18% for the fiscal year ended October 31, 2010 (Class A shares returned 15.94% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P 500 Index*, returned 16.52% for the same period.
How did market conditions affect stock market performance during the fiscal year?
U.S. equities performed well during the past 12 months, continuing their rebound from the 2008-2009 drop. While the U.S. government continued its stimulative fiscal positioning, incremental monies have slowed, and these only roughly offset the contractionary effects of individual and corporate reductions in debt levels. It is in this context that the Federal Reserve Bank announced its “Quantitative Easing 2,” a program to buy up Treasury bonds which should drive investors to invest in riskier asset classes such as corporate debt and equities.
So far, investors have indeed returned to the riskier asset classes, restoring price levels in those markets. While this has helped the spirits and bottom lines of investors, the rebound in the overall economy has sputtered out, not enjoying the strength that is typical following recessions. An additional six million Americans are still out of work compared to two years ago and our country’s industrial capacity remains underutilized. This growth capacity means that demand stimulus need not be inflationary, so we expect the Fed to continue with its announced programs and possibly expand them.
The current view in Washington is substantially less inclined to driving up demand, and more supportive of protecting the long-term value of investors’ assets. While the federal budget almost certainly will continue to be in deficit for years, cutting less productive spending will be a priority. We expect the stimulus to support modest growth unless a major “austerity” mentality takes over at the Fed.
The third quarter’s strong earnings reports continued the pattern of earnings growth divergence from underlying economic performance, at least as it relates to the U.S. economy. The outperformance of corporate profits relative to the broader economy reflects continued margin expansion and productivity gains in the corporate sector. Our earnings outlook has been premature in anticipating a convergence of corporate earnings with the performance of the economy. However, with profit margins at near-record levels in the third quarter, material costs rising, and more hours worked, this will likely be a 2011 story.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 4 | .2% | ||
Exxon Mobil | 3 | .0 | ||
Apple | 2 | .4 | ||
Microsoft | 1 | .8 | ||
Procter & Gamble | 1 | .6 | ||
IBM | 1 | .6 | ||
Johnson & Johnson | 1 | .6 | ||
General Electric | 1 | .5 | ||
AT&T | 1 | .5 | ||
Chevron | 1 | .5 | ||
Sector Allocation as of October 31, 20101 (% of net assets)
Information Technology | 18 | .3% | ||
Financials | 14 | .5 | ||
Healthcare | 10 | .9 | ||
Consumer Staples | 10 | .6 | ||
Energy | 10 | .5 | ||
Consumer Discretionary | 10 | .2 | ||
Industrials | 10 | .2 | ||
Materials | 3 | .5 | ||
Utilities | 3 | .4 | ||
Telecommunication Services | 3 | .0 | ||
Short-Term Investments | 4 | .9 | ||
100 | .0% | |||
1 | Fund holdings and 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 and do not reflect the impact on sector allocation of holding derivative instruments, such as futures contracts. See note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 2010. |
2 | Investments typically comprise substantially all 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 3
Table of Contents
Equity Index Fund
What will be the likely developments in the equity markets in the coming fiscal year?
Leading indicators for the U.S. economy point to a modest growth rate with very restrained price increases. On the first point, much of the rebound for the recovery so far has been from rebuilding inventories, an effect that usually retreats in importance, while growth in final demand has been very modest. On the latter point, the very high unemployment rates, together with continued increases in productivity and a still-increasing ability to offshore many high-cost jobs, has resulted in declining labor costs per unit of output. Corporate profits are alone in having shown the “V-shaped” recovery pattern that some had hoped for the whole economy.
In a climate of modest growth but favorable price and profit drivers, equities should be able to gain, although we do not expect the rate of change that we have had in the rebound from the recession. In terms of policy uncertainties, investors will be watching the mix of fiscal and monetary stimulus carefully for signs that might favor a resurgence in consumer sentiment and spending. Given that mortgages are the largest single asset on most banks’ balance sheets and that homes are the largest source of net wealth for many Americans, the recovery of home prices will be key in spending and borrowing decisions. This, in turn, will show up in demand for discretionary goods.
At this writing, international trade levels are continuing to improve, which will help U.S. firms oriented to exports. Much of the trade increase is expected in emerging markets that are positioned to continue their high growth rates. In contrast, Europe has a couple of strong economies; however, peripheral Europe is still struggling to deal with high debt levels without the flexibility enjoyed by policymakers in the United States. That may give the United States an edge in capturing the growth in 2011 and beyond.
Fund overview
The fund is invested to replicate the S&P 500 Index* as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes 500 leading companies in the major industries of the U.S. economy and covers about 75% of the dollar value of all traded stocks in the U.S. market.
The three best-performing sectors for the fiscal year were consumer discretionary, industrials, and telecommunication services, which were up 33%, 29%, and 25%, respectively. The three lowest-performing sectors were financials, energy, and healthcare, which gained 5%, 7%, and 13%, respectively.
In recent years, Standard & Poor’s has shifted its membership, causing the index to be more closely aligned with the largest 500 publicly traded companies in the economy. Thus, the index now reflects some of the most successful firms over the past couple of years, with dramatically increased weights given to companies such as Google and Apple. Unlike a decade ago, however, when many technology firms were bid to exceptional price/earnings multiples, investors are now watching tech earnings scrupulously. Therefore, we do not believe this phenomenon reflects the same bubble-making mentality.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
4 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 9.55 | % | 0.15 | % | (1.06 | )% | — | 3.56 | % | (0.93 | )% | (1.47 | )% | — | ||||||||||||||||||
Class B | 10.07 | % | 0.15 | % | (1.24 | )% | — | 3.77 | % | (0.93 | )% | (1.65 | )% | — | ||||||||||||||||||
Class C | 14.05 | % | 0.53 | % | (1.25 | )% | — | 7.80 | % | (0.56 | )% | (1.66 | )% | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 15.94 | % | 1.28 | % | (0.50 | )% | — | 9.59 | % | 0.19 | % | (0.91 | )% | — | ||||||||||||||||||
Class B | 15.07 | % | 0.53 | % | (1.24 | )% | — | 8.77 | % | (0.56 | )% | (1.65 | )% | — | ||||||||||||||||||
Class C | 15.05 | % | 0.53 | % | (1.25 | )% | — | 8.80 | % | (0.56 | )% | (1.66 | )% | — | ||||||||||||||||||
Class R | 15.63 | % | 1.03 | % | — | 3.12 | % | 9.34 | % | (0.06 | )% | — | 2.73 | % | ||||||||||||||||||
Class Y | 16.18 | % | 1.54 | % | (0.25 | )% | — | 9.93 | % | 0.45 | % | (0.66 | )% | — | ||||||||||||||||||
S&P 500 Index3 | 16.52 | % | 1.73 | % | (0.02 | )% | 3.81 | % | 10.16 | % | 0.64 | % | (0.43 | )% | 3.42 | % | ||||||||||||||||
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares in the first year, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.
As of the most recent prospectus, the fund’s total annual operating expense ratio, before waivers and including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class B, Class C, Class R, and Class Y shares was 0.79%, 1.54%, 1.54%, 1.04%, and 0.54%, respectively. The advisor has contractually agreed to waive fees through February 28, 2011, so that total annual fund operating expenses, not including any acquired fund fees and expenses, for Class A, Class B, Class C, Class R, and Class Y shares do not exceed 0.62%, 1.37%, 1.37%, 0.87%, and 0.37%, respectively. These fee waivers may be terminated at any time after February 28, 2011, at the discretion of the advisor. Prior to that time, such waivers may not be terminated without the approval of the fund’s board of directors.
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment1,2,4 as of October 31, 2010
Equity Index Fund, Class A (NAV) | ![]() | $ | 9,514 | |||||
Equity Index Fund, Class A (POP) | ![]() | $ | 8,989 | |||||
S&P 500 Index3 | ![]() | $ | 9,983 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the S&P 500 Index3.
![(EQUITY INDEX LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161101.gif)
2 | Performance does not reflect deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Performance reflects fee waivers that were in effect during the periods indicated. 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, market capitalization-weighted index based on the average weighted performance of 500 widely held large-cap common stocks. |
4 | Performance for Class B, Class C, Class R, 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 5
Table of Contents
Mid Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Standard & Poor’s MidCap 400 Index* (“S&P MidCap 400 Index”).
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Mid Cap Index Fund (the “fund”), Class Y shares, returned 27.13% for the fiscal year ended October 31, 2010 (Class A shares returned 26.79% without taking the sales charge into account). By comparison, the fund’s benchmark, the S&P MidCap 400 Index*, returned 27.64% for the same period.
How did market conditions affect stock market performance during the fiscal year?
U.S. equities performed well during the past 12 months, continuing their rebound from the 2008-2009 drop. While the U.S. government continued its stimulative fiscal positioning, incremental monies have slowed, and these only roughly offset the contractionary effects of individual and corporate reductions in debt levels. It is in this context that the Federal Reserve Bank announced its “Quantitative Easing 2,” a program to buy up Treasury bonds which should drive investors to invest in riskier asset classes such as corporate debt and equities.
So far, investors have indeed returned to the riskier asset classes, restoring price levels in those markets. While this has helped the spirits and bottom lines of investors, the rebound in the overall economy has sputtered out, not enjoying the strength that is typical following recessions. An additional six million Americans are still out of work compared to two years ago and our country’s industrial capacity remains underutilized. This growth capacity means that demand stimulus need not be inflationary, so we expect the Fed to continue with its announced programs and possibly expand them.
The current view in Washington is substantially less inclined to driving up demand, and more supportive of protecting the long-term value of investors’ assets. While the federal budget almost certainly will continue to be in deficit for years, cutting less productive spending will be a priority. We expect the stimulus to support modest growth unless a major “austerity” mentality takes over at the Fed.
The third quarter’s strong earnings reports continued the pattern of earnings growth divergence from underlying economic performance, at least as it relates to the U.S. economy. The outperformance of corporate profits relative to the broader economy reflects continued margin expansion and productivity gains in the corporate sector. Our earnings outlook has been premature in anticipating a convergence of corporate earnings with the performance of the economy. However, with profit margins at near-record levels in the third quarter, material costs rising, and more hours worked, this will likely be a 2011 story.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 3 | .4% | ||
F5 Networks | 0 | .9 | ||
U.S. Treasury Bill, 0.185%, 11/04/2010 | 0 | .9 | ||
Newfield Exploration | 0 | .7 | ||
Vertex Pharmaceuticals | 0 | .7 | ||
Netflix | 0 | .7 | ||
New York Community Bancorp | 0 | .7 | ||
Joy Global | 0 | .7 | ||
Edwards Lifesciences | 0 | .7 | ||
Lubrizol | 0 | .6 | ||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 18 | .9% | ||
Information Technology | 15 | .3 | ||
Industrials | 14 | .8 | ||
Consumer Discretionary | 13 | .4 | ||
Healthcare | 10 | .7 | ||
Materials | 6 | .3 | ||
Energy | 6 | .0 | ||
Utilities | 5 | .9 | ||
Consumer Staples | 3 | .5 | ||
Telecommunication Services | 0 | .8 | ||
Short-Term Investments | 4 | .3 | ||
Other Assets and Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and 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 and do not reflect the impact on sector allocation of holding derivative instruments, such as futures contracts. See note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 2010. |
2 | Investments typically comprise substantially all 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. |
6 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
What will be the likely developments in the equity markets in the coming fiscal year?
Leading indicators for the U.S. economy point to a modest growth rate with very restrained price increases. On the first point, much of the rebound for the recovery so far has been from rebuilding inventories, an effect that usually retreats in importance, while growth in final demand has been very modest. On the latter point, the very high unemployment rates, together with continued increases in productivity and a still-increasing ability to offshore many high-cost jobs, has resulted in declining labor costs per unit of output. Corporate profits are alone in having shown the “V-shaped” recovery pattern that some had hoped for the whole economy.
In a climate of modest growth but favorable price and profit drivers, equities should be able to gain, although we do not expect the rate of change that we have had in the rebound from the recession. In terms of policy uncertainties, investors will be watching the mix of fiscal and monetary stimulus carefully for signs that might favor a resurgence in consumer sentiment and spending. Given that mortgages are the largest single asset on most banks’ balance sheets and that homes are the largest source of net wealth for many Americans, the recovery of home prices will be key in spending and borrowing decisions. This, in turn, will show up in demand for discretionary goods.
At this writing, international trade levels are continuing to improve, which will help U.S. firms oriented to exports. Much of the trade increase is expected in emerging markets that are positioned to continue their high growth rates. In contrast, Europe has a couple of strong economies; however, peripheral Europe is still struggling to deal with high debt levels without the flexibility enjoyed by policymakers in the United States. That may give the United States an edge in capturing the growth in 2011 and beyond.
Fund overview
The fund is invested to replicate the S&P MidCap 400 Index* as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes stocks that reflect the risk and return characteristics of the broader mid-cap universe. Mid-cap stocks are now being recognized as an independent asset class and the capitalization range of this index covers about 10% of U.S. equities market.
The three best-performing sectors for the fiscal year were materials, information technology, and consumer discretionary, which were up 37%, 34%, and 30%, respectively. The three lowest-performing sectors were financials, energy, and healthcare, which gained 23%, 24%, and 24%, respectively.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 7
Table of Contents
Mid Cap Index Fund
Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 11/27/2000 | 9/24/2001 | 1 year | 5 years | 10 Years | 11/27/2000 | 9/24/2001 | |||||||||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||||||||||
Class A | 19.87 | % | 3.24 | % | 4.75 | % | — | — | 10.58 | % | 2.12 | % | 4.03 | % | — | — | ||||||||||||||||||||||||
Class C | 24.86 | % | 3.66 | % | — | — | 7.76 | % | 15.13 | % | 2.50 | % | — | — | 7.44 | % | ||||||||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||||||||||
Class A | 26.79 | % | 4.42 | % | 5.35 | % | — | — | 17.01 | % | 3.27 | % | 4.62 | % | — | — | ||||||||||||||||||||||||
Class C | 25.86 | % | 3.66 | % | — | — | 7.76 | % | 16.13 | % | 2.50 | % | — | — | 7.44 | % | ||||||||||||||||||||||||
Class R | 26.48 | % | 4.15 | % | — | 5.56 | % | — | 16.63 | % | 3.00 | % | — | 5.25 | % | — | ||||||||||||||||||||||||
Class Y | 27.13 | % | 4.69 | % | 5.63 | % | — | — | 17.26 | % | 3.53 | % | 4.89 | % | — | — | ||||||||||||||||||||||||
S&P MidCap 400 Index3 | 27.64 | % | 4.93 | % | 6.12 | % | 6.49 | % | 9.24 | % | 17.78 | % | 3.77 | % | 5.40 | % | 6.18 | % | 8.92 | % | ||||||||||||||||||||
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 | Stocks of mid-capitalization companies may be slightly less volatile than those of small-capitalization companies, but they still involve substantial risk and may be subject to increased volatility and more price fluctuation than large-capitalization companies. |
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge of 1.00% for Class C shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
As of the most recent prospectus, the fund’s total annual operating expense ratio, before waivers and including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class C, Class R, and Class Y shares was 0.94%, 1.69%, 1.19%, and 0.69%, respectively. The advisor has contractually agreed to waive fees through February 28, 2011, so that total annual fund operating expenses not including any acquired fund fees and expenses, for Class A, Class C, Class R, and Class Y shares do not exceed 0.75%, 1.50%, 1.00%, and 0.50%, respectively. These fee waivers may be terminated at any time after February 28, 2011, at the discretion of the advisor. Prior to that time, such waivers may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Mid Cap Index Fund, Class A (NAV) | ![]() | $ | 16,834 | |||||
Mid Cap Index Fund, Class A (POP) | ![]() | $ | 15,910 | |||||
S&P MidCap 400 Index3 | ![]() | $ | 18,112 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the S&P MidCap 400 Index3.
![(MID CAP INDEX LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161102.gif)
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 were in effect during the periods indicated. 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, market value-weighted index of 400 mid-cap companies. |
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. |
8 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Small Cap Index Fund
Investment Objective: to provide investment results that correspond to the performance of the Russell 2000 Index*.
How did the fund perform for the fiscal year ended October 31, 2010?
The First American Small Cap Index Fund (the “fund”), Class Y shares, returned 26.22% for the fiscal year ended October 31, 2010 (Class A shares returned 25.91% without taking the sales charge into account). By comparison, the fund’s benchmark, the Russell 2000 Index*, returned 26.58% for the same period.
How did market conditions affect stock market performance during the fiscal year?
U.S. equities performed well during the past 12 months, continuing their rebound from the 2008-2009 drop. While the U.S. government continued its stimulative fiscal positioning, incremental monies have slowed, and these only roughly offset the contractionary effects of individual and corporate reductions in debt levels. It is in this context that the Federal Reserve Bank announced its “Quantitative Easing 2,” a program to buy up Treasury bonds which should drive investors to invest in riskier asset classes such as corporate debt and equities.
So far, investors have indeed returned to the riskier asset classes, restoring price levels in those markets. While this has helped the spirits and bottom lines of investors, the rebound in the overall economy has sputtered out, not enjoying the strength that is typical following recessions. An additional six million Americans are still out of work compared to two years ago and our country’s industrial capacity remains underutilized. This growth capacity means that demand stimulus need not be inflationary, so we expect the Fed to continue with its announced programs and possibly expand them.
The current view in Washington is substantially less inclined to driving up demand, and more supportive of protecting the long-term value of investors’ assets. While the federal budget almost certainly will continue to be in deficit for years, cutting less productive spending will be a priority. We expect the stimulus to support modest growth unless a major “austerity” mentality takes over at the Fed.
The third quarter’s strong earnings reports continued the pattern of earnings growth divergence from underlying economic performance, at least as it relates to the U.S. economy. The outperformance of corporate profits relative to the broader economy reflects continued margin expansion and productivity gains in the corporate sector. Our earnings outlook has been premature in anticipating a convergence of corporate earnings with the performance of the economy. However, with profit margins at near-record levels in the third quarter, material costs rising, and more hours worked, this will likely be a 2011 story.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Top 10 Holdings as of October 31, 20101 (% of net assets)
First American Prime Obligations Fund, Class Z | 3 | .6% | ||
U.S. Treasury Bill, 0.185%, 11/04/2010 | 1 | .4 | ||
Riverbed Technology | 0 | .3 | ||
TIBCO Software | 0 | .3 | ||
Sotheby’s Holdings, Class A | 0 | .3 | ||
VeriFone Holdings | 0 | .3 | ||
Nordson | 0 | .2 | ||
Parametric Technology | 0 | .2 | ||
Brigham Exploration | 0 | .2 | ||
Rackspace Hosting | 0 | .2 | ||
Sector Allocation as of October 31, 20101 (% of net assets)
Financials | 19 | .8% | ||
Information Technology | 18 | .0 | ||
Industrials | 14 | .7 | ||
Consumer Discretionary | 13 | .1 | ||
Healthcare | 11 | .9 | ||
Energy | 5 | .3 | ||
Materials | 5 | .3 | ||
Utilities | 3 | .0 | ||
Consumer Staples | 2 | .8 | ||
Telecommunication Services | 1 | .0 | ||
Short-Term Investments | 5 | .0 | ||
Other Assets and Liabilities, Net2 | 0 | .1 | ||
100 | .0% | |||
1 | Fund holdings and 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 and do not reflect the impact on sector allocation of holding derivative instruments, such as futures contracts. See note 2 in Notes to Financial Statements and the fund’s Schedule of Investments for derivatives held at October 31, 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 9
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Small Cap Index Fund
What will be the likely developments in the equity markets in the coming fiscal year?
Leading indicators for the U.S. economy point to a modest growth rate with very restrained price increases. On the first point, much of the rebound for the recovery so far has been from rebuilding inventories, an effect that usually retreats in importance, while growth in final demand has been very modest. On the latter point, the very high unemployment rates, together with continued increases in productivity and a still-increasing ability to offshore many high-cost jobs, has resulted in declining labor costs per unit of output. Corporate profits are alone in having shown the “V-shaped” recovery pattern that some had hoped for the whole economy.
In a climate of modest growth but favorable price and profit drivers, equities should be able to gain, although we do not expect the rate of change that we have had in the rebound from the recession. In terms of policy uncertainties, investors will be watching the mix of fiscal and monetary stimulus carefully for signs that might favor a resurgence in consumer sentiment and spending. Given that mortgages are the largest single asset on most banks’ balance sheets and that homes are the largest source of net wealth for many Americans, the recovery of home prices will be key in spending and borrowing decisions. This, in turn, will show up in demand for discretionary goods.
At this writing, international trade levels are continuing to improve, which will help U.S. firms oriented to exports. Much of the trade increase is expected in emerging markets that are positioned to continue their high growth rates. In contrast, Europe has a couple of strong economies; however, peripheral Europe is still struggling to deal with high debt levels without the flexibility enjoyed by policymakers in the United States. That may give the United States an edge in capturing the growth in 2011 and beyond.
Fund overview
The fund is invested to replicate the Russell 2000 Index* as closely as possible with consideration given to turnover costs and fees. As a result, the fund performed very similarly to the index. The index includes the traded shares of U.S. companies ranked 1,001 through 3,000 in size, thereby skipping large- and mid-capitalization names in the list of investable companies.
The three best-performing sectors for the fiscal year were materials, information technology, and consumer discretionary, which were up 39%, 36%, and 29% respectively. The three lowest-performing sectors were healthcare, financials, and telecommunication services, which gained 19%, 20%, and 21% respectively.
The Frank Russell Company, which sponsors the index, re-computes the overall U.S. stock rankings in the middle of each summer. As a result, Russell 2000 companies that have had sharply better returns than their peers, or Russell 1000 companies that have lagged since the prior reconstitution, shift from one index to the other in the process. Although turnover is controlled somewhat, the Russell 2000 Index* maintains a distinct small-company focus in this way, with smaller firms joining to replace the companies that graduate to the Russell 1000. Typically, due to mergers, acquisitions, or re-incorporating outside of the United States, the list of Russell 1000 companies shrinks enough by reconstitution that relatively few less-successful firms are demoted into the Russell 2000.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
10 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Annual Performance1,2
October 31, 2010 | September 30, 2010* | |||||||||||||||||||||||||||||||
Since | Since | |||||||||||||||||||||||||||||||
Inception | Inception | |||||||||||||||||||||||||||||||
1 year | 5 years | 10 years | 9/24/2001 | 1 year | 5 years | 10 years | 9/24/2001 | |||||||||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||||||||||
Class A | 18.98 | % | 1.49 | % | 4.13 | % | — | 6.63 | % | 0.06 | % | 3.77 | % | — | ||||||||||||||||||
Class C | 23.93 | % | 1.88 | % | — | 6.23 | % | 10.98 | % | 0.44 | % | — | 5.84 | % | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||||||||||
Class A | 25.91 | % | 2.64 | % | 4.72 | % | — | 12.79 | % | 1.20 | % | 4.36 | % | — | ||||||||||||||||||
Class C | 24.93 | % | 1.88 | % | — | 6.23 | % | 11.98 | % | 0.44 | % | — | 5.84 | % | ||||||||||||||||||
Class R | 25.55 | % | 2.39 | % | 4.49 | % | — | 12.45 | % | 0.94 | % | 4.14 | % | — | ||||||||||||||||||
Class Y | 26.22 | % | 2.89 | % | 4.94 | % | — | 13.09 | % | 1.45 | % | 4.58 | % | — | ||||||||||||||||||
Russell 2000 Index3 | 26.58 | % | 3.07 | % | 4.89 | % | 7.98 | % | 13.35 | % | 1.60 | % | 4.00 | % | 7.58 | % | ||||||||||||||||
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 | Stocks of small-capitalization companies involve substantial risk. These stocks historically have experienced greater price volatility than stocks of larger companies, and they may be expected to do so in the future. |
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 the maximum sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge of 1.00% for Class C shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.
As of the most recent prospectus, the fund’s total annual operating expense ratio, before waivers and including the expenses of other investment companies in which the fund invests, if any (“acquired fund fees and expenses”), for Class A, Class C, Class R, and Class Y shares was 1.71%, 2.46%, 1.96%, and 1.46%, respectively. The advisor has contractually agreed to waive fees through February 28, 2011, so that total annual fund operating expenses, not including any acquired fund fees and expenses, for Class A, Class C, Class R, and Class Y shares do not exceed 0.83%, 1.58%, 1.08%, and 1.58%, respectively. These fee waivers may be terminated at any time after February 28, 2011, at the discretion of the advisor. Prior to that time, such waivers may not be terminated without the approval of the fund’s board of directors. |
* | This table represents average annual total returns through the latest calendar quarter – rather than through the end of the fiscal period. |
Value of $10,000 Investment 1,2,4 as of October 31, 2010
Small Cap Index Fund, Class A (NAV) | ![]() | $ | 15,855 | |||||
Small Cap Index Fund, Class A (POP) | ![]() | $ | 14,985 | |||||
Russell 2000 Index3 | ![]() | $ | 16,121 | |||||
This chart illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 10/31/2000 to 10/31/2010) as compared to the Russell 2000 Index3.
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616c6161103.gif)
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 were in effect during the periods indicated. 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. |
On September 24, 2001, the Small Cap Index Fund became the successor by merger to the Firstar Small Cap Index 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 Small Cap Index Fund. The Firstar Small Cap Index Fund was organized on December 11, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. | |
3 | An unmanaged index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. |
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
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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 May 1, 2010 to October 31, 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 the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of 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.
Equity Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,004.50 | $ | 3.08 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.13 | $ | 3.11 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,001.00 | $ | 6.86 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,000.70 | $ | 6.86 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,003.70 | $ | 4.34 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.87 | $ | 4.38 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,005.80 | $ | 1.82 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.39 | $ | 1.84 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.61%, 1.36%, 1.36%, 0.86%, and 0.36% 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 October 31, 2010 of 0.45%, 0.10%, 0.07%, 0.37%, and 0.58% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
12 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Mid Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,011.80 | $ | 3.75 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.48 | $ | 3.77 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,008.60 | $ | 7.54 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.69 | $ | 7.58 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,010.20 | $ | 5.02 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,013.50 | $ | 2.49 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.74 | $ | 2.50 | ||||||
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.74%, 1.49%, 0.99%, and 0.49% 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 October 31, 2010 of 1.18%, 0.86%, 1.02%, and 1.35% for Class A, Class C, Class R, and Class Y, respectively. |
Small Cap Index Fund
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period3 (5/01/10 to | ||||||||||
Value (5/01/10) | Value (10/31/10) | 10/31/10) | ||||||||||
Class A Actual4 | $ | 1,000.00 | $ | 985.10 | $ | 3.80 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | ||||||
Class C Actual4 | $ | 1,000.00 | $ | 981.40 | $ | 7.54 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | ||||||
Class R Actual4 | $ | 1,000.00 | $ | 983.70 | $ | 5.05 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | ||||||
Class Y Actual4 | $ | 1,000.00 | $ | 986.10 | $ | 2.55 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.63 | $ | 2.60 | ||||||
3 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.76%, 1.51%, 1.01%, and 0.51% 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 October 31, 2010 of -1.49%, -1.86%, -1.63%, and -1.39% for Class A, Class C, Class R, and Class Y, respectively. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 13
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14 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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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 of the Equity Index, Mid Cap Index, and Small Cap Index Funds (series of First American Investment Funds, Inc) (collectively, the “funds”), including the schedule of investments, as of October 31, 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 October 31, 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 October 31, 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.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950123-10-117520/c61616ernstyo.gif)
Minneapolis, Minnesota
December 23, 2010
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 15
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Equity Index Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 95.1% | ||||||||
Consumer Discretionary – 10.2% | ||||||||
Abercrombie & Fitch, Class A | 7,025 | $ | 301 | |||||
Amazon.com 6 = | 28,183 | 4,654 | ||||||
Apollo Group, Class A = | 9,880 | 370 | ||||||
AutoNation 6 = | 7,099 | 165 | ||||||
AutoZone = | 2,510 | 596 | ||||||
Bed Bath & Beyond 6 = | 21,807 | 957 | ||||||
Best Buy | 27,551 | 1,184 | ||||||
Big Lots = | 7,113 | 223 | ||||||
CarMax 6 = | 11,726 | 363 | ||||||
Carnival 6 | 34,477 | 1,488 | ||||||
CBS, Class B 6 | 56,117 | 950 | ||||||
Coach | 24,299 | 1,215 | ||||||
Comcast, Class A 6 | 224,712 | 4,625 | ||||||
D.R. Horton 6 | 22,046 | 230 | ||||||
Darden Restaurants | 11,196 | 512 | ||||||
DeVry 6 | 5,408 | 259 | ||||||
DIRECTV, Class A = | 72,377 | 3,146 | ||||||
Discovery Communications, Class A 6 = | 23,379 | 1,043 | ||||||
Eastman Kodak 6 = | 21,397 | 101 | ||||||
Expedia | 16,514 | 478 | ||||||
Family Dollar Stores 6 | 10,436 | 482 | ||||||
Ford Motor 6 = | 273,982 | 3,872 | ||||||
Fortune Brands | 12,131 | 656 | ||||||
GameStop, Class A 6 = | 12,171 | 239 | ||||||
Gannett 6 | 21,468 | 254 | ||||||
Gap | 35,751 | 680 | ||||||
Genuine Parts 6 | 12,647 | 605 | ||||||
Goodyear Tire & Rubber = | 20,344 | 208 | ||||||
H&R Block | 26,219 | 309 | ||||||
Harley-Davidson | 18,752 | 575 | ||||||
Harman International Industries = | 5,537 | 186 | ||||||
Hasbro | 10,426 | 482 | ||||||
Home Depot | 133,823 | 4,132 | ||||||
International Game Technology | 23,741 | 370 | ||||||
Interpublic Group of Companies 6 = | 38,968 | 403 | ||||||
J.C. Penney | 18,813 | 587 | ||||||
Johnson Controls 6 | 53,574 | 1,881 | ||||||
Kohl’s = | 24,522 | 1,256 | ||||||
Leggett & Platt | 11,793 | 240 | ||||||
Lennar, Class A 6 | 12,960 | 188 | ||||||
Limited Brands | 21,495 | 632 | ||||||
Lowe’s | 113,820 | 2,428 | ||||||
Macy’s 6 | 33,616 | 795 | ||||||
Marriott International, Class A 6 | 20,887 | 774 | ||||||
Mattel 6 | 29,047 | 678 | ||||||
McDonald’s | 85,640 | 6,661 | ||||||
McGraw-Hill 6 | 27,095 | 1,020 | ||||||
New York Times, Class A 6 = | 10,013 | 77 | ||||||
Newell Rubbermaid | 22,155 | 391 | ||||||
News, Class A | 179,491 | 2,595 | ||||||
Nike, Class B 6 | 30,945 | 2,520 | ||||||
Nordstrom 6 | 13,260 | 511 | ||||||
Office Depot = | 21,940 | 99 | ||||||
Omnicom Group | 24,445 | 1,075 | ||||||
O’Reilly Automotive 6 = | 9,877 | 578 | ||||||
Polo Ralph Lauren 6 | 4,924 | 477 | ||||||
Priceline.com 6 = | 3,855 | 1,453 | ||||||
Pulte Group 6 = | 26,817 | 211 | ||||||
RadioShack | 9,985 | 201 | ||||||
Ross Stores | 9,595 | 566 | ||||||
Scripps Networks Interactive, Class A | 6,326 | 322 | ||||||
Sears Holdings 6 = | 4,117 | 296 | ||||||
Sherwin-Williams | 7,340 | 536 | ||||||
Stanley Black & Decker | 12,773 | 791 | ||||||
Staples 6 | 58,130 | 1,190 | ||||||
Starbucks | 59,339 | 1,690 | ||||||
Starwood Hotels & Resorts Worldwide 6 | 15,146 | 820 | ||||||
Target | 58,498 | 3,037 | ||||||
Tiffany & Company 6 | 10,838 | 574 | ||||||
Time Warner | 90,765 | 2,951 | ||||||
Time Warner Cable 6 | 29,319 | 1,697 | ||||||
TJX | 32,347 | 1,484 | ||||||
Urban Outfitters 6 = | 9,216 | 284 | ||||||
VF 6 | 7,015 | 584 | ||||||
Viacom, Class B | 48,372 | 1,867 | ||||||
Walt Disney 6 | 155,978 | 5,631 | ||||||
Washington Post, Class B 6 | 110 | 44 | ||||||
Whirlpool | 5,982 | 454 | ||||||
Wyndham Worldwide 6 | 14,333 | 412 | ||||||
Wynn Resorts | 6,002 | 643 | ||||||
Yum! Brands | 37,226 | 1,845 | ||||||
91,359 | ||||||||
Consumer Staples – 10.6% | ||||||||
Altria Group | 164,654 | 4,186 | ||||||
Archer-Daniels-Midland | 51,212 | 1,706 | ||||||
Avon Products | 34,118 | 1,039 | ||||||
Brown-Forman, Class B 6 | 8,475 | 515 | ||||||
Campbell Soup 6 | 15,158 | 549 | ||||||
Clorox | 11,217 | 746 | ||||||
Coca-Cola 6 | 183,731 | 11,267 | ||||||
Coca-Cola Enterprises | 25,904 | 622 | ||||||
Colgate-Palmolive | 39,060 | 3,012 | ||||||
ConAgra Foods | 35,484 | 798 | ||||||
Constellation Brands, Class A 6 = | 15,276 | 301 | ||||||
Costco Wholesale | 34,981 | 2,196 | ||||||
CVS Caremark | 108,379 | 3,264 | ||||||
Dean Foods = | 14,455 | 150 | ||||||
Dr. Pepper Snapple Group 6 | 19,567 | 715 | ||||||
Estee Lauder, Class A | 9,412 | 670 | ||||||
General Mills | 52,845 | 1,984 | ||||||
H.J. Heinz | 25,185 | 1,237 | ||||||
Hershey | 13,211 | 654 | ||||||
Hormel Foods | 4,374 | 201 | ||||||
JM Smucker | 10,852 | 698 | ||||||
Kellogg 6 | 20,327 | 1,022 | ||||||
Kimberly-Clark | 32,785 | 2,077 | ||||||
Kraft Foods, Class A 6 | 138,831 | 4,480 | ||||||
Kroger | 51,125 | 1,125 | ||||||
Lorillard | 12,081 | 1,031 | ||||||
McCormick | 11,860 | 524 | ||||||
Mead Johnson Nutrition 6 | 13,957 | 821 | ||||||
Molson Coors Brewing, Class B | 12,566 | 593 | ||||||
PepsiCo | 127,220 | 8,308 | ||||||
Philip Morris International | 145,945 | 8,537 | ||||||
Procter & Gamble | 228,692 | 14,538 | ||||||
Reynolds American | 13,463 | 874 | ||||||
Safeway 6 | 31,481 | 721 | ||||||
Sara Lee | 52,663 | 755 | ||||||
SUPERVALU 6 | 16,957 | 183 | ||||||
Sysco | 47,113 | 1,388 | ||||||
Tyson Foods, Class A 6 | 24,317 | 378 | ||||||
Walgreen | 77,921 | 2,640 | ||||||
Wal-Mart Stores | 159,331 | 8,631 | ||||||
Whole Foods Market 6 = | 12,739 | 506 | ||||||
95,642 | ||||||||
Energy – 10.5% | ||||||||
Anadarko Petroleum | 39,401 | 2,426 | ||||||
Apache 6 | 27,104 | 2,738 | ||||||
Baker Hughes | 34,341 | 1,591 |
The accompanying notes are an integral part of the financial statements.
16 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Cabot Oil & Gas 6 | 9,342 | $ | 271 | |||||
Cameron International 6 = | 19,448 | 851 | ||||||
Chesapeake Energy | 51,838 | 1,125 | ||||||
Chevron | 159,967 | 13,215 | ||||||
ConocoPhillips | 118,528 | 7,041 | ||||||
CONSOL Energy | 17,976 | 661 | ||||||
Denbury Resources 6 = | 31,806 | 541 | ||||||
Devon Energy | 35,591 | 2,314 | ||||||
Diamond Offshore Drilling | 5,535 | 366 | ||||||
El Paso | 56,045 | 743 | ||||||
EOG Resources | 20,161 | 1,930 | ||||||
Exxon Mobil | 407,124 | 27,061 | ||||||
FMC Technologies 6 = | 9,848 | 710 | ||||||
Halliburton | 72,362 | 2,305 | ||||||
Helmerich & Payne | 8,648 | 370 | ||||||
Hess | 23,272 | 1,467 | ||||||
Marathon Oil | 56,504 | 2,010 | ||||||
Massey Energy | 8,200 | 345 | ||||||
Murphy Oil | 15,858 | 1,033 | ||||||
Nabors Industries = | 22,713 | 475 | ||||||
National Oilwell Varco | 33,371 | 1,794 | ||||||
Noble Energy | 13,906 | 1,133 | ||||||
Occidental Petroleum | 64,680 | 5,086 | ||||||
Peabody Energy | 21,407 | 1,132 | ||||||
Pioneer Natural Resources 6 | 9,232 | 644 | ||||||
QEP Resources 6 | 13,945 | 461 | ||||||
Range Resources | 12,696 | 475 | ||||||
Rowan 6 = | 9,112 | 300 | ||||||
Schlumberger | 108,780 | 7,603 | ||||||
Southwestern Energy 6 = | 27,570 | 933 | ||||||
Spectra Energy | 52,596 | 1,250 | ||||||
Sunoco | 10,527 | 394 | ||||||
Tesoro 6 | 11,247 | 146 | ||||||
Valero Energy | 45,106 | 810 | ||||||
Williams | 46,531 | 1,001 | ||||||
94,751 | ||||||||
Financials – 14.5% | ||||||||
ACE | 21,048 | 1,251 | ||||||
Aflac | 37,395 | 2,090 | ||||||
Allstate | 42,838 | 1,306 | ||||||
American Express | 90,693 | 3,761 | ||||||
American International Group 6 = | 10,756 | 452 | ||||||
Ameriprise Financial | 20,369 | 1,053 | ||||||
AON | 21,117 | 839 | �� | |||||
Apartment Investment & Management, Class A – REIT | 9,304 | 217 | ||||||
Assurant | 8,634 | 341 | ||||||
AvalonBay Communities – REIT | 6,784 | 721 | ||||||
Bank of America | 799,015 | 9,141 | ||||||
Bank of New York Mellon | 96,598 | 2,421 | ||||||
BB&T 6 | 55,118 | 1,290 | ||||||
Berkshire Hathaway, Class B 6 = | 131,884 | 10,494 | ||||||
Boston Properties – REIT | 11,072 | 954 | ||||||
Capital One Financial | 36,358 | 1,355 | ||||||
CB Richard Ellis Group = | 23,070 | 423 | ||||||
Charles Schwab 6 | 77,941 | 1,200 | ||||||
Chubb 6 | 26,024 | 1,510 | ||||||
Cincinnati Financial 6 | 12,980 | 382 | ||||||
Citigroup 6 = | 2,030,214 | 8,466 | ||||||
CME Group | 5,231 | 1,515 | ||||||
Comerica | 14,043 | 502 | ||||||
Discover Financial Services | 43,310 | 764 | ||||||
E *TRADE Financial = | 15,818 | 226 | ||||||
Equity Residential Properties Trust – REIT | 22,580 | 1,098 | ||||||
Federated Investors, Class B 6 | 7,070 | 176 | ||||||
Fifth Third Bancorp 6 | 63,299 | 795 | ||||||
First Horizon National = | 15,975 | 161 | ||||||
Franklin Resources | 11,769 | 1,350 | ||||||
Genworth Financial, Class A = | 39,610 | 449 | ||||||
Goldman Sachs Group 6 | 41,057 | 6,607 | ||||||
Hartford Financial Services Group | 35,368 | 848 | ||||||
HCP – REIT | 24,701 | 889 | ||||||
Health Care – REIT 6 | 8,504 | 435 | ||||||
Host Hotels & Resorts – REIT | 52,418 | 833 | ||||||
Hudson City Bancorp | 37,744 | 440 | ||||||
Huntington Bancshares 6 | 57,068 | 324 | ||||||
IntercontinentalExchange = | 5,889 | 676 | ||||||
Invesco 6 | 37,231 | 856 | ||||||
Janus Capital Group 6 | 14,632 | 155 | ||||||
JPMorgan Chase | 316,860 | 11,924 | ||||||
KeyCorp | 70,015 | 573 | ||||||
Kimco Realty – REIT 6 | 32,303 | 557 | ||||||
Legg Mason | 13,113 | 407 | ||||||
Leucadia National = | 15,114 | 384 | ||||||
Lincoln National | 25,232 | 618 | ||||||
Loew’s 6 | 27,996 | 1,105 | ||||||
M&T Bank 6 | 6,627 | 495 | ||||||
Marsh & McLennan | 43,103 | 1,077 | ||||||
Marshall & Ilsley | 41,989 | 248 | ||||||
MetLife 6 | 72,229 | 2,913 | ||||||
Moody’s 6 | 15,666 | 424 | ||||||
Morgan Stanley | 111,321 | 2,769 | ||||||
NASDAQ OMX Group 6 = | 12,375 | 260 | ||||||
Northern Trust | 19,260 | 956 | ||||||
NYSE Euronext | 20,786 | 637 | ||||||
Peoples United Financial | 28,592 | 352 | ||||||
Plum Creek Timber – REIT 6 | 12,979 | 478 | ||||||
PNC Financial Services Group | 41,894 | 2,258 | ||||||
Principal Financial Group | 25,463 | 683 | ||||||
Progressive | 53,391 | 1,130 | ||||||
ProLogis – REIT 6 | 40,897 | 558 | ||||||
Prudential Financial 6 | 37,112 | 1,951 | ||||||
Public Storage – REIT | 10,820 | 1,074 | ||||||
Regions Financial 6 | 99,461 | 627 | ||||||
Simon Property Group – REIT | 23,308 | 2,238 | ||||||
SLM = | 38,685 | 460 | ||||||
State Street | 39,956 | 1,669 | ||||||
SunTrust Banks | 39,810 | 996 | ||||||
T. Rowe Price Group 6 | 20,671 | 1,142 | ||||||
Torchmark 6 | 6,536 | 374 | ||||||
Travelers | 39,448 | 2,178 | ||||||
U.S. Bancorp ◖ | 152,660 | 3,692 | ||||||
Unum Group | 26,505 | 594 | ||||||
Ventas – REIT | 13,553 | 726 | ||||||
Vornado Realty Trust – REIT | 12,924 | 1,129 | ||||||
Wells Fargo | 414,932 | 10,822 | ||||||
XL Group | 27,244 | 576 | ||||||
Zions Bancorporation 6 | 12,763 | 264 | ||||||
130,084 | ||||||||
Healthcare – 10.9% | ||||||||
Abbott Laboratories | 122,929 | 6,309 | ||||||
Aetna | 33,839 | 1,010 | ||||||
Allergan | 24,490 | 1,773 | ||||||
AmerisourceBergen | 22,499 | 738 | ||||||
Amgen = | 76,290 | 4,364 | ||||||
Baxter International | 46,552 | 2,370 | ||||||
Becton, Dickinson & Company | 18,582 | 1,403 | ||||||
Biogen Idec 6 = | 20,012 | 1,255 | ||||||
Boston Scientific = | 120,758 | 770 | ||||||
Bristol-Myers Squibb | 136,953 | 3,684 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 17
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
C.R. Bard | 7,573 | $ | 629 | |||||
Cardinal Health | 28,836 | 1,000 | ||||||
CareFusion = | 15,260 | 368 | ||||||
Celgene = | 36,703 | 2,278 | ||||||
Cephalon 6 = | 5,989 | 398 | ||||||
Cerner 6 = | 2,808 | 247 | ||||||
CIGNA | 22,034 | 775 | ||||||
Coventry Health Care 6 = | 11,782 | 276 | ||||||
DaVita = | 8,799 | 631 | ||||||
DENTSPLY International | 9,822 | 308 | ||||||
Eli Lilly | 80,539 | 2,835 | ||||||
Express Scripts = | 43,649 | 2,119 | ||||||
Forest Laboratories = | 23,140 | 765 | ||||||
Genzyme = | 21,135 | 1,524 | ||||||
Gilead Sciences = | 66,806 | 2,650 | ||||||
Hospira = | 13,211 | 786 | ||||||
Humana = | 13,555 | 790 | ||||||
Intuitive Surgical = | 3,176 | 835 | ||||||
Johnson & Johnson | 219,423 | 13,970 | ||||||
King Pharmaceuticals = | 19,881 | 281 | ||||||
Laboratory Corporation of America 6 = | 8,186 | 666 | ||||||
Life Technologies = | 14,721 | 739 | ||||||
McKesson | 20,827 | 1,374 | ||||||
Medco Health Solutions = | 34,826 | 1,830 | ||||||
Medtronic | 87,726 | 3,090 | ||||||
Merck | 245,164 | 8,895 | ||||||
Mylan 6 = | 24,596 | 500 | ||||||
Patterson Companies | 7,651 | 212 | ||||||
PerkinElmer | 9,383 | 220 | ||||||
Pfizer | 640,933 | 11,152 | ||||||
Quest Diagnostics | 11,972 | 588 | ||||||
St. Jude Medical = | 26,024 | 997 | ||||||
Stryker 6 | 22,118 | 1,095 | ||||||
Tenet Healthcare = | 37,267 | 162 | ||||||
Thermo Fisher Scientific = | 32,684 | 1,680 | ||||||
UnitedHealth Group | 90,524 | 3,264 | ||||||
Varian Medical Systems = | 9,838 | 622 | ||||||
Waters = | 8,015 | 594 | ||||||
Watson Pharmaceuticals = | 8,531 | 398 | ||||||
WellPoint = | 31,844 | 1,730 | ||||||
Zimmer Holdings = | 16,152 | 766 | ||||||
97,715 | ||||||||
Industrials – 10.2% | ||||||||
3M | 56,788 | 4,783 | ||||||
Avery Dennison | 8,795 | 320 | ||||||
Boeing | 60,449 | 4,270 | ||||||
C.H. Robinson Worldwide 6 | 13,212 | 931 | ||||||
Caterpillar | 49,994 | 3,929 | ||||||
Cintas 6 | 10,471 | 288 | ||||||
CSX | 30,997 | 1,905 | ||||||
Cummins | 15,975 | 1,407 | ||||||
Danaher | 41,885 | 1,816 | ||||||
Deere & Company | 33,833 | 2,598 | ||||||
Dover | 13,819 | 734 | ||||||
Dun & Bradstreet 6 | 4,404 | 328 | ||||||
Eaton | 12,616 | 1,121 | ||||||
Emerson Electric 6 | 59,982 | 3,293 | ||||||
Equifax | 11,403 | 378 | ||||||
Expeditors International of Washington 6 | 16,955 | 837 | ||||||
Fastenal 6 | 11,293 | 581 | ||||||
FedEx | 24,943 | 2,188 | ||||||
First Solar 6 = | 4,291 | 591 | ||||||
Flowserve | 4,465 | 447 | ||||||
Fluor | 14,235 | 687 | ||||||
General Dynamics | 30,720 | 2,093 | ||||||
General Electric | 850,270 | 13,621 | ||||||
Goodrich | 9,970 | 818 | ||||||
Honeywell International | 61,019 | 2,875 | ||||||
Illinois Tool Works | 31,407 | 1,435 | ||||||
Iron Mountain | 15,595 | 340 | ||||||
ITT | 14,613 | 690 | ||||||
Jacobs Engineering Group = | 9,956 | 384 | ||||||
L-3 Communications Holdings | 9,217 | 665 | ||||||
Lockheed Martin | 24,165 | 1,723 | ||||||
Masco | 28,566 | 305 | ||||||
Norfolk Southern | 29,470 | 1,812 | ||||||
Northrop Grumman 6 | 23,987 | 1,516 | ||||||
Paccar 6 | 29,060 | 1,490 | ||||||
Pall | 9,310 | 397 | ||||||
Parker Hannifin | 12,824 | 982 | ||||||
Pitney Bowes 6 | 14,345 | 315 | ||||||
Precision Castparts | 11,324 | 1,547 | ||||||
Quanta Services 6 = | 16,798 | 330 | ||||||
R.R. Donnelley & Sons 6 | 19,619 | 362 | ||||||
Raytheon | 30,238 | 1,393 | ||||||
Republic Services | 25,848 | 770 | ||||||
Robert Half International | 11,948 | 324 | ||||||
Rockwell Automation | 11,356 | 708 | ||||||
Rockwell Collins | 12,535 | 758 | ||||||
Roper Industries | 6,892 | 479 | ||||||
Ryder System 6 | 4,220 | 185 | ||||||
Snap-On | 4,605 | 235 | ||||||
Southwest Airlines | 59,287 | 816 | ||||||
Stericycle 6 = | 6,739 | 483 | ||||||
Textron 6 | 21,766 | 453 | ||||||
Tyco International | 30,063 | 1,151 | ||||||
Union Pacific | 40,307 | 3,534 | ||||||
United Parcel Service, Class B 6 | 78,881 | 5,312 | ||||||
United Technologies | 74,309 | 5,555 | ||||||
W.W. Grainger | 4,935 | 612 | ||||||
Waste Management | 38,173 | 1,363 | ||||||
91,263 | ||||||||
Information Technology – 18.3% | ||||||||
Adobe Systems = | 41,924 | 1,180 | ||||||
Advanced Micro Devices = | 45,047 | 330 | ||||||
Agilent Technologies = | 27,720 | 965 | ||||||
Akamai Technologies = | 14,467 | 748 | ||||||
Altera | 24,023 | 750 | ||||||
Amphenol, Class A 6 | 13,821 | 693 | ||||||
Analog Devices 6 | 23,730 | 799 | ||||||
Apple = | 72,466 | 21,804 | ||||||
Applied Materials | 106,976 | 1,322 | ||||||
Autodesk = | 18,275 | 661 | ||||||
Automatic Data Processing | 40,058 | 1,779 | ||||||
BMC Software = | 14,457 | 657 | ||||||
Broadcom, Class A 6 | 34,394 | 1,401 | ||||||
CA | 31,103 | 722 | ||||||
Cisco Systems = | 454,832 | 10,384 | ||||||
Citrix Systems = | 14,792 | 948 | ||||||
Cognizant Technology Solutions, Class A = | 25,608 | 1,669 | ||||||
Computer Sciences | 13,221 | 648 | ||||||
Compuware = | 17,920 | 179 | ||||||
Corning | 124,298 | 2,272 | ||||||
Dell 6 = | 137,230 | 1,973 | ||||||
eBay = | 90,555 | 2,699 | ||||||
Electronic Arts = | 26,108 | 414 | ||||||
EMC 6 = | 163,707 | 3,439 | ||||||
Fidelity National Information Services | 10,191 | 276 | ||||||
Fiserv = | 14,307 | 780 | ||||||
FLIR Systems 6 = | 12,944 | 360 |
The accompanying notes are an integral part of the financial statements.
18 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Google, Class A = | 19,448 | $ | 11,921 | |||||
Harris | 10,813 | 489 | ||||||
Hewlett-Packard | 185,527 | 7,803 | ||||||
IBM | 100,475 | 14,429 | ||||||
Intel | 443,113 | 8,894 | ||||||
Intuit = | 26,338 | 1,264 | ||||||
Jabil Circuit | 15,430 | 237 | ||||||
JDS Uniphase 6 = | 20,385 | 214 | ||||||
Juniper Networks 6 = | 41,902 | 1,357 | ||||||
KLA-Tencor | 13,539 | 484 | ||||||
Lexmark International, Class A = | 6,251 | 238 | ||||||
Linear Technology | 17,850 | 575 | ||||||
LSI Logic = | 52,054 | 273 | ||||||
MasterCard, Class A | 7,710 | 1,851 | ||||||
McAfee = | 12,425 | 588 | ||||||
MEMC Electronic Materials = | 18,111 | 232 | ||||||
Microchip Technology 6 | 14,776 | 475 | ||||||
Micron Technology 6 = | 68,034 | 563 | ||||||
Microsoft | 607,212 | 16,177 | ||||||
Molex 6 | 10,810 | 219 | ||||||
Monster Worldwide 6 = | 10,044 | 181 | ||||||
Motorola = | 185,088 | 1,508 | ||||||
National Semiconductor | 18,151 | 249 | ||||||
NetApp = | 27,447 | 1,462 | ||||||
Novell = | 27,863 | 165 | ||||||
Novellus Systems 6 = | 7,471 | 218 | ||||||
NVIDIA 6 = | 45,570 | 548 | ||||||
Oracle | 311,778 | 9,167 | ||||||
Paychex | 25,760 | 714 | ||||||
QLogic 6 = | 10,538 | 185 | ||||||
QUALCOMM | 130,637 | 5,896 | ||||||
Red Hat = | 13,987 | 591 | ||||||
SAIC = | 23,302 | 362 | ||||||
Salesforce.com = | 9,012 | 1,046 | ||||||
SanDisk = | 18,315 | 688 | ||||||
Symantec = | 63,622 | 1,029 | ||||||
Tellabs | 30,682 | 209 | ||||||
Teradata = | 14,349 | 565 | ||||||
Teradyne 6 = | 14,355 | 161 | ||||||
Texas Instruments | 97,337 | 2,878 | ||||||
Total System Services | 10,682 | 167 | ||||||
VeriSign = | 14,534 | 505 | ||||||
Visa, Class A 6 | 38,606 | 3,019 | ||||||
Western Digital = | 18,251 | 584 | ||||||
Western Union | 53,530 | 942 | ||||||
Xerox | 109,825 | 1,285 | ||||||
Xilinx | 21,809 | 585 | ||||||
Yahoo! 6 = | 95,210 | 1,572 | ||||||
164,616 | ||||||||
Materials – 3.5% | ||||||||
Air Products & Chemicals | 18,056 | 1,534 | ||||||
Airgas | 6,647 | 471 | ||||||
AK Steel | 8,752 | 110 | ||||||
Alcoa | 81,313 | 1,068 | ||||||
Allegheny Technologies 6 | 7,847 | 413 | ||||||
Ball | 7,354 | 474 | ||||||
Bemis | 8,685 | 276 | ||||||
CF Industries Holdings | 5,097 | 625 | ||||||
Cliffs Natural Resources 6 | 10,786 | 703 | ||||||
Dow Chemical | 91,976 | 2,836 | ||||||
E.I. Du Pont de Nemours | 72,157 | 3,411 | ||||||
Eastman Chemical | 6,490 | 510 | ||||||
Ecolab | 16,649 | 821 | ||||||
FMC | 5,449 | 398 | ||||||
Freeport-McMoRan Copper & Gold | 37,569 | 3,558 | ||||||
International Flavors & Fragrances 6 | 5,894 | 296 | ||||||
International Paper | 34,770 | 878 | ||||||
MeadWestvaco | 13,976 | 360 | ||||||
Monsanto | 43,448 | 2,582 | ||||||
Newmont Mining | 39,233 | 2,388 | ||||||
Nucor 6 | 25,096 | 959 | ||||||
Owens-Illinois = | 13,137 | 368 | ||||||
Pactiv = | 10,584 | 351 | ||||||
PPG Industries | 13,246 | 1,016 | ||||||
Praxair | 24,365 | 2,225 | ||||||
Sealed Air | 12,700 | 294 | ||||||
Sigma-Aldrich | 9,981 | 633 | ||||||
Titanium Metals 6 = | 7,176 | 141 | ||||||
United States Steel | 11,418 | 489 | ||||||
Vulcan Materials | 10,169 | 371 | ||||||
Weyerhaeuser | 41,173 | 668 | ||||||
31,227 | ||||||||
Telecommunication Services – 3.0% | ||||||||
American Tower, Class A = | 32,145 | 1,659 | ||||||
AT&T | 470,587 | 13,412 | ||||||
CenturyTel 6 | 23,925 | 990 | ||||||
Frontier Communications 6 | 78,912 | 693 | ||||||
MetroPCS Communications 6 = | 22,513 | 234 | ||||||
Qwest Communications International 6 | 118,914 | 785 | ||||||
Sprint Nextel = | 237,406 | 978 | ||||||
Verizon Communications | 225,119 | 7,310 | ||||||
Windstream 6 | 38,474 | 487 | ||||||
26,548 | ||||||||
Utilities – 3.4% | ||||||||
AES = | 60,189 | 719 | ||||||
Allegheny Energy | 13,505 | 313 | ||||||
Ameren 6 | 19,213 | 557 | ||||||
American Electric Power | 38,359 | 1,436 | ||||||
CenterPoint Energy | 32,511 | 538 | ||||||
CMS Energy | 18,309 | 337 | ||||||
Consolidated Edison 6 | 22,456 | 1,117 | ||||||
Constellation Energy Group | 16,061 | 486 | ||||||
Dominion Resources | 47,470 | 2,063 | ||||||
DTE Energy | 14,569 | 681 | ||||||
Duke Energy 6 | 104,578 | 1,904 | ||||||
Edison International | 25,947 | 957 | ||||||
Entergy | 15,076 | 1,124 | ||||||
EQT | 12,044 | 451 | ||||||
Exelon | 52,608 | 2,147 | ||||||
FirstEnergy | 24,277 | 882 | ||||||
Integrys Energy Group | 6,479 | 345 | ||||||
NextEra Energy 6 | 33,025 | 1,818 | ||||||
Nicor | 3,605 | 172 | ||||||
NiSource | 24,709 | 428 | ||||||
Northeast Utilities | 14,450 | 452 | ||||||
NRG Energy 6 = | 19,462 | 387 | ||||||
ONEOK | 3,934 | 196 | ||||||
Pepco Holdings 6 | 18,933 | 365 | ||||||
PG&E | 29,653 | 1,418 | ||||||
Pinnacle West Capital | 8,968 | 369 | ||||||
PPL | 32,629 | 878 | ||||||
Progress Energy 6 | 22,871 | 1,029 | ||||||
Public Service Enterprise Group | 40,293 | 1,303 | ||||||
SCANA | 8,115 | 331 | ||||||
Sempra Energy | 19,714 | 1,054 | ||||||
Southern | 65,665 | 2,486 | ||||||
TECO Energy | 18,857 | 332 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 19
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Equity Index Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | FAIR VALUE > | ||||||
Wisconsin Energy | 9,316 | $ | 555 | |||||
Xcel Energy | 36,599 | 873 | ||||||
30,503 | ||||||||
Total Common Stocks | ||||||||
(Cost $574,558) | 853,708 | |||||||
Short-Term Investments – 4.9% | ||||||||
Money Market Fund – 4.2% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | 37,707,427 | 37,707 | ||||||
U.S. Treasury Obligation – 0.7% | ||||||||
U.S. Treasury Bill | ||||||||
0.169%, 11/04/2010 o | $ | 6,400 | 6,400 | |||||
Total Short-Term Investments | ||||||||
(Cost $44,107) | 44,107 | |||||||
Investment Purchased with Proceeds from Securities Lending – 15.2% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $136,238) | 136,237,714 | 136,238 | ||||||
Total Investments 5 – 115.2% | ||||||||
(Cost $754,903) | 1,034,053 | |||||||
Other Assets and Liabilities, Net – (15.2)% | (136,101 | ) | ||||||
Total Net Assets – 100.0% | $ | 897,952 | ||||||
> | 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 October 31, 2010. Total loaned securities had a fair value of $130,416 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
◖ | Investment in affiliated security. FAF Advisors, Inc., which serves as the fund’s advisor, is a subsidiary of U.S. Bank, National Association, which is a subsidiary of U.S. Bancorp. Details of transactions with this affiliated company for the year ended October 31, 2010 were as follows: |
Beginning | Purchase | Sales | Ending | Dividend | Fair | |||||||||||||||||||||||
Issuer | Cost | Cost | Cost | Cost | Income | Shares | Value | |||||||||||||||||||||
U.S. Bancorp | $ | 4,412 | $ | — | $ | 1,087 | $ | 3,325 | $ | 34 | 152,660 | $ | 3,692 |
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 October 31, 2010. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 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 October 31, 2010, the cost of investments for federal income tax purposes was $770,441. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 352,832 | ||
Gross unrealized depreciation | (89,220 | ) | ||
Net unrealized appreciation | $ | 263,612 | ||
REIT – | Real Estate Investment Trust |
Equity Index Fund (concluded)
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Settlement | Contracts | Contract | Unrealized | |||||||||||
Description | Month | Purchased | Value | Appreciation | ||||||||||
S&P 500 Futures | December 2010 | 146 | $43,059 | $ | 3,113 | |||||||||
The accompanying notes are an integral part of the financial statements.
20 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Index Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 95.6% | ||||||||
Consumer Discretionary – 13.4% | ||||||||
99 Cents Only Stores = | 11,677 | $ | 180 | |||||
Aaron’s 6 | 19,299 | 364 | ||||||
Advance Auto Parts | 21,058 | 1,368 | ||||||
Aeropostale = 6 | 23,102 | 563 | ||||||
American Eagle Outfitters | 48,869 | 782 | ||||||
American Greetings, Class A | 9,876 | 191 | ||||||
AnnTaylor Stores = | 14,754 | 344 | ||||||
Bally Technologies = | 13,480 | 486 | ||||||
Barnes & Noble 6 | 9,744 | 146 | ||||||
Bob Evans Farms | 7,832 | 225 | ||||||
BorgWarner = | 28,494 | 1,599 | ||||||
Boyd Gaming = 6 | 14,007 | 116 | ||||||
Brinker International 6 | 25,384 | 471 | ||||||
Career Education = 6 | 16,451 | 289 | ||||||
Cheesecake Factory = | 14,868 | 433 | ||||||
Chico’s FAS | 44,777 | 435 | ||||||
Chipotle Mexican Grill, Class A = 6 | 7,774 | 1,634 | ||||||
Coldwater Creek = 6 | 15,000 | 51 | ||||||
Collective Brands = 6 | 16,089 | 247 | ||||||
Corinthian Colleges = 6 | 22,040 | 115 | ||||||
Dick’s Sporting Goods = | 21,763 | 627 | ||||||
Dollar Tree = | 31,465 | 1,614 | ||||||
DreamWorks Animation, Class A = 6 | 17,893 | 632 | ||||||
Dress Barn = | 17,273 | 396 | ||||||
Foot Locker | 38,905 | 620 | ||||||
Fossil = | 13,252 | 782 | ||||||
Gentex | 34,976 | 699 | ||||||
Guess? 6 | 15,830 | 616 | ||||||
Hanesbrands = | 23,907 | 593 | ||||||
Harte-Hanks | 11,303 | 136 | ||||||
International Speedway, Class A | 7,321 | 167 | ||||||
ITT Educational Services = 6 | 6,883 | 444 | ||||||
J. Crew Group = 6 | 15,929 | 510 | ||||||
John Wiley & Sons, Class A | 11,517 | 497 | ||||||
KB HOME 6 | 18,043 | 190 | ||||||
Lamar Advertising, Class A = 6 | 14,299 | 486 | ||||||
Life Time Fitness = 6 | 10,463 | 378 | ||||||
LKQ = | 35,775 | 778 | ||||||
M.D.C. Holdings | 9,424 | 243 | ||||||
Matthews International, Class A | 7,441 | 246 | ||||||
Mohawk Industries = 6 | 14,057 | 806 | ||||||
Netflix = 6 | 10,860 | 1,884 | ||||||
NVR = 6 | 1,451 | 910 | ||||||
Panera Bread, Class A = 6 | 7,657 | 685 | ||||||
PetSmart | 29,655 | 1,110 | ||||||
Phillips-Van Heusen | 16,573 | 1,017 | ||||||
Regis 6 | 14,383 | 294 | ||||||
Rent-A-Center 6 | 16,491 | 415 | ||||||
Ryland Group | 11,023 | 165 | ||||||
Saks = 6 | 40,213 | 448 | ||||||
Scholastic | 6,956 | 205 | ||||||
Scientific Games, Class A = | 15,765 | 125 | ||||||
Service International 6 | 61,680 | 511 | ||||||
Sotheby’s Holdings, Class A 6 | 16,747 | 734 | ||||||
Strayer Education 6 | 3,471 | 485 | ||||||
Thor Industries | 9,775 | 308 | ||||||
Timberland, Class A = | 11,008 | 231 | ||||||
Toll Brothers = 6 | 36,066 | 647 | ||||||
Tractor Supply | 18,143 | 718 | ||||||
Tupperware | 15,768 | 707 | ||||||
Under Armour, Class A = 6 | 8,946 | 418 | ||||||
Warnaco Group = | 11,133 | 591 | ||||||
Wendy’s/Arby’s Group, Class A | 80,488 | 370 | ||||||
Williams-Sonoma 6 | 27,031 | 875 | ||||||
WMS Industries = 6 | 14,520 | 633 | ||||||
35,985 | ||||||||
Consumer Staples – 3.5% | ||||||||
Alberto-Culver | 21,449 | 800 | ||||||
BJ’s Wholesale Club = | 13,640 | 569 | ||||||
Church & Dwight | 17,746 | 1,169 | ||||||
Corn Products International | 18,808 | 800 | ||||||
Energizer Holdings = | 17,539 | 1,312 | ||||||
Flowers Foods 6 | 17,953 | 457 | ||||||
Green Mountain Coffee Roasters = 6 | 28,795 | 950 | ||||||
Hansen Natural = | 17,197 | 881 | ||||||
Lancaster Colony 6 | 4,842 | 241 | ||||||
Ralcorp Holdings = | 13,721 | 851 | ||||||
Ruddick | 10,192 | 356 | ||||||
Smithfield Foods = 6 | 41,488 | 695 | ||||||
Tootsie Roll Industries 6 | 5,762 | 151 | ||||||
Universal 6 | 5,936 | 246 | ||||||
9,478 | ||||||||
Energy – 6.0% | ||||||||
Arch Coal | 40,604 | 998 | ||||||
Atwood Oceanics = | 14,397 | 468 | ||||||
Bill Barrett = | 11,488 | 434 | ||||||
Cimarex Energy | 21,015 | 1,613 | ||||||
Comstock Resources = | 11,824 | 264 | ||||||
Dril-Quip = | 7,654 | 529 | ||||||
Exterran Holdings = 6 | 15,795 | 397 | ||||||
Forest Oil = 6 | 28,322 | 870 | ||||||
Frontier Oil | 24,826 | 329 | ||||||
Helix Energy Solutions Group = | 26,351 | 334 | ||||||
Mariner Energy = | 25,774 | 642 | ||||||
Newfield Exploration = | 33,390 | 1,991 | ||||||
Oceaneering International = | 13,530 | 837 | ||||||
Overseas Shipholding Group 6 | 6,692 | 224 | ||||||
Patriot Coal = 6 | 20,007 | 270 | ||||||
Patterson-UTI Energy | 38,523 | 748 | ||||||
Plains Exploration & Production = | 35,011 | 976 | ||||||
Pride International = | 43,896 | 1,331 | ||||||
Quicksilver Resources = | 29,375 | 440 | ||||||
Southern Union | 32,221 | 810 | ||||||
Superior Energy Services = | 19,693 | 544 | ||||||
Tidewater | 12,846 | 593 | ||||||
Unit = | 9,923 | 389 | ||||||
16,031 | ||||||||
Financials – 18.9% | ||||||||
Affiliated Managers Group = | 12,770 | 1,093 | ||||||
Alexandria Real Estate Equities – REIT 6 | 13,620 | 1,001 | ||||||
AMB Property – REIT | 42,055 | 1,186 | ||||||
American Financial Group | 19,775 | 605 | ||||||
Apollo Investment 6 | 48,596 | 534 | ||||||
Arthur J. Gallagher | 26,290 | 740 | ||||||
Associated Banc 6 | 43,227 | 548 | ||||||
Astoria Financial | 20,547 | 255 | ||||||
BancorpSouth 6 | 18,359 | 242 | ||||||
Bank of Hawaii 6 | 12,061 | 521 | ||||||
BRE Properties – REIT | 16,001 | 687 | ||||||
Brown & Brown | 28,582 | 637 | ||||||
Camden Property Trust – REIT | 16,740 | 830 | ||||||
Cathay General Bancorp | 19,622 | 267 | ||||||
City National 6 | 11,588 | 598 | ||||||
Commerce Bancshares | 18,543 | 683 | ||||||
Corporate Office Properties Trust – REIT 6 | 14,817 | 526 | ||||||
Cousins Properties – REIT | 25,651 | 190 | ||||||
Cullen/Frost Bankers | 14,935 | 783 | ||||||
Duke Realty – REIT 6 | 62,868 | 784 | ||||||
Eaton Vance 6 | 29,522 | 849 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 21
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Equity One – REIT 6 | 10,402 | $ | 195 | |||||
Essex Property Trust – REIT 6 | 7,579 | 856 | ||||||
Everest Re Group | 13,668 | 1,152 | ||||||
Federal Realty Investment Trust – REIT | 15,349 | 1,258 | ||||||
Fidelity National Financial, Class A | 56,924 | 762 | ||||||
First American Financial | 26,025 | 365 | ||||||
First Niagara Financial Group 6 | 52,243 | 619 | ||||||
FirstMerit 6 | 27,186 | 467 | ||||||
Fulton Financial | 49,679 | 464 | ||||||
Greenhill & Company 6 | 6,334 | 492 | ||||||
Hanover Insurance Group 6 | 12,064 | 546 | ||||||
HCC Insurance Holdings | 28,790 | 762 | ||||||
Highwoods Properties – REIT 6 | 17,897 | 593 | ||||||
Hospitality Properties Trust – REIT 6 | 30,835 | 703 | ||||||
International Bancshares | 13,231 | 227 | ||||||
Jefferies Group 6 | 30,892 | 739 | ||||||
Jones Lang LaSalle 6 | 10,656 | 832 | ||||||
Liberty Property Trust – REIT | 28,426 | 951 | ||||||
Macerich – REIT | 32,514 | 1,450 | ||||||
Mack-Cali Realty – REIT | 19,842 | 666 | ||||||
Mercury General | 8,900 | 378 | ||||||
MSCI, Class A = | 29,439 | 1,055 | ||||||
Nationwide Health Properties – REIT | 30,927 | 1,263 | ||||||
New York Community Bancorp 6 | 108,846 | 1,843 | ||||||
NewAlliance Bancshares | 25,329 | 327 | ||||||
Old Republic International 6 | 64,675 | 854 | ||||||
OMEGA Healthcare Investors – REIT | 23,685 | 545 | ||||||
PacWest Bancorp | 7,859 | 137 | ||||||
Potlatch – REIT 6 | 9,994 | 340 | ||||||
Prosperity Bancshares 6 | 11,652 | 362 | ||||||
Protective Life | 21,408 | 513 | ||||||
Raymond James Financial | 24,891 | 702 | ||||||
Rayonier – REIT | 20,057 | 1,047 | ||||||
Realty Income – REIT | 27,461 | 941 | ||||||
Regency Centers – REIT 6 | 20,458 | 863 | ||||||
Reinsurance Group of America | 18,310 | 917 | ||||||
SEI Investments | 36,742 | 814 | ||||||
Senior Housing Properties Trust – REIT | 31,841 | 761 | ||||||
SL Green Realty – REIT 6 | 19,547 | 1,285 | ||||||
StanCorp Financial Group | 11,677 | 501 | ||||||
SVB Financial Group = | 10,483 | 454 | ||||||
Synovus Financial 6 | 196,191 | 424 | ||||||
TCF Financial 6 | 31,667 | 417 | ||||||
Transatlantic Holdings | 15,932 | 838 | ||||||
Trustmark 6 | 14,210 | 314 | ||||||
UDR – REIT | 44,829 | 1,008 | ||||||
Unitrin | 12,536 | 305 | ||||||
Valley National Bancorp 6 | 40,266 | 537 | ||||||
W.R. Berkley | 29,859 | 822 | ||||||
Waddell & Reed Financial, Class A | 21,354 | 621 | ||||||
Washington Federal | 28,109 | 422 | ||||||
Webster Financial 6 | 16,474 | 282 | ||||||
Weingarten Realty Investors – REIT 6 | 30,086 | 726 | ||||||
Westamerica Bancorporation 6 | 7,283 | 364 | ||||||
Wilmington Trust 6 | 22,878 | 163 | ||||||
50,803 | ||||||||
Healthcare – 10.7% | ||||||||
Allscripts Healthcare Solutions = | 40,977 | 782 | ||||||
Beckman Coulter | 17,304 | 921 | ||||||
Bio-Rad Laboratories, Class A = | 4,840 | 439 | ||||||
Charles River Laboratories International = 6 | 16,558 | 543 | ||||||
Community Health Systems = | 23,589 | 710 | ||||||
Covance = 6 | 16,184 | 760 | ||||||
Edwards Lifesciences = | 28,327 | 1,810 | ||||||
Endo Pharmaceuticals Holdings = | 28,842 | 1,060 | ||||||
Gen-Probe = | 11,939 | 578 | ||||||
Health Management Associates, Class A = 6 | 62,631 | 502 | ||||||
Health Net = | 24,348 | 655 | ||||||
Henry Schein = | 22,871 | 1,284 | ||||||
Hill-Rom Holdings | 15,867 | 615 | ||||||
Hologic = | 64,763 | 1,037 | ||||||
IDEXX Laboratories = 6 | 14,421 | 865 | ||||||
Immucor = | 17,488 | 304 | ||||||
Kindred Healthcare = | 9,866 | 135 | ||||||
Kinetic Concepts = | 15,620 | 594 | ||||||
LifePoint Hospitals = | 13,551 | 460 | ||||||
Lincare Holdings | 24,513 | 643 | ||||||
Masimo | 14,700 | 443 | ||||||
Medicis Pharmaceutical, Class A | 15,037 | 447 | ||||||
MEDNAX = | 11,906 | �� | 705 | |||||
Mettler-Toledo International = | 8,349 | 1,090 | ||||||
Omnicare | 29,530 | 712 | ||||||
Owens & Minor | 15,829 | 451 | ||||||
Perrigo | 20,623 | 1,359 | ||||||
Pharmaceutical Product Development | 29,694 | 766 | ||||||
Psychiatric Solutions = | 14,219 | 479 | ||||||
ResMed = | 37,828 | 1,206 | ||||||
STERIS | 14,740 | 504 | ||||||
Techne | 9,157 | 558 | ||||||
Teleflex 6 | 9,979 | 556 | ||||||
Thoratec = 6 | 14,610 | 477 | ||||||
United Therapeutics = | 12,414 | 745 | ||||||
Universal Health Services | 24,294 | 1,003 | ||||||
VCA Antech = | 21,485 | 444 | ||||||
Vertex Pharmaceuticals = 6 | 50,690 | 1,943 | ||||||
WellCare Health Plans = 6 | 10,620 | 295 | ||||||
28,880 | ||||||||
Industrials – 14.8% | ||||||||
Acuity Brands 6 | 10,882 | 545 | ||||||
AECOM Technology = | 29,023 | 769 | ||||||
AGCO = 6 | 23,249 | 987 | ||||||
AirTran Holdings = 6 | 33,843 | 250 | ||||||
Alaska Air Group = 6 | 8,950 | 473 | ||||||
Alexander & Baldwin 6 | 10,289 | 354 | ||||||
Alliant Techsystems = 6 | 8,295 | 632 | ||||||
AMETEK | 26,616 | 1,439 | ||||||
Baldor Electric | 11,740 | 493 | ||||||
BE Aerospace = 6 | 25,564 | 940 | ||||||
Brinks | 11,726 | 277 | ||||||
Bucyrus International 6 | 20,245 | 1,380 | ||||||
Carlisle Companies | 15,239 | 534 | ||||||
Clean Harbors = | 5,722 | 403 | ||||||
Con-way | 13,605 | 449 | ||||||
Copart = | 17,914 | 607 | ||||||
Corporate Executive Board | 8,564 | 268 | ||||||
Corrections Corporation of America = | 27,611 | 709 | ||||||
Crane | 11,620 | 445 | ||||||
Deluxe | 12,839 | 262 | ||||||
Donaldson | 19,026 | 927 | ||||||
FTI Consulting = 6 | 12,269 | 435 | ||||||
Gardner Denver | 13,071 | 756 | ||||||
GATX | 11,570 | 366 | ||||||
Graco | 15,056 | 518 | ||||||
Granite Construction 6 | 8,527 | 206 | ||||||
Harsco | 20,110 | 466 | ||||||
Herman Miller 6 | 14,259 | 274 | ||||||
HNI 6 | 11,255 | 278 | ||||||
Hubbell, Class B | 14,982 | 809 | ||||||
IDEX 6 | 20,358 | 734 | ||||||
J.B. Hunt Transport Services | 22,187 | 798 | ||||||
JetBlue Airways = 6 | 50,343 | 351 | ||||||
Joy Global | 25,809 | 1,831 | ||||||
Kansas City Southern = | 25,629 | 1,123 | ||||||
KBR | 39,053 | 992 |
The accompanying notes are an integral part of the financial statements.
22 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Kennametal | 20,478 | $ | 699 | |||||
Kirby = 6 | 13,482 | 580 | ||||||
Korn/Ferry International = | 11,567 | 204 | ||||||
Landstar System | 12,455 | 469 | ||||||
Lennox International | 11,738 | 481 | ||||||
Lincoln Electric Holdings | 10,604 | 634 | ||||||
Manpower | 20,551 | 1,125 | ||||||
Mine Safety Appliances | 7,705 | 217 | ||||||
MSC Industrial Direct, Class A | 11,131 | 634 | ||||||
Navigant Consulting = | 12,521 | 115 | ||||||
Nordson | 8,486 | 662 | ||||||
Oshkosh = | 22,625 | 668 | ||||||
Pentair 6 | 24,667 | 807 | ||||||
Regal-Beloit | 9,638 | 556 | ||||||
Rollins | 10,592 | 276 | ||||||
Shaw Group = | 21,105 | 645 | ||||||
SPX | 12,492 | 838 | ||||||
Terex = | 27,165 | 610 | ||||||
Thomas & Betts = | 13,062 | 569 | ||||||
Timken | 20,067 | 831 | ||||||
Towers Watson, Class A 6 | 11,313 | 582 | ||||||
Trinity Industries 6 | 19,930 | 453 | ||||||
United Rentals = | 15,128 | 284 | ||||||
URS = | 20,939 | 815 | ||||||
Valmont Industries | 5,332 | 420 | ||||||
Waste Connections = | 19,018 | 775 | ||||||
Watsco 6 | 6,964 | 390 | ||||||
Werner Enterprises 6 | 11,071 | 236 | ||||||
Westinghouse Air Brake Technologies | 11,977 | 561 | ||||||
Woodward Governor | 14,650 | 459 | ||||||
39,675 | ||||||||
Information Technology – 15.3% | ||||||||
ACI Worldwide = | 8,147 | 199 | ||||||
Acxiom = | 19,997 | 351 | ||||||
ADC Telecommunications = | 24,248 | 308 | ||||||
ADTRAN | 15,649 | 505 | ||||||
Advent Software = | 3,689 | 198 | ||||||
Alliance Data Systems = 6 | 13,153 | 799 | ||||||
ANSYS = | 22,716 | 1,028 | ||||||
AOL = | 26,518 | 708 | ||||||
Arrow Electronics = | 29,443 | 872 | ||||||
Atmel = | 115,340 | 1,022 | ||||||
Avnet = | 37,947 | 1,130 | ||||||
Broadridge Financial Solutions | 30,531 | 672 | ||||||
Cadence Design Systems = | 66,536 | 564 | ||||||
Ciena = 6 | 23,385 | 325 | ||||||
CommScope = | 23,671 | 749 | ||||||
Convergys = | 31,007 | 351 | ||||||
CoreLogic | 26,519 | 466 | ||||||
Cree = 6 | 27,006 | 1,385 | ||||||
Diebold 6 | 16,416 | 503 | ||||||
Digital River = | 9,907 | 369 | ||||||
DST Systems 6 | 8,470 | 367 | ||||||
Equinix = 6 | 11,393 | 960 | ||||||
F5 Networks = | 20,109 | 2,367 | ||||||
FactSet Research Systems 6 | 11,578 | 1,016 | ||||||
Fair Isaac 6 | 10,991 | 264 | ||||||
Fairchild Semiconductor International = | 31,169 | 351 | ||||||
Gartner, Class A = 6 | 18,103 | 574 | ||||||
Global Payments | 19,921 | 776 | ||||||
Informatica = 6 | 23,127 | 941 | ||||||
Ingram Micro, Class A = | 39,234 | 693 | ||||||
Integrated Device Technology = | 39,627 | 233 | ||||||
International Rectifier = 6 | 16,891 | 392 | ||||||
Intersil, Class A 6 | 30,944 | 405 | ||||||
Itron = | 10,090 | 613 | ||||||
Jack Henry & Associates | 21,430 | 582 | ||||||
Lam Research = 6 | 31,031 | 1,421 | ||||||
Lender Processing Services | 23,260 | 671 | ||||||
ManTech International = | 5,619 | 220 | ||||||
Mentor Graphics = | 27,319 | 295 | ||||||
MICROS Systems = | 20,019 | 909 | ||||||
National Instruments | 14,691 | 511 | ||||||
NCR = | 40,111 | 550 | ||||||
NeuStar, Class A = | 18,750 | 484 | ||||||
Parametric Technology = | 28,828 | 619 | ||||||
Plantronics | 11,914 | 428 | ||||||
Polycom = | 21,310 | 720 | ||||||
Quest Software = | 15,344 | 402 | ||||||
Rackspace Hosting = 6 | 24,046 | 600 | ||||||
RF Micro Devices = | 68,215 | 497 | ||||||
Riverbed Technology = 6 | 17,766 | 1,022 | ||||||
Rovi = 6 | 25,779 | 1,306 | ||||||
Semtech = 6 | 15,520 | 332 | ||||||
Silicon Laboratories = 6 | 11,153 | 445 | ||||||
Skyworks Solutions = 6 | 44,642 | 1,023 | ||||||
Solera Holdings | 17,509 | 841 | ||||||
SRA International, Class A = | 11,133 | 223 | ||||||
Synopsys = | 37,104 | 949 | ||||||
Tech Data = | 11,662 | 501 | ||||||
TIBCO Software = | 40,967 | 787 | ||||||
Trimble Navigation = | 29,780 | 1,067 | ||||||
ValueClick = | 20,671 | 284 | ||||||
Vishay Intertechnology = | 46,645 | 527 | ||||||
Zebra Technologies, Class A = | 14,166 | 507 | ||||||
41,179 | ||||||||
Materials – 6.3% | ||||||||
Albemarle | 22,816 | 1,144 | ||||||
AptarGroup | 16,849 | 756 | ||||||
Ashland | 19,675 | 1,016 | ||||||
Cabot Microelectronics | 16,327 | 555 | ||||||
Carpenter Technology 6 | 10,416 | 371 | ||||||
Commercial Metals | 28,565 | 396 | ||||||
Cytec Industries | 12,260 | 607 | ||||||
Greif, Class A | 8,113 | 477 | ||||||
Intrepid Potash = 6 | 11,073 | 380 | ||||||
Louisiana-Pacific = | 32,291 | 250 | ||||||
Lubrizol | 16,868 | 1,729 | ||||||
Martin Marietta Materials 6 | 11,376 | 916 | ||||||
Minerals Technologies | 4,640 | 272 | ||||||
NewMarket | 2,785 | 330 | ||||||
Olin | 19,792 | 396 | ||||||
Packaging Corporation of America | 25,896 | 633 | ||||||
Reliance Steel & Aluminum | 18,559 | 777 | ||||||
Rock-Tenn, Class A | 9,735 | 553 | ||||||
RPM International | 32,494 | 673 | ||||||
Scotts Miracle-Gro, Class A | 11,150 | 595 | ||||||
Sensient Technologies | 12,336 | 399 | ||||||
Silgan Holdings | 13,414 | 453 | ||||||
Sonoco Products | 25,156 | 843 | ||||||
Steel Dynamics | 54,190 | 787 | ||||||
Temple-Inland | 26,932 | 558 | ||||||
Valspar | 24,609 | 790 | ||||||
Worthington Industries 6 | 14,509 | 223 | ||||||
16,879 | ||||||||
Telecommunication Services – 0.8% | ||||||||
Cincinnati Bell = | 53,463 | 131 | ||||||
Syniverse Holdings = | 17,339 | 528 | ||||||
Telephone & Data Systems | 22,675 | 790 | ||||||
tw telecom = | 37,879 | 697 | ||||||
2,146 | ||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 23
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Mid Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES/PAR | FAIR VALUE > | ||||||
Utilities – 5.9% | ||||||||
AGL Resources | 19,475 | $ | 765 | |||||
Alliant Energy | 27,855 | 1,018 | ||||||
Aqua America 6 | 34,302 | 738 | ||||||
Atmos Energy | 21,886 | 644 | ||||||
Black Hills | 9,797 | 312 | ||||||
Cleco | 15,177 | 475 | ||||||
DPL | 29,724 | 776 | ||||||
Dynegy = | 25,629 | 119 | ||||||
Energen | 17,962 | 802 | ||||||
Great Plains Energy | 35,129 | 668 | ||||||
Hawaiian Electric Industries | 23,411 | 528 | ||||||
IDACORP | 12,041 | 443 | ||||||
MDU Resources Group | 47,024 | 937 | ||||||
National Fuel Gas | 20,484 | 1,130 | ||||||
NSTAR 6 | 25,887 | 1,080 | ||||||
NV Energy | 58,756 | 803 | ||||||
OGE Energy | 23,162 | 1,023 | ||||||
PNM Resources | 21,661 | 255 | ||||||
Questar | 43,873 | 744 | ||||||
UGI | 27,476 | 827 | ||||||
Vectren | 20,331 | 557 | ||||||
Westar Energy 6 | 27,688 | 700 | ||||||
WGL Holdings | 12,401 | 478 | ||||||
15,822 | ||||||||
Total Common Stocks | ||||||||
(Cost $216,548) | 256,878 | |||||||
Warrant – 0.0% | ||||||||
Krispy Kreme Doughnuts = | ||||||||
(Cost $0) | 1,473 | — | ||||||
Short-Term Investments – 4.3% | ||||||||
Money Market Fund – 3.4% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | 9,201,220 | 9,201 | ||||||
U.S. Treasury Obligation – 0.9% | ||||||||
U.S. Treasury Bill | ||||||||
0.185%, 11/04/2010 o | $ | 2,320 | 2,320 | |||||
Total Short-Term Investments | ||||||||
(Cost $11,521) | 11,521 | |||||||
Investment Purchased with Proceeds from Securities Lending – 22.8% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $61,127) | 61,126,730 | 61,127 | ||||||
Total Investments 5 – 122.7% | ||||||||
(Cost $289,196) | 329,526 | |||||||
Other Assets and Liabilities, Net – (22.7)% | (60,927 | ) | ||||||
Total Net Assets – 100.0% | $ | 268,599 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $58,844 at October 31, 2010. 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 October 31, 2010. |
Mid Cap Index Fund (concluded)
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 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 October 31, 2010, the cost of investments for federal income tax purposes was $290,639. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 64,519 | ||
Gross unrealized depreciation | (25,632 | ) | ||
Net unrealized appreciation | $ | 38,887 | ||
REIT – | Real Estate Investment Trust |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Settlement | Contracts | Contract | Unrealized | |||||||||||
Description | Month | Purchased | Value | Appreciation | ||||||||||
S&P Mid Cap 400 E-Mini Futures | December 2010 | 138 | $11,420 | $ | 853 | |||||||||
The accompanying notes are an integral part of the financial statements.
24 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Common Stocks – 94.9% | ||||||||
Consumer Discretionary – 13.1% | ||||||||
1-800-Flowers.com, Class A = | 1,466 | $ | 3 | |||||
99 Cents Only Stores = | 2,727 | 42 | ||||||
AFC Enterprises = | 1,504 | 19 | ||||||
AH Belo, Class A = | 1,068 | 8 | ||||||
Ambassadors Group | 1,074 | 12 | ||||||
American Apparel = 6 | 1,970 | 2 | ||||||
American Axle & Manufacturing Holdings = | 3,562 | 33 | ||||||
American Greetings, Class A | 2,387 | 46 | ||||||
American Public Education = | 1,107 | 31 | ||||||
America’s Car-Mart = | 583 | 16 | ||||||
Amerigon = | 1,317 | 14 | ||||||
Ameristar Casinos | 1,561 | 28 | ||||||
AnnTaylor Stores = | 3,513 | 82 | ||||||
Arbitron | 1,587 | 40 | ||||||
Arctic Cat = | 720 | 10 | ||||||
ArvinMeritor = 6 | 5,606 | 93 | ||||||
Asbury Automotive Group = | 1,723 | 25 | ||||||
Ascent Media = | 859 | 23 | ||||||
Audiovox = | 1,015 | 7 | ||||||
Ballantyne Strong = | 841 | 7 | ||||||
Barnes & Noble 6 | 2,288 | 34 | ||||||
Beasley Broadcast Group = | 261 | 1 | ||||||
Beazer Homes USA = 6 | 4,433 | 18 | ||||||
Bebe Stores | 1,941 | 13 | ||||||
Belo, Class A = | 5,411 | 31 | ||||||
Big 5 Sporting Goods | 1,341 | 18 | ||||||
Biglari Holdings = | 83 | 28 | ||||||
BJ’s Restaurants = 6 | 1,195 | 40 | ||||||
Blue Nile = 6 | 776 | 33 | ||||||
Bluegreen = | 713 | 2 | ||||||
Blyth | 340 | 14 | ||||||
Bob Evans Farms | 1,803 | 52 | ||||||
Bon-Ton Stores = | 697 | 8 | ||||||
Books-A-Million | 429 | 3 | ||||||
Borders Group = | 3,519 | 4 | ||||||
Boyd Gaming = 6 | 3,200 | 27 | ||||||
Bridgepoint Education = 6 | 1,157 | 16 | ||||||
Brookfield Homes = | 523 | 4 | ||||||
Brown Shoe | 2,480 | 29 | ||||||
Brunswick 6 | 5,254 | 83 | ||||||
Buckle 6 | 1,554 | 45 | ||||||
Buffalo Wild Wings = 6 | 1,097 | 52 | ||||||
Build-A-Bear Workshop = 6 | 1,026 | 7 | ||||||
Cabela’s = 6 | 2,434 | 45 | ||||||
California Pizza Kitchen = 6 | 1,176 | 19 | ||||||
Callaway Golf | 3,854 | 26 | ||||||
Cambium Learning Group = | 984 | 3 | ||||||
Capella Education = 6 | 996 | 55 | ||||||
Caribou Coffee = 6 | 417 | 4 | ||||||
Carmike Cinemas = 6 | 670 | 5 | ||||||
Carrols Restaurant Group = | 688 | 5 | ||||||
Carters = | 3,406 | 85 | ||||||
Casual Male Retail Group = | 2,473 | 11 | ||||||
Cato, Class A | 1,621 | 43 | ||||||
Cavco Industries = | 350 | 11 | ||||||
CEC Entertainment = | 1,304 | 43 | ||||||
Charming Shoppes = | 7,038 | 25 | ||||||
Cheesecake Factory = 6 | 3,664 | 107 | ||||||
Cherokee | 464 | 9 | ||||||
Children’s Place Retail Stores = | 1,646 | 73 | ||||||
Christopher & Banks | 2,187 | 13 | ||||||
Churchill Downs | 665 | 24 | ||||||
Cinemark Holdings | 3,378 | 59 | ||||||
Citi Trends = | 896 | 19 | ||||||
CKX = | 3,542 | 14 | ||||||
Coinstar = 6 | 1,840 | 106 | ||||||
Coldwater Creek = 6 | 3,334 | 11 | ||||||
Collective Brands = 6 | 3,906 | 60 | ||||||
Columbia Sportswear 6 | 690 | 36 | ||||||
Conn’s = 6 | 574 | 3 | ||||||
Cooper Tire & Rubber | 3,596 | 70 | ||||||
Core-Mark Holding = 6 | 548 | 18 | ||||||
Corinthian Colleges = 6 | 5,230 | 27 | ||||||
CPI | 306 | 8 | ||||||
Cracker Barrel Old Country Store | 1,379 | 74 | ||||||
Crocs = 6 | 5,110 | 71 | ||||||
Crown Media Holdings, Class A = 6 | 1,579 | 5 | ||||||
CSS Industries | 430 | 7 | ||||||
Culp = | 525 | 5 | ||||||
Cumulus Media, Class A = | 1,293 | 4 | ||||||
Dana Holding = 6 | 8,398 | 119 | ||||||
Deckers Outdoor = | 2,298 | 133 | ||||||
Delta Apparel = | 355 | 5 | ||||||
Denny’s = | 5,888 | 19 | ||||||
Destination Maternity = | 287 | 10 | ||||||
Dex One = | 2,969 | 21 | ||||||
Dillard’s, Class A | 2,572 | 66 | ||||||
DineEquity = 6 | 1,073 | 48 | ||||||
Dolan Media = | 1,827 | 20 | ||||||
Domino’s Pizza = | 2,213 | 33 | ||||||
Dorman Products = | 692 | 25 | ||||||
Dress Barn = 6 | 3,421 | 78 | ||||||
Drew Industries = | 1,146 | 24 | ||||||
Drugstore.com = | 5,507 | 9 | ||||||
DSW = 6 | 749 | 25 | ||||||
E.W. Scripps, Class A = | 1,746 | 15 | ||||||
Eastman Kodak = 6 | 15,944 | 75 | ||||||
Einstein Noah Restaurant Group = | 331 | 4 | ||||||
Empire Resorts = | 1,504 | 1 | ||||||
Entercom Communications = | 1,396 | 12 | ||||||
Entravision Communications = | 2,884 | 6 | ||||||
Ethan Allen Interiors | 1,442 | 22 | ||||||
Exide Technologies = | 4,486 | 26 | ||||||
Express = 6 | 949 | 13 | ||||||
Finish Line, Class A | 3,017 | 46 | ||||||
Fisher Communications = | 377 | 7 | ||||||
Fred’s | 2,322 | 28 | ||||||
Fuel Systems Solutions = | 835 | 34 | ||||||
Furniture Brands International = | 2,621 | 13 | ||||||
Gaiam, Class A | 1,045 | 7 | ||||||
Gaylord Entertainment = 6 | 2,057 | 69 | ||||||
Genesco = | 1,383 | 45 | ||||||
G-iii Apparel Group = 6 | 914 | 24 | ||||||
Global Sources = 6 | 982 | 7 | ||||||
Grand Canyon Education = 6 | 1,838 | 35 | ||||||
Gray Television = | 2,875 | 6 | ||||||
Group 1 Automotive = 6 | 1,467 | 52 | ||||||
Gymboree = 6 | 1,689 | 110 | ||||||
Harte-Hanks | 2,134 | 26 | ||||||
Haverty Furniture | 1,044 | 11 | ||||||
Hawk = | 334 | 17 | ||||||
Helen of Troy = | 1,769 | 45 | ||||||
hhgregg = 6 | 726 | 17 | ||||||
Hibbett Sports = 6 | 1,696 | 46 | ||||||
Hooker Furniture | 657 | 7 | ||||||
Hot Topic | 2,684 | 15 | ||||||
Hovnanian Enterprises, Class A = 6 | 3,162 | 11 | ||||||
HSN = | 2,305 | 69 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 25
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Iconix Brand Group = 6 | 4,349 | $ | 76 | |||||
Interval Leisure Group = | 2,413 | 35 | ||||||
iRobot = 6 | 1,185 | 25 | ||||||
Isle of Capri Casinos = | 918 | 7 | ||||||
Jack in the Box = | 3,266 | 76 | ||||||
JAKKS Pacific = 6 | 1,703 | 32 | ||||||
Jamba = | 3,528 | 8 | ||||||
Jo-Ann Stores = | 1,612 | 70 | ||||||
Joe’s Jeans = 6 | 2,519 | 4 | ||||||
Johnson Outdoors = | 258 | 4 | ||||||
Jones Group | 5,207 | 75 | ||||||
Jos. A. Bank Clothiers = 6 | 1,633 | 71 | ||||||
Journal Communications, Class A = | 2,456 | 11 | ||||||
K12 = | 1,440 | 40 | ||||||
Kenneth Cole Productions = | 537 | 7 | ||||||
Kid Brands = | 745 | 7 | ||||||
Kirkland’s = 6 | 993 | 13 | ||||||
Knology = | 1,812 | 26 | ||||||
Krispy Kreme Doughnuts = | 3,554 | 20 | ||||||
K-Swiss, Class A = | 1,479 | 18 | ||||||
Lacrosse Footwear | 278 | 4 | ||||||
La-Z-Boy = 6 | 3,139 | 24 | ||||||
LeapFrog Enterprises = | 2,041 | 11 | ||||||
Learning Tree International | 485 | 5 | ||||||
Lee Enterprises = | 2,662 | 5 | ||||||
Libbey = | 959 | 13 | ||||||
Life Time Fitness = 6 | 2,456 | 89 | ||||||
Lifetime Brands = 6 | 549 | 7 | ||||||
Lin TV, Class A = | 1,706 | 7 | ||||||
Lincoln Educational Services = | 976 | 12 | ||||||
Lions Gate Entertainment = | 4,031 | 29 | ||||||
Lithia Motors | 1,255 | 14 | ||||||
Live Nation = | 8,349 | 79 | ||||||
Liz Claiborne = 6 | 5,665 | 35 | ||||||
LodgeNet Interactive = | 1,487 | 4 | ||||||
Lumber Liquidators Holdings = 6 | 1,320 | 32 | ||||||
M/I Homes = | 1,067 | 11 | ||||||
Mac-Gray | 698 | 8 | ||||||
Maidenform Brands = | 1,360 | 36 | ||||||
Marcus | 1,177 | 15 | ||||||
Marine Products = | 704 | 4 | ||||||
MarineMax = | 1,309 | 10 | ||||||
Martha Stewart Living = 6 | 1,615 | 7 | ||||||
Matthews International, Class A | 1,846 | 61 | ||||||
McClatchy = 6 | 3,537 | 10 | ||||||
McCormick & Schmick’s Seafood Restaurants = 6 | 905 | 8 | ||||||
Media General, Class A = | 1,307 | 7 | ||||||
Mediacom Communications = | 2,582 | 18 | ||||||
Men’s Wearhouse | 3,124 | 76 | ||||||
Meritage Homes = | 1,910 | 35 | ||||||
Midas = | 855 | 6 | ||||||
Modine Manufacturing = | 2,855 | 39 | ||||||
Monarch Casino & Resort = | 703 | 8 | ||||||
Monro Muffler Brake 6 | 1,177 | 56 | ||||||
Morgans Hotel Group = | 1,523 | 12 | ||||||
Movado Group = | 987 | 11 | ||||||
Multimedia Games = | 1,625 | 6 | ||||||
National American Universal Holdings | 463 | 3 | ||||||
National Cinemedia | 2,825 | 52 | ||||||
National Presto Industries | 292 | 33 | ||||||
New York & Company = | 1,324 | 4 | ||||||
Nexstar Broadcasting Group = | 635 | 4 | ||||||
NutriSystem 6 | 1,872 | 36 | ||||||
O’Charleys = | 1,013 | 8 | ||||||
OfficeMax = | 5,034 | 89 | ||||||
Orbitz Worldwide = | 1,171 | 8 | ||||||
Orient-Express Hotels, Class A = | 5,275 | 67 | ||||||
Outdoor Channel Holdings = | 886 | 5 | ||||||
Overstock.com = 6 | 955 | 13 | ||||||
Oxford Industries | 833 | 19 | ||||||
P.F. Chang’s China Bistro 6 | 1,406 | 65 | ||||||
Pacific Sunwear of California = 6 | 3,821 | 23 | ||||||
Papa John’s International = 6 | 1,271 | 33 | ||||||
Peet’s Coffee & Tea = 6 | 696 | 27 | ||||||
Penske Automotive Group = | 2,624 | 35 | ||||||
Pep Boys | 2,969 | 35 | ||||||
Perry Ellis International = 6 | 687 | 15 | ||||||
PetMed Express 6 | 1,380 | 21 | ||||||
Pier 1 Imports = 6 | 6,204 | 54 | ||||||
Pinnacle Entertainment = | 3,662 | 47 | ||||||
Playboy Enterprises, Class B = | 1,374 | 7 | ||||||
Polaris Industries 6 | 1,849 | 131 | ||||||
Pool 6 | 2,949 | 59 | ||||||
Pre-Paid Legal Services = 6 | 482 | 29 | ||||||
Primedia | 991 | 4 | ||||||
Princeton Review = | 1,107 | 2 | ||||||
Quiksilver = | 7,811 | 33 | ||||||
R.G. Barry | 502 | 5 | ||||||
Radio One = | 1,860 | 2 | ||||||
RC2 = 6 | 1,303 | 27 | ||||||
ReachLocal = 6 | 285 | 5 | ||||||
Red Lion Hotels = | 811 | 6 | ||||||
Red Robin Gourmet Burgers = | 947 | 19 | ||||||
Regis 6 | 3,483 | 71 | ||||||
Rent-A-Center | 3,905 | 98 | ||||||
Rentrak = | 575 | 16 | ||||||
Retail Ventures = | 1,370 | 19 | ||||||
Ruby Tuesday = 6 | 3,953 | 48 | ||||||
Rue21 = 6 | 871 | 23 | ||||||
Ruth’s Hospitality Group = | 1,689 | 8 | ||||||
Ryland Group 6 | 2,624 | 39 | ||||||
Saks = 6 | 7,694 | 86 | ||||||
Sally Beauty Holdings = 6 | 5,729 | 70 | ||||||
Scientific Games, Class A = | 3,859 | 30 | ||||||
Sealy = 6 | 2,753 | 7 | ||||||
Select Comfort = 6 | 3,242 | 27 | ||||||
Shiloh Industries = | 309 | 3 | ||||||
Shoe Carnival = | 516 | 12 | ||||||
Shuffle Master = 6 | 3,271 | 31 | ||||||
Shutterfly = 6 | 1,594 | 48 | ||||||
Sinclair Broadcast Group, Class A = | 2,843 | 23 | ||||||
Skechers U.S.A., Class A = 6 | 2,021 | 39 | ||||||
Skyline | 389 | 7 | ||||||
Smith & Wesson = 6 | 3,546 | 13 | ||||||
Sonic = | 3,703 | 33 | ||||||
Sonic Automotive, Class A = | 2,366 | 26 | ||||||
Sotheby’s Holdings, Class A 6 | 3,978 | 174 | ||||||
Spartan Motors | 1,978 | 10 | ||||||
Speedway Motorsports | 791 | 12 | ||||||
Stage Stores | 2,314 | 31 | ||||||
Standard Motor Products | 1,163 | 12 | ||||||
Standard-Pacific = | 6,344 | 23 | ||||||
Stein Mart = | 1,558 | 15 | ||||||
Steiner Leisure = | 920 | 36 | ||||||
Steinway Musical Instruments = | 337 | 6 | ||||||
Steven Madden = | 1,492 | 63 | ||||||
Stewart Enterprises, Class A | 4,830 | 27 | ||||||
Stoneridge = | 918 | 10 | ||||||
Sturm, Ruger & Company 6 | 1,161 | 18 |
The accompanying notes are an integral part of the financial statements.
26 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Summer Infant = | 640 | $ | 5 | |||||
Superior Industries International | 1,409 | 25 | ||||||
Supermedia = | 760 | 5 | ||||||
Systemax | 607 | 8 | ||||||
Talbots = 6 | 4,166 | 41 | ||||||
Tenneco = | 3,595 | 117 | ||||||
Texas Roadhouse = 6 | 3,050 | 47 | ||||||
Timberland, Class A = | 2,477 | 52 | ||||||
True Religion Apparel = 6 | 1,552 | 32 | ||||||
Tuesday Morning = | 1,760 | 8 | ||||||
U.S. Auto Parts Network = | 601 | 5 | ||||||
ULTA = | 1,864 | 57 | ||||||
Under Armour, Class A = 6 | 2,020 | 94 | ||||||
Unifi = | 2,449 | 12 | ||||||
UniFirst | 835 | 38 | ||||||
Universal Electronics = | 822 | 17 | ||||||
Universal Technical Institute | 1,187 | 23 | ||||||
Vail Resorts = 6 | 2,151 | 87 | ||||||
Valassis Communications = | 2,932 | 97 | ||||||
Value Line 6 | 78 | 1 | ||||||
Vitacost.com = | 852 | 5 | ||||||
Vitamin Shoppe = 6 | 946 | 26 | ||||||
Volcom = 6 | 1,151 | 20 | ||||||
Warnaco Group = 6 | 2,635 | 140 | ||||||
Warner Music Group = 6 | 2,654 | 14 | ||||||
West Marine = | 871 | 9 | ||||||
Westwood One = 6 | 312 | 3 | ||||||
Wet Seal, Class A = | 5,912 | 21 | ||||||
Weyco Group | 424 | 11 | ||||||
Winmark | 142 | 5 | ||||||
Winnebago Industries = | 1,774 | 18 | ||||||
Wolverine World Wide | 2,943 | 86 | ||||||
World Wrestling Entertainment 6 | 1,243 | 17 | ||||||
Zumiez = 6 | 1,151 | 30 | ||||||
8,716 | ||||||||
Consumer Staples – 2.8% | ||||||||
Alico | 212 | 5 | ||||||
Alliance One International = | 5,484 | 24 | ||||||
Andersons | 1,110 | 44 | ||||||
Arden Group, Class A | 40 | 3 | ||||||
B & G Foods | 2,821 | 35 | ||||||
Boston Beer, Class A = | 457 | 33 | ||||||
Bridgford Foods | 105 | 1 | ||||||
Calavo Growers | 562 | 12 | ||||||
Cal-Maine Foods 6 | 761 | 22 | ||||||
Casey’s General Stores | 2,289 | 95 | ||||||
Cellu Tissue Holdings = | 492 | 6 | ||||||
Central Garden & Pet, Class A = | 3,360 | 35 | ||||||
Chiquita Brands International = | 2,716 | 36 | ||||||
Coca-Cola Bottling | 276 | 15 | ||||||
Darling International = | 5,014 | 50 | ||||||
Diamond Foods 6 | 1,295 | 57 | ||||||
Dole Food = 6 | 2,131 | 20 | ||||||
Elizabeth Arden = | 1,378 | 28 | ||||||
Farmer Brothers | 339 | 6 | ||||||
Fresh Del Monte Produce = | 2,354 | 52 | ||||||
Great Atlantic & Pacific Tea = 6 | 1,990 | 7 | ||||||
Griffin Land & Nurseries | 186 | 5 | ||||||
Hain Celestial Group = 6 | 2,430 | 60 | ||||||
Harbinger Group = | 551 | 3 | ||||||
Heckmann = | 4,879 | 20 | ||||||
Imperial Sugar | 698 | 9 | ||||||
Ingles Markets, Class A | 775 | 14 | ||||||
Inter Parfums | 761 | 13 | ||||||
J&J Snack Foods | 802 | 34 | ||||||
John B. Sanflippo & Son = | 469 | 6 | ||||||
Lancaster Colony 6 | 1,148 | 57 | ||||||
Lance | 1,534 | 35 | ||||||
Lifeway Foods = | 263 | 3 | ||||||
Limoneira 6 | 481 | 10 | ||||||
Medifast = 6 | 791 | 19 | ||||||
MGP Ingredients | 651 | 6 | ||||||
Nash-Finch | 746 | 31 | ||||||
National Beverage 6 | 528 | 8 | ||||||
Natures Sunshine Product = 6 | 451 | 4 | ||||||
Nu Skin Enterprises, Class A | 2,901 | 89 | ||||||
Nutraceutical International = | 664 | 11 | ||||||
Oil-Dri Corporation of America | 313 | 7 | ||||||
Pantry = | 1,371 | 27 | ||||||
Pilgrims Pride = 6 | 2,886 | 18 | ||||||
Prestige Brand Holdings = | 2,483 | 27 | ||||||
PriceSmart | 974 | 29 | ||||||
Revlon = 6 | 634 | 7 | ||||||
Rite Aid = 6 | 33,082 | 30 | ||||||
Ruddick | 2,447 | 85 | ||||||
Sanderson Farms | 1,239 | 52 | ||||||
Schiff Nutrition International | 523 | 4 | ||||||
Seneca Foods = 6 | 454 | 10 | ||||||
Smart Balance = 6 | 3,643 | 13 | ||||||
Spartan Stores 6 | 1,354 | 20 | ||||||
Spectrum Brands Holdings = | 1,080 | 31 | ||||||
Star Scientific = 6 | 5,723 | 11 | ||||||
Susser Holdings = | 421 | 6 | ||||||
Synutra International = 6 | 1,097 | 12 | ||||||
The Female Health | 1,058 | 6 | ||||||
Tootsie Roll Industries 6 | 1,427 | 37 | ||||||
TreeHouse Foods = 6 | 1,923 | 90 | ||||||
United Natural Foods = | 2,563 | 92 | ||||||
Universal 6 | 1,425 | 59 | ||||||
USANA Health Sciences = | 358 | 16 | ||||||
Vector Group 6 | 2,410 | 45 | ||||||
Village Super Market | 371 | 11 | ||||||
WD-40 Company | 962 | 35 | ||||||
Weis Markets | 618 | 24 | ||||||
Winn Dixie Stores = | 3,322 | 22 | ||||||
1,849 | ||||||||
Energy – 5.3% | ||||||||
Abraxas Petroleum = | 3,991 | 12 | ||||||
Allis Chalmers Energy = | 2,214 | 11 | ||||||
Alon USA Energy 6 | 454 | 3 | ||||||
American Oil & Gas = 6 | 2,982 | 26 | ||||||
Apco Oil & Gas International | 557 | 21 | ||||||
Approach Resources = | 732 | 11 | ||||||
ATP Oil & Gas = 6 | 2,640 | 38 | ||||||
Basic Energy Services = | 1,377 | 15 | ||||||
Berry Petroleum, Class A 6 | 3,068 | 105 | ||||||
Bill Barrett = | 2,723 | 103 | ||||||
BPZ Energy = 6 | 5,644 | 21 | ||||||
Brigham Exploration = | 6,907 | 146 | ||||||
Bristow Group = | 2,124 | 82 | ||||||
Cal Dive International = | 5,591 | 28 | ||||||
Callon Petroleum = 6 | 1,706 | 8 | ||||||
Camac Energy = 6 | 2,828 | 7 | ||||||
Carbo Ceramics 6 | 1,158 | 97 | ||||||
Carrizo Oil & Gas = | 1,846 | 44 | ||||||
Cheniere Energy = 6 | 3,296 | 11 | ||||||
Clayton Williams Energy = | 358 | 21 | ||||||
Clean Energy Fuels = 6 | 2,333 | 34 | ||||||
Cloud Peak Energy = | 1,852 | 32 | ||||||
Complete Production Services = | 4,614 | 108 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 27
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Contango Oil & Gas Company = | 727 | $ | 38 | |||||
Contango ORE = ⊡ | 73 | — | ||||||
Crosstex Energy = 6 | 2,215 | 18 | ||||||
CVR Energy = | 1,348 | 13 | ||||||
Dawson Geophysical = | 474 | 12 | ||||||
Delek US Holdings 6 | 731 | 5 | ||||||
Delta Petroleum = 6 | 10,847 | 8 | ||||||
DHT Maritime | 3,026 | 13 | ||||||
Dril-Quip = 6 | 2,015 | 139 | ||||||
Endeavour International = 6 | 8,368 | 12 | ||||||
Energy Partners = | 1,717 | 19 | ||||||
Energy XXI = 6 | 3,005 | 65 | ||||||
Evolution Petroleum = | 876 | 5 | ||||||
FX Energy = | 2,469 | 12 | ||||||
Gastar Exploration = | 2,588 | 10 | ||||||
General Maritime 6 | 4,177 | 16 | ||||||
Georesources = 6 | 770 | 13 | ||||||
Global Geophysical Services = | 445 | 3 | ||||||
Global Industries = | 6,083 | 35 | ||||||
GMX Resources = 6 | 1,880 | 8 | ||||||
Golar LNG | 2,055 | 27 | ||||||
Goodrich Petroleum = | 1,493 | 20 | ||||||
Green Plains Renewable Energy = 6 | 951 | 11 | ||||||
Gulf Island Fabrication | 849 | 19 | ||||||
Gulfmark Offshore, Class A = | 1,311 | 39 | ||||||
Gulfport Energy = | 1,536 | 26 | ||||||
Hallador Energy Company 6 | 225 | 3 | ||||||
Harvest Natural Resources = 6 | 1,993 | 25 | ||||||
Helix Energy Solutions Group = | 6,205 | 79 | ||||||
Hercules Offshore = | 6,992 | 16 | ||||||
Hornbeck Offshore Services = 6 | 1,348 | 30 | ||||||
Houston American Energy 6 | 1,070 | 15 | ||||||
International Coal Group = 6 | 7,788 | 44 | ||||||
Ion Geophysical = | 7,762 | 38 | ||||||
Isramco = | 65 | 4 | ||||||
James River Coal = 6 | 1,684 | 29 | ||||||
Key Energy Services = | 7,536 | 74 | ||||||
Knightsbridge Tankers | 994 | 22 | ||||||
Kodiak Oil & Gas = 6 | 9,227 | 38 | ||||||
L & L Energy = 6 | 980 | 8 | ||||||
Lufkin Industries 6 | 1,724 | 84 | ||||||
Magnum Hunter Resources = | 3,123 | 15 | ||||||
Matrix Service = | 1,512 | 14 | ||||||
McMoRan Exploration = 6 | 4,928 | 83 | ||||||
Miller Petroleum = | 1,070 | 6 | ||||||
Natural Gas Services Group = | 709 | 11 | ||||||
Newpark Resources = | 5,275 | 31 | ||||||
Nordic American Tanker Shipping 6 | 2,573 | 67 | ||||||
Northern Oil & Gas = | 2,620 | 52 | ||||||
Oasis Petroleum = 6 | 2,478 | 53 | ||||||
Overseas Shipholding Group | 1,517 | 51 | ||||||
OYO Geospace = | 247 | 15 | ||||||
Panhandle Oil And Gas | 398 | 10 | ||||||
Parker Drilling = | 7,077 | 30 | ||||||
Patriot Coal = 6 | 4,638 | 63 | ||||||
Penn Virginia | 2,697 | 40 | ||||||
Petroleum Development = 6 | 1,173 | 37 | ||||||
PetroQuest Energy = | 3,243 | 18 | ||||||
PHI = | 793 | 14 | ||||||
Pioneer Drilling = | 3,212 | 20 | ||||||
RAM Energy Resources = | 3,292 | 5 | ||||||
Rentech = 6 | 12,797 | 15 | ||||||
Resolute Energy = | 2,254 | 27 | ||||||
Rex Energy = | 1,903 | 23 | ||||||
Rex Stores = | 493 | 8 | ||||||
Rosetta Resources = | 3,188 | 76 | ||||||
RPC | 1,869 | 41 | ||||||
Scorpio Tankers = | 769 | 9 | ||||||
Seahawk Drilling = | 636 | 6 | ||||||
Ship Finance International 6 | 2,653 | 53 | ||||||
Stone Energy = | 2,516 | 39 | ||||||
Swift Energy = 6 | 2,281 | 73 | ||||||
Syntroleum = | 3,848 | 7 | ||||||
T-3 Energy Services = | 767 | 26 | ||||||
Teekay Tankers, Class A 6 | 1,605 | 19 | ||||||
Tesco = | 1,791 | 23 | ||||||
TETRA Technologies = | 4,589 | 45 | ||||||
Transatlantic Petroleum = | 8,739 | 27 | ||||||
Union Drilling = | 761 | 3 | ||||||
Uranium Energy = 6 | 3,595 | 14 | ||||||
USEC = 6 | 6,851 | 37 | ||||||
Vaalco Energy = | 3,605 | 21 | ||||||
Vantage Drilling = 6 | 7,380 | 13 | ||||||
Venoco = 6 | 1,187 | 18 | ||||||
W&T Offshore 6 | 2,071 | 23 | ||||||
Warren Resources = 6 | 4,309 | 18 | ||||||
Western Refining = 6 | 2,483 | 16 | ||||||
Willbros Group = | 2,814 | 25 | ||||||
World Fuel Services | 3,489 | 98 | ||||||
3,517 | ||||||||
Financials – 19.8% | ||||||||
1st Source | 834 | 15 | ||||||
1st United Bancorp = | 1,301 | 8 | ||||||
Abington Bancorp | 1,325 | 14 | ||||||
Acadia Realty Trust – REIT | 2,418 | 46 | ||||||
Advance America Cash Advance Centers | 3,263 | 16 | ||||||
Agree Realty – REIT | 516 | 13 | ||||||
Alexander’s – REIT 6 | 132 | 50 | ||||||
Alliance Financial | 251 | 8 | ||||||
Alterra Capital Holdings 6 | 5,717 | 115 | ||||||
Ambac Financial Group = 6 | 17,524 | 15 | ||||||
American Campus Communities – REIT 6 | 3,859 | 122 | ||||||
American Capital = | 20,403 | 142 | ||||||
American Capital Agency – REIT | 2,498 | 72 | ||||||
American Equity Investment Life Holding 6 | 3,463 | 38 | ||||||
American National Bankshares | 372 | 8 | ||||||
American Physicians Service Group | 388 | 13 | ||||||
American Safety Insurance Holdings = | 576 | 11 | ||||||
Ameris Bancorp = 6 | 1,418 | 13 | ||||||
Amerisafe = | 1,150 | 22 | ||||||
Ames National 6 | 349 | 7 | ||||||
Amtrust Financial Services | 1,386 | 21 | ||||||
Anworth Mortgage Asset – REIT | 6,976 | 49 | ||||||
Apollo Commercial Real Estate Finance – REIT | 1,040 | 17 | ||||||
Apollo Investment 6 | 11,503 | 126 | ||||||
Argo Group International Holdings | 1,853 | 64 | ||||||
Arlington Asset Investment, Class A | 400 | 9 | ||||||
Arrow Financial | 532 | 13 | ||||||
Artio Global Investments | 1,672 | 26 | ||||||
Ashford Hospitality Trust – REIT = | 2,409 | 24 | ||||||
Asset Acceptance Capital = | 966 | 6 | ||||||
Associated Estates Realty – REIT | 2,449 | 34 | ||||||
Asta Funding | 627 | 5 | ||||||
Astoria Financial 6 | 5,124 | 64 | ||||||
Avatar Holdings = | 475 | 9 | ||||||
Baldwin & Lyons, Class B | 402 | 10 | ||||||
BancFirst | 411 | 17 | ||||||
Banco Latinoamericano de Exportaciones | 1,670 | 26 | ||||||
Bancorp Bank = | 1,208 | 9 | ||||||
Bancorp Rhode Island | 222 | 6 |
The accompanying notes are an integral part of the financial statements.
28 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Bank Mutual | 3,041 | $ | 15 | |||||
Bank of Marin Bancorp 6 | 316 | 11 | ||||||
Bank of the Ozarks 6 | 794 | 30 | ||||||
BankFinancial | 1,099 | 10 | ||||||
Beneficial Mutual Bancorp = | 1,775 | 13 | ||||||
Berkshire Hills Bancorp | 836 | 16 | ||||||
BGC Partners, Class A | 3,385 | 23 | ||||||
BioMed Realty Trust – REIT | 7,745 | 142 | ||||||
Blackrock Kelso Capital | 3,878 | 45 | ||||||
BofI Holding = 6 | 418 | 5 | ||||||
Boston Private Financial Holdings | 4,134 | 24 | ||||||
Bridge Bancorp | 379 | 9 | ||||||
Brookline Bancorp | 3,346 | 33 | ||||||
Bryn Mawr Bank | 373 | 6 | ||||||
Calamos Asset Management, Class A 6 | 1,416 | 17 | ||||||
California First National Bancorp | 112 | 1 | ||||||
Camden National | 465 | 16 | ||||||
Capital City Bank Group | 662 | 8 | ||||||
Capital Southwest | 178 | 17 | ||||||
CapLease – REIT | 3,455 | 20 | ||||||
Capstead Mortgage – REIT | 3,873 | 44 | ||||||
Cardinal Financial | 1,642 | 16 | ||||||
Cardtronics = | 1,600 | 27 | ||||||
Cash America International | 1,754 | 62 | ||||||
Cathay General Bancorp 6 | 4,756 | 65 | ||||||
CBL & Associates Properties – REIT 6 | 8,193 | 128 | ||||||
Cedar Shopping Centers – REIT | 3,240 | 20 | ||||||
Center Financial = 6 | 2,107 | 11 | ||||||
Centerstate Banks of Florida | 1,121 | 8 | ||||||
Century Bancorp | 215 | 5 | ||||||
Chatham Lodging Trust – REIT | 510 | 9 | ||||||
Chemical Financial | 1,312 | 27 | ||||||
Chesapeake Lodging Trust – REIT | 887 | 16 | ||||||
Citizens = 6 | 2,297 | 16 | ||||||
Citizens & Northern 6 | 717 | 10 | ||||||
Citizens Banking = | 23,787 | 16 | ||||||
City Holdings 6 | 936 | 30 | ||||||
Clifton Savings Bancorp | 589 | 5 | ||||||
CNA Surety = | 1,001 | 19 | ||||||
CNB Financial | 722 | 10 | ||||||
CNO Financial Group = 6 | 13,341 | 73 | ||||||
CoBiz Financial 6 | 1,784 | 9 | ||||||
Cogdell Spencer – REIT | 2,552 | 17 | ||||||
Cohen & Steers 6 | 1,049 | 26 | ||||||
Colonial Properties Trust – REIT | 4,158 | 75 | ||||||
Colony Financial – REIT | 870 | 16 | ||||||
Columbia Banking System | 2,360 | 43 | ||||||
Community Bank System 6 | 1,991 | 47 | ||||||
Community Trust Bancorp | 871 | 24 | ||||||
Compass Diversified Trust | 1,964 | 33 | ||||||
CompuCredit Holdings 6 | 641 | 4 | ||||||
Consolidated-Tomoka Land | 330 | 9 | ||||||
Cousins Properties – REIT 6 | 5,348 | 40 | ||||||
Cowen Group = | 2,149 | 8 | ||||||
Crawford & Company = | 1,307 | 3 | ||||||
Credit Acceptance = | 295 | 17 | ||||||
CreXus Investment – REIT | 823 | 10 | ||||||
CVB Financial 6 | 5,177 | 39 | ||||||
Cypress Sharpridge Investments – REIT | 1,873 | 24 | ||||||
Danvers Bancorp | 967 | 15 | ||||||
DCT Industrial Trust – REIT | 12,347 | 62 | ||||||
Delphi Financial Group, Class A 6 | 2,820 | 76 | ||||||
Diamond Hill Investment Group 6 | 143 | 11 | ||||||
DiamondRock Hospitality – REIT 6 | 9,158 | 97 | ||||||
Dime Community Bancshares 6 | 1,574 | 23 | ||||||
Dollar Financial = 6 | 1,410 | 35 | ||||||
Donegal Group, Class A | 937 | 13 | ||||||
Doral Financial = | 1,118 | 2 | ||||||
Duff & Phelps, Class A | 1,618 | 23 | ||||||
DuPont Fabros Technology – REIT | 2,431 | 61 | ||||||
Dynex Capital – REIT | 1,211 | 13 | ||||||
Eagle Bancorp = | 913 | 11 | ||||||
EastGroup Properties – REIT | 1,448 | 59 | ||||||
Education Realty Trust – REIT | 3,421 | 26 | ||||||
eHealth = 6 | 1,461 | 20 | ||||||
EMC Insurance Group | 349 | 7 | ||||||
Employers Holdings | 2,536 | 41 | ||||||
Encore Bancshares = 6 | 477 | 4 | ||||||
Encore Capital Group = | 827 | 17 | ||||||
Enstar Group = | 407 | 33 | ||||||
Enterprise Financial Services | 882 | 9 | ||||||
Entertainment Properties Trust – REIT 6 | 2,792 | 129 | ||||||
Epoch Holdings | 774 | 10 | ||||||
Equity Lifestyle Properties – REIT | 1,541 | 88 | ||||||
Equity One – REIT 6 | 2,278 | 43 | ||||||
ESB Financial 6 | 560 | 8 | ||||||
Essa Bancorp | 921 | 12 | ||||||
Evercore Partners, Class A 6 | 929 | 28 | ||||||
Excel Trust – REIT | 889 | 10 | ||||||
Extra Space Storage – REIT | 5,268 | 85 | ||||||
EZCORP, Class A = | 2,633 | 57 | ||||||
F.N.B. | 6,873 | 58 | ||||||
FBL Financial Group, Class A | 927 | 24 | ||||||
FBR Capital Markets = | 3,120 | 11 | ||||||
Federal Agricultural Mortgage, Class C 6 | 572 | 7 | ||||||
FelCor Lodging Trust – REIT = | 5,758 | 35 | ||||||
Fifth Street Finance 6 | 3,232 | 38 | ||||||
Financial Engines = | 766 | 11 | ||||||
Financial Institutions 6 | 638 | 12 | ||||||
First American Financial | 6,167 | 87 | ||||||
First Bancorp | 532 | 7 | ||||||
First Bancorp – North Carolina | 836 | 11 | ||||||
First Bancorp of Puerto Rico = 6 | 4,898 | 1 | ||||||
First Busey | 3,104 | 14 | ||||||
First Cash Financial Services = | 1,787 | 52 | ||||||
First Commonwealth Financial | 5,188 | 30 | ||||||
First Community Bancshares | 849 | 11 | ||||||
First Financial | 709 | 21 | ||||||
First Financial Bancorp | 3,503 | 59 | ||||||
First Financial Bankshares 6 | 1,269 | 60 | ||||||
First Financial Holdings | 970 | 10 | ||||||
First Industrial Realty Trust – REIT = 6 | 3,755 | 28 | ||||||
First Interstate Bancsystem | 737 | 10 | ||||||
First Marblehead = | 3,286 | 7 | ||||||
First Merchants | 1,514 | 13 | ||||||
First Mercury Financial | 819 | 13 | ||||||
First Midwest Bancorp 6 | 4,463 | 48 | ||||||
First of Long Island | 329 | 8 | ||||||
First Potomac Realty Trust – REIT | 2,285 | 38 | ||||||
First South Bancorp | 443 | 4 | ||||||
FirstMerit | 6,395 | 110 | ||||||
Flagstar Bancorp = 6 | 2,783 | 4 | ||||||
Flagstone Reinsurance Holdings | 2,792 | 30 | ||||||
Flushing Financial 6 | 1,836 | 24 | ||||||
Forestar Real Estate Group = | 2,186 | 37 | ||||||
Fox Chase Bancorp = | 368 | 4 | ||||||
FPIC Insurance Group = | 580 | 21 | ||||||
Franklin Street Properties – REIT | 4,072 | 54 | ||||||
GAMCO Investors | 441 | 19 | ||||||
German American Bancorp 6 | 675 | 11 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 29
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Gerova Financial Group = 6 | 395 | $ | 2 | |||||
Getty Realty – REIT | 1,252 | 36 | ||||||
GFI Group | 4,116 | 20 | ||||||
Glacier Bancorp | 3,966 | 52 | ||||||
Gladstone Capital | 1,286 | 15 | ||||||
Gladstone Commercial – REIT | 523 | 10 | ||||||
Gladstone Investment | 1,347 | 10 | ||||||
Gleacher = | 4,618 | 10 | ||||||
Glimcher Realty Trust – REIT | 5,044 | 38 | ||||||
Global Indemnity = | 817 | 14 | ||||||
Golub Capital BDC | 440 | 7 | ||||||
Government Properties Income Trust – REIT | 1,263 | 34 | ||||||
Great Southern Bancorp 6 | 612 | 14 | ||||||
Greene County Bancshares = 6 | 702 | 3 | ||||||
Greenlight Capital = 6 | 1,625 | 46 | ||||||
Hallmark Financial Services = | 690 | 6 | ||||||
Hancock Holding | 1,725 | 54 | ||||||
Hanmi Financial = 6 | 6,075 | 7 | ||||||
Harleysville Group | 688 | 24 | ||||||
Harris & Harris Group = | 1,831 | 8 | ||||||
Hatteras Financial – REIT 6 | 2,374 | 70 | ||||||
Healthcare Realty Trust – REIT | 3,420 | 83 | ||||||
Heartland Financial USA 6 | 895 | 14 | ||||||
Hercules Technology Growth Capital | 2,155 | 22 | ||||||
Heritage Financial = | 560 | 8 | ||||||
Heritage Financial Group | 129 | 1 | ||||||
Hersha Hospitality Trust – REIT | 7,970 | 49 | ||||||
HFF = | 1,132 | 11 | ||||||
Highwoods Properties – REIT 6 | 4,319 | 143 | ||||||
Hilltop Holdings = | 2,401 | 24 | ||||||
Home Bancorp = | 545 | 7 | ||||||
Home Bancshares | 1,173 | 24 | ||||||
Home Federal Bancorp | 1,019 | 12 | ||||||
Home Properties – REIT 6 | 2,089 | 114 | ||||||
Horace Mann Educators | 2,655 | 50 | ||||||
Hudson Pacific Properties – REIT | 873 | 14 | ||||||
Hudson Valley Holding | 706 | 14 | ||||||
IBERIABANK | 1,616 | 84 | ||||||
Independent Bank 6 | 1,275 | 30 | ||||||
Infinity Property & Casualty | 831 | 43 | ||||||
Inland Real Estate – REIT | 4,287 | 37 | ||||||
International Assets Holding = | 765 | 17 | ||||||
International Bancshares 6 | 3,179 | 54 | ||||||
Invesco Mortgage Capital – REIT | 2,360 | 51 | ||||||
Investment Technology Group = | 2,586 | 37 | ||||||
Investors Bancorp = | 2,905 | 35 | ||||||
Investors Real Estate Trust – REIT 6 | 4,452 | 39 | ||||||
iStar Financial – REIT = | 5,542 | 25 | ||||||
JMP Group | 893 | 6 | ||||||
K Fed Bancorp 6 | 245 | 2 | ||||||
Kansas City Life Insurance | 248 | 8 | ||||||
KBW 6 | 2,125 | 54 | ||||||
Kearny Financial | 899 | 8 | ||||||
Kennedy-Wilson Holdings – REIT = 6 | 1,232 | 13 | ||||||
Kilroy Realty – REIT | 3,223 | 110 | ||||||
Kite Realty Group Trust – REIT | 3,219 | 15 | ||||||
Knight Capital Group, Class A = 6 | 5,669 | 74 | ||||||
LaBranche = | 2,027 | 7 | ||||||
Ladenburg Thalman Financial Services = | 5,412 | 6 | ||||||
Lakeland Bancorp 6 | 1,430 | 13 | ||||||
Lakeland Financial | 890 | 17 | ||||||
LaSalle Hotel Properties – REIT 6 | 4,217 | 100 | ||||||
Lexington Corporate Properties Trust – REIT | 5,879 | 46 | ||||||
Life Partners Holdings 6 | 403 | 7 | ||||||
LTC Properties – REIT | 1,413 | 39 | ||||||
Maiden Holdings | 2,858 | 22 | ||||||
Main Street Capital | 735 | 12 | ||||||
MainSource Financial Group | 1,125 | 9 | ||||||
MarketAxess Holdings | 1,935 | 35 | ||||||
Marlin Business Services = | 509 | 6 | ||||||
MB Financial | 3,029 | 45 | ||||||
MCG Capital | 4,432 | 28 | ||||||
Meadowbrook Insurance Group | 3,503 | 30 | ||||||
Medallion Financial | 806 | 6 | ||||||
Medical Properties Trust – REIT | 6,720 | 75 | ||||||
Merchants Bancshares | 291 | 8 | ||||||
Meridian Interstate Bancorp = | 580 | 6 | ||||||
Metro Bancorp = | 801 | 8 | ||||||
MF Global Holdings = | 6,226 | 49 | ||||||
MFA Financial – REIT | 17,094 | 135 | ||||||
MGIC Investment = 6 | 11,895 | 105 | ||||||
Mid-America Apartment Communities – REIT | 1,721 | 105 | ||||||
Midsouth Bancorp 6 | 396 | 5 | ||||||
MidWestOne Financial Group | 410 | 6 | ||||||
Mission West Properties – REIT | 1,056 | 7 | ||||||
Monmouth Real Estate Investment, Class A – REIT | 1,577 | 13 | ||||||
Montpelier Holdings | 4,271 | 78 | ||||||
MPG Office Trust – REIT = | 2,850 | 8 | ||||||
MVC Capital | 1,371 | 18 | ||||||
Nara Bancorp = | 2,252 | 18 | ||||||
NASB Financial 6 | 288 | 5 | ||||||
National Bankshares 6 | 422 | 11 | ||||||
National Financial Partners = | 2,676 | 37 | ||||||
National Health Investors – REIT | 1,569 | 73 | ||||||
National Interstate | 266 | 6 | ||||||
National Penn Bancshares | 7,628 | 50 | ||||||
National Retail Properties – REIT 6 | 4,874 | 132 | ||||||
National Western Life Insurance, Class A | 151 | 24 | ||||||
Navigators Group = | 650 | 30 | ||||||
NBT Bancorp | 1,990 | 44 | ||||||
Nelnet, Class A | 1,567 | 35 | ||||||
NewAlliance Bancshares | 6,347 | 82 | ||||||
Newcastle Investment – REIT = | 3,680 | 14 | ||||||
Newstar Financial = | 1,688 | 13 | ||||||
NGP Capital Resources | 1,221 | 12 | ||||||
Northfield Bancorp | 1,067 | 12 | ||||||
NorthStar Realty Finance – REIT 6 | 4,477 | 20 | ||||||
Northwest Bancshares | 6,502 | 74 | ||||||
NYMAGIC | 228 | 6 | ||||||
OceanFirst Financial | 479 | 6 | ||||||
Ocwen Financial = | 4,404 | 38 | ||||||
Old National Bancorp | 5,256 | 50 | ||||||
OMEGA Healthcare Investors – REIT | 5,518 | 127 | ||||||
OmniAmerican Bancorp = | 720 | 8 | ||||||
One Liberty Properties, fractional share – REIT | 500 | 8 | ||||||
Oppenheimer Holdings | 576 | 15 | ||||||
optionsXpress Holdings = | 2,576 | 41 | ||||||
Oriental Financial Group | 2,923 | 39 | ||||||
Oritani Financial | 3,297 | 35 | ||||||
Orrstown Financial Services | 384 | 10 | ||||||
Pacific Continental | 1,122 | 9 | ||||||
PacWest Bancorp | 1,625 | 28 | ||||||
Park National | 641 | 42 | ||||||
Parkway Properties – REIT | 1,221 | 19 | ||||||
Peapack-Gladstone Financial | 473 | 6 | ||||||
Pebblebrook Hotel Trust – REIT = | 2,195 | 43 | ||||||
PennantPark Investment | 2,106 | 23 | ||||||
Penns Woods Bancorp 6 | 233 | 8 |
The accompanying notes are an integral part of the financial statements.
30 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Pennsylvania Real Estate Investment Trust – REIT 6 | 3,282 | $ | 47 | |||||
Pennymac Mortgage Investment Trust – REIT | 1,013 | 17 | ||||||
Penson Worldwide = | 1,190 | 6 | ||||||
Peoples Bancorp | 629 | 8 | ||||||
PHH = 6 | 3,316 | 64 | ||||||
Phoenix Companies = | 7,050 | 15 | ||||||
PICO Holdings = | 1,378 | 42 | ||||||
Pinnacle Financial Partners = 6 | 2,002 | 23 | ||||||
Piper Jaffray Companies = | 1,023 | 32 | ||||||
Platinum Underwriters Holdings | 2,687 | 116 | ||||||
PMI Group = | 8,503 | 28 | ||||||
Porter Bancorp | 172 | 2 | ||||||
Portfolio Recovery Associates = 6 | 1,008 | 68 | ||||||
Post Properties – REIT | 2,920 | 89 | ||||||
Potlatch – REIT 6 | 2,423 | 83 | ||||||
Presidential Life | 1,519 | 15 | ||||||
Primerica 6 | 1,428 | 30 | ||||||
Primus Guaranty = | 1,293 | 6 | ||||||
PrivateBancorp 6 | 3,208 | 38 | ||||||
ProAssurance = | 1,928 | 111 | ||||||
Prospect Capital | 3,969 | 39 | ||||||
Prosperity Bancshares | 2,812 | 87 | ||||||
Provident Financial Services | 3,471 | 44 | ||||||
Provident New York Bancorp | 2,388 | 21 | ||||||
PS Business Parks – REIT | 939 | 56 | ||||||
Pzena Investment Management | 470 | 3 | ||||||
Radian Group | 7,980 | 61 | ||||||
RAIT Financial Trust – REIT = 6 | 5,747 | 10 | ||||||
Ramco-Gershenson Properties Trust – REIT | 2,251 | 26 | ||||||
Redwood Trust – REIT 6 | 4,726 | 67 | ||||||
Renasant 6 | 1,227 | 20 | ||||||
Republic Bancorp, Class A | 604 | 12 | ||||||
Resource Capital – REIT | 2,607 | 16 | ||||||
Retail Opportunity Investments | 2,480 | 24 | ||||||
RLI | 1,088 | 62 | ||||||
Rockville Financial | 499 | 6 | ||||||
Rodman & Renshaw Capital Group = | 946 | 3 | ||||||
Roma Financial | 476 | 5 | ||||||
S&T Bancorp 6 | 1,436 | 28 | ||||||
Safeguard Scientifics = | 1,259 | 19 | ||||||
Safety Insurance Group | 803 | 37 | ||||||
Sanders Morris Harris Group | 1,098 | 6 | ||||||
Sandy Spring Bancorp 6 | 1,456 | 25 | ||||||
Saul Centers – REIT | 375 | 16 | ||||||
SCBT Financial 6 | 741 | 23 | ||||||
SeaBright Insurance Holdings | 1,197 | 10 | ||||||
Selective Insurance Group | 3,182 | 54 | ||||||
Sierra Bancorp | 535 | 6 | ||||||
Signature Bank = 6 | 2,475 | 105 | ||||||
Simmons First National, Class A | 1,009 | 27 | ||||||
Solar Capital | 339 | 8 | ||||||
Southside Bancshares 6 | 823 | 15 | ||||||
Southwest Bancorp | 1,164 | 12 | ||||||
Sovran Self Storage – REIT | 1,676 | 65 | ||||||
Starwood Property Trust – REIT | 2,823 | 57 | ||||||
State Auto Financial | 866 | 14 | ||||||
State Bancorp | 777 | 7 | ||||||
StellarOne | 1,384 | 18 | ||||||
Sterling Bancorp | 1,617 | 15 | ||||||
Sterling Bancshares 6 | 5,441 | 29 | ||||||
Stewart Information Services 6 | 987 | 11 | ||||||
Stifel Financial = 6 | 2,017 | 96 | ||||||
Strategic Hotels & Resorts – REIT = | 8,341 | 38 | ||||||
Student Loan | 237 | 7 | ||||||
Suffolk Bancorp 6 | 629 | 16 | ||||||
Sun Communities – REIT 6 | 1,127 | 37 | ||||||
Sunstone Hotel Investors – REIT = | 5,920 | 64 | ||||||
Susquehanna Bancshares | 7,838 | 62 | ||||||
SVB Financial Group = | 2,484 | 108 | ||||||
SWS Group | 1,467 | 10 | ||||||
SY Bancorp 6 | 841 | 21 | ||||||
Tanger Factory Outlet Centers – REIT 6 | 2,443 | 117 | ||||||
Taylor Capital Group = | 569 | 7 | ||||||
Tejon Ranch = 6 | 716 | 16 | ||||||
Terreno Realty – REIT = | 526 | 10 | ||||||
Territorial Bancorp | 747 | 13 | ||||||
Texas Capital Bancshares = 6 | 2,172 | 39 | ||||||
THL Credit 6 | 534 | 7 | ||||||
Thomas Properties Group = | 2,090 | 8 | ||||||
TICC Capital | 1,595 | 16 | ||||||
Tompkins Trustco | 501 | 19 | ||||||
Tower Bancorp | 290 | 6 | ||||||
Tower Group 6 | 2,467 | 60 | ||||||
Townebank Portsmouth 6 | 1,395 | 20 | ||||||
TradeStation Group = | 2,424 | 13 | ||||||
Triangle Capital 6 | 879 | 14 | ||||||
TriCo Bancshares | 872 | 14 | ||||||
TrustCo Bank Corporation of New York | 4,675 | 25 | ||||||
Trustmark 6 | 3,499 | 77 | ||||||
Two Harbors Investment – REIT | 1,547 | 14 | ||||||
UMB Financial | 1,882 | 70 | ||||||
UMH Properties – REIT | 534 | 6 | ||||||
Umpqua Holdings 6 | 6,795 | 75 | ||||||
Union First Market Bankshares | 1,058 | 14 | ||||||
United Bankshares 6 | 2,328 | 62 | ||||||
United Community Banks = | 5,592 | 11 | ||||||
United Financial Bancorp | 965 | 13 | ||||||
United Fire & Casualty | 1,323 | 26 | ||||||
Universal Health Realty Income Trust – REIT | 866 | 32 | ||||||
Universal Insurance Holdings | 805 | 4 | ||||||
Univest Corporation of Pennsylvania | 1,002 | 19 | ||||||
Urstadt Biddle Properties – REIT, Class A | 1,658 | 32 | ||||||
U-Store-It Trust – REIT | 5,546 | 48 | ||||||
ViewPoint Financial Group | 852 | 8 | ||||||
Virginia Comm Bancorp = | 1,191 | 6 | ||||||
Virtus Investment Partners = | 353 | 13 | ||||||
Walter Investment Management – REIT | 2,136 | 39 | ||||||
Washington Banking | 908 | 11 | ||||||
Washington Real Estate Investment Trust – REIT | 3,413 | 109 | ||||||
Washington Trust Bancorp | 789 | 16 | ||||||
Waterstone Financial = | 389 | 1 | ||||||
Webster Financial | 3,874 | 66 | ||||||
WesBanco | 1,463 | 24 | ||||||
West Bancorporation = | 945 | 6 | ||||||
West Coast Bancorp – Oregon = 6 | 5,562 | 15 | ||||||
Westamerica Bancorporation 6 | 1,687 | 84 | ||||||
Western Alliance Bancorp = | 3,885 | 23 | ||||||
Westfield Financial | 1,724 | 15 | ||||||
Westwood Holdings | 342 | 12 | ||||||
Whitney Holding | 5,724 | 47 | ||||||
Wilshire Bancorp 6 | 1,310 | 9 | ||||||
Winthrop Realty Trust – REIT | 1,351 | 18 | ||||||
Wintrust Financial | 1,822 | 55 | ||||||
World Acceptance = 6 | 950 | 41 | ||||||
WSFS Financial | 290 | 11 | ||||||
13,098 | ||||||||
Healthcare – 11.9% | ||||||||
Abaxis = | 1,335 | 32 | ||||||
ABIOMED = 6 | 1,993 | 21 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 31
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Accelrys = | 3,074 | $ | 22 | |||||
Accretive Health = | 690 | 7 | ||||||
Accuray = | 3,034 | 20 | ||||||
Acorda Therapeutics = 6 | 2,319 | 63 | ||||||
Acura Pharmaceuticals = 6 | 442 | 1 | ||||||
Affymax = | 1,220 | 6 | ||||||
Affymetrix = | 4,311 | 19 | ||||||
AGA Medical Holdings = | 831 | 17 | ||||||
Air Methods = | 647 | 26 | ||||||
Akorn = 6 | 3,092 | 14 | ||||||
Albany Molecular Research = | 1,421 | 9 | ||||||
Alexza Pharmaceuticals = 6 | 2,302 | 2 | ||||||
Align Technology = 6 | 3,470 | 59 | ||||||
Alimera Sciences = | 389 | 4 | ||||||
Alkermes = | 5,764 | 67 | ||||||
Alliance Imaging = | 1,601 | 6 | ||||||
Allied Healthcare International = | 2,743 | 8 | ||||||
Allos Therapeutics = 6 | 4,665 | 19 | ||||||
Almost Family = | 486 | 17 | ||||||
Alnylam Pharmaceuticals = | 2,197 | 29 | ||||||
Alphatec Holdings = | 3,015 | 7 | ||||||
AMAG Pharmaceuticals = | 1,268 | 20 | ||||||
Amedisys = 6 | 1,667 | 42 | ||||||
America Service Group | 504 | 8 | ||||||
American Dental Partners = | 789 | 9 | ||||||
American Medical Systems = 6 | 4,502 | 91 | ||||||
AMERIGROUP = | 3,069 | 128 | ||||||
AMN Healthcare Services = | 1,944 | 10 | ||||||
Amsurg, Class A = | 1,869 | 34 | ||||||
Analogic | 780 | 36 | ||||||
AngioDynamics = | 1,490 | 21 | ||||||
Antares Pharma = | 4,180 | 6 | ||||||
Anthera Pharmaceuticals = | 341 | 2 | ||||||
Aoxing Pharmaceutical = 6 | 1,434 | 4 | ||||||
Ardea Biosciences = 6 | 813 | 17 | ||||||
Arena Pharmaceuticals = 6 | 6,657 | 11 | ||||||
Ariad Pharmaceuticals = 6 | 6,575 | 24 | ||||||
ArQule = | 2,524 | 14 | ||||||
Array BioPharma = | 3,152 | 10 | ||||||
ArthroCare = 6 | 1,599 | 44 | ||||||
AspenBio Pharma = 6 | 2,120 | 1 | ||||||
Assisted Living Concepts, Class A = | 584 | 19 | ||||||
Athenahealth = 6 | 1,964 | 79 | ||||||
Atrion | 81 | 13 | ||||||
Auxilium Pharmaceuticals = 6 | 2,475 | 61 | ||||||
AVANIR Pharmaceuticals = 6 | 4,278 | 10 | ||||||
Aveo Pharmaceuticals = | 550 | 8 | ||||||
AVI BioPharma = 6 | 6,550 | 14 | ||||||
BioCryst Pharmaceuticals = | 1,713 | 9 | ||||||
Biodel = 6 | 928 | 3 | ||||||
Biomimetic Therapeutics = | 777 | 9 | ||||||
Bio-Reference Laboratories = | 1,446 | 31 | ||||||
BioSante Pharmaceuticals = 6 | 4,166 | 6 | ||||||
BioScrip = 6 | 2,551 | 14 | ||||||
Biospecifics Technologies = 6 | 236 | 7 | ||||||
BioTime = 6 | 1,262 | 8 | ||||||
BMP Sunstone = | 1,974 | 19 | ||||||
Bruker BioSciences = 6 | 4,311 | 65 | ||||||
Cadence Pharmaceuticals = 6 | 1,557 | 14 | ||||||
Caliper Life Sciences = 6 | 2,662 | 12 | ||||||
Cambrex = | 1,692 | 8 | ||||||
Cantel Medical | 726 | 13 | ||||||
Capital Senior Living = | 1,382 | 8 | ||||||
Caraco Pharmaceutical Laboratories = | 511 | 3 | ||||||
Cardionet = | 1,428 | 7 | ||||||
Catalyst Health Solutions = | 2,237 | 85 | ||||||
Celera = 6 | 4,990 | 28 | ||||||
Celldex Therapeutics = 6 | 1,886 | 8 | ||||||
Centene = | 2,912 | 65 | ||||||
Cepheid = 6 | 3,533 | 74 | ||||||
Cerus = 6 | 2,308 | 8 | ||||||
Chelsea Therapeutics International = | 2,278 | 12 | ||||||
Chemed | 1,345 | 79 | ||||||
Chindex International = 6 | 812 | 11 | ||||||
Clarient = | 3,263 | 16 | ||||||
Clinical Data = 6 | 657 | 13 | ||||||
Codexis = | 362 | 4 | ||||||
Computer Programs & Systems | 538 | 25 | ||||||
Conceptus = 6 | 1,861 | 26 | ||||||
CONMED = | 1,771 | 39 | ||||||
Continucare = | 1,786 | 8 | ||||||
Corcept Therapeutics = | 1,500 | 5 | ||||||
Cornerstone Therapeutics = | 398 | 3 | ||||||
Corvel = | 413 | 19 | ||||||
Cross Country Healthcare = | 1,784 | 13 | ||||||
CryoLife = | 1,618 | 10 | ||||||
Cubist Pharmaceuticals = 6 | 3,514 | 82 | ||||||
Cumberland Pharmaceuticals = | 733 | 5 | ||||||
Curis = 6 | 4,487 | 6 | ||||||
Cutera = | 811 | 6 | ||||||
Cyberonics = | 1,667 | 46 | ||||||
Cynosure = | 518 | 5 | ||||||
Cypress Bioscience = | 2,320 | 9 | ||||||
Cytokinetics = 6 | 2,526 | 7 | ||||||
Cytori Therapeutics = 6 | 2,721 | 13 | ||||||
Cytrx = 6 | 6,476 | 6 | ||||||
Delcath Systems = 6 | 2,589 | 22 | ||||||
DepoMed = | 3,100 | 15 | ||||||
DexCom = | 3,409 | 47 | ||||||
Dionex = | 1,066 | 95 | ||||||
Durect = | 5,012 | 13 | ||||||
Dyax = | 5,436 | 13 | ||||||
Dynavax Technologies = | 4,249 | 8 | ||||||
Dynavox = | 556 | 3 | ||||||
Emergent Biosolutions = 6 | 995 | 18 | ||||||
Emeritus = | 1,144 | 21 | ||||||
Endologix = 6 | 2,945 | 16 | ||||||
Ensign Group | 671 | 13 | ||||||
Enzo Biochem = | 1,884 | 8 | ||||||
Enzon Pharmaceuticals = 6 | 2,939 | 33 | ||||||
eResearchTechnology = | 2,513 | 19 | ||||||
Eurand = | 1,086 | 12 | ||||||
Exact Sciences = | 2,109 | 15 | ||||||
Exactech = | 442 | 7 | ||||||
Exelixis = | 6,492 | 29 | ||||||
Five Star Quality Care = | 1,874 | 10 | ||||||
Furiex Pharmaceuticals = | 521 | 6 | ||||||
Genomic Health = 6 | 816 | 12 | ||||||
Genoptix = | 1,028 | 18 | ||||||
Gentiva Health Services = | 1,681 | 39 | ||||||
Geron = 6 | 5,430 | 30 | ||||||
Greatbatch = 6 | 1,414 | 31 | ||||||
Haemonetics = | 1,490 | 81 | ||||||
Halozyme Therapeutics = | 4,126 | 30 | ||||||
Hanger Orthopedic Group = 6 | 1,516 | 28 | ||||||
Hansen Medical = 6 | 2,203 | 4 | ||||||
Healthsouth = | 5,554 | 101 | ||||||
Healthspring = | 3,439 | 100 | ||||||
Healthways = | 2,044 | 21 | ||||||
Heartware International = 6 | 556 | 38 |
The accompanying notes are an integral part of the financial statements.
32 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Hi-Tech Pharmaceutical = | 589 | $ | 13 | |||||
HMS Holdings = | 1,577 | 95 | ||||||
ICU Medical = | 693 | 25 | ||||||
Idenix Pharmaceuticals = | 2,119 | 9 | ||||||
Immucor = | 4,147 | 72 | ||||||
ImmunoGen = 6 | 4,021 | 33 | ||||||
Immunomedics = 6 | 3,946 | 16 | ||||||
Impax Laboratories = | 3,700 | 70 | ||||||
Incyte = 6 | 5,247 | 87 | ||||||
Indevus Pharmaceuticals, escrow shares = ¥ ⊡ | 4,270 | — | ||||||
Infinity Pharmaceuticals = | 1,093 | 6 | ||||||
Inhibitex = | 2,920 | 6 | ||||||
Inovio Pharmaceuticals = | 4,759 | 5 | ||||||
Inspire Pharmaceuticals = | 3,705 | 26 | ||||||
Insulet = 6 | 2,381 | 38 | ||||||
Integra LifeSciences = | 1,149 | 49 | ||||||
InterMune = | 2,691 | 35 | ||||||
Invacare | 1,736 | 47 | ||||||
IPC The Hospitalist = 6 | 982 | 31 | ||||||
IRIS International = | 1,070 | 10 | ||||||
Ironwood Pharmaceuticals = 6 | 1,146 | 13 | ||||||
Isis Pharmaceuticals = | 5,679 | 52 | ||||||
Jazz Pharmaceuticals = 6 | 886 | 9 | ||||||
Kendle International = | 905 | 8 | ||||||
Kensey Nash = | 597 | 16 | ||||||
Keryx Biopharmaceuticals = 6 | 3,029 | 16 | ||||||
Kindred Healthcare = | 2,379 | 33 | ||||||
Landauer | 548 | 34 | ||||||
Lannett = | 616 | 3 | ||||||
LCA-Vision = | 1,003 | 7 | ||||||
Lexicon Pharmaceuticals = | 11,734 | 21 | ||||||
LHC Group = 6 | 925 | 25 | ||||||
Ligand Pharmaceuticals = | 6,909 | 11 | ||||||
Luminex = | 2,225 | 40 | ||||||
Magellan Health Services = | 2,003 | 96 | ||||||
Mako Surgical = 6 | 1,515 | 16 | ||||||
MannKind = 6 | 3,949 | 25 | ||||||
Map Pharmaceuticals = | 818 | 12 | ||||||
Martek Biosciences = 6 | 2,021 | 44 | ||||||
Masimo 6 | 3,094 | 93 | ||||||
Maxygen = | 1,542 | 10 | ||||||
MedAssets = | 2,405 | 45 | ||||||
MedCath = | 1,218 | 12 | ||||||
Medical Action Industries = | 864 | 9 | ||||||
Medicines = | 3,217 | 41 | ||||||
Medicis Pharmaceutical, Class A | 3,588 | 107 | ||||||
Medidata Solutions = | 1,116 | 21 | ||||||
Medivation = 6 | 2,018 | 23 | ||||||
MedQuist = | 558 | 5 | ||||||
Mela Sciences = 6 | 1,367 | 10 | ||||||
Merge Healthcare = | 3,064 | 10 | ||||||
Meridian Bioscience | 2,470 | 57 | ||||||
Merit Medical Systems = | 1,703 | 27 | ||||||
Metabolix = 6 | 1,587 | 22 | ||||||
Metropolitan Health Networks = | 2,463 | 10 | ||||||
Micromet = 6 | 4,798 | 36 | ||||||
Molina Healthcare = | 813 | 21 | ||||||
Momenta Pharmaceuticals = 6 | 2,393 | 40 | ||||||
MWI Veterinary Supply = 6 | 657 | 38 | ||||||
NABI Biopharmaceuticals = | 2,656 | 13 | ||||||
Nanosphere = | 1,011 | 5 | ||||||
National Healthcare | 471 | 17 | ||||||
National Research | 97 | 3 | ||||||
Natus Medical = | 1,707 | 22 | ||||||
Nektar Therapeutics = 6 | 5,645 | 82 | ||||||
Neogen = | 1,174 | 39 | ||||||
Neostem = 6 | 1,507 | 3 | ||||||
Neuralstem = 6 | 2,724 | 6 | ||||||
Neurocrine Biosciences = | 2,909 | 24 | ||||||
NeurogesX = 6 | 630 | 4 | ||||||
Novavax = 6 | 5,021 | 12 | ||||||
NPS Pharmaceuticals = | 3,963 | 25 | ||||||
NuPathe = | 212 | 1 | ||||||
NuVasive = 6 | 2,324 | 61 | ||||||
NxStage Medical = | 1,462 | 30 | ||||||
Nymox Pharmaceutical = | 1,098 | 5 | ||||||
Obagi Medical Products = | 963 | 11 | ||||||
Omeros = 6 | 1,113 | 9 | ||||||
Omnicell = | 1,846 | 26 | ||||||
Onyx Pharmaceuticals = | 3,765 | 101 | ||||||
Opko Health = | 5,255 | 15 | ||||||
Optimer Pharmaceuticals = 6 | 1,979 | 19 | ||||||
OraSure Technologies = | 2,623 | 11 | ||||||
Orexigen Therapeutics = 6 | 1,802 | 10 | ||||||
Orthofix International = | 1,043 | 29 | ||||||
Orthovita = | 3,880 | 8 | ||||||
Osiris Therapeutics = | 1,022 | 8 | ||||||
Owens & Minor | 3,743 | 107 | ||||||
Pain Therapeutics = | 2,014 | 15 | ||||||
Palomar Medical Technologies = | 1,061 | 11 | ||||||
Par Pharmaceutical Companies = | 2,026 | 66 | ||||||
PAREXEL = | 3,508 | 75 | ||||||
PDI = | 526 | 5 | ||||||
PDL BioPharma | 7,285 | 38 | ||||||
Peregrine Pharmaceuticals = 6 | 3,053 | 5 | ||||||
Pharmacyclics = 6 | 2,254 | 14 | ||||||
Pharmasset = 6 | 1,740 | 65 | ||||||
Pharmerica = | 1,860 | 19 | ||||||
POZEN = | 1,514 | 10 | ||||||
Progenics Pharmaceutical = | 1,548 | 7 | ||||||
Prospect Medical Holdings = 6 | 568 | 5 | ||||||
PSS World Medical = 6 | 3,392 | 80 | ||||||
Psychiatric Solutions = | 3,393 | 114 | ||||||
Pure Bioscience = 6 | 2,068 | 5 | ||||||
Quality Systems 6 | 1,119 | 72 | ||||||
Questcor Pharmaceuticals = | 3,265 | 40 | ||||||
Quidel = | 1,282 | 15 | ||||||
RehabCare Group = | 1,493 | 33 | ||||||
Res-Care = | 1,442 | 19 | ||||||
Rigel Pharmaceuticals = | 3,004 | 25 | ||||||
Rochester Medical = | 610 | 7 | ||||||
RTI Biologics = | 3,126 | 8 | ||||||
Rural/Metro = | 1,133 | 10 | ||||||
Salix Pharmaceuticals = | 3,383 | 128 | ||||||
Sangamo BioSciences = | 2,699 | 10 | ||||||
Santarus = | 3,161 | 10 | ||||||
Savient Pharmaceuticals = 6 | 4,017 | 50 | ||||||
Sciclone Pharmaceuticals = 6 | 2,178 | 7 | ||||||
Seattle Genetics = | 5,075 | 83 | ||||||
Select Medical Holdings = | 2,981 | 22 | ||||||
Senomyx = 6 | 2,291 | 11 | ||||||
Sequenom = 6 | 4,449 | 28 | ||||||
SIGA Technologies = 6 | 1,843 | 24 | ||||||
Sirona Dental Systems = | 1,986 | 75 | ||||||
Skilled Healthcare Group, Class A = | 1,215 | 5 | ||||||
Solta Medical = | 3,524 | 8 | ||||||
Somaxon Pharmaceuticals = 6 | 1,681 | 5 | ||||||
SonoSite = 6 | 813 | 25 | ||||||
Spectranetics = | 1,872 | 9 | ||||||
Spectrum Pharmaceuticals = | 2,937 | 13 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 33
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Staar Surgical = | 2,069 | $ | 11 | |||||
StemCells = 6 | 6,293 | 6 | ||||||
Stereotaxis = 6 | 1,731 | 7 | ||||||
STERIS | 3,516 | 120 | ||||||
Sucampo Pharmaceuticals = | 656 | 2 | ||||||
Sun Healthcare Group = | 4,137 | 39 | ||||||
Sunrise Senior Living = 6 | 3,314 | 11 | ||||||
SuperGen = | 3,603 | 10 | ||||||
SurModics = | 939 | 11 | ||||||
Symmetry Medical = | 2,183 | 19 | ||||||
Syneron Medical = | 2,111 | 22 | ||||||
Synovis Life Technologies = | 676 | 10 | ||||||
Synta Pharmaceuticals = | 1,324 | 5 | ||||||
Targacept = 6 | 1,415 | 35 | ||||||
Team Health Holdings = 6 | 909 | 12 | ||||||
The Provident Service = | 748 | 12 | ||||||
Theravance = 6 | 3,709 | 76 | ||||||
TomoTherapy = | 2,812 | 11 | ||||||
Transcend Services = | 542 | 9 | ||||||
Transcept Pharmaceuticals = | 318 | 2 | ||||||
Triple-S Management = | 1,253 | 21 | ||||||
U.S. Physical Therapy = | 644 | 12 | ||||||
Unilife = 6 | 2,870 | 16 | ||||||
Universal American Financial | 1,898 | 31 | ||||||
Vanda Pharmaceuticals = | 1,626 | 12 | ||||||
Vascular Solutions = | 987 | 11 | ||||||
Vical = | 4,217 | 9 | ||||||
ViroPharma = | 4,720 | 77 | ||||||
Vital Images = | 972 | 13 | ||||||
Vivus = 6 | 4,850 | 38 | ||||||
Volcano = 6 | 2,946 | 72 | ||||||
WellCare Health Plans = 6 | 2,575 | 72 | ||||||
West Pharmaceutical Services 6 | 1,997 | 71 | ||||||
Wright Medical Group = | 2,320 | 31 | ||||||
XenoPort = 6 | 1,628 | 13 | ||||||
Young Innovations | 332 | 9 | ||||||
Zalicus = | 3,903 | 5 | ||||||
Ziopharm Oncology = 6 | 2,898 | 13 | ||||||
Zoll Medical = 6 | 1,285 | 42 | ||||||
7,910 | ||||||||
Industrials – 14.7% | ||||||||
3D Systems = | 1,044 | 27 | ||||||
A.O. Smith | 1,338 | 75 | ||||||
A123 Systems = 6 | 4,310 | 42 | ||||||
AAON | 780 | 19 | ||||||
AAR = | 2,360 | 52 | ||||||
ABM Industries | 3,055 | 69 | ||||||
Acacia Research = | 1,949 | 52 | ||||||
ACCO Brands = | 3,327 | 21 | ||||||
Aceto | 1,511 | 11 | ||||||
Actuant, Class A | 4,129 | 93 | ||||||
Acuity Brands 6 | 2,581 | 129 | ||||||
Administaff | 1,305 | 34 | ||||||
Advanced Battery Technologies = 6 | 3,385 | 13 | ||||||
Advisory Board = | 929 | 43 | ||||||
AeroVironment = 6 | 982 | 23 | ||||||
Air Transport Services Group = | 3,389 | 23 | ||||||
Aircastle | 3,012 | 28 | ||||||
AirTran Holdings = 6 | 8,056 | 60 | ||||||
Alamo Group | 388 | 9 | ||||||
Alaska Air Group = 6 | 2,123 | 112 | ||||||
Albany International, Class A | 1,727 | 35 | ||||||
Allegiant Travel 6 | 880 | 41 | ||||||
Altra Holdings = | 1,627 | 24 | ||||||
Amerco = | 524 | 43 | ||||||
Ameresco, Class A = | 434 | 6 | ||||||
American Commercial Lines = 6 | 552 | 18 | ||||||
American Railcar Industries = | 529 | 8 | ||||||
American Reprographics = | 2,118 | 15 | ||||||
American Science & Engineering | 560 | 46 | ||||||
American Superconductor = 6 | 2,647 | 89 | ||||||
American Woodmark | 537 | 9 | ||||||
Ameron International | 538 | 37 | ||||||
Ampco-Pittsburgh | 485 | 13 | ||||||
APAC Customer Services = | 1,550 | 9 | ||||||
Apogee Enterprises | 1,682 | 18 | ||||||
Applied Energetics = 6 | 4,600 | 5 | ||||||
Applied Industrial Technology | 2,577 | 78 | ||||||
Applied Signal Technology | 793 | 27 | ||||||
Argan = | 451 | 4 | ||||||
Arkansas Best 6 | 1,543 | 39 | ||||||
Astec Industries = | 1,104 | 33 | ||||||
Astronics = | 564 | 12 | ||||||
Atlas Air Worldwide Holdings = | 1,532 | 80 | ||||||
Avis Budget Group = 6 | 6,207 | 72 | ||||||
AZZ | 741 | 28 | ||||||
Badger Meter 6 | 904 | 38 | ||||||
Baldor Electric | 2,840 | 119 | ||||||
Baltic Trading Limited = | 969 | 11 | ||||||
Barnes Group | 2,782 | 51 | ||||||
Barrett Business Services | 467 | 7 | ||||||
Beacon Roofing Supply = | 2,749 | 41 | ||||||
Belden | 2,775 | 77 | ||||||
Blount International = | 2,838 | 43 | ||||||
BlueLinx Holdings = | 708 | 2 | ||||||
Bowne & Company | 2,334 | 26 | ||||||
Brady, Class A | 2,921 | 90 | ||||||
Briggs & Stratton | 3,038 | 53 | ||||||
Brinks | 2,842 | 67 | ||||||
Broadwind Energy = 6 | 5,494 | 10 | ||||||
Builders FirstSource = | 2,566 | 5 | ||||||
CAI International = | 593 | 10 | ||||||
Capstone Turbine = 6 | 14,271 | 11 | ||||||
Cascade | 547 | 19 | ||||||
Casella Waste Systems = | 1,480 | 7 | ||||||
CBIZ = 6 | 2,501 | 15 | ||||||
CDI | 722 | 10 | ||||||
Celadon Group = | 1,347 | 17 | ||||||
Cenveo = | 3,266 | 18 | ||||||
Ceradyne = | 1,532 | 36 | ||||||
Chart Industries = 6 | 1,732 | 40 | ||||||
CIRCOR International | 1,035 | 36 | ||||||
CLARCOR | 2,993 | 119 | ||||||
Clean Harbors = 6 | 1,289 | 91 | ||||||
Coleman Cable = | 471 | 3 | ||||||
Colfax = 6 | 1,440 | 23 | ||||||
Columbus McKinnon = | 1,161 | 20 | ||||||
Comfort Systems USA | 2,319 | 27 | ||||||
Commercial Vehicle Group = | 1,454 | 20 | ||||||
Consolidated Graphics = | 553 | 26 | ||||||
Corporate Executive Board | 2,033 | 63 | ||||||
CoStar Group = 6 | 1,135 | 56 | ||||||
Courier | 621 | 9 | ||||||
CRA International = | 658 | 12 | ||||||
Cubic | 953 | 42 | ||||||
Curtiss-Wright 6 | 2,715 | 84 | ||||||
Deluxe | 2,996 | 61 | ||||||
Diamond Management & Technology Consultation | 1,454 | 18 | ||||||
DigitalGlobe = | 1,637 | 53 |
The accompanying notes are an integral part of the financial statements.
34 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Dollar Thrifty Automotive = 6 | 1,724 | $ | 80 | |||||
Douglas Dynamics | 681 | 10 | ||||||
Ducommun | 619 | 13 | ||||||
DXP Enterprises = | 650 | 12 | ||||||
Dycom Industries = | 2,347 | 25 | ||||||
Dynamex = | 632 | 13 | ||||||
Dynamic Materials | 783 | 12 | ||||||
Eagle Bulk Shipping = 6 | 3,779 | 19 | ||||||
EMCOR Group = | 3,947 | 102 | ||||||
Encore Wire | 1,130 | 23 | ||||||
Ener1 = 6 | 3,617 | 13 | ||||||
Energy Conversion Devices = 6 | 2,789 | 13 | ||||||
Energy Recovery = | 2,436 | 9 | ||||||
EnergySolutions | 5,252 | 25 | ||||||
EnerNOC = 6 | 1,169 | 35 | ||||||
EnerSys = | 2,865 | 76 | ||||||
Ennis | 1,536 | 28 | ||||||
EnPro Industries = | 1,240 | 44 | ||||||
ESCO Technologies | 1,598 | 55 | ||||||
Esterline Technologies = | 1,784 | 108 | ||||||
Evergreen Solar = 6 | 11,453 | 11 | ||||||
Excel Maritime Carriers = 6 | 2,362 | 14 | ||||||
Exponent = | 760 | 24 | ||||||
Federal Signal | 3,694 | 21 | ||||||
Flow International = | 2,777 | 7 | ||||||
Force Protection = | 4,329 | 24 | ||||||
Forward Air | 1,752 | 47 | ||||||
Franklin Covey = | 777 | 6 | ||||||
Franklin Electric | 1,406 | 51 | ||||||
FreightCar America | 728 | 19 | ||||||
FuelCell Energy = 6 | 5,656 | 6 | ||||||
Fuel-Tech = | 1,106 | 7 | ||||||
Furmanite = | 2,118 | 12 | ||||||
G&K Services, Class A 6 | 1,085 | 27 | ||||||
Genco Shipping & Trading = 6 | 1,571 | 26 | ||||||
GenCorp = | 3,471 | 17 | ||||||
Generac Holdings = | 1,147 | 16 | ||||||
Genesee & Wyoming, Class A = | 2,265 | 105 | ||||||
Geo Group = | 3,793 | 97 | ||||||
GeoEye = 6 | 1,310 | 58 | ||||||
Gibraltar Industries = | 1,796 | 16 | ||||||
Global Defense Technology & Systems = | 278 | 4 | ||||||
Gorman-Rupp | 725 | 22 | ||||||
GP Strategies = | 962 | 8 | ||||||
GrafTech International = 6 | 7,145 | 118 | ||||||
Graham | 584 | 10 | ||||||
Granite Construction 6 | 2,089 | 51 | ||||||
Great Lakes Dredge & Dock | 3,476 | 22 | ||||||
Greenbrier Companies = | 1,123 | 20 | ||||||
Griffon = | 2,630 | 31 | ||||||
GT Solar International = 6 | 3,704 | 30 | ||||||
H & E Equipment Services = | 1,665 | 16 | ||||||
Hawaiian Holdings = | 3,147 | 23 | ||||||
Healthcare Services Group | 2,517 | 60 | ||||||
Heartland Express | 3,006 | 45 | ||||||
HEICO 6 | 1,760 | 88 | ||||||
Heidrick & Struggles International | 1,035 | 22 | ||||||
Herley Industries = | 826 | 14 | ||||||
Herman Miller 6 | 3,263 | 63 | ||||||
Hexcel = | 5,800 | 103 | ||||||
Higher One Holdings = 6 | 136 | 2 | ||||||
Hill International = | 1,516 | 8 | ||||||
HNI | 2,683 | 66 | ||||||
Hoku = 6 | 1,016 | 3 | ||||||
Horizon Lines, Class A | 1,806 | 8 | ||||||
Houston Wire & Cable | 1,077 | 12 | ||||||
Hub Group = | 2,265 | 74 | ||||||
Hudson Highland Group = | 1,908 | 7 | ||||||
Huron Consulting Group = | 1,313 | 26 | ||||||
ICF International = | 1,016 | 26 | ||||||
II-VI = | 1,517 | 60 | ||||||
InnerWorkings = | 1,714 | 12 | ||||||
Insituform Technologies, Class A = 6 | 2,275 | 49 | ||||||
Insteel Industries | 1,068 | 9 | ||||||
Interface, Class A | 3,099 | 45 | ||||||
Interline Brands = | 1,979 | 40 | ||||||
International Shipholding | 327 | 9 | ||||||
JetBlue Airways = 6 | 14,480 | 101 | ||||||
John Bean Technologies | 1,680 | 29 | ||||||
Kadant = | 780 | 15 | ||||||
Kaman | 1,563 | 42 | ||||||
Kaydon | 1,992 | 69 | ||||||
Kelly Services, Class A = | 1,526 | 23 | ||||||
Kforce = 6 | 1,730 | 26 | ||||||
Kimball International | 1,856 | 11 | ||||||
Knight Transportation | 3,302 | 59 | ||||||
Knoll 6 | 2,837 | 43 | ||||||
Korn Ferry International = | 2,699 | 48 | ||||||
Kratos Defense & Security Solutions = | 945 | 11 | ||||||
LaBarge = | 769 | 10 | ||||||
Ladish = | 924 | 30 | ||||||
Lawson Products | 212 | 4 | ||||||
Layne Christensen = | 1,186 | 33 | ||||||
LB Foster = | 628 | 21 | ||||||
LECG = | 1,529 | 1 | ||||||
Lindsay Manufacturing 6 | 751 | 43 | ||||||
LMI Aerospace = | 508 | 8 | ||||||
LSI Industries | 1,050 | 10 | ||||||
Lydall = | 1,012 | 8 | ||||||
M & F Worldwide = | 711 | 19 | ||||||
Marten Transport | 1,002 | 21 | ||||||
MasTec = 6 | 3,177 | 39 | ||||||
McGrath Rentcorp | 1,446 | 37 | ||||||
Met Pro | 816 | 9 | ||||||
Metalico = | 2,227 | 10 | ||||||
Michael Baker = | 479 | 16 | ||||||
Microvision = 6 | 5,367 | 11 | ||||||
Middleby = 6 | 980 | 73 | ||||||
Miller Industries | 785 | 11 | ||||||
Mine Safety Appliances | 1,602 | 45 | ||||||
Mistras Group = | 856 | 9 | ||||||
Mobile Mini = | 2,162 | 38 | ||||||
Moog, Class A = | 2,692 | 101 | ||||||
Mueller Industries | 2,157 | 63 | ||||||
Mueller Water Products, Class A | 9,379 | 28 | ||||||
Multi Color | 606 | 10 | ||||||
Myr Group = | 1,051 | 16 | ||||||
NACCO Industries, Class A | 345 | 34 | ||||||
Navigant Consulting = | 3,043 | 28 | ||||||
NCI Building Systems = | 1,087 | 11 | ||||||
Nordson | 2,017 | 157 | ||||||
Northwest Pipe = | 563 | 11 | ||||||
Old Dominion Freight Line = | 2,544 | 71 | ||||||
Omega Flex | 170 | 2 | ||||||
On Assignment = | 2,076 | 12 | ||||||
Orbital Sciences = | 3,403 | 55 | ||||||
Orion Marine Group = | 1,618 | 20 | ||||||
Otter Tail | 2,162 | 44 | ||||||
P.A.M Transportation Services = | 272 | 3 | ||||||
Pacer International = | 1,963 | 11 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 35
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Park-Ohio Holdings = | 465 | $ | 7 | |||||
Patriot Transportation Holdings = | 88 | 6 | ||||||
PGT = | 1,140 | 2 | ||||||
Pike Electric = | 918 | 7 | ||||||
Pinnacle Airlines = | 1,103 | 6 | ||||||
PMFG = 6 | 874 | 14 | ||||||
Polypore International = | 1,292 | 43 | ||||||
Powell Industries = | 474 | 15 | ||||||
Powersecure International = | 1,047 | 10 | ||||||
Preformed Line Products | 147 | 6 | ||||||
Primoris Services 6 | 1,202 | 9 | ||||||
Quality Distribution = | 529 | 4 | ||||||
Quanex Building Products | 2,174 | 39 | ||||||
RailAmerica = | 1,371 | 16 | ||||||
Raven Industries | 937 | 39 | ||||||
RBC Bearings = | 1,324 | 44 | ||||||
Republic Airways Holdings = | 2,101 | 20 | ||||||
Resources Connection 6 | 2,737 | 44 | ||||||
Roadrunner Transportation Systems = | 629 | 8 | ||||||
Robbins & Myers 6 | 1,643 | 48 | ||||||
Rollins | 2,674 | 70 | ||||||
RSC Holdings = | 2,990 | 24 | ||||||
Rush Enterprises = | 1,953 | 31 | ||||||
Saia = | 942 | 14 | ||||||
Satcon Technology = | 6,839 | 27 | ||||||
Sauer-Danfoss = | 658 | 15 | ||||||
Schawk | 658 | 13 | ||||||
School Specialty = | 1,092 | 15 | ||||||
Seaboard | 18 | 33 | ||||||
SFN Group = | 3,096 | 23 | ||||||
Simpson Manufacturing 6 | 2,324 | 62 | ||||||
SkyWest | 3,319 | 50 | ||||||
Standard Parking = | 921 | 16 | ||||||
Standard Register | 918 | 3 | ||||||
Standex International | 726 | 20 | ||||||
Steelcase, Class A | 4,354 | 37 | ||||||
Sterling Construction = 6 | 955 | 12 | ||||||
Sun Hydraulics | 756 | 23 | ||||||
Sykes Enterprises = | 2,279 | 38 | ||||||
TAL International Group | 994 | 28 | ||||||
TASER International = 6 | 3,668 | 15 | ||||||
Team = | 1,148 | 23 | ||||||
Tecumseh Products, Class A = | 1,126 | 15 | ||||||
Teledyne Technologies = | 2,165 | 90 | ||||||
Tennant | 1,136 | 38 | ||||||
Tetra Tech = | 3,617 | 76 | ||||||
Textainer Group Holdings | 520 | 13 | ||||||
Thermadyne Holdings = | 512 | 8 | ||||||
Titan International 6 | 2,146 | 33 | ||||||
Titan Machinery = 6 | 773 | 15 | ||||||
Tredegar | 1,455 | 28 | ||||||
Trex = 6 | 940 | 17 | ||||||
Trimas = | 819 | 13 | ||||||
Triumph Group | 1,016 | 85 | ||||||
TrueBlue = | 2,577 | 36 | ||||||
Tutor Perini | 1,561 | 36 | ||||||
Twin Disc | 485 | 10 | ||||||
Ultrapetrol Bahamas = | 1,411 | 9 | ||||||
United Capital = | 101 | 3 | ||||||
United Rentals = 6 | 3,666 | 69 | ||||||
United Stationers = | 1,445 | 81 | ||||||
Universal Forest Products 6 | 1,169 | 35 | ||||||
Universal Truckload Services = | 334 | 5 | ||||||
UQM Technologies = | 2,140 | 5 | ||||||
US Airways Group = 6 | 9,572 | 113 | ||||||
US Ecology | 1,107 | 18 | ||||||
USA Truck = 6 | 474 | 6 | ||||||
Viad | 1,214 | 24 | ||||||
Vicor | 1,136 | 20 | ||||||
Volt Information Sciences = | 843 | 7 | ||||||
VSE | 217 | 8 | ||||||
Wabash National = 6 | 3,857 | 31 | ||||||
Watsco 6 | 1,622 | 91 | ||||||
Watts Water Technologies, Class A | 1,784 | 63 | ||||||
Werner Enterprises 6 | 2,483 | 53 | ||||||
Woodward Governor | 3,677 | 115 | ||||||
Xerium Technologies = 6 | 445 | 6 | ||||||
9,756 | ||||||||
Information Technology – 18.0% | ||||||||
ACI Worldwide = | 2,018 | 49 | ||||||
Acme Packet = 6 | 2,598 | 103 | ||||||
Actel = | 1,287 | 27 | ||||||
Actuate = | 2,949 | 14 | ||||||
Acxiom = | 4,140 | 73 | ||||||
ADC Telecommunications = | 5,892 | 75 | ||||||
ADTRAN | 3,572 | 115 | ||||||
Advanced Analogic Technologies = 6 | 2,475 | 9 | ||||||
Advanced Energy Industries = | 2,159 | 31 | ||||||
Advent Software = | 963 | 52 | ||||||
Agilysys = | 1,320 | 8 | ||||||
Alpha & Omega Semiconductor = | 301 | 3 | ||||||
American Software, Class A | 1,221 | 7 | ||||||
Amkor Technology = 6 | 6,226 | 45 | ||||||
ANADIGICS = | 3,667 | 25 | ||||||
Anaren = | 948 | 16 | ||||||
Ancestry.com = 6 | 1,122 | 30 | ||||||
Anixter International | 1,666 | 89 | ||||||
Applied Micro Circuits = | 4,019 | 40 | ||||||
Archipelago Learning = | 696 | 7 | ||||||
Ariba = | 5,329 | 100 | ||||||
Arris Group = | 7,555 | 70 | ||||||
Art Technology Group = | 9,465 | 40 | ||||||
Aruba Networks = 6 | 4,347 | 95 | ||||||
Aspen Technology = | 3,692 | 41 | ||||||
ATMI = | 1,880 | 33 | ||||||
Aviat Networks = | 3,598 | 16 | ||||||
Avid Technology = | 1,754 | 22 | ||||||
Axcelis Technologies = | 6,181 | 13 | ||||||
AXT = | 1,839 | 15 | ||||||
Bel Fuse | 690 | 16 | ||||||
Benchmark Electronics = | 3,742 | 61 | ||||||
Bigband Networks = | 2,962 | 9 | ||||||
Black Box | 1,069 | 35 | ||||||
Blackbaud | 2,601 | 66 | ||||||
Blackboard = 6 | 1,931 | 81 | ||||||
Blue Coat Systems = | 2,470 | 67 | ||||||
Bottomline Technologies = | 1,699 | 31 | ||||||
Brightpoint = | 4,180 | 31 | ||||||
BroadSoft = | 444 | 4 | ||||||
Brooks Automation = | 3,922 | 27 | ||||||
Cabot Microelectronics = | 1,365 | 53 | ||||||
CACI International, Class A = | 1,765 | 88 | ||||||
Calix = | 441 | 6 | ||||||
Cass Information Systems | 502 | 17 | ||||||
Cavium Networks = 6 | 2,633 | 84 | ||||||
CDC = | 1,944 | 9 | ||||||
Ceva = | 1,180 | 22 | ||||||
Checkpoint Systems = | 2,307 | 51 | ||||||
CIBER = | 4,191 | 15 | ||||||
Cirrus Logic = 6 | 3,884 | 50 |
The accompanying notes are an integral part of the financial statements.
36 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Cogent = | 2,602 | $ | 27 | |||||
Cognex | 2,364 | 63 | ||||||
Coherent = | 1,374 | 58 | ||||||
Cohu | 1,342 | 19 | ||||||
CommVault Systems = | 2,487 | 72 | ||||||
Compellent Technologies = | 1,383 | 35 | ||||||
Computer Task Group = | 912 | 7 | ||||||
comScore = | 1,315 | 31 | ||||||
Comtech Telecommunications = 6 | 1,716 | 53 | ||||||
Comverge = 6 | 1,493 | 11 | ||||||
Concur Technologies = 6 | 2,388 | 123 | ||||||
Conexant Systems = 6 | 4,818 | 7 | ||||||
Constant Contact = 6 | 1,693 | 39 | ||||||
Convio = | 351 | 3 | ||||||
CPI International = | 532 | 8 | ||||||
Cray = | 2,085 | 12 | ||||||
CSG Systems International = | 2,020 | 39 | ||||||
CTS | 2,059 | 21 | ||||||
Cymer = | 1,765 | 65 | ||||||
Daktronics | 1,908 | 21 | ||||||
DDi | 874 | 9 | ||||||
DealerTrack Holdings = | 2,386 | 46 | ||||||
Deltek = | 1,117 | 9 | ||||||
DemandTec = | 1,200 | 13 | ||||||
DG Fastchannel = 6 | 1,486 | 35 | ||||||
Dice Holdings = | 873 | 8 | ||||||
Digi International = | 1,500 | 14 | ||||||
Digimarc = | 400 | 11 | ||||||
Digital River = | 2,328 | 87 | ||||||
Diodes = | 1,945 | 43 | ||||||
DSP Group = | 1,288 | 9 | ||||||
DTS = 6 | 1,036 | 41 | ||||||
EarthLink | 6,430 | 58 | ||||||
Ebix = 6 | 1,594 | 39 | ||||||
Echelon = | 1,979 | 16 | ||||||
Echo Global Logistics = 6 | 631 | 9 | ||||||
Electro Rent | 1,187 | 18 | ||||||
Electro Scientific Industries = | 1,628 | 19 | ||||||
Electronics For Imaging = | 2,687 | 37 | ||||||
EMS Technologies = | 948 | 17 | ||||||
Emulex = | 4,813 | 55 | ||||||
Entegris = 6 | 7,932 | 47 | ||||||
Entropic Communications = 6 | 3,621 | 30 | ||||||
Epicor Software = | 2,903 | 27 | ||||||
EPIQ Systems 6 | 1,956 | 23 | ||||||
ePlus = | 224 | 5 | ||||||
Euronet Worldwide = 6 | 2,966 | 54 | ||||||
Exar = | 2,107 | 14 | ||||||
Exlservice Holdings = | 911 | 17 | ||||||
Extreme Networks = | 5,416 | 17 | ||||||
Fabrinet = | 580 | 8 | ||||||
Fair Isaac 6 | 2,744 | 66 | ||||||
FalconStor Software = | 2,102 | 6 | ||||||
FARO Technologies = | 970 | 23 | ||||||
FEI = | 2,280 | 50 | ||||||
Finisar = 6 | 4,471 | 76 | ||||||
FormFactor = | 3,005 | 29 | ||||||
Forrester Research = | 866 | 29 | ||||||
Fortinet = 6 | 2,350 | 71 | ||||||
FSI International = | 2,282 | 6 | ||||||
Gerber Scientific = | 1,493 | 10 | ||||||
Global Cash Access Holdings = | 2,690 | 10 | ||||||
Globecomm Systems = | 1,181 | 11 | ||||||
GSI Commerce = | 3,687 | 90 | ||||||
GSI Technology = | 1,124 | 8 | ||||||
Guidance Software = 6 | 790 | 5 | ||||||
Hackett Group = | 2,232 | 9 | ||||||
Harmonic = | 5,834 | 41 | ||||||
Heartland Payment Systems | 2,285 | 33 | ||||||
Hittite Microwave = | 1,622 | 84 | ||||||
Hughes Communications = | 543 | 15 | ||||||
Hutchinson Technology = | 1,386 | 5 | ||||||
Hypercom = | 2,734 | 16 | ||||||
iGATE | 1,395 | 29 | ||||||
Ikanos Communications = | 1,784 | 2 | ||||||
Imation = | 1,669 | 16 | ||||||
Immersion = | 1,723 | 11 | ||||||
Infinera = | 5,397 | 44 | ||||||
Infospace = | 1,925 | 16 | ||||||
Insight Enterprises = | 2,795 | 42 | ||||||
Integral Systems = | 987 | 8 | ||||||
Integrated Device Technology = | 9,639 | 57 | ||||||
Integrated Silicon Solutions = | 1,537 | 12 | ||||||
Interactive Intelligence = | 784 | 19 | ||||||
Interdigital = 6 | 2,637 | 89 | ||||||
Intermec = | 2,899 | 34 | ||||||
Internap Network Services = | 3,097 | 15 | ||||||
Internet Brands = | 1,672 | 22 | ||||||
Internet Capital Group = | 2,167 | 27 | ||||||
Intevac = | 1,269 | 13 | ||||||
Intralinks Holdings = | 653 | 14 | ||||||
IPG Photonics = | 1,409 | 32 | ||||||
Isilon Systems = | 1,575 | 45 | ||||||
Ixia = | 1,940 | 30 | ||||||
IXYS = | 1,367 | 14 | ||||||
J2 Global Communications = | 2,681 | 71 | ||||||
Jack Henry & Associates | 5,073 | 138 | ||||||
JDA Software = | 2,473 | 63 | ||||||
Keithley Instruments | 666 | 14 | ||||||
Kenexa = 6 | 1,369 | 25 | ||||||
Keynote Systems | 750 | 9 | ||||||
Kit Digital = 6 | 1,176 | 16 | ||||||
Kopin = | 4,011 | 15 | ||||||
Kulicke & Soffa = | 4,167 | 26 | ||||||
KVH Industries = | 852 | 12 | ||||||
L-1 Identity Solutions = | 4,562 | 54 | ||||||
Lattice Semiconductor = | 6,542 | 32 | ||||||
Lawson Software = 6 | 8,385 | 75 | ||||||
Limelight Networks = | 2,718 | 18 | ||||||
Lionbridge Technologies = | 3,500 | 18 | ||||||
Liquidity Services = 6 | 916 | 15 | ||||||
Littelfuse | 1,324 | 56 | ||||||
Liveperson = | 2,517 | 23 | ||||||
Local Com = | 950 | 4 | ||||||
LogMeIn = 6 | 894 | 36 | ||||||
LoopNet = | 1,216 | 13 | ||||||
Loral Space & Communications = | 678 | 38 | ||||||
LTX-Credence = | 2,904 | 18 | ||||||
Magma Design Automation = 6 | 3,076 | 13 | ||||||
Manhattan Associates = | 1,347 | 41 | ||||||
ManTech International = | 1,335 | 52 | ||||||
Marchex | 1,536 | 10 | ||||||
Mattson Technology = 6 | 2,969 | 8 | ||||||
MAXIMUS | 1,026 | 62 | ||||||
MaxLinear, Class A = | 444 | 5 | ||||||
Maxwell Technologies = 6 | 1,567 | 25 | ||||||
Measurement Specialties = | 859 | 19 | ||||||
Mediamind Technologies = | 321 | 5 | ||||||
Mentor Graphics = | 6,331 | 68 | ||||||
Mercury Computer Systems = 6 | 1,332 | 21 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 37
Table of Contents
Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Meru Networks = 6 | 321 | $ | 5 | |||||
Methode Electronics, Class A | 2,226 | 21 | ||||||
Micrel 6 | 2,775 | 33 | ||||||
Microsemi = 6 | 4,954 | 99 | ||||||
MicroStrategy = | 552 | 50 | ||||||
Microtune = | 3,089 | 9 | ||||||
Mindspeed Technologies = 6 | 1,896 | 14 | ||||||
MIPS Technologies, Class A = | 2,744 | 40 | ||||||
MKS Instruments = 6 | 3,006 | 62 | ||||||
ModusLink Global Solutions = | 2,629 | 17 | ||||||
MoneyGram International = 6 | 5,033 | 12 | ||||||
Monolithic Power Systems = | 1,919 | 31 | ||||||
Monotype Imaging Holdings = | 1,322 | 13 | ||||||
MoSys = | 1,611 | 8 | ||||||
Motricity = | 314 | 7 | ||||||
Move = | 9,405 | 22 | ||||||
MTS Systems | 1,020 | 33 | ||||||
Multi-Fineline Electronix = | 600 | 15 | ||||||
Nanometrics = | 1,057 | 14 | ||||||
NCI = | 397 | 7 | ||||||
Netezza = | 3,025 | 82 | ||||||
NETGEAR = | 2,056 | 63 | ||||||
Netlogic Microsystems = 6 | 3,717 | 112 | ||||||
NetScout Systems = | 1,714 | 40 | ||||||
NetSuite = 6 | 1,018 | 21 | ||||||
Network Engines = | 2,138 | 4 | ||||||
Network Equipment Technologies = | 1,779 | 6 | ||||||
Newport = | 2,109 | 31 | ||||||
NIC | 3,074 | 27 | ||||||
Novatel Wireless = 6 | 1,844 | 19 | ||||||
NVE = | 272 | 13 | ||||||
Occam Networks = | 746 | 6 | ||||||
Oclaro = 6 | 2,931 | 25 | ||||||
OmniVision Technologies = 6 | 3,081 | 84 | ||||||
Online Resources = | 1,689 | 9 | ||||||
Opentable = 6 | 939 | 58 | ||||||
Openwave Systems = | 5,081 | 10 | ||||||
Oplink Communications = | 1,249 | 22 | ||||||
OPNET Technologies | 715 | 14 | ||||||
Opnext = | 2,572 | 4 | ||||||
OSI Systems = | 966 | 35 | ||||||
Parametric Technology = | 6,889 | 148 | ||||||
Park Electrochemical | 1,183 | 32 | ||||||
PC Connection = | 476 | 4 | ||||||
PC-Tel = | 1,161 | 7 | ||||||
PDF Solutions = | 1,341 | 5 | ||||||
Pegasystems 6 | 915 | 25 | ||||||
Perficient = | 1,379 | 15 | ||||||
Pericom Semiconductor = | 1,543 | 15 | ||||||
Photronics = 6 | 3,196 | 20 | ||||||
Plantronics 6 | 2,864 | 103 | ||||||
Plexus = | 2,406 | 73 | ||||||
PLX Technology = | 2,237 | 8 | ||||||
Power Integrations | 1,439 | 49 | ||||||
Power One = 6 | 4,141 | 43 | ||||||
Powerwave Technologies = 6 | 8,048 | 18 | ||||||
Presstek = | 1,628 | 3 | ||||||
Progress Software = | 2,415 | 90 | ||||||
PROS Holdings = | 1,163 | 12 | ||||||
QAD | 871 | 4 | ||||||
Qlik Technologies = 6 | 792 | 20 | ||||||
Quantum = | 12,818 | 43 | ||||||
Quest Software = | 3,558 | 93 | ||||||
QuinStreet = 6 | 596 | 9 | ||||||
Rackspace Hosting = 6 | 5,754 | 144 | ||||||
Radiant Systems = 6 | 1,673 | 33 | ||||||
RadiSys = | 1,423 | 14 | ||||||
Reald = 6 | 401 | 8 | ||||||
RealNetworks = | 4,948 | 15 | ||||||
Realpage = | 839 | 19 | ||||||
Renaissance Learning | 781 | 11 | ||||||
RF Micro Devices = | 16,210 | 118 | ||||||
Richardson Electronics | 858 | 9 | ||||||
RightNow Technologies = | 1,285 | 34 | ||||||
Rimage = | 525 | 8 | ||||||
Riverbed Technology = | 3,743 | 215 | ||||||
Rofin-Sinar Technologies = | 1,726 | 48 | ||||||
Rogers = 6 | 988 | 35 | ||||||
Rosetta Stone = 6 | 622 | 14 | ||||||
Rubicon Technology = 6 | 941 | 22 | ||||||
Rudolph Technologies = | 1,792 | 13 | ||||||
S1 = | 3,222 | 19 | ||||||
Saba Software = | 1,500 | 9 | ||||||
Sanmina-SCI = | 4,719 | 62 | ||||||
Sapient 6 | 6,116 | 80 | ||||||
SAVVIS = 6 | 2,186 | 52 | ||||||
ScanSource = | 1,617 | 48 | ||||||
SeaChange International = | 1,795 | 14 | ||||||
Semtech = 6 | 3,617 | 77 | ||||||
ShoreTel = | 2,696 | 17 | ||||||
Sigma Designs = | 1,861 | 21 | ||||||
Silicon Graphics International = | 1,822 | 14 | ||||||
Silicon Image = | 4,560 | 28 | ||||||
Smart Modular Technologies = | 3,119 | 23 | ||||||
Smith Micro Software = 6 | 1,890 | 23 | ||||||
Solarwinds = | 2,073 | 38 | ||||||
Sonic Solutions = 6 | 2,529 | 30 | ||||||
Sonus Networks = | 12,577 | 39 | ||||||
Sourcefire = 6 | 1,631 | 38 | ||||||
Spansion = | 769 | 13 | ||||||
Spectrum Control = | 766 | 12 | ||||||
SPS Commerce = | 279 | 4 | ||||||
SRA International, Class A = | 2,492 | 50 | ||||||
SRS Labs = | 707 | 6 | ||||||
SS&C Technologies Holdings = | 740 | 13 | ||||||
Stamps.com = | 768 | 12 | ||||||
Standard Microsystems = | 1,286 | 31 | ||||||
STEC = 6 | 2,417 | 38 | ||||||
Stratasys = 6 | 1,156 | 36 | ||||||
Stream Global Services = | 268 | 1 | ||||||
SuccessFactors = 6 | 3,734 | 101 | ||||||
Super Micro Computer = | 1,450 | 16 | ||||||
Supertex = 6 | 626 | 15 | ||||||
Support.com = | 2,786 | 16 | ||||||
Sycamore Networks | 1,173 | 36 | ||||||
Symmetricom = | 2,939 | 18 | ||||||
Synaptics = 6 | 2,092 | 56 | ||||||
Synchronoss Technologies = | 1,239 | 26 | ||||||
SYNNEX = | 1,174 | 34 | ||||||
Syntel | 785 | 38 | ||||||
Take-Two Interactive Software = | 4,179 | 45 | ||||||
Taleo, Class A = | 2,383 | 68 | ||||||
Technitrol = 6 | 2,499 | 11 | ||||||
Techtarget = | 755 | 4 | ||||||
Tekelec = | 4,059 | 53 | ||||||
Telecommunication Systems = 6 | 2,692 | 15 | ||||||
Telenav = | 477 | 3 | ||||||
Teletech Holdings = | 1,791 | 27 | ||||||
Terremark Worldwide = 6 | 3,543 | 35 | ||||||
Tessco Technologies | 297 | 4 |
The accompanying notes are an integral part of the financial statements.
38 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Tessera Technologies = 6 | 2,966 | $ | 59 | |||||
The Knot = | 1,730 | 16 | ||||||
THQ = | 4,119 | 16 | ||||||
TIBCO Software = | 9,860 | 190 | ||||||
Tier Technologies = | 1,069 | 6 | ||||||
TiVo = | 6,853 | 76 | ||||||
TNS = | 1,498 | 29 | ||||||
Travelzoo = 6 | 338 | 12 | ||||||
Trident Microsystems = | 3,838 | 7 | ||||||
TriQuint Semiconductor = | 8,986 | 93 | ||||||
TTM Technologies = | 4,750 | 50 | ||||||
Tyler Technologies = 6 | 1,887 | 39 | ||||||
Ultimate Software Group = | 1,430 | 59 | ||||||
Ultra Clean Holdings = | 1,285 | 10 | ||||||
Ultratech = | 1,439 | 26 | ||||||
Unisys = | 2,578 | 59 | ||||||
United Online 6 | 5,098 | 32 | ||||||
Universal Display = 6 | 1,781 | 45 | ||||||
UTStarcom = | 6,904 | 14 | ||||||
ValueClick = 6 | 4,827 | 66 | ||||||
VASCO Data Security International = | 1,600 | 13 | ||||||
Veeco Instruments = 6 | 2,406 | 101 | ||||||
VeriFone Holdings = | 5,071 | 172 | ||||||
ViaSat = | 1,968 | 81 | ||||||
Viasystems Group = | 255 | 4 | ||||||
Virnetx Holding 6 | 2,089 | 39 | ||||||
Virtusa = | 805 | 11 | ||||||
Vocus = 6 | 1,011 | 22 | ||||||
Volterra Semiconductor = | 1,471 | 30 | ||||||
Wave Systems = 6 | 4,752 | 11 | ||||||
Websense = | 2,563 | 52 | ||||||
Wright Express = 6 | 2,340 | 88 | ||||||
X-Rite = | 1,981 | 8 | ||||||
Xyratex = | 1,789 | 28 | ||||||
Zix = 6 | 3,862 | 15 | ||||||
Zoran = | 3,012 | 21 | ||||||
Zygo = | 901 | 10 | ||||||
11,912 | ||||||||
Materials – 5.3% | ||||||||
A. Schulman | 1,802 | 39 | ||||||
A.M. Castle & Company = 6 | 924 | 14 | ||||||
AEP Industries = | 318 | 8 | ||||||
Allied Nevada Gold = 6 | 4,439 | 110 | ||||||
AMCOL International 6 | 1,415 | 39 | ||||||
American Vanguard | 1,189 | 9 | ||||||
Arch Chemicals | 1,342 | 48 | ||||||
Balchem | 1,674 | 51 | ||||||
Boise = | 4,160 | 30 | ||||||
Brush Engineered Metals = | 1,186 | 39 | ||||||
Buckeye Technologies | 2,321 | 42 | ||||||
Calgon Carbon = 6 | 3,337 | 50 | ||||||
Capital Gold = 6 | 3,631 | 16 | ||||||
Century Aluminum = | 3,783 | 51 | ||||||
Clearwater Paper = | 715 | 58 | ||||||
Coeur d’Alene Mines = | 5,225 | 108 | ||||||
Deltic Timber | 647 | 30 | ||||||
Ferro = | 5,210 | 72 | ||||||
General Moly = 6 | 3,885 | 20 | ||||||
Georgia Gulf = 6 | 2,001 | 41 | ||||||
Glatfelter | 3,003 | 37 | ||||||
Globe Specialty Metals | 3,639 | 57 | ||||||
Golden Star Resources = 6 | 15,301 | 80 | ||||||
Graham Packaging = | 1,010 | 12 | ||||||
Graphic Packaging Holding = | 6,671 | 24 | ||||||
H.B. Fuller | 2,988 | 62 | ||||||
Hawkins | 531 | 19 | ||||||
Haynes International | 697 | 25 | ||||||
Headwaters = | 3,582 | 12 | ||||||
Hecla Mining = 6 | 15,044 | 104 | ||||||
Horsehead Holding = | 2,614 | 29 | ||||||
Innophos Holdings | 1,271 | 47 | ||||||
Jaguar Mining = 6 | 4,990 | 32 | ||||||
Kaiser Aluminum | 878 | 40 | ||||||
Kapstone Paper & Packaging = | 2,268 | 29 | ||||||
KMG Chemicals | 364 | 5 | ||||||
Koppers Holdings | 1,212 | 34 | ||||||
Kraton Performance Polymers = | 667 | 22 | ||||||
Landec = | 1,601 | 10 | ||||||
Louisiana-Pacific = | 7,658 | 59 | ||||||
LSB Industries = 6 | 1,018 | 23 | ||||||
Metals USA Holdings = | 678 | 8 | ||||||
Minerals Technologies | 1,143 | 67 | ||||||
Molycorp = 6 | 1,519 | 54 | ||||||
Myers Industries | 1,920 | 17 | ||||||
Neenah Paper | 859 | 13 | ||||||
NewMarket | 605 | 72 | ||||||
NL Industries | 381 | 4 | ||||||
Noranda Aluminum Holding = | 682 | 7 | ||||||
Olin | 4,751 | 95 | ||||||
Olympic Steel | 552 | 12 | ||||||
OM Group = 6 | 1,863 | 62 | ||||||
Omnova Solutions = | 2,674 | 21 | ||||||
PolyOne = | 5,424 | 70 | ||||||
Quaker Chemical | 661 | 24 | ||||||
Rock-Tenn, Class A | 2,338 | 133 | ||||||
Rockwood Holdings = | 3,093 | 105 | ||||||
RTI International Metals = | 1,831 | 57 | ||||||
Schweitzer-Mauduit International | 1,070 | 69 | ||||||
Sensient Technologies | 2,972 | 96 | ||||||
Silgan Holdings | 2,954 | 100 | ||||||
Solutia = | 7,259 | 131 | ||||||
Spartech = | 1,777 | 15 | ||||||
Stepan | 447 | 30 | ||||||
Stillwater Mining = 6 | 2,638 | 47 | ||||||
STR Holdings = 6 | 1,683 | 42 | ||||||
Texas Industries | 1,234 | 42 | ||||||
Thompson Creek Metals = 6 | 8,297 | 100 | ||||||
TPC Group = | 469 | 13 | ||||||
U.S. Energy = | 1,586 | 8 | ||||||
United States Lime & Minerals = | 154 | 6 | ||||||
Universal Stainless & Alloy = | 370 | 11 | ||||||
US Gold = 6 | 5,249 | 27 | ||||||
Verso Paper = 6 | 871 | 3 | ||||||
W.R. Grace & Company = | 4,400 | 141 | ||||||
Wausau-Mosinee Paper = | 2,909 | 25 | ||||||
Westlake Chemical 6 | 1,167 | 37 | ||||||
Worthington Industries 6 | 3,588 | 55 | ||||||
Zep | 1,288 | 23 | ||||||
Zoltek Companies = | 1,693 | 16 | ||||||
3,495 | ||||||||
Telecommunication Services – 1.0% | ||||||||
Abovenet = | 1,337 | 76 | ||||||
Alaska Communications Systems Group | 2,694 | 27 | ||||||
Atlantic Tele-Network | 513 | 22 | ||||||
Cbeyond = 6 | 1,404 | 19 | ||||||
Cincinnati Bell = | 12,245 | 30 | ||||||
Cogent Communications Group = | 2,684 | 29 | ||||||
Consolidated Communications Holdings | 1,348 | 25 | ||||||
Fibertower = | 2,962 | 13 | ||||||
General Communication, Class A = | 2,979 | 31 |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 39
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Schedule of Investments October 31, 2010, all dollars are rounded to thousands (000)
Small Cap Index Fund (continued) | ||||||||
DESCRIPTION | SHARES | FAIR VALUE > | ||||||
Global Crossing = 6 | 1,658 | $ | 23 | |||||
GlobalStar = 6 | 4,141 | 7 | ||||||
ICO Global Communication Holdings = | 5,582 | 8 | ||||||
IDT, Class B = | 839 | 12 | ||||||
Iridium Communications = 6 | 2,022 | 17 | ||||||
Neutral Tandem = 6 | 2,002 | 29 | ||||||
NTELOS Holdings | 1,751 | 32 | ||||||
PAETEC Holding = | 7,186 | 30 | ||||||
Premiere Global Services = | 3,701 | 25 | ||||||
Shenandoah Telecommunications | 1,318 | 24 | ||||||
Syniverse Holdings = | 4,175 | 127 | ||||||
USA Mobility | 1,118 | 19 | ||||||
Vonage Holdings = | 6,245 | 16 | ||||||
641 | ||||||||
Utilities – 3.0% | ||||||||
Allete | 1,789 | 65 | ||||||
American DG Energy = 6 | 1,117 | 3 | ||||||
American States Water 6 | 1,101 | 41 | ||||||
Artesian Resources | 379 | 7 | ||||||
Avista | 3,332 | 73 | ||||||
Black Hills | 2,234 | 71 | ||||||
Cadiz = | 700 | 8 | ||||||
California Water Service Group | 1,199 | 45 | ||||||
Central Vermont Public Service | 674 | 14 | ||||||
CH Energy Group | 963 | 44 | ||||||
Chesapeake Utilities | 568 | 21 | ||||||
Cleco 6 | 3,629 | 113 | ||||||
Connecticut Water Service 6 | 490 | 12 | ||||||
Consolidated Water | 845 | 9 | ||||||
Dynegy = | 6,084 | 28 | ||||||
El Paso Electric = | 2,739 | 67 | ||||||
Empire District Electric | 2,083 | 44 | ||||||
IDACORP | 2,832 | 104 | ||||||
Laclede Group | 1,319 | 46 | ||||||
MGE Energy 6 | 1,408 | 57 | ||||||
Middlesex Water Company | 720 | 13 | ||||||
New Jersey Resources | 2,450 | 99 | ||||||
Nicor | 2,548 | 121 | ||||||
Northwest Natural Gas | 1,577 | 78 | ||||||
NorthWestern 6 | 2,088 | 62 | ||||||
Piedmont Natural Gas 6 | 4,265 | 126 | ||||||
PNM Resources | 5,143 | 61 | ||||||
Portland General Electric | 4,583 | 96 | ||||||
SJW | 768 | 19 | ||||||
South Jersey Industries | 1,772 | 89 | ||||||
Southwest Gas | 2,726 | 95 | ||||||
UIL Holdings 6 | 2,301 | 67 | ||||||
UniSource Energy Holding | 2,171 | 76 | ||||||
Unitil 6 | 641 | 14 | ||||||
WGL Holdings | 2,968 | 114 | ||||||
York Water | 695 | 11 | ||||||
2,013 | ||||||||
Total Common Stocks | ||||||||
(Cost $52,097) | 62,907 | |||||||
Closed-End Fund – 0.0% | ||||||||
Kayne Anderson Energy | ||||||||
(Cost $14) | 585 | 10 | ||||||
Warrants – 0.0% | ||||||||
Greenhunter Energy = 6 ¥ ⊡ | 30 | — | ||||||
Krispy Kreme Doughnuts = | 210 | — | ||||||
Lantronix = ¥ ⊡ | 39 | — | ||||||
Total Warrants | ||||||||
(Cost $0) | — | |||||||
Short-Term Investments – 5.0% | ||||||||
Money Market Fund – 3.6% | ||||||||
First American Prime Obligations Fund, Class Z | ||||||||
0.102% Å Ω | 2,381,815 | 2,382 | ||||||
U.S. Treasury Obligation – 1.4% | ||||||||
U.S. Treasury Bill | ||||||||
0.185%, 11/04/2010 o | $ | 920 | 920 | |||||
Total Short-Term Investments | ||||||||
(Cost $3,302) | 3,302 | |||||||
Investment Purchased with Proceeds from Securities Lending – 28.9% | ||||||||
Mount Vernon Securities Lending Prime Portfolio | ||||||||
0.278% Ω † | ||||||||
(Cost $19,183) | 19,183,115 | 19,183 | ||||||
Total Investments 5 – 128.8% | ||||||||
(Cost $74,596) | 85,402 | |||||||
Other Assets and Liabilities, Net – (28.8)% | (19,116 | ) | ||||||
Total Net Assets – 100.0% | $ | 66,286 | ||||||
> | Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements. | |
= | Non-income producing security. | |
6 | This security or a portion of this security is out on loan at October 31, 2010. Total loaned securities had a fair value of $18,218 at October 31, 2010. See note 2 in Notes to Financial Statements. | |
¥ | Security considered illiquid. As of October 31, 2010, the fair value of the fund’s investments considered to be illiquid was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. | |
⊡ | Security is internally fair valued. As of October 31, 2010, the fair value of these investments was $0 or 0.0% 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 October 31, 2010. | |
o | Security has been deposited as initial margin on open futures contracts. Yield shown is the annualized effective yield as of October 31, 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 October 31, 2010, the cost of investments for federal income tax purposes was $75,036. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows: |
Gross unrealized appreciation | $ | 19,555 | ||
Gross unrealized depreciation | (9,189 | ) | ||
Net unrealized appreciation | $ | 10,366 | ||
REIT – | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
40 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
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Small Cap Index Fund (concluded)
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||
Settlement | Contracts | Contract | Unrealized | |||||||||||
Description | Month | Purchased | Value | Appreciation | ||||||||||
Russell 2000 Mini Index Futures | December 2010 | 45 | $3,160 | $ | 286 | |||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 41
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Statements of Assets and Liabilities | October 31, 2010, all dollars and shares are rounded to thousands (000), except per share data |
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
Unaffiliated investments, at cost | $ | 577,633 | $ | 218,868 | $ | 53,031 | ||||||||||
Affiliated investments, at cost | 41,032 | 9,201 | 2,382 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at cost (note 2) | 136,238 | 61,127 | 19,183 | |||||||||||||
ASSETS: | ||||||||||||||||
Unaffiliated investments, at fair value* (note 2) | $ | 856,416 | $ | 259,198 | $ | 63,837 | ||||||||||
Affiliated investments, at fair value (note 2) | 41,399 | 9,201 | 2,382 | |||||||||||||
Affiliated investment purchased with proceeds from securities lending, at fair value (note 2) | 136,238 | 61,127 | 19,183 | |||||||||||||
Cash | 3 | — | 1 | |||||||||||||
Receivable for dividends and interest | 989 | 154 | 32 | |||||||||||||
Receivable for investments sold | 15 | — | 54 | |||||||||||||
Receivable for capital shares sold | 518 | 418 | 143 | |||||||||||||
Receivable for variation margin (note 2) | 15 | 54 | 21 | |||||||||||||
Receivable from advisor (note 3) | — | — | 16 | |||||||||||||
Prepaid expenses and other assets | 29 | 45 | 36 | |||||||||||||
Total assets | 1,035,622 | 330,197 | 85,705 | |||||||||||||
LIABILITIES: | ||||||||||||||||
Payable upon return of securities loaned (note 2) | 136,238 | 61,127 | 19,183 | |||||||||||||
Payable for investments purchased | 39 | — | 120 | |||||||||||||
Payable for capital shares redeemed | 1,014 | 333 | 46 | |||||||||||||
Payable to affiliates (note 3) | 288 | 102 | 58 | |||||||||||||
Payable for distribution and shareholder servicing fees | 44 | 21 | 6 | |||||||||||||
Accrued expenses and other liabilities | 47 | 15 | 6 | |||||||||||||
Total liabilities | 137,670 | 61,598 | 19,419 | |||||||||||||
Net assets | $ | 897,952 | $ | 268,599 | $ | 66,286 | ||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||
Portfolio capital | $ | 577,769 | $ | 228,611 | $ | 61,269 | ||||||||||
Undistributed net investment income | 619 | 1,302 | 294 | |||||||||||||
Accumulated net realized gain (loss) on investments and futures contracts (note 2) | 37,301 | (2,497 | ) | (6,369 | ) | |||||||||||
Net unrealized appreciation of: | ||||||||||||||||
Investments | 279,150 | 40,330 | 10,806 | |||||||||||||
Futures contracts | 3,113 | 853 | 286 | |||||||||||||
Net assets | $ | 897,952 | $ | 268,599 | $ | 66,286 | ||||||||||
* Including securities loaned, at fair value | $ | 130,416 | $ | 58,844 | $ | 18,218 | ||||||||||
The accompanying notes are an integral part of the financial statements.
42 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
Class A: | ||||||||||||||||
Net assets | $119,761 | $ | 36,499 | $ | 12,667 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 5,568 | 3,046 | 1,281 | |||||||||||||
Net asset value and redemption price per share | $ 21.51 | $ | 11.98 | $ | 9.89 | |||||||||||
Maximum offering price per share1 | $ 22.76 | $ | 12.68 | $ | 10.47 | |||||||||||
Class B2: | ||||||||||||||||
Net assets | $ 7,351 | — | — | |||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 347 | — | — | |||||||||||||
Net asset value, offering price, and redemption price per share3 | $ 21.19 | — | — | |||||||||||||
Class C: | ||||||||||||||||
Net assets | $ 8,651 | $ | 3,100 | $ | 1,645 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 406 | 266 | 173 | |||||||||||||
Net asset value, offering price, and redemption price per share3 | $ 21.32 | $ | 11.67 | $ | 9.52 | |||||||||||
Class R: | ||||||||||||||||
Net assets | $ 12,979 | $ | 26,458 | $ | 4,795 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 605 | 2,230 | 496 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ 21.47 | $ | 11.86 | $ | 9.66 | |||||||||||
Class Y: | ||||||||||||||||
Net assets | $749,210 | $ | 202,542 | $ | 47,179 | |||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 34,848 | 16,841 | 4,759 | |||||||||||||
Net asset value, offering price, and redemption price per share | $ 21.50 | $ | 12.03 | $ | 9.91 | |||||||||||
1 | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge of 5.50%. | |
2 | No new or additional investments are allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. 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. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 43
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Statements of Operations | For the year ended October 31, 2010, all dollars are rounded to thousands (000) |
Equity | Mid Cap | Small Cap | ||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends from unaffiliated investments | $ | 18,619 | $ | 3,610 | $ | 756 | ||||||||||
Dividends from affiliated investments | 62 | 14 | 3 | |||||||||||||
Interest from unaffiliated investments | 8 | 3 | 1 | |||||||||||||
Securities lending income | 179 | 96 | 86 | |||||||||||||
Total investment income | 18,868 | 3,723 | 846 | |||||||||||||
EXPENSES (note 3): | ||||||||||||||||
Investment advisory fees | 2,330 | 595 | 252 | |||||||||||||
Administration fees | 2,099 | 549 | 216 | |||||||||||||
Transfer agent fees | 303 | 106 | 102 | |||||||||||||
Custodian fees | 48 | 12 | 3 | |||||||||||||
Legal fees | 15 | 15 | 15 | |||||||||||||
Audit fees | 32 | 32 | 32 | |||||||||||||
Registration fees | 57 | 52 | 52 | |||||||||||||
Postage and printing fees | 85 | 24 | 10 | |||||||||||||
Directors’ fees | 32 | 32 | 33 | |||||||||||||
Other expenses | 72 | 43 | 66 | |||||||||||||
Distribution and shareholder servicing fees: | ||||||||||||||||
Class A | 296 | 70 | 27 | |||||||||||||
Class B | 86 | — | — | |||||||||||||
Class C | 86 | 30 | 15 | |||||||||||||
Class R | 60 | 90 | 19 | |||||||||||||
Total expenses | 5,601 | 1,650 | 842 | |||||||||||||
Less: Fee waivers (note 3) | (1,652 | ) | (285 | ) | (419 | ) | ||||||||||
Less: Expense reimbursement from regulatory settlements (note 7) | (33 | ) | — | (20 | ) | |||||||||||
Total net expenses | 3,916 | 1,365 | 403 | |||||||||||||
Investment income – net | 14,952 | 2,358 | 443 | |||||||||||||
REALIZED AND UNREALIZED GAINS – NET: | ||||||||||||||||
Net realized gain on: | ||||||||||||||||
Unaffiliated investments | 66,716 | 7,279 | 1,593 | |||||||||||||
Affiliated investments | 66 | — | — | |||||||||||||
Futures contracts | 408 | 3,002 | 611 | |||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||
Unaffiliated investments | 55,559 | 42,257 | 11,124 | |||||||||||||
Affiliated investments | 116 | — | — | |||||||||||||
Future contracts | 3,479 | 1,350 | 608 | |||||||||||||
Net gain on investments and futures contracts | 126,344 | 53,888 | 13,936 | |||||||||||||
Net increase in net assets resulting from operations | $ | 141,296 | $ | 56,246 | $ | 14,379 | ||||||||||
The accompanying notes are an integral part of the financial statements.
44 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Statements of Changes in Net Assets | all dollars are rounded to thousands (000) |
Equity | Mid Cap | Small Cap | ||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 14,952 | $ | 21,079 | $ | 2,358 | $ | 2,317 | $ | 443 | $ | 531 | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Unaffiliated investments | 66,716 | (381 | ) | 7,279 | (12,559 | ) | 1,593 | (8,262 | ) | |||||||||||||||||||
Affiliated investments | 66 | (117 | ) | — | — | — | — | |||||||||||||||||||||
Futures contracts | 408 | 2,686 | 3,002 | (2,979 | ) | 611 | (288 | ) | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation of: | ||||||||||||||||||||||||||||
Unaffiliated investments | 55,559 | 51,528 | 42,257 | 34,624 | 11,124 | 9,224 | ||||||||||||||||||||||
Affiliated investments | 116 | (1,386 | ) | — | — | — | — | |||||||||||||||||||||
Futures contracts | 3,479 | 2,540 | 1,350 | 2,869 | 608 | 246 | ||||||||||||||||||||||
Net increase in net assets resulting from operations | 141,296 | 75,949 | 56,246 | 24,272 | 14,379 | 1,451 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (1,712 | ) | (2,257 | ) | (181 | ) | (115 | ) | (59 | ) | (58 | ) | ||||||||||||||||
Class B | (58 | ) | (149 | ) | — | (5 | ) | — | (3 | ) | ||||||||||||||||||
Class C | (60 | ) | (116 | ) | (2 | ) | (12 | ) | — | (7 | ) | |||||||||||||||||
Class R | (145 | ) | (198 | ) | (77 | ) | (63 | ) | (15 | ) | (11 | ) | ||||||||||||||||
Class Y | (13,280 | ) | (19,546 | ) | (1,705 | ) | (1,368 | ) | (344 | ) | (427 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (251 | ) | — | — | (883 | ) | — | (868 | ) | |||||||||||||||||||
Class B | (21 | ) | — | — | (80 | ) | — | (97 | ) | |||||||||||||||||||
Class C | (19 | ) | — | — | (204 | ) | — | (207 | ) | |||||||||||||||||||
Class R | (23 | ) | — | — | (581 | ) | — | (185 | ) | |||||||||||||||||||
Class Y | (1,734 | ) | — | — | (9,460 | ) | — | (6,118 | ) | |||||||||||||||||||
Total distributions | (17,303 | ) | (22,266 | ) | (1,965 | ) | (12,771 | ) | (418 | ) | (7,981 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | $ | 13,953 | $ | 15,557 | $ | 15,229 | $ | 13,274 | $ | 4,995 | $ | 5,583 | ||||||||||||||||
Reinvestment of distributions | 1,881 | 2,158 | 169 | 920 | 56 | 882 | ||||||||||||||||||||||
Payments for redemptions | (26,818 | ) | (24,174 | ) | (8,091 | ) | (4,446 | ) | (3,387 | ) | (3,361 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (10,984 | ) | (6,459 | ) | 7,307 | 9,748 | 1,664 | 3,104 | ||||||||||||||||||||
Class B1: | ||||||||||||||||||||||||||||
Proceeds from sales | 45 | 33 | — | 34 | — | 3 | ||||||||||||||||||||||
Reinvestment of distributions | 77 | 146 | — | 78 | — | 98 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (3,779 | ) | (3,587 | ) | — | (1,187 | ) | — | (644 | ) | ||||||||||||||||||
Decrease in net assets from Class B transactions | (3,657 | ) | (3,408 | ) | — | (1,075 | ) | — | (543 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 641 | 792 | 476 | 252 | 131 | 141 | ||||||||||||||||||||||
Reinvestment of distributions | 72 | 106 | 2 | 180 | — | 198 | ||||||||||||||||||||||
Payments for redemptions (note 3) | (1,866 | ) | (2,424 | ) | (821 | ) | (929 | ) | (200 | ) | (324 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (1,153 | ) | (1,526 | ) | (343 | ) | (497 | ) | (69 | ) | 15 | |||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Proceeds from sales | 4,795 | 5,367 | 16,123 | 6,776 | 2,425 | 1,902 | ||||||||||||||||||||||
Reinvestment of distributions | 168 | 198 | 77 | 644 | 15 | 196 | ||||||||||||||||||||||
Payments for redemptions | (4,447 | ) | (5,283 | ) | (6,053 | ) | (4,346 | ) | (942 | ) | (738 | ) | ||||||||||||||||
Increase in net assets from Class R transactions | 516 | 282 | 10,147 | 3,074 | 1,498 | 1,360 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 91,079 | 170,677 | 38,910 | 41,509 | 9,236 | 13,371 | ||||||||||||||||||||||
Reinvestment of distributions | 8,001 | 9,611 | 837 | 6,315 | 140 | 3,291 | ||||||||||||||||||||||
Payments for redemptions | (281,599 | ) | (352,443 | ) | (43,716 | ) | (70,209 | ) | (15,806 | ) | (22,718 | ) | ||||||||||||||||
Decrease in net assets from Class Y transactions | (182,519 | ) | (172,155 | ) | (3,969 | ) | (22,385 | ) | (6,430 | ) | (6,056 | ) | ||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (197,797 | ) | (183,266 | ) | 13,142 | (11,135 | ) | (3,337 | ) | (2,120 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (73,804 | ) | (129,583 | ) | 67,423 | 366 | 10,624 | (8,650 | ) | |||||||||||||||||||
Net assets at beginning of period | 971,756 | 1,101,339 | 201,176 | 200,810 | 55,662 | 64,312 | ||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||
Net assets at end of period | $ | 897,952 | $ | 971,756 | $ | 268,599 | $ | 201,176 | $ | 66,286 | $ | 55,662 | ||||||||||||||||
Undistributed net investment income at end of period | $ | 619 | $ | 953 | $ | 1,302 | $ | 1,313 | $ | 294 | $ | 285 | ||||||||||||||||
1 | No new or additional investments are allowed in Class B shares, except for permitted exchanges and reinvestment of dividends. See note 1 in Notes to Financial Statements. |
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 45
Table of Contents
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 | ||||||||||||||||||||||||||||||||||
Equity Index Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.86 | $ | 0.29 | $ | 2.70 | $ | 2.99 | $ | (0.30 | ) | $ | (0.04 | ) | $ | (0.34 | ) | $ | 21.51 | ||||||||||||||||||||||
20092 | 17.61 | 0.34 | 1.27 | 1.61 | (0.36 | ) | — | (0.36 | ) | 18.86 | |||||||||||||||||||||||||||||||
20082 | 28.67 | 0.42 | (10.57 | ) | (10.15 | ) | (0.38 | ) | (0.53 | ) | (0.91 | ) | 17.61 | ||||||||||||||||||||||||||||
20072 | 25.80 | 0.37 | 3.16 | 3.53 | (0.36 | ) | (0.30 | ) | (0.66 | ) | 28.67 | ||||||||||||||||||||||||||||||
20062 | 22.59 | 0.33 | 3.21 | 3.54 | (0.33 | ) | — | (0.33 | ) | 25.80 | |||||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.58 | $ | 0.13 | $ | 2.66 | $ | 2.79 | $ | (0.14 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | 21.19 | ||||||||||||||||||||||
20092 | 17.35 | 0.22 | 1.25 | 1.47 | (0.24 | ) | — | (0.24 | ) | 18.58 | |||||||||||||||||||||||||||||||
20082 | 28.27 | 0.24 | (10.42 | ) | (10.18 | ) | (0.21 | ) | (0.53 | ) | (0.74 | ) | 17.35 | ||||||||||||||||||||||||||||
20072 | 25.47 | 0.17 | 3.11 | 3.28 | (0.18 | ) | (0.30 | ) | (0.48 | ) | 28.27 | ||||||||||||||||||||||||||||||
20062 | 22.31 | 0.15 | 3.17 | 3.32 | (0.16 | ) | — | (0.16 | ) | 25.47 | |||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.70 | $ | 0.13 | $ | 2.67 | $ | 2.80 | $ | (0.14 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | 21.32 | ||||||||||||||||||||||
20092 | 17.46 | 0.21 | 1.26 | 1.47 | (0.23 | ) | — | (0.23 | ) | 18.70 | |||||||||||||||||||||||||||||||
20082 | 28.45 | 0.24 | (10.48 | ) | (10.24 | ) | (0.22 | ) | (0.53 | ) | (0.75 | ) | 17.46 | ||||||||||||||||||||||||||||
20072 | 25.62 | 0.17 | 3.14 | 3.31 | (0.18 | ) | (0.30 | ) | (0.48 | ) | 28.45 | ||||||||||||||||||||||||||||||
20062 | 22.44 | 0.15 | 3.19 | 3.34 | (0.16 | ) | — | (0.16 | ) | 25.62 | |||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.83 | $ | 0.23 | $ | 2.70 | $ | 2.93 | $ | (0.25 | ) | $ | (0.04 | ) | $ | (0.29 | ) | $ | 21.47 | ||||||||||||||||||||||
20092 | 17.58 | 0.29 | 1.28 | 1.57 | (0.32 | ) | — | (0.32 | ) | 18.83 | |||||||||||||||||||||||||||||||
20082 | 28.63 | 0.35 | (10.54 | ) | (10.19 | ) | (0.33 | ) | (0.53 | ) | (0.86 | ) | 17.58 | ||||||||||||||||||||||||||||
20072 | 25.77 | 0.29 | 3.17 | 3.46 | (0.30 | ) | (0.30 | ) | (0.60 | ) | 28.63 | ||||||||||||||||||||||||||||||
20062 | 22.57 | 0.26 | 3.21 | 3.47 | (0.27 | ) | — | (0.27 | ) | 25.77 | |||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 18.86 | $ | 0.34 | $ | 2.69 | $ | 3.03 | $ | (0.35 | ) | $ | (0.04 | ) | $ | (0.39 | ) | $ | 21.50 | ||||||||||||||||||||||
20092 | 17.61 | 0.38 | 1.27 | 1.65 | (0.40 | ) | — | (0.40 | ) | 18.86 | |||||||||||||||||||||||||||||||
20082 | 28.66 | 0.48 | (10.56 | ) | (10.08 | ) | (0.44 | ) | (0.53 | ) | (0.97 | ) | 17.61 | ||||||||||||||||||||||||||||
20072 | 25.79 | 0.44 | 3.16 | 3.60 | (0.43 | ) | (0.30 | ) | (0.73 | ) | 28.66 | ||||||||||||||||||||||||||||||
20062 | 22.58 | 0.39 | 3.21 | 3.60 | (0.39 | ) | — | (0.39 | ) | 25.79 | |||||||||||||||||||||||||||||||
Mid Cap Index Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.52 | $ | 0.09 | $ | 2.45 | $ | 2.54 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | $ | 11.98 | |||||||||||||||||||||||
20092 | 8.83 | 0.09 | 1.27 | 1.36 | (0.07 | ) | (0.60 | ) | (0.67 | ) | 9.52 | ||||||||||||||||||||||||||||||
20082 | 15.69 | 0.13 | (5.30 | ) | (5.17 | ) | (0.10 | ) | (1.59 | ) | (1.69 | ) | 8.83 | ||||||||||||||||||||||||||||
20072 | 14.25 | 0.15 | 2.08 | 2.23 | (0.13 | ) | (0.66 | ) | (0.79 | ) | 15.69 | ||||||||||||||||||||||||||||||
20062 | 13.52 | 0.11 | 1.55 | 1.66 | (0.11 | ) | (0.82 | ) | (0.93 | ) | 14.25 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.28 | $ | 0.01 | $ | 2.39 | $ | 2.40 | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 11.67 | |||||||||||||||||||||||
20092 | 8.64 | 0.04 | 1.23 | 1.27 | (0.03 | ) | (0.60 | ) | (0.63 | ) | 9.28 | ||||||||||||||||||||||||||||||
20082 | 15.41 | 0.04 | (5.19 | ) | (5.15 | ) | (0.03 | ) | (1.59 | ) | (1.62 | ) | 8.64 | ||||||||||||||||||||||||||||
20072 | 14.03 | 0.04 | 2.03 | 2.07 | (0.03 | ) | (0.66 | ) | (0.69 | ) | 15.41 | ||||||||||||||||||||||||||||||
20062 | 13.32 | — | 1.55 | 1.55 | (0.02 | ) | (0.82 | ) | (0.84 | ) | 14.03 | ||||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.43 | $ | 0.06 | $ | 2.43 | $ | 2.49 | $ | (0.06 | ) | $ | — | $ | (0.06 | ) | $ | 11.86 | |||||||||||||||||||||||
20092 | 8.76 | 0.07 | 1.26 | 1.33 | (0.06 | ) | (0.60 | ) | (0.66 | ) | 9.43 | ||||||||||||||||||||||||||||||
20082 | 15.60 | 0.10 | (5.27 | ) | (5.17 | ) | (0.08 | ) | (1.59 | ) | (1.67 | ) | 8.76 | ||||||||||||||||||||||||||||
20072 | 14.19 | 0.11 | 2.07 | 2.18 | (0.11 | ) | (0.66 | ) | (0.77 | ) | 15.60 | ||||||||||||||||||||||||||||||
20062 | 13.48 | 0.07 | 1.55 | 1.62 | (0.09 | ) | (0.82 | ) | (0.91 | ) | 14.19 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 9.55 | $ | 0.12 | $ | 2.46 | $ | 2.58 | $ | (0.10 | ) | $ | — | $ | (0.10 | ) | $ | 12.03 | |||||||||||||||||||||||
20092 | 8.84 | 0.12 | 1.27 | 1.39 | (0.08 | ) | (0.60 | ) | (0.68 | ) | 9.55 | ||||||||||||||||||||||||||||||
20082 | 15.70 | 0.17 | (5.31 | ) | (5.14 | ) | (0.13 | ) | (1.59 | ) | (1.72 | ) | 8.84 | ||||||||||||||||||||||||||||
20072 | 14.27 | 0.19 | 2.07 | 2.26 | (0.17 | ) | (0.66 | ) | (0.83 | ) | 15.70 | ||||||||||||||||||||||||||||||
20062 | 13.53 | 0.15 | 1.56 | 1.71 | (0.15 | ) | (0.82 | ) | (0.97 | ) | 14.27 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
46 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||
15.94 | % | $ | 119,761 | 0.61 | % | 1.41 | % | 0.79 | % | 1.23 | % | 4 | % | |||||||||||||||||||||||
9.51 | 115,213 | 0.62 | 2.03 | 0.79 | 1.86 | 10 | ||||||||||||||||||||||||||||||
(36.35 | ) | 114,654 | 0.62 | 1.74 | 0.78 | 1.58 | 4 | |||||||||||||||||||||||||||||
13.93 | 213,957 | 0.62 | 1.37 | 0.76 | 1.23 | 4 | ||||||||||||||||||||||||||||||
15.76 | 229,185 | 0.62 | 1.36 | 0.77 | 1.21 | 3 | ||||||||||||||||||||||||||||||
15.07 | % | $ | 7,351 | 1.36 | % | 0.67 | % | 1.54 | % | 0.49 | % | 4 | % | |||||||||||||||||||||||
8.69 | 9,822 | 1.37 | 1.33 | 1.54 | 1.16 | 10 | ||||||||||||||||||||||||||||||
(36.82 | ) | 12,856 | 1.37 | 0.99 | 1.53 | 0.83 | 4 | |||||||||||||||||||||||||||||
13.05 | 31,343 | 1.37 | 0.63 | 1.51 | 0.49 | 4 | ||||||||||||||||||||||||||||||
14.94 | 43,369 | 1.37 | 0.63 | 1.52 | 0.48 | 3 | ||||||||||||||||||||||||||||||
15.05 | % | $ | 8,651 | 1.36 | % | 0.66 | % | 1.54 | % | 0.48 | % | 4 | % | |||||||||||||||||||||||
8.69 | 8,661 | 1.37 | 1.31 | 1.54 | 1.14 | 10 | ||||||||||||||||||||||||||||||
(36.83 | ) | 9,784 | 1.37 | 0.99 | 1.53 | 0.83 | 4 | |||||||||||||||||||||||||||||
13.09 | 19,585 | 1.37 | 0.62 | 1.51 | 0.48 | 4 | ||||||||||||||||||||||||||||||
14.93 | 20,714 | 1.37 | 0.62 | 1.52 | 0.47 | 3 | ||||||||||||||||||||||||||||||
15.63 | % | $ | 12,979 | 0.86 | % | 1.15 | % | 1.04 | % | 0.97 | % | 4 | % | |||||||||||||||||||||||
9.27 | 10,915 | 0.87 | 1.73 | 1.04 | 1.56 | 10 | ||||||||||||||||||||||||||||||
(36.51 | ) | 9,463 | 0.87 | 1.49 | 1.03 | 1.33 | 4 | |||||||||||||||||||||||||||||
13.65 | 7,230 | 0.87 | 1.07 | 1.01 | 0.93 | 4 | ||||||||||||||||||||||||||||||
15.47 | 3,419 | 0.87 | 1.08 | 1.15 | 0.80 | 3 | ||||||||||||||||||||||||||||||
16.18 | % | $ | 749,210 | 0.36 | % | 1.66 | % | 0.54 | % | 1.48 | % | 4 | % | |||||||||||||||||||||||
9.78 | 827,145 | 0.37 | 2.31 | 0.54 | 2.14 | 10 | ||||||||||||||||||||||||||||||
(36.18 | ) | 954,582 | 0.37 | 1.99 | 0.53 | 1.83 | 4 | |||||||||||||||||||||||||||||
14.22 | 1,714,008 | 0.37 | 1.62 | 0.51 | 1.48 | 4 | ||||||||||||||||||||||||||||||
16.07 | 1,935,614 | 0.37 | 1.61 | 0.52 | 1.46 | 3 | ||||||||||||||||||||||||||||||
26.79 | % | $ | 36,499 | 0.74 | % | 0.82 | % | 0.86 | % | 0.70 | % | 8 | % | |||||||||||||||||||||||
17.53 | 22,766 | 0.75 | 1.15 | 0.92 | 0.98 | 18 | ||||||||||||||||||||||||||||||
(36.46 | ) | 11,374 | 0.74 | 1.04 | 0.84 | 0.94 | 15 | |||||||||||||||||||||||||||||
16.32 | 17,868 | 0.75 | 1.02 | 0.81 | 0.96 | 15 | ||||||||||||||||||||||||||||||
12.70 | 14,722 | 0.75 | 0.77 | 0.81 | 0.71 | 7 | ||||||||||||||||||||||||||||||
25.86 | % | $ | 3,100 | 1.49 | % | 0.07 | % | 1.61 | % | (0.05 | )% | 8 | % | |||||||||||||||||||||||
16.68 | 2,766 | 1.50 | 0.48 | 1.67 | 0.31 | 18 | ||||||||||||||||||||||||||||||
(36.91 | ) | 3,101 | 1.48 | 0.30 | 1.58 | 0.20 | 15 | |||||||||||||||||||||||||||||
15.39 | 5,287 | 1.50 | 0.28 | 1.56 | 0.22 | 15 | ||||||||||||||||||||||||||||||
11.96 | 4,320 | 1.50 | 0.02 | 1.56 | (0.04 | ) | 7 | |||||||||||||||||||||||||||||
26.48 | % | $ | 26,458 | 0.99 | % | 0.56 | % | 1.11 | % | 0.44 | % | 8 | % | |||||||||||||||||||||||
17.29 | 12,212 | 1.00 | 0.89 | 1.17 | 0.72 | 18 | ||||||||||||||||||||||||||||||
(36.66 | ) | 8,157 | 1.00 | 0.80 | 1.10 | 0.70 | 15 | |||||||||||||||||||||||||||||
16.01 | 5,913 | 1.00 | 0.78 | 1.06 | 0.72 | 15 | ||||||||||||||||||||||||||||||
12.40 | 4,032 | 1.00 | 0.47 | 1.17 | 0.30 | 7 | ||||||||||||||||||||||||||||||
27.13 | % | $ | 202,542 | 0.49 | % | 1.07 | % | 0.61 | % | 0.95 | % | 8 | % | |||||||||||||||||||||||
17.92 | 163,432 | 0.50 | 1.47 | 0.67 | 1.30 | 18 | ||||||||||||||||||||||||||||||
(36.31 | ) | 177,038 | 0.49 | 1.29 | 0.59 | 1.19 | 15 | |||||||||||||||||||||||||||||
16.52 | 333,784 | 0.50 | 1.29 | 0.56 | 1.23 | 15 | ||||||||||||||||||||||||||||||
13.05 | 333,636 | 0.50 | 1.03 | 0.56 | 0.97 | 7 | ||||||||||||||||||||||||||||||
FIRST AMERICAN FUNDS 2010 ANNUAL REPORT 47
Table of Contents
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 (Loss) | Investments | Operations | Income | Realized Gains | Distributions | Period | ||||||||||||||||||||||||||||||||||
Small Cap Index Fund1 | |||||||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.90 | $ | 0.05 | $ | 1.99 | $ | 2.04 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | $ | 9.89 | |||||||||||||||||||||||
20092 | 8.91 | 0.06 | 0.27 | 0.33 | (0.07 | ) | (1.27 | ) | (1.34 | ) | 7.90 | ||||||||||||||||||||||||||||||
20082 | 15.37 | 0.13 | (4.88 | ) | (4.75 | ) | (0.10 | ) | (1.61 | ) | (1.71 | ) | 8.91 | ||||||||||||||||||||||||||||
20072 | 16.23 | 0.14 | 1.13 | 1.27 | (0.12 | ) | (2.01 | ) | (2.13 | ) | 15.37 | ||||||||||||||||||||||||||||||
20062 | 14.12 | 0.07 | 2.56 | 2.63 | (0.10 | ) | (0.42 | ) | (0.52 | ) | 16.23 | ||||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.62 | $ | (0.02 | ) | $ | 1.92 | $ | 1.90 | $ | — | $ | — | $ | — | $ | 9.52 | ||||||||||||||||||||||||
20092 | 8.66 | 0.01 | 0.26 | 0.27 | (0.04 | ) | (1.27 | ) | (1.31 | ) | 7.62 | ||||||||||||||||||||||||||||||
20082 | 15.02 | 0.04 | (4.76 | ) | (4.72 | ) | (0.03 | ) | (1.61 | ) | (1.64 | ) | 8.66 | ||||||||||||||||||||||||||||
20072 | 15.92 | 0.03 | 1.10 | 1.13 | (0.02 | ) | (2.01 | ) | (2.03 | ) | 15.02 | ||||||||||||||||||||||||||||||
20062 | 13.88 | (0.04 | ) | 2.51 | 2.47 | (0.01 | ) | (0.42 | ) | (0.43 | ) | 15.92 | |||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.73 | $ | 0.03 | $ | 1.94 | $ | 1.97 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | $ | 9.66 | |||||||||||||||||||||||
20092 | 8.76 | 0.04 | 0.26 | 0.30 | (0.06 | ) | (1.27 | ) | (1.33 | ) | 7.73 | ||||||||||||||||||||||||||||||
20082 | 15.16 | 0.10 | (4.81 | ) | (4.71 | ) | (0.08 | ) | (1.61 | ) | (1.69 | ) | 8.76 | ||||||||||||||||||||||||||||
20072 | 16.04 | 0.11 | 1.11 | 1.22 | (0.09 | ) | (2.01 | ) | (2.10 | ) | 15.16 | ||||||||||||||||||||||||||||||
20062 | 13.97 | 0.03 | 2.53 | 2.56 | (0.07 | ) | (0.42 | ) | (0.49 | ) | 16.04 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||||||
20102 | $ | 7.91 | $ | 0.07 | $ | 2.00 | $ | 2.07 | $ | (0.07 | ) | $ | — | $ | (0.07 | ) | $ | 9.91 | |||||||||||||||||||||||
20092 | 8.92 | 0.09 | 0.25 | 0.34 | (0.08 | ) | (1.27 | ) | (1.35 | ) | 7.91 | ||||||||||||||||||||||||||||||
20082 | 15.37 | 0.16 | (4.88 | ) | (4.72 | ) | (0.12 | ) | (1.61 | ) | (1.73 | ) | 8.92 | ||||||||||||||||||||||||||||
20072 | 16.23 | 0.18 | 1.13 | 1.31 | (0.16 | ) | (2.01 | ) | (2.17 | ) | 15.37 | ||||||||||||||||||||||||||||||
20062 | 14.12 | 0.11 | 2.55 | 2.66 | (0.13 | ) | (0.42 | ) | (0.55 | ) | 16.23 | ||||||||||||||||||||||||||||||
1 | Per share data calculated using average shares outstanding method. | |
2 | For the period November 1 to October 31 in the fiscal year indicated. | |
3 | 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.
48 FIRST AMERICAN FUNDS 2010 ANNUAL REPORT
Table of Contents
Ratio of | Ratio of Net | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Investment | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | Income (Loss) | |||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income (Loss) | Net Assets | to Average | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | Net Assets | Turnover | ||||||||||||||||||||||||||||||
Return3 | Period (000) | Net Assets | Net Assets | Waivers) | (Excluding Waivers) | Rate | ||||||||||||||||||||||||||||||
25.91 | % | $ | 12,667 | 0.79 | % | 0.55 | % | 1.49 | % | (0.15 | )% | 12 | % | |||||||||||||||||||||||
6.34 | 8,591 | 0.82 | 0.87 | 1.66 | 0.03 | 22 | ||||||||||||||||||||||||||||||
(34.15 | ) | 6,043 | 0.82 | 1.09 | 1.31 | 0.60 | 19 | |||||||||||||||||||||||||||||
8.56 | 9,109 | 0.83 | 0.92 | 1.12 | 0.63 | 12 | ||||||||||||||||||||||||||||||
19.02 | 10,639 | 0.83 | 0.47 | 1.08 | 0.22 | 17 | ||||||||||||||||||||||||||||||
24.93 | % | $ | 1,645 | 1.54 | % | (0.20 | )% | 2.24 | % | (0.90 | )% | 12 | % | |||||||||||||||||||||||
5.60 | 1,380 | 1.57 | 0.17 | 2.41 | (0.67 | ) | 22 | |||||||||||||||||||||||||||||
(34.67 | ) | 1,531 | 1.57 | 0.34 | 2.06 | (0.15 | ) | 19 | ||||||||||||||||||||||||||||
7.78 | 2,916 | 1.58 | 0.17 | 1.87 | (0.12 | ) | 12 | |||||||||||||||||||||||||||||
18.15 | 2,662 | 1.58 | (0.28 | ) | 1.83 | (0.53 | ) | 17 | ||||||||||||||||||||||||||||
25.55 | % | $ | 4,795 | 1.04 | % | 0.30 | % | 1.74 | % | (0.40 | )% | 12 | % | |||||||||||||||||||||||
6.08 | 2,512 | 1.07 | 0.55 | 1.91 | (0.29 | ) | 22 | |||||||||||||||||||||||||||||
(34.33 | ) | 1,121 | 1.08 | 0.87 | 1.57 | 0.38 | 19 | |||||||||||||||||||||||||||||
8.34 | 703 | 1.08 | 0.71 | 1.37 | 0.43 | 12 | ||||||||||||||||||||||||||||||
18.75 | 280 | 1.08 | 0.23 | 1.47 | (0.16 | ) | 17 | |||||||||||||||||||||||||||||
26.22 | % | $ | 47,179 | 0.54 | % | 0.80 | % | 1.24 | % | 0.10 | % | 12 | % | |||||||||||||||||||||||
6.50 | 43,179 | 0.57 | 1.19 | 1.41 | 0.35 | 22 | ||||||||||||||||||||||||||||||
(33.95 | ) | 54,932 | 0.57 | 1.33 | 1.06 | 0.84 | 19 | |||||||||||||||||||||||||||||
8.84 | 114,343 | 0.58 | 1.16 | 0.87 | 0.87 | 12 | ||||||||||||||||||||||||||||||
19.32 | 135,802 | 0.58 | 0.72 | 0.83 | 0.47 | 17 | ||||||||||||||||||||||||||||||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
1 > | Organization |
Equity Index Fund, Mid Cap Index Fund, and Small Cap Index 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 October 31, 2010, FAIF offered 37 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund are each diversified open-end management investment companies.
FAIF offers Class A, Class C, Class R, and Class Y shares. Class A shares are sold with a front-end sales charge. Class C shares may be subject to a contingent deferred sales charge for 12 months. 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. Prior to the close of business on June 30, 2008, each fund offered Class B shares. Subsequent to that date, no new or additional investments are allowed in Class B shares, except for permitted exchanges and any reinvested dividends. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years.
The funds’ prospectus provides descriptions of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees 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. 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 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.
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 may be valued at their amortized cost, which approximates fair value.
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 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 and over-the-counter options on securities, indices, and currencies 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 (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. As of October 31, 2010, Small Cap Index Fund
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held internally fair valued securities with a total fair value of $0 or 0.0% of the fund’s 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.).
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 October 31, 2010, each fund’s investments were classified as follows:
Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Equity Index Fund | ||||||||||||||||
Common Stocks | $ | 853,708 | $ | — | $ | — | $ | 853,708 | ||||||||
Short-Term Investments | 37,707 | 6,400 | — | 44,107 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 136,238 | — | — | 136,238 | ||||||||||||
Total Investments | $ | 1,027,653 | $ | 6,400 | $ | — | $ | 1,034,053 | ||||||||
Mid Cap Index Fund | ||||||||||||||||
Common Stocks | $ | 256,878 | $ | — | $ | — | $ | 256,878 | ||||||||
Warrant | — | — | — | — | ||||||||||||
Short-Term Investments | 9,201 | 2,320 | — | 11,521 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 61,127 | — | — | 61,127 | ||||||||||||
Total Investments | $ | 327,206 | $ | 2,320 | $ | — | $ | 329,526 | ||||||||
Small Cap Index Fund | ||||||||||||||||
Common Stocks | $ | 62,907 | $ | — | $ | — | $ | 62,907 | ||||||||
Closed-End Fund | 10 | — | — | 10 | ||||||||||||
Warrants | — | — | — | — | ||||||||||||
Short-Term Investments | 2,382 | 920 | — | 3,302 | ||||||||||||
Investment Purchased with Proceeds from Securities Lending | 19,183 | — | 19,183 | |||||||||||||
Total Investments | $ | 84,482 | $ | 920 | $ | — | $ | 85,402 | ||||||||
Refer to each fund’s Schedule of Investments for further sector breakout.
As of October 31, 2010, each fund’s investments in other financial instruments* were classified as follows:
Total | ||||||||||||||||
Fund | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Equity Index Fund | $ | 3,113 | $ | — | $ | — | $ | 3,113 | ||||||||
Mid Cap Index Fund | 853 | — | — | 853 | ||||||||||||
Small Cap Index Fund | 286 | — | — | 286 | ||||||||||||
* | Other financial instruments include futures, which are valued at the unrealized appreciation (depreciation) on the instrument. |
During the fiscal year ended October 31, 2010, the funds recognized no significant transfers between valuation levels. Mid Cap Index and Small Cap Index hold investments that are included in Level 3, however the total fair value of these investments for each respective fund rounded to zero at both fiscal years ended October 31, 2010 and October 31, 2009 and therefore no Level 3 rollforward is needed.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the sales price and the underlying cost of the security on the transaction date.
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid annually for Mid Cap Index Fund and Small Cap Index Fund and quarterly for Equity Index Fund. Distributions are payable in cash or reinvested in additional shares of the fund. 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 taxes is required.
As of October 31, 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 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 losses deferred from wash sales, the tax recognition of mark to market gains (losses) on open futures contracts, proceeds from securities litigation, and the sale of real estate investment trust securities (“REITs”). To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the period in which the differences arise.
On the Statements of Assets and Liabilities the following reclassifications were made:
Accumulated | Undistributed | |||||||||||
Net Realized | Net Investment | Portfolio | ||||||||||
Fund | Gain (Loss) | Income | Capital | |||||||||
Equity Index Fund | $ | (13,452 | ) | $ | (31 | ) | $ | 13,483 | ||||
Mid Cap Index Fund | 404 | (404 | ) | — | ||||||||
Small Cap Index Fund | 16 | (16 | ) | — | ||||||||
The character of distributions paid 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 period or year in which the amounts are distributed may differ from the period or year that the income or realized gains (losses) are recorded by the funds. The tax character of distributions paid during the fiscal years ended October 31, 2010 and October 31, 2009, were as follows:
October 31, 2010 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 15,255 | $ | 2,048 | $ | 17,303 | ||||||
Mid Cap Index Fund | 1,965 | — | 1,965 | |||||||||
Small Cap Index Fund | 418 | — | 418 | |||||||||
The funds also designate as distributions of long-term capital gains, to the extent necessary to fully distribute those gains, earnings and profits distributed to shareholders on their redemption of shares.
October 31, 2009 | ||||||||||||
Ordinary | Long Term | |||||||||||
Fund | Income | Gain | Total | |||||||||
Equity Index Fund | $ | 22,266 | $ | — | $ | 22,266 | ||||||
Mid Cap Index Fund | 1,563 | 11,208 | 12,771 | |||||||||
Small Cap Index Fund | 506 | 7,475 | 7,981 | |||||||||
As of October 31, 2010, the components of accumulated earnings on a tax basis were as follows:
Accumulated | ||||||||||||||||||||
Undistributed | Undistributed | Capital and | Total | |||||||||||||||||
Ordinary | Long Term | Post October | Unrealized | Accumulated | ||||||||||||||||
Fund | Income | Capital Gains | Losses | Appreciation | Earnings | |||||||||||||||
Equity Index Fund | $ | 3,709 | $ | 52,878 | $ | — | $ | 263,612 | $ | 320,199 | ||||||||||
Mid Cap Index Fund | 1,313 | — | (201 | ) | 38,887 | 39,999 | ||||||||||||||
Small Cap Index Fund | 302 | — | (5,642 | ) | 10,366 | 5,026 | ||||||||||||||
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The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and the amount of gain (loss) recognized for tax purposes due to mark-to-market adjustments on open futures contracts.
As of October 31, 2010, Mid Cap Index Fund and Small Cap Index Fund had capital loss carryforwards of $201 and $5,642 respectively, which if not offset by subsequent capital gains, will expire in 2017.
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 derivatives 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 equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. In order to gain exposure or protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. Government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.
Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s Statement of Assets 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.
The funds’ outstanding futures contracts as of October 31, 2010, are disclosed in their Schedules of Investments.
For the fiscal year ended October 31, 2010, the quarterly average gross notional amounts of the derivatives held by the funds were:
Fund | Futures/Long | |||
Equity Index Fund | $ | 37,418 | ||
Mid Cap Index Fund | 15,890 | |||
Small Cap Index Fund | 4,305 | |||
As of October 31, 2010, the funds’ fair values of derivative instruments categorized by risk exposure were classified as follows:
Statement of | ||||||||||||||
Assets and Liabilities | Equity | Mid Cap | Small Cap | |||||||||||
Location | Index Fund | Index Fund | Index Fund | |||||||||||
Asset Derivatives | ||||||||||||||
Equity Contracts | Receivables, Net Assets – Unrealized Appreciation* | $ | 3,113 | $ | 853 | $ | 286 | |||||||
Balance as of October 31, 2010 | $ | 3,113 | $ | 853 | $ | 286 | ||||||||
* | 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 October 31, 2010:
Amount of realized gain (loss) on derivatives recognized in income:
Equity Index Fund | Futures | |||
Equity Contracts | $ | 408 | ||
Mid Cap Index Fund | Futures | |||
Equity Contracts | $ | 3,002 | ||
Small Cap Index Fund | Futures | |||
Equity Contracts | $ | 611 | ||
Change in unrealized appreciation on derivatives recognized in income:
Equity Index Fund | Futures | |||
Equity Contracts | $ | 3,479 | ||
Mid Cap Index Fund | Futures | |||
Equity Contracts | $ | 1,350 | ||
Small Cap Index Fund | Futures | |||
Equity Contracts | $ | 608 | ||
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
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. At October 31, 2010, Small Cap Index Fund had investments in illiquid securities with a total value of $0 or 0.0% of total net assets.
Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:
Dates | Cost | |||||||||||
Small Cap Index Fund | Shares | Acquired | Basis | |||||||||
Greenhunter Energy, Warrants | — | * | 6/08 | — | ||||||||
Indevus Pharmaceuticals, Escrow Shares | 4 | 3/09 | — | |||||||||
Lantronix, Warrants | — | * | 5/08 | — | ||||||||
* | Due to the presentation of the financial statements in thousands, this number rounds to zero. |
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 of 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 money market fund’s average daily net assets. Securities lending fees paid to U.S. Bank by the funds during the fiscal year ended October 31, 2010, were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 51 | ||
Mid Cap Index Fund | 31 | |||
Small Cap Index Fund | 29 | |||
Income from securities lending is recorded on the Statements of Operations as securities lending income net of fees paid to U.S. Bank.
SECURITY LITIGATION SETTLEMENTS – Cash from settlement proceeds related to portfolio securities no longer included in the portfolio is recorded as an adjustment to realized gains or losses when cash is received. Adjustments made during the fiscal year ended October 31, 2010, were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 272 | ||
Mid Cap Index Fund | 31 | |||
Small Cap Index Fund | 73 | |||
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds, or a combination of both methods. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal year ended October 31, 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
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equivalent dollar amounts had been invested in shares of 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 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.
3 > | Fees and Expenses |
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 Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund is 0.25%, 0.25%, and 0.40%, respectively. FAF Advisors has agreed to contractually waive fees and reimburse other fund expenses through February 28, 2011, so that total annual fund operating expenses, excluding indirect fees and expenses incurred through investment in exchange traded funds and other investment companies, as a percentage of average daily net assets, do not exceed the following amounts:
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Equity Index Fund | 0.62 | % | 1.37 | % | 1.37 | % | 0.87 | % | 0.37 | % | ||||||||||||
Mid Cap Index Fund | 0.75 | N/A | 1.50 | 1.00 | 0.50 | |||||||||||||||||
Small Cap Index Fund | 0.83 | N/A | 1.58 | 1.08 | 0.58 | |||||||||||||||||
NA = Not Applicable
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. This reimbursement, if any, is included in “Fee waivers” in the Statement 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 an annual basis, to 0.25% of the aggregate average daily net assets of all open-end funds in the First American Family of Funds up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. The funds are charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees are charged to each fund based upon the number of accounts within that fund. In addition to these fees, the funds may reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.
CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian 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 the custodian” in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund’s custodian expenses. For the fiscal year ended October 31, 2010, custodian fees for Equity Index Fund, Mid Cap Index Fund, and Small Cap Index Fund were increased by $1, $0, and $0, respectively, 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 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%,
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
1.00%, 1.00% and 0.50% of each fund’s average daily net assets attributable to Class A, Class B, Class C, and Class R shares, respectively. Class Y shares pay no distribution or shareholder servicing fees. These fees may be used by Quasar to provide compensation for sales support, distribution activities, and/or shareholder servicing activities.
Under the distribution agreement, the following amounts were retained by affiliates of FAF Advisors for the fiscal year ended October 31, 2010:
Fund | Amount | |||
Equity Index Fund | $ | 186 | ||
Mid Cap Index Fund | 19 | |||
Small Cap Index Fund | 10 | |||
OTHER FEES AND EXPENSES – In addition to 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 October 31, 2010, legal fees and expenses of $14 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 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 twelve months.
The CDSC for Class B shares and Class C shares is imposed on the value of the purchased shares or the value at the time of redemption, whichever is less.
For the fiscal year ended October 31, 2010, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:
Fund | Amount | |||
Equity Index Fund | $ | 39 | ||
Mid Cap Index Fund | 5 | |||
Small Cap Index Fund | 3 | |||
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4 > | Capital Share Transactions |
FAIF has 382 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:
Equity | Mid Cap | Small Cap | ||||||||||||||||||||||||||
Index Fund | Index Fund | Index Fund | ||||||||||||||||||||||||||
Year | Year | Year | Year | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | 10/31/10 | 10/31/09 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 684 | 950 | 1,393 | 1,515 | 562 | 765 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 92 | 133 | 16 | 123 | 6 | 130 | ||||||||||||||||||||||
Shares redeemed | (1,316 | ) | (1,484 | ) | (754 | ) | (535 | ) | (375 | ) | (485 | ) | ||||||||||||||||
Total Class A transactions | (540 | ) | (401 | ) | 655 | 1,103 | 193 | 410 | ||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 2 | 2 | — | 5 | — | 1 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | 9 | — | 11 | — | 15 | ||||||||||||||||||||||
Shares redeemed | (188 | ) | (223 | ) | — | (148 | ) | — | (96 | ) | ||||||||||||||||||
Total Class B transactions | (182 | ) | (212 | ) | — | (132 | ) | — | (80 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 31 | 48 | 46 | 32 | 15 | 20 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | 7 | — | 24 | — | 30 | ||||||||||||||||||||||
Shares redeemed | (92 | ) | (152 | ) | (78 | ) | (117 | ) | (23 | ) | (46 | ) | ||||||||||||||||
Total Class C transactions | (57 | ) | (97 | ) | (32 | ) | (61 | ) | (8 | ) | 4 | |||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 236 | 338 | 1,489 | 802 | 275 | 274 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 8 | 12 | 7 | 86 | 2 | 30 | ||||||||||||||||||||||
Shares redeemed | (219 | ) | (308 | ) | (561 | ) | (524 | ) | (106 | ) | (107 | ) | ||||||||||||||||
Total Class R transactions | 25 | 42 | 935 | 364 | 171 | 197 | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 4,435 | 10,499 | 3,623 | 5,103 | 1,017 | 1,908 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 390 | 593 | 79 | 838 | 16 | 483 | ||||||||||||||||||||||
Shares redeemed | (13,840 | ) | (21,437 | ) | (3,976 | ) | (8,845 | ) | (1,730 | ) | (3,096 | ) | ||||||||||||||||
Total Class Y transactions | (9,015 | ) | (10,345 | ) | (274 | ) | (2,904 | ) | (697 | ) | (705 | ) | ||||||||||||||||
Net increase (decrease) in capital shares | (9,769 | ) | (11,013 | ) | 1,284 | (1,630 | ) | (341 | ) | (174 | ) | |||||||||||||||||
Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal years ended October 31, 2010 and October 31, 2009, as follows:
Year Ended | Year Ended | |||||||
Fund | 10/31/10 | 10/31/09 | ||||||
Equity Index Fund | 126 | 131 | ||||||
Mid Cap Index Fund | — | 129 | ||||||
Small Cap Index Fund | — | 84 | ||||||
5 > | Investment Security Transactions |
During the fiscal year ended October 31, 2010, purchases of securities and proceeds from sales of securities other than temporary investments in short-term securities, were as follows:
Fund | Purchases | Sales | ||||||
Equity Index Fund | $ | 32,674 | $ | 257,311 | ||||
Mid Cap Index Fund | 48,405 | 16,709 | ||||||
Small Cap Index Fund | 8,477 | 6,734 | ||||||
6 > | Indemnifications |
The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
7 > | Regulatory Settlements |
On August 23, 2010, Equity Index and Small Cap Index Fund received settlement payments from the SEC related to the BISYS Fair Fund Settlement. The settlement was paid to funds that had used BISYS from June 1999 through June 2004. These funds had used BISYS as an administrator during this period. Because the settlement was for the overcharging of expenses to these funds, the amounts are shown in the funds’ Statements of Operations as an expense reimbursement from regulatory settlements.
8 > | New Accounting Pronouncement |
On January 21, 2010, the Financial Accounting Standard Board issued an Accounting Standards 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 financial statements.
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Notes to Financial Statements | October 31, 2010, all dollars and shares are rounded to thousands (000) |
9 > | Nuveen Acquisition |
On July 28, 2010, FAF Advisors and its parent company, U.S. Bank, entered into an agreement to sell a portion of FAF Advisor’s asset management business to Nuveen Investments, Inc. (the “Purchaser”). Included in the sale will be that part of FAF 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 FAF Advisors to terminate. On October 7, 2010, the funds’ board of directors considered and approved new investment advisory agreements for the funds with Nuveen Asset Management, a subsidiary of the Purchaser. 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 considered and approved 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.
10 > | Subsequent Events |
An affiliated pension plan (the “plan”) previously offered Mid Cap Index Fund as an investment option to plan participants. As a result of a decision to no longer offer this fund as an investment option, certain fund shares held in the plan were redeemed in-kind on December 20, 2010, totaling $35,015. In this transaction, the fund paid redemption proceeds by distributing a proportionate amount of securities in its portfolio. Remaining shareholders in the fund did not recognize any additional capital gains from the transaction.
Management has evaluated all other fund related events and transactions that occurred subsequent to October 31, 2010, through the date of issuance of the funds’ financial statements and determined that no additional events have occurred that require disclosure.
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Notice to Shareholders | October 31, 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 period ended October 31, 2010, each fund has designated long-term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:
Long Term | Ordinary | |||||||||||||||
Capital Gains | Income | Total | ||||||||||||||
Distributions | Distributions | Distributions | ||||||||||||||
Fund | (Tax Basis)1 | (Tax Basis)1 | (Tax Basis)2 | |||||||||||||
Equity Index Fund | 12.00 | % | 88.00 | % | 100.00 | % | ||||||||||
Mid Cap Index Fund | 0.00 | 100.00 | 100.00 | |||||||||||||
Small Cap Index Fund | 0.00 | 100.00 | 100.00 | |||||||||||||
1 Based on a percentage of the fund’s total distributions.
2 | 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:
Each fund has designated the following percentages of the ordinary income distributions during the fiscal period ended October 31, 2010 as dividends qualifying for the dividends received deduction available to corporate shareholders:
Fund | ||||||
Equity Index Fund | 100.00 | % | ||||
Mid Cap Index Fund | 99.06 | |||||
Small Cap Index Fund | 98.17 | |||||
In addition, each fund has designated the following percentages of the ordinary income distributions from net investment income during the fiscal period ended October 31, 2010 as qualified dividend income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Fund | ||||||
Equity Index Fund | 100.00 | % | ||||
Mid Cap Index Fund | 100.00 | |||||
Small Cap Index Fund | 100.00 | |||||
Additional Information Applicable to Foreign Shareholders Only:
The percentage of 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 | ||||||
Equity Index Fund | 0.24 | % | ||||
Mid Cap Index Fund | 3.42 | |||||
Small Cap Index Fund | 2.23 | |||||
The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund was as follows:
Fund | ||||||
Equity Index Fund | 0.00 | % | ||||
Mid Cap Index Fund | 0.00 | |||||
Small Cap Index Fund | 0.00 | |||||
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.
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Notice to Shareholders | October 31, 2010 (unaudited) |
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.
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 considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to each Fund, (2) the investment performance of each Fund, (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 Board met in executive session with its 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 the 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 the 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, (iii) monitoring the performance of the various organizations providing services to each Fund, including the Fund’s 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 type 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 (“CCO”).
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, extent and quality 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, unless otherwise noted.
Equity Index Fund. The Board considered that the Fund outperformed both its performance universe median and its benchmark index for all periods. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
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Mid Cap Index Fund. The Board considered that the Fund outperformed both its performance universe median and its benchmark index for all periods. In light of the Fund’s competitive performance, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.
Small Cap Index Fund. The Board considered that the Fund outperformed its benchmark index for all periods. The Board also 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 five-year periods. In light of the Fund’s competitive performance, the Board considered that 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 investment companies, investment companies 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 expense ratio after waivers compared to the median expense ratio after waivers 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 expense ratios of each Fund is set forth below:
Mid Cap Index Fund, Small Cap Index Fund. The Board considered that, after waivers, each Fund’s advisory fee is lower than its peer group median and that each Fund’s total expense ratio is equal to that of its peer group median. The Board concluded that each Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Equity Index Fund. The Board considered that, after waivers, the Fund’s advisory fee and total expense ratio are equal to that of the peer group median. The Board concluded that the Fund’s advisory fee and total expense ratio are reasonable in light of the services provided.
Economies of Scale in Providing Investment Advisory Services
The Board considered the extent to which each Fund’s investment advisory fee reflects economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability likely will increase somewhat as assets grow over time. The Board considered that, although most 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, 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.
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Notice to Shareholders | October 31, 2010 (unaudited) |
The Board also considered FAF Advisors’ use of the Funds’ portfolio brokerage transactions to obtain research. The Board concluded, based on its own review and on representations of FAF Advisors and the CCO, that FAF Advisors’ use of “soft” commission dollars was consistent with regulatory requirements.
After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the interest of each Fund and its shareholders.
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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 | |||||
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Notice to Shareholders | October 31, 2010 (unaudited) |
Independent Directors – concluded | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | Number of Portfolios | Directorships | |||||||
Name, Address, and | Held | and Length of | Principal Occupation(s) | in Fund Complex | Held by | |||||
Year of Birth | with Funds | Time Served | During Past 5 Years | Overseen by Director | Director † | |||||
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 | |||||
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.
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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 65
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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.
independent directors.
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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 October 31, 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.
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 |
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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 12/2010 AR-INDEX
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 $1,173,401 in the fiscal year ended October 31, 2010 and $1,139,190 in the fiscal year ended October 31, 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 $3,918 in the fiscal year ended October 31, 2010 and $108,154 in the fiscal year ended October 31, 2009, including fees associated with the semi-annual review of fund disclosures. | |
(c) | Tax Fees — E&Y billed the registrant fees of $237,729 in the fiscal year ended October 31, 2010 and $170,849 in the fiscal year ended October 31, 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 October 31, 2010 and October 31, 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 |
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On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the year. | ||
The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings. | ||
In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following: | ||
Audit Services | ||
The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following: |
• | Annual Fund financial statement audits | ||
• | Seed audits (related to new product filings, as required) | ||
• | SEC and regulatory filings and consents |
Audit-related Services | ||
In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis. |
• | Accounting consultations | ||
• | Fund merger support services | ||
• | Other accounting related matters | ||
• | Agreed Upon Procedure Reports | ||
• | Attestation Reports | ||
• | Other Internal Control Reports |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis. | ||
Tax Services | ||
The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis. |
• | Tax compliance services related to the filing or amendment of the following: |
• | Federal, state and local income tax compliance, and | ||
• | Sales and use tax compliance |
• | Timely RIC qualification reviews | ||
• | Tax distribution analysis and planning | ||
• | Tax authority examination services |
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• | Tax appeals support services | ||
• | Accounting methods studies | ||
• | Fund merger support services | ||
• | Tax consulting services and related projects |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis. | ||
Other Non-audit Services | ||
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting. | ||
Proscribed Services | ||
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services: |
• | Management functions | ||
• | Accounting and bookkeeping services | ||
• | Internal audit services | ||
• | Financial information systems design and implementation | ||
• | Valuation services supporting the financial statements | ||
• | Actuarial services supporting the financial statements | ||
• | Executive recruitment | ||
• | Expert services (e.g., litigation support) | ||
• | Investment banking |
Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex | ||
The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, LLC, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds. | ||
Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates. | ||
(e)(2) | All of the services described in paragraphs (b) through (d) of this Item 4 were pre-approved by the audit committee. | |
(f) | All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period end were performed by the principal accountant’s full-time, permanent employees. |
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(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 $1,017,257 in the fiscal year October 31, 2010 and $1,071,003 in the fiscal year ended October 31, 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
(a) | The schedule is included as part of the report to shareholders filed under Item 1 of this Form. | |
(b) | Not applicable. |
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. |
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(a)(2) | Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed as exhibits hereto. | |
(a)(3) | Not applicable. | |
(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. |
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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.
By: | /s/ Thomas S. Schreier, Jr. | |||
Thomas S. Schreier, Jr. | ||||
President |
Date: December 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.
By: | /s/ Thomas S. Schreier, Jr. | |||
Thomas S. Schreier, Jr. | ||||
President |
Date: December 30, 2010
By: | /s/ Charles D. Gariboldi, Jr. | |||
Charles D. Gariboldi, Jr. | ||||
Treasurer |
Date: December 30, 2010