Table of Contents
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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 (Address of principal executive offices) | 55402 (Zip code) |
Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-677-3863
Date of fiscal period end: June 30
Date of reporting period: June 30, 2006
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
Table of Contents
Item 1. Report to Shareholders
Table of Contents
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138 | ||||||||
Certification | ||||||||
Certification |
Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.
Mutual fund investing involves risk; principal loss is possible.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE |
Table of Contents
Message to SHAREHOLDERS August 14, 2006
Dear Shareholders: | |
We invite you to take a few minutes to review the results of the funds’ most recent fiscal period. Because the funds have changed their fiscal year-end from September 30 to June 30, this report covers the nine-month time period from October 1, 2005, through June 30, 2006. |
This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.
Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.
Sincerely,
![]() | ![]() | |
Virginia L. Stringer | Thomas S. Schreier, Jr. | |
Chairperson of the Board First American Investment Funds, Inc. | President First American Investment Funds, Inc. |
First American Funds Annual Report 2006 1
Table of Contents
Arizona Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Arizona state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Arizona Tax Free Fund (the “fund”), Class Y shares, returned 0.92% for the fiscal period ended June 30, 2006 (Class A shares returned 0.73%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Arizona Municipal Debt Funds Category Average, was 1.03%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.
The fund’s exposure to higher-quality, intermediate maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Arizona was down by 32% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 76.4 | % | ||
General Obligations3 | 16.0 | |||
Certificates of Participation3 | 5.3 | |||
Short-Term Investments | 1.4 | |||
Other Assets and Liabilities, Net | 0.9 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 39.8 | % | ||
AA | 16.7 | |||
A | 14.8 | |||
BBB | 19.6 | |||
BB | 1.0 | |||
Non-Rated | 8.1 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.7% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
2 First American Funds Annual Report 2006
Table of Contents
Arizona Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 2/1/2000 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (3.58)% | (3.72)% | 4.02% | 5.60% | ||||||||||||
Class C | (0.55)% | (0.84)% | �� | 4.51% | 5.90% | |||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.73% | 0.53% | 4.92% | 6.32% | ||||||||||||
Class C | 0.42% | 0.12% | 4.51% | 5.90% | ||||||||||||
Class Y | 0.92% | 0.69% | 5.18% | 6.57% | ||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 6.26% |
Value of $10,000 Investment1,3 as of June 30, 2006
Arizona Tax Free Fund, Class A (NAV) | ![]() | $ | 14,808 | |||
Arizona Tax Free Fund, Class A (POP) | ![]() | $ | 14,184 | |||
Arizona Tax Free Fund, Class Y | ![]() | $ | 15,039 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 14,762 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704405.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704406.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. | |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. |
First American Funds Annual Report 2006 3
Table of Contents
Arizona Tax Free fund continued
Expense Example
As a shareholder of the Arizona Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 999.40 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 997.40 | $ | 5.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 999.80 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | $ | 2.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.06%, -0.26%, and -0.02% for Class A, Class C, and Class Y, respectively. |
4 First American Funds Annual Report 2006
Table of Contents
California Intermediate Tax Free fund
Investment Objective: current income that is exempt from both federal income tax and California state income tax to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American California Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.88% for the fiscal period ended June 30, 2006 (Class A shares returned 0.78%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper California Intermediate Municipal Debt Funds Category Average, was 0.47%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate-maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality, intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer than its Lehman benchmark most of the fiscal period. In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate maturity weighting.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 68.9 | % | ||
General Obligations3 | 19.5 | |||
Certificates of Participation3 | 7.6 | |||
Short-Term Investment | 2.2 | |||
Other Assets and Liabilities, Net | 1.8 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 53.0 | % | ||
AA | 7.1 | |||
A | 18.2 | |||
BBB | 19.2 | |||
Non-Rated | 2.5 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 8.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 5
Table of Contents
California Intermediate Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since | |||||||||||||||
Month | Inception | |||||||||||||||
Period* | 1 year | 5 years | 8/8/1997 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (1.51)% | (1.88)% | 3.52% | 4.18% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.78% | 0.36% | 4.00% | 4.45% | ||||||||||||
Class Y | 0.88% | 0.51% | 4.16% | 4.55% | ||||||||||||
Lehman 7-Year Municipal Bond Index2 | 0.56% | 0.15% | 4.45% | 4.85% |
Value of a $10,000 Investment1 as of June 30, 2006
California Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 14,724 | |||
California Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,392 | |||
California Intermediate Tax Free Fund, Class Y | ![]() | $ | 14,851 | |||
Lehman 7-Year Municipal Bond Index2 | ![]() | $ | 15,240 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704407.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704408.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 8/8/1997 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
6 First American Funds Annual Report 2006
Table of Contents
California Intermediate Tax Free fund continued
Expense Example
As a shareholder of the California Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1(1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,000.60 | $ | 4.22 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,001.40 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 0.06% and 0.14% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 7
Table of Contents
California Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and California state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American California Tax Free Fund (the “fund”), Class Y shares, returned 0.82% for the fiscal period ended June 30, 2006 (Class A shares returned 0.63%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper California Municipal Debt Funds Category Average, was 0.88%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
Due to the flattening of the municipal yield curve, the fund’s holdings with very short and very long maturities generally performed well this fiscal period, while high-quality, intermediate-maturity bonds generally showed the weakest performance. A more pronounced barbell portfolio structure – with reduced weighting in intermediate-term bonds – would have produced better results, especially if more emphasis had been placed on very short bonds and a higher allocation made at the long end of the curve (22 years or more). Despite a shorter duration, the greater rise in yields for intermediate maturities caused them to underperform longer-maturity bonds.
Lower-rated, higher-yielding bonds enjoyed strong performance. Generally, allocations to lower-rated securities benefited the fund, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Although the fund holds a variety of lower-rated securities, greater exposure to high-yield bonds, especially those with longer maturities, would also have helped over the past year due to the continued narrowing of yield spreads, which helped the performance of lower-rated bonds.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, throughout the fiscal period, the duration of the fund ranged from neutral to moderately long relative to the Lehman benchmark. In view of the flattening yield curve, we increased the weighting of longer maturity bonds during the period. We also slightly increased the fund’s position in higher-yielding, lower-quality bonds.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 76.1 | % | ||
General Obligations3 | 16.8 | |||
Certificates of Participation3 | 3.5 | |||
Short-Term Investments | 2.8 | |||
Other Assets and Liabilities, Net | 0.8 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 49.7 | % | ||
AA | 13.2 | |||
A | 14.7 | |||
BBB | 18.6 | |||
Non-Rated | 3.8 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
8 First American Funds Annual Report 2006
Table of Contents
California Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since | |||||||||||||||
Month | Inception | |||||||||||||||
Period* | 1 year | 5 years | 2/1/2000 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (3.66)% | (3.81)% | 4.05% | 5.63% | ||||||||||||
Class C | (0.64)% | (0.92)% | 4.53% | 5.95% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.63% | 0.42% | 4.96% | 6.34% | ||||||||||||
Class C | 0.33% | 0.05% | 4.53% | 5.95% | ||||||||||||
Class Y | 0.82% | 0.77% | 5.22% | 6.61% | ||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 6.26% |
Value of a $10,000 Investment1, 3 as of June 30, 2006
California Tax Free Fund, Class A (NAV) | ![]() | $ | 14,833 | |||
California Tax Free Fund, Class A (POP) | ![]() | $ | 14,208 | |||
California Tax Free Fund, Class Y | ![]() | $ | 15,078 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 14,762 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704409.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704410.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. |
First American Funds Annual Report 2006 9
Table of Contents
California Tax Free fund continued
Expense Example
As a shareholder of the California Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06) to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 998.50 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 996.50 | $ | 5.69 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 999.80 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | $ | 2.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.15%, -0.35%, and -0.02% for Class A, Class C, and Class Y, respectively. |
10 First American Funds Annual Report 2006
Table of Contents
Colorado Intermediate Tax Free fund
Investment Objective: current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Colorado Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.37%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate-maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality, intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer than its Lehman benchmark most of the fiscal period. In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate-maturity (five- to ten-year range) weighting. During the fiscal period, the fund was able to increase its allocation to higher-yielding A-rated and BBB-rated securities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 70.4 | % | ||
General Obligations3 | 20.6 | |||
Certificates of Participation3 | 7.5 | |||
Short-Term Investment | 1.6 | |||
Other Assets and Liabilities, Net | (0.1 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 47.4 | % | ||
AA | 16.6 | |||
A | 11.9 | |||
BBB | 17.3 | |||
BB | 0.8 | |||
Non-Rated | 6.0 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 9.0% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 11
Table of Contents
Colorado Intermediate Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 10 years | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (1.91)% | (2.32)% | 3.45% | 4.34% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.37% | (0.08)% | 3.92% | 4.58% | ||||||||||||
Class Y | 0.49% | 0.07% | 4.07% | 4.64% | ||||||||||||
Lehman 7-Year Municipal Bond Index2 | 0.56% | 0.15% | 4.45% | 5.26% |
Value of $10,000 Investment1 as of June 30, 2006
Colorado Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 15,397 | |||
Colorado Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 15,051 | |||
Colorado Intermediate Tax Free Fund, Class Y | ![]() | $ | 15,489 | |||
Lehman 7-Year Municipal Bond Index2 | ![]() | $ | 16,395 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704411.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704412.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
12 First American Funds Annual Report 2006
Table of Contents
Colorado Intermediate Tax Free fund continued
Expense Example
As a shareholder of the Colorado Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.50 | $ | 4.21 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 999.20 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.25% and -0.08% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 13
Table of Contents
Colorado Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Colorado Tax Free Fund (the “fund”), Class Y shares, returned 0.96% for the fiscal period ended June 30, 2006 (Class A shares returned 0.77%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Colorado Municipal Debt Funds Category, was 0.78%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.
The fund’s exposure to higher-quality, intermediate-maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Colorado was down by 19% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 71.3 | % | ||
General Obligations3 | 14.3 | |||
Certificates of Participation3 | 14.5 | |||
Short-Term Investments | 2.7 | |||
Other Assets and Liabilities, Net | (2.8 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 52.6 | % | ||
AA | 9.8 | |||
A | 15.3 | |||
BBB | 19.5 | |||
Non-Rated | 2.8 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 11.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
14 First American Funds Annual Report 2006
Table of Contents
Colorado Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since | |||||||||||||||
Month | Inception | |||||||||||||||
Period* | 1 year | 5 years | 2/1/2000 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (3.50)% | (3.56)% | 4.15% | 5.73% | ||||||||||||
Class C | (0.48)% | (0.60)% | 4.64% | 6.03% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.77% | 0.74% | 5.06% | 6.45% | ||||||||||||
Class C | 0.47% | 0.34% | 4.64% | 6.03% | ||||||||||||
Class Y | 0.96% | 1.08% | 5.31% | 6.73% | ||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 6.26% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Colorado Tax Free Fund, Class A (NAV) | ![]() | $ | 14,926 | |||
Colorado Tax Free Fund, Class A (POP) | ![]() | $ | 14,297 | |||
Colorado Tax Free Fund, Class Y | ![]() | $ | 15,181 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 14,762 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704413.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704414.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. |
First American Funds Annual Report 2006 15
Table of Contents
Colorado Tax Free fund continued
Expense Example
As a shareholder of the Colorado Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 999.40 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 997.40 | $ | 5.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,000.70 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | $ | 2.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.06%, -0.26%, and 0.07% for Class A, Class C, and Class Y, respectively. |
16 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free fund
Investment Objective: current income that is exempt from federal income tax to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.67% for the fiscal period ended June 30, 2006 (Class A shares returned 0.56%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Intermediate Municipal Debt Funds Category Average, was 0.46%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate maturity (five- to ten-year range) weighting. During the fiscal period the fund moderately increased its allocation to higher-yielding A-rated and non-rated securities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 62.3 | % | ||
General Obligations3 | 33.1 | |||
Certificates of Participation3 | 3.3 | |||
Short-Term Investment | 0.3 | |||
Other Assets and Liabilities, Net | 1.0 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 55.3 | % | ||
AA | 11.9 | |||
A | 14.1 | |||
BBB | 10.8 | |||
BB | 0.9 | |||
Non-Rated | 7.0 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 23.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 17
Table of Contents
Intermediate Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 10 years | |||||||||||||
Average annual return with sales charge (POP) | �� | |||||||||||||||
Class A | (1.69 | )% | (1.85 | )% | 3.55% | 4.37% | ||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.56 | % | 0.37 | % | 4.02% | 4.60% | ||||||||||
Class Y | 0.67 | % | 0.42 | % | 4.17% | 4.67% | ||||||||||
Lehman 7-Year Municipal Bond Index2 | 0.56 | % | 0.15 | % | 4.45% | 5.26% |
Value of $10,000 Investment1 as of June 30, 2006
Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 15,438 | |||
Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 15,085 | |||
Intermediate Tax Free Fund, Class Y | ![]() | $ | 15,542 | |||
Lehman 7-Year Municipal Bond Index2 | ![]() | $ | 16,395 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704415.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704416.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
18 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free fund continued
Expense Example
As a shareholder of the Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 999.70 | $ | 4.21 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,000.40 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.03% and 0.04% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 19
Table of Contents
Minnesota Intermediate Tax Free fund
Investment Objective: current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Minnesota Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.85% for the fiscal period ended June 30, 2006 (Class A shares returned 0.74%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
While the duration of the fund was fairly neutral relative to its Lehman benchmark most of the fiscal period, it was lengthened slightly near the end of the reporting period in anticipation of an approaching end to Fed tightening and, consequently, of a reduced risk of further rate increases. Expecting, for the same reasons, a steepening of the yield curve, we began to deemphasize the weighting in shorter and longer maturities in favor of increased intermediate-maturity weighting. During the fiscal period, the fund was able to increase its allocation to higher-yielding A-rated and lower-rated securities.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 64.1 | % | ||
General Obligations3 | 33.6 | |||
Certificate of Participation | 0.5 | |||
Short-Term Investment | 0.7 | |||
Other Assets and Liabilities, Net | 1.1 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 41.4 | % | ||
AA | 18.5 | |||
A | 17.4 | |||
BBB | 10.4 | |||
BB | 2.6 | |||
Non-Rated | 9.7 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 6.0% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
20 First American Funds Annual Report 2006
Table of Contents
Minnesota Intermediate Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 10 years | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (1.50)% | (1.77)% | 3.39% | 4.26% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.74% | 0.52% | 3.86% | 4.50% | ||||||||||||
Class Y | 0.85% | 0.68% | 4.00% | 4.54% | ||||||||||||
Lehman 7-Year Municipal Bond Index2 | 0.56% | 0.15% | 4.45% | 5.26% |
Value of $10,000 Investment1 as of June 30, 2006
Minnesota Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 15,288 | |||
Minnesota Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 14,941 | |||
Minnesota Intermediate Tax Free Fund, Class Y | ![]() | $ | 15,342 | |||
Lehman 7-Year Municipal Bond Index2 | ![]() | $ | 16,395 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704417.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704418.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
First American Funds Annual Report 2006 21
Table of Contents
Minnesota Intermediate Tax Free fund continued
Expense Example
As a shareholder of the Minnesota Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,001.60 | $ | 4.22 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,002.40 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 0.16% and 0.24% for Class A and Class Y, respectively. |
22 First American Funds Annual Report 2006
Table of Contents
Minnesota Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Minnesota Tax Free Fund (the “fund”), Class Y shares, returned 1.47% for the fiscal period ended June 30, 2006 (Class A shares returned 1.28%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Minnesota Municipal Debt Funds Objective Average, was 0.76%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s holdings were arrayed fairly evenly across the range of maturities, but with some overweighting in the 22-year and longer range. This overweight helped performance, as the yield curve flattened over the period and, as a result, longer-maturity bonds outperformed shorter maturities. In terms of quality, the fund was overweighted in A-rated, BBB-rated, and non-rated issues. Continued strong demand for the additional yield provided by these securities caused them to outperform higher-quality bonds. In addition, overweights in healthcare, housing, and education sectors added value, since many positions in these sectors are considered high-yield, thereby benefiting from strong demand.
Long-term zero coupon bonds in the portfolio underperformed during this fiscal period because of rising interest rates and a lack of demand. These issues are among the most price-volatile in the portfolio due to their relatively longer duration, or interest rate risk; hence their prices, compared with coupon-bearing bonds, tend to fall faster when interest rates rise and rise faster when interest rates fall. As the yield curve flattened, the fund’s positions in four- to eight-year maturities underperformed longer-term maturities. Positions in general obligation bonds, which tend to be higher-quality issues, generally underperformed lower-quality issues during the period.
What strategic moves were made by the fund and why?
Duration was shortened to less than the benchmark during the spring, reducing risk as interest rates rose. It was extended beyond the benchmark near the end of the period as interest rates moved to their highs for the year to date. AA-rated positions were reduced and higher-yielding A-rated positions were increased.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 86.3 | % | ||
General Obligations3 | 10.1 | |||
Short-Term Investments | 3.4 | |||
Other Assets and Liabilities, Net | 0.2 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 36.9 | % | ||
AA | 10.1 | |||
A | 26.9 | |||
BBB | 8.1 | |||
BB | 2.2 | |||
Non-Rated | 15.8 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 23
Table of Contents
Minnesota Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||||||
Month | ||||||||||||||||||||||||
Period* | 1 year | 5 years | 10 years | 8/1/1997 | 2/1/1999 | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | (3.05)% | (3.04)% | 3.85% | 4.84% | — | — | ||||||||||||||||||
Class C | 0.00% | (0.13)% | 4.32% | — | — | 3.88% | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | 1.28% | 1.24% | 4.75% | 5.29% | — | — | ||||||||||||||||||
Class C | 0.98% | 0.84% | 4.32% | — | — | 3.88% | ||||||||||||||||||
Class Y | 1.47% | 1.50% | 5.01% | — | 5.04% | — | ||||||||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 5.79% | 5.25% | 4.87% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Class A | Class Y | |||||||||
Minnesota Tax Free Fund, Class A (NAV) | ![]() | $ | 16,316 | |||||||
Minnesota Tax Free Fund, Class A (POP) | ![]() | $ | 15,627 | |||||||
Minnesota Tax Free Fund, Class Y | ![]() | $ | 15,503 | |||||||
Lehman Municipal Bond Index2 | ![]() | $ | 17,164 | $ | 15,782 | |||||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704419.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704420.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 9/30/1996 to 6/30/2006) and Class Y shares (from 8/1/1997 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. | |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. | |
On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to July 31, 1998, represents that of the Piper Minnesota Tax-Exempt Fund. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. |
24 First American Funds Annual Report 2006
Table of Contents
Minnesota Tax Free fund continued
Expense Example
As a shareholder of the Minnesota Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,001.90 | $ | 4.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 999.90 | $ | 6.69 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,003.20 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 0.19%, -0.01%, and 0.32% for Class A, Class C, and Class Y, respectively. |
First American Funds Annual Report 2006 25
Table of Contents
Missouri Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Missouri state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Missouri Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.38%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Missouri Municipal Debt Funds Category Average, was 0.55%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
Due to the flattening of the municipal yield curve, the fund’s holdings with very short and very long maturities generally performed well this fiscal period, while high-quality, intermediate-maturity bonds generally showed the weakest performance. A more pronounced barbell portfolio structure – with reduced weighting in intermediate-term bonds – would have produced better results, especially if more emphasis had been placed on very short bonds and a higher allocation made at the long end of the curve (22 years or more). Despite a shorter duration, the greater rise in yields for intermediate maturities caused them to underperform longer maturity bonds.
Lower-rated, higher-yielding bonds enjoyed strong performance. Generally, allocations to lower-rated securities benefited the fund, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.
Although the fund holds a variety of lower-rated securities, greater exposure to high-yield bonds, especially those with longer maturities, would also have helped over the past period due to the continued narrowing of yield spreads, which made lower-rated bonds more attractive.
What strategic moves were made by the fund and why?
Throughout the fiscal period, the duration of the fund was generally neutral relative to the Lehman benchmark. In view of the flattening yield curve, we increased the weighting of longer maturity bonds during the period. The weighting in higher-yielding, lower-quality bonds was also increased.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 77.1 | % | ||
General Obligations3 | 19.5 | |||
Certificates of Participation3 | 1.8 | |||
Short-Term Investment | 0.5 | |||
Other Assets and Liabilities, Net | 1.1 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 59.5 | % | ||
AA | 22.6 | |||
A | 7.1 | |||
BBB | 6.5 | |||
BB | 1.1 | |||
Non-Rated | 3.2 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 15.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
26 First American Funds Annual Report 2006
Table of Contents
Missouri Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||
Month | ||||||||||||||||||||
Period* | 1 year | 5 years | 10 years | 9/24/2001 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | (3.89)% | (4.31)% | 3.24% | 4.31% | — | |||||||||||||||
Class C | (0.96)% | (1.47)% | — | — | 3.40% | |||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | 0.38% | (0.03)% | 4.15% | 4.77% | — | |||||||||||||||
Class C | 0.00% | (0.51)% | — | — | 3.40% | |||||||||||||||
Class Y | 0.49% | 0.13% | 4.40% | 5.04% | — | |||||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 5.79% | 4.73% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Missouri Tax Free Fund, Class A (NAV) | ![]() | $ | 15,234 | |||
Missouri Tax Free Fund, Class A (POP) | ![]() | $ | 14,585 | |||
Missouri Tax Free Fund, Class Y | ![]() | $ | 15,625 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 16,667 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704421.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704422.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. | |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. | |
On September 24, 2001, the Missouri Tax Free Fund became the successor by merger to the Firstar Missouri Tax-Exempt Bond Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Missouri Tax-Exempt Bond Fund. The Firstar Missouri Tax-Exempt Bond Fund was organized on December 11, 2000. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses. |
First American Funds Annual Report 2006 27
Table of Contents
Missouri Tax Free fund continued
Expense Example
As a shareholder of the Missouri Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.30 | $ | 4.70 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 994.60 | $ | 6.68 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 997.80 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.27%, -0.54%, and -0.22% for Class A, Class C, and Class Y, respectively. |
28 First American Funds Annual Report 2006
Table of Contents
Nebraska Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Nebraska state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Nebraska Tax Free Fund (the “fund”), Class Y shares, returned 0.85% for the fiscal period ended June 30, 2006 (Class A shares returned 0.65%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Category Average, was 0.84%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.
The fund’s exposure to higher-quality, intermediate-maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Nebraska was down by 17% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 75.3 | % | ||
General Obligations3 | 19.7 | |||
Certificates of Participation3 | 3.3 | |||
Short-Term Investments | 4.3 | |||
Other Assets and Liabilities, Net | (2.6 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 37.7 | % | ||
AA | 31.6 | |||
A | 14.9 | |||
BBB | 3.8 | |||
Non-Rated | 12.0 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 0.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 29
Table of Contents
Nebraska Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 2/28/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (3.63)% | (3.89)% | 3.82% | 3.86% | ||||||||||||
Class C | (0.51)% | (0.85)% | 4.32% | 4.20% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.65% | 0.42% | 4.72% | 4.70% | ||||||||||||
Class C | 0.46% | 0.12% | 4.32% | 4.20% | ||||||||||||
Class Y | 0.85% | 0.67% | 4.98% | 4.96% | ||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 5.03% |
Value of a $10,000 Investment1, 3 as of June 30, 2006
Nebraska Tax Free Fund, Class A (NAV) | ![]() | $ | 12,776 | |||
Nebraska Tax Free Fund, Class A (POP) | ![]() | $ | 12,237 | |||
Nebraska Tax Free Fund, Class Y | ![]() | $ | 12,943 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 12,990 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704423.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704424.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/28/2001 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. | |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. |
30 First American Funds Annual Report 2006
Table of Contents
Nebraska Tax Free fund continued
Expense Example
As a shareholder of the Nebraska Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 998.70 | $ | 3.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 997.70 | $ | 5.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 999.90 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | $ | 2.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.13%, -0.23%, and -0.01% for Class A, Class C, and Class Y, respectively. |
First American Funds Annual Report 2006 31
Table of Contents
Ohio Tax Free fund
Investment Objective: maximum current income that is exempt from both federal income tax and Ohio state income tax to the extent consistent with prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Ohio Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.40%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Ohio Municipal Debt Funds Category Average, was 0.34%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
Bonds with maturities longer that 15 years performed better than those with shorter maturities due to a flattening of the yield curve (short-term interest rates rising faster than long-term interest rates). The fund also benefited by continuing to increase its position in lower-quality, high-yield securities. As demand for these securities continued to outpace supply, they enjoyed strong performance.
The fund had an overweight in high-quality, intermediate-maturity bonds, which generally showed the weakest performance during this period due to the flattening of the municipal yield curve. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer its Lehman benchmark for the period. As opportunities arose, lower-quality, higher-yielding securities were added to the portfolio. Most of these purchases were in issues with maturities of 20 years or longer, which benefited the most from the flattening yield curve and a general narrowing in yield spreads vs. higher-quality municipal bonds.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 53.4 | % | ||
General Obligations3 | 42.3 | |||
Certificate of Participation3 | 3.2 | |||
Short-Term Investments | 1.4 | |||
Other Assets and Liabilities, Net | (0.3 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 40.4 | % | ||
AA | 34.6 | |||
A | 18.8 | |||
BBB | 5.2 | |||
Non-Rated | 1.0 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 6.2% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
32 First American Funds Annual Report 2006
Table of Contents
Ohio Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||
Month | ||||||||||||
Period* | 1 year | 4/30/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (3.85)% | (4.43)% | 3.25% | |||||||||
Class C | (1.06)% | (1.62)% | 3.64% | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 0.40% | (0.18)% | 4.32% | |||||||||
Class C | (0.08)% | (0.66)% | 3.64% | |||||||||
Class Y | 0.49% | (0.02)% | 4.57% | |||||||||
Lehman Municipal Bond Index2 | 1.01% | 4.81% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Ohio Tax Free Fund, Class A (NAV) | ![]() | $ | 11,927 | |||
Ohio Tax Free Fund, Class A (POP) | ![]() | $ | 11,424 | |||
Ohio Tax Free Fund, Class Y | ![]() | $ | 12,048 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 12,164 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704425.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704426.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y Shares (from 4/30/2002 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. |
First American Funds Annual Report 2006 33
Table of Contents
Ohio Tax Free fund continued
Expense Example
As a shareholder of the Ohio Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.10 | $ | 3.71 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 994.20 | $ | 5.69 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 997.40 | $ | 2.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.32 | $ | 2.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.29%, -0.58%, and -0.26% for Class A, Class C, and Class Y, respectively. |
34 First American Funds Annual Report 2006
Table of Contents
Oregon Intermediate Tax Free fund
Investment Objective: current income that is exempt from both federal income tax and Oregon state income tax to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Oregon Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.28% for the fiscal period ended June 30, 2006 (Class A shares returned 0.16%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
With its holdings arrayed fairly evenly across the range of maturities, the fund benefited from the purchases of securities with maturities longer than 15 years, whose performance was strengthened by the flattening municipal yield curve. In addition, the fund benefited from the initial price appreciation of securities that were refunded by issuers looking to reduce their interest costs. (Refunding, made attractive by the flattening yield curve, is the refinancing of older, higher-coupon bonds by issuing new, lower-coupon bonds.)
Higher-quality, intermediate-maturity bonds generally posted the weakest performance this fiscal period due to the flattening of the municipal yield curve. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.
What strategic moves were made by the fund and why?
The duration of the fund was fairly neutral relative to its Lehman benchmark most of the period. In view of the flattening yield curve, the securities we purchased during this period had somewhat longer maturities than those normally purchased for an intermediate fund, which helped the fund’s performance. While Oregon has very few issuers that would be considered high-yield, and therefore few opportunities to purchase such issues, we were able to add some of these names during the period and as a result the fund benefited from the higher income.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
General Obligations3 | 58.1 | % | ||
Revenue Bonds3 | 34.6 | |||
Certificates of Participation3 | 6.2 | |||
Short-Term Investment | 0.3 | |||
Other Assets and Liabilities, Net | 0.8 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 55.1 | % | ||
AA | 32.9 | |||
A | 4.1 | |||
BBB | 4.9 | |||
Non-Rated | 3.0 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 20.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 35
Table of Contents
Oregon Intermediate Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||
Month | ||||||||||||||||||||
Period* | 1 year | 5 years | 10 years | 2/1/1999 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | (2.07)% | (2.63)% | 3.17% | — | 3.29% | |||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | 0.16% | (0.34)% | 3.63% | — | 3.62% | |||||||||||||||
Class Y | 0.28% | (0.19)% | 3.76% | 4.44% | — | |||||||||||||||
Lehman 7-Year Municipal Bond Index2 | 0.56% | 0.15% | 4.45% | 5.26% | 4.43% |
Value of $10,000 Investment1 as of June 30, 2006
Class A | Class Y | |||||||||
Oregon Intermediate Tax Free Fund, Class A (NAV) | ![]() | $ | 13,012 | |||||||
Oregon Intermediate Tax Free Fund, Class A (POP) | ![]() | $ | 12,714 | |||||||
Oregon Intermediate Tax Free Fund, Class Y | ![]() | $ | 15,231 | |||||||
Lehman 7-Year Municipal Bond Index2 | ![]() | $ | 13,791 | $ | 16,395 | |||||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704427.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704428.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/1/1999 to 6/30/2006) and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. | |
Performance prior to August 8, 1997, is that of Oregon Municipal Bond Trust Fund, a predecessor common trust fund. On August 8, 1997, substantially all of the assets of Oregon Municipal Bond Trust Fund were transferred into Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines of the two funds were, in all material respects, identical. Oregon Municipal Bond Trust Fund was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions that might have adversely affected performance. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years. |
36 First American Funds Annual Report 2006
Table of Contents
Oregon Intermediate Tax Free fund continued
Expense Example
As a shareholder of the Oregon Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.20 | $ | 4.21 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 996.90 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.28% and -0.31% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 37
Table of Contents
Short Tax Free fund
Investment Objective: to provide investors with current income that is exempt from federal income tax, to the extent consistent with the preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Short Tax Free Fund (the “fund”), Class Y shares, returned 1.13% for the fiscal period ended June 30, 2006 (Class A shares returned 1.02%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 3-Year Municipal Bond Index*, returned 0.74%. Performance for the fund’s peer group, the Lipper Short Municipal Debt Funds Category Average, was 1.54%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
Maintaining the duration in a range of 60% to 70% of its benchmark for the fiscal period caused the fund to significantly outperform the benchmark. The fund held anywhere from 20% to 30% of its assets in variable-rate-demand securities, which increased the income of the portfolio over the fiscal period as the Fed continued its tightening mode. (Variable-rate-demand obligations are short-term securities that are priced at par (i.e., their nominal value) and reset daily/weekly/monthly to reflect current interest-rate levels.) Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.
The fund generally held securities with maturities out to five years, with a higher representation in bonds with one- and two-year maturities. The fund’s exposure to higher-quality, three- to five-year maturity bonds, which proved to be weaker performers this fiscal period, had a negative effect on performance, as did the fund’s limited exposure to nonrated and noninvestment-grade bonds. The fund’s investment in prerefunded bonds also had a negative impact.
What strategic moves were made by the fund and why?
To reduce risk as interest rates rose, the duration of the fund was significantly shorter than its benchmark for the fiscal period. The fund continued its overweight in variable-rate-demand securities to capture the increase in short-term rates and to maintain liquidity at a time when the fund was challenged by significant outflows. We started selectively adding higher-yielding non-rated and non-investment-grade securities to the fund when available.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 81.8 | % | ||
General Obligations3 | 18.1 | |||
Short-Term Investment | 1.0 | |||
Other Assets and Liabilities, Net | (0.9 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 38.4 | % | ||
AA | 20.2 | |||
A | 21.5 | |||
BBB | 15.3 | |||
BB | 0.3 | |||
Non-Rated | 4.3 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 7.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
38 First American Funds Annual Report 2006
Table of Contents
Short Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||
Month | ||||||||||||
Period* | 1 year | 10/25/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (1.30)% | (1.15)% | 1.30% | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 1.02% | 1.16% | 1.93% | |||||||||
Class Y | 1.13% | 1.32% | 2.07% | |||||||||
Lehman 3-Year Municipal Bond Index2 | 0.74% | 0.89% | 4.50% |
Value of $10,000 Investment1 as of June 30, 2006
Short Tax Free Fund, Class A (NAV) | ![]() | $ | 10,728 | |||
Short Tax Free Fund, Class A (POP) | ![]() | $ | 10,486 | |||
Short Tax Free Fund, Class Y | ![]() | $ | 10,784 | |||
Lehman 3-Year Municipal Bond Index2 | ![]() | $ | 10,841 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704429.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704430.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/25/2002 to 6/30/2006) as compared to the Lehman 3-Year Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between two and four years. |
First American Funds Annual Report 2006 39
Table of Contents
Short Tax Free fund continued
Expense Example
As a shareholder of the Short Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,007.70 | $ | 3.73 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,008.50 | $ | 2.99 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 0.77% and 0.85% for Class A and Class Y, respectively. |
40 First American Funds Annual Report 2006
Table of Contents
Tax Free fund
Investment Objective: maximum current income that is exempt from federal income tax to the extent consistent with the prudent investment risk
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Tax Free Fund (the “fund”), Class Y shares, returned 1.57% for the fiscal period ended June 30, 2006 (Class A shares returned 1.37%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper General Municipal Debt Funds Objective Average, was 0.86%.
What were the general municipal market conditions during the fiscal period?
Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.
Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.
How did market conditions and investment strategies affect the fund’s performance?
The fund’s holdings were generally arrayed fairly evenly across the range of maturities, but with some overweighting in the 22-year and longer range. This overweight helped performance, as the yield curve flattened over the period and, as a result, longer-maturity bonds outperformed shorter maturities. In terms of quality, the fund was overweighted in A-rated, BBB-rated, and non-rated issues. Continued strong demand for the additional yield provided by these securities caused them to outperform higher-quality bonds. In addition, an overweight in the healthcare and education sectors added value, since many positions in these sectors are considered high-yield, thereby benefiting from strong demand. Overweighting in Texas, Illinois, Minnesota, Washington, and Wisconsin also added value as these states outperformed the national index. Indiana, which underperformed the national index, was underweighted in the fund.
Long-term zero coupon bonds in the portfolio underperformed during this fiscal period because of rising interest rates and a lack of demand. These issues are among the most price-volatile in the portfolio due to their relatively greater duration, or interest rate risk; hence their prices, compared with coupon-bearing bonds, tend to fall faster when interest rates rise and rise faster when interest rates fall. As the yield curve flattened, the fund’s positions in four- to eight-year maturities underperformed longer-term maturities. Positions in general obligation bonds, which tend to be higher-quality issues, generally underperformed lower-quality issues during the period. The fund’s positions in electric and sewer utility bonds detracted from performance as our holdings in these sectors tended to be higher-quality, which generally underperformed lower-quality issues over the period. The fund’s underweight in California and Florida also hurt performance, as these states outperformed the benchmark.
What strategic moves were made by the fund and why?
The fund’s duration was shortened to less than the benchmark during the spring, reducing risk as interest rates rose. It was extended to near the benchmark toward the end of the period as interest rates moved to their highs for the period to date. Our AAA-rated positions were reduced and higher-yielding A-rated and non-rated positions were increased. Additionally, select BBB-rated issues were sold at relatively higher prices than purchase levels.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Revenue Bonds3 | 73.9 | % | ||
General Obligations3 | 23.7 | |||
Certificates of Participation3 | 0.8 | |||
Short-Term Investment | 1.3 | |||
Other Assets and Liabilities, Net | 0.3 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 33.3 | % | ||
AA | 10.8 | |||
A | 21.0 | |||
BBB | 18.7 | |||
BB | 1.0 | |||
Non-Rated | 15.2 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
3 | These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 21.9% of the fund’s net assets were pre-refunded and escrowed to maturity issues. |
First American Funds Annual Report 2006 41
Table of Contents
Tax Free fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||
Month | ||||||||||||||||||||
Period* | 1 year | 5 years | 11/14/1996 | 9/24/2001 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | (2.92)% | (2.91)% | 4.17% | 4.85% | — | |||||||||||||||
Class C | 0.08% | 0.04% | — | — | 4.43% | |||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | 1.37% | 1.43% | 5.08% | 5.32% | — | |||||||||||||||
Class C | 1.06% | 1.01% | — | — | 4.43% | |||||||||||||||
Class Y | 1.57% | 1.69% | 5.36% | 5.55% | — | |||||||||||||||
Lehman Municipal Bond Index2 | 1.01% | 0.89% | 5.05% | 5.65% | 4.73% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Tax Free Fund, Class A (NAV) | ![]() | $ | 16,354 | |||
Tax Free Fund, Class A (POP) | ![]() | $ | 15,662 | |||
Tax Free Fund, Class Y | ![]() | $ | 16,695 | |||
Lehman Municipal Bond Index2 | ![]() | $ | 16,667 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704431.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704432.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Municipal Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. | |
On September 24, 2001, the First American Tax Free Fund merged with the Firstar National Municipal Bond Fund. Performance history prior to September 24, 2001, represents that of the Firstar National Municipal Bond Fund. |
2 | An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more. |
3 | Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses. |
42 First American Funds Annual Report 2006
Table of Contents
Tax Free fund continued
Expense Example
As a shareholder of the Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,003.90 | $ | 4.72 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,001.90 | $ | 6.70 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,005.10 | $ | 3.48 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 0.39%, 0.19%, and 0.51% for Class A, Class C, and Class Y, respectively. |
First American Funds Annual Report 2006 43
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, including the schedules of investments of the Arizona Tax Free, California Intermediate Tax Free, California Tax Free, Colorado Intermediate Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free, Oregon Intermediate Tax Free, Short Tax Free, and Tax Free Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2006, the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designating audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of June 30, 2006 and confirmation of the securities held, 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 audited by us as referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at June 30, 2006, the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
![-s- Ernst & Young LLP](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044ernstyo.gif)
Minneapolis, Minnesota
August 11, 2006
44 First American Funds Annual Report 2006
Table of Contents
Schedule of Investments June 30, 2006, all dollars are rounded to thousands (000)
Arizona Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 97.7% | |||||||||
Revenue Bonds – 76.4% | |||||||||
Continuing Care Retirement Communities – 7.0% | |||||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101 | |||||||||
7.500%, 11/15/2023 | $ | 200 | $ | 223 | |||||
Maricopa County Industrial Development Authority, Senior Living Health Care Revenue, Immanuel Care, Series A, Callable 02/20/2016 @ 100 (GNMA) | |||||||||
4.850%, 08/20/2026 | 750 | 740 | |||||||
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100 | |||||||||
5.400%, 10/01/2027 (a) | 270 | 267 | |||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100 | |||||||||
5.000%, 09/01/2025 (a) | 400 | 398 | |||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | |||||||||
5.375%, 12/01/2013 | 200 | 198 | |||||||
1,826 | |||||||||
Education – 7.2% | |||||||||
Gilbert Industrial Development Authority, Southwest Student Services, Pre-refunded 02/01/2009 @ 102 | |||||||||
5.850%, 02/01/2019 (b) | 1,000 | 1,063 | |||||||
Glendale Industrial Development Authority, Midwestern University | |||||||||
5.250%, 05/15/2014 | 140 | 146 | |||||||
Glendale Industrial Development Authority, Midwestern University, Series A, Callable 05/15/2011 @ 101 | |||||||||
5.750%, 05/15/2021 | 250 | 264 | |||||||
Pima County, Industrial Development Authority, Education Revenue, Paradise Education Center Project, Callable 06/01/2016 @ 100 | |||||||||
5.875%, 06/01/2022 | 250 | 248 | |||||||
University of Arizona Board of Regents, Series A, Pre-refunded 12/01/2009 @ 100 (FGIC) | |||||||||
5.800%, 06/01/2024 (b) | 150 | 159 | |||||||
1,880 | |||||||||
Healthcare – 20.5% | |||||||||
Arizona Health Facilities Authority, Blood Systems Inc., Callable 04/01/2014 @ 100 | |||||||||
4.750%, 04/01/2025 | 300 | 287 | |||||||
Arizona Health Facilities Authority, John C. Lincoln Health Network, Callable 12/01/2012 @ 101 | |||||||||
5.750%, 12/01/2032 | 150 | 155 | |||||||
Glendale Industrial Development Authority, Callable 12/01/2015 @ 100 | |||||||||
4.625%, 12/01/2027 | 200 | 184 | |||||||
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100 | |||||||||
5.000%, 06/01/2038 | 375 | 363 | |||||||
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A, Callable 02/15/2016 @ 100 | |||||||||
5.250%, 02/15/2030 | 400 | 409 | |||||||
Johnson City, Tennessee Health & Elderly Facilities Authority, Callable 07/01/2012 @ 103 | |||||||||
7.500%, 07/01/2025 | 100 | 115 | |||||||
Maricopa County Hospital, Sun Health Corporation, Callable 04/01/2015 @ 100 | |||||||||
5.000%, 04/01/2025 | 200 | 198 | |||||||
Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A, Callable 07/01/2014 @ 100 | |||||||||
5.375%, 07/01/2023 | 500 | 512 | |||||||
Maricopa County Industrial Development Authority, Mayo Clinic, Callable 05/15/2016 @ 100 | |||||||||
5.000%, 11/15/2031 | 500 | 508 | |||||||
Scottsdale Industrial Development Authority, Scottsdale Healthcare, Pre-refunded 12/01/2011 @ 101 | |||||||||
5.700%, 12/01/2021 (b) | 1,000 | 1,087 | |||||||
University Medical Center Corporation, Hospital Revenue, Callable 07/01/2014 @ 100 | |||||||||
5.000%, 07/01/2024 | 500 | 495 | |||||||
University Medical Center Corporation, Hospital Revenue, Callable 07/01/2015 @ 100 | |||||||||
5.000%, 07/01/2016 | 250 | 254 | |||||||
Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A, Callable 08/01/2013 @ 100 (RAAI) | |||||||||
5.250%, 08/01/2021 | 375 | 387 | |||||||
6.000%, 08/01/2033 | 100 | 105 | |||||||
Yuma Industrial Development Authority, Yuma Regional Medical Center, Callable 08/01/2007 @ 102, Escrowed to Maturity (MBIA) | |||||||||
5.500%, 08/01/2017 (c) | 250 | 259 | |||||||
5,318 | |||||||||
Housing – 3.9% | |||||||||
Douglas Community Housing Corporation, Rancho La Perilla, Series A, Callable 01/20/2010 @ 102 (GNMA) | |||||||||
5.900%, 07/20/2020 | 500 | 521 | |||||||
6.000%, 07/20/2025 | 475 | 492 | |||||||
Phoenix Industrial Development Authority, The Phoenix Authority, Series 1A, Callable 06/01/2010 @ 102 (FHLMC) (FNMA) (GNMA) | |||||||||
5.875%, 06/01/2016 | 5 | 5 | |||||||
1,018 | |||||||||
Lease Revenue – 3.2% | |||||||||
Nogales Municipal Development Authority, Callable 06/01/2016 @ 100 (MBIA) (MLO) | |||||||||
4.500%, 06/01/2031 | 250 | 239 | |||||||
Peoria Municipal Development Authority (MLO) | |||||||||
5.000%, 07/01/2015 | 310 | 327 | |||||||
Pinal County Industrial Development Authority Correctional Facilities Contract, Florence West Prison Project, Series A (ACA) (MLO) | |||||||||
5.000%, 10/01/2016 | 250 | 255 | |||||||
821 | |||||||||
Miscellaneous – 5.2% | |||||||||
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA) | |||||||||
5.500%, 06/01/2036 | 250 | 256 |
First American Funds Annual Report 2006 45
Table of Contents
Schedule of Investments continued
Arizona Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Arizona Student Loan Acquisition Authority, Series A, Callable 11/01/2009 @ 102 (AMT) | |||||||||
5.900%, 05/01/2024 | $ | 100 | $ | 105 | |||||
Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/2008 @ 102 (MBIA) | |||||||||
5.625%, 08/01/2020 | 200 | 210 | |||||||
Greater Arizona Infrastructure Development Authority, Series B, Callable 08/01/2014 @ 100 | |||||||||
5.250%, 08/01/2026 | 750 | 773 | |||||||
1,344 | |||||||||
Tax Revenue – 11.8% | |||||||||
Greater Arizona Development Authority Infrastructure Revenue, Pinal County Road Project, Series 1, Callable 08/01/2016 @ 100 (MBIA) | |||||||||
4.500%, 08/01/2025 | 750 | 726 | |||||||
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100 | |||||||||
5.625%, 03/01/2036 | 135 | 135 | |||||||
Phoenix Civic Improvements, Excise Tax Revenue, Callable 07/01/2009 @ 101 | |||||||||
5.750%, 07/01/2016 | 300 | 317 | |||||||
Scottsdale Municipal Property Corporation, Excise Tax Revenue, Convertible CABs, Series C, Callable 07/01/2017 @ 100 (AMBAC) | |||||||||
0.000% through 06/30/2013, | |||||||||
thereafter 4.550%, 07/01/2021 | 500 | 342 | |||||||
Scottsdale Municipal Property Corporation, Excise Tax Revenue, Series A, Callable 07/14/2014 @ 100 | |||||||||
4.500%, 07/01/2025 | 100 | 97 | |||||||
Scottsdale Preservation Authority, Excise Tax Revenue (FGIC) | |||||||||
5.000%, 07/01/2011 | 500 | 524 | |||||||
Tempe, Excise Tax Revenue, Series A, Callable 07/01/2009 @ 100 | |||||||||
5.625%, 07/01/2020 | 300 | 314 | |||||||
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100 | |||||||||
5.000%, 02/01/2026 | 270 | 271 | |||||||
Yuma Improvement District #68, Callable 01/01/2017 @ 101 | |||||||||
4.700%, 01/01/2021 | 365 | 355 | |||||||
3,081 | |||||||||
Transportation – 6.7% | |||||||||
Arizona State Transportation Highway Board, Series A | |||||||||
5.000%, 07/01/2009 | 400 | 412 | |||||||
Phoenix Civic Improvements, Series B, Callable 07/01/2012 @ 100 (AMT) (FGIC) | |||||||||
5.250%, 07/01/2021 | 250 | 257 | |||||||
5.250%, 07/01/2027 | 750 | 766 | |||||||
Tucson Street & Highway Improvements, Series 1994-E, Pre-refunded 07/01/2010 @ 100 (FGIC) | |||||||||
5.000%, 07/01/2018 (b) | 300 | 312 | |||||||
1,747 | |||||||||
Utilities – 10.9% | |||||||||
Chandler Water & Sewer Improvements, Pre-refunded 07/01/2010 @ 101 (FSA) | |||||||||
5.800%, 07/01/2017 (b) | 250 | 269 | |||||||
Cottonwood Water Revenue, Callable 07/01/2016 @ 100 (XLCA) | |||||||||
5.000%, 07/01/2017 | 250 | 262 | |||||||
Gilbert Water Municipal Property Wastewater System & Utility, Callable 04/01/2008 @ 100 | |||||||||
5.000%, 04/01/2017 | 375 | 375 | |||||||
Glendale Water & Sewer Revenue, Callable 01/01/2016 @ 100 (FGIC) | |||||||||
5.000%, 07/01/2019 | 1,000 | 1,045 | |||||||
Tucson Water, Series 1994-A (MBIA) | |||||||||
6.250%, 07/01/2016 | 170 | 196 | |||||||
Yavapai Industrial Development Authority, Waste Management Incorporated Project, Series A-1, Callable 03/01/2016 @ 101 (AMT) | |||||||||
3.650%, 03/01/2028 (d) | 400 | 385 | |||||||
Yavapai Industrial Development Authority, Waste Management Incorporated Project, Series A-2, Mandatory Put 03/01/2008 @ 100 (AMT) | |||||||||
4.450%, 03/01/2028 | 300 | 300 | |||||||
2,832 | |||||||||
Total Revenue Bonds | 19,867 | ||||||||
General Obligations – 16.0% | |||||||||
California State, Callable 02/01/2014 @ 100 | |||||||||
4.750%, 02/01/2024 | 100 | 100 | |||||||
Centerra Community Facilities Distributors, Callable 07/15/2015 @ 100 | |||||||||
5.500%, 07/15/2029 | 200 | 197 | |||||||
Chandler Public & Recreational Improvements, Callable 07/01/2010 @ 101 | |||||||||
5.800%, 07/01/2018 | 250 | 268 | |||||||
Greenlee County School District #18, Morenci | |||||||||
5.000%, 07/01/2012 | 165 | 168 | |||||||
Maricopa County School District #3, Tempe Elementary School Improvement Project, Series A, Callable 07/01/2016 @ 100 (MBIA) | |||||||||
4.750%, 07/01/2024 | 400 | 403 | |||||||
Peoria, Callable 04/01/2009 @ 100 (FGIC) | |||||||||
5.400%, 04/01/2015 | 100 | 103 | |||||||
5.000%, 04/01/2018 | 575 | 588 | |||||||
5.000%, 04/01/2019 | 125 | 128 | |||||||
Phoenix, Callable 07/01/2007 @ 102 | |||||||||
5.250%, 07/01/2020 | 250 | 258 | |||||||
Phoenix, Callable 07/01/2010 @ 100 | |||||||||
5.250%, 07/01/2019 | 350 | 365 | |||||||
5.375%, 07/01/2025 | 750 | 780 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 250 | 257 | |||||||
Scottsdale, Pre-refunded 07/01/2009 @ 100 | |||||||||
5.500%, 07/01/2022 (b) | 250 | 261 | |||||||
Tucson | |||||||||
5.500%, 07/01/2018 | 250 | 274 | |||||||
Total General Obligations | 4,150 | ||||||||
Certificates of Participation – 5.3% | |||||||||
Arizona Board of Regents, Northern Arizona University Projects, Callable 09/01/2016 @ 100 (AMBAC) | |||||||||
4.500%, 09/01/2030 | 500 | 480 |
The accompanying notes are an integral part of the financial statements.
46 First American Funds Annual Report 2006
Table of Contents
Arizona Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Northern Arizona University, Research Projects, Callable 09/01/2015 @ 100 (AMBAC) (MLO) | |||||||||
5.000%, 09/01/2023 | $ | 140 | $ | 144 | |||||
Pinal County (MLO) | |||||||||
5.000%, 12/01/2014 | 400 | 414 | |||||||
Tucson, Callable 07/01/2008 @ 100 (MBIA) (MLO) | |||||||||
5.500%, 07/01/2015 | 200 | 206 | |||||||
University of Arizona Parking & Student Housing Authority, Pre-refunded 06/01/2009 @ 100 (AMBAC) (MLO) | |||||||||
5.750%, 06/01/2019 (b) | 140 | 147 | |||||||
Total Certificates of Participation | 1,391 | ||||||||
Total Municipal Bonds (Cost $24,784) | 25,408 | ||||||||
Short-Term Investments – 1.4% | |||||||||
Money Market Funds – 1.3% | |||||||||
Federated Arizona Municipal Money Market Fund | 349,392 | 349 | |||||||
First American Tax Free Obligations Fund, Class Z (e) | 6,794 | 7 | |||||||
356 | |||||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
4.612%, 07/20/2006 (f) | $ | 25 | 25 | ||||||
Total Short-Term Investments (Cost $381) | 381 | ||||||||
Total Investments – 99.1% (Cost $25,165) | 25,789 | ||||||||
Other Assets and Liabilities, Net – 0.9% | 224 | ||||||||
Total Net Assets – 100.0% | $ | 26,013 | |||||||
(a) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $665 or 2.6% of total net assets. See note 2 in Notes to Financial Statements. |
(b) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(c) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call and price indicated. |
(d) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(e) | 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. |
(f) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
ACA – American Capital Access
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to AMT was $1,047 which represents 4.0% of total net assets. |
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FGIC – Financial Guaranty Insurance Corporation
FHLMC – Federal Home Loan Mortgage Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
XLCA – XL Capital Assurance Inc.
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Sold | Value | Month | Appreciation | ||||||||||||
U.S. Treasury 10 Year Note Futures | (10) | $ | (1,049 | ) | September 2006 | $ | 10 | |||||||||
First American Funds Annual Report 2006 47
Table of Contents
Schedule of Investments continued
California Intermediate Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 96.0% | |||||||||
Revenue Bonds – 68.9% | |||||||||
Continuing Care Retirement Communities – 4.7% | |||||||||
Association of Bay Area Governments Financial Authority, Odd Fellows Home of California (CMI) | |||||||||
4.950%, 08/15/2007 | $ | 500 | $ | 506 | |||||
California Health Facilities Financing Authority, Paradise Valley Estates (CMI) | |||||||||
4.125%, 01/01/2010 | 500 | 500 | |||||||
4.375%, 01/01/2012 | 540 | 543 | |||||||
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | |||||||||
5.000%, 11/15/2012 | 500 | 519 | |||||||
La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/2013 @ 101 (ACA) | |||||||||
5.600%, 02/15/2033 | 500 | 517 | |||||||
2,585 | |||||||||
Education – 11.2% | |||||||||
Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A | |||||||||
5.800%, 06/01/2008 | 200 | 206 | |||||||
California Educational Facilities Authority, Golden Gate University, Callable 10/01/2015 @ 100 | |||||||||
5.000%, 10/01/2020 | 505 | 509 | |||||||
California Educational Facilities Authority, Lutheran University, Series C, Callable 10/01/2014 @ 100 | |||||||||
4.750%, 10/01/2015 | 675 | 685 | |||||||
California Educational Facilities Authority, University of Redlands, Series A, Callable 10/01/2015 @ 100 | |||||||||
5.000%, 10/01/2020 | 500 | 507 | |||||||
California Educational Facilities Authority, University of the Pacific | |||||||||
5.000%, 11/01/2015 | 300 | 314 | |||||||
California Educational Facilities Authority, Woodbury University | |||||||||
4.400%, 01/01/2015 | 450 | 441 | |||||||
California State Higher Educational Facilities Authority, Fresno Pacific University, Series A | |||||||||
5.650%, 03/01/2007 | 380 | 384 | |||||||
5.750%, 03/01/2008 | 400 | 409 | |||||||
California State Higher Educational Facilities Authority, Occidental College Project, Pre-refunded 10/01/2007 @ 102 (MBIA) | |||||||||
5.300%, 10/01/2010 (a) | 500 | 519 | |||||||
California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Partially Escrowed to Maturity | |||||||||
6.000%, 06/01/2010 (b) | 495 | 524 | |||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Escrowed to Maturity | |||||||||
5.550%, 06/01/2009 (b) | 225 | 235 | |||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101 | |||||||||
5.700%, 06/01/2011 (a) | 250 | 269 | |||||||
5.750%, 06/01/2012 (a) | 260 | 280 | |||||||
California Statewide Communities Development Authority, Cathedral High School Project, Callable until 03/31/2033 @ 100 (LOC: Allied Irish Bank PLC) (VRDO) | |||||||||
3.850%, 04/01/2033 (c) | 500 | 500 | |||||||
California Statewide Communities Development Authority, Viewpoint Schools (ACA) | |||||||||
4.125%, 10/01/2014 | 405 | 390 | |||||||
6,172 | |||||||||
Healthcare – 15.3% | |||||||||
California Health Facilities Financing Authority, Casa Colina, Callable 04/01/2012 @ 100 | |||||||||
5.500%, 04/01/2013 | 300 | 311 | |||||||
California Health Facilities Financing Authority, Catholic Healthcare West, Series I, Mandatory Put 07/01/2014 @ 100 | |||||||||
4.950%, 07/01/2026 | 450 | 461 | |||||||
California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/2014 @ 100 (CMI) | |||||||||
4.750%, 11/01/2019 | 1,200 | 1,196 | |||||||
California Health Facilities Financing Authority, Valleycare Medical Center, Series A, Callable 05/01/2012 @ 100 (CMI) | |||||||||
4.625%, 05/01/2013 | 300 | 304 | |||||||
4.800%, 05/01/2014 | 715 | 727 | |||||||
California State Health Facilities Authority, Casa de las Campanas, Series A, Callable 08/01/2008 @ 100 (CMI) | |||||||||
5.375%, 08/01/2009 | 250 | 256 | |||||||
California Statewide Communities Development Authority, Daughters of Charity Health, Series G | |||||||||
5.250%, 07/01/2013 | 500 | 522 | |||||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A | |||||||||
7.250%, 11/15/2011 | 500 | 518 | |||||||
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100 | |||||||||
3.850%, 11/01/2029 | 1,000 | 971 | |||||||
California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/2007 @ 101 (AMBAC) | |||||||||
5.000%, 06/01/2012 | 150 | 153 | |||||||
Loma Linda University Medical Center, Hospital Revenue, Series A | |||||||||
5.000%, 12/01/2015 | 600 | 612 | |||||||
Marysville Hospital, Fremont Rideout Health Project, Series A, Callable 07/01/2008 @ 103 (AMBAC) | |||||||||
5.000%, 01/01/2010 | 500 | 516 | |||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de la Concepcion, Series A | |||||||||
5.500%, 11/15/2009 | 650 | 672 | |||||||
Rancho Mirage Joint Powers Finance Authority, Eisenhower Medical Center, Series A, Callable 07/01/2007 @ 102 (MBIA) | |||||||||
5.125%, 07/01/2008 | 500 | 513 | |||||||
Turlock California Health Facilities Revenue, Emanuel Medical Center, Callable 10/15/2014 @ 100 (MLO) | |||||||||
5.000%, 10/15/2024 | 700 | 692 | |||||||
8,424 | |||||||||
The accompanying notes are an integral part of the financial statements.
48 First American Funds Annual Report 2006
Table of Contents
California Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Housing – 3.8% | |||||||||
Association of Bay Area Governments Financial Authority, Archstone Redwood Housing Project, Series A | |||||||||
5.300%, 10/01/2008 | $ | 500 | $ | 509 | |||||
Aztec Shops, California State Auxiliary Organization, San Diego State University, Callable 09/01/2010 @ 101 | |||||||||
5.400%, 09/01/2011 | 1,035 | 1,085 | |||||||
California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series D (AMT) (FNMA) (GNMA) | |||||||||
5.250%, 06/01/2010 | 15 | 15 | |||||||
California Statewide Communities Development Authority, Equity Residential, Series B, Mandatory Put 06/15/2009 @ 100 | |||||||||
5.200%, 12/01/2029 | 500 | 512 | |||||||
2,121 | |||||||||
Lease Revenue – 6.5% | |||||||||
California State Public Works Board, California Community Colleges, Series A, Callable 12/01/2009 @ 101 (MLO) | |||||||||
4.875%, 12/01/2018 | 200 | 203 | |||||||
California State Public Works Board, Department of Health Services, Callable 11/01/2009 @ 101 (MBIA) (MLO) | |||||||||
5.200%, 11/01/2012 | 500 | 523 | |||||||
California State Public Works Board, Department of Mental Health, Callable 06/01/2014 @ 100 (MLO) | |||||||||
5.500%, 06/01/2016 | 540 | 584 | |||||||
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (MLO) | |||||||||
0.000% through 05/31/2010, | |||||||||
thereafter 4.550%, 06/01/2022 | 250 | 202 | |||||||
Los Angeles Community Redevelopment Agency, Lease Revenue, Manchester Social Services Project, Callable 09/01/2015 @ 100 (AMBAC) (MLO) | |||||||||
5.000%, 09/01/2016 | 1,500 | 1,582 | |||||||
Los Angeles Municipal Improvement Corporation, Sanitation Equipment, Series A (FSA) (MLO) | |||||||||
6.000%, 02/01/2007 | 500 | 507 | |||||||
3,601 | |||||||||
Miscellaneous – 3.7% | |||||||||
Children’s Trust Fund, Puerto Rico Tobacco Settlement Issue, Escrowed to Maturity | |||||||||
5.000%, 07/01/2008 (b) | 250 | 256 | |||||||
Golden West Schools Financing Authority, Series A (MBIA) | |||||||||
5.700%, 02/01/2013 | 720 | 790 | |||||||
5.750%, 02/01/2014 | 520 | 576 | |||||||
Golden West Schools Financing Authority, Series A, Zero Coupon Bond (MBIA) | |||||||||
5.000%, 02/01/2012 (d) | 535 | 424 | |||||||
2,046 | |||||||||
Recreational Facility Authority – 1.0% | |||||||||
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101 | |||||||||
6.000%, 07/01/2022 (a) | 500 | 556 | |||||||
Tax Revenue – 5.1% | |||||||||
Coachella Redevelopment Agency, Tax Allocation, Sub-Merged Project Areas, Series A (AMBAC) | |||||||||
4.150%, 09/01/2015 | 440 | 439 | |||||||
Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/2006 @ 102 | |||||||||
6.100%, 10/01/2012 | 165 | 169 | |||||||
Murrieta Community Facilities District #2, The Oaks Area, Callable 09/01/2014 @ 100 | |||||||||
5.750%, 09/01/2020 | 250 | 262 | |||||||
Norco, Special Tax, Community Facilities District #97-1, Callable 10/01/2015 @ 100 (AGTY) | |||||||||
4.500%, 10/01/2016 | 260 | 263 | |||||||
Poway Unified School District, Special Tax, Community Facilities District #6-4, Callable 09/01/2006 @ 103 | |||||||||
5.000%, 09/01/2023 | 400 | 397 | |||||||
San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI) | |||||||||
5.000%, 09/01/2016 | 500 | 519 | |||||||
Southern California Logistics Airport Authority, Callable 06/01/2016 @ 100 (XLCA) | |||||||||
4.000%, 12/01/2016 | 265 | 257 | |||||||
4.250%, 12/01/2018 | 285 | 277 | |||||||
Stockton Public Financing Revenue, Assessment Districts, Senior Lien, Series A, Callable 09/02/2015 @ 100 (RAAI) | |||||||||
4.300%, 09/02/2018 | 215 | 206 | |||||||
2,789 | |||||||||
Transportation – 3.0% | |||||||||
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | |||||||||
4.650%, 10/01/2014 (d) | 1,000 | 694 | |||||||
San Francisco City & County International Airports Commission, Second Series, Issue 25 (AMT) (FSA) | |||||||||
5.500%, 05/01/2008 | 500 | 513 | |||||||
San Francisco City & County International Airports Commission, SFO Fuel, Series A (AMT) (FSA) | |||||||||
5.250%, 01/01/2007 | 450 | 453 | |||||||
1,660 | |||||||||
Utilities – 14.6% | |||||||||
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects, Callable 11/01/2016 @ 100 (FGIC) | |||||||||
5.000%, 11/01/2020 | 1,025 | 1,068 | |||||||
California Municipal Financial Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT) | |||||||||
4.100%, 09/01/2014 | 750 | 746 | |||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT) (GTY) | |||||||||
5.000%, 07/01/2027 | 250 | 247 | |||||||
California State Department of Water, Reservoir Power Supply, Series C-5 (LOC: Dexia Credit Local) (VRDO) | |||||||||
3.920%, 05/01/2022 (c) | 1,000 | 1,000 |
First American Funds Annual Report 2006 49
Table of Contents
Schedule of Investments continued
California Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series A, Mandatory Put 04/01/2013 @ 100 (XLCA) | |||||||||
4.100%, 04/01/2028 | $ | 500 | $ | 499 | |||||
California Statewide Communities Development Authority, Water Revenue, Series B, Callable 10/01/2016 @ 100 (FSA) | |||||||||
4.250%, 10/01/2017 | 635 | 628 | |||||||
Chino Basin Regional Financing Authority, Inland Empire Utility Agency Sewer Project, Pre-refunded 11/01/2009 @ 101 (MBIA) | |||||||||
5.200%, 11/01/2011 (a) | 405 | 426 | |||||||
Imperial, Wastewater Treatment Facility, Callable 10/15/2011 @ 102 (FGIC) | |||||||||
5.000%, 10/15/2020 | 1,000 | 1,028 | |||||||
Metropolitan Water District of Southern California, Series B, Callable 07/01/2006 @ 102 (MBIA) | |||||||||
4.875%, 07/01/2010 | 190 | 193 | |||||||
5.000%, 07/01/2014 | 295 | 301 | |||||||
Metropolitan Water District of Southern California, Series B, Pre-refunded 07/01/2006 @ 102 (MBIA) | |||||||||
4.875%, 07/01/2010 (a) | 135 | 138 | |||||||
5.000%, 07/01/2014 (a) | 205 | 209 | |||||||
Richmond Wastewater Systems, Callable 08/01/2009 @ 102 (FGIC) | |||||||||
5.200%, 08/01/2011 | 500 | 525 | |||||||
Signal Hill, Water Revenue, Callable 11/01/2016 @ 100 (MBIA) | |||||||||
4.250%, 11/01/2017 | 330 | 328 | |||||||
4.375%, 11/01/2018 | 345 | 343 | |||||||
Whittier Utility Authority, Callable 06/01/2013 @ 100 (MBIA) | |||||||||
4.400%, 06/01/2017 | 305 | 305 | |||||||
4.500%, 06/01/2018 | 65 | 65 | |||||||
8,049 | |||||||||
Total Revenue Bonds | 38,003 | ||||||||
General Obligations – 19.5% | |||||||||
Alisal Union School District, Series C, Zero Coupon Bond (FGIC) | |||||||||
5.050%, 08/01/2008 (d) | 860 | 791 | |||||||
California State, Callable 04/01/2014 @ 100 | |||||||||
5.125%, 04/01/2024 | 500 | 516 | |||||||
California State, Callable 08/01/2013 @ 100 | |||||||||
5.000%, 02/01/2017 | 1,000 | 1,037 | |||||||
Foothill-De Anza Community College District, Callable 08/01/2010 @ 101 | |||||||||
6.000%, 08/01/2011 | 300 | 327 | |||||||
Fresno Unified School District, Series A (MBIA) | |||||||||
6.050%, 08/01/2011 | 500 | 549 | |||||||
Jefferson Union High School District, San Mateo County, Series A (MBIA) | |||||||||
6.250%, 02/01/2014 | 300 | 342 | |||||||
Los Angeles Unified School District Election of 2005, Series C (AMBAC) | |||||||||
5.000%, 07/01/2015 | 1,500 | 1,596 | |||||||
Pomona Unified School District, Series A (MBIA) | |||||||||
5.500%, 08/01/2006 | 250 | 250 | |||||||
Pomona Unified School District, Series A, Callable 08/01/2011 @ 103 (MBIA) | |||||||||
6.150%, 08/01/2015 | 500 | 563 | |||||||
Puerto Rico Commonwealth, Series B (FSA) | |||||||||
6.500%, 07/01/2015 | 1,000 | 1,170 | |||||||
Roseville Joint Union High School District, Callable 08/01/2011 @ 101 | |||||||||
5.200%, 08/01/2020 | 600 | 621 | |||||||
San Diego Community College, District Election of 2002, Callable 05/01/2015 @ 100 (FSA) | |||||||||
5.000%, 05/01/2019 | 1,000 | 1,044 | |||||||
San Juan Unified School District, Zero Coupon Bond (FSA) | |||||||||
5.420%, 08/01/2016 (d) | 390 | 245 | |||||||
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) | |||||||||
5.150%, 09/01/2017 (d) | 1,000 | 594 | |||||||
Walnut Valley Unified School District, Series A, Pre-refunded 08/01/2010 @ 102 (FSA) | |||||||||
5.000%, 08/01/2012 (a) | 255 | 271 | |||||||
West Covina Unified School District, Series A (MBIA) | |||||||||
5.350%, 02/01/2020 | 770 | 843 | |||||||
Total General Obligations | 10,759 | ||||||||
Certificates of Participation – 7.6% | |||||||||
Bakersfield Convention Center Expansion Project, Pre-refunded 04/01/2007 @ 101 (MBIA) (MLO) | |||||||||
5.500%, 04/01/2010 (a) | 250 | 256 | |||||||
California Special Districts Association Financial Corporation, Special Districts Finance Program, Series SS, Callable 08/01/2015 @ 100 (XLCA) | |||||||||
4.250%, 08/01/2017 | 100 | 99 | |||||||
Grossmont Unified High School District, Pre-refunded 09/01/2008 @ 102 (FSA) (MLO) | |||||||||
5.400%, 09/01/2013 (a) | 300 | 315 | |||||||
Kern County Board of Education, Series A (MBIA) | |||||||||
4.300%, 06/01/2016 | 500 | 501 | |||||||
Kern County Board of Education, Series A, Callable 05/01/2008 @ 102 (MBIA) (MLO) | |||||||||
5.200%, 05/01/2012 | 325 | 338 | |||||||
Kern County Board of Education, Series A, Pre-refunded 05/01/2008 @ 102 (MBIA) (MLO) | |||||||||
5.200%, 05/01/2012 (a) | 580 | 605 | |||||||
Los Angeles County Schools, Regionalized Business Services Financing Project, Series A (MLO) | |||||||||
5.000%, 09/01/2008 | 200 | 204 | |||||||
Los Angeles, Sonnenblick Del Rio, West Los Angeles (AMBAC) (MLO) | |||||||||
5.375%, 11/01/2010 | 500 | 529 | |||||||
Paradise Unified School District, Measure M Project, Series A, Callable 09/01/2006 @ 101 (AMBAC) (MLO) | |||||||||
5.250%, 09/01/2007 | 300 | 304 | |||||||
Poway California, Callable 08/01/2015 @ 100 (MLO) | |||||||||
4.500%, 08/01/2016 | 585 | 595 | |||||||
Travis Unified School District (FGIC) | |||||||||
4.500%, 09/01/2016 | 425 | 431 | |||||||
Total Certificates of Participation | 4,177 | ||||||||
Total Municipal Bonds (Cost $52,029) | 52,939 | ||||||||
The accompanying notes are an integral part of the financial statements.
50 First American Funds Annual Report 2006
Table of Contents
California Intermediate Tax Free Fund (concluded) | ||||||||
DESCRIPTION | SHARES | VALUE | ||||||
Short-Term Investment – 2.2% | ||||||||
Blackrock Liquidity Funds (Cost $1,237) | 1,237,090 | $ | 1,237 | |||||
Total Investments – 98.2% (Cost $53,266) | 54,176 | |||||||
Other Assets and Liabilities, Net – 1.8% | 991 | |||||||
Total Net Assets – 100.0% | $ | 55,167 | ||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(c) | Variable Rate Security – The rate shown is in effect as of June 30, 2006. |
(d) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
ACA – American Capital Access
AGTY – Assured Guaranty
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $1,959 or 3.6% of total net assets. |
CMI – California Mortgage Insurance Program
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FGIC – Financial Guaranty Insurance Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
GTY – Guaranty
LOC – Letter of Credit
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
VRDO – | Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days’ notice. Maturity date shown represents final maturity. |
XLCA – XL Capital Assurance Inc.
California Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 96.4% | |||||||||
Revenue Bonds – 76.1% | |||||||||
Continuing Care Retirement Community – 0.7% | |||||||||
Association of Bay Area Governments Finance Authority, Lincoln Glen Manor Senior Citizens, Callable 02/15/2008 @ 101 (CMI) | |||||||||
6.100%, 02/15/2025 | $ | 250 | $ | 258 | |||||
Education – 14.2% | |||||||||
Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A | |||||||||
5.900%, 06/01/2010 | 200 | 211 | |||||||
California Educational Facilities Authority, University of Redlands, Series A, Callable 10/01/2015 @ 100 | |||||||||
5.000%, 10/01/2020 | 500 | 507 | |||||||
California Educational Facilities Authority, University of the Pacific, Callable 11/01/2015 @ 100 | |||||||||
5.000%, 11/01/2030 | 1,000 | 1,007 | |||||||
California Educational Facilities Authority, Woodbury University, Callable 01/01/2015 @ 100 | |||||||||
4.500%, 01/01/2016 | 470 | 462 | |||||||
California Municipal Financing Authority, Education Revenue, American Heritage Education Foundation Project, Series A, Callable 06/01/2016 @ 100 | |||||||||
5.250%, 06/01/2026 | 400 | 402 | |||||||
California State Higher Educational Facilities Authority, Fresno Pacific University, Series A, Callable 03/01/2010 @ 101 | |||||||||
6.750%, 03/01/2019 | 380 | 406 | |||||||
California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Partially Pre-refunded 06/01/2010 @ 101 | |||||||||
6.625%, 06/01/2020 (a) | 215 | 231 | |||||||
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101 | |||||||||
5.950%, 06/01/2015 (a) | 310 | 336 | |||||||
California State University Foundation, Monterey Bay, Pre-refunded 06/01/2011 @ 100 (MBIA) | |||||||||
5.300%, 06/01/2022 (a) | 500 | 532 | |||||||
University of California, Series K, Callable 09/01/2008 @ 101 | |||||||||
5.000%, 09/01/2020 | 1,000 | 1,025 | |||||||
5,119 | |||||||||
Healthcare – 11.5% | |||||||||
California Health Facilities Financing Authority, Casa Colina, Callable 04/01/2012 @ 100 | |||||||||
5.500%, 04/01/2013 | 50 | 52 | |||||||
California Health Facilities Financing Authority, Cedars-Sinai Medical Center | |||||||||
5.000%, 11/15/2015 | 500 | 520 | |||||||
California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/2014 @ 100 (CMI) | |||||||||
4.750%, 11/01/2019 | 560 | 558 | |||||||
California Statewide Communities Development Authority, Adventist Health, Series A, Callable 03/01/2015 @ 100 | |||||||||
5.000%, 03/01/2030 | 300 | 299 |
First American Funds Annual Report 2006 51
Table of Contents
Schedule of Investments continued
California Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
California Statewide Communities Development Authority, Daughters of Charity Healthcare, Series A, Callable 07/01/2015 @ 100 | |||||||||
5.250%, 07/01/2030 | $ | 100 | $ | 101 | |||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A | |||||||||
7.250%, 11/15/2011 | 250 | 259 | |||||||
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100 | |||||||||
3.850%, 11/01/2029 | 400 | 389 | |||||||
California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/2007 @ 101 (AMBAC) | |||||||||
5.000%, 06/01/2012 | 350 | 357 | |||||||
California Statewide Communities Development Authority, Redlands Community Hospital, Series A (RAAI) | |||||||||
5.000%, 04/01/2015 | 500 | 519 | |||||||
Loma Linda University Medical Center, Hospital Revenue, Series A | |||||||||
5.000%, 12/01/2015 | 400 | 408 | |||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de La Concepcion, Series A | |||||||||
5.500%, 11/15/2008 | 400 | 410 | |||||||
Turlock California Health Facilities Revenue, Emanuel Medical Center, Callable 10/15/2014 @ 100 (MLO) | |||||||||
5.000%, 10/15/2024 | 300 | 297 | |||||||
4,169 | |||||||||
Housing – 3.3% | |||||||||
Aztec Shops, California State Auxiliary Organization, San Diego University | |||||||||
5.200%, 09/01/2008 | 455 | 465 | |||||||
California State Department of Veterans Affairs, Series C, Callable 01/09/2011 @ 101 (AMT) | |||||||||
5.500%, 12/01/2019 | 205 | 212 | |||||||
California State Housing Finance Agency, Single Family Mortgage, Series B, Callable until 05/31/2010 @ 100 (AMT) (FNMA) (GNMA) | |||||||||
5.650%, 06/01/2010 | 10 | 10 | |||||||
California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/2008 @ 100 | |||||||||
5.250%, 06/01/2029 | 500 | 507 | |||||||
1,194 | |||||||||
Lease Revenue – 7.9% | |||||||||
California State Public Works Board, California Community Colleges, Series B, Callable 06/01/2014 @ 100 (MLO) | |||||||||
5.500%, 06/01/2019 | 1,035 | 1,111 | |||||||
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (MLO) | |||||||||
0.000% through 05/31/2010, | |||||||||
thereafter 4.550%, 06/01/2022 | 1,250 | 1,012 | |||||||
Los Angeles Community Redevelopment Agency, Lease Revenue, Manchester Social Services Project, Callable 09/01/2015 @ 100 (AMBAC) (MLO) | |||||||||
5.000%, 09/01/2016 | 700 | 738 | |||||||
2,861 | |||||||||
Miscellaneous – 8.9% | |||||||||
Golden West Schools Financing Authority, Glendora Unified School District (MBIA) | |||||||||
5.500%, 09/01/2019 | 910 | 1,005 | |||||||
Golden West Schools Financing Authority, Series A (MBIA) | |||||||||
5.750%, 02/01/2014 | 250 | 277 | |||||||
5.800%, 08/01/2022 | 320 | 367 | |||||||
5.800%, 08/01/2023 | 345 | 396 | |||||||
Sacramento City Financing Authority, Pre-refunded 06/01/2010 @ 101 (MLO) | |||||||||
5.400%, 06/01/2018 (a) | 455 | 485 | |||||||
5.500%, 06/01/2023 (a) | 645 | 689 | |||||||
3,219 | |||||||||
Recreational Facility Authority – 1.6% | |||||||||
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101 | |||||||||
6.000%, 07/01/2022 (a) | 500 | 556 | |||||||
Tax Revenue – 13.8% | |||||||||
Grass Valley Community Redevelopment Agency, Tax Allocation, Callable 12/01/2008 @ 102 | |||||||||
6.400%, 12/01/2034 | 400 | 425 | |||||||
Irvine Unified School District Financing Authority, Special Tax Group II, Series A, Callable 09/01/2006 @ 103 | |||||||||
5.000%, 09/01/2026 | 225 | 223 | |||||||
Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/2006 @ 102 | |||||||||
6.100%, 10/01/2012 | 250 | 256 | |||||||
Los Angeles, Callable 03/01/2010 @ 101 | |||||||||
5.625%, 03/01/2019 | 200 | 212 | |||||||
Los Angeles County Community Facilities District #3, Special Tax, Series A, Callable 09/01/2010 @ 100 (AMBAC) | |||||||||
5.250%, 09/01/2018 | 715 | 747 | |||||||
Murrieta Community Facilities District #2, The Oaks Area, Callable 09/01/2014 @ 100 | |||||||||
5.750%, 09/01/2020 | 125 | 131 | |||||||
Norco, Special Tax, Community Facilities District #97-1, Callable 10/01/2015 @ 100 (AGTY) | |||||||||
4.875%, 10/01/2030 | 500 | 493 | |||||||
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100 | |||||||||
5.625%, 03/01/2036 | 155 | 155 | |||||||
Poway Unified School District, Special Tax, Community Facilities District #6-4, Callable 09/01/2006 @ 103 | |||||||||
5.000%, 09/01/2023 | 250 | 248 | |||||||
San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI) | |||||||||
5.000%, 09/01/2016 | 350 | 363 |
The accompanying notes are an integral part of the financial statements.
52 First American Funds Annual Report 2006
Table of Contents
California Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Solana Beach Public Financing Authority, Assessment Revenue, Callable 03/02/2007 @ 103 | |||||||||
5.000%, 09/02/2026 | $ | 100 | $ | 97 | |||||
Southern California Logistics Airport Authority, Callable 06/01/2016 @ 100 (XLCA) | |||||||||
4.125%, 12/01/2017 | 275 | 268 | |||||||
4.500%, 12/01/2026 | 1,000 | 956 | |||||||
Stockton Public Financing Revenue, Assessment Districts, Senior Lien, Series A, Callable 09/02/2015 @ 100 (RAAI) | |||||||||
4.375%, 09/02/2020 | 415 | 397 | |||||||
4,971 | |||||||||
Transportation – 1.0% | |||||||||
Puerto Rico Commonwealth Highway & Transportation Authority, Series X (MBIA) | |||||||||
5.500%, 07/01/2015 | 100 | 110 | |||||||
San Francisco Airport Commission, SFO Fuel Company, Callable 01/01/2008 @ 102 (AMT) (FSA) | |||||||||
5.625%, 01/01/2012 | 250 | 260 | |||||||
370 | |||||||||
Utilities – 13.2% | |||||||||
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects, Callable 11/01/2016 @ 100 (FGIC) | |||||||||
5.000%, 11/01/2023 | 1,190 | 1,230 | |||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series A-2, Callable 04/01/2015 @ 101 (AMT) | |||||||||
5.400%, 04/01/2025 | 500 | 513 | |||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT) | |||||||||
5.000%, 07/01/2027 | 250 | 247 | |||||||
California State, Pre-refunded 10/01/2010 @ 100 | |||||||||
5.250%, 10/01/2019 (a) | 460 | 485 | |||||||
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series C, Mandatory Put 11/01/2016 @ 100 (FGIC) | |||||||||
4.250%, 11/01/2033 | 500 | 493 | |||||||
California Statewide Communities Development Authority, Water Revenue, Series B, Callable 10/01/2016 @ 100 (FSA) | |||||||||
4.750%, 10/01/2032 | 450 | 443 | |||||||
Compton Sewer Authority, Callable 09/01/2008 @ 102 (MBIA) | |||||||||
5.375%, 09/01/2023 | 1,150 | 1,203 | |||||||
South Bayside Waste Management Authority, Callable 03/01/2009 @ 102 (AMBAC) | |||||||||
5.750%, 03/01/2020 | 150 | 160 | |||||||
4,774 | |||||||||
Total Revenue Bonds | 27,491 | ||||||||
General Obligations – 16.8% | |||||||||
Acalanes Unified High School District, Zero Coupon Bond, Pre-refunded 08/01/2010 @ 70.92 (FGIC) | |||||||||
5.560%, 08/01/2016 (a) (b) | 700 | 421 | |||||||
California State, Callable 10/01/2010 @ 100 | |||||||||
5.250%, 10/01/2019 | 140 | 145 | |||||||
California State, Callable 02/01/2013 @ 100 | |||||||||
5.000%, 02/01/2024 | 700 | 714 | |||||||
East Side Union High School District, Santa Clara County, Series B (MBIA) | |||||||||
5.100%, 02/01/2018 | 100 | 107 | |||||||
Glendora Unified School District, Series A, Pre-refunded 09/01/2010 @ 101 (FSA) | |||||||||
5.350%, 09/01/2020 (a) | 340 | 363 | |||||||
Jefferson Union High School District, San Mateo County, Series A (MBIA) | |||||||||
6.250%, 08/01/2020 | 460 | 546 | |||||||
Los Angeles Unified School District Election of 2005, Series C (AMBAC) | |||||||||
5.000%, 07/01/2015 | 500 | 532 | |||||||
Pleasant Valley School District, Ventura County, Series A (MBIA) | |||||||||
5.850%, 02/01/2019 | 250 | 285 | |||||||
Pomona Unified School District, Series A (MBIA) | |||||||||
5.950%, 02/01/2017 | 855 | 975 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 200 | 206 | |||||||
Sacramento Unified School District, Series A, Pre-refunded 07/01/2009 @ 102 | |||||||||
5.750%, 07/01/2017 (a) | 400 | 429 | |||||||
Vallejo City Unified School District, Series A (MBIA) | |||||||||
5.900%, 08/01/2021 | 350 | 404 | |||||||
Ventura County Community College District, Series A, Callable 08/01/2012 @ 101 (MBIA) | |||||||||
5.000%, 08/01/2018 | 910 | 945 | |||||||
Total General Obligations | 6,072 | ||||||||
Certificates of Participation – 3.5% | |||||||||
Escondido, Series A, Callable 09/01/2010 @ 101 (FGIC) | |||||||||
5.625%, 09/01/2020 | 300 | 320 | |||||||
Los Angeles, Sonnenblick del Rio Senior Lien, Callable 11/01/2010 @ 101 (AMBAC) (MLO) | |||||||||
6.000%, 11/01/2019 | 330 | 358 | |||||||
Ridgecrest Civic Center Project, Pre-refunded 03/01/2009 @ 101 (MLO) | |||||||||
6.250%, 03/01/2021 (a) | 250 | 267 | |||||||
West Kern County Water District, Pre-refunded 06/01/2010 @ 101 (MLO) | |||||||||
5.200%, 06/01/2014 (a) | 320 | 337 | |||||||
Total Certificates of Participation | 1,282 | ||||||||
Total Municipal Bonds (Cost $34,022) | 34,845 | ||||||||
First American Funds Annual Report 2006 53
Table of Contents
Schedule of Investments continued
California Tax Free Fund (concluded) | |||||||||
DESCRIPTION | SHARES/PAR | VALUE | |||||||
Short-Term Investments – 2.8% | |||||||||
Money Market Fund – 2.8% | |||||||||
Blackrock Liquidity Funds | 997,998 | $ | 998 | ||||||
U.S. Treasury Obligation – 0.0% | |||||||||
U.S. Treasury Bill | |||||||||
4.547%, 07/20/2006 (c) | $ | 10 | 10 | ||||||
Total Short-Term Investments (Cost $1,008) | 1,008 | ||||||||
Total Investments – 99.2% (Cost $35,030) | 35,853 | ||||||||
Other Assets and Liabilities, Net – 0.8% | 289 | ||||||||
Total Net Assets – 100.0% | $ | 36,142 | |||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call and price indicated. |
(b) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(c) | Yield shown is effective as of June 30, 2006. |
AGTY – Assured Guaranty
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $1,242 or 3.4% of total net assets. |
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
CMI – California Mortgage Insurance Program
FGIC – Financial Guaranty Insurance Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
XLCA – XL Capital Assurance Inc.
Colorado Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.5% | ||||||||
Revenue Bonds – 70.4% | ||||||||
Continuing Care Retirement Community – 1.2% | ||||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100 | ||||||||
5.000%, 12/01/2016 | $ | 500 | $ | 504 | ||||
Education – 5.0% | ||||||||
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Escrowed to Maturity | ||||||||
6.250%, 09/15/2011 (a) | 330 | 344 | ||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | ||||||||
6.375%, 12/01/2011 (a) | 705 | 746 | ||||||
Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Pre-refunded 11/01/2009 @ 100 | ||||||||
6.850%, 11/01/2016 (b) | 440 | 478 | ||||||
Colorado State Educational & Cultural Facilities Authority, Northwest Nazarene Project, Callable 11/01/2010 @ 102 | ||||||||
4.500%, 11/01/2015 | 550 | 529 | ||||||
2,097 | ||||||||
Healthcare – 20.6% | ||||||||
Colorado State Health Facilities Authority, Boulder Hospital (MBIA) | ||||||||
5.000%, 10/01/2010 | 500 | 518 | ||||||
Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A | ||||||||
5.000%, 03/01/2012 | 500 | 519 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/2010 @ 102 | ||||||||
6.900%, 12/01/2025 | 350 | 384 | ||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Series A | ||||||||
4.200%, 06/01/2013 | 200 | 196 | ||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | ||||||||
5.250%, 12/01/2013 | 860 | 906 | ||||||
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/2008 @ 100 | ||||||||
5.375%, 01/01/2016 | 700 | 705 | ||||||
Colorado State Health Facilities Authority, Parkview Medical Center | ||||||||
5.500%, 09/01/2007 | 250 | 254 | ||||||
5.750%, 09/01/2008 | 250 | 258 | ||||||
5.500%, 09/01/2009 | 500 | 518 | ||||||
Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/2008 @ 101 | ||||||||
5.300%, 09/15/2009 | 205 | 205 | ||||||
Colorado State Health Facilities Authority, The Devereux Foundation, Callable 11/01/2012 @ 100 (RAAI) | ||||||||
4.200%, 11/01/2013 | 80 | 79 | ||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center Project | ||||||||
5.000%, 01/15/2013 | 300 | 307 |
The accompanying notes are an integral part of the financial statements.
54 First American Funds Annual Report 2006
Table of Contents
Colorado Intermediate Tax Free Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center Project, Callable 01/15/2012 @ 100 | ||||||||
5.750%, 01/15/2022 | $ | 800 | $ | 832 | ||||
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI | ||||||||
5.000%, 05/15/2013 | 500 | 517 | ||||||
Delta County Memorial Hospital District, Callable 09/01/2013 @ 100 | ||||||||
5.350%, 09/01/2017 | 500 | 509 | ||||||
La Junta County Hospital, Arkansas Valley Regional Medical Center Project | ||||||||
5.300%, 04/01/2007 | 320 | 321 | ||||||
5.400%, 04/01/2008 | 335 | 337 | ||||||
5.500%, 04/01/2009 | 355 | 360 | ||||||
Montrose Memorial Hospital | ||||||||
5.300%, 12/01/2013 | 260 | 266 | ||||||
Montrose Memorial Hospital, Callable 12/01/2013 @ 102 | ||||||||
5.450%, 12/01/2014 | 390 | 401 | ||||||
University of Colorado Hospital Authority, Callable 11/15/2011 @ 100 | ||||||||
5.000%, 11/15/2014 | 300 | 305 | ||||||
8,697 | ||||||||
Miscellaneous – 5.1% | ||||||||
Colorado Educational & Cultural Facilities Authority, Colorado Public Radio | ||||||||
4.800%, 07/01/2009 | 250 | 253 | ||||||
4.900%, 07/01/2010 | 265 | 269 | ||||||
Colorado Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/2011 @ 100 | ||||||||
5.250%, 06/01/2013 | 700 | 727 | ||||||
Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/2007 @ 100 | ||||||||
5.125%, 12/01/2017 | 900 | 910 | ||||||
2,159 | ||||||||
Recreational Facility Authority – 0.5% | ||||||||
Hyland Hills Metropolitan Park & Recreation District, Series A, Callable 12/15/2007 @ 101 | ||||||||
6.100%, 12/15/2009 | 210 | 216 | ||||||
Tax Revenue – 4.4% | ||||||||
Larimer County Sales & Use Tax (AMBAC) | ||||||||
5.000%, 12/15/2010 | 460 | 480 | ||||||
Longmont Sales & Use Tax, Pre-refunded 11/15/2010 @ 100 | ||||||||
5.500%, 11/15/2015 (b) | 500 | 531 | ||||||
Superior Open Space Sales & Use Tax | ||||||||
4.500%, 06/01/2013 | 100 | 100 | ||||||
4.600%, 06/01/2014 | 225 | 224 | ||||||
Westminster Sales & Use Tax, Series A, Callable 12/01/2007 @ 102 (FGIC) | ||||||||
5.250%, 12/01/2011 | 500 | 518 | ||||||
1,853 | ||||||||
Transportation – 15.9% | ||||||||
Colorado Department of Transportation (AMBAC) | ||||||||
6.000%, 06/15/2010 | 1,000 | 1,077 | ||||||
E-470 Public Highway Authority, Convertible CABs, Series C (MBIA) | ||||||||
0.000% through 09/01/2011, | ||||||||
thereafter 5.000%, 09/01/2017 | 500 | 403 | ||||||
E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA) | ||||||||
5.250%, 09/01/2017 (c) | 1,575 | 934 | ||||||
6.400%, 09/01/2019 (c) | 960 | 509 | ||||||
5.396%, 09/01/2022 (c) | 1,000 | 452 | ||||||
Eagle County Air Terminal Revenue, Airport Terminal Improvement Project, Series B, Callable 05/01/2016 @ 100 (AMT) | ||||||||
5.250%, 05/01/2020 | 200 | 199 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs (FSA) | ||||||||
0.000% through 06/15/2011, | ||||||||
thereafter 5.200%, 06/15/2014 | 750 | 623 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC) | ||||||||
0.000% through 06/15/2011, | ||||||||
thereafter 5.250%, 06/15/2015 | 2,000 | 1,667 | ||||||
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC) | ||||||||
0.000% through 06/15/2011, | ||||||||
thereafter 5.350%, 06/15/2016 | 1,000 | 840 | ||||||
6,704 | ||||||||
Utilities – 17.7% | ||||||||
Adams County Pollution Control Revenue, Public Service Project, Series A, Callable 09/01/2015 @ 100 | ||||||||
4.375%, 09/01/2017 | 1,000 | 985 | ||||||
Arapahoe County Water & Wastewater Authority, Escrowed to Maturity | ||||||||
5.550%, 12/01/2006 (a) | 140 | 141 | ||||||
5.650%, 12/01/2007 (a) | 150 | 153 | ||||||
5.750%, 12/01/2008 (a) | 160 | 166 | ||||||
Arapahoe County Water & Wastewater Authority, Pre-refunded 12/01/2009 @ 100 | ||||||||
6.000%, 12/01/2011 (b) | 185 | 196 | ||||||
Boulder Water & Sewer | ||||||||
5.750%, 12/01/2010 | 1,545 | 1,659 | ||||||
Broomfield Water Activity Enterprise, Callable 12/01/2010 @ 101 (MBIA) | ||||||||
5.500%, 12/01/2017 | 500 | 533 | ||||||
Colorado State Water Resources & Power Development Authority, Small Water Resources, Series A, Callable 11/01/2010 @ 100 (FGIC) | ||||||||
5.700%, 11/01/2015 | 100 | 107 | ||||||
Denver City & County Wastewater, Callable 11/01/2012 @ 100 (FGIC) | ||||||||
5.250%, 11/01/2017 | 1,260 | 1,332 | ||||||
Inverness Water & Sanitation District, Arapahoe & Douglas Counties, Series A (RAAI) | ||||||||
4.250%, 12/01/2016 | 600 | 588 | ||||||
Platte River Power Authority, Series DD, Callable 06/01/2007 @ 102 (MBIA) | ||||||||
5.375%, 06/01/2017 | 875 | 903 | ||||||
Ute Water Conservancy District (MBIA) | ||||||||
6.000%, 06/15/2009 | 680 | 720 | ||||||
7,483 | ||||||||
Total Revenue Bonds | 29,713 | |||||||
General Obligations – 20.6% | ||||||||
Arapahoe County School District #5, Cherry Creek, Pre-refunded 12/15/2009 @ 100 (STAID) | ||||||||
5.500%, 12/15/2011 (b) | 1,000 | 1,048 | ||||||
Cordillera Metropolitan District, Eagle County (RAAI) | ||||||||
5.000%, 12/01/2013 | 620 | 642 |
First American Funds Annual Report 2006 55
Table of Contents
Schedule of Investments continued
Colorado Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Denver West Metropolitan School District | |||||||||
4.125%, 12/01/2014 | $ | 150 | $ | 143 | |||||
4.200%, 12/01/2015 | 480 | 458 | |||||||
Douglas County School District #RE-1, Douglas & Elbert Counties, Series B, Zero Coupon Bond (FSA) (STAID) | |||||||||
4.230%, 12/15/2015 (c) | 1,255 | 809 | |||||||
Erie, Series A (MBIA) | |||||||||
4.500%, 12/01/2014 (d) | 240 | 246 | |||||||
Garfield County School District #RE-2, Callable 12/01/2012 @ 100 (FSA) (STAID) | |||||||||
5.250%, 12/01/2019 | 1,530 | 1,619 | |||||||
High Plains Metropolitan District, Series B (LOC: Compass Bank) | |||||||||
4.375%, 12/01/2015 | 980 | 969 | |||||||
Jefferson County School District #R-001 (MBIA) (STAID) | |||||||||
6.250%, 12/15/2009 | 1,000 | 1,075 | |||||||
SBC Metropolitan School District (ACA) | |||||||||
4.250%, 12/01/2015 | 445 | 426 | |||||||
Westglenn Metropolitan District, Callable 12/01/2009 @ 100 | |||||||||
6.000%, 12/01/2014 | 1,220 | 1,266 | |||||||
Total General Obligations | 8,701 | ||||||||
Certificates of Participation – 7.5% | |||||||||
Garfield County Building Corporation (AMBAC) (MLO) | |||||||||
5.750%, 12/01/2009 | 400 | 423 | |||||||
Garfield County Building Corporation, Callable 12/01/2009 @ 101 (AMBAC) (MLO) | |||||||||
5.300%, 12/01/2011 | 400 | 419 | |||||||
Glendale, Callable 12/01/2016 @ 100 (MLO) (XLCA) | |||||||||
4.500%, 12/01/2017 | 400 | 401 | |||||||
Pueblo County, Capital Construction, Callable 12/01/2015 @ 100 (MLO) | |||||||||
4.400%, 12/01/2016 | 410 | 396 | |||||||
Routt County Public Building Authority, Justice Center Project, Callable 12/01/2012 @ 100 (AMBAC) (MLO) | |||||||||
4.000%, 12/01/2013 | 500 | 492 | |||||||
Westminster Recreational Facilities, Callable 09/01/2009 @ 101 (MBIA) (MLO) | |||||||||
5.200%, 09/01/2010 | 1,000 | 1,044 | |||||||
Total Certificates of Participation | 3,175 | ||||||||
Total Municipal Bonds (Cost $40,310) | 41,589 | ||||||||
Short-Term Investment – 1.6% | |||||||||
First American Tax Free Obligations Fund, Class Z (e) | |||||||||
(Cost $687) | 686,597 | 687 | |||||||
Total Investments – 100.1% (Cost $40,997) | 42,276 | ||||||||
Other Assets and Liabilities, Net – (0.1)% | (38 | ) | |||||||
Total Net Assets – 100.0% | $ | 42,238 | |||||||
(a) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(b) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(c) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(d) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $246 or 0.6% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | 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. |
ACA – American Capital Access
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $199, which represents 0.5% of total net assets. |
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FGIC – Financial Guaranty Insurance Corporation
FSA – Financial Security Assurance
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
STAID – State Aid Withholding
XLCA – XL Capital Assurance Inc.
The accompanying notes are an integral part of the financial statements.
56 First American Funds Annual Report 2006
Table of Contents
Colorado Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 100.1% | |||||||||
Revenue Bonds – 71.3% | |||||||||
Continuing Care Retirement Communities – 5.1% | |||||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100 | |||||||||
5.250%, 12/01/2025 | $ | 200 | $ | 201 | |||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/2012 @ 101 | |||||||||
6.125%, 12/01/2033 | 350 | 372 | |||||||
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100 | |||||||||
5.400%, 10/01/2027 (c) | 220 | 217 | |||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100 | |||||||||
5.000%, 09/01/2025 (c) | 325 | 323 | |||||||
1,113 | |||||||||
Education – 5.6% | |||||||||
Colorado State Board of Agriculture, Auxiliary Facility Systems, Callable 03/01/2007 @ 100 (AMBAC) | |||||||||
5.125%, 03/01/2017 | 200 | 203 | |||||||
Colorado State Educational & Cultural Facilities Authority, Ave Marie School Project, Callable 12/01/2010 @ 100 (RAAI) | |||||||||
6.000%, 12/01/2016 | 200 | 214 | |||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | |||||||||
6.375%, 12/01/2011 (a) | 490 | 518 | |||||||
Colorado State Educational & Cultural Facilities Authority, Northwest Nazarene Project, Callable 11/01/2010 @ 102 | |||||||||
4.500%, 11/01/2015 | 300 | 289 | |||||||
1,224 | |||||||||
Healthcare – 21.0% | |||||||||
Boulder County Longmont United Hospital Project (RAAI) | |||||||||
5.300%, 12/01/2010 | 330 | 345 | |||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/2010 @ 102 | |||||||||
6.900%, 12/01/2025 | 150 | 165 | |||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Series A, Callable 06/01/2014 @ 100 | |||||||||
5.250%, 06/01/2034 | 230 | 233 | |||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B, Callable 12/01/2016 @ 100 (RAAI) | |||||||||
4.625%, 12/01/2024 | 325 | 313 | |||||||
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/2008 @ 100 | |||||||||
5.375%, 01/01/2016 | 300 | 302 | |||||||
Colorado State Health Facilities Authority, Parkview Medical Center | |||||||||
5.600%, 09/01/2011 | 300 | 317 | |||||||
Colorado State Health Facilities Authority, Portercare Adventist Project, Pre-refunded 11/15/2011 @ 101 | |||||||||
6.500%, 11/15/2023 (b) | 600 | 674 | |||||||
Colorado State Health Facilities Authority, Poudre Valley Health Care, Series F, Callable 03/01/2015 @ 100 | |||||||||
5.000%, 03/01/2025 | 350 | 347 | |||||||
Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/2008 @ 101 | |||||||||
5.300%, 09/15/2009 | 205 | 205 | |||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center Project, Callable 01/15/2015 @ 100 | |||||||||
5.000%, 01/15/2020 | 250 | 253 | |||||||
Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/2012 @ 100 | |||||||||
5.800%, 01/15/2027 | 500 | 518 | |||||||
Delta County Memorial Hospital District, Callable 09/01/2013 @ 100 | |||||||||
5.350%, 09/01/2017 | 220 | 224 | |||||||
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100 | |||||||||
5.000%, 06/01/2038 | 325 | 314 | |||||||
La Junta, Arkansas Valley Regional Medical Center Project, Callable 04/01/2009 @ 101 | |||||||||
6.100%, 04/01/2024 | 100 | 103 | |||||||
Montrose Memorial Hospital, Callable 12/01/2013 @ 102 | |||||||||
6.375%, 12/01/2023 | 130 | 142 | |||||||
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital, Callable 06/01/2016 @ 100 | |||||||||
5.250%, 06/01/2036 | 100 | 98 | |||||||
4,553 | |||||||||
Housing – 4.3% | |||||||||
Burlingame Housing, Multifamily Revenue, Housing Project, Callable 11/01/2015 @ 100 (MBIA) | |||||||||
4.500%, 11/01/2029 | 750 | 719 | |||||||
Colorado State Housing & Finance Authority, Multifamily Project, Class I, Series B-4, Callable 10/01/2010 @ 100 | |||||||||
5.900%, 04/01/2031 | 100 | 104 | |||||||
Colorado State Housing & Finance Authority, Series E-2, Callable 08/01/2010 @ 105 (AMT) | |||||||||
7.000%, 02/01/2030 | 60 | 63 | |||||||
Colorado State Housing & Finance Authority, Single Family Housing Program, Series A-2, Callable 10/01/2009 @ 105 (AMT) | |||||||||
7.450%, 10/01/2016 | 10 | 10 | |||||||
Colorado State Housing & Finance Authority, Single Family Housing Program, Series B-2, Callable 04/01/2010 @ 105 (AMT) | |||||||||
7.100%, 04/01/2017 | 35 | 36 | |||||||
932 | |||||||||
Miscellaneous – 5.0% | |||||||||
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA) | |||||||||
5.500%, 06/01/2036 | 200 | 205 |
First American Funds Annual Report 2006 57
Table of Contents
Schedule of Investments continued
Colorado Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/2011 @ 100 | |||||||||
5.250%, 06/01/2021 | $ | 750 | $ | 767 | |||||
Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/2007 @ 100 | |||||||||
5.125%, 12/01/2017 | 100 | 101 | |||||||
1,073 | |||||||||
Recreational Facility Authority – 2.2% | |||||||||
Denver Convention Center, Hotel Authority Revenue, Callable 11/01/2016 @ 100 (XLCA) | |||||||||
4.500%, 12/01/2025 | 500 | 479 | |||||||
Tax Revenue – 5.4% | |||||||||
Douglas County Sales & Use Tax Revenue, Callable 10/15/2010 @ 100 (FSA) | |||||||||
5.625%, 10/15/2020 | 200 | 212 | |||||||
Highlands Ranch Metropolitan School District #2, Callable until 06/15/2007 @ 100 (FSA) | |||||||||
5.000%, 06/15/2016 | 20 | 20 | |||||||
Larimer County Sales & Use Tax, Callable 12/15/2010 @ 100 (AMBAC) | |||||||||
5.625%, 12/15/2018 | 100 | 107 | |||||||
Mountain Village Metropolitan District, San Miguel County, Callable 12/01/2007 @ 101 (MBIA) | |||||||||
5.200%, 12/01/2017 | 200 | 205 | |||||||
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100 | |||||||||
5.625%, 03/01/2036 | 100 | 100 | |||||||
Superior Open Space Sales & Use Tax, Callable 06/01/2016 @ 100 | |||||||||
5.000%, 06/01/2026 | 330 | 325 | |||||||
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100 | |||||||||
5.000%, 02/01/2026 | 210 | 211 | |||||||
1,180 | |||||||||
Transportation – 11.5% | |||||||||
Denver City & County Airport, Series E, Callable 11/15/2007 @ 101 (MBIA) | |||||||||
5.250%, 11/15/2023 | 500 | 512 | |||||||
Eagle County Air Term Revenue, Airport Term Improvement Project, Series B, Callable 05/01/2016 @ 100 (AMT) | |||||||||
5.250%, 05/01/2020 | 110 | 109 | |||||||
Northwest Parkway Public Highway Authority, Convertible CABs (FSA) | |||||||||
0.000% through 06/15/2011, | |||||||||
thereafter 5.200%, 06/15/2014 | 750 | 622 | |||||||
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC) | |||||||||
0.000% through 06/15/2011, | |||||||||
thereafter 5.250%, 06/15/2015 | 500 | 417 | |||||||
Northwest Parkway Public Highway Authority, Convertible CABs, Callable 06/15/2016 @ 100 (AMBAC) | |||||||||
0.000% through 06/15/2011, | |||||||||
thereafter 5.700%, 06/15/2021 | 1,000 | 845 | |||||||
2,505 | |||||||||
Utilities – 11.2% | |||||||||
Arapahoe County Water & Wastewater (MBIA) (MLO) | |||||||||
5.000%, 12/01/2026 | 250 | 256 | |||||||
Boulder Water & Sewer, Callable 12/01/2010 @ 100 | |||||||||
5.700%, 12/01/2019 | 300 | 319 | |||||||
Broomfield Water Activity Enterprise, Callable 12/01/2010 @ 101 (MBIA) | |||||||||
5.500%, 12/01/2019 | 400 | 426 | |||||||
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | |||||||||
5.700%, 07/01/2018 | 250 | 262 | |||||||
Inverness Water & Sanitation District, Arapahoe & Douglas Counties, Series A, Callable 12/01/2016 @ 100 (RAAI) | |||||||||
4.500%, 12/01/2019 | 325 | 319 | |||||||
Fort Collins Wastewater Utility Enterprise, Callable 12/01/2010 @ 100 (FSA) | |||||||||
5.500%, 12/01/2020 | 300 | 317 | |||||||
Platte River Power Authority, Series DD, Callable 06/01/2007 @ 102 (MBIA) | |||||||||
5.375%, 06/01/2017 | 500 | 516 | |||||||
2,415 | |||||||||
Total Revenue Bonds | 15,474 | ||||||||
General Obligations – 14.3% | |||||||||
Antelope Water System, Callable until 12/01/2015 @ 100 | |||||||||
4.875%, 12/01/2025 | 175 | 170 | |||||||
Boulder Open Space Acquisition, Callable 08/15/2010 @ 100 | |||||||||
5.450%, 08/15/2016 | 350 | 369 | |||||||
El Paso County School District #49, Falcon, Series A, Callable 12/01/2009 @ 105 (FSA) (STAID) | |||||||||
6.000%, 12/01/2018 | 200 | 221 | |||||||
Grand County School District #002, East Grand, Series B, Callable 12/01/2014 @ 100 (FSA) (STAID) | |||||||||
5.000%, 12/01/2023 | 500 | 516 | |||||||
Larimer, Weld & Boulder Counties School District #R-2J, Thompson, Callable until 12/15/2015 @ 100 (MBIA) | |||||||||
5.000%, 12/15/2020 | 1,250 | 1,301 | |||||||
Midcities Metropolitan School District #2, Callable 12/01/2016 @ 100 (RAAI) | |||||||||
5.125%, 12/01/2030 (c) | 200 | 203 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 200 | 206 | |||||||
SBC Metropolitan District, Callable 12/01/2015 @ 100 (ACA) | |||||||||
5.000%, 12/01/2025 | 115 | 114 | |||||||
Total General Obligations | 3,100 | ||||||||
Certificates of Participation – 14.5% | |||||||||
Arapahoe County Building Finance Authority, Pre-refunded 02/15/2010 @ 100 (AMBAC) (MLO) | |||||||||
5.250%, 02/15/2019 (b) | 350 | 364 | |||||||
5.250%, 02/15/2021 (b) | 650 | 677 | |||||||
Broomfield County, Westminster Open Space Foundation, Callable 12/01/2016 @ 100 | |||||||||
4.625%, 12/01/2025 | 330 | 318 |
The accompanying notes are an integral part of the financial statements.
58 First American Funds Annual Report 2006
Table of Contents
Colorado Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Broomfield County, Open Space Park & Recreation Facilities, Callable 12/01/2010 @ 100 (AMBAC) (MLO) | |||||||||
5.500%, 12/01/2020 | $ | 800 | $ | 845 | |||||
Colorado Springs Old City Hall Project, Callable 12/01/2010 @ 100 (FSA) (MLO) | |||||||||
5.500%, 12/01/2017 | 200 | 211 | |||||||
5.500%, 12/01/2020 | 200 | 211 | |||||||
Garfield County, Pre-refunded 12/01/2009 @ 101 (AMBAC) (MLO) | |||||||||
5.750%, 12/01/2019 (b) | 300 | 320 | |||||||
Pueblo County, Capital Construction, Callable 12/01/2015 @ 100 (MLO) | |||||||||
5.000%, 12/01/2024 | 200 | 201 | |||||||
Total Certificates of Participation | 3,147 | ||||||||
Total Municipal Bonds (Cost $20,861) | 21,721 | ||||||||
Short-Term Investments – 2.7% | |||||||||
Money Market Fund – 2.5% | |||||||||
First American Tax Free Obligations Fund, Class Z (d) | 550,440 | 550 | |||||||
U.S. Treasury Obligation – 0.2% | |||||||||
U.S. Treasury Bill | |||||||||
4.656%, 07/20/2006 (e) | $ | 25 | 25 | ||||||
Total Short-Term Investments (Cost $575) | 575 | ||||||||
Total Investments 102.8% (Cost $21,436) | 22,296 | ||||||||
Other Assets and Liabilities, Net – (2.8)% | (601 | ) | |||||||
Total Net Assets – 100.0% | $ | 21,695 | |||||||
(a) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(b) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(c) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $743 or 3.4% of total net assets. See note 2 in Notes to Financial Statements. |
(d) | 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. |
(e) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
ACA – American Capital Access
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $480, which represents 2.2% of total net assets. |
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance throughout the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FSA – Financial Security Assurance
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
STAID – State Aid Withholding
XLCA – XL Capital Assurance Inc.
Schedule of Open Futures Contract
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Sold | Value | Month | Appreciation | |||||||||||||
Description | ||||||||||||||||
U.S. Treasury 10 Year Note Futures | (15) | $ | (1,573 | ) | September 2006 | $ | 15 | |||||||||
First American Funds Annual Report 2006 59
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 98.7% | |||||||||
Alabama – 1.2% | |||||||||
Revenue Bonds – 1.2% | |||||||||
Alabama State Docks Department, Callable 10/01/2008 @ 102 (MBIA) | |||||||||
5.250%, 10/01/2010 | $ | 3,000 | $ | 3,138 | |||||
Anniston Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity | |||||||||
8.000%, 07/01/2011 (a) | 1,400 | 1,553 | |||||||
Health Care Authority for Baptist Health, Series D | |||||||||
5.000%, 11/15/2015 | 800 | 813 | |||||||
Montgomery BMC Special Care Facilities Finance Authority, Baptist Health, Convertible CABs, Series A-2, Pre-refunded 11/15/2014 @ 100, (MBIA) | |||||||||
0.000% through 11/15/2007, | |||||||||
thereafter 5.000%, 11/15/2016 (b) | 2,000 | 1,948 | |||||||
7,452 | |||||||||
Alaska – 0.1% | |||||||||
Revenue Bond – 0.1% | |||||||||
Aleutians East Burough Project, Aleutian Pribilof Islands (ACA) | |||||||||
4.375%, 06/01/2015 | 400 | 389 | |||||||
Arizona – 2.8% | |||||||||
Revenue Bonds – 1.6% | |||||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101 | |||||||||
7.500%, 11/15/2023 | 3,300 | 3,670 | |||||||
Phoenix Street & Highway User, Callable until 06/30/2009 @ 100 | |||||||||
6.500%, 07/01/2009 | 180 | 180 | |||||||
Phoenix Street & Highway User, Callable until 06/30/2011 @ 100 | |||||||||
6.250%, 07/01/2011 | 900 | 902 | |||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | |||||||||
5.375%, 12/01/2013 | 1,300 | 1,287 | |||||||
Tucson Airport Authority (FSA) | |||||||||
5.000%, 06/01/2013 | 3,760 | 3,938 | |||||||
9,977 | |||||||||
General Obligation – 0.2% | |||||||||
Maricopa County School District #69, Paradise Valley (MBIA) | |||||||||
5.300%, 07/01/2011 | 1,000 | 1,061 | |||||||
Certificates of Participation – 1.0% | |||||||||
Arizona Board of Regents, University of Arizona & Arizona State University, Biomed Project, Callable 06/01/2016 @ 100 (AMBAC) | |||||||||
4.100%, 06/01/2017 | 340 | 331 | |||||||
4.150%, 06/01/2018 | 1,000 | 971 | |||||||
Arizona State Municipal Financing Program, Escrowed to Maturity (MLO) | |||||||||
8.750%, 08/01/2007 (a) | 1,500 | 1,578 | |||||||
Arizona State Municipal Financing Program, Series 15, Escrowed to Maturity (MLO) | |||||||||
8.750%, 08/01/2007 (a) | 2,085 | 2,192 | |||||||
Northern Arizona University, Research Projects, Callable 09/01/2015 @ 100 (AMBAC) (MLO) | |||||||||
4.250%, 09/01/2016 | 1,405 | 1,384 | |||||||
6,456 | |||||||||
17,494 | |||||||||
Arkansas – 0.9% | |||||||||
Revenue Bonds – 0.9% | |||||||||
Pulaski County, Residential Housing Facilities Board, Escrowed to Maturity (FHA) (VA) | |||||||||
7.250%, 06/01/2010 (a) | 1,675 | 1,723 | |||||||
University of Arkansas, Fayetteville, Series B, Callable 11/01/2015 @ 100 (FGIC) | |||||||||
4.500%, 11/01/2016 | 2,000 | 2,030 | |||||||
University of Arkansas, UAMS Campus (FGIC) | |||||||||
5.000%, 03/01/2015 | 1,000 | 1,056 | |||||||
Washington County Hospital Revenue, Regional Medical Center, Series B, Callable 02/01/2015 @ 100 | |||||||||
5.000%, 02/01/2016 | 1,145 | 1,169 | |||||||
5,978 | |||||||||
California – 6.2% | |||||||||
Revenue Bonds – 3.3% | |||||||||
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC) | |||||||||
4.650%, 10/01/2014 (c) | 2,000 | 1,388 | |||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care Alliance (CMI) | |||||||||
4.500%, 08/15/2012 | 335 | 337 | |||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care Alliance, Callable 08/15/2014 @ 100 (CMI) | |||||||||
5.000%, 08/15/2017 | 1,215 | 1,235 | |||||||
Association of Bay Area Governments Financial Authority, Archstone Redwood Housing Project, Series A | |||||||||
5.300%, 10/01/2008 | 290 | 295 | |||||||
Bell Community Housing Authority, Lease Revenue, Callable 10/01/2015 @ 100 (AMBAC) (MLO) | |||||||||
5.000%, 10/01/2025 | 545 | 559 | |||||||
California Educational Facilities Authority, Lutheran University, Series C, Callable 10/01/2014 @ 100 | |||||||||
5.000%, 10/01/2024 | 1,000 | 1,007 | |||||||
California Municipal Financial Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT) | |||||||||
4.100%, 09/01/2014 | 250 | 249 | |||||||
California State Department of Water, Series A, Pre-refunded 05/01/2012 @ 101 | |||||||||
5.875%, 05/01/2016 (b) | 2,000 | 2,220 | |||||||
California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/2008 @ 100 | |||||||||
5.250%, 06/01/2029 | 1,000 | 1,015 | |||||||
California Statewide Communities Development Authority, Elder Care Alliance, Series A | |||||||||
7.250%, 11/15/2011 | 1,450 | 1,502 |
The accompanying notes are an integral part of the financial statements.
60 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
California Statewide Communities Development Authority, Health Facilities, Adventist Health, Series A, Callable 03/01/2015 @ 100 | |||||||||
5.000%, 03/01/2030 | $ | 700 | $ | 698 | |||||
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100 | |||||||||
3.850%, 11/01/2029 | 1,180 | 1,146 | |||||||
California Statewide Communities Development Authority, Kaiser Permanente, Series I, Mandatory Put 05/01/2011 @ 100 | |||||||||
3.450%, 04/01/2035 | 500 | 478 | |||||||
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI) | |||||||||
5.000%, 11/15/2012 | 1,210 | 1,256 | |||||||
Golden State Tobacco Securitization, Pre-refunded 06/01/2010 @ 100 (MLO) | |||||||||
5.600%, 06/01/2028 (b) | 2,450 | 2,594 | |||||||
Golden State Tobacco Securitization, Series A, Convertible CABs, Callable 06/01/2018 @ 100, (FSA) (MLO) | |||||||||
0.000% through 06/01/2010, | |||||||||
thereafter 4.550%, 06/01/2022 | 1,630 | 1,319 | |||||||
Golden State Tobacco Securitization, Series B, Escrowed to Maturity (MLO) | |||||||||
5.000%, 06/01/2012 (a) | 1,000 | 1,052 | |||||||
San Bernardino County Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI) | |||||||||
5.000%, 09/01/2016 | 575 | 597 | |||||||
Woodland Financial Authority, Callable 03/01/2013 @ 102 (MLO) (XLCA) | |||||||||
4.700%, 03/01/2019 | 815 | 823 | |||||||
4.800%, 03/01/2020 | 855 | 867 | |||||||
20,637 | |||||||||
General Obligations – 2.6% | |||||||||
ABC Unified School District, Series A (MBIA) | |||||||||
4.900%, 02/01/2020 | 1,615 | 1,693 | |||||||
California State Economic Recovery, Series A (FGIC) | |||||||||
5.250%, 07/01/2014 | 1,000 | 1,077 | |||||||
California State, Callable 11/01/2011 @ 100 | |||||||||
5.000%, 11/01/2018 | 5,000 | 5,131 | |||||||
California State, Callable 08/01/2013 @ 100 | |||||||||
5.000%, 02/01/2016 | 1,000 | 1,042 | |||||||
5.000%, 02/01/2017 | 2,000 | 2,075 | |||||||
California State, Callable 02/01/2014 @ 100 | |||||||||
5.000%, 02/01/2021 | 1,500 | 1,542 | |||||||
California State, Callable 04/01/2014 @ 100 | |||||||||
5.125%, 04/01/2024 | 500 | 516 | |||||||
Placentia-Yorba Linda Unified School District, Callable 08/01/2014 @ 100 (FGIC) | |||||||||
5.000%, 08/01/2016 | 500 | 527 | |||||||
Roseville Joint Unified High School District, Callable 08/01/2011 @ 101 | |||||||||
5.100%, 08/01/2019 | 390 | 402 | |||||||
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC) | |||||||||
5.150%, 09/01/2017 (c) | 1,000 | 594 | |||||||
Santa Monica Community College District, Capital Appreciation, 2002 Election, Series C, Zero Coupon Bond, Callable 08/01/2015 @ 95.722 (MBIA) | |||||||||
4.420%, 08/01/2016 (c) | 2,000 | 1,242 | |||||||
Victor Elementary School District, Series A, Zero Coupon Bond (FGIC) | |||||||||
5.660%, 08/01/2023 (c) | 2,030 | 873 | |||||||
16,714 | |||||||||
Certificate of Participation – 0.3% | |||||||||
Bakersfield, Convention Center, Series A (AMBAC) | |||||||||
5.000%, 04/01/2016 | 1,665 | 1,760 | |||||||
39,111 | |||||||||
Colorado – 9.6% | |||||||||
Revenue Bonds – 7.1% | |||||||||
Adams County Pollution Control Revenue, Public Service Company Colorado Project, Series A, Callable 09/01/2015 @ 100 (MBIA) | |||||||||
4.375%, 09/01/2017 | 5,000 | 4,927 | |||||||
Arapahoe County, Single Family, Escrowed to Maturity, Zero Coupon Bond | |||||||||
3.340%, 09/01/2010 (a) (c) | 9,320 | 7,843 | |||||||
Colorado Department of Transportation (AMBAC) | |||||||||
6.000%, 06/15/2008 | 3,000 | 3,123 | |||||||
Colorado Health Facilities Authority, Parkview Medical Center, Callable 09/01/2013 @ 100 | |||||||||
5.000%, 09/01/2016 | 640 | 648 | |||||||
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Pre-refunded 09/15/2011 @ 100 | |||||||||
6.750%, 09/15/2015 (b) | 1,200 | 1,333 | |||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity | |||||||||
6.375%, 12/01/2011 (a) | 700 | 740 | |||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100 | |||||||||
6.750%, 12/01/2016 (b) | 1,500 | 1,696 | |||||||
7.250%, 12/01/2021 (b) | 1,500 | 1,729 | |||||||
Colorado State Educational & Cultural Facilities Authority, Pinnacle Charter School Project, Escrowed to Maturity | |||||||||
5.250%, 12/01/2011 (a) | 1,175 | 1,218 | |||||||
Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A | |||||||||
5.000%, 03/01/2012 | 745 | 774 | |||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100 | |||||||||
5.000%, 12/01/2016 | 500 | 503 | |||||||
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI) | |||||||||
4.250%, 12/01/2015 | 1,250 | 1,224 | |||||||
Colorado State Health Facilities Authority, Retirement Facilities, Escrowed to Maturity, Zero Coupon Bond | |||||||||
5.500%, 07/15/2020 (a) (c) | 10,000 | 5,054 | |||||||
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI) | |||||||||
5.000%, 05/15/2013 | 405 | 419 |
First American Funds Annual Report 2006 61
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Colorado State Housing Finance Authority, Series A-2, Callable until 10/31/2006 @ 104.50 | |||||||||
7.150%, 11/01/2014 | $ | 55 | $ | 56 | |||||
Denver Convention Center, Hotel Authority Revenue, Callable 11/01/2016 @ 100 (XLCA) | |||||||||
4.125%, 12/01/2016 | 1,000 | 975 | |||||||
E-470 Public Highway Authority, Convertible CABs, Series C, (MBIA) | |||||||||
0.000% through 09/01/2011, | |||||||||
thereafter 5.000%, 09/01/2017 | 1,500 | 1,209 | |||||||
Mesa County, Escrowed to Maturity, Zero Coupon Bond | |||||||||
3.539%, 12/01/2011 (a) (c) | 5,500 | 4,386 | |||||||
Montrose Memorial Hospital, Callable 12/01/2013 @ 102 | |||||||||
5.700%, 12/01/2017 | 2,170 | 2,264 | |||||||
Northwest Parkway Public Highway Authority, Convertible CABs, (AMBAC) | |||||||||
0.000% through 06/15/2011, | |||||||||
thereafter 5.250%, 06/15/2015 | 2,750 | 2,292 | |||||||
Superior Metropolitan School District #1, Special Revenue (AMBAC) | |||||||||
4.000%, 12/01/2014 | 1,020 | 1,004 | |||||||
University of Northern Colorado, Callable 06/01/2015 @ 100 (FSA) | |||||||||
4.000%, 06/01/2016 | 1,505 | 1,469 | |||||||
44,886 | |||||||||
General Obligations – 2.2% | |||||||||
Denver City & County School District #1, Callable 12/01/2013 @ 100 (FSA) (STAID) | |||||||||
4.000%, 12/01/2014 | 4,545 | 4,491 | |||||||
El Paso County School District #2, Harrison, Callable 12/01/2011 @ 100 (FGIC) (STAID) | |||||||||
5.500%, 12/01/2016 | 1,280 | 1,368 | |||||||
El Paso County School District #49, Falcon, Callable 12/01/2016 @ 100 (MBIA) | |||||||||
5.000%, 12/01/2017 | 1,000 | 1,055 | |||||||
Erie, Series A, Callable 12/01/2016 @ 100 (MBIA) | |||||||||
4.500%, 12/01/2017 (d) | 500 | 505 | |||||||
High Plains Metropolitan District, Series B (LOC: Compass Bank) | |||||||||
4.375%, 12/01/2015 | 380 | 376 | |||||||
Jefferson County School District #R-1 (MBIA) | |||||||||
6.500%, 12/15/2011 | 5,100 | 5,715 | |||||||
Midcities Metropolitan District #2 (RAAI) | |||||||||
4.875%, 12/01/2016 (d) | 385 | 394 | |||||||
13,904 | |||||||||
Certificates of Participation – 0.3% | |||||||||
Arapahoe County (AMBAC) (MLO) | |||||||||
4.000%, 02/15/2014 | 440 | 433 | |||||||
Colorado State Department of Corrections, State Penitentiary II Project, Series B (AMBAC) (MLO) | |||||||||
5.000%, 03/01/2014 | 1,250 | 1,311 | |||||||
1,744 | |||||||||
60,534 | |||||||||
Connecticut – 0.9% | |||||||||
Revenue Bonds – 0.9% | |||||||||
Connecticut State Health & Educational Facilities Authority, Griffin Hospital, Series B (RAAI) | |||||||||
5.000%, 07/01/2014 | 1,185 | 1,232 | |||||||
Mashantucket Western Pequot Tribe, Series A, Callable 09/01/2006 @ 102, Pre-refunded 09/01/2007 @ 101 | |||||||||
6.400%, 09/01/2011 (b) (e) | 4,170 | 4,334 | |||||||
5,566 | |||||||||
Florida – 0.8% | |||||||||
Revenue Bonds – 0.4% | |||||||||
Lee County Industrial Development Authority, Shell Point Village Health Project, Series A | |||||||||
5.500%, 11/15/2008 | 1,000 | 1,016 | |||||||
Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community | |||||||||
5.250%, 10/01/2013 | 1,400 | 1,436 | |||||||
2,452 | |||||||||
Certificate of Participation – 0.4% | |||||||||
Clay County School Board, Series B, Callable 07/01/2015 @ 100 (MBIA) (MLO) | |||||||||
5.000%, 07/01/2018 | 2,205 | 2,288 | |||||||
4,740 | |||||||||
Georgia – 0.3% | |||||||||
Revenue Bond – 0.2% | |||||||||
Cherokee County Water & Sewer Authority, Escrowed to Maturity, Callable 08/01/2006 @ 101.50 (MBIA) | |||||||||
11.250%, 08/01/2007 (a) | 1,045 | 1,091 | |||||||
General Obligations – 0.1% | |||||||||
Fayette County School District, Convertible CABs, (FSA) | |||||||||
0.000% through 09/01/2010, | |||||||||
thereafter 4.150%, 03/01/2014 | 500 | 409 | |||||||
Fayette County School District, Convertible CABs, (FSA) | |||||||||
0.000% through 09/01/2010, | |||||||||
thereafter 4.250%, 03/01/2015 | 265 | 216 | |||||||
Fayette County School District, Convertible CABs, (FSA) | |||||||||
0.000% through 09/10/2010, | |||||||||
thereafter 4.350%, 03/01/2016 | 300 | 243 | |||||||
868 | |||||||||
1,959 | |||||||||
Idaho – 0.2% | |||||||||
Certificates of Participation – 0.2% | |||||||||
Madison County Hospital Revenue | |||||||||
5.000%, 09/01/2012 | 500 | 511 | |||||||
5.250%, 09/01/2015 | 295 | 304 | |||||||
5.250%, 09/01/2016 | 500 | 515 | |||||||
1,330 | |||||||||
Illinois – 17.4% | |||||||||
Revenue Bonds – 8.7% | |||||||||
Chicago, Midway Airport Project, Series C (MBIA) | |||||||||
5.500%, 01/01/2014 | 1,300 | 1,400 | |||||||
Chicago, Park District, Parking Facilities Authority, Escrowed to Maturity (ACA) | |||||||||
5.500%, 01/01/2008 (a) | 3,585 | 3,670 | |||||||
Chicago, Single Family Mortgages, Series A, Callable until 02/28/2007 @ 103 (AMT) (FHLMC) (FNMA) (GNMA) | |||||||||
5.250%, 03/01/2013 | 10 | 10 |
The accompanying notes are an integral part of the financial statements.
62 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Granite Single Family Mortgage, Escrowed to Maturity | |||||||||
7.750%, 10/01/2011 (a) | $ | 635 | $ | 701 | |||||
Chicago Water, Zero Coupon Bond (FGIC) | |||||||||
6.776%, 11/01/2008 (c) | 5,150 | 4,686 | |||||||
5.260%, 11/01/2009 (c) | 6,450 | 5,631 | |||||||
Illinois Development Finance Authority, Midwestern University, Series B, Callable 05/15/2011 @ 101 | |||||||||
5.750%, 05/15/2016 | 350 | 367 | |||||||
Illinois Finance Authority, Clare at Water Tower Project, Series A | |||||||||
5.400%, 05/15/2014 | 1,000 | 987 | |||||||
5.500%, 05/15/2015 | 1,000 | 987 | |||||||
Illinois Finance Authority, Friendship Village Schaumburg, Series A | |||||||||
5.000%, 02/15/2015 | 2,500 | 2,462 | |||||||
Illinois Finance Authority, Landing at Plymouth Project, Series A | |||||||||
5.250%, 05/15/2014 | 1,320 | 1,304 | |||||||
Illinois Finance Authority, Peoples Gas, Light and Coke Co., Series A, Mandatory Put 06/01/2016 @ 100 (AMBAC) | |||||||||
4.300%, 06/01/2035 | 2,000 | 1,983 | |||||||
Illinois Health Facilities Authority, St. Benedict, Series 2003A-2, Callable until 11/14/2015 @ 100 | |||||||||
5.750%, 11/15/2015 | 2,750 | 2,751 | |||||||
Illinois Sports Facilities Authority, Convertible CABs, (AMBAC) | |||||||||
0.000% through 06/15/2010, | |||||||||
thereafter 4.750%, 06/15/2013 | 1,405 | 1,205 | |||||||
Illinois Sports Facilities Authority, Convertible CABs, Callable 06/15/2015 @ 101, (AMBAC) | |||||||||
0.000% through 06/15/2010, | |||||||||
thereafter 5.100%, 06/15/2016 | 1,620 | 1,406 | |||||||
Illinois State Development Finance Authority, Elgin School District, Zero Coupon Bond | |||||||||
5.210%, 01/01/2018 (c) | 2,750 | 1,604 | |||||||
Illinois State Development Finance Authority, Elmhurst Community School #205, Pre-refunded 01/01/2011 @ 100 (FSA) | |||||||||
6.375%, 01/01/2013 (b) | 1,025 | 1,126 | |||||||
Illinois State Development Finance Authority, Waste Management Incorporated Project (AMT) | |||||||||
5.850%, 02/01/2007 | 1,000 | 1,009 | |||||||
Illinois State Educational Facilities Authority, Loyola University of Chicago, Series A, Escrowed to Maturity | |||||||||
7.000%, 07/01/2007 (a) | 1,000 | 1,016 | |||||||
Illinois State Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) | |||||||||
4.350%, 12/01/2010 | 1,605 | 1,613 | |||||||
Illinois State Health Facilities Authority, Evangelical, Escrowed to Maturity | |||||||||
6.750%, 04/15/2012 (a) | 1,320 | 1,451 | |||||||
Illinois State Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity, Callable until 12/31/2014 @ 100 | |||||||||
10.000%, 01/01/2015 (a) | 695 | 871 | |||||||
Illinois State Sales Tax | |||||||||
6.000%, 06/15/2009 | 2,500 | 2,643 | |||||||
5.100%, 06/15/2010 | 2,000 | 2,083 | |||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Convertible CABs, (MBIA) | |||||||||
0.000% through 06/15/2012, | |||||||||
thereafter 5.200%, 06/15/2017 | 1,000 | 777 | |||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A (AMBAC) | |||||||||
6.000%, 06/15/2007 | 750 | 765 | |||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 12/15/2009 @ 101 (FGIC) | |||||||||
5.550%, 12/15/2011 | 675 | 714 | |||||||
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Escrowed to Maturity, Zero Coupon Bond (FGIC) | |||||||||
5.000%, 06/15/2009 (a) (c) | 1,465 | 1,300 | |||||||
Morton Grove, Residential Housing, Escrowed to Maturity (MBIA) | |||||||||
7.350%, 09/01/2009 (a) | 5,570 | 6,117 | |||||||
Southwestern Illinois Development Authority Revenue, Local Government, Triad School District 2 (MBIA) | |||||||||
4.250%, 10/01/2016 | 300 | 296 | |||||||
Southwestern Illinois Development Authority Revenue, Local Government, Triad School District 2, Callable 10/01/2016 @ 100 (MBIA) | |||||||||
4.250%, 10/01/2017 | 615 | 602 | |||||||
5.000%, 10/01/2018 | 1,000 | 1,044 | |||||||
54,581 | |||||||||
General Obligations – 8.7% | |||||||||
Champaign County Community Unit School District #004 | |||||||||
8.250%, 01/01/2009 | 1,315 | 1,444 | |||||||
Chicago, City Colleges, Zero Coupon Bond (FGIC) | |||||||||
5.900%, 01/01/2015 (c) | 10,000 | 6,816 | |||||||
Chicago, Convertible CABs, Series A, (MBIA) | |||||||||
0.000% through 01/01/2011, | |||||||||
thereafter 5.300%, 01/01/2016 | 2,000 | 1,694 | |||||||
Chicago, Project & Refunding (FSA) | |||||||||
5.500%, 01/01/2013 | 1,000 | 1,076 | |||||||
Chicago, Project & Refunding, Series A (FGIC) | |||||||||
5.250%, 01/01/2011 | 5,000 | 5,255 | |||||||
Cook County Community Unit School District #65, Evanston, Series A (FSA) | |||||||||
6.375%, 05/01/2009 | 3,000 | 3,191 | |||||||
Cook County Community Unit School District #102, La Grange, Zero Coupon Bond (FGIC) | |||||||||
5.200%, 12/01/2013 (c) | 2,440 | 1,762 | |||||||
Cook County Community Unit School District #401, Elmwood Park, Zero Coupon Bond (FSA) | |||||||||
5.800%, 12/01/2011 (c) | 3,625 | 2,889 | |||||||
Cook County, Escrowed to Maturity (MBIA) | |||||||||
7.250%, 11/01/2007 (a) | 1,380 | 1,411 | |||||||
Cook County High School District #209, Proviso Township, Convertible CABs, (FSA) | |||||||||
0.000% through 12/01/2007, | |||||||||
thereafter 5.000%, 12/01/2016 | 1,000 | 969 | |||||||
Cook County School District #088, Bellwood, Series B, Callable 12/01/2014 @ 100 (FSA) | |||||||||
5.000%, 12/01/2017 | 1,675 | 1,743 |
First American Funds Annual Report 2006 63
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Cook County School District #123, Oak Lawn, Capital Appreciation, Zero Coupon Bond (MBIA) | |||||||||
5.100%, 12/01/2015 (c) | $ | 2,250 | $ | 1,470 | |||||
Cook County, Series A (MBIA) | |||||||||
6.250%, 11/15/2011 | 1,000 | 1,105 | |||||||
Du Page County Community High School District #94, West Chicago (FSA) | |||||||||
7.250%, 11/01/2009 | 1,780 | 1,955 | |||||||
Illinois State, First Series, Callable 08/01/2010 @ 100 | |||||||||
5.500%, 08/01/2015 | 4,500 | 4,743 | |||||||
Lake County Community Unit School District #60, Waukegan, Series B (FSA) | |||||||||
7.500%, 12/01/2008 | 3,640 | 3,931 | |||||||
Lake County School District #56, Gurnee (FGIC) | |||||||||
8.375%, 01/01/2010 | 1,290 | 1,468 | |||||||
Madison & Jersey Counties Unit School District #11, Alton, Capital Appreciation, Zero Coupon Bond (FSA) | |||||||||
5.350%, 12/01/2019 (c) | 2,100 | 1,100 | |||||||
Rockford School District #205 (FGIC) | |||||||||
5.000%, 02/01/2014 | 500 | 525 | |||||||
St. Clair County, Callable 10/01/2009 @ 102 (FGIC) | |||||||||
6.000%, 10/01/2011 | 1,000 | 1,078 | |||||||
Will County School District #86, Joliet, Zero Coupon Bond (FSA) | |||||||||
5.600%, 11/01/2017 (c) | 3,870 | 2,273 | |||||||
Winnebago & Boone Counties School District #205, Series C, Partially Escrowed to Maturity (FGIC) | |||||||||
6.000%, 02/01/2008 (a) | 5,065 | 5,227 | |||||||
Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA) | |||||||||
5.200%, 01/01/2017 (c) | 3,000 | 1,832 | |||||||
54,957 | |||||||||
109,538 | |||||||||
Indiana – 2.0% | |||||||||
Revenue Bonds – 1.8% | |||||||||
Crown Point Multi-School Building, First Mortgage (MBIA) (MLO) | |||||||||
7.625%, 01/15/2008 | 1,000 | 1,054 | |||||||
Evansville Vanderburgh, Public Leasing, Pre-refunded 01/15/2012 @ 100 (MBIA) (MLO) | |||||||||
5.750%, 07/15/2018 (b) | 1,000 | 1,086 | |||||||
Franklin Township Independent School Building Corporation, Escrowed to Maturity | |||||||||
5.750%, 07/15/2009 (a) | 1,235 | 1,300 | |||||||
Indiana State Housing Authority, Series B-1, Callable until 07/01/2006 @ 102 | |||||||||
6.150%, 07/01/2017 | 210 | 213 | |||||||
Indiana Transportation Finance Authority, Escrowed to Maturity, Callable 06/01/2011 @ 100 | |||||||||
5.750%, 06/01/2012 (a) | 180 | 193 | |||||||
Indiana Transportation Finance Authority, Series A (AMBAC) | |||||||||
5.750%, 06/01/2012 | 1,820 | 1,981 | |||||||
Indiana University, Series K, Zero Coupon Bond (MBIA) | |||||||||
5.360%, 08/01/2011 (c) | 750 | 607 | |||||||
St. Joseph County Hospital Authority, Callable 02/15/2008 @ 101 (MBIA) | |||||||||
4.750%, 08/15/2012 | 1,000 | 1,018 | |||||||
St. Joseph County Independent Economic Development Revenue, Holy Cross Village, Notre Dame Project, Series A | |||||||||
5.750%, 05/15/2016 | 450 | 462 | |||||||
St. Joseph County Independent Economic Development Revenue, Holy Cross Village, Notre Dame Project, Series A, Callable 05/15/2011 @ 100 | |||||||||
5.550%, 05/15/2019 | 230 | 231 | |||||||
St. Joseph County Independent Hospital Authority, Health Facilities Revenue, Madison Center Obligation Group Project, Callable 02/15/2015 @ 100 | |||||||||
5.250%, 02/15/2028 | 2,295 | 2,243 | |||||||
Wayne Independent Marion County School Building Corporation, First Meeting (FGIC) (MLO) (STAID) | |||||||||
4.000%, 07/15/2017 | 275 | 263 | |||||||
Zionsville Community Schools Building, First Mortgage Bonds, Pre-refunded 01/15/2012 @ 100 (FGIC) (MLO) (STAID) | |||||||||
5.750%, 07/15/2015 (b) | 775 | 842 | |||||||
11,493 | |||||||||
General Obligation – 0.2% | |||||||||
Gary Sanitation District, Special Tax District (RAAI) | |||||||||
3.750%, 02/01/2011 | 1,260 | 1,236 | |||||||
12,729 | |||||||||
Iowa – 1.9% | |||||||||
Revenue Bonds – 1.9% | |||||||||
Iowa Finance Authority Retirement Community, Friendship Haven Project, Series A, Callable 11/15/2009 @ 100 | |||||||||
5.750%, 11/15/2019 | 500 | 498 | |||||||
Iowa Higher Education Authority, Central College | |||||||||
5.450%, 10/01/2026 | 1,000 | 1,034 | |||||||
Iowa Higher Education Authority, Wartburg College Project, Pre-refunded 10/01/2012 @ 100 (ACA) (MBIA) | |||||||||
5.500%, 10/01/2028 (b) | 2,000 | 2,147 | |||||||
Iowa Higher Education Authority, Wartburg College Project, Series A, Callable 10/01/2013 @ 100 | |||||||||
4.700%, 10/01/2016 | 925 | 899 | |||||||
4.750%, 10/01/2017 | 1,100 | 1,071 | |||||||
4.800%, 10/01/2018 | 1,155 | 1,124 | |||||||
5.000%, 10/01/2023 | 1,475 | 1,435 | |||||||
Iowa State University, Science & Technology University Revenue, Dorm ISU (AMBAC) | |||||||||
4.000%, 07/01/2013 | 595 | 593 | |||||||
4.000%, 07/01/2014 | 650 | 645 | |||||||
4.000%, 07/01/2015 | 350 | 345 | |||||||
Muscatine Electric, Escrowed to Maturity, Callable 07/01/2006 @ 100 | |||||||||
9.700%, 01/01/2013 (a) | 1,790 | 2,127 | |||||||
11,918 | |||||||||
The accompanying notes are an integral part of the financial statements.
64 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Kansas – 2.6% | |||||||||
Revenue Bonds – 1.9% | |||||||||
Butler County Public Building Authority (MBIA) (MLO) | |||||||||
6.375%, 10/01/2010 | $ | 1,000 | $ | 1,091 | |||||
Johnson County Residual Housing, Escrowed to Maturity, Zero Coupon Bond | |||||||||
3.800%, 05/01/2012 (a) (c) | 7,500 | 5,879 | |||||||
Kansas State Development Finance Authority, Health Facilities Revenue, Hays Medical Center, Series L, Callable 11/15/2015 @ 100 | |||||||||
4.500%, 11/15/2017 | 1,405 | 1,361 | |||||||
La Cygne Environmental Improvement Revenue, Kansas City Power & Light (XLCA) | |||||||||
4.050%, 03/01/2015 | 1,000 | 972 | |||||||
Olathe Senior Living Facility Revenue, Catholic Care Campus, Series A | |||||||||
5.750%, 11/15/2013 | 700 | 718 | |||||||
5.750%, 11/15/2014 | 765 | 785 | |||||||
5.750%, 11/15/2015 | 820 | 842 | |||||||
Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA) | |||||||||
6.700%, 06/01/2029 | 420 | 424 | |||||||
12,072 | |||||||||
General Obligations – 0.7% | |||||||||
Johnson County Unified School District #232, Series A, Callable 09/01/2015 @ 100 (FSA) | |||||||||
4.250%, 09/01/2016 | 2,000 | 1,987 | |||||||
Sedgwick County School District #267 (AMBAC) | |||||||||
5.250%, 11/01/2012 | 1,045 | 1,117 | |||||||
Wyandotte County School District #204, Bonner Springs, Series A, Callable 09/01/2015 @ 100 (FGIC) | |||||||||
4.100%, 09/01/2016 | 1,035 | 1,016 | |||||||
4,120 | |||||||||
16,192 | |||||||||
Kentucky – 0.7% | |||||||||
Revenue Bonds – 0.7% | |||||||||
Kentucky State Turnpike Authority, Escrowed to Maturity | |||||||||
7.200%, 07/01/2009 (a) | 885 | 925 | |||||||
Kentucky State Turnpike Authority, Escrowed to Maturity, Callable until 06/30/2011 @ 100 | |||||||||
6.000%, 07/01/2011 (a) | 640 | 669 | |||||||
Louisville Water, Escrowed to Maturity | |||||||||
6.000%, 11/15/2007 (a) | 1,250 | 1,283 | |||||||
Louisville Water, Escrowed to Maturity, Callable until 10/31/2007 @ 101 | |||||||||
6.375%, 11/01/2007 (a) | 1,000 | 1,033 | |||||||
Murray State University, Housing & Dining Services Revenue, Series Q, Callable 09/01/2015 @ 100 (MBIA) | |||||||||
4.125%, 09/01/2016 | 520 | 511 | |||||||
4,421 | |||||||||
Louisiana – 0.7% | |||||||||
Revenue Bonds – 0.5% | |||||||||
Louisiana Local Government Environmental Facilities, Community Development Authority, Callable 01/01/2012 @ 101 (AMT) | |||||||||
6.650%, 01/01/2025 | 730 | 778 | |||||||
Louisiana Public Facilities Authority, Pennington Medical Foundation Project, Callable 07/01/2016 @ 100 | |||||||||
5.000%, 07/01/2021 | 1,000 | 1,009 | |||||||
St. Tammany Parish Sales Tax Revenue, District #03, Sales & Use Tax, Callable 06/01/2016 @ 101 (CIFG) | |||||||||
5.000%, 06/01/2017 | 1,405 | 1,461 | |||||||
3,248 | |||||||||
General Obligation – 0.2% | |||||||||
St. Tammany Parish Wide School District #12 (FSA) | |||||||||
4.000%, 03/01/2016 | 1,390 | 1,338 | |||||||
4,586 | |||||||||
Maine – 0.3% | |||||||||
General Obligation – 0.3% | |||||||||
Maine Municipal Bond Bank, Series B (FSA) | |||||||||
5.750%, 11/01/2010 | 2,000 | 2,144 | |||||||
Maryland – 0.2% | |||||||||
Revenue Bond – 0.2% | |||||||||
Maryland State Department of Transportation, Callable 02/15/2016 @ 100 | |||||||||
4.250%, 02/15/2017 | 1,000 | 995 | |||||||
Massachusetts – 3.6% | |||||||||
Revenue Bonds – 3.1% | |||||||||
Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/2012 @ 102 (AMT) | |||||||||
6.500%, 09/01/2035 | 2,000 | 2,036 | |||||||
Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC) | |||||||||
5.750%, 03/01/2010 | 2,100 | 2,228 | |||||||
Massachusetts Bay Transportation Authority, Series A | |||||||||
6.250%, 03/01/2012 | 1,875 | 2,078 | |||||||
Massachusetts State Commonwealth, Special Obligation, Series A | |||||||||
5.500%, 06/01/2013 | 1,000 | 1,081 | |||||||
Massachusetts State Health & Educational Authority Revenue, Berkshire Health System, Series F (AGTY) | |||||||||
5.000%, 10/01/2015 | 2,000 | 2,088 | |||||||
Massachusetts State Health & Educational Facilities Authority, Partners Healthcare System, Series A, Callable 07/01/2007 @ 101 (MBIA) | |||||||||
5.100%, 07/01/2010 | 3,000 | 3,057 | |||||||
Massachusetts State, Multifamily Housing, Escrowed to Maturity, Callable 10/01/2006 @ 100 (FHA) | |||||||||
6.350%, 04/01/2008 (a) | 430 | 431 | |||||||
Massachusetts State Port Authority | |||||||||
5.750%, 07/01/2012 | 1,000 | 1,079 | |||||||
Massachusetts State Port Authority, Escrowed to Maturity, Callable until 06/30/2013 @ 100 | |||||||||
13.000%, 07/01/2013 (a) | 3,990 | 5,267 | |||||||
19,345 | |||||||||
General Obligation – 0.5% | |||||||||
Massachusetts State, Series A, Pre-refunded 01/01/2011 @ 100 | |||||||||
5.125%, 01/01/2016 (b) | 3,000 | 3,137 | |||||||
22,482 | |||||||||
Michigan – 4.2% | |||||||||
Revenue Bonds – 2.3% | |||||||||
Detroit Water Supply, Escrowed to Maturity, Callable until 06/30/2012 @ 100 (FGIC) | |||||||||
6.250%, 07/01/2012 (a) | 285 | 305 |
First American Funds Annual Report 2006 65
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Callable 03/01/2013 @ 100 | |||||||||
5.500%, 03/01/2015 | $ | 3,500 | $ | 3,769 | |||||
Michigan State Hospital Finance Authority, Henry Ford Hospital, Escrowed to Maturity, Callable until 04/30/2008 @ 100 | |||||||||
9.000%, 05/01/2008 (a) | 2,470 | 2,624 | |||||||
Michigan State Housing Development Authority, Green Hill Project, Callable until 07/15/2006 @ 101 (FNMA) | |||||||||
5.125%, 07/15/2008 | 1,045 | 1,046 | |||||||
Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity, Callable until 10/31/2006 @ 100.50 | |||||||||
7.000%, 11/01/2015 (a) | 1,300 | 1,541 | |||||||
Wayne Charter County Airport, Series A, Callable 12/01/2008 @ 101 (AMT) (MBIA) | |||||||||
5.250%, 12/01/2009 | 5,000 | 5,174 | |||||||
14,459 | |||||||||
General Obligations – 1.9% | |||||||||
Chippewa Valley Schools, Callable 05/01/2012 @ 100 (MQSBLF) | |||||||||
5.500%, 05/01/2014 | 1,775 | 1,897 | |||||||
Constantine Public Schools, Callable 11/01/2012 @ 100 (MQSBLF) | |||||||||
5.000%, 05/01/2016 | 1,075 | 1,122 | |||||||
Detroit (AMT) (FSA) | |||||||||
5.750%, 04/01/2009 | 1,255 | 1,311 | |||||||
Lakeshore Public Schools, Callable 05/01/2011 @ 100 (MQSBLF) | |||||||||
5.000%, 05/01/2012 | 1,160 | 1,208 | |||||||
Lakeview Public Schools, Callable 05/01/2011 @ 100 (MQSBLF) | |||||||||
5.000%, 05/01/2014 | 1,985 | 2,058 | |||||||
Rochester Community School District, Series 1, Pre-refunded 05/01/2010 @ 100 (FGIC) | |||||||||
5.375%, 05/01/2011 (b) | 2,000 | 2,102 | |||||||
Woodhaven Brownstown School District (FSA) (MQSBLF) | |||||||||
5.000%, 05/01/2014 | 2,000 | 2,109 | |||||||
11,807 | |||||||||
26,266 | |||||||||
Minnesota – 3.2% | |||||||||
Revenue Bonds – 2.5% | |||||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) | |||||||||
5.750%, 01/01/2010 | 1,000 | 1,053 | |||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2008 @ 101 (AMBAC) (AMT) | |||||||||
5.375%, 01/01/2010 | 3,000 | 3,083 | |||||||
Minneapolis Hospital & Rehabilitation, Escrowed to Maturity | |||||||||
10.000%, 06/01/2013 (a) | 850 | 1,031 | |||||||
Minnesota Agricultural & Economic Development Board, Health Care Systems, Series A, Callable 11/15/2010 @ 101 | |||||||||
5.875%, 11/15/2011 | 2,135 | 2,280 | |||||||
Minnesota State Higher Education Facilities Revenue, College of Art & Design, Series 6-K | |||||||||
5.000%, 05/01/2012 (d) | 295 | 304 | |||||||
Minnesota State Municipal Power Agency, Electric Revenue, Callable 10/01/2015 @ 100 | |||||||||
4.375%, 10/01/2025 | 1,950 | 1,797 | |||||||
Monticello Big Lake Community Hospital District, Health Care Facilities, Series C | |||||||||
5.250%, 12/01/2011 | 1,940 | 2,007 | |||||||
St. Paul Housing & Redevelopment Authority, Callable 08/01/2006 @ 102.50 (AMBAC) | |||||||||
6.500%, 02/01/2009 | 1,315 | 1,351 | |||||||
St. Paul Port Authority Hotel, Pre-refunded 08/01/2008 @ 100 | |||||||||
8.050%, 08/01/2021 (b) | 2,335 | 2,525 | |||||||
15,431 | |||||||||
General Obligations – 0.7% | |||||||||
Moorhead Independent School District #152, Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP) | |||||||||
5.000%, 04/01/2013 (f) | 1,270 | 1,325 | |||||||
New Brighton Tax Increment, Series A (MBIA) | |||||||||
4.250%, 02/01/2015 (d) | 610 | 612 | |||||||
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2009 @ 100 (MSDCEP) | |||||||||
5.250%, 02/01/2012 (f) | 1,435 | 1,479 | |||||||
South Washington County Independent School District #833, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP) | |||||||||
5.300%, 02/01/2011 (f) | 1,000 | 1,043 | |||||||
4,459 | |||||||||
19,890 | |||||||||
Mississippi – 0.5% | |||||||||
Revenue Bonds – 0.2% | |||||||||
Mississippi Development Bank Special Obligation, Hattiesburg Water & Sewer, Callable 08/01/2016 @ 100 (AMBAC) | |||||||||
4.125%, 08/01/2017 | 575 | 558 | |||||||
4.125%, 08/01/2018 | 800 | 770 | |||||||
1,328 | |||||||||
General Obligation – 0.3% | |||||||||
Madison County School District, Series A (FGIC) | |||||||||
4.000%, 09/01/2015 | 1,790 | 1,745 | |||||||
3,073 | |||||||||
Missouri – 0.9% | |||||||||
Revenue Bonds – 0.8% | |||||||||
Hannibal Industrial Development Authority, Health Facilities Revenue, Hannibal Regional Hospital | |||||||||
4.350%, 03/01/2014 | 1,405 | 1,380 | |||||||
Joplin Individual Development Authority Health Facilities, Freeman Health System Project | |||||||||
4.125%, 02/15/2009 | 750 | 745 | |||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project, Callable 01/01/2016 @ 100 (MBIA) | |||||||||
4.200%, 01/01/2018 | 1,000 | 976 |
The accompanying notes are an integral part of the financial statements.
66 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Missouri State Health & Educational Facilities Revenue, Senior Living Facilities, Lutheran, Series B | |||||||||
4.350%, 02/01/2015 | $ | 850 | $ | 824 | �� | ||||
4.375%, 02/01/2016 | 930 | 892 | |||||||
4,817 | |||||||||
General Obligation – 0.1% | |||||||||
Nixa Recognized School District #R 02, Missouri Direct Deposit Program, Callable 03/01/2016 @ 100 (FSA) (STAID) | |||||||||
5.000%, 03/01/2018 | 530 | 556 | |||||||
5,373 | |||||||||
Montana – 0.1% | |||||||||
Revenue Bond – 0.1% | |||||||||
Montana Facilities Financial Authority, Health Care Facilities Revenue, Master Loan Project, North Montgomery Group Project | |||||||||
4.500%, 10/01/2014 | 435 | 440 | |||||||
Nebraska – 1.3% | |||||||||
Revenue Bonds – 1.1% | |||||||||
Douglas County Hospital Authority #002, Nebraska Medical Center, Clarkson Regional Health Guaranty (GTY) | |||||||||
5.000%, 11/15/2011 | 2,860 | 2,951 | |||||||
Douglas County Zoo Facilities Revenue, Omaha’s Henry Doory Zoo Project, Callable 04/13/2015 @ 100 | |||||||||
4.750%, 09/01/2017 | 745 | 748 | |||||||
4.750%, 09/01/2018 | 740 | 740 | |||||||
Nebraska Investment Financial Authority, Great Plains Regional Medical Center (RAAI) | |||||||||
4.700%, 11/15/2011 | 500 | 511 | |||||||
Nebraska Investment Financial Authority, Great Plains Regional Medical Center, Callable 05/15/2012 @ 100 (RAAI) | |||||||||
4.800%, 11/15/2012 | 500 | 512 | |||||||
4.900%, 11/15/2013 | 600 | 615 | |||||||
Omaha Northwest Library Facilities, Pre-refunded 08/15/2007 @ 102 (MLO) | |||||||||
5.250%, 08/15/2012 (b) | 975 | 1,009 | |||||||
7,086 | |||||||||
General Obligation – 0.2% | |||||||||
Lincoln-Lancaster County Public Building, Tax Supported Lease Rental, Callable 04/15/2015 @ 100 (MLO) | |||||||||
4.500%, 10/15/2015 | 1,020 | 1,035 | |||||||
8,121 | |||||||||
Nevada – 1.8% | |||||||||
Revenue Bonds – 0.7% | |||||||||
Carson City, Carson-Tahoe Hospital Project | |||||||||
5.750%, 09/01/2011 | 1,000 | 1,046 | |||||||
5.750%, 09/01/2012 | 1,055 | 1,109 | |||||||
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B, Callable 11/15/2014 @ 100 | |||||||||
6.750%, 11/15/2023 | 2,150 | 2,122 | |||||||
4,277 | |||||||||
General Obligations – 1.1% | |||||||||
Clark County School District, Building & Renovation, Series B, Pre-refunded 06/15/2007 @ 101 (FGIC) | |||||||||
5.750%, 06/15/2008 (b) | 1,000 | 1,028 | |||||||
Nevada State, Pre-refunded 06/01/2008 @ 100 | |||||||||
5.250%, 06/01/2011 (b) | 3,000 | 3,078 | |||||||
Washoe County, Escrowed to Maturity, Callable 08/01/2006 @ 100 | |||||||||
9.875%, 08/01/2009 (a) | 2,890 | 3,157 | |||||||
7,263 | |||||||||
11,540 | |||||||||
New Hampshire – 0.4% | |||||||||
Revenue Bonds – 0.4% | |||||||||
New Hampshire Health & Education Facilities Authority, Callable 07/01/2014 @ 100 | |||||||||
5.375%, 07/01/2024 | 1,250 | 1,285 | |||||||
New Hampshire State Health & Educational Facilities Authority, Speare Memorial Hospital, Callable 07/01/2015 @ 100 | |||||||||
5.500%, 07/01/2025 | 1,000 | 1,003 | |||||||
2,288 | |||||||||
New Jersey – 1.0% | |||||||||
Revenue Bonds – 1.0% | |||||||||
New Jersey Economic Development Authority, Cigarette Tax | |||||||||
5.500%, 06/15/2016 | 2,000 | 2,125 | |||||||
New Jersey Health Care Facilities, Capital Health Systems, Series A | |||||||||
5.500%, 07/01/2012 | 1,500 | 1,571 | |||||||
New Jersey State Transportation Trust Fund Authority, Series A | |||||||||
5.500%, 06/15/2008 | 2,000 | 2,057 | |||||||
New Jersey State Turnpike Authority, Escrowed to Maturity | |||||||||
6.750%, 01/01/2009 (a) | 605 | 609 | |||||||
6,362 | |||||||||
New York – 2.7% | |||||||||
Revenue Bonds – 1.0% | |||||||||
Hempstead Town Industrial Development Agency, Callable 12/01/2006 @ 102 (MBIA) | |||||||||
5.000%, 12/01/2008 | 2,000 | 2,048 | |||||||
Long Island Power Authority, Series B | |||||||||
5.250%, 12/01/2013 | 4,000 | 4,247 | |||||||
6,295 | |||||||||
General Obligations – 1.7% | |||||||||
New York, Series A, Callable 08/01/2012 @ 100 | |||||||||
5.750%, 08/01/2015 | 3,220 | 3,479 | |||||||
New York, Series C, Callable 03/15/2012 @ 100 | |||||||||
5.500%, 03/15/2014 | 3,000 | 3,177 | |||||||
New York, Series D | |||||||||
5.500%, 06/01/2012 | 2,000 | 2,134 | |||||||
New York, Series G (XLCA) | |||||||||
5.500%, 08/01/2012 | 2,000 | 2,149 | |||||||
10,939 | |||||||||
17,234 | |||||||||
North Carolina – 0.8% | |||||||||
Revenue Bonds – 0.8% | |||||||||
North Carolina Eastern Power Agency, Series D | |||||||||
5.375%, 01/01/2013 | 2,955 | 3,116 | |||||||
North Carolina Power Agency #1, Series A, Callable 01/01/2013 @ 100 (FSA) | |||||||||
5.250%, 01/01/2016 | 2,000 | 2,116 | |||||||
5,232 | |||||||||
First American Funds Annual Report 2006 67
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Ohio – 1.9% | |||||||||
Revenue Bonds – 1.2% | |||||||||
Lorain County Hospital Facilities, Catholic Healthcare Partners, Series B, Callable 09/01/2007 @ 102 (MBIA) | |||||||||
5.375%, 09/01/2009 | $ | 1,000 | $ | 1,033 | |||||
Miami County Hospital Facilities, Upper Valley Medical Center | |||||||||
5.250%, 05/15/2016 | 750 | 779 | |||||||
Ohio State Higher Education Facilities Revenue, John Carroll University Project | |||||||||
4.000%, 04/01/2014 | 1,135 | 1,110 | |||||||
4.500%, 04/01/2015 | 1,000 | 1,012 | |||||||
Ohio State Higher Education Facilities Revenue, John Carrol University Project, Callable 04/01/2016 @ 100 | |||||||||
4.300%, 04/01/2018 | 550 | 533 | |||||||
Ohio State Water Development Authority, Escrowed to Maturity, Callable 12/01/2006 @ 100 | |||||||||
9.375%, 12/01/2010 (a) | 1,550 | 1,692 | |||||||
Richland County Hospital Facilities, Series A | |||||||||
5.550%, 11/15/2006 | 765 | 770 | |||||||
5.650%, 11/15/2008 | 595 | 615 | |||||||
7,544 | |||||||||
General Obligations – 0.5% | |||||||||
Hilliard School District, Series A, Callable 12/01/2016 @ 100 (MBIA) | |||||||||
5.000%, 12/01/2017 | 1,260 | 1,330 | |||||||
Lakota Local School District, Callable 12/01/2015 @ 100 (FSA) | |||||||||
4.200%, 12/01/2017 | 1,685 | 1,661 | |||||||
North Olmsted, Limited Tax Capital Improvement, Series C, Callable 12/01/2016 @ 100 (AMBAC) | |||||||||
4.125%, 12/01/2017 | 400 | 389 | |||||||
3,380 | |||||||||
Certificate of Participation – 0.2% | |||||||||
Akron, Callable 06/01/2015 @ 100 (AGTY) (MLO) | |||||||||
5.000%, 12/01/2015 | 1,000 | 1,036 | |||||||
11,960 | |||||||||
Oklahoma – 1.7% | |||||||||
Revenue Bonds – 1.7% | |||||||||
Cherokee County Economic, Escrowed to Maturity, Zero Coupon Bond (AMBAC) | |||||||||
5.610%, 11/01/2011 (a) (c) | 3,340 | 2,681 | |||||||
McClain County Economic Development Authority, Educational Facilities Lease Revenue, Newcastle Public Schools Project (MLO) | |||||||||
5.000%, 09/01/2009 | 510 | 520 | |||||||
5.000%, 09/01/2011 | 345 | 354 | |||||||
5.000%, 09/01/2012 | 355 | 366 | |||||||
4.125%, 09/01/2013 | 250 | 244 | |||||||
Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project, Callable 10/01/2014 @ 101 (AMT) | |||||||||
5.750%, 01/01/2023 | 1,430 | 1,462 | |||||||
South Oklahoma City, Callable until 01/31/2013 @ 100, Pre-refunded 02/01/2010 @ 100 | |||||||||
9.750%, 02/01/2013 (b) | 3,270 | 3,733 | |||||||
Tulsa Educational Facilities Authority, Holland Hall School Project, Series B, Callable 12/01/2008 @ 101 | |||||||||
4.600%, 12/01/2009 | 1,195 | 1,213 | |||||||
10,573 | |||||||||
Oregon – 0.9% | |||||||||
General Obligations – 0.6% | |||||||||
Clackamas County School District #108, Estacada (FSA) (SBG) | |||||||||
5.250%, 06/15/2017 | 1,205 | 1,299 | |||||||
Lane County School District #52, Bethel (SBG) | |||||||||
5.500%, 06/15/2009 | 1,000 | 1,045 | |||||||
Morrow County School District #001 (FSA) (SBG) | |||||||||
5.250%, 06/15/2016 | 1,245 | 1,338 | |||||||
3,682 | |||||||||
Certificate of Participation – 0.3% | |||||||||
Oregon State Department of Administrative Services, Series E, Callable 11/01/2012 @ 100 (FSA) (MLO) | |||||||||
5.000%, 11/01/2014 | 2,170 | 2,274 | |||||||
5,956 | |||||||||
Pennsylvania – 1.5% | |||||||||
Revenue Bonds – 1.0% | |||||||||
Delaware County Hospital Revenue Authority, Crozer-Chester Medical Center (RAAI) | |||||||||
5.000%, 12/15/2015 | 1,275 | 1,327 | |||||||
Delaware County Hospital Revenue Authority, Crozer-Chester Medical Center, Callable 12/15/2015 @ 100 (RAAI) | |||||||||
5.000%, 12/15/2017 | 1,405 | 1,449 | |||||||
Montgomery County Industrial Development Authority, Whitemarsh Continued Care Project, Callable 02/01/2015 @ 100 | |||||||||
6.125%, 02/01/2028 | 1,000 | 1,050 | |||||||
Westmoreland County Independent Development Authority Revenue, Retirement Community, Redstone, Series A | |||||||||
5.375%, 01/01/2014 | 1,100 | 1,111 | |||||||
5.500%, 01/01/2016 | 1,200 | 1,217 | |||||||
6,154 | |||||||||
General Obligations – 0.5% | |||||||||
Central Greene School District, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond, Callable until 05/31/2007 @ 101.50 of compound accreted value (MBIA) (STAID) | |||||||||
4.690%, 12/01/2007 (a) (c) | 2,000 | 1,894 | |||||||
Ephrata Area School District, Callable 04/15/2016 @ 100 (FGIC) (STAID) | |||||||||
4.500%, 04/15/2018 | 1,500 | 1,503 | |||||||
3,397 | |||||||||
9,551 | |||||||||
South Carolina – 1.5% | |||||||||
Revenue Bonds – 1.5% | |||||||||
Charleston EDL Excellence Finance, Charleston County School District Project (MLO) | |||||||||
5.000%, 12/01/2013 | 2,000 | 2,091 |
The accompanying notes are an integral part of the financial statements.
68 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Lexington County Health Services District, Lexington Medical Center, Callable 11/01/2013 @ 100 | |||||||||
5.500%, 11/01/2023 | $ | 2,000 | $ | 2,065 | |||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A | |||||||||
6.000%, 08/01/2013 | 1,000 | 1,090 | |||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C | |||||||||
6.000%, 08/01/2013 | 2,000 | 2,180 | |||||||
South Carolina State Public Service Authority, Series A (MBIA) | |||||||||
5.500%, 01/01/2010 | 1,665 | 1,751 | |||||||
9,177 | |||||||||
South Dakota – 1.4% | |||||||||
Revenue Bonds – 0.8% | |||||||||
South Dakota State Health & Educational Facilities Authority, Sioux Valley Hospital | |||||||||
5.250%, 11/01/2008 | 900 | 924 | |||||||
South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement | |||||||||
5.800%, 09/01/2006 | 735 | 737 | |||||||
5.900%, 09/01/2007 | 755 | 767 | |||||||
4.750%, 09/01/2011 | 530 | 537 | |||||||
5.000%, 09/01/2012 | 1,000 | 1,027 | |||||||
South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2012 @ 101 | |||||||||
5.000%, 09/01/2013 | 1,000 | 1,023 | |||||||
5,015 | |||||||||
Certificates of Participation – 0.6% | |||||||||
Deadwood (ACA) (MLO) | |||||||||
5.500%, 11/01/2007 | 800 | 815 | |||||||
5.600%, 11/01/2008 | 845 | 872 | |||||||
Deadwood, Callable 11/01/2015 @ 100 (ACA) (MLO) | |||||||||
5.000%, 11/01/2018 | 2,385 | 2,420 | |||||||
4,107 | |||||||||
9,122 | |||||||||
Tennessee – 2.2% | |||||||||
Revenue Bonds – 1.7% | |||||||||
Metropolitan Government Nashville & Davidson County, Escrowed to Maturity, Callable 10/01/2006 @ 102 | |||||||||
6.400%, 04/01/2011 (a) | 1,030 | 1,138 | |||||||
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100 | |||||||||
6.000%, 09/01/2016 (b) | 1,500 | 1,661 | |||||||
Shelby County Health, Educational & Housing Facilities Board, St. Jude’s Children’s Research | |||||||||
5.000%, 07/01/2009 | 400 | 407 | |||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Callable 09/01/2013 @ 100 (RAAI) | |||||||||
5.000%, 09/01/2016 | 2,000 | 2,058 | |||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Escrowed to Maturity | |||||||||
6.250%, 09/01/2011 (a) | 1,465 | 1,601 | |||||||
6.250%, 09/01/2012 (a) | 1,085 | 1,200 | |||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101 | |||||||||
6.500%, 09/01/2013 (b) | 2,215 | 2,498 | |||||||
10,563 | |||||||||
General Obligations – 0.5% | |||||||||
Knoxville, Series A | |||||||||
5.000%, 05/01/2016 | 1,030 | 1,089 | |||||||
Memphis (MBIA) | |||||||||
5.000%, 10/01/2016 | 2,000 | 2,120 | |||||||
3,209 | |||||||||
13,772 | |||||||||
Texas – 9.3% | |||||||||
Revenue Bonds – 3.9% | |||||||||
Abilene Health Facilities Development, Sears Methodist Retirement, Series A | |||||||||
5.250%, 11/15/2006 | 1,175 | 1,178 | |||||||
5.300%, 11/15/2007 | 1,000 | 1,013 | |||||||
5.350%, 11/15/2008 | 1,300 | 1,327 | |||||||
Brazos River Authority, Electric Company Project, Series 1999-B, Mandatory Put 04/01/2013 @ 100 (AMT) | |||||||||
6.750%, 09/01/2034 | 2,000 | 2,200 | |||||||
Brazos River Authority, Electric Company Project, Series C, Mandatory Put 11/01/2011 @ 100 (AMT) | |||||||||
5.750%, 05/01/2036 | 1,585 | 1,664 | |||||||
Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/2012 @ 100 (AMT) | |||||||||
5.700%, 05/15/2033 | 1,000 | 1,055 | |||||||
Grapevine Industrial Development, Air Cargo, Callable 01/01/2012 @ 101 (AMT) | |||||||||
6.500%, 01/01/2024 | 490 | 524 | |||||||
Gregg County Health Facilities Development, Good Shepherd Medical Center, Series A | |||||||||
5.750%, 10/01/2009 | 2,895 | 2,981 | |||||||
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/2014 @ 101 | |||||||||
7.000%, 02/15/2023 | 2,000 | 2,201 | |||||||
Odessa Housing Finance, Escrowed to Maturity, Zero Coupon Bond, Callable 12/01/2006 @ 64.958 (MBIA) | |||||||||
3.780%, 06/01/2012 (a) (c) | 1,465 | 1,138 | |||||||
Richardson Hospital Authority | |||||||||
5.500%, 12/01/2013 | 1,290 | 1,356 | |||||||
Richardson Hospital Authority, Callable 12/01/2013 @ 100 | |||||||||
5.500%, 12/01/2014 | 1,310 | 1,370 | |||||||
San Antonio Electric & Gas, Series A, Callable 02/01/2009 @ 101 | |||||||||
5.250%, 02/01/2013 | 2,135 | 2,216 | |||||||
Tarrant County Cultural Education Financial Corporation Retirement Facilities, Northwest Senior Housing, Edgemere Project, Series A | |||||||||
5.750%, 11/15/2014 | 1,235 | 1,280 | |||||||
Travis County Health Facilities, Development Retirement Facilities Revenue, Querencia Barton Creek Project, Callable 11/15/2015 @ 100 | |||||||||
5.250%, 11/15/2017 | 1,000 | 981 | |||||||
5.500%, 11/15/2025 | 900 | 878 | |||||||
Tyler Health Facilities, Mother Frances Hospital | |||||||||
5.250%, 07/01/2012 | 1,000 | 1,038 | |||||||
24,400 | |||||||||
First American Funds Annual Report 2006 69
Table of Contents
Schedule of Investments continued
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
General Obligations – 5.4% | |||||||||
Alvin Independent School District, Callable 02/15/2016 @ 100 (PSFG) | |||||||||
4.250%, 02/15/2018 | $ | 1,360 | $ | 1,326 | |||||
Austin, Callable 09/01/2011 @ 100 | |||||||||
5.000%, 09/01/2013 | 4,510 | 4,699 | |||||||
Brownsville, Callable 02/15/2015 @ 100 (MBIA) | |||||||||
5.000%, 02/15/2017 | 2,125 | 2,215 | |||||||
Cypress-Fairbanks Independent School District, Pre-refunded 02/15/2010 @ 100 (PSFG) | |||||||||
5.500%, 02/15/2018 (b) | 4,000 | 4,214 | |||||||
Donna Independent School District, Callable 02/15/2015 @ 100 (GTY) (PSFG) | |||||||||
5.000%, 02/15/2019 | 1,440 | 1,492 | |||||||
El Campo Independent School District, Callable 08/15/2015 @ 100 (PSFG) | |||||||||
4.500%, 08/15/2018 | 600 | 599 | |||||||
Frisco, Callable 02/05/2011 @ 100 (FGIC) | |||||||||
5.000%, 02/15/2018 | 1,125 | 1,160 | |||||||
5.000%, 02/15/2019 | 1,675 | 1,719 | |||||||
Irving Independent School District, Series A, Zero Coupon Bond (PSFG) | |||||||||
5.000%, 02/15/2009 (c) | 5,000 | 4,496 | |||||||
Kaufman County, Callable 02/15/2012 @ 100 (FSA) | |||||||||
5.000%, 02/15/2017 | 1,000 | 1,033 | |||||||
Keller Independent School District, Callable 08/15/2011 @ 100 (PSFG) | |||||||||
5.375%, 08/15/2014 | 235 | 248 | |||||||
Laredo, Callable 02/15/2015 @ 100 (MBIA) | |||||||||
4.500%, 02/15/2016 | 525 | 530 | |||||||
Los Fresnos Independent School District, Callable 08/15/2015 @ 100 (PSFG) | |||||||||
4.000%, 08/15/2017 | 1,305 | 1,251 | |||||||
Mission Independent School District (GTY) (PSFG) | |||||||||
5.000%, 02/15/2015 | 1,430 | 1,506 | |||||||
North Harris Montgomery Community College District, Callable 02/15/2012 @ 100 (FGIC) | |||||||||
5.375%, 02/15/2015 | 2,535 | 2,691 | |||||||
Port Houston Authority, Harris County, Series B, Callable 10/01/2011 @ 100 (AMT) (FGIC) | |||||||||
5.500%, 10/01/2012 | 2,405 | 2,540 | |||||||
Santa Fe Independent School District, Callable 02/15/2013 @ 100 (PSFG) | |||||||||
4.250%, 02/15/2015 | 1,365 | 1,364 | |||||||
United Independent School District (PSFG) | |||||||||
5.000%, 08/15/2015 | 1,000 | 1,055 | |||||||
34,138 | |||||||||
58,538 | |||||||||
Utah – 0.9% | |||||||||
Revenue Bonds – 0.7% | |||||||||
Salt Lake & Sandy Metropolitan Water District, Series A (AMBAC) | |||||||||
5.000%, 07/01/2015 | 2,500 | 2,629 | |||||||
South Jordan, Sales Tax, Callable 08/15/2011 @ 100 (AMBAC) | |||||||||
5.500%, 08/15/2018 | 1,000 | 1,063 | |||||||
Utah State Housing Finance Agency, Single Family Mortgages, Issue F-1, Callable until 07/01/2006 @ 102 (FHA) (VA) | |||||||||
6.300%, 01/01/2018 | 35 | 36 | |||||||
Utah State Housing Finance Agency, Single Family Mortgages, Series III, Class R, Callable 07/01/2006 @ 102 (FHA) (VA) | |||||||||
5.950%, 07/01/2008 | 470 | 480 | |||||||
4,208 | |||||||||
General Obligation – 0.2% | |||||||||
Ashley Valley Water & Sewer, Escrowed to Maturity, Callable 07/01/2006 @ 102 (AMBAC) | |||||||||
10.900%, 01/01/2010 (a) | 1,095 | 1,241 | |||||||
5,449 | |||||||||
Virginia – 0.4% | |||||||||
Revenue Bonds – 0.4% | |||||||||
Richmond Industrial Development Authority, Government Facilities (AMBAC) (MLO) | |||||||||
5.000%, 07/15/2018 | 1,795 | 1,888 | |||||||
Riverside Regional Jail Authority, Callable until 07/01/2006 @ 102 (MBIA) | |||||||||
5.700%, 07/01/2008 | 905 | 915 | |||||||
2,803 | |||||||||
Washington – 4.7% | |||||||||
Revenue Bonds – 1.3% | |||||||||
Energy Northwest, Washington Wind Project, Series A, Pre-refunded 01/01/2007 @ 103 | |||||||||
5.100%, 07/01/2009 (b) | 1,850 | 1,916 | |||||||
5.200%, 07/01/2010 (b) | 1,950 | 2,020 | |||||||
Energy Northwest, Wind Project, Callable 07/01/2014 @ 100 (MBIA) | |||||||||
4.500%, 07/01/2015 | 1,000 | 1,013 | |||||||
Port Seattle Passenger Facility Charge, Series B (AMBAC) (AMT) | |||||||||
5.000%, 12/01/2007 | 1,000 | 1,014 | |||||||
Snohomish County Housing Authority, Callable 10/01/2006 @ 100 | |||||||||
6.300%, 04/01/2016 | 1,035 | 1,038 | |||||||
Washington State Public Power Supply System, Nuclear Project #2, Series A, Pre-refunded 07/01/2006 @ 102 (AMBAC) | |||||||||
5.700%, 07/01/2011 (b) | 1,000 | 1,020 | |||||||
8,021 | |||||||||
General Obligations – 3.4% | |||||||||
Clark County School District #37, Vancouver (FSA) | |||||||||
5.250%, 12/01/2014 | 1,515 | 1,622 | |||||||
King County (AMBAC) | |||||||||
5.000%, 12/01/2012 | 2,000 | 2,099 | |||||||
King County, Series B, Pre-refunded 12/01/2007 @ 102 | |||||||||
5.850%, 12/01/2013 (b) | 3,000 | 3,141 | |||||||
Pierce County School District #320, Sumner | |||||||||
6.000%, 12/01/2006 | 130 | 131 | |||||||
Snohomish County, Callable 12/01/2011 @ 100 (MBIA) | |||||||||
5.375%, 12/01/2019 | 5,000 | 5,287 | |||||||
Spokane County School District #081, Convertible CABs, Callable 06/01/2015 @ 100, (MBIA) (SBG) | |||||||||
0.000% through 12/01/2008, | |||||||||
thereafter 5.000%, 06/01/2016 | 1,000 | 918 | |||||||
Spokane County School District #356, Central Valley, Series B, Zero Coupon Bond (FGIC) | |||||||||
3.030%, 12/01/2014 (c) | 5,690 | 3,900 |
The accompanying notes are an integral part of the financial statements.
70 First American Funds Annual Report 2006
Table of Contents
Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Washington State, Series C | |||||||||
5.500%, 07/01/2014 | $ | 2,275 | $ | 2,469 | |||||
Washington State, Series S-5, Zero Coupon Bond (FGIC) | |||||||||
5.830%, 01/01/2016 (c) | 3,000 | 1,936 | |||||||
21,503 | |||||||||
29,524 | |||||||||
West Virginia – 0.3% | |||||||||
Revenue Bond – 0.3% | |||||||||
Brooke Pleasants & Tyler Wetzel Counties, Single Family Mortgage, Escrowed to Maturity | |||||||||
7.400%, 08/15/2010 (a) | 1,675 | 1,888 | |||||||
Wisconsin – 2.4% | |||||||||
Revenue Bonds – 2.1% | |||||||||
Franklin Solid Waste Disposal Revenue, Waste Management Wisconsin, Series A, Mandatory Put 05/01/2016 @ 100 (AMT) | |||||||||
4.950%, 11/01/2016 | 2,000 | 1,988 | |||||||
Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Series A, Callable 02/15/2009 @ 101 | |||||||||
5.500%, 02/15/2020 | 1,500 | 1,543 | |||||||
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project, Callable 12/01/2011 @ 100 | |||||||||
5.750%, 12/01/2019 | 2,000 | 2,007 | |||||||
Wisconsin State Health & Educational Facilities Authority, Fort Healthcare Income Project, Callable 05/01/2014 @ 100 | |||||||||
5.375%, 05/01/2018 | 1,250 | 1,298 | |||||||
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B | |||||||||
6.250%, 02/15/2009 | 500 | 524 | |||||||
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/2012 @ 100 | |||||||||
5.500%, 02/15/2013 | 850 | 888 | |||||||
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/2014 @ 100 | |||||||||
6.125%, 04/01/2024 | 1,500 | 1,523 | |||||||
Wisconsin State Health & Educational Facilities Authority, Vernon Memorial Healthcare Project | |||||||||
4.650%, 03/01/2015 | 1,150 | 1,124 | |||||||
Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services | |||||||||
5.750%, 08/15/2011 | 645 | 690 | |||||||
Wisconsin State Health & Educational Facilities Authority, Wisconsin Medical College, Callable 12/01/2014 @ 100 | |||||||||
5.000%, 12/01/2015 | 1,450 | 1,518 | |||||||
13,103 | |||||||||
General Obligation – 0.3% | |||||||||
Door County, Series A, Crossover Refunded 09/01/2011 @ 100 (FGIC) | |||||||||
5.125%, 09/01/2016 (f) | 1,720 | 1,797 | |||||||
14,900 | |||||||||
Wyoming – 0.3% | |||||||||
Revenue Bond – 0.3% | |||||||||
Lincoln County, Pacificorp Project, Mandatory Put 06/03/2012 @ 100 (AMT) | |||||||||
4.125%, 11/01/2025 | 2,250 | 2,188 | |||||||
Total Municipal Bonds (Cost $602,792) | 620,778 | ||||||||
Short-Term Investment – 0.3% | |||||||||
First American Tax Free Obligations Fund, Class Z (g) | |||||||||
(Cost $1,982) | 1,981,820 | 1,982 | |||||||
Total Investments – 99.0% (Cost $604,774) | 622,760 | ||||||||
Other Assets and Liabilities, Net – 1.0% | 6,067 | ||||||||
Total Net Assets – 100.0% | $ | 628,827 | |||||||
(a) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(b) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(c) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(d) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,815 or 0.3% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | Security sold within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the funds’ board of directors. As of June 30, 2006, the value of these investments was $4,334 or 0.7% of total net assets. |
(f) | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
(g) | 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. |
ACA – American Capital Access
AGTY – Assured Guaranty
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $29,338, which represents 4.7% of total net assets. |
CIFG – CDC IXIS Financial Guaranty
CMI – California Mortgage Insurance Program
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FGIC – Financial Guaranty Insurance Corporation
FHA – Federal Housing Authority
FHLMC – Federal Home Loan Mortgage Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
GTY – Guaranty
LOC – Letter of Credit
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
MQSBLF – Michigan Qualified School Board Loan Fund Program
MSDCEP – Minnesota School District Credit Enhancement Program
PSFG – Permanent School Fund Guarantee
RAAI – Radian Asset Assurance Inc.
SBG – School Board Guaranty
STAID – State Aid Withholding
VA – Veterans Administration
XLCA – XL Capital Assurance Inc.
First American Funds Annual Report 2006 71
Table of Contents
Schedule of Investments continued
Minnesota Intermediate Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 98.2% | |||||||||
Revenue Bonds – 64.1% | |||||||||
Economic Development – 2.0% | |||||||||
Minneapolis Community Development Agency, Series G-3, Pre-refunded 12/01/2011 @ 100 | |||||||||
5.350%, 12/01/2021 (a) | $ | 1,000 | $ | 1,064 | |||||
Minneapolis Development Revenue, Common Bond, Series 1A (AMT) | |||||||||
4.550%, 12/01/2013 | 480 | 477 | |||||||
4.625%, 12/01/2014 | 505 | 502 | |||||||
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B (AMT) | |||||||||
6.500%, 08/01/2008 | 1,030 | 1,064 | |||||||
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series C (AMT) | |||||||||
6.625%, 08/01/2008 | 940 | 974 | |||||||
4,081 | |||||||||
Education – 9.5% | |||||||||
Minneapolis, The Blake School Project, Callable 09/01/2011 @ 100 | |||||||||
5.000%, 09/01/2012 | 445 | 459 | |||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4 | |||||||||
4.850%, 10/01/2009 | 520 | 528 | |||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4, Callable 10/01/2009 @ 100 | |||||||||
5.000%, 10/01/2011 | 500 | 508 | |||||||
5.000%, 10/01/2012 | 500 | 507 | |||||||
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 6-C, Callable 05/01/2014 @ 100 | |||||||||
4.750%, 05/01/2018 | 1,075 | 1,069 | |||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K | |||||||||
5.000%, 05/01/2013 (b) | 310 | 319 | |||||||
5.000%, 05/01/2014 (b) | 320 | 328 | |||||||
5.000%, 05/01/2015 (b) | 340 | 349 | |||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable 05/01/2015 @ 100 | |||||||||
5.000%, 05/01/2016 (b) | 355 | 363 | |||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable 05/15/2015 @ 100 | |||||||||
5.000%, 05/01/2017 (b) | 370 | 377 | |||||||
Minnesota State Higher Education Facilities Authority, Minneapolis College of Art and Design, Series 5-K | |||||||||
5.000%, 05/01/2011 | 250 | 254 | |||||||
Minnesota State Higher Education Facilities Authority, St. Benedict College, Callable 03/01/2007 @ 100 | |||||||||
4.875%, 03/01/2008 | 1,000 | 1,004 | |||||||
5.100%, 03/01/2011 | 2,885 | 2,894 | |||||||
Minnesota State Higher Education Facilities Authority, St. Benedict College, Series 5-W | |||||||||
4.200%, 03/01/2012 | 345 | 343 | |||||||
Minnesota State Higher Education Facilities Authority, St. Catherine College, Series 5-N1, Callable 10/01/2012 @ 100 | |||||||||
5.250%, 10/01/2022 | 1,500 | 1,531 | |||||||
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 5-I, Escrowed to Maturity (MBIA) | |||||||||
5.000%, 10/01/2011 (c) | 255 | 267 | |||||||
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 5-I, Pre-refunded 10/01/2011 @ 100 (MBIA) | |||||||||
5.000%, 10/01/2012 (a) | 480 | 502 | |||||||
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 6-G, Callable 10/01/2015 @ 100 | |||||||||
4.000%, 10/01/2016 | 1,000 | 961 | |||||||
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Callable 10/01/2014 @ 100 | |||||||||
5.250%, 10/01/2019 | 530 | 555 | |||||||
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 4, Pre-refunded 04/01/2008 @ 100 | |||||||||
5.250%, 04/01/2012 (a) | 385 | 394 | |||||||
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 6-I | |||||||||
4.000%, 04/01/2014 | 1,045 | 1,024 | |||||||
Moorhead Educational Facilities, Concordia College, Series A | |||||||||
4.100%, 12/15/2014 | 845 | 830 | |||||||
4.200%, 12/15/2015 | 880 | 867 | |||||||
Moorhead Educational Facilities, Concordia College, Series A, Callable 12/15/2015 @ 100 | |||||||||
4.300%, 12/15/2016 | 925 | 913 | |||||||
5.000%, 12/15/2018 | 1,005 | 1,041 | |||||||
5.000%, 12/15/2019 | 1,060 | 1,095 | |||||||
19,282 | |||||||||
Healthcare – 22.9% | |||||||||
Bemidji Health Care Facilities, North Country Health Services | |||||||||
4.125%, 09/01/2013 | 300 | 294 | |||||||
4.250%, 09/01/2014 | 485 | 477 | |||||||
4.250%, 09/01/2015 | 500 | 488 | |||||||
Bemidji Health Care Facilities, North Country Health Services, Callable 09/01/2016 @ 100 | |||||||||
5.000%, 09/01/2017 | 500 | 514 | |||||||
5.000%, 09/01/2018 | 1,050 | 1,076 | |||||||
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101 | |||||||||
5.000%, 06/01/2016 | 425 | 429 | |||||||
5.000%, 06/01/2019 | 1,320 | 1,317 | |||||||
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102 | |||||||||
5.500%, 06/01/2010 | 435 | 444 | |||||||
5.650%, 06/01/2012 | 940 | 960 | |||||||
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100 | |||||||||
5.375%, 02/15/2022 | 2,045 | 2,112 | |||||||
Glencoe Health Care Facilities, Pre-refunded 04/01/2011 @ 101 | |||||||||
7.400%, 04/01/2021 (a) | 1,000 | 1,136 | |||||||
Glencoe Health Care Facilities, Regional Health Services Project | |||||||||
5.000%, 04/01/2013 | 760 | 778 |
The accompanying notes are an integral part of the financial statements.
72 First American Funds Annual Report 2006
Table of Contents
Minnesota Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Glencoe Health Care Facilities, Regional Health Services Project, Callable 04/01/2013 @ 101 | |||||||||
5.000%, 04/01/2014 | $ | 800 | $ | 820 | |||||
5.000%, 04/01/2015 | 845 | 864 | |||||||
5.000%, 04/01/2017 | 1,815 | 1,842 | |||||||
Hastings Health Care Facility, Regina Medical Center, Callable 09/15/2008 @ 100 (ACA) | |||||||||
5.000%, 09/15/2013 | 500 | 504 | |||||||
Maple Grove Health Care Facilities, North Memorial, Callable 09/01/2015 @ 100 | |||||||||
4.500%, 09/01/2017 | 1,730 | 1,698 | |||||||
Minneapolis & St. Paul Housing & Redevelopment Authority, Healthspan, Series A, Callable until 11/14/2013 @ 100 (AMBAC) | |||||||||
5.000%, 11/15/2013 | 1,000 | 1,001 | |||||||
Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/2012 @ 100 | |||||||||
6.000%, 11/15/2023 | 2,500 | 2,677 | |||||||
5.750%, 11/15/2032 | 1,300 | 1,368 | |||||||
Minneapolis Healthcare System, Fairview Health Services, Series A, Escrowed to Maturity | |||||||||
5.000%, 05/15/2012 (c) | 605 | 634 | |||||||
Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A (MBIA) | |||||||||
5.000%, 02/15/2010 | 3,815 | 3,942 | |||||||
Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project | |||||||||
5.500%, 02/01/2011 | 280 | 291 | |||||||
5.500%, 02/01/2012 | 200 | 209 | |||||||
Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project, Callable 02/01/2012 @ 101 | |||||||||
5.500%, 02/01/2015 | 730 | 759 | |||||||
Minnesota Agricultural & Economic Development Board, Healthcare Systems, Series A, Callable 11/15/2007 @ 102 (MBIA) | |||||||||
5.500%, 11/15/2017 | 305 | 317 | |||||||
5.750%, 11/15/2026 | 10 | 10 | |||||||
Minnesota Agricultural & Economic Development Board, Healthcare Systems, Series A, Pre-refunded 11/15/2007 @ 102 (MBIA) | |||||||||
5.750%, 11/15/2026 (a) | 490 | 512 | |||||||
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100 | |||||||||
5.750%, 12/01/2015 | 2,320 | 2,375 | |||||||
Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable until 05/31/2016 @ 100 | |||||||||
5.750%, 06/01/2016 | 1,360 | 1,360 | |||||||
New Hope Housing & Health Care Facilities, Masonic Home North Ridge | |||||||||
5.300%, 03/01/2007 | 685 | 688 | |||||||
New Hope Housing & Health Care Facilities, Masonic Home North Ridge, Callable 03/01/2009 @ 102 | |||||||||
5.500%, 03/01/2010 | 500 | 509 | |||||||
Plymouth Health Facilities, Westhealth Project, Series A, Callable until 05/31/2011 @ 100 (FSA) | |||||||||
6.200%, 06/01/2011 | 1,360 | 1,362 | |||||||
Rochester, St. Mary’s Hospital, Escrowed to Maturity, Callable 10/01/2006 @ 100 | |||||||||
5.750%, 10/01/2007 (c) | 555 | 561 | |||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center | |||||||||
4.000%, 09/01/2012 | 305 | 299 | |||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100 | |||||||||
5.000%, 09/01/2017 | 1,785 | 1,816 | |||||||
St. Cloud Health Care, St. Cloud Hospital Obligated Group (FSA) | |||||||||
5.500%, 05/01/2008 | 1,450 | 1,491 | |||||||
St. Paul Housing & Redevelopment Authority, HealthEast Project, Callable 11/15/2015 @ 100 | |||||||||
5.150%, 11/15/2020 | 1,790 | 1,770 | |||||||
St. Paul Port Authority, HealthEast Midway Campus, Series A (MLO) | |||||||||
5.250%, 05/01/2015 | 1,500 | 1,498 | |||||||
St. Paul Port Authority, HealthEast Midway Campus, Series A, Callable 05/01/2015 @ 100 (MLO) | |||||||||
5.750%, 05/01/2025 | 2,000 | 2,025 | |||||||
Stillwater Health Care, Health Systems Obligation Group | |||||||||
4.250%, 06/01/2015 | 300 | 291 | |||||||
Stillwater Health Care, Health Systems Obligation Group, Callable 06/01/2015 @ 100 | |||||||||
4.250%, 06/01/2016 | 760 | 725 | |||||||
Todd, Morrison, Cass & Wadena Counties, United Hospital District | |||||||||
4.250%, 12/01/2012 | 425 | 420 | |||||||
4.000%, 12/01/2013 | 400 | 387 | |||||||
Winona Health Care Facilities, Series A, Callable 07/01/2012 @ 102 | |||||||||
5.300%, 07/01/2017 | 525 | 538 | |||||||
5.350%, 07/01/2018 | 590 | 605 | |||||||
46,193 | |||||||||
Housing – 1.4% | |||||||||
Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 10/01/2007 @ 101.50 (AMT) (FNMA) (GNMA) | |||||||||
5.125%, 10/01/2020 | 80 | 80 | |||||||
Minneapolis Mortgage Revenue, Convertible CABs, Callable until 09/30/2012 @ 100 | |||||||||
7.000%, 10/01/2012 | 59 | 30 | |||||||
Minnesota State Housing Finance Agency, Rental Housing, Series D, Callable until 01/31/2007 @ 101 (MBIA) | |||||||||
5.450%, 08/01/2007 | 245 | 246 | |||||||
Minnesota State Housing Finance Agency, Single Family Mortgages, Series B, Callable 07/01/2009 @ 100 (AMT) | |||||||||
5.550%, 07/01/2024 | 425 | 431 | |||||||
Moorhead Senior Housing Revenue, Sheyenne Crossing Project, Callable 04/01/2014 @ 101 | |||||||||
5.600%, 04/01/2025 | 2,000 | 1,981 |
First American Funds Annual Report 2006 73
Table of Contents
Schedule of Investments continued
Minnesota Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
South St. Paul Housing & Redevelopment Authority, Single Family Mortgages, Callable until 08/31/2007 @ 100 (FNMA) | |||||||||
5.100%, 09/01/2007 | $ | 25 | $ | 25 | |||||
2,793 | |||||||||
Lease Revenue – 3.9% | |||||||||
Andover Economic Development Authority, Andover Community Center, Callable 02/01/2014 @ 100 (MLO) | |||||||||
5.000%, 02/01/2019 | 1,225 | 1,254 | |||||||
Eden Prairie Housing & Redevelopment Authority, Series A, Callable 12/01/2010 @ 100 (MLO) | |||||||||
5.000%, 12/01/2011 | 255 | 266 | |||||||
Pine County Housing & Redevelopment Authority, Series A (MLO) | |||||||||
4.500%, 02/01/2015 | 440 | 437 | |||||||
4.500%, 02/01/2016 | 465 | 457 | |||||||
Pine County Housing & Redevelopment Authority, Series A, Callable 02/01/2016 @ 100 (MLO) | |||||||||
4.500%, 02/01/2017 | 385 | 375 | |||||||
St. Paul Housing & Redevelopment Authority, Smith Avenue Transit Center, Callable 06/01/2010 @ 100 (MLO) | |||||||||
4.000%, 06/01/2012 | 1,500 | 1,488 | |||||||
St. Paul Port Authority, Office Building, Callable 12/01/2012 @ 100 (MLO) | |||||||||
5.000%, 12/01/2019 | 2,415 | 2,494 | |||||||
St. Paul Recreational Facilities, Highland National (MLO) | |||||||||
4.000%, 10/01/2015 | 115 | 112 | |||||||
St. Paul Recreational Facilities, Highland National, Callable 10/01/2015 @ 100 (MLO) | |||||||||
5.000%, 10/01/2020 | 1,000 | 1,031 | |||||||
7,914 | |||||||||
Miscellaneous – 1.0% | |||||||||
Minnesota State Retirement Systems Building, Callable 06/01/2010 @ 100 | |||||||||
5.450%, 06/01/2012 | 550 | 578 | |||||||
Seaway Port Authority of Duluth, Cargill Income Project | |||||||||
4.200%, 05/01/2013 | 1,500 | 1,479 | |||||||
2,057 | |||||||||
Recreational Facility Authority – 1.4% | |||||||||
St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Escrowed to Maturity | |||||||||
6.700%, 08/01/2007 (c) | 960 | 975 | |||||||
St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103 | |||||||||
6.875%, 08/01/2010 (a) | 1,685 | 1,816 | |||||||
2,791 | |||||||||
Revolving Funds – 1.3% | |||||||||
Minnesota Public Facilities Authority, Drinking Water, Series B, Pre-refunded 03/01/2009 @ 100 | |||||||||
5.125%, 03/01/2019 (a) | 2,000 | 2,064 | |||||||
Minnesota Public Facilities Authority, Water Pollution Control, Callable 03/01/2007 @ 100 | |||||||||
5.000%, 03/01/2009 | 590 | 594 | |||||||
2,658 | |||||||||
Tax Revenue – 2.1% | |||||||||
Childrens Trust Fund, Puerto Rico, Tobacco Settlement | |||||||||
4.000%, 05/15/2012 | 500 | 484 | |||||||
Minneapolis, St. Anthony Falls Project, Callable 02/01/2014 @ 100 | |||||||||
5.300%, 02/01/2021 | 570 | 564 | |||||||
Minneapolis, St. Anthony Falls Project, Callable 03/01/2012 @ 102 | |||||||||
5.000%, 02/01/2017 | 1,040 | 1,014 | |||||||
St. Paul Port Authority, Energy Park, Tax Increment, Escrowed to Maturity (FSA) | |||||||||
5.000%, 02/01/2008 (c) | 2,100 | 2,122 | |||||||
4,184 | |||||||||
Transportation – 5.9% | |||||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/2013 @ 100 (MBIA) | |||||||||
5.000%, 01/01/2020 | 2,200 | 2,266 | |||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC) | |||||||||
5.750%, 01/01/2010 | 2,880 | 3,033 | |||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2009 @ 101 (AMT) (FGIC) | |||||||||
5.625%, 01/01/2014 | 1,000 | 1,039 | |||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series C, Callable 01/01/2011 @ 100 (FGIC) | |||||||||
5.125%, 01/01/2020 | 3,095 | 3,210 | |||||||
Minnesota Public Facilities Authority Transportation, Callable 03/01/2010 @ 100 | |||||||||
5.000%, 03/01/2012 | 970 | 1,001 | |||||||
Puerto Rico Commonwealth, Highway Transportation Authority, Series X (MBIA) | |||||||||
5.500%, 07/01/2013 | 1,250 | 1,346 | |||||||
11,895 | |||||||||
Utilities – 12.7% | |||||||||
Chaska Electric, Series A | |||||||||
5.600%, 10/01/2008 | 680 | 703 | |||||||
5.650%, 10/01/2009 | 720 | 753 | |||||||
5.650%, 10/01/2010 | 760 | 804 | |||||||
4.000%, 10/01/2012 | 500 | 492 | |||||||
4.200%, 10/01/2015 | 1,000 | 977 | |||||||
Cohasset Pollution Control, Allete Project, Callable 07/01/2014 @ 100 (RAAI) | |||||||||
4.950%, 07/01/2022 | 2,230 | 2,227 | |||||||
Northern Minnesota Municipal Power Agency, Electric System (FSA) | |||||||||
5.500%, 01/01/2008 | 2,090 | 2,141 | |||||||
Princeton Public Utility System, Callable 04/01/2012 @ 100 | |||||||||
4.100%, 04/01/2015 | 450 | 437 | |||||||
Rochester Electric Utility, Callable 12/01/2010 @ 100 | |||||||||
5.000%, 12/01/2016 | 1,150 | 1,177 |
The accompanying notes are an integral part of the financial statements.
74 First American Funds Annual Report 2006
Table of Contents
Minnesota Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Southern Minnesota Municipal Power Agency, Series A (AMBAC) | |||||||||
5.250%, 01/01/2014 | $ | 3,415 | $ | 3,653 | |||||
Southern Minnesota Municipal Power Agency, Series A, Callable 01/01/2009 @ 101 (AMBAC) | |||||||||
5.000%, 01/01/2011 | 1,270 | 1,312 | |||||||
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) | |||||||||
5.257%, 01/01/2020 (d) | 3,500 | 1,840 | |||||||
5.275%, 01/01/2021 (d) | 5,000 | 2,495 | |||||||
Western Minnesota Municipal Power Agency, Series A, Callable 01/01/2011 @ 100 (AMBAC) | |||||||||
5.500%, 01/01/2012 | 1,360 | 1,443 | |||||||
Western Minnesota Municipal Power Agency, Series A, Callable until 12/31/2006 @ 102 (AMBAC) | |||||||||
5.500%, 01/01/2011 | 5,000 | 5,166 | |||||||
25,620 | |||||||||
Total Revenue Bonds | 129,468 | ||||||||
General Obligations – 33.6% | |||||||||
Anoka County Capital Improvements, Series B | |||||||||
4.550%, 01/01/2011 | 1,960 | 2,003 | |||||||
Anoka-Hennepin Independent School District #11, Callable 02/01/2011 @ 100 (MSDCEP) | |||||||||
5.000%, 02/01/2014 | 2,000 | 2,078 | |||||||
Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/2011 @ 100 (MSDCEP) | |||||||||
5.000%, 02/01/2012 | 1,000 | 1,041 | |||||||
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP) | |||||||||
5.375%, 02/01/2013 (e) | 600 | 629 | |||||||
Bloomington Independent School District #271, Series B, Crossover Refunded 02/01/2010 @ 100 (MSDCEP) | |||||||||
5.250%, 02/01/2011 (e) | 1,000 | 1,041 | |||||||
Brooklyn Center Independent School District #286, Series A, Callable 02/01/2016 @ 100 (MBIA) (MSDCEP) | |||||||||
4.250%, 02/01/2017 | 510 | 505 | |||||||
Buffalo Independent School District #877, Series B (FSA) (MSDCEP) | |||||||||
4.500%, 02/01/2013 | 325 | 334 | |||||||
Cambridge Independent School District #911, Series A, Callable 02/01/2015 @ 100 (MSDCEP) | |||||||||
4.000%, 02/01/2016 | 1,060 | 1,037 | |||||||
Cambridge Independent School District #911, Series B, Zero Coupon Bond, Callable 02/01/2018 @ 86.965 (MBIA) (MSDCEP) | |||||||||
4.710%, 02/01/2021 (d) | 645 | 307 | |||||||
Centennial Independent School District #12, Series A, Callable 02/01/2012 @ 100 (FSA) (MSDCEP) | |||||||||
5.000%, 02/01/2014 | 1,040 | 1,086 | |||||||
Crow Wing County, Series A (MBIA) | |||||||||
4.500%, 02/01/2014 | 1,480 | 1,519 | |||||||
Dakota County, Capital Improvements, Series C | |||||||||
4.850%, 02/01/2010 | 1,000 | 1,033 | |||||||
Delano Independent School District #879, Callable 02/01/2015 @ 100 (FSA) (MSDCEP) | |||||||||
4.250%, 02/01/2019 | 900 | 880 | |||||||
Farmington Independent School District #192, Callable 06/01/2013 @ 100 (MBIA) (MSDCEP) | |||||||||
4.000%, 06/01/2016 | 1,000 | 977 | |||||||
Howard Lake, Waverly & Winsted School District #2687, School Building, Series A (FSA) (MSDCEP) | |||||||||
4.000%, 02/01/2013 | 705 | 702 | |||||||
Lakeville Independent School District #194, Callable 02/01/2009 @ 100 (MSDCEP) | |||||||||
5.000%, 02/01/2016 | 2,000 | 2,046 | |||||||
Lakeville Independent School District #194, Series A, Callable 02/01/2013 @ 100 (FGIC) (MSDCEP) | |||||||||
5.000%, 02/01/2022 | 2,435 | 2,501 | |||||||
Lakeville Independent School District #194, Series A, Crossover Refunded 02/01/2008 @ 100 (MSDCEP) | |||||||||
5.125%, 02/01/2022 (e) | 1,000 | 1,018 | |||||||
Minneapolis & St. Paul Metropolitan Council, Waste Water Treatment, Series A, Callable 03/01/2011 @ 100 | |||||||||
5.000%, 03/01/2013 | 1,890 | 2,000 | |||||||
Monticello, Series A, Callable 02/01/2013 @ 100 (FSA) | |||||||||
4.000%, 02/01/2014 | 500 | 495 | |||||||
Moorhead Independent School District #152 (MSDCEP) | |||||||||
5.000%, 04/01/2012 | 1,220 | 1,281 | |||||||
Moorhead Independent School District #152, Callable 04/01/2014 @ 100 (MSDCEP) | |||||||||
4.000%, 04/01/2015 | 1,100 | 1,083 | |||||||
Moorhead Independent School District #152, Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP) | |||||||||
5.000%, 04/01/2015 (e) | 3,450 | 3,598 | |||||||
5.000%, 04/01/2016 (e) | 2,510 | 2,618 | |||||||
Mounds View Independent School District #621, Series A (MSDCEP) | |||||||||
5.250%, 02/01/2010 | 1,230 | 1,286 | |||||||
Mounds View Independent School District #621, Series A, Callable 02/01/2012 @ 100 (MBIA) (MSDCEP) | |||||||||
5.000%, 02/01/2018 | 2,340 | 2,423 | |||||||
5.000%, 02/01/2019 | 2,565 | 2,650 | |||||||
Mounds View Independent School District #621, Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP) | |||||||||
5.250%, 02/01/2012 (e) | 1,000 | 1,048 | |||||||
5.350%, 02/01/2016 (e) | 1,000 | 1,053 | |||||||
Northfield Independent School District #659, Callable 02/01/2011 @ 100 (MSDCEP) | |||||||||
4.600%, 02/01/2013 | 1,100 | 1,126 | |||||||
5.000%, 02/01/2015 | 1,295 | 1,348 | |||||||
Pequot Lakes Independent School District #186, Callable 02/01/2012 @ 100 (FGIC) (MSDCEP) | |||||||||
5.125%, 02/01/2018 | 500 | 522 | |||||||
Perham, Callable 05/01/2011 @ 100 (AMT) | |||||||||
5.850%, 05/01/2015 | 1,205 | 1,245 | |||||||
Pipestone-Jasper Independent School District #2689, Crossover Refunded 03/01/2009 @ 100 (FGIC) (MSDCEP) | |||||||||
5.400%, 03/01/2013 (e) | 1,095 | 1,137 | |||||||
Puerto Rico Commonwealth (MBIA) | |||||||||
6.000%, 07/01/2014 | 1,605 | 1,804 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 1,000 | 1,029 |
First American Funds Annual Report 2006 75
Table of Contents
Schedule of Investments continued
Minnesota Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Puerto Rico Commonwealth, Series A (XLCA) | |||||||||
5.500%, 07/01/2017 | $ | 1,000 | $ | 1,095 | |||||
Ramsey County, Series D | |||||||||
5.000%, 02/01/2014 | 2,000 | 2,124 | |||||||
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2009 @ 100 (MBIA) (MSDCEP) | |||||||||
5.000%, 02/01/2016 (e) | 1,000 | 1,025 | |||||||
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2012 @ 100 (FSA) (MSDCEP) | |||||||||
5.000%, 02/01/2019 (e) | 1,160 | 1,198 | |||||||
5.000%, 02/01/2020 (e) | 1,215 | 1,250 | |||||||
Rochester Independent School District #535, Series A, Callable 02/01/2011 @ 100 (MSDCEP) | |||||||||
5.000%, 02/01/2015 | 1,595 | 1,657 | |||||||
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 89.368 (FSA) (MSDCEP) | |||||||||
5.700%, 02/01/2013 (d) (e) | 1,055 | 781 | |||||||
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 94.63 (FSA) (MSDCEP) | |||||||||
5.753%, 02/01/2012 (d) (e) | 1,790 | 1,404 | |||||||
South Washington County, Independent School District #833, Series B, Callable 02/01/2012 @ 100 (FSA) (MSDCEP) | |||||||||
5.000%, 02/01/2015 | 1,030 | 1,074 | |||||||
St. Louis Park Independent School District #283, Crossover Refunded 02/01/2009 @ 100 (MSDCEP) | |||||||||
5.250%, 02/01/2010 (e) | 1,500 | 1,549 | |||||||
5.600%, 02/01/2015 (e) | 725 | 752 | |||||||
St. Michael Independent School District #885, Callable 02/01/2012 @ 100 (FSA) (MSDCEP) | |||||||||
5.000%, 02/01/2014 | 1,690 | 1,765 | |||||||
5.000%, 02/01/2017 | 1,000 | 1,036 | |||||||
Stillwater Independent School District #834, Callable 02/01/2009 @ 100 (MSDCEP) | |||||||||
4.750%, 02/01/2011 | 2,140 | 2,182 | |||||||
Stillwater Independent School District #834, Series A, Callable 02/01/2013 @ 100 (FSA) (MSDCEP) | |||||||||
4.500%, 02/01/2015 | 505 | 514 | |||||||
Total General Obligations | 67,889 | ||||||||
Certificate of Participation – 0.5% | |||||||||
Northeast Metropolitan Intermediate School District #916, Callable 01/01/2014 @ 100 (MLO) | |||||||||
4.250%, 01/01/2015 | 1,000 | 979 | |||||||
Total Municipal Bonds (Cost $194,288) | 198,336 | ||||||||
Short-Term Investment – 0.7% | |||||||||
Federated Minnesota Municipal Cash Trust (Cost $1,528) | 1,527,757 | 1,528 | |||||||
Total Investments – 98.9% (Cost $195,816) | 199,864 | ||||||||
Other Assets and Liabilities, Net – 1.1% | 2,147 | ||||||||
Total Net Assets – 100.0% | $ | 202,011 | |||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,736 or 0.9% of total net assets. See note 2 in Notes to Financial Statements. |
(c) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(d) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(e) | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
ACA – American Capital Access
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $8,845, which represents 4.4% of total net assets. |
Convertible CABs – | Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity. |
FGIC – Financial Guaranty Insurance Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
MSDCEP – Minnesota School District Credit Enhancement Program
RAAI – Radian Asset Assurance Inc.
XLCA – XL Capital Assurance Inc.
The accompanying notes are an integral part of the financial statements.
76 First American Funds Annual Report 2006
Table of Contents
Minnesota Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 96.4% | |||||||||
Revenue Bonds – 86.3% | |||||||||
Continuing Care Retirement Community – 1.1% | |||||||||
Golden Valley, Covenant Retirement Communities, Series A, Callable 12/01/2009 @ 101 | |||||||||
5.500%, 12/01/2029 | $ | 1,750 | $ | 1,790 | |||||
Economic Development – 4.8% | |||||||||
Minneapolis Community Development, Series G-3, Pre-refunded 12/01/2011 @ 100 | |||||||||
5.450%, 12/01/2031 (a) | 3,250 | 3,472 | |||||||
Minnesota Agricultural & Economic Development Board, Minnesota Small Business Program, Series A, Callable 08/01/2010 @ 100 (AMT) | |||||||||
5.550%, 08/01/2016 | 500 | 506 | |||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series B, Callable 08/01/2008 @ 102 (AMT) | |||||||||
7.250%, 08/01/2020 | 1,000 | 1,053 | |||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series C, Callable 08/01/2008 @ 102 (AMT) | |||||||||
7.250%, 08/01/2020 | 1,385 | 1,458 | |||||||
Minnesota Agricultural & Economic Development Board, Small Business Development, Series D, Callable 08/01/2008 @ 102 (AMT) | |||||||||
7.250%, 08/01/2020 | 1,120 | 1,179 | |||||||
7,668 | |||||||||
Education – 6.7% | |||||||||
Golden Valley, The Breck School, Callable 10/01/2009 @ 100 | |||||||||
5.750%, 10/01/2014 | 1,000 | 1,046 | |||||||
Minneapolis, The Blake School Project, Callable 09/01/2011 @ 100 | |||||||||
5.450%, 09/01/2021 | 2,000 | 2,072 | |||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 5-D, Callable 05/01/2010 @ 100 | |||||||||
6.625%, 05/01/2020 | 1,000 | 1,063 | |||||||
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable until 05/01/2015 @ 100 | |||||||||
5.000%, 05/01/2026 | 1,750 | 1,753 | |||||||
Minnesota State Higher Education Facilities Authority, St. John University, Series 6-G, Callable 10/01/2015 @ 100 | |||||||||
5.000%, 10/01/2022 | 1,000 | 1,028 | |||||||
4.500%, 10/01/2026 | 1,000 | 955 | |||||||
Minnesota State Higher Education Facilities Authority, Vermilion Community College, Series 3-T, Callable 07/01/2006 @ 100 | |||||||||
6.000%, 01/01/2013 | 470 | 473 | |||||||
Moorhead Educational Facilities, Concordia College, Series A, Callable 12/15/2015 @ 100 | |||||||||
5.000%, 12/15/2021 | 1,070 | 1,098 | |||||||
5.000%, 12/15/2024 | 1,240 | 1,266 | |||||||
10,754 | |||||||||
Healthcare – 28.7% | |||||||||
Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/2006 @ 102 | |||||||||
5.625%, 09/01/2015 | 1,600 | 1,636 | |||||||
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101 | |||||||||
5.500%, 06/01/2035 | 350 | 351 | |||||||
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102 | |||||||||
6.000%, 06/01/2029 | 3,000 | 3,062 | |||||||
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100 | |||||||||
5.250%, 02/15/2028 | 1,000 | 1,019 | |||||||
5.250%, 02/15/2033 | 1,660 | 1,682 | |||||||
Fergus Falls Health Care Facilities Authority, Broen Memorial Home, Series A, Callable until 10/31/2006 @ 101 | |||||||||
7.000%, 11/01/2019 | 1,000 | 1,003 | |||||||
Glencoe Health Care Services Facilities Project, Glencoe Regional Health, Callable 04/01/2013 @ 101 | |||||||||
5.000%, 04/01/2020 | 500 | 503 | |||||||
5.000%, 04/01/2025 | 1,000 | 992 | |||||||
5.000%, 04/01/2031 | 1,500 | 1,471 | |||||||
Glencoe Health Care Services Facilities Project, Glencoe Regional Health, Pre-refunded 04/01/2011 @ 101 | |||||||||
7.500%, 04/01/2031 (a) | 1,700 | 1,939 | |||||||
Maple Grove Health Care Facilities, North Memorial Health Care, Callable 09/01/2015 @ 100 | |||||||||
5.000%, 09/01/2035 | 2,000 | 2,003 | |||||||
Marshall Medical Center, Weiner Memorial Medical Center Project, Series A, Callable 11/01/2013 @ 100 | |||||||||
5.250%, 11/01/2016 | 305 | 315 | |||||||
5.850%, 11/01/2023 | 875 | 926 | |||||||
Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/2012 @ 100 | |||||||||
6.000%, 11/15/2023 | 1,500 | 1,606 | |||||||
5.750%, 11/15/2032 | 2,400 | 2,526 | |||||||
Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A, Callable 02/15/2010 @ 101 (MBIA) | |||||||||
5.250%, 02/15/2015 | 2,000 | 2,079 | |||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/2007 @ 102 (MBIA) | |||||||||
5.500%, 11/15/2011 | 500 | 519 | |||||||
5.500%, 11/15/2017 | 205 | 213 | |||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/2010 @ 101 | |||||||||
6.375%, 11/15/2029 | 125 | 133 | |||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Pre-refunded 11/15/2007 @ 102 (MBIA) | |||||||||
5.500%, 11/15/2017 (a) | 795 | 828 | |||||||
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Pre-refunded 11/15/2010 @ 101 | |||||||||
6.375%, 11/15/2029 (a) | 3,875 | 4,264 | |||||||
Monticello, Big Lake Community Hospital, Series A, Callable 12/01/2009 @ 100 | |||||||||
5.750%, 12/01/2019 | 1,000 | 1,008 | |||||||
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100 | |||||||||
6.200%, 12/01/2022 | 1,000 | 1,027 | |||||||
Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable until 05/31/2029 @ 100 | |||||||||
6.000%, 06/01/2029 | 1,900 | 1,901 |
First American Funds Annual Report 2006 77
Table of Contents
Schedule of Investments continued
Minnesota Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
New Hope Housing & Healthcare Facilities Authority, Masonic Home North Ridge, Callable 03/01/2009 @ 102 | |||||||||
5.750%, 03/01/2015 | $ | 1,600 | $ | 1,636 | |||||
Rochester Health Care Facilities, Mayo Clinic, Callable 05/15/2016 @ 100 | |||||||||
5.000%, 11/15/2031 | 1,000 | 1,016 | |||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100 | |||||||||
5.250%, 09/01/2034 | 2,000 | 2,029 | |||||||
St. Louis Park Health Care Facilities, Park Nicollet Health Services, Series B, Callable 07/01/2014 @ 100 | |||||||||
5.500%, 07/01/2025 | 2,000 | 2,086 | |||||||
St. Paul Housing & Redevelopment Authority, HealthEast Project, Callable 11/15/2015 @ 100 | |||||||||
6.000%, 11/15/2030 | 800 | 854 | |||||||
St. Paul Housing & Redevelopment Authority, Regions Hospital, Callable 05/15/2009 @ 100 | |||||||||
5.250%, 05/15/2018 | 500 | 505 | |||||||
St. Paul Port Authority, HealthEast Midway Campus, Series A, Callable 05/01/2015 @ 100 (MLO) | |||||||||
5.875%, 05/01/2030 | 900 | 908 | |||||||
St. Paul Port Authority, HealthEast Midway Campus, Series B, Callable 05/01/2015 @ 100 (MLO) | |||||||||
6.000%, 05/01/2030 | 1,800 | 1,820 | |||||||
Stillwater Health Care, Health Systems Obligation Group, Callable 06/01/2015 @ 100 | |||||||||
5.000%, 06/01/2035 | 1,000 | 1,001 | |||||||
Winona Health Care Facilities, Series A, Callable 07/01/2012 @ 102 | |||||||||
6.000%, 07/01/2034 | 1,000 | 1,059 | |||||||
45,920 | |||||||||
Housing – 12.3% | |||||||||
Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project, Callable 04/20/2011 @ 102 (GNMA) | |||||||||
5.900%, 04/20/2042 | 2,000 | 2,104 | |||||||
Eden Prairie Multifamily Housing, Parkway Apartments Project, Series A, Callable 02/20/2007 @ 104 | |||||||||
5.700%, 08/20/2022 | 1,000 | 1,035 | |||||||
Eden Prairie Multifamily Housing, Preserve Place, Callable 01/20/2008 @ 102 (GNMA) | |||||||||
5.500%, 01/20/2018 | 500 | 512 | |||||||
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/2006 @ 102.50, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA) | |||||||||
3.050%, 06/15/2034 | 2,000 | 1,935 | |||||||
Hopkins Elderly Housing, St. Theresa Project, Series A, Callable 11/20/2007 @ 102 (GNMA) | |||||||||
5.600%, 11/20/2017 | 500 | 513 | |||||||
Hopkins Multifamily Housing, Renaissance Project, Callable 04/01/2007 @ 102 | |||||||||
6.250%, 04/01/2015 | 500 | 517 | |||||||
Maplewood Multifamily Housing, Carefree Cottages II, Callable 04/15/2014 @ 100 (AMT) (FNMA) | |||||||||
4.800%, 04/15/2034 | 2,000 | 1,968 | |||||||
Minnesota State Housing Finance Agency, Rental Housing, Series A, Callable 08/01/2011 @ 100 | |||||||||
3.850%, 02/01/2013 | 1,430 | 1,405 | |||||||
Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/2011 @ 100 (AMT) | |||||||||
5.650%, 07/01/2033 | 835 | 855 | |||||||
Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/2015 @ 100 (AMT) | |||||||||
4.750%, 07/01/2026 | 1,000 | 977 | |||||||
Minnesota State Housing Finance Agency, Residential Housing, Series B1-RMK, Callable 07/01/2011 @ 100 (AMT) | |||||||||
5.350%, 07/01/2033 | 1,385 | 1,402 | |||||||
Minnesota State Housing Finance Agency, Residential Housing, Series F, Callable 07/01/2011 @ 100 (AMT) | |||||||||
5.400%, 07/01/2030 | 2,395 | 2,434 | |||||||
Minnesota State Housing Finance Agency, Single Family Mortgage, Series C, Callable 07/01/2009 @ 100 (AMT) | |||||||||
6.100%, 07/01/2030 | 420 | 423 | |||||||
Moorhead Senior Housing Revenue, Sheyenne Crossing Project, Callable 04/01/2014 @ 101 | |||||||||
5.650%, 04/01/2041 | 1,620 | 1,570 | |||||||
Pine City Health Care & Housing Revenue, North Branch, Series A, Callable 04/20/2014 @ 100 (GNMA) | |||||||||
5.000%, 10/20/2047 | 550 | 554 | |||||||
St. Louis Park, Multifamily Housing, Park Ridge Apartments, Callable 11/01/2008 @ 102 (FHA) (GNMA) | |||||||||
5.250%, 11/01/2020 | 500 | 511 | |||||||
White Bear Lake, Multifamily Housing, Lake Square, Series A, Callable 02/01/2007 @ 102 (FHA) | |||||||||
6.000%, 08/01/2020 | 1,020 | 1,045 | |||||||
19,760 | |||||||||
Lease Revenue – 4.5% | |||||||||
New Brighton Economic Development Authority, Public Safety Facility, Leasing Project, Series A, Callable 02/01/2010 @ 100 (MLO) | |||||||||
4.900%, 02/01/2015 | 850 | 864 | |||||||
5.000%, 02/01/2016 | 895 | 911 | |||||||
5.100%, 02/01/2017 | 900 | 917 | |||||||
Pine County Housing & Redevelopment Authority, Series A, Callable 02/01/2016 @ 100 (MLO) | |||||||||
5.000%, 02/01/2028 | 1,000 | 993 | |||||||
5.000%, 02/01/2031 | 1,890 | 1,861 | |||||||
St. Paul Port Authority, Office Building at Robert St.-3-11 (MLO) | |||||||||
4.000%, 12/01/2013 | 1,695 | 1,672 | |||||||
7,218 | |||||||||
The accompanying notes are an integral part of the financial statements.
78 First American Funds Annual Report 2006
Table of Contents
Minnesota Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Miscellaneous – 6.0% | |||||||||
Little Canada Commercial Development, RLF Minnesota Project, Callable 10/01/2006 @ 100 (MLO) | |||||||||
5.000%, 04/01/2013 | $ | 1,040 | $ | 1,042 | |||||
Minnesota State Retirement Systems Building, Callable 06/01/2010 @ 100 | |||||||||
5.875%, 06/01/2027 | 7,000 | 7,445 | |||||||
Seaway Port Authority of Duluth, Cargill Income Project | |||||||||
4.200%, 05/01/2013 | 1,130 | 1,114 | |||||||
9,601 | |||||||||
Recreational Facility Authority – 2.6% | |||||||||
Moorhead, Golf Course, Series B, Callable 12/01/2008 @ 100 | |||||||||
5.875%, 12/01/2021 | 2,000 | 2,023 | |||||||
St. Paul Port Authority, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103 | |||||||||
7.375%, 08/01/2029 (a) | 2,000 | 2,191 | |||||||
4,214 | |||||||||
Tax Revenue – 0.5% | |||||||||
Duluth Economic Development Authority | |||||||||
8.000%, 08/01/2008 | 140 | 148 | |||||||
Minneapolis, St. Anthony Falls Project, Callable 02/01/2014 @ 100 | |||||||||
5.650%, 02/01/2027 | 400 | 396 | |||||||
Minneapolis, St. Anthony Falls Project, Callable 03/01/2012 @ 102 | |||||||||
5.750%, 02/01/2027 | 300 | 300 | |||||||
844 | |||||||||
Transportation – 2.7% | |||||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Pre-refunded 01/01/2010 @ 101 (FGIC) | |||||||||
5.750%, 01/01/2032 (a) | 3,000 | 3,205 | |||||||
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2015 @ 100 (AMBAC) (AMT) | |||||||||
5.000%, 01/01/2019 | 1,000 | 1,027 | |||||||
4,232 | |||||||||
Utilities – 16.4% | |||||||||
Chaska Electric, Series A, Callable 10/01/2010 @ 100 | |||||||||
6.100%, 10/01/2030 | 45 | 48 | |||||||
Chaska Electric, Series A, Pre-refunded 10/01/2010 @ 100 | |||||||||
6.100%, 10/01/2030 (a) | 4,955 | 5,368 | |||||||
Minnesota Municipal Power Agency, Electricity Revenue, Callable 10/01/2015 @ 100 | |||||||||
5.000%, 10/01/2035 | 1,500 | 1,502 | |||||||
Puerto Rico Electric Power Authority, Series SS, Callable until 06/30/2024 @ 100 (MBIA) | |||||||||
5.000%, 07/01/2024 | 2,000 | 2,069 | |||||||
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA) | |||||||||
6.650%, 01/01/2019 (b) | 4,000 | 2,219 | |||||||
6.700%, 01/01/2024 (b) | 12,000 | 5,143 | |||||||
5.800%, 01/01/2025 (b) | 7,000 | 2,858 | |||||||
5.600%, 01/01/2026 (b) | 8,300 | 3,211 | |||||||
5.151%, 01/01/2027 (b) | 3,000 | 1,103 | |||||||
Western Minnesota Municipal Power Agency, Callable 01/01/2011 @ 100 (AMBAC) | |||||||||
5.500%, 01/01/2014 | 1,545 | 1,636 | |||||||
5.500%, 01/01/2015 | 550 | 582 | |||||||
Western Minnesota Municipal Power Agency, Escrowed to Maturity, Callable until 12/31/2015 @ 100 (MBIA) | |||||||||
9.750%, 01/01/2016 (c) | 410 | 578 | |||||||
26,317 | |||||||||
Total Revenue Bonds | 138,318 | ||||||||
General Obligations – 10.1% | |||||||||
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP) | |||||||||
5.750%, 02/01/2017 (d) | 1,000 | 1,061 | |||||||
Becker Independent School District #726, Series A, Crossover Refunded 02/01/2010 @ 100 (FSA) (MSDCEP) | |||||||||
6.000%, 02/01/2021 (d) | 1,000 | 1,066 | |||||||
Brooklyn Center Independent School District #286, Series A, Callable 02/01/2016 @ 100 (MSDCEP) | |||||||||
4.500%, 02/01/2029 | 1,135 | 1,094 | |||||||
Chaska Independent School District #112, Series A, Crossover Refunded 02/01/2009 @ 100 (FSA) (MSDCEP) | |||||||||
5.700%, 02/01/2018 (d) | 1,000 | 1,044 | |||||||
Columbia Heights Independent School District #13, Crossover Refunded 02/01/2007 @ 100 (MSDCEP) | |||||||||
5.250%, 02/01/2015 (d) | 1,000 | 1,008 | |||||||
Delano Independent School District #879, Series A, Crossover Refunded 02/01/2011 @ 100 (FSA) (MSDCEP) | |||||||||
5.875%, 02/01/2025 (d) | 1,000 | 1,076 | |||||||
Minneapolis Sports Arena, Callable 04/01/2008 @ 100 | |||||||||
5.100%, 04/01/2013 | 500 | 509 | |||||||
5.100%, 10/01/2013 | 250 | 255 | |||||||
Perham, Disposal System, Callable 05/01/2011 @ 100 (AMT) | |||||||||
6.000%, 05/01/2022 | 1,500 | 1,559 | |||||||
Sauk Rapids Independent School District #47, Series A, Crossover Refunded 02/01/2011 @ 100 (MBIA) (MSDCEP) | |||||||||
5.750%, 02/01/2023 (d) | 2,000 | 2,149 | |||||||
St. Louis Park Independent School District #283, Crossover Refunded 02/01/2009 @ 100 (MSDCEP) | |||||||||
5.700%, 02/01/2017 (d) | 2,000 | 2,082 | |||||||
St. Michael Independent School District #885, Series A, Callable 02/01/2016 @ 100 (FSA) (MSDCEP) | |||||||||
4.750%, 02/01/2028 | 1,200 | 1,205 |
First American Funds Annual Report 2006 79
Table of Contents
Schedule of Investments continued
Minnesota Tax Free Fund (concluded) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Wayzata Independent School District #284, Series A, Crossover Refunded 02/01/2007 @ 100 | |||||||||
5.500%, 02/01/2017 (d) | $ | 2,000 | $ | 2,018 | |||||
Total General Obligations | 16,126 | ||||||||
Total Municipal Bonds (Cost $148,629) | 154,444 | ||||||||
Short-Term Investments – 3.4% | |||||||||
Money Market Funds – 3.3% | |||||||||
Federated Minnesota Municipal Cash Trust | 5,272,876 | 5,273 | |||||||
First American Tax Free Obligations Fund, Class Z (e) | 45,558 | 46 | |||||||
5,319 | |||||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
4.640%, 07/20/2006 (f) | $ | 80 | 79 | ||||||
Total Short-Term Investments (Cost $5,398) | 5,398 | ||||||||
Total Investments – 99.8% (Cost $154,027) | 159,842 | ||||||||
Other Assets and Liabilities, Net – 0.2% | 419 | ||||||||
Total Net Assets – 100.0% | $ | 160,261 | |||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(c) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(d) | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
(e) | 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. |
(f) | Yield shown is effective yield as of June 30, 2006. |
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $16,776, which represents 10.5% of total net assets. |
FGIC – Financial Guaranty Insurance Corporation
FHA – Federal Housing Authority
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
MSDCEP – Minnesota School District Credit Enhancement Program
Missouri Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 98.4% | |||||||||
Revenue Bonds – 77.1% | |||||||||
Continuing Care Retirement Communities – 3.2% | |||||||||
Cole County Industrial Development Authority, Lutheran Services Heisinger Project, Callable 02/01/2014 @ 100 | |||||||||
5.250%, 02/01/2024 | $ | 2,000 | $ | 2,023 | |||||
Illinois Financing Authority, Friendship Village, Schaumburg, Series A, Callable 02/15/2015 | |||||||||
5.375%, 02/15/2025 | 1,800 | 1,791 | |||||||
Missouri State Health & Educational Facilities Authority, Senior Living Facilities, Lutheran Senior, Series A, Callable 02/01/2015 @ 100 | |||||||||
5.375%, 02/01/2035 | 1,500 | 1,516 | |||||||
5,330 | |||||||||
Education – 9.2% | |||||||||
Missouri State Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project, Callable 11/01/2011 @ 100 | |||||||||
5.000%, 11/01/2019 | 2,540 | 2,620 | |||||||
Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 02/15/2015 @ 100 | |||||||||
5.000%, 02/15/2019 | 1,465 | 1,526 | |||||||
Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 06/15/2011 @ 100 | |||||||||
5.125%, 06/15/2041 | 2,150 | 2,185 | |||||||
Northwest Missouri State University Housing, Callable 06/01/2013 @ 100 (MBIA) | |||||||||
5.000%, 06/01/2016 | 650 | 676 | |||||||
University of Missouri, Pre-refunded 11/01/2007 @ 101 | |||||||||
5.500%, 11/01/2021 (a) | 3,000 | 3,095 | |||||||
5.800%, 11/01/2027 (a) | 5,000 | 5,177 | |||||||
15,279 | |||||||||
Healthcare – 15.5% | |||||||||
Boone County Hospital, Callable 08/01/2012 @ 100 | |||||||||
5.050%, 08/01/2020 | 1,200 | 1,209 | |||||||
Cape Girardeau County Authority, Southeast Missouri Hospital Association, Callable 06/01/2012 @ 100 | |||||||||
5.625%, 06/01/2022 | 1,500 | 1,540 | |||||||
Carthage Hospital Revenue, Callable 04/01/2016 @ 100 | |||||||||
6.000%, 04/01/2038 | 1,000 | 985 | |||||||
Hannibal Industrial Development Authority Health Facilities | |||||||||
4.300%, 03/01/2013 | 1,345 | 1,326 | |||||||
Hannibal Industrial Development Authority Health Facilities, Callable 03/01/2016 @ 100 | |||||||||
5.000%, 03/01/2022 | 1,000 | 1,002 | |||||||
Joplin Industrial Development Authority Healthcare Facilities, Freeman Health Systems Project, Callable 02/15/2015 @ 102 | |||||||||
5.500%, 02/15/2024 | 2,000 | 2,070 | |||||||
Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Escrowed to Maturity | |||||||||
6.750%, 05/15/2012 (b) | 3,310 | 3,768 |
The accompanying notes are an integral part of the financial statements.
80 First American Funds Annual Report 2006
Table of Contents
Missouri Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Missouri State Health & Educational Facilities Authority, Jefferson Memorial Hospital (RAAI) | |||||||||
4.250%, 08/15/2013 | $ | 735 | $ | 731 | |||||
Missouri State Health & Educational Facilities Authority, Jefferson Memorial Hospital, Callable 08/15/2014 @ 100 (RAAI) | |||||||||
5.000%, 08/15/2019 | 2,300 | 2,349 | |||||||
Missouri State Health & Educational Facilities Authority, Lake Regional Health System Project | |||||||||
5.000%, 02/15/2012 | 515 | 529 | |||||||
Missouri State Health & Educational Facilities Authority, SSM Health, Series A, Pre-refunded 06/01/2008 @ 101 (MBIA) | |||||||||
5.000%, 06/01/2018 (a) | 1,555 | 1,603 | |||||||
Missouri State Health & Educational Facilities Authority, SSM Health, Series B, Callable 06/01/2008 @ 101 (MBIA) | |||||||||
5.000%, 06/01/2018 | 445 | 454 | |||||||
Missouri State Health & Educational Facilities Authority, St. Lukes Health Systems, Series A | |||||||||
5.000%, 11/15/2014 | 3,000 | 3,140 | |||||||
North Kansas City Hospital, Series A, Callable 11/15/2013 @ 100 (FSA) | |||||||||
5.000%, 11/15/2021 | 250 | 257 | |||||||
Saline County Industrial Development Authority, Health Facilities, John Fitzgibbon Memorial Hospital, Callable 12/01/2015 @ 100 | |||||||||
5.625%, 12/01/2035 | 1,000 | 987 | |||||||
St. Louis County Industrial Development Authority, Ranken-Jordan Project, Series A, Callable 11/15/2013 @ 100 | |||||||||
6.625%, 11/15/2035 | 500 | 513 | |||||||
University Health Facilities, University of Missouri Health System, Series A, Pre-refunded 11/01/2006 @ 102 (AMBAC) | |||||||||
5.600%, 11/01/2026 (a) | 3,000 | 3,077 | |||||||
25,540 | |||||||||
Housing – 2.9% | |||||||||
Missouri State Housing Development Commission, Homeownership Loan Program, Series B, Callable 09/01/2015 @ 100 (AMT) (GNMA) (FNMA) | |||||||||
4.800%, 09/01/2031 | 2,500 | 2,422 | |||||||
Missouri State Housing Development Commission, Homeownership Loan Program, Series C1, Callable 09/01/2015 @ 100 (AMT) (GNMA) (FNMA) | |||||||||
5.000%, 09/01/2037 | 1,000 | 984 | |||||||
University City Industrial Development Authority, Multifamily Housing, Series A, Callable 07/31/2006 @ 102 (GNMA) | |||||||||
5.950%, 12/20/2025 | 1,400 | 1,419 | |||||||
4,825 | |||||||||
Lease Revenue – 15.1% | |||||||||
Clay County, Public Building Authority, Callable 05/15/2008 @ 100 (MLO) | |||||||||
5.125%, 05/15/2014 | 2,000 | 2,039 | |||||||
Kansas City Municipal Assistance, Capital Appreciation Leasehold, Series B-1, Zero Coupon Bond (MLO) | |||||||||
5.260%, 04/15/2027 (c) | 2,000 | 703 | |||||||
Kansas City Special Facilities Revenue, MCI Overhaul Base Project, Series G, Callable 09/01/2015 @ 100 (AMT) (MLO) | |||||||||
4.750%, 09/01/2028 | 4,000 | 3,798 | |||||||
Missouri State Board of Public Buildings, Series A, Callable 10/15/2013 @ 100 (MLO) | |||||||||
5.000%, 10/15/2027 | 1,000 | 1,023 | |||||||
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/2011 @ 100 (MBIA) (MLO) | |||||||||
5.000%, 05/01/2023 | 2,000 | 2,048 | |||||||
5.000%, 05/01/2024 | 5,130 | 5,246 | |||||||
5.125%, 05/01/2026 | 5,000 | 5,137 | |||||||
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/2011 @ 100 (MLO) | |||||||||
5.000%, 05/01/2017 | 1,000 | 1,032 | |||||||
Missouri State Financial Board Infrastructure Facilities, Branson, Series A, Callable 12/01/2012 @ 100 (MLO) | |||||||||
5.000%, 12/01/2017 | 1,000 | 1,008 | |||||||
5.375%, 12/01/2022 | 750 | 766 | |||||||
Springfield Public Building, Capital Improvement Project, Callable 03/01/2014 @ 100 (AMBAC) (MLO) | |||||||||
5.000%, 03/01/2024 | 2,000 | 2,050 | |||||||
Springfield Public Utility Revenue, Series A (MBIA) (MLO) | |||||||||
4.000%, 12/01/2014 | 150 | 148 | |||||||
24,998 | |||||||||
Miscellaneous – 1.9% | |||||||||
Missouri Financial Board Cultural Facilities, Nelson Gallery Foundation, Series A, Callable 12/01/2011 @ 100 | |||||||||
5.250%, 12/01/2014 | 1,000 | 1,054 | |||||||
Platte County Industrial Development Transportation Authority (MLO) | |||||||||
4.000%, 12/01/2014 | 780 | 766 | |||||||
St. Louis Industrial Development Authority, St. Louis Science Center, Series A (RAAI) | |||||||||
4.000%, 02/15/2014 | 315 | 309 | |||||||
Sugar Creek, Lafarge North America, Series A, Callable 06/01/2013 @ 101 (AMT) | |||||||||
5.650%, 06/01/2037 | 1,000 | 1,027 | |||||||
3,156 | |||||||||
Revolving Funds – 14.1% | |||||||||
Missouri State Environmental Improvement & Energy Resources Authority, Series A, State Revolving Fund Program, Pre-refunded 07/01/2010 @ 100 | |||||||||
5.500%, 07/01/2016 (a) | 1,875 | 1,984 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving Fund Program, Callable 07/01/2010 @ 100 | |||||||||
5.500%, 07/01/2016 | 620 | 653 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving program, Callable 07/01/2016 @ 100 | |||||||||
4.750%, 07/01/2020 | 2,000 | 2,045 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/2013 @ 100 | |||||||||
5.500%, 07/01/2014 | 2,000 | 2,160 |
First American Funds Annual Report 2006 81
Table of Contents
Schedule of Investments continued
Missouri Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/2009 @ 101 | |||||||||
5.250%, 01/01/2015 | $ | 2,180 | $ | 2,259 | |||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program | |||||||||
5.375%, 07/01/2014 | 2,400 | 2,609 | |||||||
5.375%, 07/01/2015 | 1,500 | 1,637 | |||||||
5.375%, 07/01/2016 | 2,000 | 2,182 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program, Callable 07/01/2011 @ 100 | |||||||||
5.000%, 07/01/2023 | 6,655 | 6,847 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program, Callable 01/01/2016 @ 100 | |||||||||
4.750%, 07/01/2025 | 1,000 | 1,011 | |||||||
23,387 | |||||||||
Tax Revenue – 4.3% | |||||||||
Belton Increment Tax Revenue, Town Center Project, Callable 03/01/2016 @ 100 | |||||||||
5.500%, 03/01/2020 | 250 | 246 | |||||||
5.625%, 03/01/2025 | 600 | 591 | |||||||
Branson Industrial Development Authority Tax Increment Revenue, Branson Landing Retail Project, Callable 06/01/2015 @ 100 | |||||||||
5.500%, 06/01/2029 | 1,000 | 997 | |||||||
Brentwood Tax Increment Revenue, Brentwood Square Project | |||||||||
4.125%, 05/01/2011 | 250 | 245 | |||||||
Fenton Tax Increment Revenue, Gravois Bluffs Redevelopment Project | |||||||||
5.000%, 04/01/2014 | 1,000 | 1,024 | |||||||
Howard Bend Levee District (XLCA) | |||||||||
5.500%, 03/01/2026 | 1,745 | 1,921 | |||||||
Riverside Tax Increment Revenue, L-385 Levee Project, Callable 05/01/2015 @ 100 (MLO) | |||||||||
5.250%, 05/01/2020 | 1,000 | 1,008 | |||||||
St. Joseph Industrial Development Authority, Tax Increment Revenue, Shoppes at North Village Project, Callable 11/01/2014 @ 100 | |||||||||
5.375%, 11/01/2023 | 1,000 | 995 | |||||||
7,027 | |||||||||
Transportation – 6.7% | |||||||||
Missouri State Highways & Transportation Road, Series A, Callable 02/01/2011 @ 100 | |||||||||
5.250%, 02/01/2020 | 5,000 | 5,223 | |||||||
Missouri State Highways & Transportation Road, Series A, Callable 02/01/2012 @ 100 | |||||||||
5.000%, 02/01/2022 | 3,725 | 3,818 | |||||||
Puerto Rico Commonwealth Highway & Transportation Authority, Series K, Callable 07/01/2015 @ 100 | |||||||||
5.000%, 07/01/2017 | 1,000 | 1,019 | |||||||
St. Louis Airport, Capital Improvement Program, Series A, Callable 07/01/2012 @ 100 (MBIA) | |||||||||
5.375%, 07/01/2021 | 1,000 | 1,055 | |||||||
11,115 | |||||||||
Utilities – 4.2% | |||||||||
Kansas City Water, Series B, Callable 12/01/2006 @ 101 | |||||||||
5.000%, 12/01/2016 | 2,200 | 2,231 | |||||||
Metropolitan St. Louis Sewer District, Series A, Callable 05/01/2014 @ 100 (MBIA) | |||||||||
5.000%, 05/01/2023 | 1,075 | 1,107 | |||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project, Callable 01/01/2016 @ 100 (MBIA) | |||||||||
4.200%, 01/01/2018 | 40 | 39 | |||||||
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project (MBIA) | |||||||||
5.000%, 01/01/2016 | 1,500 | 1,584 | |||||||
Missouri State Development Financial Board, Independence Water System, Callable 11/01/2014 @ 100 (AMBAC) | |||||||||
5.000%, 11/01/2024 | 1,000 | 1,029 | |||||||
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Kansas City Power & Light | |||||||||
4.000%, 01/02/2012 | 1,000 | 981 | |||||||
6,971 | |||||||||
Total Revenue Bonds | 127,628 | ||||||||
General Obligations – 19.5% | |||||||||
Columbia School District, Crossover Refunded 03/01/2007 @ 100 | |||||||||
6.300%, 03/01/2011 (d) | 365 | 371 | |||||||
Hazelwood School District, Series A, Callable 03/01/2015 @ 100 (FGIC) (MDDP) | |||||||||
5.000%, 03/01/2017 | 570 | 598 | |||||||
Independence School District, Callable 03/01/2013 @ 100 (MBIA) (MDDP) | |||||||||
5.000%, 03/01/2020 | 1,000 | 1,032 | |||||||
Jackson County School District #7, Lee’s Summit, Callable 03/01/2016 @ 100 (MBIA) | |||||||||
4.750%, 03/01/2020 | 560 | 570 | |||||||
Jackson County School District #7, Lee’s Summit, Callable 03/01/2015 @ 100 (MBIA) (MDDP) | |||||||||
4.250%, 03/01/2016 | 2,000 | 1,993 | |||||||
Jefferson City School District, Series A (MDDP) | |||||||||
6.700%, 03/01/2011 | 1,000 | 1,083 | |||||||
Miller County School District #2, Callable 03/01/2016 @ 100 (FSA) | |||||||||
5.000%, 03/01/2017 | 1,000 | 1,053 | |||||||
Platte County School District #R-3, Callable 03/01/2014 @ 100 (MBIA) | |||||||||
5.000%, 03/01/2024 | 1,000 | 1,028 | |||||||
Puerto Rico Municipal Finance Agency, Pre-refunded 08/01/2009 @ 101 | |||||||||
5.500%, 08/01/2023 (a) | 3,000 | 3,169 | |||||||
Riverview Gardens School District Educational Facilities Authority, Series A (MLO) | |||||||||
4.125%, 04/01/2016 | 500 | 486 | |||||||
St. Charles Community College (MBIA) | |||||||||
5.250%, 02/15/2018 | 1,390 | 1,499 | |||||||
St. Charles County, Francis Howell School District (FGIC) (MDDP) | |||||||||
5.250%, 03/01/2018 | 2,095 | 2,256 | |||||||
St. Joseph School District (FSA) (MDDP) | |||||||||
5.250%, 03/01/2017 | 1,500 | 1,619 |
The accompanying notes are an integral part of the financial statements.
82 First American Funds Annual Report 2006
Table of Contents
Missouri Tax Free Fund (concluded) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
St. Louis County | |||||||||
5.000%, 02/01/2012 | $ | 3,250 | $ | 3,426 | |||||
St. Louis County Public Safety, Pre-refunded 08/15/2009 @ 100 (FGIC) | |||||||||
5.125%, 02/15/2017 (a) | 4,185 | 4,335 | |||||||
St. Louis County Rockwood School District #R-6, Callable 02/01/2011 @ 100 (MDDP) | |||||||||
5.000%, 02/01/2013 | 3,000 | 3,116 | |||||||
St. Louis County Rockwood School District #R-6, Series A, Callable 02/01/2013 @ 100 | |||||||||
5.000%, 02/01/2014 | 2,000 | 2,101 | |||||||
St. Louis County School District, Series A (FSA) | |||||||||
5.000%, 03/01/2014 | 2,000 | 2,112 | |||||||
St. Louis County School District, Series A, Callable 03/01/2014 @ 100 | |||||||||
5.000%, 03/01/2016 | 500 | 523 | |||||||
Total General Obligations | 32,370 | ||||||||
Certificates of Participation – 1.8% | |||||||||
Hazelwood School District, Energy Improvements Project | |||||||||
4.200%, 03/01/2013 | 405 | 404 | |||||||
Hazelwood School District, Energy Improvements Project, Callable 03/01/2016 @ 100 | |||||||||
4.500%, 03/01/2017 | 515 | 516 | |||||||
4.500%, 03/01/2018 | 445 | 444 | |||||||
Mehlville School District #R-9 (FSA) (MLO) | |||||||||
5.000%, 09/01/2015 | 1,500 | 1,576 | |||||||
Total Certificates of Participation | 2,940 | ||||||||
Total Municipal Bonds (Cost $160,028) | 162,938 | ||||||||
Short-Term Investment – 0.5% | |||||||||
First American Tax Free Obligations Fund, Class Z (e) | |||||||||
(Cost $889) | 889,270 | 889 | |||||||
Total Investments – 98.9% (Cost $160,917) | 163,827 | ||||||||
Other Assets and Liabilities, Net – 1.1% | 1,753 | ||||||||
Total Net Assets – 100.0% | $ | 165,580 | |||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(c) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(d) | Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated. |
(e) | 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. |
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $8,231 which represents 5.0% of total net assets. |
FGIC – Financial Guaranty Insurance Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MDDP – Missouri Direct Deposit Program
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
XLCA – XL Capital Assurance Inc.
Nebraska Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.3% | ||||||||
Revenue Bonds – 75.3% | ||||||||
Continuing Care Retirement Communities – 2.5% | ||||||||
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100 | ||||||||
5.400%, 10/01/2027 (a) | $ | 410 | $ | 405 | ||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100 | ||||||||
5.000%, 09/01/2025 (a) | 600 | 597 | ||||||
1,002 | ||||||||
Education – 17.9% | ||||||||
Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/2008 @ 100 | ||||||||
5.350%, 12/15/2018 | 650 | 661 | ||||||
Nebraska Educational Finance Authority, Creighton University Project, Series A (AMBAC) | ||||||||
5.000%, 09/01/2009 | 500 | 513 | ||||||
Nebraska Educational Finance Authority, Midland Lutheran College Project, Callable 10/01/2010 @ 100 | ||||||||
5.200%, 10/01/2020 | 350 | 353 | ||||||
Nebraska Educational Finance Authority, Wesleyan University Project, Callable 04/01/2012 @ 100 (RAAI) | ||||||||
5.000%, 04/01/2017 | 605 | 617 | ||||||
Nebraska Utility Corporation, University of Nebraska, Lincoln Project, Callable 01/01/2012 @ 100 | ||||||||
5.250%, 01/01/2015 | 1,045 | 1,102 | ||||||
University of Nebraska Facility Corporation, Deferred Maintenance Project, Callable 07/15/2008 @ 100 | ||||||||
5.250%, 07/15/2011 | 1,000 | 1,023 | ||||||
University of Nebraska Facility Corporation, Medical Center Research Project, Callable 02/15/2012 @ 100 | ||||||||
5.000%, 02/15/2015 | 500 | 519 | ||||||
University of Nebraska, Kearney Student Fees, Callable 01/01/2016 @ 100 | ||||||||
5.000%, 07/01/2030 | 500 | 506 | ||||||
University of Nebraska, Lincoln Memorial Stadium Project, Series A, Callable 05/01/2014 @ 100 | ||||||||
5.000%, 11/01/2015 | 500 | 519 | ||||||
University of Nebraska, Lincoln Student Fees, Callable 01/01/2013 @ 100 | ||||||||
5.000%, 07/01/2022 | 750 | 766 | ||||||
University of Nebraska, Omaha Student Housing Project, Callable 11/24/2013 @ 100 | ||||||||
5.000%, 05/15/2023 | 500 | 514 | ||||||
7,093 | ||||||||
Healthcare – 21.0% | ||||||||
Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/2007 @ 102 (AMBAC) | ||||||||
4.900%, 09/01/2009 | 750 | 770 | ||||||
Douglas County Hospital Authority #2, Girls & Boys Town Project, Callable 09/01/2015 @ 100 | ||||||||
4.500%, 09/01/2030 | 1,000 | 938 |
First American Funds Annual Report 2006 83
Table of Contents
Schedule of Investments continued
Nebraska Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Douglas County Hospital Authority #2, Nebraska Medical Center | |||||||||
5.000%, 11/15/2016 | $ | 700 | $ | 718 | |||||
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100 | |||||||||
5.000%, 06/01/2038 | 600 | 580 | |||||||
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A, Callable 02/15/2016 @ 100 | |||||||||
5.250%, 02/15/2030 | 600 | 613 | |||||||
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project, Series A, Callable 06/01/2011 @ 100 (AMBAC) | |||||||||
5.000%, 06/01/2019 | 500 | 510 | |||||||
5.125%, 06/01/2021 | 1,200 | 1,227 | |||||||
Madison County Hospital Authority #1, Faith Regional Health Services Project, Callable 01/01/2012 @ 100 (RAAI) | |||||||||
5.500%, 07/01/2021 | 1,000 | 1,042 | |||||||
Nebraska Investment Finance Authority, Great Plains Regional Medical Center, Callable 05/15/2012 @ 100 (RAAI) | |||||||||
5.200%, 11/15/2016 | 250 | 259 | |||||||
5.300%, 11/15/2017 | 805 | 834 | |||||||
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital, Callable 06/01/2016 @ 100 | |||||||||
5.250%, 06/01/2036 | 150 | 147 | |||||||
Platte County Hospital Authority #1, Columbus Community Hospital Project, Callable 05/01/2010 @ 101 (RAAI) | |||||||||
5.850%, 05/01/2014 | 650 | 687 | |||||||
8,325 | |||||||||
Housing – 6.4% | |||||||||
Nebraska Investment Finance Authority, Multifamily Housing, Callable 07/01/2012 @ 100 (AMT) (GNMA) | |||||||||
4.625%, 07/20/2012 | 365 | 365 | |||||||
Nebraska Investment Finance Authority, Single Family Housing, Series A, Callable 03/01/2011 @ 100 (AMT) | |||||||||
5.150%, 03/01/2016 | 340 | 345 | |||||||
Nebraska Investment Finance Authority, Single Family Housing, Series C, Callable 03/01/2014 @ 100 (AMT) | |||||||||
4.400%, 09/01/2020 | 680 | 656 | |||||||
Nebraska Investment Finance Authority, Single Family Housing, Series D, Callable 03/01/2015 @ 100 (AMT) | |||||||||
4.950%, 09/01/2026 | 500 | 498 | |||||||
Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments, Callable 10/01/2011 @ 100 (GNMA) | |||||||||
5.150%, 11/20/2022 | 670 | 685 | |||||||
2,549 | |||||||||
Miscellaneous – 1.8% | |||||||||
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA) | |||||||||
5.500%, 06/01/2036 | 400 | 409 | |||||||
Washington County Wastewater Facilities, Cargill Income Project, Callable 11/01/2012 @ 101 (AMT) | |||||||||
5.900%, 11/01/2027 | 300 | 320 | |||||||
729 | |||||||||
Recreational Facility Authority – 5.9% | |||||||||
Douglas County Zoo Facility, Omaha Henry Doory Zoo Project, Callable 04/13/2015 @ 100 | |||||||||
4.750%, 09/01/2024 | 1,365 | 1,327 | |||||||
Omaha Convention Hotel Corporation, Series A, Callable 04/01/2012 @ 100 (AMBAC) | |||||||||
5.125%, 04/01/2026 | 1,000 | 1,027 | |||||||
2,354 | |||||||||
Revolving Funds – 2.7% | |||||||||
Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Callable 01/01/2009 @ 100 | |||||||||
4.500%, 01/01/2010 | 115 | 116 | |||||||
5.150%, 01/01/2016 | 580 | 589 | |||||||
Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Series A, Callable 07/01/2011 @ 100 | |||||||||
4.300%, 01/01/2021 | 400 | 383 | |||||||
1,088 | |||||||||
Tax Revenue – 2.8% | |||||||||
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100 | |||||||||
5.625%, 03/01/2036 | 200 | 201 | |||||||
Omaha Special Tax Revenue, Series A, Callable 02/01/2012 @ 101 | |||||||||
5.125%, 02/01/2032 | 500 | 513 | |||||||
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100 | |||||||||
5.000%, 02/01/2026 | 400 | 401 | |||||||
1,115 | |||||||||
Utilities – 14.3% | |||||||||
Alliance Electrical Systems, Callable 06/15/2008 @ 100 (AMBAC) | |||||||||
5.000%, 12/15/2014 | 260 | 264 | |||||||
5.100%, 12/15/2015 | 460 | 469 | |||||||
Burt County Public Power District Electric Systems, Callable 07/01/2011 @ 100 | |||||||||
4.850%, 07/01/2026 | 335 | 330 | |||||||
Grand Island Electrical Systems, Callable 06/27/2011 @ 100 (MBIA) | |||||||||
5.125%, 08/15/2016 | 750 | 784 | |||||||
Hastings Electrical Systems, Callable 05/01/2011 @ 100 (FSA) | |||||||||
5.000%, 01/01/2015 | 1,000 | 1,038 | |||||||
5.000%, 01/01/2016 | 750 | 779 | |||||||
Lincoln Electrical Systems, Callable 09/01/2011 @ 100 | |||||||||
5.000%, 09/01/2015 | 500 | 520 | |||||||
Lincoln Electrical Systems, Callable 09/01/2013 @ 100 | |||||||||
5.000%, 09/01/2026 | 250 | 256 | |||||||
Omaha Public Power District, Nebraska City, Series A, Callable 12/01/2015 @ 100 (AMBAC) | |||||||||
4.400%, 02/01/2023 | 260 | 253 | |||||||
4.550%, 02/01/2026 | 750 | 734 |
The accompanying notes are an integral part of the financial statements.
84 First American Funds Annual Report 2006
Table of Contents
Nebraska Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Omaha Public Power Electrical Systems, Escrowed to Maturity | |||||||||
6.200%, 02/01/2017 (b) | $ | 210 | $ | 239 | |||||
5,666 | |||||||||
Total Revenue Bonds | 29,921 | ||||||||
General Obligations – 19.7% | |||||||||
Douglas County School District #10, Elkhorn Public Schools, Callable 01/10/2011 @ 100 | |||||||||
4.500%, 07/15/2026 | 500 | 491 | |||||||
Douglas County School District #17, Millard Public Schools, Series A, Callable 05/15/2010 @ 100 (FSA) | |||||||||
4.500%, 06/15/2025 | 750 | 724 | |||||||
Douglas County School District #54, Ralston Public Schools, Callable 08/15/2011 @ 100 (FSA) | |||||||||
5.000%, 12/15/2016 | 845 | 879 | |||||||
Hall County, Callable 03/15/2011 @ 100 (MBIA) | |||||||||
4.250%, 12/15/2026 | 500 | 463 | |||||||
Hayes County School District #79, Callable 11/15/2010 @ 100 | |||||||||
4.550%, 11/15/2022 | 170 | 166 | |||||||
4.600%, 11/15/2023 | 180 | 176 | |||||||
La Vista, Callable 12/15/2010 @ 100 | |||||||||
4.800%, 12/15/2026 | 345 | 340 | |||||||
La Vista, Off-Street Parking, Callable 04/15/2011 @ 100 | |||||||||
4.700%, 04/15/2025 | 500 | 478 | |||||||
Lancaster County School District #1, Lincoln Public Schools, Callable 01/15/2011 @ 100 | |||||||||
5.250%, 07/15/2019 | 220 | 230 | |||||||
Lancaster County School District #1, Lincoln Public Schools, Callable 07/15/2012 @ 100 | |||||||||
5.000%, 01/15/2017 | 750 | 778 | |||||||
Lincoln-Lancaster County Public Building Community, Tax Supported Lease Rental, Callable 04/15/2015 @ 100 | |||||||||
4.500%, 10/15/2026 | 750 | 724 | |||||||
Omaha-Douglas Public Building, Callable 05/01/2011 @ 100 | |||||||||
4.900%, 05/01/2016 | 500 | 516 | |||||||
5.100%, 05/01/2020 | 300 | 311 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 400 | 412 | |||||||
Saunders County, Callable 01/10/2011 @ 100 (FSA) | |||||||||
5.000%, 11/01/2030 | 650 | 658 | |||||||
Scotts Bluff County, Callable 07/12/2011 @ 100 | |||||||||
4.550%, 01/15/2026 (a) | 500 | 495 | |||||||
Total General Obligations | 7,841 | ||||||||
Certificates of Participation – 3.3% | |||||||||
Western Nebraska Community College, Callable 10/15/2007 @ 100 (MLO) | |||||||||
4.700%, 10/15/2010 | 295 | 297 | |||||||
4.800%, 10/15/2011 | 195 | 196 | |||||||
4.900%, 10/15/2012 | 250 | 252 | |||||||
5.000%, 10/15/2013 | 300 | 303 | |||||||
5.100%, 10/15/2014 | 250 | 252 | |||||||
1,300 | |||||||||
Total Municipal Bonds (Cost $38,635) | 39,062 | ||||||||
Short-Term Investments – 4.3% | |||||||||
Money Market Fund – 4.2% | |||||||||
First American Tax Free Obligations Fund, Class Z (c) | 1,691,927 | 1,692 | |||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
4.467%, 07/20/2006 (d) | $ | 40 | 40 | ||||||
Total Short-Term Investments (Cost $1,732) | 1,732 | ||||||||
Total Investments – 102.6% (Cost $40,367) | 40,794 | ||||||||
Other Assets and Liabilities, Net – (2.6)% | (1,050 | ) | |||||||
Total Net Assets – 100.0% | $ | 39,744 | |||||||
(a) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,504 or 3.8% of total net assets. See note 2 in Notes to Financial Statements. |
(b) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(c) | 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. |
(d) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
ACA – | American Capital Access |
AMBAC – | American Municipal Bond Assurance Corporation |
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $2,184, which represents 5.5% of total net assets. |
FSA – | Financial Security Assurance |
GNMA – | Government National Mortgage Association |
MBIA – | Municipal Bond Insurance Association |
MLO – | Municipal Lease Obligation |
RAAI – | Radian Asset Assurance Inc. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Sold | Value | Month | Appreciation | ||||||||||||
U.S. Treasury 10 Year Note Futures | (20) | $ | (2,097 | ) | September 2006 | $ | 20 | |||||||||
First American Funds Annual Report 2006 85
Table of Contents
Schedule of Investments continued
Ohio Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 98.9% | |||||||||
Revenue Bonds – 53.4% | |||||||||
Continuing Care Retirement Communities – 4.1% | |||||||||
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/2012 @ 100 (RAAI) | |||||||||
5.125%, 07/01/2022 | $ | 500 | $ | 510 | |||||
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/2015 @ 100 | |||||||||
5.000%, 07/01/2026 | 800 | 791 | |||||||
Toledo-Lucas County Port Authority Facilities, St. Mary Woods Project, Series A, Callable 05/15/2010 @ 100 | |||||||||
6.000%, 05/15/2024 | 400 | 405 | |||||||
1,706 | |||||||||
Economic Development – 0.6% | |||||||||
Summit County Port Authority Board Funding Program, Garfield Heights Project, Series A, Callable 05/15/2014 @ 102 | |||||||||
5.250%, 05/15/2023 | 250 | 250 | |||||||
Education – 14.7% | |||||||||
Cincinnati Port Development Authority, Economic Development Authority, Sisters of Mercy, Callable 10/01/2016 @ 100 | |||||||||
5.000%, 10/01/2025 | 250 | 251 | |||||||
Ohio State Higher Educational Facilities, Baldwin-Wallace College Project | |||||||||
5.000%, 12/01/2013 | 750 | 765 | |||||||
Ohio State Higher Educational Facilities, College of Wooster Project, Callable 09/01/2015 @ 100 | |||||||||
5.000%, 09/01/2020 | 400 | 410 | |||||||
Ohio State Higher Educational Facilities, Ohio Northern University Project, Callable 05/01/2015 @ 100 | |||||||||
5.000%, 05/01/2026 | 1,000 | 1,019 | |||||||
Ohio State Higher Educational Facilities, Wittenburg University Project, Callable 12/01/2015 @ 100 | |||||||||
5.000%, 12/01/2024 | 505 | 500 | |||||||
Ohio State Higher Educational Facilities, Xavier University Project, Callable 05/01/2013 @ 100 (FGIC) | |||||||||
5.250%, 05/01/2016 | 1,000 | 1,050 | |||||||
Ohio State University, Series B, Callable 06/01/2013 @ 100 | |||||||||
5.250%, 06/01/2016 | 1,000 | 1,063 | |||||||
University of Cincinnati, Series A, Callable 06/01/2011 @ 101 (FGIC) | |||||||||
5.500%, 06/01/2014 | 1,000 | 1,071 | |||||||
6,129 | |||||||||
Healthcare – 11.1% | |||||||||
Akron, Bath & Copley Joint Township Hospital Facilities, Summa Health Systems, Series A, Callable 11/15/2014 @ 100 (RAAI) | |||||||||
5.250%, 11/15/2016 | 800 | 841 | |||||||
Erie County Hospital Facilities, Firelands Regional Medical Center, Series A, Callable 08/15/2012 @ 101 | |||||||||
5.500%, 08/15/2022 | 500 | 517 | |||||||
Erie County Hospital Facilities, Firelands Regional Medical Center Project, Series A, Callable 08/15/2016 @ 100 | |||||||||
5.000%, 08/15/2036 | 600 | 599 | |||||||
Fairfield County Hospital Facilities, Fairfield Medical Center, Callable 06/15/2012 @ 100 (RAAI) | |||||||||
5.000%, 06/15/2022 | 500 | 506 | |||||||
Hamilton County Hospital Facilities, Children’s Medical Center, Series F (FGIC) | |||||||||
5.200%, 05/15/2009 | 1,000 | 1,024 | |||||||
Lorain County Hospital, Catholic Healthcare, Callable 10/01/2012 @ 100 | |||||||||
5.500%, 10/01/2017 | 350 | 368 | |||||||
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100 | |||||||||
5.250%, 05/15/2018 | 125 | 129 | |||||||
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100 | |||||||||
5.250%, 05/15/2026 | 250 | 256 | |||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100 | |||||||||
5.000%, 09/01/2025 (a) | 400 | 397 | |||||||
4,637 | |||||||||
Housing – 2.4% | |||||||||
Ohio Housing Finance Agency, Residential Mortgage Backed Securities, Series E, Callable 03/01/2016 @ 100 (AMT) (GNMA) (FNMA) | |||||||||
4.850%, 09/01/2026 | 1,000 | 990 | |||||||
Lease Revenue – 6.9% | |||||||||
Cleveland-Cuyahoga County Port Authority, Rita Project, Callable 11/15/2014 @ 100 (MLO) (RAAI) | |||||||||
5.000%, 11/15/2019 | 750 | 767 | |||||||
Ohio State Building Authority, State Facility, Administration Building Fund, Series A, Callable 04/01/2012 @ 100 (FSA) (MLO) | |||||||||
5.500%, 04/01/2016 | 1,000 | 1,070 | |||||||
Riversouth Authority Revenue, Riversouth Area Redevelopment, Series A, Callable 06/01/2014 @ 100 (MLO) | |||||||||
5.250%, 12/01/2017 | 1,000 | 1,056 | |||||||
2,893 | |||||||||
Miscellaneous – 2.8% | |||||||||
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA) | |||||||||
5.500%, 06/01/2036 | 150 | 153 | |||||||
Toledo-Lucas County Port Authority Facilities, Cargill Income Project, Series B | |||||||||
4.500%, 12/01/2015 | 1,000 | 996 | |||||||
1,149 | |||||||||
The accompanying notes are an integral part of the financial statements.
86 First American Funds Annual Report 2006
Table of Contents
Ohio Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Revolving Funds – 4.9% | |||||||||
Ohio State Water Development Authority, Escrowed to Maturity, Callable until 11/30/2011 @ 100 (AMBAC) | |||||||||
5.800%, 12/01/2011 (b) | $ | 1,000 | $ | 1,011 | |||||
Ohio State Water Development Authority, Water Pollution Control, Pre-refunded 06/01/2012 @ 100 | |||||||||
5.050%, 12/01/2021 (c) | 1,000 | 1,055 | |||||||
2,066 | |||||||||
Tax Revenue – 1.0% | |||||||||
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/2013 @ 102 | |||||||||
5.250%, 12/01/2023 | 400 | 406 | |||||||
Utilities – 4.9% | |||||||||
Hamilton Electric Systems, Series A, Callable 10/15/2015 @ 101 | |||||||||
4.300%, 10/15/2016 | 1,000 | 991 | |||||||
Montgomery County Water, Greater Moraine Beaver, Callable 11/15/2012 @ 100 (AMBAC) | |||||||||
5.375%, 11/15/2016 | 1,000 | 1,068 | |||||||
2,059 | |||||||||
Total Revenue Bonds | 22,285 | ||||||||
General Obligations – 42.3% | |||||||||
Cincinnati, Callable 12/01/2011 @ 100 | |||||||||
5.000%, 12/01/2016 | 1,000 | 1,042 | |||||||
5.000%, 12/01/2017 | 1,000 | 1,036 | |||||||
Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC) | |||||||||
5.000%, 12/01/2011 | 1,000 | 1,050 | |||||||
Dublin, Refunding & Improvement, Series A, Callable 12/01/2009 @ 101 | |||||||||
5.250%, 12/01/2014 | 1,000 | 1,048 | |||||||
Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/2006 @ 101 (FGIC) | |||||||||
5.650%, 12/01/2016 (c) | 500 | 509 | |||||||
Ohio State Common Schools, Series A, Callable 03/15/2012 @ 101 (FGIC) | |||||||||
5.125%, 09/15/2022 | 1,750 | 1,813 | |||||||
Ohio State Common Schools, Series B (VRDO) | |||||||||
3.900%, 03/15/2025 (d) | 200 | 200 | |||||||
Ohio State Higher Education, Series A, Callable 02/01/2011 @ 100 | |||||||||
5.000%, 02/01/2019 | 1,000 | 1,030 | |||||||
Ohio State Higher Education, Series A, Callable 02/01/2012 @ 100 | |||||||||
5.000%, 08/01/2022 | 1,000 | 1,026 | |||||||
Ohio State Higher Education, Series B, Callable 11/01/2011 @ 100 | |||||||||
5.000%, 11/01/2015 | 1,000 | 1,042 | |||||||
Ohio State Higher Educational Facilities, John Carroll University Project, Callable 04/01/2016 @ 100 | |||||||||
5.000%, 04/01/2019 | 1,000 | 1,033 | |||||||
Ohio State Infrastructure Improvement, Series A | |||||||||
5.500%, 02/01/2020 | 1,000 | 1,112 | |||||||
Ohio State Parks & Recreational Facilities, Series II-A, Callable 02/01/2015 @ 100 | |||||||||
5.250%, 02/01/2020 | 1,000 | 1,057 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 260 | 268 | |||||||
Revere Local School District (FSA) | |||||||||
5.000%, 12/01/2012 | 1,150 | 1,211 | |||||||
Solon, Callable 12/01/2012 @ 100 | |||||||||
5.000%, 12/01/2021 | 1,000 | 1,028 | |||||||
Springfield City School District, Callable 12/01/2011 @ 102 (FGIC) | |||||||||
5.200%, 12/01/2023 | 1,000 | 1,047 | |||||||
Toledo City School District, School Facilities Improvement, Callable 12/01/2013 @ 100 (FSA) | |||||||||
5.000%, 12/01/2014 | 1,000 | 1,053 | |||||||
Total General Obligations | 17,605 | ||||||||
Certificate of Participation – 3.2% | |||||||||
Midview Local School District, School Buildings Facilities Project, Callable 05/01/2013 @ 100 (MLO) | |||||||||
5.250%, 11/01/2017 | 1,270 | 1,324 | |||||||
Total Municipal Bonds (Cost $40,934) | 41,214 | ||||||||
Short-Term Investments – 1.4% | |||||||||
Money Market Fund – 1.3% | |||||||||
Federated Ohio Municipal Cash Trust | 523,878 | 524 | |||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
4.642%, 07/20/2006 (e) | $ | 40 | 40 | ||||||
Total Short-Term Investments (Cost $564) | 564 | ||||||||
Total Investments – 100.3% (Cost $41,498) | 41,778 | ||||||||
Other Assets and Liabilities, Net – (0.3)% | (122 | ) | |||||||
Total Net Assets – 100.0% | $ | 41,656 | |||||||
(a) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $401 or 1.0% of total net assets. See note 2 in Notes to Financial Statements. |
(b) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(c) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(d) | Variable Rate Security – The rate shown is in effect as of June 30, 2006. |
(e) | Yield shown is effective yield as of June 30, 2006. |
ACA – American Capital Access
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006 the aggregate market value of securities subject to the AMT was $990, which represents 2.4% of total net assets. |
FGIC – Financial Guaranty Insurance Corporation
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
LOC – Letter Of Credit
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
VRDO – | Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days’ notice. Maturity date shown represents final maturity. |
First American Funds Annual Report 2006 87
Table of Contents
Schedule of Investments continued
Oregon Intermediate Tax Free Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Municipal Bonds – 98.9% | ||||||||
Revenue Bonds – 34.6% | ||||||||
Continuing Care Retirement Communities – 2.5% | ||||||||
Clackamas County Hospital Facilities Authority, Mary’s Woods, Series A, Pre-refunded 05/15/2009 @ 102 | ||||||||
6.125%, 05/15/2013 (a) | $ | 1,000 | $ | 1,075 | ||||
Clackamas County Hospital Facilities Authority, Robison Jewish Home, Callable 10/01/2015 @ 100 | ||||||||
5.125%, 10/01/2024 | 1,000 | 969 | ||||||
Oregon State Health, Housing, Educational & Cultural Facilities Authority, Oregon Baptist Retirement Homes, Callable until 11/14/2006 @ 103 | ||||||||
8.000%, 11/15/2026 | 895 | 916 | ||||||
2,960 | ||||||||
Economic Development – 1.2% | ||||||||
Port Morrow, Callable until 05/31/2015 @ 100 | ||||||||
6.250%, 06/01/2015 | 1,500 | 1,501 | ||||||
Education – 6.0% | ||||||||
Forest Grove Campus Improvement, Pacific University Project, Series A, Callable 05/01/2015 @ 100 (RAAI) | ||||||||
5.000%, 05/01/2022 | 3,130 | 3,186 | ||||||
Multnomah County Educational Facilities, University of Portland, Callable 04/01/2007 @ 102 (AMBAC) | ||||||||
5.700%, 04/01/2015 | 1,000 | 1,041 | ||||||
Oregon State Facilities Authority, Linfield College Project, Series A, Callable 10/01/2015 @ 100 | ||||||||
5.000%, 10/01/2025 | 1,000 | 1,002 | ||||||
Oregon State Health, Housing, Educational & Cultural Facilities Authority, Reed College, Series A, Callable 07/01/2006 @ 102 | ||||||||
5.375%, 07/01/2015 | 2,000 | 2,040 | ||||||
7,269 | ||||||||
Healthcare – 5.4% | ||||||||
Clackamas County Hospital Facilities Authority, Legacy Health Systems, Callable 08/15/2009 @ 101 | ||||||||
5.250%, 02/15/2011 | 2,000 | 2,083 | ||||||
5.375%, 02/15/2012 | 1,000 | 1,033 | ||||||
Medford Hospital Facilities Authority, Asante Health Systems, Series A, Callable 08/15/2008 @ 101 (MBIA) | ||||||||
5.250%, 08/15/2011 | 325 | 335 | ||||||
5.375%, 08/15/2012 | 320 | 330 | ||||||
Multnomah County Hospital Facilities Authority, Providence Health Systems, Callable 10/01/2014 @ 100 | ||||||||
5.250%, 10/01/2022 | 1,000 | 1,044 | ||||||
Salem Hospital Facilities Authority, Callable 08/15/2008 @ 101 | ||||||||
5.250%, 08/15/2014 | 1,000 | 1,023 | ||||||
Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A | ||||||||
5.000%, 03/01/2012 | 690 | 718 | ||||||
6,566 | ||||||||
Housing – 0.5% | ||||||||
Oregon State Housing & Community Services, Series A, Callable 07/01/2006 @ 102 | ||||||||
6.000%, 07/01/2016 | 5 | 5 | ||||||
Oregon State Housing & Community Services, Series A, Callable until 06/30/2017 @ 100 | ||||||||
6.400%, 07/01/2018 | 230 | 231 | ||||||
Oregon State Housing & Community Services, Series E, Callable 01/01/2010 @ 100 (FHA) | ||||||||
5.750%, 07/01/2013 | 365 | 370 | ||||||
606 | ||||||||
Recreational Facility Authority – 0.9% | ||||||||
Portland Urban Renewal & Redevelopment, Convention Center, Series A, Callable 06/15/2010 @ 101 (AMBAC) | ||||||||
5.750%, 06/15/2015 | 1,000 | 1,071 | ||||||
Tax Revenue – 2.2% | ||||||||
Medford Urban Renewal Agency, Callable 01/01/2013 @ 101 | ||||||||
4.500%, 06/01/2013 | 1,010 | 1,025 | ||||||
Oregon State Department of Administrative Services Lottery, Series A, Callable 04/01/2010 @ 100 (FSA) | ||||||||
5.000%, 04/01/2012 | 1,050 | 1,085 | ||||||
Tri-County Metropolitan Transportation District, Series 1 (MGT) | ||||||||
4.900%, 06/01/2009 | 500 | 511 | ||||||
2,621 | ||||||||
Transportation – 7.6% | ||||||||
Oregon State Department of Transportation, Highway User Tax, Pre-refunded 11/15/2010 @ 100 | ||||||||
5.125%, 11/15/2014 (a) | 2,260 | 2,367 | ||||||
Oregon State Department of Transportation, Highway User Tax, Series A, Callable 11/15/2014 @ 100 | ||||||||
5.000%, 11/15/2020 | 1,085 | 1,126 | ||||||
5.000%, 11/15/2024 | 1,325 | 1,364 | ||||||
Oregon State Department of Transportation, Highway User Tax, Series A, Pre-refunded 11/15/2012 @ 100 | ||||||||
5.500%, 11/15/2016 (a) | 1,000 | 1,083 | ||||||
Portland International Airport, Series 12-A, Callable 01/01/2009 @ 101 (FGIC) | ||||||||
5.250%, 07/01/2011 | 1,165 | 1,209 | ||||||
5.250%, 07/01/2012 | 2,000 | 2,063 | ||||||
9,212 | ||||||||
Utilities – 8.3% | ||||||||
Eugene Electric Utilities, Callable 08/01/2006 @ 100 (FSA) | ||||||||
5.375%, 08/01/2011 | 1,195 | 1,196 | ||||||
Eugene Electric Utilities, Callable 08/01/2007 @ 100 (FSA) | ||||||||
5.000%, 08/01/2011 | 1,305 | 1,319 | ||||||
Eugene Electric Utilities, Callable 08/01/2008 @ 100 (FSA) | ||||||||
4.800%, 08/01/2013 | 690 | 699 | ||||||
Port of St. Helens Pollution Control, Portland General Electric | ||||||||
4.800%, 04/01/2010 | 2,450 | 2,444 | ||||||
4.800%, 06/01/2010 | 400 | 399 | ||||||
Washington County Clean Water Services (MBIA) | ||||||||
5.000%, 10/01/2014 | 1,000 | 1,058 |
The accompanying notes are an integral part of the financial statements.
88 First American Funds Annual Report 2006
Table of Contents
Oregon Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Washington County Clean Water Services, Callable 10/01/2011 @ 100 (FGIC) | |||||||||
5.125%, 10/01/2014 | $ | 1,790 | $ | 1,875 | |||||
Washington County Unified Sewer Agency, Series 1 (FGIC) | |||||||||
5.750%, 10/01/2008 | 1,000 | 1,040 | |||||||
10,030 | |||||||||
Total Revenue Bonds | 41,836 | ||||||||
General Obligations – 58.1% | |||||||||
Chemeketa Community College District, Escrowed to Maturity (FGIC) | |||||||||
5.500%, 06/01/2013 (b) | 2,170 | 2,359 | |||||||
Clackamas Community College District, Callable 05/01/2016 @ 100 (MBIA) | |||||||||
5.000%, 05/01/2019 | 1,145 | 1,199 | |||||||
Clackamas County School District #7, Lake Oswego, Pre-refunded 06/01/2011 @ 100 | |||||||||
5.500%, 06/01/2012 (a) | 1,240 | 1,322 | |||||||
Clackamas County School District #7J, Lake Oswego (FSA) | |||||||||
5.250%, 06/01/2025 | 200 | 217 | |||||||
Clackamas County School District #86, Canby, Callable 06/15/2015 @ 100 (FSA) | |||||||||
5.000%, 06/15/2024 | 1,500 | 1,548 | |||||||
Clackamas County School District #86, Canby, Callable 06/15/2015 @ 100 (FSA) (SBG) | |||||||||
5.000%, 06/15/2018 | 1,000 | 1,047 | |||||||
5.000%, 06/15/2021 | 1,305 | 1,355 | |||||||
Clackamas County School District #86, Canby, Pre-refunded 06/15/2010 @ 100 (SBG) | |||||||||
5.500%, 06/15/2015 (a) | 1,835 | 1,940 | |||||||
Columbia County School District #502, Zero Coupon Bond (FGIC) | |||||||||
3.900%, 06/01/2012 (c) | 1,530 | 1,196 | |||||||
Deschutes & Jefferson Counties School District #2, Pre-refunded 06/15/2011 @ 100 | |||||||||
5.500%, 06/15/2014 (a) | 1,725 | 1,844 | |||||||
Deschutes & Jefferson Counties School District #2-J, Redmond, Series A (FGIC) (SBG) | |||||||||
5.000%, 06/15/2013 | 1,250 | 1,317 | |||||||
Deschutes & Jefferson Counties School District #2-J, Redmond, Series B, Zero Coupon Bond (FGIC) (SBG) | |||||||||
5.090%, 06/15/2021 (c) | 1,000 | 489 | |||||||
Deschutes County, Callable 12/01/2012 @ 100 (FSA) | |||||||||
5.000%, 12/01/2014 | 1,755 | 1,839 | |||||||
Hood River County School District, Callable 06/15/2011 @ 100 (SBG) | |||||||||
5.250%, 06/15/2016 | 1,030 | 1,082 | |||||||
Jackson County School District #549, Medford (SBG) | |||||||||
5.000%, 06/15/2012 | 2,000 | 2,100 | |||||||
Lake Oswego (MBIA) | |||||||||
5.250%, 06/01/2013 | 1,035 | 1,106 | |||||||
Lane & Douglas Counties School District #97-J (FGIC) (SBG) | |||||||||
5.375%, 06/15/2016 | 1,235 | 1,342 | |||||||
Lane County School District #4, Eugene (FGIC) | |||||||||
5.000%, 07/01/2011 | 1,785 | 1,870 | |||||||
Lane County School District #40, Creswell, Callable 06/15/2010 @ 100 (SBG) | |||||||||
5.000%, 06/15/2011 | 1,120 | 1,162 | |||||||
Lane County School District #52, Bethel, Pre-refunded 06/15/2010 @ 100 (SBG) | |||||||||
5.350%, 06/15/2011 (a) | 1,285 | 1,352 | |||||||
Linn County Community School District, Pre-refunded 06/15/2013 @ 100 (FGIC) (SBG) | |||||||||
5.550%, 06/15/2021 (a) | 1,000 | 1,092 | |||||||
McMinnville School District #40 (FSA) | |||||||||
5.500%, 06/15/2012 | 620 | 668 | |||||||
5.500%, 06/15/2013 | 1,000 | 1,081 | |||||||
Metro, Callable 09/01/2010 @ 102 | |||||||||
5.250%, 09/01/2014 | 1,000 | 1,061 | |||||||
Morrow County School District #1 (FSA) (SBG) | |||||||||
5.000%, 06/15/2014 | 605 | 638 | |||||||
Multnomah County, Series A, Pre-refunded 04/01/2010 @ 100 | |||||||||
5.000%, 04/01/2011 (a) | 1,000 | 1,038 | |||||||
5.125%, 04/01/2013 (a) | 1,000 | 1,042 | |||||||
Multnomah County School District #7, Reynolds, Callable 06/01/2010 @ 100 (MBIA) | |||||||||
5.000%, 06/01/2021 | 1,545 | 1,585 | |||||||
Multnomah County School District #7, Reynolds, Pre-refunded 06/15/2011 @ 100 (SBG) | |||||||||
5.625%, 06/15/2015 (a) | 1,000 | 1,075 | |||||||
Multnomah-Clackamas County School District #10, Gresham-Barlow, Pre-refunded 06/15/2011 @ 100 (FSA) (SBG) | |||||||||
5.500%, 06/15/2013 (a) | 1,780 | 1,903 | |||||||
Multnomah-Clackamas County School District #10JT, Gresham-Barlow (FSA) (SBG) | |||||||||
5.250%, 06/15/2017 | 1,000 | 1,080 | |||||||
Multnomah-Clackamas County School District #28-302, Centennial, Pre-refunded 06/15/2011 @ 100 (FGIC) (SBG) | |||||||||
5.500%, 06/15/2014 (a) | 1,500 | 1,604 | |||||||
Oregon State Board of Higher Education, Series D, Callable 08/01/2014 @ 100 | |||||||||
5.000%, 08/01/2020 | 1,000 | 1,034 | |||||||
Oregon State Pollution Control, Series A, Callable 11/01/2007 @ 100 | |||||||||
4.875%, 11/01/2011 | 455 | 460 | |||||||
Portland Community College Services, Pre-refunded 06/01/2011 @ 100 | |||||||||
5.375%, 06/01/2015 (a) | 1,375 | 1,462 | |||||||
Portland Emergency Facilities, Series A, Callable 06/01/2009 @ 100 | |||||||||
5.000%, 06/01/2012 | 1,060 | 1,088 | |||||||
Puerto Rico Commonwealth, Government Development, Series B | |||||||||
5.000%, 12/01/2014 | 1,000 | 1,029 | |||||||
Puerto Rico Public Buildings Authority, Series J, Callable 07/01/2012 @ 100 (AMBAC) (COMGTY) | |||||||||
5.000%, 07/01/2036 | 1,000 | 1,050 | |||||||
Rogue Community College District, Callable 06/15/2015 @ 100 (MBIA) (SBG) | |||||||||
5.000%, 06/15/2022 | 1,000 | 1,036 | |||||||
Salem-Keizer School District #24-J, Callable 06/01/2008 @ 100 (FSA) | |||||||||
5.100%, 06/01/2012 | 2,000 | 2,039 | |||||||
Salem-Keizer School District #24-J, Pre-refunded 06/01/2009 @ 100 (SBG) | |||||||||
5.250%, 06/01/2012 (a) | 1,000 | 1,038 | |||||||
Tri-County Metropolitan Transportation District, Light Rail Extension, Series A, Callable 07/01/2009 @ 101 | |||||||||
5.250%, 07/01/2012 | 1,000 | 1,043 | |||||||
Tualatin Hills Park & Recreation District (FGIC) | |||||||||
5.750%, 03/01/2013 | 870 | 954 | |||||||
Umatilla County School District #016-R, Pendleton (FGIC) | |||||||||
5.250%, 07/01/2014 | 1,540 | 1,654 |
First American Funds Annual Report 2006 89
Table of Contents
Schedule of Investments continued
Oregon Intermediate Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Wasco County School District #12 | |||||||||
5.500%, 06/15/2014 | $ | 1,080 | $ | 1,177 | |||||
Washington, Multnomah & Yamill Counties School District #1-J | |||||||||
5.000%, 11/01/2014 | 1,000 | 1,058 | |||||||
Washington, Multnomah & Yamill Counties School District #1-J, Pre-refunded 06/01/2009 @ 100 | |||||||||
5.250%, 06/01/2012 (a) | 1,185 | 1,229 | |||||||
Washington & Clackamas Counties School District #23-J, Tigard (FGIC) | |||||||||
5.250%, 06/01/2011 | 1,335 | 1,412 | |||||||
5.500%, 06/01/2013 | 1,000 | 1,084 | |||||||
Washington & Clackamas Counties School District #23-J, Tigard, Zero Coupon Bond | |||||||||
5.820%, 06/15/2014 (c) | 1,030 | 725 | |||||||
Washington County, Callable 06/01/2016 @ 102 | |||||||||
5.000%, 06/01/2022 | 2,000 | 2,084 | |||||||
Washington County School District #48-J, Beaverton, Series A, Callable 12/01/2014 @ 100 (FSA) | |||||||||
5.000%, 06/01/2016 | 1,500 | 1,580 | |||||||
Wilsonville, Callable 06/01/2008 @ 100 | |||||||||
5.000%, 12/01/2010 | 255 | 257 | |||||||
Yamhill County School District #29-J, Newberg (FGIC) (SBG) | |||||||||
5.250%, 06/15/2015 | 2,010 | 2,166 | |||||||
5.250%, 06/15/2016 | 1,835 | 1,975 | |||||||
Total General Obligations | 70,187 | ||||||||
Certificates of Participation – 6.2% | |||||||||
Multnomah County, Callable 08/01/2008 @ 101 (MLO) | |||||||||
4.750%, 08/01/2011 | 1,685 | 1,720 | |||||||
Oregon State Department of Administrative Services, Series A, Callable 05/01/2009 @ 101 (AMBAC) (MLO) | |||||||||
5.000%, 05/01/2014 | 1,240 | 1,281 | |||||||
Oregon State Department of Administrative Services, Series A, Callable 05/01/2013 @ 100 (FSA) (MLO) | |||||||||
5.000%, 05/01/2014 | 1,200 | 1,254 | |||||||
Oregon State Department of Administrative Services, Series A, Callable 11/01/2016 @ 100 (FGIC) (MLO) | |||||||||
5.000%, 11/01/2018 | 1,060 | 1,114 | |||||||
Oregon State Department of Administrative Services, Series B, Callable 11/01/2007 @ 101 (AMBAC) (MLO) | |||||||||
5.000%, 11/01/2011 | 315 | 322 | |||||||
Oregon State Department of Administrative Services, Series B, Callable 05/01/2014 @ 100 (FSA) (MLO) | |||||||||
5.000%, 05/01/2018 | 1,680 | 1,739 | |||||||
Total Certificates of Participation | 7,430 | ||||||||
Total Municipal Bonds (Cost $117,869) | 119,453 | ||||||||
Short-Term Investment – 0.3% | |||||||||
First American Tax Free Obligations Fund, Class Z (d) (Cost $356) | 355,612 | 356 | |||||||
Total Investments – 99.2% (Cost $118,225) | 119,809 | ||||||||
Other Assets and Liabilities, Net – 0.8% | 991 | ||||||||
Total Net Assets – 100.0% | $ | 120,800 | |||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, this bond may still be subject to call at the call date and price indicated. |
(c) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(d) | 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. |
AMBAC – American Municipal Bond Assurance Corporation
COMGTY – Commonwealth Guaranty
FGIC – Financial Guaranty Insurance Corporation
FHA – Federal Housing Authority
FSA – Financial Security Assurance
MBIA – Municipal Bond Insurance Association
MGT – Morgan Guaranty Trust
MLO – Municipal Lease Obligation
RAAI – Radian Asset Assurance Inc.
SBG – School Board Guaranty
The accompanying notes are an integral part of the financial statements.
90 First American Funds Annual Report 2006
Table of Contents
Short Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 99.9% | |||||||||
Alabama – 3.2% | |||||||||
Revenue Bonds – 2.1% | |||||||||
Foley Utilities Board, Escrowed to Maturity, Callable 09/01/2006 @ 100 | |||||||||
6.000%, 03/01/2007 (a) | $ | 1,500 | $ | 1,522 | |||||
Jefferson County Limited Obligation School Warrant, Series A | |||||||||
5.000%, 01/01/2008 | 3,500 | 3,550 | |||||||
5,072 | |||||||||
General Obligations – 1.1% | |||||||||
Homewood Warrant, Sewer 7, Escrowed to Maturity, Callable until 02/28/2007 @ 100 | |||||||||
6.125%, 03/01/2007 (a) | 1,340 | 1,361 | |||||||
Mobile Warrant, Escrowed to Maturity, Callable until 12/14/2007 @ 100 | |||||||||
6.200%, 02/15/2007 (a) | 1,280 | 1,298 | |||||||
2,659 | |||||||||
7,731 | |||||||||
Arizona – 6.0% | |||||||||
Revenue Bonds – 6.0% | |||||||||
Arizona Health Facilities Authority, Community Behavioral Health Property (LOC: Wells Fargo Bank) (VRDO) | |||||||||
3.970%, 08/01/2025 (b) | 1,065 | 1,065 | |||||||
Glendale Industrial Development Authority | |||||||||
4.250%, 05/15/2008 | 1,240 | 1,243 | |||||||
Maricopa County Hospital, Sun Health Corporation | |||||||||
5.000%, 04/01/2011 | 3,815 | 3,916 | |||||||
Salt River Project, Agricultural Improvement & Power District | |||||||||
5.000%, 12/01/2009 | 5,500 | 5,678 | |||||||
Tempe Industrial Development Authority, Series A | |||||||||
4.500%, 12/01/2006 | 1,000 | 999 | |||||||
University Medical Center | |||||||||
5.000%, 07/01/2007 | 300 | 302 | |||||||
5.000%, 07/01/2008 | 700 | 710 | |||||||
5.000%, 07/01/2009 | 500 | 510 | |||||||
14,423 | |||||||||
California – 0.7% | |||||||||
Revenue Bonds – 0.7% | |||||||||
California Statewide Community Development Authority, Daughters of Charity Health | |||||||||
5.000%, 07/01/2009 | 500 | 511 | |||||||
Contra Costa Transportation Authority, Series A, Escrowed to Maturity, Callable until 02/28/2007 @ 100 | |||||||||
6.875%, 03/01/2007 (a) | 1,070 | 1,092 | |||||||
1,603 | |||||||||
Colorado – 3.1% | |||||||||
Revenue Bonds – 3.1% | |||||||||
Colorado Health Facilities Authority, Covenant Retirement Communities | |||||||||
4.500%, 12/01/2009 | 500 | 501 | |||||||
Colorado Health Facilities Authority, Evangelical Lutheran | |||||||||
5.000%, 06/01/2010 | 435 | 446 | |||||||
Colorado Health Facilities Authority, Vail Valley Medical Center Project | |||||||||
4.000%, 01/15/2007 | 500 | 500 | |||||||
Colorado Housing, Financial & Economic Development Authority, Gressman Enterprises Project (LOC: Wells Fargo Bank) (AMT) (VRDO) | |||||||||
4.070%, 09/01/2025 (b) | 900 | 900 | |||||||
Denver City & County Airport, Series E (AMT) (XLCA) | |||||||||
5.000%, 11/15/2007 | 5,000 | 5,066 | |||||||
7,413 | |||||||||
District of Columbia – 1.2% | |||||||||
General Obligation – 1.2% | |||||||||
District of Columbia, Series A | |||||||||
5.000%, 06/01/2007 | 2,810 | 2,840 | |||||||
Florida – 3.2% | |||||||||
Revenue Bonds – 3.2% | |||||||||
Florida Hurricane Catastrophe Fund Financial Corporation, Series A | |||||||||
5.000%, 07/01/2008 | 5,000 | 5,106 | |||||||
Highlands County Health Facilities Authority, The Adventist Health System, Series B | |||||||||
3.750%, 11/15/2006 | 2,605 | 2,605 | |||||||
7,711 | |||||||||
Georgia – 0.9% | |||||||||
Revenue Bond – 0.9% | |||||||||
Cartersville Development Authority, Sewer Facilities, Anheuser Busch (AMT) | |||||||||
5.625%, 05/01/2009 | 2,075 | 2,151 | |||||||
Illinois – 9.2% | |||||||||
Revenue Bonds – 6.6% | |||||||||
Chicago O’Hare International Airport, 2nd Lien, Passenger Facilities, Series C (MBIA) | |||||||||
5.750%, 01/01/2009 | 1,000 | 1,041 | |||||||
Chicago Sales Tax Revenue | |||||||||
5.000%, 01/01/2011 | 3,165 | 3,294 | |||||||
Illinois Development Finance Authority, People’s Gas, Light & Coke, Series B, Mandatory Put 02/01/2008 @ 100 (AMBAC) | |||||||||
3.050%, 02/01/2033 | 3,000 | 2,945 | |||||||
Illinois Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/2008 @ 100 | |||||||||
3.100%, 03/01/2034 | 2,000 | 1,961 | |||||||
Illinois Finance Authority, Clare at Watertower Project, Series A | |||||||||
5.100%, 05/15/2011 | 1,000 | 988 | |||||||
Illinois Finance Authority, DePaul University, Series A | |||||||||
5.000%, 10/01/2007 | 1,000 | 1,014 | |||||||
5.000%, 10/01/2009 | 2,355 | 2,424 | |||||||
Illinois Finance Authority, Landing at Plymouth Project, Series A | |||||||||
5.000%, 05/15/2011 | 500 | 496 | |||||||
Illinois Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI) | |||||||||
3.375%, 12/01/2006 | 695 | 693 |
First American Funds Annual Report 2006 91
Table of Contents
Schedule of Investments continued
Short Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Illinois Health Facilities Authority, University of Chicago, Hospital & Health (MBIA) | |||||||||
5.000%, 08/15/2007 | $ | 1,000 | $ | 1,013 | |||||
Illinois State Toll Highway Authority, Pre-refunded 07/01/2006 @ 100, Callable until 12/31/2009 @ 100 | |||||||||
6.750%, 01/01/2010 (c) | 10 | 10 | |||||||
15,879 | |||||||||
General Obligations – 2.6% | |||||||||
Champaign County Community Unit School District #4, Partially Escrowed to Maturity | |||||||||
8.300%, 01/01/2007 (a) | 1,120 | 1,144 | |||||||
Chicago, Various Neighborhoods Alive 21-B (MBIA) (SPA: Lloyds TSB Bank) (VRDO) | |||||||||
3.980%, 01/01/2037 (b) | 800 | 800 | |||||||
Cook County High School District #209, Proviso Township, Convertible CABs (FSA) | |||||||||
0.000% through 12/01/2007, | |||||||||
thereafter 4.000%, 12/01/2008 | 1,485 | 1,408 | |||||||
Lake County School District #112, Highland Park | |||||||||
9.000%, 12/01/2006 | 1,655 | 1,689 | |||||||
9.000%, 12/01/2007 | 1,000 | 1,069 | |||||||
6,110 | |||||||||
21,989 | |||||||||
Indiana – 4.0% | |||||||||
Revenue Bonds – 3.6% | |||||||||
Indiana Health Facility Financing Authority, Ascension Health Credit | |||||||||
5.000%, 05/01/2009 | 7,000 | 7,174 | |||||||
New Albany & Floyd County School Building (FSA) (MLO) | |||||||||
5.000%, 01/15/2010 | 1,310 | 1,354 | |||||||
8,528 | |||||||||
General Obligation – 0.4% | |||||||||
Gary Sanitation District, Special Tax District (RAAI) | |||||||||
3.500%, 02/01/2007 | 1,105 | 1,102 | |||||||
9,630 | |||||||||
Iowa – 0.5% | |||||||||
Revenue Bonds – 0.5% | |||||||||
Iowa Finance Authority, Diocese of Sioux City (LOC: Wells Fargo Bank) (VRDO) | |||||||||
3.970%, 03/01/2019 (b) | 655 | 655 | |||||||
Scott County, Ridgecrest Village | |||||||||
4.000%, 11/15/2006 | 500 | 498 | |||||||
1,153 | |||||||||
Kansas – 0.6% | |||||||||
Revenue Bonds – 0.6% | |||||||||
Augusta Electric Generating & Distribution System, Escrowed to Maturity, Callable 11/15/2006 @ 100 | |||||||||
6.700%, 11/15/2007 (a) | 1,440 | 1,462 | |||||||
Kentucky – 0.2% | |||||||||
Revenue Bonds – 0.2% | |||||||||
Kentucky State Turnpike Authority, Escrowed to Maturity, Callable until 06/30/2007 @ 100 | |||||||||
6.125%, 07/01/2007 (a) | 225 | 227 | |||||||
Owensboro Electric, Light & Power, Escrowed to Maturity, Callable 07/01/2006 @ 100 | |||||||||
6.850%, 01/01/2008 (a) | 305 | 313 | |||||||
540 | |||||||||
Louisiana – 4.8% | |||||||||
Revenue Bonds – 1.3% | |||||||||
Louisiana State Health & Education Authority, Lambeth House Project, Pre-refunded 10/01/2006 @ 102 | |||||||||
9.000%, 10/01/2026 (c) | 1,000 | 1,033 | |||||||
Tangipahoa Parish Hospital District #1, North Oaks Medical Center Project | |||||||||
5.000%, 02/01/2011 | 2,035 | 2,094 | |||||||
3,127 | |||||||||
General Obligation – 3.5% | |||||||||
Louisiana State, Series A | |||||||||
5.000%, 08/01/2009 | 8,000 | 8,239 | |||||||
11,366 | |||||||||
Massachusetts – 0.8% | |||||||||
General Obligation – 0.8% | |||||||||
Massachusetts State, Series A (FSA) | |||||||||
5.250%, 01/01/2009 | 1,760 | 1,816 | |||||||
Michigan – 1.4% | |||||||||
Revenue Bonds – 1.4% | |||||||||
Detroit Water Supply Systems, Series D (MBIA) (SPA: Bank One) (VRDO) | |||||||||
3.980%, 07/01/2033 (b) | 1,000 | 1,000 | |||||||
Michigan State Hospital Finance Authority, Harper-Grace Hospital, Escrowed to Maturity, Callable until 04/30/2009 @ 100 | |||||||||
7.125%, 05/01/2009 (a) | 245 | 257 | |||||||
Michigan State Hospital Finance Authority, Marquette General Hospital Obligated Group | |||||||||
5.000%, 05/15/2011 | 1,000 | 1,021 | |||||||
Michigan State Hospital Finance Authority, Oakwood Obligated Group | |||||||||
5.000%, 11/01/2006 | 1,000 | 1,004 | |||||||
3,282 | |||||||||
Minnesota – 5.0% | |||||||||
Revenue Bonds – 5.0% | |||||||||
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/2006 @ 102.50, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA) | |||||||||
3.050%, 06/15/2034 | 2,000 | 1,936 | |||||||
Minneapolis Children’s Theatre Project (LOC: Wells Fargo Bank) (VRDO) | |||||||||
3.920%, 10/01/2033 (b) | 1,500 | 1,500 | |||||||
Minneapolis Healthcare System, Allina Health System, Series A | |||||||||
5.000%, 11/15/2006 | 1,895 | 1,903 |
The accompanying notes are an integral part of the financial statements.
92 First American Funds Annual Report 2006
Table of Contents
Short Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Minneapolis Healthcare System, Fairview Health Services, Series B (AMBAC) (SPA: Royal Bank of Canada) (VRDO) | |||||||||
3.960%, 11/15/2029 (b) | $ | 400 | $ | 400 | |||||
Minneapolis Nursing Home, Catholic Eldercare Project (LOC: Wells Fargo Bank) (VRDO) | |||||||||
3.920%, 12/01/2022 (b) | 1,220 | 1,220 | |||||||
Minnesota Municipal Power Agency | |||||||||
4.500%, 10/01/2010 | 1,000 | 1,013 | |||||||
Minnesota State Higher Education Facilities Authority, Bethel College, Series 5 (LOC: Allied Irish Bank) (VRDO) | |||||||||
4.040%, 06/01/2034 (b) | 1,450 | 1,450 | |||||||
Minnesota State Higher Education Facilities Authority, Series 4S, Mandatory Put 04/01/2008 @ 100 (LOC: Allied Irish Bank) | |||||||||
4.600%, 04/01/2028 (b) | 815 | 821 | |||||||
Monticello, Big Lake Community Hospital District, Series C | |||||||||
4.250%, 12/01/2007 | 865 | 864 | |||||||
Northwestern Mutual Life Insurance Company Tax-Exempt Mortgage Trust #1 (LOC: Credit Suisse First Boston) | |||||||||
7.605%, 02/15/2009 (b) | 19 | 19 | |||||||
St. Paul Housing & Redevelopment Authority, Cretin-Derham Project (LOC: Allied Irish Bank) (VRDO) | |||||||||
3.970%, 02/01/2026 (b) | 300 | 300 | |||||||
St. Paul Port Authority Lease Revenue, HealthEast Midway Campus (MLO) | |||||||||
5.000%, 05/01/2010 | 625 | 627 | |||||||
12,053 | |||||||||
Mississippi – 1.3% | |||||||||
General Obligation – 1.3% | |||||||||
Mississippi State, Escrowed to Maturity | |||||||||
6.200%, 02/01/2008 (a) | 3,000 | 3,097 | |||||||
Missouri – 0.6% | |||||||||
General Obligation – 0.6% | |||||||||
Blue Springs Neighborhood Improvements, Series A, Callable 03/01/2007 @ 100 | |||||||||
4.125%, 03/01/2009 | 1,500 | 1,501 | |||||||
Nebraska – 1.7% | |||||||||
Revenue Bonds – 1.7% | |||||||||
Douglas County Hospital Authority #002, Nebraska Medical Center (GTY) | |||||||||
5.000%, 11/15/2007 | 1,000 | 1,012 | |||||||
5.000%, 11/15/2008 | 1,000 | 1,019 | |||||||
Nebraska Investment Finance Authority, Catholic Health Initiatives, Series A | |||||||||
5.500%, 12/01/2007 | 2,000 | 2,042 | |||||||
4,073 | |||||||||
Nevada – 2.4% | |||||||||
Revenue Bonds – 2.4% | |||||||||
Clark County Pollution Control, Series A, Mandatory Put 03/02/2009 @ 100 (AMT) | |||||||||
3.250%, 06/01/2031 (b) | 3,000 | 2,887 | |||||||
Clark County Pollution Control, Series C, Mandatory Put 03/02/2009 @ 100 (AMT) | |||||||||
3.250%, 06/01/2031 (b) | 3,000 | 2,887 | |||||||
5,774 | |||||||||
New Hampshire – 0.8% | |||||||||
Revenue Bond – 0.8% | |||||||||
New Hampshire Health & Education Facilities Authority, Dartmouth College (SPA: J.P. Morgan Chase Bank) (VRDO) | |||||||||
3.930%, 06/01/2023 (b) | 1,875 | $ | 1,875 | ||||||
New Jersey – 6.8% | |||||||||
Revenue Bonds – 6.1% | |||||||||
New Jersey Economic Development Authority, Cigarette Tax | |||||||||
5.000%, 06/15/2007 | 2,000 | 2,017 | |||||||
New Jersey Economic Development Authority, School Facilities Construction, Series O | |||||||||
5.000%, 03/01/2009 | 3,000 | 3,079 | |||||||
New Jersey Healthcare Facilities Financing Authority, Capital Health Systems, Series A | |||||||||
5.000%, 07/01/2007 | 2,465 | 2,482 | |||||||
5.000%, 07/01/2008 | 1,585 | 1,602 | |||||||
New Jersey State Transportation System, Series C | |||||||||
5.000%, 06/15/2009 | 3,490 | 3,595 | |||||||
New Jersey State Turnpike Authority, Escrowed to Maturity | |||||||||
6.750%, 01/01/2009 (a) | 1,895 | 1,909 | |||||||
14,684 | |||||||||
General Obligation – 0.7% | |||||||||
Bayonne | |||||||||
5.000%, 10/27/2006 | 1,500 | 1,501 | |||||||
16,185 | |||||||||
New Mexico – 0.8% | |||||||||
Revenue Bond – 0.8% | |||||||||
Gallup Pollution Control, Tri-state Generation (AMBAC) | |||||||||
5.000%, 08/15/2010 | 1,910 | 1,977 | |||||||
New York – 3.5% | |||||||||
Revenue Bonds – 3.5% | |||||||||
Monroe County Airport Authority, Greater Rochester International (AMT) (MBIA) | |||||||||
5.000%, 01/01/2009 | 1,175 | 1,198 | |||||||
New York State Dormitory Authority, Rochester General Hospital | |||||||||
5.000%, 12/01/2010 | 1,970 | 2,035 | |||||||
New York Urban Development, Correctional & Youth Facilities, Series A, Mandatory Put 01/01/2009 @ 100 (MLO) | |||||||||
5.250%, 01/01/2021 | 2,000 | 2,059 | |||||||
Port Authority of New York & New Jersey (AMT) | |||||||||
5.000%, 07/15/2007 | 3,125 | 3,159 | |||||||
8,451 | |||||||||
North Carolina – 1.1% | |||||||||
Revenue Bonds – 1.1% | |||||||||
North Carolina Medical Care Commission, Health Care Facilities, Series A | |||||||||
2.500%, 11/01/2007 | 1,000 | 980 | |||||||
University North Carolina Chapel Hill, University Hospital, Series A | |||||||||
5.000%, 02/01/2010 | 1,060 | 1,089 | |||||||
5.000%, 02/01/2011 | 500 | 517 | |||||||
2,586 | |||||||||
First American Funds Annual Report 2006 93
Table of Contents
Schedule of Investments continued
Short Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Ohio – 2.5% | |||||||||
Revenue Bonds – 2.5% | |||||||||
Allen County Economic Development, Young Men’s Christian Association, Mandatory Put 04/14/2008 @ 100 | |||||||||
3.000%, 04/15/2018 (b) | $ | 5,000 | $ | 4,904 | |||||
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project | |||||||||
3.000%, 12/01/2006 | 1,090 | 1,086 | |||||||
5,990 | |||||||||
Oklahoma – 0.5% | |||||||||
Revenue Bond – 0.5% | |||||||||
Ponca City Utility Authority, Escrowed to Maturity, Callable until 06/30/2008 @ 100 | |||||||||
6.000%, 07/01/2008 (a) | 1,110 | 1,156 | |||||||
Pennsylvania – 3.8% | |||||||||
Revenue Bonds – 3.1% | |||||||||
Chartiers Valley Industrial & Commercial Development Authority, Friendship Village South, Series A | |||||||||
3.150%, 08/15/2006 | 400 | 399 | |||||||
3.450%, 08/15/2007 | 300 | 296 | |||||||
Hampden Township Sewer Authority, Escrowed to Maturity, Callable until 03/31/2007 @ 100 | |||||||||
6.150%, 04/01/2007 (a) | 800 | 810 | |||||||
Pennsylvania Higher Education Facilities Authority, University of Pennsylvania, Health Systems, Series B | |||||||||
5.000%, 08/15/2008 | 5,000 | 5,100 | |||||||
Ringgold School District Authority, Escrowed to Maturity, Callable until 01/14/2008 @ 100 | |||||||||
6.700%, 01/15/2008 (a) | 815 | 839 | |||||||
7,444 | |||||||||
General Obligation – 0.7% | |||||||||
Pittsburgh, Series A (MBIA) | |||||||||
5.000%, 09/01/2009 | 1,515 | 1,564 | |||||||
9,008 | |||||||||
Puerto Rico – 1.8% | |||||||||
General Obligation – 1.8% | |||||||||
Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/2008 @ 100 | |||||||||
5.000%, 07/01/2018 | 4,250 | 4,298 | |||||||
Rhode Island – 0.9% | |||||||||
Revenue Bond – 0.9% | |||||||||
Rhode Island Housing & Mortgage Financial, Homeowner Opportunity, Series 50-C (AMT) | |||||||||
4.000%, 04/01/2008 | 2,070 | 2,067 | |||||||
South Carolina – 3.9% | |||||||||
Revenue Bonds – 3.9% | |||||||||
Charleston County Hospital Facilities, Carealliance Health Services, Series A | |||||||||
5.000%, 08/15/2007 | 700 | 706 | |||||||
Piedmont Municipal Power Agency, Subseries B-1 (MBIA) (SPA: J.P. Morgan Chase) (VRDO) | |||||||||
3.950%, 01/01/2034 (b) | 5,600 | 5,600 | |||||||
Piedmont Municipal Power Agency, Subseries B-3 (AMBAC) (VRDO) | |||||||||
3.950%, 01/01/2034 (b) | 1,000 | 1,000 | |||||||
Richland-Lexington Columbia Apartments (AMT) (CIFG) | |||||||||
4.000%, 01/01/2007 | 670 | 671 | |||||||
4.000%, 01/01/2008 | 700 | 701 | |||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C | |||||||||
4.500%, 08/01/2006 | 660 | 660 | |||||||
9,338 | |||||||||
South Dakota – 3.8% | |||||||||
Revenue Bonds – 3.8% | |||||||||
Sioux Falls Health Facilities, Dow Rummel Village Project, Series B, Mandatory Put 11/15/2007 @ 100, Callable 11/15/2007 @ 100 | |||||||||
4.750%, 11/15/2033 | 1,675 | 1,675 | |||||||
South Dakota State Health & Educational Facilities Authority, Avera Health, Callable 07/01/2008 @ 100 (AMBAC) | |||||||||
4.000%, 07/01/2031 | 7,500 | 7,500 | |||||||
9,175 | |||||||||
Tennessee – 1.3% | |||||||||
Revenue Bonds – 1.3% | |||||||||
Clarksville Natural Gas Acquisition Corporation | |||||||||
5.000%, 12/15/2008 | 1,500 | 1,534 | |||||||
Sullivan County Health Educational & Housing Facilities, Wellmont Health Systems Project | |||||||||
4.500%, 09/01/2006 | 1,500 | 1,500 | |||||||
3,034 | |||||||||
Texas – 9.4% | |||||||||
Revenue Bonds – 6.0% | |||||||||
Brazos River Harbor Naval District, Brazoria County Environmental, Dow Chemical Project, Series A-3, Mandatory Put 05/15/2007 @ 100 (AMT) | |||||||||
4.950%, 05/15/2033 | 3,000 | 3,017 | |||||||
Brownsville Utility Systems, Series A (MBIA) (SPA: Bank of America) (VRDO) | |||||||||
3.950%, 09/01/2027 (b) | 2,875 | 2,875 | |||||||
Dallas Fort Worth International Airport, Series A (AMT) | |||||||||
5.000%, 11/01/2007 | 1,500 | 1,516 | |||||||
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/2009 @ 100 | |||||||||
4.900%, 02/15/2010 | 1,020 | 1,020 | |||||||
Jefferson County Health Facilities Development Authority, Baptist Hospitals (AMBAC) (FHA) | |||||||||
4.200%, 08/15/2007 | 1,450 | 1,454 | |||||||
North Central Texas Health Facility Development, Baylor Health Care Systems Project | |||||||||
5.500%, 05/15/2007 | 1,000 | 1,012 | |||||||
Richardson Hospital Authority | |||||||||
4.000%, 12/01/2006 | 1,165 | 1,164 | |||||||
5.000%, 12/01/2007 | 1,230 | 1,241 |
The accompanying notes are an integral part of the financial statements.
94 First American Funds Annual Report 2006
Table of Contents
Short Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Southeast Hospital Financing Agency, Memorial Hospital System Project, Escrowed to Maturity, Callable until 11/30/2008 @ 100 | |||||||||
8.500%, 12/01/2008 (a) | $ | 520 | $ | 549 | |||||
Tyler Health Facilities Development, Mother Frances Hospital | |||||||||
5.000%, 07/01/2007 | 575 | 580 | |||||||
14,428 | |||||||||
General Obligations – 3.4% | |||||||||
Donna Independent School District | |||||||||
4.000%, 02/15/2011 | 1,505 | 1,506 | |||||||
Northside Independent School District, Series B, Pre-refunded 08/01/2006 @ 100, Mandatory Put 08/01/2006 @ 100 (PSFG) (SPA: Dexia Credit) | |||||||||
2.450%, 08/01/2033 (b) (c) | 6,600 | 6,591 | |||||||
8,097 | |||||||||
22,525 | |||||||||
Utah – 1.6% | |||||||||
Revenue Bonds – 1.6% | |||||||||
Jordanelle Special Services District, Tuhaye Project (LOC: Wells Fargo Bank) | |||||||||
3.970%, 09/01/2025 (b) | 1,900 | 1,900 | |||||||
Utah State Board, University of Utah Hospital, Series A (MBIA) | |||||||||
5.000%, 08/01/2009 | 1,855 | 1,908 | |||||||
3,808 | |||||||||
Virginia – 1.8% | |||||||||
Revenue Bonds – 1.8% | |||||||||
Chesapeake Hospital Authority, Chesapeake General Hospital, Series A | |||||||||
5.000%, 07/01/2007 | 2,300 | 2,324 | |||||||
Virginia State Housing Development Authority (AMT) | |||||||||
3.600%, 01/01/2009 | 2,000 | 1,986 | |||||||
4,310 | |||||||||
Washington – 1.7% | |||||||||
Revenue Bonds – 1.7% | |||||||||
Portland & Seattle Intermediate Lien, Series A | |||||||||
5.000%, 03/01/2010 | 2,000 | 2,070 | |||||||
Washington State Higher Educational Facilities Authority, University Puget Sound Project, Series A, Mandatory Put 04/01/2008 @ 100 (LOC: Bank of America) | |||||||||
5.000%, 10/01/2030 | 2,000 | 2,034 | |||||||
4,104 | |||||||||
West Virginia – 1.2% | |||||||||
Revenue Bond – 1.2% | |||||||||
Putnam County Pollution Control, Appalachian Power Company Project, Series E, Mandatory Put 11/01/2006 @ 100 | |||||||||
2.800%, 05/01/2019 (b) | 3,000 | 2,978 | |||||||
Wisconsin – 1.9% | |||||||||
Revenue Bonds – 1.9% | |||||||||
Wisconsin State Health & Educational Facilities Authority, Children’s Hospital of Wisconsin, Series A | |||||||||
4.500%, 08/15/2008 | 1,500 | 1,515 | |||||||
Wisconsin State Health & Educational Facilities Authority, Froedtert & Community Health, Series A | |||||||||
5.000%, 04/01/2010 | 1,000 | 1,030 | |||||||
Wisconsin State Health & Educational Facilities Authority, Gundersen Lutheran, Series A (FSA) | |||||||||
5.000%, 02/15/2008 | 1,000 | 1,017 | |||||||
Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Series A | |||||||||
5.000%, 08/15/2007 | 1,000 | 1,010 | |||||||
4,572 | |||||||||
Total Municipal Bonds (Cost $241,875) | 239,045 | ||||||||
Short-Term Investment – 1.0% | |||||||||
First American Tax Free Obligations Fund, Class Z (d) | |||||||||
(Cost $2,378) | 2,377,549 | 2,378 | |||||||
Total Investments – 100.9% (Cost $244,253) | 241,423 | ||||||||
Other Assets and Liabilities, Net – (0.9)% | (2,202 | ) | |||||||
Total Net Assets – 100.0% | $ | 239,221 | |||||||
(a) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(b) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(c) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(d) | 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. |
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $30,142, which represents 12.6% of total net assets. |
CIFG – CDC IXIS Financial Guaranty
FHA – Federal Housing Authority
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GTY – Assured Guaranty
LOC – Letter of Credit
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
PSFG – Permanent School Fund Guarantee
RAAI – Radian Asset Assurance Inc.
SPA – Standby Purchase Agreement
VRDO – | Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specific intervals not exceeding one year, on up to 30 days notice. Maturity date shown represents final maturity. |
XLCA – XL Capital Assurance Inc.
First American Funds Annual Report 2006 95
Table of Contents
Schedule of Investments continued
Tax Free Fund | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Municipal Bonds – 98.4% | |||||||||
Alabama – 0.8% | |||||||||
Revenue Bonds – 0.8% | |||||||||
Bessemer Water Revenue, Callable 07/01/2006 @ 102 (AMBAC) | |||||||||
5.750%, 07/01/2016 | $ | 2,500 | $ | 2,554 | |||||
Camden Industrial Development Board, Weyerhauser Company, Series A, Callable 12/01/2013 @ 100 | |||||||||
6.125%, 12/01/2024 | 1,000 | 1,079 | |||||||
Camden Industrial Development Board, Weyerhauser Company, Series B, Callable 12/01/2013 @ 100 (AMT) | |||||||||
6.375%, 12/01/2024 | 350 | 378 | |||||||
4,011 | |||||||||
Alaska – 1.7% | |||||||||
Revenue Bonds – 1.3% | |||||||||
Alaska Energy Authority, Bradley Lake, Third Series (FSA) | |||||||||
6.000%, 07/01/2010 | 1,000 | 1,073 | |||||||
6.000%, 07/01/2011 | 4,040 | 4,392 | |||||||
Alaska State Housing Finance Corporation, Series A, Callable 06/01/2007 @ 102 (MBIA) | |||||||||
5.900%, 12/01/2019 | 695 | 708 | |||||||
6,173 | |||||||||
General Obligation – 0.4% | |||||||||
Anchorage, Series B, Callable 07/01/2012 @ 100 (MBIA) | |||||||||
5.000%, 07/01/2022 | 2,000 | 2,051 | |||||||
8,224 | |||||||||
Arizona – 2.2% | |||||||||
Revenue Bonds – 2.2% | |||||||||
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101 | |||||||||
7.500%, 11/15/2023 | 3,000 | 3,336 | |||||||
Arizona State Transportation Board, Pre-refunded 07/01/2009 @ 100 | |||||||||
6.000%, 07/01/2012 (a) | 3,830 | 4,056 | |||||||
Maricopa County Industrial Development Authority, Health Facilities Revenue, Mayo Clinic, Callable 05/15/2016 @ 100 | |||||||||
5.000%, 11/15/2031 | 500 | 509 | |||||||
Maricopa County Industrial Development Authority, Senior Living Healthcare Revenue, Immanuel Care, Series A, Callable 02/20/2016 @ 100 (GNMA) | |||||||||
4.850%, 08/20/2026 | 1,760 | 1,737 | |||||||
Tempe Industrial Development Authority, Friendship Village Project, Series A | |||||||||
5.375%, 12/01/2013 | 1,300 | 1,287 | |||||||
10,925 | |||||||||
Arkansas – 0.3% | |||||||||
Revenue Bond – 0.3% | |||||||||
Washington County Arkansas Hospital, Regional Medical Center, Series B, Callable 02/01/2015 @ 100 | |||||||||
5.000%, 02/01/2030 | 1,500 | 1,482 | |||||||
California – 9.6% | |||||||||
Revenue Bonds – 6.0% | |||||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT) (AGTY) | |||||||||
5.000%, 07/01/2027 | 2,500 | 2,473 | |||||||
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series C, Callable 11/01/2015 @ 101 (AMT) | |||||||||
5.125%, 11/01/2023 | 5,000 | 5,063 | |||||||
California State Department of Water, Series A, Pre-refunded 05/01/2012 @ 101 | |||||||||
5.375%, 05/01/2022 (a) | 4,500 | 4,881 | |||||||
California State Public Works Board Mental Health-Coalinga, Series A, Callable 06/01/2014 @ 100 (MLO) | |||||||||
5.500%, 06/01/2019 | 3,000 | 3,220 | |||||||
California Statewide Communities Development Authority, Los Angeles Jewish Home, Callable 11/01/2013 @ 100 (CMI) | |||||||||
5.250%, 11/15/2023 | 4,000 | 4,125 | |||||||
Chula Vista Industrial Development, San Diego Gas & Electric, Series A, Callable 03/01/2014 @ 102 (AMT) | |||||||||
4.900%, 03/01/2023 | 2,500 | 2,485 | |||||||
Golden State Tobacco Securitization, Series B, Pre-refunded 06/01/2013 @ 100 | |||||||||
5.500%, 06/01/2033 (a) | 6,940 | 7,521 | |||||||
29,768 | |||||||||
General Obligations – 3.6% | |||||||||
California State, Callable 02/01/2013 @ 100 | |||||||||
5.000%, 02/01/2021 | 5,500 | 5,636 | |||||||
California State, Callable 04/01/2009 @ 101 | |||||||||
4.750%, 04/01/2022 | 500 | 501 | |||||||
California State, Callable 03/01/2016 @ 100 | |||||||||
4.500%, 03/01/2030 | 10,000 | 9,363 | |||||||
California State, Callable 02/01/2014 @ 100 | |||||||||
5.000%, 02/01/2033 | 2,000 | 2,014 | |||||||
17,514 | |||||||||
47,282 | |||||||||
Colorado – 3.8% | |||||||||
Revenue Bonds – 3.6% | |||||||||
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT) | |||||||||
5.700%, 07/01/2018 | 1,590 | 1,667 | |||||||
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100 | |||||||||
7.250%, 12/01/2021 (a) | 1,500 | 1,729 | |||||||
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/2012 @ 101 | |||||||||
6.125%, 12/01/2033 | 1,150 | 1,223 | |||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/2012 @ 100 | |||||||||
5.900%, 10/01/2027 | 2,500 | 2,626 | |||||||
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 06/01/2016 @ 100 | |||||||||
5.000%, 06/01/2029 | 2,000 | 1,965 |
The accompanying notes are an integral part of the financial statements.
96 First American Funds Annual Report 2006
Table of Contents
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Colorado State Health Facilities Authority, Parkview Medical Center, Callable 09/01/2011 @ 100 | |||||||||
6.500%, 09/01/2020 | $ | 1,000 | $ | 1,081 | |||||
Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/2012 @ 100 | |||||||||
5.800%, 01/15/2027 | 1,500 | 1,554 | |||||||
La Junta Hospital, Arkansas Valley Medical Center Project, Callable 04/01/2009 @ 101 | |||||||||
6.000%, 04/01/2019 | 1,000 | 1,033 | |||||||
Montrose Memorial Hospital, Callable 12/01/2013 @ 102 | |||||||||
6.000%, 12/01/2028 | 1,000 | 1,045 | |||||||
6.000%, 12/01/2033 | 1,000 | 1,043 | |||||||
Northwest Parkway Public Highway Authority, Zero Coupon Bond (AMBAC) | |||||||||
6.290%, 06/15/2029 (b) | 10,000 | 2,643 | |||||||
17,609 | |||||||||
General Obligation – 0.2% | |||||||||
Antelope Water Systems General Improvement District, Callable 12/01/2015 @ 100 | |||||||||
5.125%, 12/01/2035 | 1,000 | 976 | |||||||
18,585 | |||||||||
Florida – 2.6% | |||||||||
Revenue Bonds – 1.5% | |||||||||
Capital Trust Agency, Fort Lauderdale Project, Callable 01/01/2014 @ 101 (AMT) | |||||||||
5.750%, 01/01/2032 | 1,000 | 1,031 | |||||||
Florida State Department of Transportation, Alligator Alley, Callable 07/01/2007 @ 101 (FGIC) | |||||||||
5.125%, 07/01/2013 | 1,280 | 1,306 | |||||||
Palm Beach County, Park & Recreational Facilities, Pre-refunded 11/01/2006 @ 102 (FSA) | |||||||||
5.250%, 11/01/2016 (a) | 5,000 | 5,123 | |||||||
7,460 | |||||||||
General Obligation – 1.1% | |||||||||
Florida State Department of Transportation, Right-of-Way, Callable 07/01/2006 @ 101 | |||||||||
5.250%, 07/01/2017 | 5,525 | 5,586 | |||||||
13,046 | |||||||||
Georgia – 2.5% | |||||||||
Revenue Bonds – 2.5% | |||||||||
Fulton County Development Authority, Maxon Atlantic Station, Series A, Mandatory Put 03/01/2015 @ 100 (AMT) | |||||||||
5.125%, 03/01/2026 | 2,300 | 2,276 | |||||||
Fulton County Residential Care Facilities, Canterbury Court Project, Series A, Callable 02/15/2014 @ 101 | |||||||||
6.125%, 02/15/2026 | 1,500 | 1,553 | |||||||
6.125%, 02/15/2034 | 2,500 | 2,542 | |||||||
Gainesville & Hall County Hospital Authority, Northeast Georgia Health Systems Project, Callable 05/15/2011 @ 100 | |||||||||
5.500%, 05/15/2031 | 5,000 | 5,107 | |||||||
Georgia Municipal Electric Authority Power, Series BB (MBIA) | |||||||||
5.250%, 01/01/2025 | 1,000 | 1,080 | |||||||
12,558 | |||||||||
Hawaii – 1.7% | |||||||||
General Obligation – 1.7% | |||||||||
Hawaii State, Series CN, Pre-refunded 03/01/2007 @ 102 (FGIC) | |||||||||
5.500%, 03/01/2014 (a) | 8,000 | 8,247 | |||||||
Idaho – 0.4% | |||||||||
Certificates of Participation – 0.4% | |||||||||
Madison County Hospital, Callable 09/01/2016 @ 100 | |||||||||
5.250%, 09/01/2026 | 1,000 | 1,007 | |||||||
5.250%, 09/01/2030 | 1,000 | 1,004 | |||||||
2,011 | |||||||||
Illinois – 10.3% | |||||||||
Revenue Bonds – 6.5% | |||||||||
Bolingbrook, Residential Mortgages, Escrowed to Maturity (FGIC) | |||||||||
7.500%, 08/01/2010 (c) | 990 | 1,061 | |||||||
Illinois Development Finance Authority, Adventist Health System, Pre-refunded 11/15/2009 @ 101 | |||||||||
5.500%, 11/15/2029 (a) | 5,000 | 5,287 | |||||||
Illinois Financial Authority, Clare At Water Tower Project, Series A, Callable 05/15/2016 @ 100 | |||||||||
6.000%, 05/15/2025 | 2,350 | 2,383 | |||||||
Illinois Financial Authority, Friendship Village Schaumburg, Series A, Callable 02/15/2015 @ 100 | |||||||||
5.375%, 02/15/2025 | 1,700 | 1,691 | |||||||
Illinois Financial Authority, Landing at Plymouth Place Project, Series A, Callable 05/15/2016 @ 100 | |||||||||
6.000%, 05/15/2037 | 2,300 | 2,349 | |||||||
Illinois Financial Authority, Luther Oaks Project, Series A, Callable 08/15/2016 @ 100 | |||||||||
6.000%, 08/15/2039 | 2,000 | 2,028 | |||||||
Illinois Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2011 @ 101 | |||||||||
5.875%, 12/01/2031 | 4,500 | 4,617 | |||||||
Illinois Health Facilities Authority, Covenant Retirement Communities, Series A, Callable 12/01/2012 @ 100 (RAAI) | |||||||||
5.500%, 12/01/2022 | 4,000 | 4,182 | |||||||
Illinois Health Facilities Authority, Lutheran Senior Ministries, Series A, Callable 08/15/2011 @ 101 | |||||||||
7.375%, 08/15/2031 | 3,000 | 3,236 | |||||||
Illinois State Development Finance Authority, Pollution Control Illinois Power Company Project, Series A, Pre-refunded 07/01/2006 @ 102 | |||||||||
7.375%, 07/01/2021 (a) | 500 | 510 | |||||||
Illinois State Development Finance Authority, Waste Management Incorporated Project (AMT) | |||||||||
5.850%, 02/01/2007 | 1,000 | 1,009 | |||||||
Illinois State Educational Facilities Authority, Augustana College, Pre-refunded 10/01/2007 @ 100 (CLE) | |||||||||
5.875%, 10/01/2017 (a) | 500 | 513 | |||||||
Illinois State Toll Highway Authority, Series A | |||||||||
6.300%, 01/01/2012 | 1,000 | 1,105 | |||||||
Northern Illinois University, Auxiliary Facilities Systems, Partially Pre-refunded 04/01/2007 @ 100 (FGIC) | |||||||||
5.700%, 04/01/2016 (a) | 1,000 | 1,012 |
First American Funds Annual Report 2006 97
Table of Contents
Schedule of Investments continued
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Rockford Multifamily Housing, Rivers Edge Apartments, Series A, Callable 01/20/2008 @ 102 (AMT) (GNMA) | |||||||||
5.875%, 01/20/2038 | $ | 1,215 | $ | 1,235 | |||||
32,218 | |||||||||
General Obligations – 3.8% | |||||||||
Cook County, Series A (MBIA) | |||||||||
6.250%, 11/15/2012 | 9,090 | 10,153 | |||||||
Cook County Community School District #97, Oak Park, Series B (FGIC) | |||||||||
9.000%, 12/01/2011 | 2,235 | 2,755 | |||||||
Illinois State, Callable 02/01/2007 @ 101 (FGIC) | |||||||||
5.250%, 02/01/2013 | 1,400 | 1,424 | |||||||
Illinois State, Pre-refunded 09/01/2006 @ 102 (MBIA) | |||||||||
5.750%, 05/01/2021 (a) | 1,410 | 1,443 | |||||||
McHenry County Community Unit, School District #20 Woodstock, Series A, Pre-refunded 01/01/2008 @ 100 (FSA) | |||||||||
5.850%, 01/01/2016 (a) | 560 | 577 | |||||||
St. Clair County, Callable 10/01/2009 @ 102 (FGIC) | |||||||||
6.000%, 10/01/2011 | 2,020 | 2,177 | |||||||
18,529 | |||||||||
50,747 | |||||||||
Indiana – 2.9% | |||||||||
Revenue Bonds – 2.9% | |||||||||
Indiana Health & Educational Facilities Hospital Financing Authority, Clarian Health Obligation Group, Series A, Callable 02/15/2016 @ 100 | |||||||||
5.000%, 02/15/2039 | 700 | 691 | |||||||
Indiana State Municipal Power Agency, Power Supply, Series B (MBIA) | |||||||||
6.000%, 01/01/2011 | 1,000 | 1,081 | |||||||
6.000%, 01/01/2012 | 1,000 | 1,093 | |||||||
Indiana Transportation Finance Authority, Series A (AMBAC) | |||||||||
5.750%, 06/01/2012 | 3,185 | 3,467 | |||||||
Indianapolis Airport Authority, Special Facilities, Federal Express Corporation Project (AMT) (AGTY) | |||||||||
5.100%, 01/15/2017 | 3,000 | 3,061 | |||||||
Portage Economic Development, Ameriplex Project, Callable 07/15/2016 @ 100 | |||||||||
5.000%, 07/15/2023 | 1,000 | 977 | |||||||
5.000%, 01/15/2027 | 775 | 746 | |||||||
St. Joseph County Industries Hospital Authority, Madison Center Obligation Group Project, Callable 02/15/2015 @ 100 | |||||||||
5.250%, 02/15/2028 | 3,500 | 3,420 | |||||||
14,536 | |||||||||
Iowa – 1.2% | |||||||||
Revenue Bonds – 1.2% | |||||||||
Iowa Higher Education Loan Authority, Central College Project, Callable 10/01/2011 @ 100 (RAAI) | |||||||||
5.500%, 10/01/2031 | 1,500 | 1,550 | |||||||
Iowa Higher Education Loan Authority, Private College Facility – Simpson College, Callable 12/01/2010 @ 102 | |||||||||
5.100%, 12/01/2035 | 2,000 | 2,014 | |||||||
Iowa Higher Education Loan Authority, Wartburg College, Series A, Callable 10/01/2013 @ 100 | |||||||||
5.100%, 10/01/2025 | 1,635 | 1,601 | |||||||
Muscatine Electric, Escrowed to Maturity, Callable until 12/31/2012 @ 100 | |||||||||
6.700%, 01/01/2013 (c) | 830 | 896 | |||||||
6,061 | |||||||||
Kansas – 0.4% | |||||||||
Revenue Bond – 0.4% | |||||||||
Olathe Senior Living Facility, Catholic Care Campus, Series A, Callable 11/15/2016 @ 100 | |||||||||
6.000%, 11/15/2038 | 2,000 | 2,061 | |||||||
Louisiana – 1.4% | |||||||||
Revenue Bonds – 1.4% | |||||||||
Baton Rouge Sales & Use Tax, Public Improvements, Series A, Callable 08/01/2008 @ 101.50 (FGIC) | |||||||||
5.250%, 08/01/2015 | 2,030 | 2,102 | |||||||
Jefferson Parish, Drain Sales Tax (AMBAC) | |||||||||
5.000%, 11/01/2011 | 1,000 | 1,038 | |||||||
Jefferson Parish, Home Mortgage Authority, Escrowed to Maturity, Callable until 07/31/2011 @ 100 (FGIC) (FHA) | |||||||||
7.100%, 08/01/2011 (c) | 1,000 | 1,118 | |||||||
Lafayette, Public Improvement Sales Tax, Series B (FGIC) | |||||||||
7.000%, 03/01/2008 | 1,000 | 1,048 | |||||||
Louisiana Public Facilities Authority, Tulane University of Louisiana, Series A-1, Callable 11/15/2007 @ 102 (MBIA) | |||||||||
5.100%, 11/15/2014 | 1,500 | 1,532 | |||||||
6,838 | |||||||||
Massachusetts – 0.7% | |||||||||
Revenue Bonds – 0.7% | |||||||||
Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/2012 @ 102 (AMT) | |||||||||
6.500%, 09/01/2035 | 2,500 | 2,545 | |||||||
Massachusetts State Health & Educational Facilities Authority, U Mass Memorial Issue, Series D, Callable 07/01/2015 @ 100 | |||||||||
5.000%, 07/01/2033 | 1,000 | 978 | |||||||
3,523 | |||||||||
Michigan – 1.1% | |||||||||
Revenue Bond – 0.4% | |||||||||
Kent Hospital Financial Authority, Metropolitan Hospital Project, Series A, Callable 07/01/2015 @ 100 | |||||||||
5.250%, 07/01/2030 | 2,000 | 2,000 | |||||||
The accompanying notes are an integral part of the financial statements.
98 First American Funds Annual Report 2006
Table of Contents
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
General Obligations – 0.7% | |||||||||
Thornapple Kellogg School Building & Site, Callable 11/01/2012 @ 100 (MQSBLF) | |||||||||
5.500%, 05/01/2014 | $ | 1,485 | $ | 1,594 | |||||
5.500%, 05/01/2016 | 1,810 | 1,944 | |||||||
3,538 | |||||||||
5,538 | |||||||||
Minnesota – 5.3% | |||||||||
Revenue Bonds – 5.3% | |||||||||
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101 | |||||||||
5.200%, 06/01/2025 | 1,000 | 995 | |||||||
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102 | |||||||||
6.000%, 06/01/2029 | 650 | 664 | |||||||
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100 | |||||||||
5.250%, 02/15/2033 | 3,500 | 3,546 | |||||||
Fergus Falls Health Care Facilities Authority, Series A, Callable until 11/01/2018 @ 100 | |||||||||
7.000%, 11/01/2019 | 150 | 150 | |||||||
Maple Grove Health Care Facilities, North Memorial Health Care, Callable 09/01/2015 @ 100 | |||||||||
4.250%, 09/01/2025 | 1,000 | 913 | |||||||
Minneapolis Healthcare System, Fairview Health Services, Series A, Pre-refunded 05/15/2012 @ 101 | |||||||||
5.625%, 05/15/2032 (a) | 7,000 | 7,621 | |||||||
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A, Callable 11/15/2010 @ 101 | |||||||||
6.375%, 11/15/2029 | 95 | 101 | |||||||
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A, Pre-refunded 11/15/2010 @ 101 | |||||||||
6.375%, 11/15/2029 (a) | 2,905 | 3,197 | |||||||
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100 | |||||||||
6.200%, 12/01/2022 | 2,995 | 3,077 | |||||||
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100 | |||||||||
5.250%, 09/01/2034 | 1,000 | 1,015 | |||||||
Southern Minnesota Municipal Power Agency, Capital Appreciation, Series A, Zero Coupon Bond (MBIA) | |||||||||
4.550%, 01/01/2024 (b) | 2,245 | 962 | |||||||
St. Paul Housing & Redevelopment Hospital Authority, HealthEast Project | |||||||||
5.250%, 11/15/2014 | 990 | 1,005 | |||||||
Stillwater Health Care, Health System Obligation Group, Callable 06/01/2015 @ 100 | |||||||||
5.000%, 06/01/2035 | 3,000 | 3,003 | |||||||
26,249 | |||||||||
Missouri – 0.2% | |||||||||
Revenue Bond – 0.2% | |||||||||
Sugar Creek, Lafarge North America, Series A, Callable 06/01/2013 @ 101 (AMT) | |||||||||
5.650%, 06/01/2037 | 1,000 | 1,027 | |||||||
Montana – 0.7% | |||||||||
Revenue Bond – 0.7% | |||||||||
Forsyth Pollution Control, Northwestern Corporation, Callable 08/01/2016 @ 100 | |||||||||
4.650%, 08/01/2023 | 3,500 | 3,459 | |||||||
Nebraska – 1.8% | |||||||||
Revenue Bonds – 1.8% | |||||||||
Douglas County Zoo Facility, Omaha Henry Doory Zoo Project, Callable 04/13/2015 @ 100 | |||||||||
4.750%, 09/01/2024 | 2,750 | 2,673 | |||||||
Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/2008 @ 100 | |||||||||
5.250%, 12/15/2015 | 500 | 509 | |||||||
5.350%, 12/15/2018 | 540 | 549 | |||||||
Nebraska Educational Finance Authority, Midland Lutheran College, Series A, Callable 09/15/2013 @ 100 | |||||||||
5.600%, 09/15/2029 | 1,800 | 1,764 | |||||||
Omaha Metropolitan Utilities, Water Revenue, Series A, Callable 12/01/2016 @ 100 | |||||||||
4.250%, 12/01/2021 | 1,500 | 1,434 | |||||||
Washington County Wastewater Facilities, Cargill Income Project, Callable 11/01/2012 @ 101 (AMT) | |||||||||
5.900%, 11/01/2027 | 1,700 | 1,811 | |||||||
8,740 | |||||||||
Nevada – 2.5% | |||||||||
Revenue Bonds – 2.5% | |||||||||
Carson City, Carson-Tahoe Hospital Project, Callable 09/01/2012 @ 101 | |||||||||
5.750%, 09/01/2031 | 5,000 | 5,105 | |||||||
Clark County Industrial Development, Southwest Gas Corporation Project, Series A, Callable 07/01/2014 @ 100 (AMBAC) (AMT) | |||||||||
5.250%, 07/01/2034 | 4,000 | 4,092 | |||||||
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B Callable 11/15/2008 @ 100 | |||||||||
6.000%, 11/15/2014 | 750 | 740 | |||||||
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B, Callable 11/15/2014 @ 100 | |||||||||
6.750%, 11/15/2023 | 2,300 | 2,270 | |||||||
12,207 | |||||||||
New Hampshire – 0.4% | |||||||||
Revenue Bonds – 0.4% | |||||||||
New Hampshire Health & Educational Facilities Authority Covenant Health, Callable 07/01/2014 @ 100 | |||||||||
5.375%, 07/01/2024 | 1,250 | 1,284 |
First American Funds Annual Report 2006 99
Table of Contents
Schedule of Investments continued
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital, Callable 07/01/2015 @ 100 | |||||||||
5.875%, 07/01/2034 | $ | 800 | $ | 813 | |||||
2,097 | |||||||||
New Jersey – 0.7% | |||||||||
General Obligation – 0.7% | |||||||||
Camden County, Municipal Utilities Authority Sewer Revenue Refunding, Series C, Callable 07/15/2008 @ 101 (FGIC) | |||||||||
5.100%, 07/15/2012 | 3,500 | 3,604 | |||||||
New York – 3.3% | |||||||||
Revenue Bond – 2.6% | |||||||||
Liberty Development Corporation, Goldman Sachs Headquarters, Callable until 09/30/2035 @ 100 | |||||||||
5.250%, 10/01/2035 | 12,000 | 12,765 | |||||||
General Obligation – 0.7% | |||||||||
New York, Series C, Callable 03/15/2012 @ 100 | |||||||||
5.250%, 03/15/2032 | 3,590 | 3,684 | |||||||
16,449 | |||||||||
North Carolina – 1.4% | |||||||||
Revenue Bonds – 1.4% | |||||||||
North Carolina Medical Care Community Health Care Facilities, Pennybyrn at Maryfield, Series A, Callable 10/01/2015 @ 100 | |||||||||
6.000%, 10/01/2023 | 4,700 | 4,790 | |||||||
North Carolina Medical Care Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100 | |||||||||
5.400%, 10/01/2027 (d) | 2,100 | 2,075 | |||||||
6,865 | |||||||||
North Dakota – 0.5% | |||||||||
Revenue Bond – 0.5% | |||||||||
North Dakota State Board of Higher Education, Bismarck State College, Callable 05/01/2015 @ 100 | |||||||||
5.350%, 05/01/2030 | 2,500 | 2,413 | |||||||
Ohio – 1.3% | |||||||||
Revenue Bonds – 1.3% | |||||||||
Cincinnati Water System, Callable 06/01/2011 @ 100 | |||||||||
5.000%, 12/01/2020 | 125 | 128 | |||||||
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100 | |||||||||
5.250%, 05/15/2026 | 1,000 | 1,023 | |||||||
Ohio State Higher Educational Facility, Baldwin-Wallace College Project, Callable 06/01/2014 @ 100 | |||||||||
5.125%, 12/01/2017 | 1,490 | 1,516 | |||||||
5.250%, 12/01/2019 | 1,540 | 1,570 | |||||||
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/2013 @ 102 | |||||||||
5.250%, 12/01/2023 | 2,000 | 2,030 | |||||||
6,267 | |||||||||
Oklahoma – 0.7% | |||||||||
Revenue Bonds – 0.7% | |||||||||
Norman Regional Hospital Authority, Callable 09/01/2016 @ 100 | |||||||||
5.375%, 09/01/2029 | 1,000 | 1,009 | |||||||
5.375%, 09/01/2036 | 2,325 | 2,337 | |||||||
3,346 | |||||||||
Oregon – 1.6% | |||||||||
Revenue Bonds – 1.6% | |||||||||
Gilliam County Solid Waste Disposal, Waste Management Project, Callable 05/01/2016 @ 101 (AMT) | |||||||||
5.250%, 07/01/2029 | 1,500 | 1,497 | |||||||
Washington County Unified Sewer Agency, Series 1 (FGIC) | |||||||||
5.750%, 10/01/2010 | 6,110 | 6,540 | |||||||
8,037 | |||||||||
Pennsylvania – 2.0% | |||||||||
Revenue Bonds – 0.9% | |||||||||
Chester Upland School Authority, Series A, Callable 09/01/2007 @ 100 (FSA) | |||||||||
5.250%, 09/01/2017 | 2,000 | 2,028 | |||||||
Erie County Industrial Development Authority, International Paper Company Project, Series A, Callable 11/01/2014 @ 100 (AMT) | |||||||||
5.000%, 11/01/2018 | 1,350 | 1,324 | |||||||
Westmoreland County Industrial Development Authority, Redstone Retirement Community, Series A, Callable 01/01/2016 @ 100 | |||||||||
5.750%, 01/01/2026 | 1,200 | 1,222 | |||||||
4,574 | |||||||||
General Obligation – 1.1% | |||||||||
Pennsylvania State, Callable 03/15/2007 @ 101.50 (AMBAC) | |||||||||
5.125%, 09/15/2011 | 5,000 | 5,112 | |||||||
9,686 | |||||||||
Puerto Rico – 1.1% | |||||||||
Revenue Bond – 1.0% | |||||||||
Puerto Rico Electric Power Authority, Series RR, Callable 07/01/2015 @ 100 (CIFG) | |||||||||
5.000%, 07/01/2029 | 5,000 | 5,117 | |||||||
General Obligation – 0.1% | |||||||||
Puerto Rico Public Improvements, Callable 07/01/2010 @ 100 (MBIA) | |||||||||
5.750%, 07/01/2026 | 500 | 533 | |||||||
5,650 | |||||||||
Rhode Island – 1.0% | |||||||||
General Obligation – 1.0% | |||||||||
Rhode Island State, Series A, Pre-refunded 08/01/2007 @ 101 (MBIA) | |||||||||
5.125%, 08/01/2012 (a) | 5,055 | 5,176 | |||||||
South Carolina – 1.5% | |||||||||
Revenue Bonds – 1.5% | |||||||||
Georgetown County Environmental Improvement, International Paper, Series A, Callable 12/01/2015 @ 100 (AMT) | |||||||||
5.550%, 12/01/2029 | 700 | 717 | |||||||
Lexington County Health Services District, Lexington Medical Center, Callable 11/01/2013 @ 100 | |||||||||
5.500%, 11/01/2023 | 2,000 | 2,065 |
The accompanying notes are an integral part of the financial statements.
100 First American Funds Annual Report 2006
Table of Contents
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A, Callable 08/01/2013 @ 100 | |||||||||
6.125%, 08/01/2023 | $ | 1,250 | $ | 1,353 | |||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Callable 08/01/2013 @ 100 | |||||||||
6.375%, 08/01/2034 | 135 | 149 | |||||||
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Pre-refunded 08/01/2013 @ 100 | |||||||||
6.375%, 08/01/2034 (a) | 1,115 | 1,263 | |||||||
South Carolina State Public Service Authority, Santee Cooper, Series A, Callable 01/01/2016 @ 100 | |||||||||
5.000%, 01/01/2030 | 2,000 | 2,046 | |||||||
7,593 | |||||||||
South Dakota – 1.9% | |||||||||
Revenue Bonds – 1.4% | |||||||||
Sioux Falls, Dow Rummel Village Project, Series A, Callable 11/15/2012 @ 100 | |||||||||
6.625%, 11/15/2023 | 2,200 | 2,268 | |||||||
South Dakota Economic Development Finance Authority, DTS Project, Series A, Callable 04/01/2009 @ 102 (AMT) | |||||||||
5.500%, 04/01/2019 | 1,055 | 1,076 | |||||||
South Dakota Economic Development Finance Authority, Pooled Loan Project – Davis Family, Series 4-A, Callable 04/01/2014 @ 100 (AMT) | |||||||||
6.000%, 04/01/2029 | 1,400 | 1,422 | |||||||
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100 | |||||||||
5.000%, 09/01/2025 (d) | 645 | 641 | |||||||
5.000%, 09/01/2031 (d) | 1,250 | 1,222 | |||||||
6,629 | |||||||||
General Obligation – 0.1% | |||||||||
Sioux Falls School District #49-5, Series B, Callable 07/01/2016 @ 100 | |||||||||
4.750%, 07/01/2020 | 510 | 518 | |||||||
Certificate of Participation – 0.4% | |||||||||
Deadwood, Callable 11/01/2015 @ 100 (ACA) (MLO) | |||||||||
5.000%, 11/01/2020 | 2,000 | 2,013 | |||||||
9,160 | |||||||||
Tennessee – 2.5% | |||||||||
Revenue Bonds – 2.5% | |||||||||
Johnson City Health & Educational Facilities Authority Mountain States Health, Series A, Callable 07/01/2012 @ 103 | |||||||||
7.500%, 07/01/2033 | 2,500 | 2,871 | |||||||
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100 | |||||||||
6.500%, 09/01/2021 (a) | 3,000 | 3,403 | |||||||
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101 | |||||||||
6.250%, 09/01/2032 (a) | 5,500 | 6,128 | |||||||
12,402 | |||||||||
Texas – 14.9% | |||||||||
Revenue Bonds – 9.9% | |||||||||
Abilene Health Facilities Development, Sears Methodist Retirement Project, Callable 05/15/2009 @ 101 | |||||||||
5.875%, 11/15/2018 | 500 | 509 | |||||||
6.000%, 11/15/2029 | 2,000 | 2,017 | |||||||
Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/2008 @ 101 | |||||||||
5.875%, 11/15/2018 | 2,500 | 2,543 | |||||||
Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/2013 @ 101 | |||||||||
7.000%, 11/15/2033 | 4,000 | 4,297 | |||||||
Bexar County Housing Finance Authority, American Opportunity Housing, Colinas LLC Project, Series A, Callable 01/01/2011 (MBIA) | |||||||||
5.800%, 01/01/2031 | 2,000 | 2,070 | |||||||
Brazos River Authority PCR-Texas Utility Company, Callable 04/01/2013 @ 101 (AMT) | |||||||||
7.700%, 04/01/2033 | 2,500 | 2,902 | |||||||
Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/2012 @ 100 (AMT) | |||||||||
5.700%, 05/15/2033 | 2,500 | 2,637 | |||||||
Crawford Education Facilities, University of St. Thomas Project, Callable 10/01/2012 @ 100 | |||||||||
5.250%, 10/01/2022 | 1,300 | 1,301 | |||||||
5.375%, 10/01/2027 | 1,750 | 1,764 | |||||||
Harris County Health Facilities Development, Memorial Hospital Systems Project, Series A, Callable 06/01/2007 @ 102 (MBIA) | |||||||||
5.500%, 06/01/2017 | 8,000 | 8,252 | |||||||
Red River Authority Sewer & Solidwaste Disposal Excel Corporation Project, Callable 02/01/2012 @ 101 (AMT) | |||||||||
6.100%, 02/01/2022 | 3,775 | 3,983 | |||||||
Richardson Hospital Authority, Richardson Regional Hospital, Callable 12/01/2013 @ 100 | |||||||||
6.000%, 12/01/2034 | 9,500 | 10,035 | |||||||
Tarrant County Cultural Education Retirement Facilities, Northwest Senior Housing Edgemere Project, Series A, Callable 11/15/2016 @ 100 | |||||||||
6.000%, 11/15/2026 | 1,600 | 1,675 | |||||||
Texas Water Development Board, Series A, Callable 07/15/2006 @ 100 | |||||||||
5.500%, 07/15/2010 | 2,500 | 2,503 | |||||||
Travis County Health Facilities, Querencia Barton Creek Project, Callable 11/15/2015 @ 100 | |||||||||
5.500%, 11/15/2025 | 1,300 | 1,268 | |||||||
5.650%, 11/15/2035 | 1,100 | 1,060 | |||||||
48,816 | |||||||||
General Obligations – 5.0% | |||||||||
Cypress-Fairbanks Independent School District, Pre-refunded 02/15/2010 @ 100 (PSFG) | |||||||||
5.500%, 02/15/2018 (a) | 5,000 | 5,267 | |||||||
Fort Bend Independent School District, Escrowed to Maturity, Callable until 02/15/2013 @ 100 (PSFG) | |||||||||
5.000%, 02/15/2014 (c) | 500 | 529 |
First American Funds Annual Report 2006 101
Table of Contents
Schedule of Investments continued
Tax Free Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Laredo Independent School District (PSFG) | |||||||||
6.750%, 08/01/2009 | $ | 2,290 | $ | 2,473 | |||||
Remington Municipal Utility District #1, Series A, Callable 09/01/2008 @ 100 (RAAI) | |||||||||
5.800%, 09/01/2025 | 1,000 | 1,030 | |||||||
San Antonio Independent School District, Pre-refunded 08/15/2008 @ 100 (PSFG) | |||||||||
5.125%, 08/15/2014 (a) | 6,000 | 6,155 | |||||||
Spring Branch Independent School District, Pre-refunded 02/01/2010 @ 100 (PSFG) | |||||||||
5.750%, 02/01/2025 (a) | 2,400 | 2,541 | |||||||
Texas State, Water Development, Pre-refunded 08/01/2006 @ 100 | |||||||||
5.400%, 08/01/2021 (a) | 6,750 | 6,759 | |||||||
24,754 | |||||||||
73,570 | |||||||||
Utah – 0.2% | |||||||||
Revenue Bonds – 0.2% | |||||||||
Intermountain Power Agency, Utah Power Supply, Series A, (AMBAC) | |||||||||
6.500%, 07/01/2011 | 365 | 405 | |||||||
Intermountain Power Agency, Utah Power Supply, Series A, Escrowed to Maturity (AMBAC) | |||||||||
6.500%, 07/01/2011 (c) | 635 | 708 | |||||||
1,113 | |||||||||
Vermont – 0.2% | |||||||||
Revenue Bond – 0.2% | |||||||||
Vermont Economic Development Authority, Wake Robin Corporation Project, Series A, Callable 05/01/2016 @ 100 | |||||||||
5.250%, 05/01/2026 (d) | 1,000 | 986 | |||||||
Virginia – 0.2% | |||||||||
Revenue Bond – 0.2% | |||||||||
Arlington County Industrial Development Authority, Berkeley Apartments, Callable 12/01/2010 @ 102 (AMT) (FNMA) | |||||||||
5.850%, 12/01/2020 | 1,000 | 1,058 | |||||||
Washington – 5.1% | |||||||||
Revenue Bonds – 1.6% | |||||||||
Energy Northwest, Washington Wind Project, Pre-refunded 01/01/2007 @ 103 | |||||||||
5.600%, 07/01/2015 (a) | 4,640 | 4,817 | |||||||
Snohomish County Public Utilities District #1, Escrowed to Maturity, Callable until 01/01/2011 @ 100 | |||||||||
6.750%, 01/01/2012 (c) | 1,000 | 1,083 | |||||||
Washington State Public Power Supply System, Nuclear Project #3, Series A, Callable 07/01/2007 @ 102 (FSA) | |||||||||
5.250%, 07/01/2016 | 1,000 | 1,031 | |||||||
Washington State Public Power Supply System, Nuclear Project #3, Series B | |||||||||
7.125%, 07/01/2016 | 600 | 725 | |||||||
7,656 | |||||||||
General Obligations – 3.5% | |||||||||
King County, Series F, Callable 12/01/2007 @ 100 | |||||||||
5.125%, 12/01/2014 | 5,000 | 5,077 | |||||||
Washington State, Series C, Pre-refunded 01/01/2007 @ 100 | |||||||||
5.500%, 01/01/2017 (a) | 4,190 | 4,226 | |||||||
Washington State Motor Vehicle Fuel Tax, Series D, Pre-refunded 01/01/2007 @ 100 (FGIC) | |||||||||
5.375%, 01/01/2022 (a) | 8,000 | 8,064 | |||||||
17,367 | |||||||||
25,023 | |||||||||
Wisconsin – 3.0% | |||||||||
Revenue Bonds – 3.0% | |||||||||
Amery, Apple River Hospital Project, Pre-refunded 06/01/2008 @ 100 | |||||||||
5.700%, 06/01/2013 (a) | 1,440 | 1,452 | |||||||
Wisconsin State Health & Educational Facilities Authority, Attic Angel Obligation Group, Pre-refunded 11/17/2008 @ 102 | |||||||||
5.750%, 11/15/2027 (a) | 1,000 | 1,052 | |||||||
Wisconsin State Health & Educational Facilities Authority, Beaver Dam Community Hospitals, Series A, Callable 08/15/2014 @ 100 | |||||||||
6.750%, 08/15/2034 | 1,000 | 1,072 | |||||||
Wisconsin State Health & Educational Facilities Authority, Beloit Memorial Hospital, Callable until 07/01/2008 @ 100 | |||||||||
5.800%, 07/01/2009 | 555 | 555 | |||||||
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project, Callable 12/01/2011 @ 100 | |||||||||
6.000%, 12/01/2024 | 1,000 | 1,019 | |||||||
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/2012 @ 100 | |||||||||
6.000%, 02/15/2025 | 3,500 | 3,680 | |||||||
Wisconsin State Health & Educational Facilities Authority, Meriter Hospital, Callable 12/01/2006 @ 102 (MBIA) | |||||||||
6.000%, 12/01/2017 | 2,000 | 2,055 | |||||||
Wisconsin State Health & Educational Facilities Authority, New Castle Place Project, Series A, Callable 12/01/2011 @ 101 | |||||||||
7.000%, 12/01/2031 | 2,000 | 2,055 | |||||||
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/2014 @ 100 | |||||||||
6.250%, 04/01/2034 | 2,000 | 2,020 | |||||||
14,960 | |||||||||
Wyoming – 0.8% | |||||||||
Revenue Bonds – 0.8% | |||||||||
Teton County Hospital District, St. John’s Medical Center, Callable 06/01/2012 @ 101 | |||||||||
6.750%, 12/01/2022 | 2,100 | 2,221 | |||||||
6.750%, 12/01/2027 | 1,500 | 1,577 | |||||||
3,798 | |||||||||
Total Municipal Bonds (Cost $468,010) | 486,610 | ||||||||
Short-Term Investment – 1.3% | |||||||||
First American Tax Free Obligations Fund, Class Z (e) | |||||||||
(Cost $6,548) | 6,548,268 | 6,548 | |||||||
Total Investments – 99.7% (Cost $474,558) | 493,158 | ||||||||
Other Assets and Liabilities, Net – 0.3% | 1,481 | ||||||||
Total Net Assets – 100.0% | $ | 494,639 | |||||||
The accompanying notes are an integral part of the financial statements.
102 First American Funds Annual Report 2006
Table of Contents
Tax Free Fund (concluded) | ||||||||
(a) | Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated. |
(b) | Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase. |
(c) | Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated. |
(d) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $4,947 or 1.0% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | 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. |
ACA – American Capital Access
AGTY – Assured Guaranty
AMBAC – American Municipal Bond Assurance Corporation
AMT – | Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $46,769, which represents 9.5% of total net assets. |
CIFG – CDC IXIS Financial Guaranty
CLE – Connie Lee Insurance Company
CMI – California Mortgage Insurance Program
FGIC – Financial Guaranty Insurance Corporation
FHA – Federal Housing Authority
FNMA – Federal National Mortgage Association
FSA – Financial Security Assurance
GNMA – Government National Mortgage Association
MBIA – Municipal Bond Insurance Association
MLO – Municipal Lease Obligation
MQSBLF – Michigan Qualified School Board Loan Fund Program
PSFG – Permanent School Fund Guarantee
RAAI – Radian Asset Assurance Inc.
First American Funds Annual Report 2006 103
Table of Contents
Statements of Assets and Liabilities June 30, 2006, all dollars are rounded to thousands (000), except per share data
California | Colorado | ||||||||||||||||||||||||||
Arizona | Intermediate | California | Intermediate | Colorado | |||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | |||||||||||||||||||||||
Investments in unaffiliated securities, at cost | $ | 25,158 | $ | 53,266 | $ | 35,030 | $ | 40,310 | $ | 20,886 | |||||||||||||||||
Investments in affiliated money market fund, at cost | 7 | — | — | 687 | 550 | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Investments in unaffiliated securities, at value (note 2) | $ | 25,782 | $ | 54,176 | $ | 35,853 | $ | 41,589 | $ | 21,746 | |||||||||||||||||
Investments in affiliated money market fund, at value (note 2) | 7 | — | — | 687 | 550 | ||||||||||||||||||||||
Cash | — | — | 3 | — | — | ||||||||||||||||||||||
Receivable for dividends and interest | 413 | 692 | 430 | 277 | 159 | ||||||||||||||||||||||
Receivable for investment securities sold | 517 | 174 | — | — | — | ||||||||||||||||||||||
Receivable for capital shares sold | — | 180 | — | — | 23 | ||||||||||||||||||||||
Receivable from advisor | 2 | — | — | — | 2 | ||||||||||||||||||||||
Prepaid expenses and other assets | 6 | 4 | 5 | 5 | 5 | ||||||||||||||||||||||
Total assets | 26,727 | 55,226 | 36,291 | 42,558 | 22,485 | ||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Payable for investment securities purchased | — | — | — | — | — | ||||||||||||||||||||||
Payable for investment securities purchased on a when-issued basis | 668 | — | — | 245 | 745 | ||||||||||||||||||||||
Payable for capital shares redeemed | 1 | — | 105 | 25 | — | ||||||||||||||||||||||
Payable for variation margin | 5 | — | — | — | 7 | ||||||||||||||||||||||
Payable to affiliates (note 3) | 10 | 31 | 13 | 22 | 8 | ||||||||||||||||||||||
Payable for distribution and shareholder servicing fees | 3 | — | 4 | 1 | 3 | ||||||||||||||||||||||
Accrued expenses and other liabilities | 27 | 28 | 27 | 27 | 27 | ||||||||||||||||||||||
Total liabilities | 714 | 59 | 149 | 320 | 790 | ||||||||||||||||||||||
Net assets | $ | 26,013 | $ | 55,167 | $ | 36,142 | $ | 42,238 | $ | 21,695 | |||||||||||||||||
COMPOSITION OF NET ASSETS: | |||||||||||||||||||||||||||
Portfolio capital | $ | 25,278 | $ | 54,034 | $ | 35,249 | $ | 40,632 | $ | 20,620 | |||||||||||||||||
Undistributed net investment income | 7 | 16 | 17 | 34 | 39 | ||||||||||||||||||||||
Accumulated net realized gain (loss) on investments (note 2) | 94 | 207 | 53 | 293 | 161 | ||||||||||||||||||||||
Net unrealized appreciation (depreciation) of investments | 624 | 910 | 823 | 1,279 | 860 | ||||||||||||||||||||||
Net unrealized appreciation on futures contracts | 10 | — | — | — | 15 | ||||||||||||||||||||||
Net assets | $ | 26,013 | $ | 55,167 | $ | 36,142 | $ | 42,238 | $ | 21,695 | |||||||||||||||||
Class A: | |||||||||||||||||||||||||||
Net assets | $ | 9,041 | $ | 3,441 | $ | 10,783 | $ | 9,577 | $ | 8,507 | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 833 | 340 | 984 | 920 | 793 | ||||||||||||||||||||||
Net asset value and redemption price per share | $ | 10.85 | $ | 10.11 | $ | 10.96 | $ | 10.40 | $ | 10.73 | |||||||||||||||||
Maximum offering price per share (1) | $ | 11.33 | $ | 10.34 | $ | 11.45 | $ | 10.64 | $ | 11.21 | |||||||||||||||||
Class C: | |||||||||||||||||||||||||||
Net assets | $ | 1,358 | — | $ | 3,592 | — | $ | 3,007 | |||||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 125 | — | 327 | — | 281 | ||||||||||||||||||||||
Net asset value, offering price, and redemption price per share (2) | $ | 10.84 | — | $ | 10.97 | — | $ | 10.71 | |||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||
Net assets | $ | 15,614 | $ | 51,726 | $ | 21,767 | $ | 32,661 | $ | 10,181 | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value – 2 billion authorized) | 1,438 | 5,107 | 1,985 | 3,147 | 947 | ||||||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.85 | $ | 10.13 | $ | 10.97 | $ | 10.38 | $ | 10.75 | |||||||||||||||||
(1) | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. | |
(2) | Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
104 First American Funds Annual Report 2006
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Minnesota | Oregon | ||||||||||||||||||||||||||||||||||||||||||||
Intermediate | Intermediate | Minnesota | Missouri | Nebraska | Ohio | Intermediate | Short | ||||||||||||||||||||||||||||||||||||||
Tax Free | Tax Free | Tax Free | Tax Free | Tax Free | Tax Free | Tax Free | Tax Free | Tax Free | |||||||||||||||||||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||||||
$ | 602,792 | $ | 195,816 | $ | 153,981 | $ | 160,028 | $ | 38,675 | $ | 41,498 | $ | 117,869 | $ | 241,875 | $ | 468,010 | ||||||||||||||||||||||||||||
1,982 | — | 46 | 889 | 1,692 | — | 356 | 2,378 | 6,548 | |||||||||||||||||||||||||||||||||||||
$ | 620,778 | $ | 199,864 | $ | 159,796 | $ | 162,938 | $ | 39,102 | $ | 41,778 | $ | 119,453 | $ | 239,045 | $ | 486,610 | ||||||||||||||||||||||||||||
1,982 | — | 46 | 889 | 1,692 | — | 356 | 2,378 | 6,548 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
7,823 | 3,045 | 2,054 | 2,316 | 489 | 359 | 1,079 | 2,829 | 7,062 | |||||||||||||||||||||||||||||||||||||
674 | 1,125 | — | 395 | 488 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
49 | 321 | 252 | — | 20 | — | 20 | 260 | 110 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
8 | 5 | 6 | 6 | 6 | 5 | 5 | 6 | 9 | |||||||||||||||||||||||||||||||||||||
631,314 | 204,360 | 162,154 | 166,544 | 41,797 | 42,142 | 120,913 | 244,518 | 500,339 | |||||||||||||||||||||||||||||||||||||
— | — | 1,755 | — | 497 | 401 | — | 5,117 | — | |||||||||||||||||||||||||||||||||||||
1,809 | 1,736 | — | — | 1,504 | — | — | — | 4,947 | |||||||||||||||||||||||||||||||||||||
261 | 461 | — | 833 | 42 | 13 | 25 | 421 | ||||||||||||||||||||||||||||||||||||||
— | — | — | — | 9 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
375 | 118 | 87 | 96 | 14 | 16 | 70 | 123 | 288 | |||||||||||||||||||||||||||||||||||||
4 | 3 | 21 | 6 | 2 | — | 1 | — | 9 | |||||||||||||||||||||||||||||||||||||
38 | 31 | 30 | 29 | 27 | 27 | 29 | 32 | 35 | |||||||||||||||||||||||||||||||||||||
2,487 | 2,349 | 1,893 | 964 | 2,053 | 486 | 113 | 5,297 | 5,700 | |||||||||||||||||||||||||||||||||||||
$ | 628,827 | $ | 202,011 | $ | 160,261 | $ | 165,580 | $ | 39,744 | $ | 41,656 | $ | 120,800 | $ | 239,221 | $ | 494,639 | ||||||||||||||||||||||||||||
$ | 610,840 | $ | 197,037 | $ | 153,957 | $ | 162,057 | $ | 39,117 | $ | 41,315 | $ | 118,894 | $ | 243,168 | $ | 473,806 | ||||||||||||||||||||||||||||
— | 65 | 56 | 31 | 19 | 16 | 67 | 119 | 81 | |||||||||||||||||||||||||||||||||||||
1 | 861 | 433 | 582 | 161 | 45 | 255 | (1,236 | ) | 2,152 | ||||||||||||||||||||||||||||||||||||
17,986 | 4,048 | 5,815 | 2,910 | 427 | 280 | 1,584 | (2,830 | ) | 18,600 | ||||||||||||||||||||||||||||||||||||
— | — | — | — | 20 | — | — | — | — | |||||||||||||||||||||||||||||||||||||
$ | 628,827 | $ | 202,011 | $ | 160,261 | $ | 165,580 | $ | 39,744 | $ | 41,656 | $ | 120,800 | $ | 239,221 | $ | 494,639 | ||||||||||||||||||||||||||||
$ | 32,521 | $ | 26,526 | $ | 101,142 | $ | 26,972 | $ | 6,910 | $ | 841 | $ | 9,456 | $ | 3,321 | $ | 36,519 | ||||||||||||||||||||||||||||
3,059 | 2,686 | 9,220 | 2,294 | 669 | 83 | 967 | 343 | 3,363 | |||||||||||||||||||||||||||||||||||||
$ | 10.63 | $ | 9.88 | $ | 10.97 | $ | 11.76 | $ | 10.33 | $ | 10.17 | $ | 9.78 | $ | 9.68 | $ | 10.86 | ||||||||||||||||||||||||||||
$ | 10.87 | $ | 10.11 | $ | 11.46 | $ | 12.28 | $ | 10.79 | $ | 10.62 | $ | 10.01 | $ | 9.90 | $ | 11.34 | ||||||||||||||||||||||||||||
— | — | $ | 10,359 | $ | 214 | $ | 1,487 | $ | 209 | — | — | $ | 2,210 | ||||||||||||||||||||||||||||||||
— | — | 948 | 18 | 145 | 21 | — | — | 204 | |||||||||||||||||||||||||||||||||||||
— | — | $ | 10.93 | $ | 11.73 | $ | 10.26 | $ | 10.05 | — | — | $ | 10.81 | ||||||||||||||||||||||||||||||||
$ | 596,306 | $ | 175,485 | $ | 48,760 | $ | 138,394 | $ | 31,347 | $ | 40,606 | $ | 111,344 | $ | 235,900 | $ | 455,910 | ||||||||||||||||||||||||||||
56,201 | 17,858 | 4,450 | 11,765 | 3,036 | 3,994 | 11,386 | 24,360 | 41,937 | |||||||||||||||||||||||||||||||||||||
$ | 10.61 | $ | 9.83 | $ | 10.96 | $ | 11.76 | $ | 10.33 | $ | 10.17 | $ | 9.78 | $ | 9.68 | $ | 10.87 | ||||||||||||||||||||||||||||
First American Funds Annual Report 2006 105
Table of Contents
Statements of Operations all dollars are rounded to thousands (000)
California | ||||||||||||||||||||
Arizona | Intermediate | |||||||||||||||||||
Tax Free Fund | Tax Free Fund | |||||||||||||||||||
Nine-Month | Nine-Month | |||||||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | |||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | |||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||
Interest from unaffiliated securities | $ | 928 | $ | 1,086 | $ | 1,921 | $ | 2,378 | ||||||||||||
Dividends from affiliated money market fund | 13 | 2 | — | — | ||||||||||||||||
Total investment income | 941 | 1,088 | 1,921 | 2,378 | ||||||||||||||||
EXPENSES (note 3): | ||||||||||||||||||||
Investment advisory fees | 99 | 111 | 209 | 261 | ||||||||||||||||
Administration fees | 31 | 52 | 61 | 114 | ||||||||||||||||
Transfer agent fees | 30 | 15 | 60 | 33 | ||||||||||||||||
Custodian fees | 1 | 2 | 2 | 5 | ||||||||||||||||
Professional fees | 40 | 13 | 40 | 15 | ||||||||||||||||
Registration fees | 8 | 8 | 6 | 5 | ||||||||||||||||
Postage and printing fees | 6 | 1 | 3 | 2 | ||||||||||||||||
Directors’ fees | 10 | 1 | 10 | 1 | ||||||||||||||||
Other expenses | 15 | 4 | 15 | 5 | ||||||||||||||||
Distribution and shareholder servicing fees – Class A | 18 | 24 | 8 | 10 | ||||||||||||||||
Distribution and shareholder servicing fees – Class C | 11 | 16 | — | — | ||||||||||||||||
Total expenses | 269 | 247 | 414 | 451 | ||||||||||||||||
Less: Fee waivers (note 3) | (145 | ) | (102 | ) | (116 | ) | (80 | ) | ||||||||||||
Less: Indirect payments from custodian (note 3) | — | (1) | — | — | (1) | — | ||||||||||||||
Total net expenses | 124 | 145 | 298 | 371 | ||||||||||||||||
Investment income – net | 817 | 943 | 1,623 | 2,007 | ||||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | ||||||||||||||||||||
Net realized gain on investments | 94 | 215 | 207 | 174 | ||||||||||||||||
Net realized gain on futures contracts | — | — | — | — | ||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (713 | ) | (401 | ) | (1,353 | ) | (809 | ) | ||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 10 | — | — | — | ||||||||||||||||
Net loss on investments | (609 | ) | (186 | ) | (1,146 | ) | (635 | ) | ||||||||||||
Net increase in net assets resulting from operations | $ | 208 | $ | 757 | $ | 477 | $ | 1,372 | ||||||||||||
(1) | Due to the presentation of the financial statements in thousands, the numbers round to zero. |
The accompanying notes are an integral part of the financial statements.
106 First American Funds Annual Report 2006
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Colorado | |||||||||||||||||||||||||||||||||||||
California | Intermediate | Colorado | Intermediate | ||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | Period Ended | Year Ended | Period Ended | Year Ended | ||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | ||||||||||||||||||||||||||||||
$ | 1,244 | $ | 1,374 | $ | 1,649 | $ | 2,367 | $ | 807 | $ | 1,090 | $ | 23,513 | $ | 32,007 | ||||||||||||||||||||||
— | — | 15 | 14 | 15 | 5 | 145 | 144 | ||||||||||||||||||||||||||||||
1,244 | 1,374 | 1,664 | 2,381 | 822 | 1,095 | 23,658 | 32,151 | ||||||||||||||||||||||||||||||
131 | 148 | 170 | 254 | 81 | 110 | 2,462 | 3,326 | ||||||||||||||||||||||||||||||
40 | 68 | 51 | 111 | 26 | 52 | 674 | 1,397 | ||||||||||||||||||||||||||||||
39 | 20 | 50 | 32 | 26 | 14 | 670 | 425 | ||||||||||||||||||||||||||||||
1 | 3 | 2 | 4 | 1 | 2 | 25 | 58 | ||||||||||||||||||||||||||||||
40 | 14 | 40 | 15 | 40 | 14 | 38 | 44 | ||||||||||||||||||||||||||||||
7 | 7 | 6 | 5 | 7 | 7 | 29 | 23 | ||||||||||||||||||||||||||||||
2 | 1 | 3 | 2 | 2 | 1 | 28 | 25 | ||||||||||||||||||||||||||||||
10 | 1 | 10 | 1 | 10 | 1 | 13 | 16 | ||||||||||||||||||||||||||||||
15 | 4 | 14 | 5 | 14 | 4 | 17 | 16 | ||||||||||||||||||||||||||||||
22 | 26 | 22 | 36 | 17 | 23 | 63 | 87 | ||||||||||||||||||||||||||||||
25 | 17 | — | — | 24 | 38 | — | — | ||||||||||||||||||||||||||||||
332 | 309 | 368 | 465 | 248 | 266 | 4,019 | 5,417 | ||||||||||||||||||||||||||||||
(163 | ) | (124 | ) | (116 | ) | (88 | ) | (134 | ) | (108 | ) | (531 | ) | (709 | ) | ||||||||||||||||||||||
— | — | — | (1) | — | — | (1) | — | (1 | ) | — | |||||||||||||||||||||||||||
169 | 185 | 252 | 377 | 114 | 158 | 3,487 | 4,708 | ||||||||||||||||||||||||||||||
1,075 | 1,189 | 1,412 | 2,004 | 708 | 937 | 20,171 | 27,443 | ||||||||||||||||||||||||||||||
45 | 66 | 293 | 284 | 158 | 586 | 881 | 1,758 | ||||||||||||||||||||||||||||||
8 | — | — | — | 3 | — | — | — | ||||||||||||||||||||||||||||||
(895 | ) | (182 | ) | (1,489 | ) | (1,134 | ) | (714 | ) | (804 | ) | (16,513 | ) | (13,264 | ) | ||||||||||||||||||||||
— | — | — | — | 15 | — | — | — | ||||||||||||||||||||||||||||||
(842 | ) | (116 | ) | (1,196 | ) | (850 | ) | (538 | ) | (218 | ) | (15,632 | ) | (11,506 | ) | ||||||||||||||||||||||
$ | 233 | $ | 1,073 | $ | 216 | $ | 1,154 | $ | 170 | $ | 719 | $ | 4,539 | $ | 15,937 | ||||||||||||||||||||||
First American Funds Annual Report 2006 107
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Statements of Operations continued
Minnesota | |||||||||||||||||||
Intermediate | Minnesota | ||||||||||||||||||
Tax Free Fund | Tax Free Fund | ||||||||||||||||||
Nine-Month | Nine-Month | ||||||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | ||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Interest from unaffiliated securities | $ | 7,607 | $ | 11,092 | $ | 6,207 | $ | 8,303 | |||||||||||
Dividends from affiliated money market fund | — | — | 10 | — | |||||||||||||||
Total investment income | 7,607 | 11,092 | 6,217 | 8,303 | |||||||||||||||
EXPENSES (note 3): | |||||||||||||||||||
Investment advisory fees | 809 | 1,199 | 610 | 832 | |||||||||||||||
Administration fees | 225 | 509 | 169 | 352 | |||||||||||||||
Transfer agent fees | 223 | 151 | 169 | 106 | |||||||||||||||
Custodian fees | 8 | 21 | 7 | 15 | |||||||||||||||
Professional fees | 40 | 24 | 40 | 21 | |||||||||||||||
Registration fees | 7 | 5 | 8 | 9 | |||||||||||||||
Postage and printing fees | 11 | 9 | 12 | 7 | |||||||||||||||
Directors’ fees | 11 | 6 | 11 | 4 | |||||||||||||||
Other expenses | 15 | 9 | 15 | 7 | |||||||||||||||
Distribution and shareholder servicing fees – Class A | 54 | 85 | 195 | 278 | |||||||||||||||
Distribution and shareholder servicing fees – Class C | — | — | 74 | 99 | |||||||||||||||
Total expenses | 1,403 | 2,018 | 1,310 | 1,730 | |||||||||||||||
Less: Fee waivers (note 3) | (236 | ) | (288 | ) | (213 | ) | (223 | ) | |||||||||||
Less: Indirect payments from custodian (note 3) | (1 | ) | — | — | (1) | — | |||||||||||||
Total net expenses | 1,166 | 1,730 | 1,097 | 1,507 | |||||||||||||||
Investment income – net | �� | 6,441 | 9,362 | 5,120 | 6,796 | ||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | |||||||||||||||||||
Net realized gain on investments | 874 | 1,370 | 382 | 399 | |||||||||||||||
Net realized gain on futures contracts | — | — | 51 | — | |||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (5,474 | ) | (4,978 | ) | (3,439 | ) | 20 | ||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | — | — | — | |||||||||||||||
Net gain (loss) on investments | (4,600 | ) | (3,608 | ) | (3,006 | ) | 419 | ||||||||||||
Net increase in net assets resulting from operations | $ | 1,841 | $ | 5,754 | $ | 2,114 | $ | 7,215 | |||||||||||
(1) | Due to the presentation of the financial statements in thousands, the numbers round to zero. |
The accompanying notes are an integral part of the financial statements.
108 First American Funds Annual Report 2006
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Oregon | |||||||||||||||||||||||||||||||||||||
Missouri | Nebraska | Ohio | Intermediate | ||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | Period Ended | Year Ended | Period Ended | Year Ended | ||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | ||||||||||||||||||||||||||||||
$ | 6,119 | $ | 8,285 | $ | 1,390 | $ | 1,726 | $ | 1,352 | $ | 1,768 | $ | 4,401 | $ | 6,277 | ||||||||||||||||||||||
38 | 37 | 27 | 22 | — | — | 16 | 23 | ||||||||||||||||||||||||||||||
6,157 | 8,322 | 1,417 | 1,748 | 1,352 | 1,768 | 4,417 | 6,300 | ||||||||||||||||||||||||||||||
656 | 905 | 153 | 193 | 155 | 212 | 494 | 715 | ||||||||||||||||||||||||||||||
181 | 383 | 45 | 85 | 45 | 93 | 138 | 306 | ||||||||||||||||||||||||||||||
181 | 116 | 45 | 25 | 46 | 27 | 138 | 91 | ||||||||||||||||||||||||||||||
6 | 16 | 2 | 3 | 2 | 4 | 6 | 13 | ||||||||||||||||||||||||||||||
40 | 21 | 40 | 14 | 40 | 15 | 40 | 19 | ||||||||||||||||||||||||||||||
8 | 8 | 7 | 8 | 7 | 7 | 6 | 6 | ||||||||||||||||||||||||||||||
9 | 8 | 2 | 2 | 2 | 2 | 6 | 5 | ||||||||||||||||||||||||||||||
11 | 4 | 10 | 1 | 10 | 1 | 10 | 3 | ||||||||||||||||||||||||||||||
16 | 7 | 15 | 5 | 15 | 5 | 15 | 6 | ||||||||||||||||||||||||||||||
54 | 71 | 13 | 15 | 2 | 3 | 19 | 22 | ||||||||||||||||||||||||||||||
1 | 2 | 12 | 18 | 1 | 1 | — | — | ||||||||||||||||||||||||||||||
1,163 | 1,541 | 344 | 369 | 325 | 370 | 872 | 1,186 | ||||||||||||||||||||||||||||||
(189 | ) | (202 | ) | (170 | ) | (149 | ) | (167 | ) | (154 | ) | (169 | ) | (173 | ) | ||||||||||||||||||||||
— | (1) | — | — | (1) | — | — | — | — | (1) | — | |||||||||||||||||||||||||||
974 | 1,339 | 174 | 220 | 158 | 216 | 703 | 1,013 | ||||||||||||||||||||||||||||||
5,183 | 6,983 | 1,243 | 1,528 | 1,194 | 1,552 | 3,714 | 5,287 | ||||||||||||||||||||||||||||||
622 | 1,283 | 153 | 67 | 36 | 58 | 255 | 590 | ||||||||||||||||||||||||||||||
— | — | 8 | — | 9 | — | — | — | ||||||||||||||||||||||||||||||
(4,893 | ) | (2,964 | ) | (1,126 | ) | (332 | ) | (1,077 | ) | (282 | ) | (3,575 | ) | (3,269 | ) | ||||||||||||||||||||||
— | — | 20 | — | — | — | — | — | ||||||||||||||||||||||||||||||
(4,271 | ) | (1,681 | ) | (945 | ) | (265 | ) | (1,032 | ) | (224 | ) | (3,320 | ) | (2,679 | ) | ||||||||||||||||||||||
$ | 912 | $ | 5,302 | $ | 298 | $ | 1,263 | $ | 162 | $ | 1,328 | $ | 394 | $ | 2,608 | ||||||||||||||||||||||
First American Funds Annual Report 2006 109
Table of Contents
Statements of Operations continued
Short | |||||||||||||||||||
Tax Free Fund | Tax Free Fund | ||||||||||||||||||
Nine-Month | Nine-Month | ||||||||||||||||||
Period Ended | Year Ended | Period Ended | Year Ended | ||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Interest from unaffiliated securities | $ | 6,948 | $ | 12,331 | $ | 19,059 | $ | 23,876 | |||||||||||
Dividends from affiliated money market fund | 347 | 170 | 166 | 110 | |||||||||||||||
Total investment income | 7,295 | 12,501 | 19,225 | 23,986 | |||||||||||||||
EXPENSES (note 3): | |||||||||||||||||||
Investment advisory fees | 1,072 | 1,942 | 1,838 | 2,330 | |||||||||||||||
Administration fees | 289 | 824 | 499 | 976 | |||||||||||||||
Transfer agent fees | 294 | 238 | 501 | 299 | |||||||||||||||
Custodian fees | 12 | 35 | 18 | 41 | |||||||||||||||
Professional fees | 37 | 31 | 39 | 35 | |||||||||||||||
Registration fees | 29 | 23 | 35 | 31 | |||||||||||||||
Postage and printing fees | 12 | 15 | 24 | 20 | |||||||||||||||
Directors’ fees | 11 | 9 | 12 | 11 | |||||||||||||||
Other expenses | 16 | 12 | 17 | 13 | |||||||||||||||
Distribution and shareholder servicing fees – Class A | 7 | 14 | 68 | 97 | |||||||||||||||
Distribution and shareholder servicing fees – Class C | — | — | 19 | 27 | |||||||||||||||
Total expenses | 1,779 | 3,143 | 3,070 | 3,880 | |||||||||||||||
Less: Fee waivers (note 3) | (482 | ) | (804 | ) | (413 | ) | (503 | ) | |||||||||||
Less: Indirect payments from custodian (note 3) | — | (1) | — | — | (1) | — | |||||||||||||
Total net expenses | 1,297 | 2,339 | 2,657 | 3,377 | |||||||||||||||
Investment income – net | 5,998 | 10,162 | 16,568 | 20,609 | |||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5): | |||||||||||||||||||
Net realized gain (loss) on investments | (611 | ) | (387 | ) | 2,831 | 1,085 | |||||||||||||
Net change in unrealized appreciation or depreciation of investments | (2,031 | ) | (6,969 | ) | (11,649 | ) | (206 | ) | |||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | — | — | — | |||||||||||||||
Net gain (loss) on investments | (2,642 | ) | (7,356 | ) | (8,818 | ) | 879 | ||||||||||||
Net increase in net assets resulting from operations | $ | 3,356 | $ | 2,806 | $ | 7,750 | $ | 21,488 | |||||||||||
(1) | Due to the presentation of the financial statements in thousands, the numbers round to zero. |
The accompanying notes are an integral part of the financial statements.
110 First American Funds Annual Report 2006
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Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
California | ||||||||||||||||||||||||||||
Arizona | Intermediate | |||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | |||||||||||||||||||||||||||
Nine-Month | Nine-Month | |||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 817 | $ | 943 | $ | 902 | $ | 1,623 | $ | 2,007 | $ | 1,910 | ||||||||||||||||
Net realized gain on investments | 94 | 215 | 230 | 207 | 174 | 358 | ||||||||||||||||||||||
Net realized gain on futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (713 | ) | (401 | ) | 17 | (1,353 | ) | (809 | ) | (628 | ) | |||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 10 | — | — | — | — | — | ||||||||||||||||||||||
Net increase in net assets resulting from operations | 208 | 757 | 1,149 | 477 | 1,372 | 1,640 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (284 | ) | (412 | ) | (413 | ) | (115 | ) | (142 | ) | (154 | ) | ||||||||||||||||
Class C | (39 | ) | (64 | ) | (60 | ) | — | — | — | |||||||||||||||||||
Class Y | (487 | ) | (516 | ) | (414 | ) | (1,509 | ) | (1,860 | ) | (1,780 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (80 | ) | (99 | ) | (50 | ) | (14 | ) | (25 | ) | (13 | ) | ||||||||||||||||
Class C | (11 | ) | (18 | ) | (8 | ) | — | — | — | |||||||||||||||||||
Class Y | (119 | ) | (113 | ) | (41 | ) | (160 | ) | (331 | ) | (141 | ) | ||||||||||||||||
Total distributions | (1,020 | ) | (1,222 | ) | (986 | ) | (1,798 | ) | (2,358 | ) | (2,088 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 1,018 | 2,145 | 1,820 | 972 | 1,367 | 1,820 | ||||||||||||||||||||||
Reinvestment of distributions | 302 | 422 | 397 | 77 | 120 | 128 | ||||||||||||||||||||||
Payments for redemptions | (1,534 | ) | (1,831 | ) | (5,214 | ) | (1,460 | ) | (852 | ) | (2,787 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (214 | ) | 736 | (2,997 | ) | (411 | ) | 635 | (839 | ) | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 125 | 201 | 372 | — | — | — | ||||||||||||||||||||||
Reinvestment of distributions | 45 | 65 | 50 | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (394 | ) | (192 | ) | (698 | ) | — | — | — | |||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | (224 | ) | 74 | (276 | ) | — | — | — | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 5,805 | 5,175 | 2,320 | 9,187 | 6,384 | 8,208 | ||||||||||||||||||||||
Reinvestment of distributions | 117 | 73 | 27 | 47 | 80 | 29 | ||||||||||||||||||||||
Payments for redemptions | (3,869 | ) | (499 | ) | (2,150 | ) | (5,573 | ) | (3,209 | ) | (5,478 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | 2,053 | 4,749 | 197 | 3,661 | 3,255 | 2,759 | ||||||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | 1,615 | 5,559 | (3,076 | ) | 3,250 | 3,890 | 1,920 | |||||||||||||||||||||
Total increase (decrease) in net assets | 803 | 5,094 | (2,913 | ) | 1,929 | 2,904 | 1,472 | |||||||||||||||||||||
Net assets at beginning of period | 25,210 | 20,116 | 23,029 | 53,238 | 50,334 | 48,862 | ||||||||||||||||||||||
Net assets at end of period | $ | 26,013 | $ | 25,210 | $ | 20,116 | $ | 55,167 | $ | 53,238 | $ | 50,334 | ||||||||||||||||
Undistributed net investment income at end of period | $ | 7 | $ | — | $ | 44 | $ | 16 | $ | 17 | $ | 12 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
112 First American Funds Annual Report 2006
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Colorado | ||||||||||||||||||||||||||||||||||||||||
California | Intermediate | Colorado | ||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||
$ | 1,075 | $ | 1,189 | $ | 1,130 | $ | 1,412 | $ | 2,004 | $ | 2,441 | $ | 708 | $ | 937 | $ | 1,086 | |||||||||||||||||||||||
45 | 66 | 274 | 293 | 284 | 631 | 158 | 586 | 177 | ||||||||||||||||||||||||||||||||
8 | — | — | — | — | — | 3 | — | — | ||||||||||||||||||||||||||||||||
(895 | ) | (182 | ) | (104 | ) | (1,489 | ) | (1,134 | ) | (1,415 | ) | (714 | ) | (804 | ) | (145 | ) | |||||||||||||||||||||||
— | — | — | — | — | — | 15 | — | — | ||||||||||||||||||||||||||||||||
233 | 1,073 | 1,300 | 216 | 1,154 | 1,657 | 170 | 719 | 1,118 | ||||||||||||||||||||||||||||||||
(344 | ) | (400 | ) | (415 | ) | (346 | ) | (577 | ) | (660 | ) | (275 | ) | (420 | ) | (515 | ) | |||||||||||||||||||||||
(91 | ) | (60 | ) | (43 | ) | — | — | — | (91 | ) | (153 | ) | (152 | ) | ||||||||||||||||||||||||||
(632 | ) | (744 | ) | (681 | ) | (1,055 | ) | (1,500 | ) | (1,748 | ) | (310 | ) | (419 | ) | (431 | ) | |||||||||||||||||||||||
(23 | ) | (89 | ) | (84 | ) | (74 | ) | (44 | ) | — | (271 | ) | (77 | ) | (90 | ) | ||||||||||||||||||||||||
(6 | ) | (13 | ) | (9 | ) | — | — | — | (98 | ) | (30 | ) | (29 | ) | ||||||||||||||||||||||||||
(36 | ) | (149 | ) | (117 | ) | (209 | ) | (125 | ) | — | (217 | ) | (70 | ) | (68 | ) | ||||||||||||||||||||||||
(1,132 | ) | (1,455 | ) | (1,349 | ) | (1,684 | ) | (2,246 | ) | (2,408 | ) | (1,262 | ) | (1,169 | ) | (1,285 | ) | |||||||||||||||||||||||
1,708 | 4,192 | 1,756 | 88 | 4,258 | 2,059 | 1,620 | 303 | 879 | ||||||||||||||||||||||||||||||||
249 | 383 | 413 | 276 | 428 | 471 | 460 | 421 | 542 | ||||||||||||||||||||||||||||||||
(2,773 | ) | (2,086 | ) | (3,770 | ) | (3,840 | ) | (4,917 | ) | (10,910 | ) | (1,468 | ) | (2,770 | ) | (4,575 | ) | |||||||||||||||||||||||
(816 | ) | 2,489 | (1,601 | ) | (3,476 | ) | (231 | ) | (8,380 | ) | 612 | (2,046 | ) | (3,154 | ) | |||||||||||||||||||||||||
1,135 | 1,840 | 577 | — | — | — | 132 | 485 | 273 | ||||||||||||||||||||||||||||||||
58 | 65 | 49 | — | — | — | 178 | 172 | 172 | ||||||||||||||||||||||||||||||||
(585 | ) | (109 | ) | (439 | ) | — | — | — | (556 | ) | (950 | ) | (924 | ) | ||||||||||||||||||||||||||
608 | 1,796 | 187 | — | — | — | (246 | ) | (293 | ) | (479 | ) | |||||||||||||||||||||||||||||
7,852 | 6,071 | 4,068 | 4,709 | 6,325 | 2,159 | 4,754 | 1,391 | 1,223 | ||||||||||||||||||||||||||||||||
30 | 33 | 22 | 57 | 53 | 8 | 33 | 15 | 13 | ||||||||||||||||||||||||||||||||
(5,145 | ) | (2,349 | ) | (3,260 | ) | (5,572 | ) | (8,784 | ) | (11,728 | ) | (2,514 | ) | (2,293 | ) | (1,255 | ) | |||||||||||||||||||||||
2,737 | 3,755 | 830 | (806 | ) | (2,406 | ) | (9,561 | ) | 2,273 | (887 | ) | (19 | ) | |||||||||||||||||||||||||||
2,529 | 8,040 | (584 | ) | (4,282 | ) | (2,637 | ) | (17,941 | ) | 2,639 | (3,226 | ) | (3,652 | ) | ||||||||||||||||||||||||||
1,630 | 7,658 | (633 | ) | (5,750 | ) | (3,729 | ) | (18,692 | ) | 1,547 | (3,676 | ) | (3,819 | ) | ||||||||||||||||||||||||||
34,512 | 26,854 | 27,487 | 47,988 | 51,717 | 70,409 | 20,148 | 23,824 | 27,643 | ||||||||||||||||||||||||||||||||
$ | 36,142 | $ | 34,512 | $ | 26,854 | $ | 42,238 | $ | 47,988 | $ | 51,717 | $ | 21,695 | $ | 20,148 | $ | 23,824 | |||||||||||||||||||||||
$ | 17 | $ | 9 | $ | 24 | $ | 34 | $ | 23 | $ | 96 | $ | 39 | $ | 7 | $ | 62 | |||||||||||||||||||||||
First American Funds Annual Report 2006 113
Table of Contents
Statements of Changes in Net Assets continued
Minnesota | ||||||||||||||||||||||||||||
Intermediate | Intermediate | |||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | |||||||||||||||||||||||||||
Nine-Month | Nine-Month | |||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 20,171 | $ | 27,443 | $ | 29,117 | $ | 6,441 | $ | 9,362 | $ | 10,291 | ||||||||||||||||
Net realized gain (loss) on investments | 881 | 1,758 | 3,586 | 874 | 1,370 | 796 | ||||||||||||||||||||||
Net realized gain on futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (16,513 | ) | (13,264 | ) | (11,098 | ) | (5,474 | ) | (4,978 | ) | (3,173 | ) | ||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Net increase in net assets resulting from operations | 4,539 | 15,937 | 21,605 | 1,841 | 5,754 | 7,914 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (1,012 | ) | (1,423 | ) | (1,374 | ) | (843 | ) | (1,267 | ) | (1,251 | ) | ||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | (19,466 | ) | (26,720 | ) | (27,568 | ) | (5,686 | ) | (8,038 | ) | (9,017 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (85 | ) | (194 | ) | (38 | ) | (183 | ) | (114 | ) | (59 | ) | ||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y | (1,527 | ) | (3,485 | ) | (799 | ) | (1,195 | ) | (683 | ) | (444 | ) | ||||||||||||||||
Total distributions | (22,090 | ) | (31,822 | ) | (29,779 | ) | (7,907 | ) | (10,102 | ) | (10,771 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 3,630 | 7,869 | 15,334 | 2,992 | 5,677 | 13,308 | ||||||||||||||||||||||
Reinvestment of distributions | 824 | 1,256 | 1,138 | 738 | 1,026 | 940 | ||||||||||||||||||||||
Payments for redemptions | (5,699 | ) | (8,912 | ) | (14,985 | ) | (8,720 | ) | (8,801 | ) | (9,940 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (1,245 | ) | 213 | 1,487 | (4,990 | ) | (2,098 | ) | 4,308 | |||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | — | — | — | — | — | — | ||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | — | — | — | — | — | — | ||||||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | — | — | — | — | — | — | ||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 84,989 | 111,544 | 98,239 | 17,422 | 16,162 | 21,189 | ||||||||||||||||||||||
Reinvestment of distributions | 2,325 | 3,541 | 2,319 | 352 | 335 | 333 | ||||||||||||||||||||||
Payments for redemptions | (115,490 | ) | (96,251 | ) | (152,459 | ) | (34,284 | ) | (32,427 | ) | (41,022 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | (28,176 | ) | 18,834 | (51,901 | ) | (16,510 | ) | (15,930 | ) | (19,500 | ) | |||||||||||||||||
Increase (decrease) in net assets from capital share transactions | (29,421 | ) | 19,047 | (50,414 | ) | (21,500 | ) | (18,028 | ) | (15,192 | ) | |||||||||||||||||
Total increase (decrease) in net assets | (46,972 | ) | 3,162 | (58,588 | ) | (27,566 | ) | (22,376 | ) | (18,049 | ) | |||||||||||||||||
Net assets at beginning of period | 675,799 | 672,637 | 731,225 | 229,577 | 251,953 | 270,002 | ||||||||||||||||||||||
Net assets at end of period | $ | 628,827 | $ | 675,799 | $ | 672,637 | $ | 202,011 | $ | 229,577 | $ | 251,953 | ||||||||||||||||
Undistributed net investment income at end of period | $ | — | $ | 46 | $ | 746 | $ | 65 | $ | 153 | $ | 96 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
114 First American Funds Annual Report 2006
Table of Contents
Minnesota | Missouri | Nebraska | ||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||
$ | 5,120 | $ | 6,796 | $ | 6,945 | $ | 5,183 | $ | 6,983 | $ | 7,270 | $ | 1,243 | $ | 1,528 | $ | 1,416 | |||||||||||||||||||||||
382 | 399 | 851 | 622 | 1,283 | 913 | 153 | 67 | (5 | ) | |||||||||||||||||||||||||||||||
51 | — | — | — | — | — | 8 | — | — | ||||||||||||||||||||||||||||||||
(3,439 | ) | 20 | (1,049 | ) | (4,893 | ) | (2,964 | ) | (1,413 | ) | (1,126 | ) | (332 | ) | 91 | |||||||||||||||||||||||||
— | — | — | — | — | — | 20 | — | — | ||||||||||||||||||||||||||||||||
2,114 | 7,215 | 6,747 | 912 | 5,302 | 6,770 | 298 | 1,263 | 1,502 | ||||||||||||||||||||||||||||||||
(3,313 | ) | (4,455 | ) | (4,878 | ) | (811 | ) | (1,038 | ) | (1,014 | ) | (204 | ) | (239 | ) | (178 | ) | |||||||||||||||||||||||
(285 | ) | (361 | ) | (421 | ) | (5 | ) | (7 | ) | (8 | ) | (41 | ) | (65 | ) | (60 | ) | |||||||||||||||||||||||
(1,648 | ) | (1,939 | ) | (1,970 | ) | (4,402 | ) | (5,959 | ) | (6,239 | ) | (991 | ) | (1,277 | ) | (1,153 | ) | |||||||||||||||||||||||
(259 | ) | (552 | ) | (947 | ) | (217 | ) | (140 | ) | (75 | ) | (11 | ) | — | (17 | ) | ||||||||||||||||||||||||
(25 | ) | (49 | ) | (93 | ) | (2 | ) | (1 | ) | (1 | ) | (3 | ) | — | (6 | ) | ||||||||||||||||||||||||
(115 | ) | (210 | ) | (358 | ) | (1,080 | ) | (783 | ) | (437 | ) | (49 | ) | — | (99 | ) | ||||||||||||||||||||||||
(5,645 | ) | (7,566 | ) | (8,667 | ) | (6,517 | ) | (7,928 | ) | (7,774 | ) | (1,299 | ) | (1,581 | ) | (1,513 | ) | |||||||||||||||||||||||
12,726 | 8,058 | 7,430 | 798 | 4,587 | 3,852 | 780 | 3,144 | 1,430 | ||||||||||||||||||||||||||||||||
2,905 | 4,005 | 5,356 | 524 | 621 | 564 | 117 | 113 | 120 | ||||||||||||||||||||||||||||||||
(19,024 | ) | (20,033 | ) | (22,419 | ) | (3,624 | ) | (1,714 | ) | (5,313 | ) | (952 | ) | (989 | ) | (1,516 | ) | |||||||||||||||||||||||
(3,393 | ) | (7,970 | ) | (9,633 | ) | (2,302 | ) | 3,494 | (897 | ) | (55 | ) | 2,268 | 34 | ||||||||||||||||||||||||||
1,999 | 933 | 854 | 25 | 2 | 2 | 158 | 411 | 547 | ||||||||||||||||||||||||||||||||
289 | 384 | 480 | 6 | 8 | 8 | 31 | 47 | 49 | ||||||||||||||||||||||||||||||||
(1,559 | ) | (1,841 | ) | (2,766 | ) | (1 | ) | (34 | ) | (70 | ) | (229 | ) | (736 | ) | (389 | ) | |||||||||||||||||||||||
729 | (524 | ) | (1,432 | ) | 30 | (24 | ) | (60 | ) | (40 | ) | (278 | ) | 207 | ||||||||||||||||||||||||||
11,180 | 8,746 | 6,064 | 14,690 | 22,140 | 15,823 | 4,187 | 7,132 | 4,887 | ||||||||||||||||||||||||||||||||
158 | 211 | 239 | 279 | 279 | 269 | 75 | 93 | 63 | ||||||||||||||||||||||||||||||||
(7,977 | ) | (5,285 | ) | (10,775 | ) | (23,600 | ) | (21,183 | ) | (30,637 | ) | (4,541 | ) | (4,286 | ) | (3,318 | ) | |||||||||||||||||||||||
3,361 | 3,672 | (4,472 | ) | (8,631 | ) | 1,236 | (14,545 | ) | (279 | ) | 2,939 | 1,632 | ||||||||||||||||||||||||||||
697 | (4,822 | ) | (15,537 | ) | (10,903 | ) | 4,706 | (15,502 | ) | (374 | ) | 4,929 | 1,873 | |||||||||||||||||||||||||||
(2,834 | ) | (5,173 | ) | (17,457 | ) | (16,508 | ) | 2,080 | (16,506 | ) | (1,375 | ) | 4,611 | 1,862 | ||||||||||||||||||||||||||
163,095 | 168,268 | 185,725 | 182,088 | 180,008 | 196,514 | 41,119 | 36,508 | 34,646 | ||||||||||||||||||||||||||||||||
$ | 160,261 | $ | 163,095 | $ | 168,268 | $ | 165,580 | $ | 182,088 | $ | 180,008 | $ | 39,744 | $ | 41,119 | $ | 36,508 | |||||||||||||||||||||||
$ | 56 | $ | 182 | $ | 141 | $ | 31 | $ | 66 | $ | 87 | $ | 19 | $ | 12 | $ | 65 | |||||||||||||||||||||||
First American Funds Annual Report 2006 115
Table of Contents
Statements of Changes in Net Assets continued
Oregon | ||||||||||||||||||||||||||||
Ohio | Intermediate | |||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | |||||||||||||||||||||||||||
Nine-Month | Nine-Month | |||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||||||
Investment income – net | $ | 1,194 | $ | 1,552 | $ | 1,477 | $ | 3,714 | $ | 5,287 | $ | 5,538 | ||||||||||||||||
Net realized gain (loss) on investments | 36 | 58 | 115 | 255 | 590 | 530 | ||||||||||||||||||||||
Net realized gain on futures contracts | 9 | — | — | — | — | — | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (1,077 | ) | (282 | ) | 120 | (3,575 | ) | (3,269 | ) | (1,354 | ) | |||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | — | — | — | — | — | — | ||||||||||||||||||||||
Net increase in net assets resulting from operations | 162 | 1,328 | 1,712 | 394 | 2,608 | 4,714 | ||||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | ||||||||||||||||||||||||||||
Investment income – net: | ||||||||||||||||||||||||||||
Class A | (24 | ) | (36 | ) | (38 | ) | (268 | ) | (317 | ) | (324 | ) | ||||||||||||||||
Class C | (5 | ) | (4 | ) | (7 | ) | — | — | — | |||||||||||||||||||
Class Y | (1,178 | ) | (1,524 | ) | (1,393 | ) | (3,398 | ) | (4,973 | ) | (5,228 | ) | ||||||||||||||||
Net realized gain on investments: | ||||||||||||||||||||||||||||
Class A | (1 | ) | (3 | ) | (8 | ) | (42 | ) | (30 | ) | (66 | ) | ||||||||||||||||
Class C | — | — | (2 | ) | — | — | — | |||||||||||||||||||||
Class Y | (40 | ) | (130 | ) | (358 | ) | (514 | ) | (481 | ) | (1,095 | ) | ||||||||||||||||
Total distributions | (1,248 | ) | (1,697 | ) | (1,806 | ) | (4,222 | ) | (5,801 | ) | (6,713 | ) | ||||||||||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | ||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Proceeds from sales | 152 | 253 | 810 | 2,798 | 2,055 | 2,426 | ||||||||||||||||||||||
Reinvestment of distributions | 15 | 25 | 20 | 197 | 226 | 244 | ||||||||||||||||||||||
Payments for redemptions | (291 | ) | (480 | ) | (469 | ) | (2,604 | ) | (1,426 | ) | (2,041 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class A transactions | (124 | ) | (202 | ) | 361 | 391 | 855 | 629 | ||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Proceeds from sales | 80 | 110 | 112 | — | — | — | ||||||||||||||||||||||
Reinvestment of distributions | 2 | 1 | 2 | — | — | — | ||||||||||||||||||||||
Payments for redemptions (note 3) | (42 | ) | (55 | ) | (206 | ) | — | — | — | |||||||||||||||||||
Increase (decrease) in net assets from Class C transactions | 40 | 56 | (92 | ) | — | — | — | |||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Proceeds from sales | 4,878 | 8,183 | 5,782 | 9,313 | 19,409 | 17,962 | ||||||||||||||||||||||
Reinvestment of distributions | 182 | 238 | 263 | 352 | 405 | 779 | ||||||||||||||||||||||
Payments for redemptions | (4,500 | ) | (6,200 | ) | (6,189 | ) | (28,397 | ) | (21,076 | ) | (25,235 | ) | ||||||||||||||||
Increase (decrease) in net assets from Class Y transactions | 560 | 2,221 | (144 | ) | (18,732 | ) | (1,262 | ) | (6,494 | ) | ||||||||||||||||||
Increase (decrease) in net assets from capital share transactions | 476 | 2,075 | 125 | (18,341 | ) | (407 | ) | (5,865 | ) | |||||||||||||||||||
Total increase (decrease) in net assets | (610 | ) | 1,706 | 31 | (22,169 | ) | (3,600 | ) | (7,864 | ) | ||||||||||||||||||
Net assets at beginning of period | 42,266 | 40,560 | 40,529 | 142,969 | 146,569 | 154,433 | ||||||||||||||||||||||
Net assets at end of period | $ | 41,656 | $ | 42,266 | $ | 40,560 | $ | 120,800 | $ | 142,969 | $ | 146,569 | ||||||||||||||||
Undistributed net investment income at end of period | $ | 16 | $ | 29 | $ | 41 | $ | 67 | $ | 19 | $ | 22 | ||||||||||||||||
The accompanying notes are an integral part of the financial statements.
116 First American Funds Annual Report 2006
Table of Contents
Short | |||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||
Nine-Month | Nine-Month | ||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||
$ | 5,998 | $ | 10,162 | $ | 11,631 | $ | 16,568 | $ | 20,609 | $ | 21,168 | ||||||||||||||||
(611 | ) | (387 | ) | (238 | ) | 2,831 | 1,085 | 4,298 | |||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||||||
(2,031 | ) | (6,969 | ) | (6,917 | ) | (11,649 | ) | (206 | ) | (4,320 | ) | ||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||||||
3,356 | 2,806 | 4,476 | 7,750 | 21,488 | 21,146 | ||||||||||||||||||||||
(79 | ) | (134 | ) | (170 | ) | (1,170 | ) | (1,623 | ) | (1,741 | ) | ||||||||||||||||
— | — | — | (72 | ) | (105 | ) | (142 | ) | |||||||||||||||||||
(6,055 | ) | (10,086 | ) | (11,193 | ) | (15,430 | ) | (18,782 | ) | (19,659 | ) | ||||||||||||||||
— | — | (44 | ) | (122 | ) | (379 | ) | (405 | ) | ||||||||||||||||||
— | — | — | (9 | ) | (28 | ) | (46 | ) | |||||||||||||||||||
— | — | (2,391 | ) | (1,492 | ) | (4,002 | ) | (4,411 | ) | ||||||||||||||||||
(6,134 | ) | (10,220 | ) | (13,798 | ) | (18,295 | ) | (24,919 | ) | (26,404 | ) | ||||||||||||||||
1,175 | 2,110 | 3,312 | 4,203 | 4,259 | 8,839 | ||||||||||||||||||||||
64 | 104 | 164 | 1,055 | 1,669 | 1,855 | ||||||||||||||||||||||
(1,984 | ) | (4,320 | ) | (3,434 | ) | (6,155 | ) | (7,589 | ) | (12,976 | ) | ||||||||||||||||
(745 | ) | (2,106 | ) | 42 | (897 | ) | (1,661 | ) | (2,282 | ) | |||||||||||||||||
— | — | — | 30 | 277 | 462 | ||||||||||||||||||||||
— | — | — | 74 | 126 | 181 | ||||||||||||||||||||||
— | — | — | (554 | ) | (352 | ) | (2,823 | ) | |||||||||||||||||||
— | — | — | (450 | ) | 51 | (2,180 | ) | ||||||||||||||||||||
32,598 | 67,779 | 163,207 | 80,167 | 69,526 | 44,937 | ||||||||||||||||||||||
439 | 676 | 3,494 | 902 | 1,078 | 1,184 | ||||||||||||||||||||||
(124,043 | ) | (150,873 | ) | (135,099 | ) | (51,758 | ) | (47,832 | ) | (85,368 | ) | ||||||||||||||||
(91,006 | ) | (82,418 | ) | 31,602 | 29,311 | 22,772 | (39,247 | ) | |||||||||||||||||||
(91,751 | ) | (84,524 | ) | 31,644 | 27,964 | 21,162 | (43,709 | ) | |||||||||||||||||||
(94,529 | ) | (91,938 | ) | 22,322 | 17,419 | 17,731 | (48,967 | ) | |||||||||||||||||||
333,750 | 425,688 | 403,366 | 477,220 | 459,489 | 508,456 | ||||||||||||||||||||||
$ | 239,221 | $ | 333,750 | $ | 425,688 | $ | 494,639 | $ | 477,220 | $ | 459,489 | ||||||||||||||||
$ | 119 | $ | 255 | $ | 313 | $ | 81 | $ | 185 | $ | 86 | ||||||||||||||||
First American Funds Annual Report 2006 117
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | from Net | from Net | Value | ||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | End of | ||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Arizona Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.19 | $ | 0.33 | $ | (0.25 | ) | $ | (0.33 | ) | $ | (0.09 | ) | $ | 10.85 | ||||||||||||||||||
2005 (2) | 11.42 | 0.46 | (0.07 | ) | (0.49 | ) | (0.13 | ) | 11.19 | ||||||||||||||||||||||||
2004 (2) | 11.33 | 0.49 | 0.12 | (0.47 | ) | (0.05 | ) | 11.42 | |||||||||||||||||||||||||
2003 (2) | 11.41 | 0.46 | (0.06 | ) | (0.45 | ) | (0.03 | ) | 11.33 | ||||||||||||||||||||||||
2002 (2) | 10.99 | 0.48 | 0.44 | (0.48 | ) | (0.02 | ) | 11.41 | |||||||||||||||||||||||||
2001 (2) | 10.45 | 0.55 | 0.53 | (0.54 | ) | — | 10.99 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.18 | $ | 0.30 | $ | (0.25 | ) | $ | (0.30 | ) | $ | (0.09 | ) | $ | 10.84 | ||||||||||||||||||
2005 (2) | 11.41 | 0.42 | (0.08 | ) | (0.44 | ) | (0.13 | ) | 11.18 | ||||||||||||||||||||||||
2004 (2) | 11.31 | 0.43 | 0.14 | (0.42 | ) | (0.05 | ) | 11.41 | |||||||||||||||||||||||||
2003 (2) | 11.40 | 0.42 | (0.08 | ) | (0.40 | ) | (0.03 | ) | 11.31 | ||||||||||||||||||||||||
2002 (2) | 10.98 | 0.44 | 0.44 | (0.44 | ) | (0.02 | ) | 11.40 | |||||||||||||||||||||||||
2001 (2) | 10.44 | 0.53 | 0.51 | (0.50 | ) | — | 10.98 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.19 | $ | 0.35 | $ | (0.25 | ) | $ | (0.35 | ) | $ | (0.09 | ) | $ | 10.85 | ||||||||||||||||||
2005 (2) | 11.43 | 0.50 | (0.09 | ) | (0.52 | ) | (0.13 | ) | 11.19 | ||||||||||||||||||||||||
2004 (2) | 11.33 | 0.50 | 0.15 | (0.50 | ) | (0.05 | ) | 11.43 | |||||||||||||||||||||||||
2003 (2) | 11.41 | 0.48 | (0.06 | ) | (0.47 | ) | (0.03 | ) | 11.33 | ||||||||||||||||||||||||
2002 (2) | 10.99 | 0.51 | 0.44 | (0.51 | ) | (0.02 | ) | 11.41 | |||||||||||||||||||||||||
2001 (2) | 10.45 | 0.57 | 0.53 | (0.56 | ) | — | 10.99 | ||||||||||||||||||||||||||
California Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.35 | $ | 0.28 | $ | (0.20 | ) | $ | (0.29 | ) | $ | (0.03 | ) | $ | 10.11 | ||||||||||||||||||
2005 (2) | 10.55 | 0.39 | (0.13 | ) | (0.39 | ) | (0.07 | ) | 10.35 | ||||||||||||||||||||||||
2004 (2) | 10.64 | 0.40 | (0.05 | ) | (0.41 | ) | (0.03 | ) | 10.55 | ||||||||||||||||||||||||
2003 (2) | 10.80 | 0.41 | (0.14 | ) | (0.41 | ) | (0.02 | ) | 10.64 | ||||||||||||||||||||||||
2002 (2) | 10.41 | 0.42 | 0.39 | (0.42 | ) | — | 10.80 | ||||||||||||||||||||||||||
2001 (2) | 10.02 | 0.44 | 0.39 | (0.44 | ) | — | 10.41 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.37 | $ | 0.30 | $ | (0.21 | ) | $ | (0.30 | ) | $ | (0.03 | ) | $ | 10.13 | ||||||||||||||||||
2005 (2) | 10.57 | 0.40 | (0.13 | ) | (0.40 | ) | (0.07 | ) | 10.37 | ||||||||||||||||||||||||
2004 (2) | 10.66 | 0.41 | (0.05 | ) | (0.42 | ) | (0.03 | ) | 10.57 | ||||||||||||||||||||||||
2003 (2) | 10.81 | 0.43 | (0.14 | ) | (0.42 | ) | (0.02 | ) | 10.66 | ||||||||||||||||||||||||
2002 (2) | 10.43 | 0.43 | 0.38 | (0.43 | ) | — | 10.81 | ||||||||||||||||||||||||||
2001 (2) | 10.04 | 0.44 | 0.39 | (0.44 | ) | — | 10.43 | ||||||||||||||||||||||||||
California Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.24 | $ | 0.33 | $ | (0.26 | ) | $ | (0.33 | ) | $ | (0.02 | ) | $ | 10.96 | ||||||||||||||||||
2005 (2) | 11.40 | 0.44 | (0.05 | ) | (0.44 | ) | (0.11 | ) | 11.24 | ||||||||||||||||||||||||
2004 (2) | 11.40 | 0.46 | 0.08 | (0.46 | ) | (0.08 | ) | 11.40 | |||||||||||||||||||||||||
2003 (2) | 11.63 | 0.47 | (0.16 | ) | (0.47 | ) | (0.07 | ) | 11.40 | ||||||||||||||||||||||||
2002 (2) | 11.17 | 0.48 | 0.50 | (0.47 | ) | (0.05 | ) | 11.63 | |||||||||||||||||||||||||
2001 (2) | 10.66 | 0.52 | 0.50 | (0.51 | ) | — | 11.17 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.25 | $ | 0.30 | $ | (0.26 | ) | $ | (0.30 | ) | $ | (0.02 | ) | $ | 10.97 | ||||||||||||||||||
2005 (2) | 11.41 | 0.40 | (0.05 | ) | (0.40 | ) | (0.11 | ) | 11.25 | ||||||||||||||||||||||||
2004 (2) | 11.41 | 0.41 | 0.09 | (0.42 | ) | (0.08 | ) | 11.41 | |||||||||||||||||||||||||
2003 (2) | 11.64 | 0.43 | (0.16 | ) | (0.43 | ) | (0.07 | ) | 11.41 | ||||||||||||||||||||||||
2002 (2) | 11.18 | 0.42 | 0.52 | (0.43 | ) | (0.05 | ) | 11.64 | |||||||||||||||||||||||||
2001 (2) | 10.66 | 0.47 | 0.51 | (0.46 | ) | — | 11.18 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.25 | $ | 0.35 | $ | (0.26 | ) | $ | (0.35 | ) | $ | (0.02 | ) | $ | 10.97 | ||||||||||||||||||
2005 (2) | 11.40 | 0.47 | (0.04 | ) | (0.47 | ) | (0.11 | ) | 11.25 | ||||||||||||||||||||||||
2004 (2) | 11.40 | 0.48 | 0.09 | (0.49 | ) | (0.08 | ) | 11.40 | |||||||||||||||||||||||||
2003 (2) | 11.63 | 0.49 | (0.15 | ) | (0.50 | ) | (0.07 | ) | 11.40 | ||||||||||||||||||||||||
2002 (2) | 11.17 | 0.49 | 0.52 | (0.50 | ) | (0.05 | ) | 11.63 | |||||||||||||||||||||||||
2001 (2) | 10.66 | 0.54 | 0.50 | (0.53 | ) | — | 11.17 | ||||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | For the period October 1 to September 30 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.
118 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return (3) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
0.73 | % | $ | 9,041 | 0.75 | % | 4.02 | % | 1.47 | % | 3.30 | % | 47 | % | ||||||||||||||||||||||||
3.49 | 9,547 | 0.75 | 4.14 | 1.18 | 3.71 | 20 | |||||||||||||||||||||||||||||||
5.50 | 9,008 | 0.75 | 4.16 | 1.12 | 3.79 | 21 | |||||||||||||||||||||||||||||||
3.61 | 11,928 | 0.75 | 4.03 | 1.09 | 3.69 | 37 | |||||||||||||||||||||||||||||||
8.69 | 12,413 | 0.75 | 4.40 | 1.37 | 3.78 | 30 | |||||||||||||||||||||||||||||||
10.50 | 13,971 | 0.25 | 5.10 | 1.45 | 3.90 | 19 | |||||||||||||||||||||||||||||||
0.42 | % | $ | 1,358 | 1.15 | % | 3.62 | % | 2.22 | % | 2.55 | % | 47 | % | ||||||||||||||||||||||||
3.08 | 1,628 | 1.15 | 3.74 | 1.93 | 2.96 | 20 | |||||||||||||||||||||||||||||||
5.17 | 1,588 | 1.15 | 3.76 | 1.87 | 3.04 | 21 | |||||||||||||||||||||||||||||||
3.10 | 1,857 | 1.15 | 3.63 | 1.84 | 2.94 | 37 | |||||||||||||||||||||||||||||||
8.28 | 2,910 | 1.15 | 4.00 | 2.12 | 3.03 | 30 | |||||||||||||||||||||||||||||||
10.15 | 2,003 | 0.65 | 4.66 | 1.84 | 3.47 | 19 | |||||||||||||||||||||||||||||||
0.92 | % | $ | 15,614 | 0.50 | % | 4.27 | % | 1.22 | % | 3.55 | % | 47 | % | ||||||||||||||||||||||||
3.65 | 14,035 | 0.50 | 4.39 | 0.93 | 3.96 | 20 | |||||||||||||||||||||||||||||||
5.85 | 9,520 | 0.50 | 4.42 | 0.87 | 4.05 | 21 | |||||||||||||||||||||||||||||||
3.86 | 9,244 | 0.50 | 4.28 | 0.84 | 3.94 | 37 | |||||||||||||||||||||||||||||||
8.95 | 10,656 | 0.50 | 4.64 | 1.12 | 4.02 | 30 | |||||||||||||||||||||||||||||||
10.76 | 5,822 | — | 5.33 | 1.19 | 4.14 | 19 | |||||||||||||||||||||||||||||||
0.78 | % | $ | 3,441 | 0.85 | % | 3.73 | % | 1.22 | % | 3.36 | % | 21 | % | ||||||||||||||||||||||||
2.51 | 3,946 | 0.85 | 3.71 | 1.10 | 3.46 | 29 | |||||||||||||||||||||||||||||||
3.36 | 3,381 | 0.85 | 3.78 | 1.06 | 3.57 | 20 | |||||||||||||||||||||||||||||||
2.58 | 4,262 | 0.85 | 3.86 | 1.06 | 3.65 | 17 | |||||||||||||||||||||||||||||||
8.01 | 4,870 | 0.85 | 4.01 | 1.14 | 3.72 | 23 | |||||||||||||||||||||||||||||||
8.41 | 3,392 | 0.70 | 4.25 | 1.21 | 3.74 | 12 | |||||||||||||||||||||||||||||||
0.88 | % | $ | 51,726 | 0.70 | % | 3.89 | % | 0.97 | % | 3.62 | % | 21 | % | ||||||||||||||||||||||||
2.66 | 49,292 | 0.70 | 3.86 | 0.85 | 3.71 | 29 | |||||||||||||||||||||||||||||||
3.51 | 46,953 | 0.70 | 3.93 | 0.81 | 3.82 | 20 | |||||||||||||||||||||||||||||||
2.83 | 44,600 | 0.70 | 4.02 | 0.81 | 3.91 | 17 | |||||||||||||||||||||||||||||||
8.05 | 45,212 | 0.70 | 4.16 | 0.89 | 3.97 | 23 | |||||||||||||||||||||||||||||||
8.39 | 43,647 | 0.70 | 4.26 | 0.96 | 4.00 | 12 | |||||||||||||||||||||||||||||||
0.63 | % | $ | 10,783 | 0.75 | % | 3.99 | % | 1.34 | % | 3.40 | % | 24 | % | ||||||||||||||||||||||||
3.50 | 11,888 | 0.75 | 3.88 | 1.15 | 3.48 | 14 | |||||||||||||||||||||||||||||||
4.93 | 9,513 | 0.75 | 4.03 | 1.09 | 3.69 | 16 | |||||||||||||||||||||||||||||||
2.85 | 11,143 | 0.75 | 4.16 | 1.08 | 3.83 | 20 | |||||||||||||||||||||||||||||||
9.10 | 12,954 | 0.75 | 4.26 | 1.31 | 3.70 | 33 | |||||||||||||||||||||||||||||||
9.73 | 18,139 | 0.25 | 4.75 | 1.35 | 3.65 | 19 | |||||||||||||||||||||||||||||||
0.33 | % | $ | 3,592 | 1.15 | % | 3.60 | % | 2.09 | % | 2.66 | % | 24 | % | ||||||||||||||||||||||||
3.11 | 3,068 | 1.15 | 3.47 | 1.90 | 2.72 | 14 | |||||||||||||||||||||||||||||||
4.52 | 1,294 | 1.15 | 3.65 | 1.84 | 2.96 | 16 | |||||||||||||||||||||||||||||||
2.45 | 1,101 | 1.15 | 3.75 | 1.83 | 3.07 | 20 | |||||||||||||||||||||||||||||||
8.69 | 1,115 | 1.15 | 3.86 | 2.06 | 2.95 | 33 | |||||||||||||||||||||||||||||||
9.42 | 647 | 0.65 | 4.38 | 1.75 | 3.28 | 19 | |||||||||||||||||||||||||||||||
0.82 | % | $ | 21,767 | 0.50 | % | 4.24 | % | 1.09 | % | 3.65 | % | 24 | % | ||||||||||||||||||||||||
3.85 | 19,556 | 0.50 | 4.12 | 0.90 | 3.72 | 14 | |||||||||||||||||||||||||||||||
5.19 | 16,047 | 0.50 | 4.29 | 0.84 | 3.95 | 16 | |||||||||||||||||||||||||||||||
3.11 | 15,243 | 0.50 | 4.40 | 0.83 | 4.07 | 20 | |||||||||||||||||||||||||||||||
9.36 | 11,853 | 0.50 | 4.51 | 1.06 | 3.95 | 33 | |||||||||||||||||||||||||||||||
9.99 | 6,726 | — | 5.00 | 1.10 | 3.90 | 19 | |||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 119
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | from Net | from | Value | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | Return of | End of | |||||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | Capital | Period | |||||||||||||||||||||||||||||||
Colorado Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.74 | $ | 0.32 | $ | (0.28 | ) | $ | (0.32 | ) | $ | (0.06 | ) | $ | — | $ | 10.40 | ||||||||||||||||||||
2005 (2) | 10.98 | 0.42 | (0.19 | ) | (0.43 | ) | (0.04 | ) | — | 10.74 | |||||||||||||||||||||||||||
2004 (2) | 11.08 | 0.45 | (0.11 | ) | (0.44 | ) | — | — | 10.98 | ||||||||||||||||||||||||||||
2003 (2) | 11.12 | 0.41 | (0.02 | ) | (0.43 | ) | — | — | 11.08 | ||||||||||||||||||||||||||||
2002 (2) | 10.79 | 0.47 | 0.32 | (0.46 | ) | — | — | 11.12 | |||||||||||||||||||||||||||||
2001 (2) | 10.28 | 0.46 | 0.52 | (0.47 | ) | — | — | 10.79 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.72 | $ | 0.33 | $ | (0.28 | ) | $ | (0.33 | ) | $ | (0.06 | ) | $ | — | $ | 10.38 | ||||||||||||||||||||
2005 (2) | 10.95 | 0.43 | (0.18 | ) | (0.44 | ) | (0.04 | ) | — | 10.72 | |||||||||||||||||||||||||||
2004 (2) | 11.05 | 0.46 | (0.11 | ) | (0.45 | ) | — | — | 10.95 | ||||||||||||||||||||||||||||
2003 (2) | 11.10 | 0.43 | (0.03 | ) | (0.45 | ) | — | — | 11.05 | ||||||||||||||||||||||||||||
2002 (2) | 10.76 | 0.49 | 0.33 | (0.48 | ) | — | — | 11.10 | |||||||||||||||||||||||||||||
2001 (2) | 10.26 | 0.48 | 0.49 | (0.47 | ) | — | — | 10.76 | |||||||||||||||||||||||||||||
Colorado Tax Free Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.30 | $ | 0.35 | $ | (0.26 | ) | $ | (0.34 | ) | $ | (0.32 | ) | $ | — | $ | 10.73 | ||||||||||||||||||||
2005 (2) | 11.52 | 0.49 | (0.11 | ) | (0.51 | ) | (0.09 | ) | — | 11.30 | |||||||||||||||||||||||||||
2004 (2) | 11.57 | 0.51 | 0.02 | (0.50 | ) | (0.08 | ) | — | 11.52 | ||||||||||||||||||||||||||||
2003 (2) | 11.65 | 0.50 | (0.10 | ) | (0.48 | ) | — | — | 11.57 | ||||||||||||||||||||||||||||
2002 (2) | 11.09 | 0.48 | 0.56 | (0.47 | ) | (0.01 | ) | — | 11.65 | ||||||||||||||||||||||||||||
2001 (2) | 10.42 | 0.54 | 0.66 | (0.53 | ) | — | — | 11.09 | |||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.28 | $ | 0.32 | $ | (0.27 | ) | $ | (0.30 | ) | $ | (0.32 | ) | $ | — | $ | 10.71 | ||||||||||||||||||||
2005 (2) | 11.50 | 0.43 | (0.10 | ) | (0.46 | ) | (0.09 | ) | — | 11.28 | |||||||||||||||||||||||||||
2004 (2) | 11.56 | 0.44 | 0.03 | (0.45 | ) | (0.08 | ) | — | 11.50 | ||||||||||||||||||||||||||||
2003 (2) | 11.63 | 0.44 | (0.08 | ) | (0.43 | ) | — | — | 11.56 | ||||||||||||||||||||||||||||
2002 (2) | 11.08 | 0.44 | 0.56 | (0.44 | ) | (0.01 | ) | — | 11.63 | ||||||||||||||||||||||||||||
2001 (2) | 10.41 | 0.49 | 0.67 | (0.49 | ) | — | — | 11.08 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.32 | $ | 0.37 | $ | (0.26 | ) | $ | (0.36 | ) | $ | (0.32 | ) | $ | — | $ | 10.75 | ||||||||||||||||||||
2005 (2) | 11.53 | 0.51 | (0.09 | ) | (0.54 | ) | (0.09 | ) | — | 11.32 | |||||||||||||||||||||||||||
2004 (2) | 11.59 | 0.52 | 0.03 | (0.53 | ) | (0.08 | ) | — | 11.53 | ||||||||||||||||||||||||||||
2003 (2) | 11.67 | 0.51 | (0.09 | ) | (0.50 | ) | — | — | 11.59 | ||||||||||||||||||||||||||||
2002 (2) | 11.10 | 0.48 | 0.60 | (0.50 | ) | (0.01 | ) | — | 11.67 | ||||||||||||||||||||||||||||
2001 (2) | 10.43 | 0.58 | 0.64 | (0.55 | ) | — | — | 11.10 | |||||||||||||||||||||||||||||
Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.92 | $ | 0.32 | $ | (0.26 | ) | $ | (0.32 | ) | $ | (0.03 | ) | $ | — | $ | 10.63 | ||||||||||||||||||||
2005 (2) | 11.18 | 0.44 | (0.19 | ) | (0.45 | ) | (0.06 | ) | — | 10.92 | |||||||||||||||||||||||||||
2004 (2) | 11.30 | 0.44 | (0.10 | ) | (0.45 | ) | (0.01 | ) | — | 11.18 | |||||||||||||||||||||||||||
2003 (2) | 11.32 | 0.44 | (0.03 | ) | (0.43 | ) | — | — | 11.30 | ||||||||||||||||||||||||||||
2002 (2) | 10.95 | 0.43 | 0.40 | (0.43 | ) | — | (0.03 | ) | 11.32 | ||||||||||||||||||||||||||||
2001 (2) | 10.48 | 0.48 | 0.46 | (0.47 | ) | — | — | 10.95 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.90 | $ | 0.33 | $ | (0.26 | ) | $ | (0.33 | ) | $ | (0.03 | ) | $ | — | $ | 10.61 | ||||||||||||||||||||
2005 (2) | 11.16 | 0.46 | (0.19 | ) | (0.47 | ) | (0.06 | ) | — | 10.90 | |||||||||||||||||||||||||||
2004 (2) | 11.28 | 0.46 | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | 11.16 | |||||||||||||||||||||||||||
2003 (2) | 11.30 | 0.46 | (0.03 | ) | (0.45 | ) | — | — | 11.28 | ||||||||||||||||||||||||||||
2002 (2) | 10.93 | 0.44 | 0.40 | (0.44 | ) | — | (0.03 | ) | 11.30 | ||||||||||||||||||||||||||||
2001 (2) | 10.46 | 0.48 | 0.46 | (0.47 | ) | — | — | 10.93 | |||||||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | For the period October 1 to September 30 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.
120 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return (3) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
0.37 | % | $ | 9,577 | 0.85 | % | 4.02 | % | 1.27 | % | 3.60 | % | 17 | % | ||||||||||||||||||||||||
2.11 | 13,426 | 0.85 | 3.85 | 1.10 | 3.60 | 20 | |||||||||||||||||||||||||||||||
3.12 | 13,969 | 0.85 | 4.00 | 1.06 | 3.79 | 4 | |||||||||||||||||||||||||||||||
3.64 | 22,555 | 0.85 | 3.79 | 1.06 | 3.58 | 14 | |||||||||||||||||||||||||||||||
7.56 | 15,244 | 0.85 | 4.48 | 1.11 | 4.22 | 15 | |||||||||||||||||||||||||||||||
9.75 | 8,320 | 0.70 | 4.55 | 1.34 | 3.91 | 24 | |||||||||||||||||||||||||||||||
0.49 | % | $ | 32,661 | 0.70 | % | 4.18 | % | 1.02 | % | 3.86 | % | 17 | % | ||||||||||||||||||||||||
2.36 | 34,562 | 0.70 | 4.01 | 0.85 | 3.86 | 20 | |||||||||||||||||||||||||||||||
3.29 | 37,748 | 0.70 | 4.15 | 0.81 | 4.04 | 4 | |||||||||||||||||||||||||||||||
3.71 | 47,854 | 0.70 | 3.94 | 0.81 | 3.83 | 14 | |||||||||||||||||||||||||||||||
7.83 | 48,398 | 0.70 | 4.60 | 0.86 | 4.44 | 15 | |||||||||||||||||||||||||||||||
9.67 | 47,907 | 0.70 | 4.58 | 1.09 | 4.19 | 24 | |||||||||||||||||||||||||||||||
0.77 | % | $ | 8,507 | 0.75 | % | 4.30 | % | 1.52 | % | 3.53 | % | 35 | % | ||||||||||||||||||||||||
3.36 | 8,362 | 0.75 | 4.23 | 1.18 | 3.80 | 30 | |||||||||||||||||||||||||||||||
4.71 | 10,598 | 0.75 | 4.25 | 1.09 | 3.91 | 12 | |||||||||||||||||||||||||||||||
3.53 | 13,843 | 0.75 | 4.23 | 1.07 | 3.91 | 14 | |||||||||||||||||||||||||||||||
9.72 | 19,633 | 0.75 | 4.32 | 1.30 | 3.77 | 22 | |||||||||||||||||||||||||||||||
11.78 | 20,550 | 0.25 | 5.03 | 1.42 | 3.86 | 23 | |||||||||||||||||||||||||||||||
0.47 | % | $ | 3,007 | 1.15 | % | 3.90 | % | 2.27 | % | 2.78 | % | 35 | % | ||||||||||||||||||||||||
2.95 | 3,423 | 1.15 | 3.83 | 1.93 | 3.05 | 30 | |||||||||||||||||||||||||||||||
4.21 | 3,787 | 1.15 | 3.85 | 1.84 | 3.16 | 12 | |||||||||||||||||||||||||||||||
3.23 | 4,284 | 1.15 | 3.83 | 1.82 | 3.16 | 14 | |||||||||||||||||||||||||||||||
9.23 | 3,705 | 1.15 | 3.95 | 2.05 | 3.05 | 22 | |||||||||||||||||||||||||||||||
11.41 | 1,698 | 0.65 | 4.61 | 1.82 | 3.44 | 23 | |||||||||||||||||||||||||||||||
0.96 | % | $ | 10,181 | 0.50 | % | 4.58 | % | 1.27 | % | 3.81 | % | 35 | % | ||||||||||||||||||||||||
3.70 | 8,363 | 0.50 | 4.48 | 0.93 | 4.05 | 30 | |||||||||||||||||||||||||||||||
4.87 | 9,439 | 0.50 | 4.51 | 0.84 | 4.17 | 12 | |||||||||||||||||||||||||||||||
3.78 | 9,516 | 0.50 | 4.49 | 0.82 | 4.17 | 14 | |||||||||||||||||||||||||||||||
10.07 | 9,244 | 0.50 | 4.59 | 1.05 | 4.04 | 22 | |||||||||||||||||||||||||||||||
12.02 | 1,923 | — | 5.32 | 1.18 | 4.14 | 23 | |||||||||||||||||||||||||||||||
0.56 | % | $ | 32,521 | 0.85 | % | 3.95 | % | 1.05 | % | 3.75 | % | 15 | % | ||||||||||||||||||||||||
2.31 | 34,658 | 0.85 | 3.98 | 1.05 | 3.78 | 15 | |||||||||||||||||||||||||||||||
3.06 | 35,276 | 0.85 | 3.98 | 1.05 | 3.78 | 10 | |||||||||||||||||||||||||||||||
3.74 | 34,231 | 0.85 | 3.91 | 1.05 | 3.71 | 15 | |||||||||||||||||||||||||||||||
7.78 | 29,838 | 0.85 | 3.87 | 1.03 | 3.69 | 28 | |||||||||||||||||||||||||||||||
9.19 | 23,236 | 0.70 | 4.43 | 1.13 | 4.00 | 12 | |||||||||||||||||||||||||||||||
0.67 | % | $ | 596,306 | 0.70 | % | 4.10 | % | 0.80 | % | 4.00 | % | 15 | % | ||||||||||||||||||||||||
2.47 | 641,141 | 0.70 | 4.13 | 0.80 | 4.03 | 15 | |||||||||||||||||||||||||||||||
3.22 | 637,361 | 0.70 | 4.13 | 0.80 | 4.03 | 10 | |||||||||||||||||||||||||||||||
3.90 | 696,994 | 0.70 | 4.05 | 0.80 | 3.95 | 15 | |||||||||||||||||||||||||||||||
7.95 | 485,592 | 0.70 | 4.04 | 0.78 | 3.96 | 28 | |||||||||||||||||||||||||||||||
9.21 | 458,743 | 0.70 | 4.43 | 0.87 | 4.26 | 12 | |||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 121
Table of Contents
Financial Highlights continued
Realized and | ||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Net | Gains | from Net | from Net | Value | |||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | End of | |||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | Period | |||||||||||||||||||||||||||
Minnesota Intermediate Tax Free Fund | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.16 | $ | 0.29 | $ | (0.22 | ) | $ | (0.29 | ) | $ | (0.06 | ) | $ | 9.88 | |||||||||||||||||
2005 (2) | 10.34 | 0.39 | (0.15 | ) | (0.39 | ) | (0.03 | ) | 10.16 | |||||||||||||||||||||||
2004 (2) | 10.44 | 0.39 | (0.08 | ) | (0.39 | ) | (0.02 | ) | 10.34 | |||||||||||||||||||||||
2003 (2) | 10.51 | 0.40 | (0.04 | ) | (0.41 | ) | (0.02 | ) | 10.44 | |||||||||||||||||||||||
2002 (2) | 10.21 | 0.43 | 0.29 | (0.42 | ) | — | 10.51 | |||||||||||||||||||||||||
2001 (2) | 9.80 | 0.44 | 0.41 | (0.44 | ) | — | 10.21 | |||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.11 | $ | 0.30 | $ | (0.22 | ) | $ | (0.30 | ) | $ | (0.06 | ) | $ | 9.83 | |||||||||||||||||
2005 (2) | 10.29 | 0.40 | (0.15 | ) | (0.40 | ) | (0.03 | ) | 10.11 | |||||||||||||||||||||||
2004 (2) | 10.40 | 0.41 | (0.10 | ) | (0.40 | ) | (0.02 | ) | 10.29 | |||||||||||||||||||||||
2003 (2) | 10.46 | 0.42 | (0.03 | ) | (0.43 | ) | (0.02 | ) | 10.40 | |||||||||||||||||||||||
2002 (2) | 10.17 | 0.45 | 0.27 | (0.43 | ) | — | 10.46 | |||||||||||||||||||||||||
2001 (2) | 9.76 | 0.44 | 0.41 | (0.44 | ) | — | 10.17 | |||||||||||||||||||||||||
Minnesota Tax Free Fund | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.21 | $ | 0.35 | $ | (0.21 | ) | $ | (0.35 | ) | $ | (0.03 | ) | $ | 10.97 | |||||||||||||||||
2005 (2) | 11.23 | 0.45 | 0.03 | (0.45 | ) | (0.05 | ) | 11.21 | ||||||||||||||||||||||||
2004 (2) | 11.34 | 0.44 | (0.01 | ) | (0.45 | ) | (0.09 | ) | 11.23 | |||||||||||||||||||||||
2003 (2) | 11.39 | 0.48 | (0.05 | ) | (0.45 | ) | (0.03 | ) | 11.34 | |||||||||||||||||||||||
2002 (2) | 11.06 | 0.47 | 0.34 | (0.47 | ) | (0.01 | ) | 11.39 | ||||||||||||||||||||||||
2001 (2) | 10.64 | 0.53 | 0.43 | (0.54 | ) | — | 11.06 | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.17 | $ | 0.31 | $ | (0.20 | ) | $ | (0.32 | ) | $ | (0.03 | ) | $ | 10.93 | |||||||||||||||||
2005 (2) | 11.19 | 0.41 | 0.03 | (0.41 | ) | (0.05 | ) | 11.17 | ||||||||||||||||||||||||
2004 (2) | 11.31 | 0.39 | (0.01 | ) | (0.41 | ) | (0.09 | ) | 11.19 | |||||||||||||||||||||||
2003 (2) | 11.36 | 0.43 | (0.04 | ) | (0.41 | ) | (0.03 | ) | 11.31 | |||||||||||||||||||||||
2002 (2) | 11.04 | 0.43 | 0.33 | (0.43 | ) | (0.01 | ) | 11.36 | ||||||||||||||||||||||||
2001 (2) | 10.62 | 0.49 | 0.43 | (0.50 | ) | — | 11.04 | |||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.20 | $ | 0.36 | $ | (0.20 | ) | $ | (0.37 | ) | $ | (0.03 | ) | $ | 10.96 | |||||||||||||||||
2005 (2) | 11.22 | 0.48 | 0.03 | (0.48 | ) | (0.05 | ) | 11.20 | ||||||||||||||||||||||||
2004 (2) | 11.33 | 0.47 | (0.01 | ) | (0.48 | ) | (0.09 | ) | 11.22 | |||||||||||||||||||||||
2003 (2) | 11.38 | 0.51 | (0.05 | ) | (0.48 | ) | (0.03 | ) | 11.33 | |||||||||||||||||||||||
2002 (2) | 11.05 | 0.49 | 0.35 | (0.50 | ) | (0.01 | ) | 11.38 | ||||||||||||||||||||||||
2001 (2) | 10.63 | 0.55 | 0.44 | (0.57 | ) | — | 11.05 | |||||||||||||||||||||||||
Missouri Tax Free Fund | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 12.14 | $ | 0.34 | $ | (0.29 | ) | $ | (0.34 | ) | $ | (0.09 | ) | $ | 11.76 | |||||||||||||||||
2005 (2) | 12.32 | 0.45 | (0.12 | ) | (0.45 | ) | (0.06 | ) | 12.14 | |||||||||||||||||||||||
2004 (2) | 12.37 | 0.45 | (0.02 | ) | (0.45 | ) | (0.03 | ) | 12.32 | |||||||||||||||||||||||
2003 (2) | 12.47 | 0.45 | (0.04 | ) | (0.45 | ) | (0.06 | ) | 12.37 | |||||||||||||||||||||||
2002 (2) | 12.05 | 0.46 | 0.47 | (0.47 | ) | (0.04 | ) | 12.47 | ||||||||||||||||||||||||
2001 (3)(4) | 11.54 | 0.46 | 0.50 | (0.44 | ) | (0.01 | ) | 12.05 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 12.12 | $ | 0.30 | $ | (0.30 | ) | $ | (0.30 | ) | $ | (0.09 | ) | $ | 11.73 | |||||||||||||||||
2005 (2) | 12.29 | 0.40 | (0.11 | ) | (0.40 | ) | (0.06 | ) | 12.12 | |||||||||||||||||||||||
2004 (2) | 12.35 | 0.40 | (0.03 | ) | (0.40 | ) | (0.03 | ) | 12.29 | |||||||||||||||||||||||
2003 (2) | 12.46 | 0.40 | (0.04 | ) | (0.41 | ) | (0.06 | ) | 12.35 | |||||||||||||||||||||||
2002 (2) | 12.05 | 0.41 | 0.48 | (0.44 | ) | (0.04 | ) | 12.46 | ||||||||||||||||||||||||
2001 (5) | 12.03 | — | 0.02 | — | — | 12.05 | ||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 12.15 | $ | 0.36 | $ | (0.30 | ) | $ | (0.36 | ) | $ | (0.09 | ) | $ | 11.76 | |||||||||||||||||
2005 (2) | 12.32 | 0.48 | (0.11 | ) | (0.48 | ) | (0.06 | ) | 12.15 | |||||||||||||||||||||||
2004 (2) | 12.38 | 0.48 | (0.03 | ) | (0.48 | ) | (0.03 | ) | 12.32 | |||||||||||||||||||||||
2003 (2) | 12.48 | 0.49 | (0.05 | ) | (0.48 | ) | (0.06 | ) | 12.38 | |||||||||||||||||||||||
2002 (2) | 12.06 | 0.48 | 0.48 | (0.50 | ) | (0.04 | ) | 12.48 | ||||||||||||||||||||||||
2001 (3)(4) | 11.55 | 0.49 | 0.50 | (0.47 | ) | (0.01 | ) | 12.06 | ||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | For the period October 1 to September 30 in the year indicated. | |
(3) | The financial highlights for the Missouri Tax Free Fund prior to September 24, 2001 are those of the Firstar Missouri Tax-Exempt Bond Fund Class A shares and Class I shares. The assets of the Firstar Missouri Tax-Exempt Bond Fund were acquired by Missouri Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar Missouri Tax-Exempt Bond Fund were exchanged for Class A shares and Class Y shares of Missouri Tax Free Fund, respectively. | |
(4) | For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(5) | For the period from September 24, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(6) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
122 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (6) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
0.74 | % | $ | 26,526 | 0.85 | % | 3.85 | % | 1.08 | % | 3.62 | % | 11 | % | |||||||||||||||||||||||
2.33 | 32,326 | 0.85 | 3.78 | 1.06 | 3.57 | 15 | ||||||||||||||||||||||||||||||
3.03 | 35,047 | 0.85 | 3.77 | 1.05 | 3.57 | 8 | ||||||||||||||||||||||||||||||
3.55 | 31,044 | 0.85 | 3.85 | 1.05 | 3.65 | 15 | ||||||||||||||||||||||||||||||
7.23 | 19,914 | 0.85 | 4.27 | 1.03 | 4.09 | 15 | ||||||||||||||||||||||||||||||
8.85 | 12,408 | 0.70 | 4.38 | 1.13 | 3.95 | 13 | ||||||||||||||||||||||||||||||
0.85 | % | $ | 175,485 | 0.70 | % | 4.00 | % | 0.83 | % | 3.87 | % | 11 | % | |||||||||||||||||||||||
2.50 | 197,251 | 0.70 | 3.93 | 0.81 | 3.82 | 15 | ||||||||||||||||||||||||||||||
3.10 | 216,906 | 0.70 | 3.92 | 0.80 | 3.82 | 8 | ||||||||||||||||||||||||||||||
3.82 | 238,958 | 0.70 | 4.01 | 0.80 | 3.91 | 15 | ||||||||||||||||||||||||||||||
7.31 | 251,597 | 0.70 | 4.41 | 0.78 | 4.33 | 15 | ||||||||||||||||||||||||||||||
8.89 | 255,939 | 0.70 | 4.38 | 0.88 | 4.20 | 13 | ||||||||||||||||||||||||||||||
1.28 | % | $ | 101,142 | 0.95 | % | 4.15 | % | 1.10 | % | 4.00 | % | 11 | % | |||||||||||||||||||||||
4.42 | 106,783 | 0.95 | 4.04 | 1.06 | 3.93 | 16 | ||||||||||||||||||||||||||||||
3.94 | 114,981 | 0.95 | 3.87 | 1.05 | 3.77 | 25 | ||||||||||||||||||||||||||||||
3.90 | 125,916 | 0.95 | 4.25 | 1.06 | 4.14 | 23 | ||||||||||||||||||||||||||||||
7.23 | 135,607 | 0.95 | 4.22 | 1.09 | 4.08 | 26 | ||||||||||||||||||||||||||||||
9.24 | 107,260 | 0.95 | 4.84 | 1.18 | 4.61 | 15 | ||||||||||||||||||||||||||||||
0.98 | % | $ | 10,359 | 1.35 | % | 3.75 | % | 1.85 | % | 3.25 | % | 11 | % | |||||||||||||||||||||||
4.02 | 9,841 | 1.35 | 3.64 | 1.81 | 3.18 | 16 | ||||||||||||||||||||||||||||||
3.45 | 10,387 | 1.35 | 3.47 | 1.80 | 3.02 | 25 | ||||||||||||||||||||||||||||||
3.51 | 11,951 | 1.35 | 3.85 | 1.81 | 3.39 | 23 | ||||||||||||||||||||||||||||||
7.10 | 11,703 | 1.35 | 3.80 | 1.84 | 3.31 | 26 | ||||||||||||||||||||||||||||||
8.88 | 6,382 | 1.35 | 4.39 | 1.58 | 4.16 | 15 | ||||||||||||||||||||||||||||||
1.47 | % | $ | 48,760 | 0.70 | % | 4.40 | % | 0.85 | % | 4.25 | % | 11 | % | |||||||||||||||||||||||
4.69 | 46,471 | 0.70 | 4.29 | 0.81 | 4.18 | 16 | ||||||||||||||||||||||||||||||
4.20 | 42,900 | 0.70 | 4.12 | 0.80 | 4.02 | 25 | ||||||||||||||||||||||||||||||
4.16 | 47,858 | 0.70 | 4.50 | 0.81 | 4.39 | 23 | ||||||||||||||||||||||||||||||
7.84 | 54,638 | 0.70 | 4.47 | 0.84 | 4.33 | 26 | ||||||||||||||||||||||||||||||
9.52 | 49,078 | 0.70 | 5.09 | 0.93 | 4.86 | 15 | ||||||||||||||||||||||||||||||
0.38 | % | $ | 26,972 | 0.95 | % | 3.74 | % | 1.09 | % | 3.60 | % | 20 | % | |||||||||||||||||||||||
2.74 | 30,188 | 0.95 | 3.65 | 1.06 | 3.54 | 19 | ||||||||||||||||||||||||||||||
3.60 | 27,114 | 0.95 | 3.68 | 1.05 | 3.58 | 15 | ||||||||||||||||||||||||||||||
3.45 | 28,141 | 0.95 | 3.69 | 1.06 | 3.58 | 20 | ||||||||||||||||||||||||||||||
7.99 | 26,496 | 0.95 | 3.81 | 1.06 | 3.70 | 25 | ||||||||||||||||||||||||||||||
8.44 | 22,573 | 0.94 | 4.23 | 1.00 | 4.17 | 9 | ||||||||||||||||||||||||||||||
0.00 | % | $ | 214 | 1.35 | % | 3.34 | % | 1.84 | % | 2.85 | % | 20 | % | |||||||||||||||||||||||
2.42 | 190 | 1.35 | 3.25 | 1.81 | 2.79 | 19 | ||||||||||||||||||||||||||||||
3.11 | 218 | 1.35 | 3.28 | 1.80 | 2.83 | 15 | ||||||||||||||||||||||||||||||
3.05 | 279 | 1.35 | 3.30 | 1.81 | 2.84 | 20 | ||||||||||||||||||||||||||||||
7.58 | 21 | 1.35 | 3.28 | 1.81 | 2.82 | 25 | ||||||||||||||||||||||||||||||
0.17 | — | — | — | — | — | 9 | ||||||||||||||||||||||||||||||
0.49 | % | $ | 138,394 | 0.70 | % | 3.99 | % | 0.84 | % | 3.85 | % | 20 | % | |||||||||||||||||||||||
3.08 | 151,710 | 0.70 | 3.90 | 0.81 | 3.79 | 19 | ||||||||||||||||||||||||||||||
3.77 | 152,676 | 0.70 | 3.93 | 0.80 | 3.83 | 15 | ||||||||||||||||||||||||||||||
3.71 | 168,094 | 0.70 | 3.94 | 0.81 | 3.83 | 20 | ||||||||||||||||||||||||||||||
8.25 | 142,344 | 0.70 | 4.06 | 0.81 | 3.95 | 25 | ||||||||||||||||||||||||||||||
8.67 | 129,715 | 0.69 | 4.48 | 0.75 | 4.42 | 9 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 123
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||
Value | Net | Gains | from Net | from Net | Value | ||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | End of | ||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | Period | ||||||||||||||||||||||||||||
Nebraska Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.58 | $ | 0.31 | $ | (0.24 | ) | $ | (0.30 | ) | $ | (0.02 | ) | $ | 10.33 | ||||||||||||||||||
2005 (2) | 10.66 | 0.39 | (0.05 | ) | (0.42 | ) | — | 10.58 | |||||||||||||||||||||||||
2004 (2) | 10.66 | 0.41 | 0.03 | (0.40 | ) | (0.04 | ) | 10.66 | |||||||||||||||||||||||||
2003 (2) | 10.70 | 0.41 | (0.04 | ) | (0.40 | ) | (0.01 | ) | 10.66 | ||||||||||||||||||||||||
2002 (2) | 10.20 | 0.41 | 0.49 | (0.40 | ) | — | 10.70 | ||||||||||||||||||||||||||
2001 (3) | 10.00 | 0.24 | 0.20 | (0.24 | ) | — | 10.20 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.50 | $ | 0.27 | $ | (0.22 | ) | $ | (0.27 | ) | $ | (0.02 | ) | $ | 10.26 | ||||||||||||||||||
2005 (2) | 10.58 | 0.35 | (0.06 | ) | (0.37 | ) | — | 10.50 | |||||||||||||||||||||||||
2004 (2) | 10.58 | 0.35 | 0.04 | (0.35 | ) | (0.04 | ) | 10.58 | |||||||||||||||||||||||||
2003 (2) | 10.63 | 0.36 | (0.04 | ) | (0.36 | ) | (0.01 | ) | 10.58 | ||||||||||||||||||||||||
2002 (2) | 10.14 | 0.36 | 0.50 | (0.37 | ) | — | 10.63 | ||||||||||||||||||||||||||
2001 (3) | 10.00 | 0.20 | 0.17 | (0.23 | ) | — | 10.14 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.58 | $ | 0.32 | $ | (0.23 | ) | $ | (0.32 | ) | $ | (0.02 | ) | $ | 10.33 | ||||||||||||||||||
2005 (2) | 10.66 | 0.43 | (0.07 | ) | (0.44 | ) | — | 10.58 | |||||||||||||||||||||||||
2004 (2) | 10.65 | 0.43 | 0.04 | (0.42 | ) | (0.04 | ) | 10.66 | |||||||||||||||||||||||||
2003 (2) | 10.69 | 0.43 | (0.03 | ) | (0.43 | ) | (0.01 | ) | 10.65 | ||||||||||||||||||||||||
2002 (2) | 10.19 | 0.43 | 0.50 | (0.43 | ) | — | 10.69 | ||||||||||||||||||||||||||
2001 (3) | 10.00 | 0.26 | 0.19 | (0.26 | ) | — | 10.19 | ||||||||||||||||||||||||||
Ohio Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.42 | $ | 0.29 | $ | (0.25 | ) | $ | (0.28 | ) | $ | (0.01 | ) | $ | 10.17 | ||||||||||||||||||
2005 (2) | 10.52 | 0.36 | (0.06 | ) | (0.36 | ) | (0.04 | ) | 10.42 | ||||||||||||||||||||||||
2004 (2) | 10.54 | 0.36 | 0.07 | (0.35 | ) | (0.10 | ) | 10.52 | |||||||||||||||||||||||||
2003 (2) | 10.58 | 0.36 | (0.03 | ) | (0.37 | ) | — | 10.54 | |||||||||||||||||||||||||
2002 (4) | 10.00 | 0.15 | 0.59 | (0.16 | ) | — | 10.58 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.32 | $ | 0.25 | $ | (0.26 | ) | $ | (0.25 | ) | $ | (0.01 | ) | $ | 10.05 | ||||||||||||||||||
2005 (2) | 10.41 | 0.32 | (0.05 | ) | (0.32 | ) | (0.04 | ) | 10.32 | ||||||||||||||||||||||||
2004 (2) | 10.44 | 0.29 | 0.09 | (0.31 | ) | (0.10 | ) | 10.41 | |||||||||||||||||||||||||
2003 (2) | 10.57 | 0.32 | (0.12 | ) | (0.33 | ) | — | 10.44 | |||||||||||||||||||||||||
2002 (4) | 10.00 | 0.13 | 0.58 | (0.14 | ) | — | 10.57 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.43 | $ | 0.30 | $ | (0.25 | ) | $ | (0.30 | ) | $ | (0.01 | ) | $ | 10.17 | ||||||||||||||||||
2005 (2) | 10.53 | 0.38 | (0.05 | ) | (0.39 | ) | (0.04 | ) | 10.43 | ||||||||||||||||||||||||
2004 (2) | 10.55 | 0.38 | 0.07 | (0.37 | ) | (0.10 | ) | 10.53 | |||||||||||||||||||||||||
2003 (2) | 10.57 | 0.39 | (0.02 | ) | (0.39 | ) | — | 10.55 | |||||||||||||||||||||||||
2002 (4) | 10.00 | 0.16 | 0.58 | (0.17 | ) | — | 10.57 | ||||||||||||||||||||||||||
Oregon Intermediate Tax Free Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.07 | $ | 0.27 | $ | (0.25 | ) | $ | (0.27 | ) | $ | (0.04 | ) | $ | 9.78 | ||||||||||||||||||
2005 (2) | 10.30 | 0.36 | (0.19 | ) | (0.36 | ) | (0.04 | ) | 10.07 | ||||||||||||||||||||||||
2004 (2) | 10.43 | 0.37 | (0.05 | ) | (0.37 | ) | (0.08 | ) | 10.30 | ||||||||||||||||||||||||
2003 (2) | 10.49 | 0.37 | (0.03 | ) | (0.38 | ) | (0.02 | ) | 10.43 | ||||||||||||||||||||||||
2002 (2) | 10.18 | 0.40 | 0.31 | (0.40 | ) | — | 10.49 | ||||||||||||||||||||||||||
2001 (2) | 9.74 | 0.43 | 0.44 | (0.43 | ) | — | 10.18 | ||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1) | $ | 10.07 | $ | 0.28 | $ | (0.25 | ) | $ | (0.28 | ) | $ | (0.04 | ) | $ | 9.78 | ||||||||||||||||||
2005 (2) | 10.30 | 0.38 | (0.19 | ) | (0.38 | ) | (0.04 | ) | 10.07 | ||||||||||||||||||||||||
2004 (2) | 10.43 | 0.39 | (0.05 | ) | (0.39 | ) | (0.08 | ) | 10.30 | ||||||||||||||||||||||||
2003 (2) | 10.49 | 0.40 | (0.05 | ) | (0.39 | ) | (0.02 | ) | 10.43 | ||||||||||||||||||||||||
2002 (2) | 10.18 | 0.42 | 0.31 | (0.42 | ) | — | 10.49 | ||||||||||||||||||||||||||
2001 (2) | 9.74 | 0.43 | 0.44 | (0.43 | ) | — | 10.18 | ||||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | For the period October 1 to September 30 in the year indicated. | |
(3) | For the period from February 28, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(4) | For the period from April 30, 2002, when the class of shares was first offered, to September 30, 2002. All ratios for the period 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.
124 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (5) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
0.65 | % | $ | 6,910 | 0.75 | % | 3.89 | % | 1.30 | % | 3.34 | % | 35 | % | |||||||||||||||||||||||
3.20 | 7,136 | 0.75 | 3.78 | 1.12 | 3.41 | 21 | ||||||||||||||||||||||||||||||
4.18 | 4,925 | 0.75 | 3.82 | 1.08 | 3.49 | 17 | ||||||||||||||||||||||||||||||
3.57 | 4,869 | 0.75 | 3.87 | 1.07 | 3.55 | 15 | ||||||||||||||||||||||||||||||
9.09 | 4,904 | 0.75 | 3.98 | 1.29 | 3.44 | 35 | ||||||||||||||||||||||||||||||
4.48 | 5,090 | 0.55 | 4.12 | 1.38 | 3.29 | 30 | ||||||||||||||||||||||||||||||
0.46 | % | $ | 1,487 | 1.15 | % | 3.49 | % | 2.05 | % | 2.59 | % | 35 | % | |||||||||||||||||||||||
2.81 | 1,565 | 1.15 | 3.38 | 1.87 | 2.66 | 21 | ||||||||||||||||||||||||||||||
3.80 | 1,861 | 1.15 | 3.42 | 1.83 | 2.74 | 17 | ||||||||||||||||||||||||||||||
3.10 | 1,657 | 1.15 | 3.46 | 1.82 | 2.79 | 15 | ||||||||||||||||||||||||||||||
8.66 | 982 | 1.15 | 3.57 | 2.04 | 2.68 | 35 | ||||||||||||||||||||||||||||||
3.71 | 226 | 0.95 | 3.73 | 1.75 | 2.93 | 30 | ||||||||||||||||||||||||||||||
0.85 | % | $ | 31,347 | 0.50 | % | 4.14 | % | 1.05 | % | 3.59 | % | 35 | % | |||||||||||||||||||||||
3.45 | 32,418 | 0.50 | 4.03 | 0.87 | 3.66 | 21 | ||||||||||||||||||||||||||||||
4.54 | 29,722 | 0.50 | 4.07 | 0.83 | 3.74 | 17 | ||||||||||||||||||||||||||||||
3.82 | 28,120 | 0.50 | 4.11 | 0.82 | 3.79 | 15 | ||||||||||||||||||||||||||||||
9.37 | 27,348 | 0.50 | 4.22 | 1.04 | 3.68 | 35 | ||||||||||||||||||||||||||||||
4.51 | 22,443 | 0.30 | 4.36 | 1.13 | 3.53 | 30 | ||||||||||||||||||||||||||||||
0.40 | % | $ | 841 | 0.75 | % | 3.60 | % | 1.28 | % | 3.07 | % | 11 | % | |||||||||||||||||||||||
2.86 | 988 | 0.75 | 3.41 | 1.11 | 3.05 | 13 | ||||||||||||||||||||||||||||||
4.16 | 1,200 | 0.75 | 3.43 | 1.08 | 3.10 | 19 | ||||||||||||||||||||||||||||||
3.22 | 849 | 0.75 | 3.52 | 1.09 | 3.18 | 22 | ||||||||||||||||||||||||||||||
7.42 | 453 | 0.75 | 3.25 | 1.23 | 2.77 | 3 | ||||||||||||||||||||||||||||||
(0.08 | )% | $ | 209 | 1.15 | % | 3.22 | % | 2.03 | % | 2.34 | % | 11 | % | |||||||||||||||||||||||
2.58 | 174 | 1.15 | 3.01 | 1.86 | 2.30 | 13 | ||||||||||||||||||||||||||||||
3.69 | 120 | 1.15 | 3.03 | 1.83 | 2.35 | 19 | ||||||||||||||||||||||||||||||
1.95 | 215 | 1.15 | 3.08 | 1.84 | 2.39 | 22 | ||||||||||||||||||||||||||||||
7.13 | 1 | 1.15 | 3.01 | 1.98 | 2.18 | 3 | ||||||||||||||||||||||||||||||
0.49 | % | $ | 40,606 | 0.50 | % | 3.85 | % | 1.03 | % | 3.32 | % | 11 | % | |||||||||||||||||||||||
3.12 | 41,104 | 0.50 | 3.66 | 0.86 | 3.30 | 13 | ||||||||||||||||||||||||||||||
4.42 | 39,240 | 0.50 | 3.68 | 0.82 | 3.36 | 19 | ||||||||||||||||||||||||||||||
3.65 | 39,465 | 0.50 | 3.78 | 0.84 | 3.44 | 22 | ||||||||||||||||||||||||||||||
7.41 | 38,083 | 0.50 | 3.74 | 0.98 | 3.26 | 3 | ||||||||||||||||||||||||||||||
0.16 | % | $ | 9,456 | 0.85 | % | 3.62 | % | 1.11 | % | 3.36 | % | 13 | % | |||||||||||||||||||||||
1.67 | 9,356 | 0.85 | 3.56 | 1.06 | 3.35 | 20 | ||||||||||||||||||||||||||||||
3.20 | 8,700 | 0.85 | 3.62 | 1.05 | 3.42 | 12 | ||||||||||||||||||||||||||||||
3.31 | 8,189 | 0.85 | 3.67 | 1.05 | 3.47 | 17 | ||||||||||||||||||||||||||||||
7.23 | 7,030 | 0.85 | 3.95 | 1.05 | 3.75 | 18 | ||||||||||||||||||||||||||||||
9.08 | 5,477 | 0.70 | 4.27 | 1.13 | 3.84 | 20 | ||||||||||||||||||||||||||||||
0.28 | % | $ | 111,344 | 0.70 | % | 3.77 | % | 0.86 | % | 3.61 | % | 13 | % | |||||||||||||||||||||||
1.82 | 133,613 | 0.70 | 3.71 | 0.81 | 3.60 | 20 | ||||||||||||||||||||||||||||||
3.35 | 137,869 | 0.70 | 3.77 | 0.80 | 3.67 | 12 | ||||||||||||||||||||||||||||||
3.46 | 146,244 | 0.70 | 3.82 | 0.80 | 3.72 | 17 | ||||||||||||||||||||||||||||||
7.39 | 151,928 | 0.70 | 4.10 | 0.80 | 4.00 | 18 | ||||||||||||||||||||||||||||||
9.08 | 153,951 | 0.70 | 4.28 | 0.89 | 4.09 | 20 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 125
Table of Contents
Financial Highlights continued
Realized and | ||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | ||||||||||||||||||||||||||||
Value | Net | Gains | from Net | from Net | Value | |||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | Realized | End of | |||||||||||||||||||||||||||
of Period | Income | Investments | Income | Gains | Period | |||||||||||||||||||||||||||
Short Tax Free Fund | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 9.78 | $ | 0.19 | $ | (0.09 | ) | $ | (0.20 | ) | $ | — | $ | 9.68 | ||||||||||||||||||
2005 (2) | 9.96 | 0.24 | (0.17 | ) | (0.25 | ) | — | 9.78 | ||||||||||||||||||||||||
2004 (2) | 10.18 | 0.26 | (0.17 | ) | (0.25 | ) | (0.06 | ) | 9.96 | |||||||||||||||||||||||
2003 (3) | 10.00 | 0.26 | 0.19 | (0.27 | ) | — | 10.18 | |||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 9.78 | $ | 0.21 | $ | (0.10 | ) | $ | (0.21 | ) | $ | — | $ | 9.68 | ||||||||||||||||||
2005 (2) | 9.96 | 0.26 | (0.18 | ) | (0.26 | ) | — | 9.78 | ||||||||||||||||||||||||
2004 (2) | 10.18 | 0.27 | (0.17 | ) | (0.26 | ) | (0.06 | ) | 9.96 | |||||||||||||||||||||||
2003 (3) | 10.00 | 0.28 | 0.18 | (0.28 | ) | — | 10.18 | |||||||||||||||||||||||||
Tax Free Fund | ||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.10 | $ | 0.35 | $ | (0.20 | ) | $ | (0.35 | ) | $ | (0.04 | ) | $ | 10.86 | |||||||||||||||||
2005 (2) | 11.18 | 0.47 | 0.03 | (0.47 | ) | (0.11 | ) | 11.10 | ||||||||||||||||||||||||
2004 (2) | 11.28 | 0.47 | 0.02 | (0.48 | ) | (0.11 | ) | 11.18 | ||||||||||||||||||||||||
2003 (2) | 11.44 | 0.47 | (0.03 | ) | (0.47 | ) | (0.13 | ) | 11.28 | |||||||||||||||||||||||
2002 (2) | 10.99 | 0.47 | 0.44 | (0.46 | ) | — | 11.44 | |||||||||||||||||||||||||
2001 (4)(5) | 10.53 | 0.42 | 0.43 | (0.39 | ) | — | 10.99 | |||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.05 | $ | 0.32 | $ | (0.20 | ) | $ | (0.32 | ) | $ | (0.04 | ) | $ | 10.81 | |||||||||||||||||
2005 (2) | 11.13 | 0.42 | 0.03 | (0.42 | ) | (0.11 | ) | 11.05 | ||||||||||||||||||||||||
2004 (2) | 11.24 | 0.43 | — | (0.43 | ) | (0.11 | ) | 11.13 | ||||||||||||||||||||||||
2003 (2) | 11.40 | 0.42 | (0.02 | ) | (0.43 | ) | (0.13 | ) | 11.24 | |||||||||||||||||||||||
2002 (2) | 10.96 | 0.42 | 0.45 | (0.43 | ) | — | 11.40 | |||||||||||||||||||||||||
2001 (6) | 10.93 | 0.01 | 0.02 | — | — | 10.96 | ||||||||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
2006 (1) | $ | 11.11 | $ | 0.37 | $ | (0.20 | ) | $ | (0.37 | ) | $ | (0.04 | ) | $ | 10.87 | |||||||||||||||||
2005 (2) | 11.19 | 0.50 | 0.02 | (0.49 | ) | (0.11 | ) | 11.11 | ||||||||||||||||||||||||
2004 (2) | 11.29 | 0.50 | 0.01 | (0.50 | ) | (0.11 | ) | 11.19 | ||||||||||||||||||||||||
2003 (2) | 11.45 | 0.50 | (0.03 | ) | (0.50 | ) | (0.13 | ) | 11.29 | |||||||||||||||||||||||
2002 (2) | 11.00 | 0.49 | 0.45 | (0.49 | ) | — | 11.45 | |||||||||||||||||||||||||
2001 (4)(5) | 10.53 | 0.44 | 0.45 | (0.42 | ) | — | 11.00 | |||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | For the period October 1 to September 30 in the year indicated. | |
(3) | For the period from October 25, 2002, when the class of shares was first offered, to September 30, 2003. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(4) | The financial highlights for the Tax Free Fund prior to September 24, 2001 are those of the Firstar National Municipal Bond Fund Class A shares and Class I shares. The assets of the Firstar National Municipal Bond Fund were acquired by Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar National Municipal Bond Fund were exchanged for Class A shares and Class Y shares of Tax Free Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Tax Free Fund and the Firstar National Municipal Bond Fund. | |
(5) | For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(6) | For the period from September 24, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(7) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
126 First American Funds Annual Report 2006
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Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (7) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
1.02 | % | $ | 3,321 | 0.75 | % | 2.65 | % | 1.08 | % | 2.32 | % | 22 | % | |||||||||||||||||||||||
0.67 | 4,103 | 0.75 | 2.46 | 1.06 | 2.15 | 37 | ||||||||||||||||||||||||||||||
0.90 | 6,329 | 0.75 | 2.55 | 1.05 | 2.25 | 30 | ||||||||||||||||||||||||||||||
4.54 | 6,448 | 0.75 | 2.67 | 1.05 | 2.37 | 54 | ||||||||||||||||||||||||||||||
1.13 | % | $ | 235,900 | 0.60 | % | 2.80 | % | 0.83 | % | 2.57 | % | 22 | % | |||||||||||||||||||||||
0.83 | 329,647 | 0.60 | 2.62 | 0.81 | 2.41 | 37 | ||||||||||||||||||||||||||||||
1.05 | 419,359 | 0.60 | 2.70 | 0.80 | 2.50 | 30 | ||||||||||||||||||||||||||||||
4.66 | 396,918 | 0.60 | 3.00 | 0.80 | 2.80 | 54 | ||||||||||||||||||||||||||||||
1.37 | % | $ | 36,519 | 0.95 | % | 4.28 | % | 1.06 | % | 4.17 | % | 13 | % | |||||||||||||||||||||||
4.51 | 38,205 | 0.95 | 4.20 | 1.06 | 4.09 | 8 | ||||||||||||||||||||||||||||||
4.45 | 40,156 | 0.95 | 4.18 | 1.05 | 4.08 | 23 | ||||||||||||||||||||||||||||||
4.06 | 42,942 | 0.95 | 4.21 | 1.05 | 4.11 | 23 | ||||||||||||||||||||||||||||||
8.56 | 43,708 | 0.95 | 4.20 | 1.02 | 4.13 | 39 | ||||||||||||||||||||||||||||||
8.22 | 48,769 | 1.16 | 4.27 | 1.18 | 4.25 | 3 | ||||||||||||||||||||||||||||||
1.06 | % | $ | 2,210 | 1.35 | % | 3.87 | % | 1.81 | % | 3.41 | % | 13 | % | |||||||||||||||||||||||
4.13 | 2,712 | 1.35 | 3.80 | 1.81 | 3.34 | 8 | ||||||||||||||||||||||||||||||
3.92 | 2,682 | 1.35 | 3.77 | 1.80 | 3.32 | 23 | ||||||||||||||||||||||||||||||
3.67 | 4,880 | 1.35 | 3.81 | 1.80 | 3.36 | 23 | ||||||||||||||||||||||||||||||
8.14 | 6,199 | 1.35 | 3.82 | 1.77 | 3.40 | 39 | ||||||||||||||||||||||||||||||
0.27 | 4,494 | 1.04 | 5.61 | 1.04 | 5.61 | 3 | ||||||||||||||||||||||||||||||
1.57 | % | $ | 455,910 | 0.70 | % | 4.53 | % | 0.81 | % | 4.42 | % | 13 | % | |||||||||||||||||||||||
4.77 | 436,303 | 0.70 | 4.45 | 0.81 | 4.34 | 8 | ||||||||||||||||||||||||||||||
4.71 | 416,651 | 0.70 | 4.43 | 0.80 | 4.33 | 23 | ||||||||||||||||||||||||||||||
4.31 | 460,634 | 0.70 | 4.46 | 0.80 | 4.36 | 23 | ||||||||||||||||||||||||||||||
8.84 | 497,140 | 0.70 | 4.47 | 0.77 | 4.40 | 39 | ||||||||||||||||||||||||||||||
8.59 | 501,361 | 0.73 | 4.32 | 0.74 | 4.31 | 3 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 127
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Notes to Financial Statements June 30, 2006, all dollars are rounded to thousands (000)
1 > | Organization |
The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAIF’s articles of incorporation permit the board of directors to create additional funds in the future. The Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund are each diversified open-end management investment companies. The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund are each non-diversified open-end management investment companies. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers. | |
The funds offer Class A and Class Y shares. The Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund are sold with a maximum front-end sales charge of 4.25%. Class A shares of California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund are sold with a maximum front-end sales charge of 2.25%. Class C shares may be subject to a contingent deferred sales charge of 1.00% for 12 months. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. | |
The funds’ prospectuses provide a description of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements. | |
On February 23, 2006, the funds’ board of directors approved a change in the funds’ fiscal year-end from September 30 to June 30, effective with the nine-month period ending June 30, 2006 (the “fiscal period”). |
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows: | |
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2006, the funds held no fair-valued securities. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund on the valuation date. | |
SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or |
128 First American Funds Annual Report 2006
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sale. 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. Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash. The resulting gain/loss is calculated as the difference between the fair value and the underlying cost of the security on the transaction date. |
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid monthly and are payable in cash or reinvested in additional shares of each respective 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. | |
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to book and tax differences for straddle loss deferrals and classification of dividends paid by the funds. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise. |
On the Statements of Assets and Liabilities, the following reclassification was made: |
Accumulated | Undistributed | |||||||
Net Realized | Net Investment | |||||||
Fund | Gain | Income | ||||||
Intermediate Tax Free Fund | $ | (261 | ) | $ | 261 | |||
The tax character of distributions made during the fiscal period 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 in which the amounts are distributed may differ from the period that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal period ended June 30, 2006 and the fiscal years ended September 30, 2005 and 2004, were as follows: |
2006 | ||||||||||||||||
Tax Exempt | Ordinary | Long Term | ||||||||||||||
Fund | Income | Income | Gain | Total | ||||||||||||
Arizona Tax Free Fund | $ | 807 | $ | 3 | $ | 210 | $ | 1,020 | ||||||||
California Intermediate Tax Free Fund | 1,622 | 85 | 91 | 1,798 | ||||||||||||
California Tax Free Fund | 1,067 | 12 | 53 | 1,132 | ||||||||||||
Colorado Intermediate Tax Free Fund | 1,396 | 22 | 266 | 1,684 | ||||||||||||
Colorado Tax Free Fund | 667 | 54 | 541 | 1,262 | ||||||||||||
Intermediate Tax Free Fund | 20,212 | 93 | 1,785 | 22,090 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 6,508 | 27 | 1,372 | 7,907 | ||||||||||||
Minnesota Tax Free Fund | 5,235 | 29 | 381 | 5,645 | ||||||||||||
Missouri Tax Free Fund | 5,218 | 2 | 1,297 | 6,517 | ||||||||||||
Nebraska Tax Free Fund | 1,236 | — | 63 | 1,299 | ||||||||||||
Ohio Tax Free Fund | 1,207 | — | 41 | 1,248 | ||||||||||||
Oregon Intermediate Tax Free Fund | 3,646 | 20 | 556 | 4,222 | ||||||||||||
Short Tax Free Fund | 6,134 | — | — | 6,134 | ||||||||||||
Tax Free Fund | 16,637 | 262 | 1,396 | 18,295 | ||||||||||||
First American Funds Annual Report 2006 129
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Notes to Financial Statements continued
2005 | ||||||||||||||||
Tax Exempt | Ordinary | Long Term | ||||||||||||||
Fund | Income | Income | Gain | Total | ||||||||||||
Arizona Tax Free Fund | $ | 984 | $ | 3 | $ | 235 | $ | 1,222 | ||||||||
California Intermediate Tax Free Fund | 2,002 | 27 | 329 | 2,358 | ||||||||||||
California Tax Free Fund | 1,203 | 53 | 199 | 1,455 | ||||||||||||
Colorado Intermediate Tax Free Fund | 2,077 | — | 169 | 2,246 | ||||||||||||
Colorado Tax Free Fund | 992 | — | 177 | 1,169 | ||||||||||||
Intermediate Tax Free Fund | 28,143 | — | 3,679 | 31,822 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 9,305 | — | 797 | 10,102 | ||||||||||||
Minnesota Tax Free Fund | 6,755 | — | 811 | 7,566 | ||||||||||||
Missouri Tax Free Fund | 7,004 | — | 924 | 7,928 | ||||||||||||
Nebraska Tax Free Fund | 1,581 | — | — | 1,581 | ||||||||||||
Ohio Tax Free Fund | 1,564 | — | 133 | 1,697 | ||||||||||||
Oregon Intermediate Tax Free Fund | 5,290 | — | 511 | 5,801 | ||||||||||||
Short Tax Free Fund | 10,220 | — | — | 10,220 | ||||||||||||
Tax Free Fund | 20,510 | — | 4,409 | 24,919 | ||||||||||||
2004 | ||||||||||||||||
Tax Exempt | Ordinary | Long Term | ||||||||||||||
Fund | Income | Income | Gain | Total | ||||||||||||
Arizona Tax Free Fund | $ | 884 | $ | 39 | $ | 63 | $ | 986 | ||||||||
California Intermediate Tax Free Fund | 1,931 | 83 | 74 | 2,088 | ||||||||||||
California Tax Free Fund | 1,139 | — | 210 | 1,349 | ||||||||||||
Colorado Intermediate Tax Free Fund | 2,396 | 12 | — | 2,408 | ||||||||||||
Colorado Tax Free Fund | 1,081 | 18 | 186 | 1,285 | ||||||||||||
Intermediate Tax Free Fund | 28,938 | 100 | 741 | 29,779 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 10,248 | 56 | 467 | 10,771 | ||||||||||||
Minnesota Tax Free Fund | 7,250 | 103 | 1,314 | 8,667 | ||||||||||||
Missouri Tax Free Fund | 7,261 | 5 | 508 | 7,774 | ||||||||||||
Nebraska Tax Free Fund | 1,391 | 27 | 95 | 1,513 | ||||||||||||
Ohio Tax Free Fund | 1,438 | 183 | 185 | 1,806 | ||||||||||||
Oregon Intermediate Tax Free Fund | 5,536 | 97 | 1,080 | 6,713 | ||||||||||||
Short Tax Free Fund | 11,367 | 172 | 2,259 | 13,798 | ||||||||||||
Tax Free Fund | 21,461 | 155 | 4,788 | 26,404 | ||||||||||||
As of June 30, 2006, the components of accumulated earnings (deficit) on a tax basis were as follows: |
Accumulated | Total | |||||||||||||||||||||||||||
Undistributed | Undistributed | Undistributed | Capital and | Unrealized | Other | Accumulated | ||||||||||||||||||||||
Ordinary | Tax Exempt | Long Term | Post-October | Appreciation | Accumulated | Earnings | ||||||||||||||||||||||
Fund | Income | Income | Capital Gains | Losses | (Depreciation) | Losses | (Deficit) | |||||||||||||||||||||
Arizona Tax Free Fund | $ | — | $ | 7 | $ | 108 | $ | — | $ | 624 | $ | (4 | ) | $ | 735 | |||||||||||||
California Intermediate Tax Free Fund | 16 | 15 | 192 | — | 910 | — | 1,133 | |||||||||||||||||||||
California Tax Free Fund | — | 17 | 53 | — | 823 | — | 893 | |||||||||||||||||||||
Colorado Intermediate Tax Free Fund | 6 | 32 | 289 | — | 1,279 | — | 1,606 | |||||||||||||||||||||
Colorado Tax Free Fund | 3 | 36 | 183 | — | 860 | (7 | ) | 1,075 | ||||||||||||||||||||
Intermediate Tax Free Fund | — | — | 1 | — | 17,986 | — | 17,987 | |||||||||||||||||||||
Minnesota Intermediate Tax Free Fund | 5 | 60 | 861 | — | 4,048 | — | 4,974 | |||||||||||||||||||||
Minnesota Tax Free Fund | 26 | 55 | 419 | — | 5,815 | (11 | ) | 6,304 | ||||||||||||||||||||
Missouri Tax Free Fund | — | 31 | 582 | — | 2,910 | — | 3,523 | |||||||||||||||||||||
Nebraska Tax Free Fund | — | 19 | 187 | — | 427 | (6 | ) | 627 | ||||||||||||||||||||
Ohio Tax Free Fund | 2 | 16 | 57 | — | 280 | (14 | ) | 341 | ||||||||||||||||||||
Oregon Intermediate Tax Free Fund | 5 | 62 | 255 | — | 1,584 | — | 1,906 | |||||||||||||||||||||
Short Tax Free Fund | — | 119 | — | (1,236 | ) | (2,830 | ) | — | (3,947 | ) | ||||||||||||||||||
Tax Free Fund | 74 | 66 | 2,093 | — | 18,600 | — | 20,833 | |||||||||||||||||||||
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses deferred due to straddles. | |
As of June 30, 2006, Short Tax Free Fund had a capital loss carryforward of $788 of which $238 will expire in 2013 and $550 will expire in 2014, if not offset by subsequent capital gains. |
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The Short Tax Free Fund incurred a loss of $448 for tax purposes for the period from November 1, 2005 to June 30, 2006. As permitted by tax regulations, the fund intends to elect to defer and treat those losses as arising in the fiscal year ending June 30, 2007. | |
FUTURES TRANSACTIONS – In order to 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. | |
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 date. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to delivery. Each fund segregates assets with a market value equal to or greater than the amount of that fund’s purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2006, the following funds had outstanding commitments to purchase securities on a when-issued or forward-commitment basis: |
Segregated | ||||||||
Fund | Cost | Assets | ||||||
Arizona Tax Free Fund | $ | 668 | $ | 4,929 | ||||
Colorado Intermediate Tax Free Fund | 245 | 8,606 | ||||||
Colorado Tax Free Fund | 745 | 5,146 | ||||||
Intermediate Tax Free Fund | 1,809 | 144,313 | ||||||
Minnesota Intermediate Tax Free Fund | 1,736 | 41,822 | ||||||
Nebraska Tax Free Fund | 1,504 | 6,491 | ||||||
Ohio Tax Free Fund | 401 | 7,582 | ||||||
Tax Free Fund | 4,947 | 105,743 | ||||||
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale. 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 June 30, 2006, no fund had investments in illiquid securities. | |
INVERSE FLOATERS – As part of their investment strategy, the funds may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate (“inverse floaters”). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject a fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the funds invest in inverse floaters, the net asset value of the funds’ shares may be more volatile than if the funds did not invest in such securities. At June 30, 2006, no fund had investments in inverse floaters. | |
EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including relative net assets of all funds within the First |
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Notes to Financial Statements continued
American Family of Funds. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class. |
INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the Securities and Exchange Commission, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended June 30, 2006. | |
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 the board of directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan. | |
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net 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, Inc. (“FAF Advisors”), formerly U.S. Bancorp Asset Management, Inc., 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 0.50%. FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts: |
Share Class | ||||||||||||||
Fund | A | C | Y | |||||||||||
Arizona Tax Free Fund | 0.75 | % | 1.15 | % | 0.50 | % | ||||||||
California Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
California Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Colorado Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Colorado Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Minnesota Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Minnesota Tax Free Fund | 0.95 | 1.35 | 0.70 | |||||||||||
Missouri Tax Free Fund | 0.95 | 1.35 | 0.70 | |||||||||||
Nebraska Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Ohio Tax Free Fund | 0.75 | 1.15 | 0.50 | |||||||||||
Oregon Intermediate Tax Free Fund | 0.85 | NA | 0.70 | |||||||||||
Short Tax Free Fund | 0.75 | NA | 0.60 | |||||||||||
Tax Free Fund | 0.95 | 1.35 | 0.70 | |||||||||||
NA = Not Applicable |
The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. For financial statement purposes, these reimbursements are recorded as investment income. | |
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight and administrative services and accounting services. The funds pay FAF Advisors administration fees which are calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% 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 |
132 First American Funds Annual Report 2006
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Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services. |
Prior to July 1, 2006, as part of the transfer agent fee, FAIF paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets, to compensate USBFS for providing certain shareholder services and reimbursed USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. Effective July 1, 2006, this fee was incorporated into the administration fee which, as a result, on an annual basis, is 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. | |
For the fiscal period ended June 30, 2006, administration fees paid to FAF Advisors by the funds included in this annual report were as follows: |
Fund | Amount | |||
Arizona Tax Free Fund | $ | 25 | ||
California Intermediate Tax Free Fund | 53 | |||
California Tax Free Fund | 33 | |||
Colorado Intermediate Tax Free Fund | 43 | |||
Colorado Tax Free Fund | 21 | |||
Intermediate Tax Free Fund | 622 | |||
Minnesota Intermediate Tax Free Fund | 204 | |||
Minnesota Tax Free Fund | 154 | |||
Missouri Tax Free Fund | 166 | |||
Nebraska Tax Free Fund | 39 | |||
Ohio Tax Free Fund | 39 | |||
Oregon Intermediate Tax Free Fund | 125 | |||
Short Tax Free Fund | 271 | |||
Tax Free Fund | 464 | |||
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. For the period from July 1, 2005 to July 1, 2006, FAIF paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees were allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, FAIF also paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services. Prior to July 1, 2005, this 0.10% fee was included in the administration fee. | |
Effective July 1, 2006, FAIF will be charged transfer agent fees on a per shareholder account basis, subject to a minimum per share class fee. These fees will be charged to each fund based on the number of accounts within that fund. The $18,500 per share class fee that was charged in addition to per account fees has been eliminated. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial services was incorporated into the administration fee. Funds will continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services. | |
For the fiscal period ended June 30, 2006, transfer agent fees paid to USBFS by the funds included in this annual report were as follows: |
Fund | Amount | |||
Arizona Tax Free Fund | $ | 27 | ||
California Intermediate Tax Free Fund | 57 | |||
California Tax Free Fund | 36 | |||
Colorado Intermediate Tax Free Fund | 46 | |||
Colorado Tax Free Fund | 22 | |||
Intermediate Tax Free Fund | 668 | |||
Minnesota Intermediate Tax Free Fund | 220 | |||
Minnesota Tax Free Fund | 165 | |||
Missouri Tax Free Fund | 178 | |||
Nebraska Tax Free Fund | 41 | |||
Ohio Tax Free Fund | 42 | |||
Oregon Intermediate Tax Free Fund | 134 | |||
Short Tax Free Fund | 291 | |||
Tax Free Fund | 499 | |||
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. Prior to July 1, 2005, the fee for each fund was an annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly. | |
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred which will increase the fund’s custodian expenses. | |
For the fiscal period ended June 30, 2006, custodian fees were increased as a result of overdrafts, and decreased as a result of interest earned as follows: |
Fund | Increased | Decreased | ||||||
Arizona Tax Free Fund | $ | — | * | $ | — | * | ||
California Intermediate Tax Free Fund | — | * | — | * | ||||
California Tax Free Fund | — | * | — | |||||
Colorado Intermediate Tax Free Fund | — | * | — | * | ||||
Colorado Tax Free Fund | — | * | — | * | ||||
Intermediate Tax Free Fund | — | 1 | ||||||
Minnesota Intermediate Tax Free Fund | — | * | 1 | |||||
Minnesota Tax Free Fund | 1 | — | * | |||||
Missouri Tax Free Fund | — | * | — | * | ||||
Nebraska Tax Free Fund | — | * | — | * | ||||
Ohio Tax Free Fund | — | * | — | |||||
Oregon Intermediate Tax Free Fund | 1 | — | * | |||||
Short Tax Free Fund | 1 | — | * | |||||
Tax Free Fund | — | * | — | * | ||||
* | Rounds to zero. |
First American Funds Annual Report 2006 133
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Notes to Financial Statements continued
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under Rule 12b-1 of the Investment Company Act, each of the funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% and 1.00% of each fund’s average daily net assets of the Class A and Class C shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, or shareholder servicing activities. | |
Quasar is currently waiving a portion of its 12b-1 fees. For Class A shares, Quasar is limiting its fees to 0.15% of average daily net assets for California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. For Class C shares, Quasar is limiting its fees to 0.65% of average daily net assets for Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund. | |
For the fiscal period ended June 30, 2006, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows: |
Fund | Amount | |||
Arizona Tax Free Fund | $ | 4 | ||
California Intermediate Tax Free Fund | 3 | |||
California Tax Free Fund | 9 | |||
Colorado Intermediate Tax Free Fund | 9 | |||
Colorado Tax Free Fund | 9 | |||
Intermediate Tax Free Fund | 25 | |||
Minnesota Intermediate Tax Free Fund | 22 | |||
Minnesota Tax Free Fund | 26 | |||
Missouri Tax Free Fund | 1 | |||
Nebraska Tax Free Fund | 4 | |||
Ohio Tax Free Fund | 1 | |||
Oregon Intermediate Tax Free Fund | 7 | |||
Short Tax Free Fund | 3 | |||
Tax Free Fund | 7 | |||
Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended June 30, 2006: |
Fund | Amount | |||
Arizona Tax Free Fund | $ | 2 | ||
California Intermediate Tax Free Fund | 3 | |||
California Tax Free Fund | 30 | |||
Colorado Intermediate Tax Free Fund | 10 | |||
Colorado Tax Free Fund | 11 | |||
Intermediate Tax Free Fund | 27 | |||
Minnesota Intermediate Tax Free Fund | 17 | |||
Minnesota Tax Free Fund | 47 | |||
Missouri Tax Free Fund | 48 | |||
Nebraska Tax Free Fund | 5 | |||
Ohio Tax Free Fund | 3 | |||
Oregon Intermediate Tax Free Fund | 9 | |||
Short Tax Free Fund | 4 | |||
Tax Free Fund | 28 | |||
OTHER EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended June 30, 2006, legal fees and expenses of $44 were paid to a law firm of which an Assistant Secretary of the funds is a partner. | |
CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) of 1.00% is imposed on redemptions made in the Class C shares for the first 12 months. The CDSC is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less. | |
For the fiscal period ended June 30, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows: |
Fund | Amount | |||
Arizona Tax Free Fund | $ | 2 | ||
California Intermediate Tax Free Fund | 4 | |||
California Tax Free Fund | 86 | |||
Colorado Intermediate Tax Free Fund | 1 | |||
Colorado Tax Free Fund | 29 | |||
Intermediate Tax Free Fund | 4 | |||
Minnesota Intermediate Tax Free Fund | 12 | |||
Minnesota Tax Free Fund | 55 | |||
Missouri Tax Free Fund | 22 | |||
Nebraska Tax Free Fund | 8 | |||
Ohio Tax Free Fund | 7 | |||
Oregon Intermediate Tax Free Fund | 24 | |||
Short Tax Free Fund | 11 | |||
Tax Free Fund | 26 | |||
134 First American Funds Annual Report 2006
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4 > | Capital Share Transactions |
FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows: |
California | ||||||||||||||||||||||||||||||||||||||||||
Arizona | Intermediate | California | ||||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | Year | ||||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 92 | 189 | 162 | 94 | 131 | 174 | 154 | 373 | 155 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 27 | 37 | 35 | 8 | 11 | 12 | 23 | 33 | 37 | |||||||||||||||||||||||||||||||||
Shares redeemed | (139 | ) | (162 | ) | (461 | ) | (143 | ) | (81 | ) | (267 | ) | (250 | ) | (184 | ) | (335 | ) | ||||||||||||||||||||||||
Total Class A transactions | (20 | ) | 64 | (264 | ) | (41 | ) | 61 | (81 | ) | (73 | ) | 222 | (143 | ) | |||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 11 | 18 | 33 | — | — | — | 102 | 163 | 51 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 4 | 6 | 4 | — | — | — | 5 | 6 | 4 | |||||||||||||||||||||||||||||||||
Shares redeemed | (36 | ) | (17 | ) | (62 | ) | — | — | — | (53 | ) | (9 | ) | (38 | ) | |||||||||||||||||||||||||||
Total Class C transactions | (21 | ) | 7 | (25 | ) | — | — | — | 54 | 160 | 17 | �� | ||||||||||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 525 | 459 | 204 | 894 | 609 | 777 | 705 | 536 | 358 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 10 | 6 | 2 | 5 | 8 | 3 | 3 | 3 | 2 | |||||||||||||||||||||||||||||||||
Shares redeemed | (351 | ) | (44 | ) | (189 | ) | (544 | ) | (307 | ) | (523 | ) | (462 | ) | (207 | ) | (290 | ) | ||||||||||||||||||||||||
Total Class Y transactions | 184 | 421 | 17 | 355 | 310 | 257 | 246 | 332 | 70 | |||||||||||||||||||||||||||||||||
Net increase (decrease) in capital shares | 143 | 492 | (272 | ) | 314 | 371 | 176 | 227 | 714 | (56 | ) | |||||||||||||||||||||||||||||||
Colorado | ||||||||||||||||||||||||||||||||||||||||||
Intermediate | Colorado | Intermediate | ||||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | Year | ||||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 8 | 392 | 187 | 146 | 26 | 77 | 337 | 714 | 1,364 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 26 | 39 | 43 | 42 | 37 | 47 | 76 | 114 | 102 | |||||||||||||||||||||||||||||||||
Shares redeemed | (363 | ) | (454 | ) | (994 | ) | (135 | ) | (243 | ) | (400 | ) | (528 | ) | (809 | ) | (1,341 | ) | ||||||||||||||||||||||||
Total Class A transactions | (329 | ) | (23 | ) | (764 | ) | 53 | (180 | ) | (276 | ) | (115 | ) | 19 | 125 | |||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | 12 | 42 | 24 | — | — | — | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | 16 | 15 | 15 | — | — | — | |||||||||||||||||||||||||||||||||
Shares redeemed | — | — | — | (51 | ) | (83 | ) | (80 | ) | — | — | — | ||||||||||||||||||||||||||||||
Total Class C transactions | — | — | — | (23 | ) | (26 | ) | (41 | ) | — | — | — | ||||||||||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 444 | 583 | 196 | 432 | 122 | 106 | 7,885 | 10,127 | 8,772 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 5 | 5 | 1 | 3 | 1 | 1 | 216 | 321 | 208 | |||||||||||||||||||||||||||||||||
Shares redeemed | (526 | ) | (810 | ) | (1,081 | ) | (227 | ) | (202 | ) | (110 | ) | (10,731 | ) | (8,735 | ) | (13,668 | ) | ||||||||||||||||||||||||
Total Class Y transactions | (77 | ) | (222 | ) | (884 | ) | 208 | (79 | ) | (3 | ) | (2,630 | ) | 1,713 | (4,688 | ) | ||||||||||||||||||||||||||
Net increase (decrease) in capital shares | (406 | ) | (245 | ) | (1,648 | ) | 238 | (285 | ) | (320 | ) | (2,745 | ) | 1,732 | (4,563 | ) | ||||||||||||||||||||||||||
Minnesota | ||||||||||||||||||||||||||||||||||||||||||
Intermediate | Minnesota | Missouri | ||||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | Year | ||||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 298 | 553 | 1,288 | 1,143 | 716 | 664 | 67 | 374 | 314 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 74 | 100 | 91 | 262 | 356 | 477 | 44 | 51 | 46 | |||||||||||||||||||||||||||||||||
Shares redeemed | (869 | ) | (859 | ) | (963 | ) | (1,711 | ) | (1,782 | ) | (2,006 | ) | (303 | ) | (140 | ) | (434 | ) | ||||||||||||||||||||||||
Total Class A transactions | (497 | ) | (206 | ) | 416 | (306 | ) | (710 | ) | (865 | ) | (192 | ) | 285 | (74 | ) | ||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | 181 | 83 | 76 | 2 | — | 1 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | 26 | 34 | 43 | — | 1 | 1 | |||||||||||||||||||||||||||||||||
Shares redeemed | — | — | — | (140 | ) | (164 | ) | (248 | ) | — | (3 | ) | (6 | ) | ||||||||||||||||||||||||||||
Total Class C transactions | — | — | — | 67 | (47 | ) | (129 | ) | 2 | (2 | ) | (4 | ) | |||||||||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 1,745 | 1,581 | 2,053 | 1,004 | 779 | 540 | 1,228 | 1,808 | 1,288 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 35 | 33 | 32 | 14 | 19 | 21 | 23 | 23 | 22 | |||||||||||||||||||||||||||||||||
Shares redeemed | (3,437 | ) | (3,175 | ) | (3,996 | ) | (718 | ) | (471 | ) | (961 | ) | (1,975 | ) | (1,732 | ) | (2,503 | ) | ||||||||||||||||||||||||
Total Class Y transactions | (1,657 | ) | (1,561 | ) | (1,911 | ) | 300 | 327 | (400 | ) | (724 | ) | 99 | (1,193 | ) | |||||||||||||||||||||||||||
Net increase (decrease) in capital shares | (2,154 | ) | (1,767 | ) | (1,495 | ) | 61 | (430 | ) | (1,394 | ) | (914 | ) | 382 | (1,271 | ) | ||||||||||||||||||||||||||
First American Funds Annual Report 2006 135
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Notes to Financial Statements continued
Oregon | ||||||||||||||||||||||||||||||||||||||||||
Nebraska | Ohio | Intermediate | ||||||||||||||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | ||||||||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | Year | ||||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 74 | 295 | 137 | 15 | 24 | 77 | 281 | 202 | 237 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 11 | 11 | 12 | 1 | 2 | 2 | 19 | 22 | 24 | |||||||||||||||||||||||||||||||||
Shares redeemed | (91 | ) | (93 | ) | (144 | ) | (28 | ) | (45 | ) | (46 | ) | (263 | ) | (139 | ) | (201 | ) | ||||||||||||||||||||||||
Total Class A transactions | (6 | ) | 213 | 5 | (12 | ) | (19 | ) | 33 | 37 | 85 | 60 | ||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 15 | 39 | 51 | 8 | 10 | 11 | — | — | — | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 3 | 4 | 5 | — | — | 1 | — | — | — | |||||||||||||||||||||||||||||||||
Shares redeemed | (22 | ) | (70 | ) | (37 | ) | (4 | ) | (5 | ) | (20 | ) | — | — | — | |||||||||||||||||||||||||||
Total Class C transactions | (4 | ) | (27 | ) | 19 | 4 | 5 | (8 | ) | — | — | — | ||||||||||||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||||||||||||||||
Shares issued | 398 | 669 | 461 | 473 | 779 | 558 | 938 | 1,909 | 1,741 | |||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 7 | 9 | 6 | 18 | 22 | 25 | 35 | 39 | 76 | |||||||||||||||||||||||||||||||||
Shares redeemed | (433 | ) | (403 | ) | (317 | ) | (436 | ) | (590 | ) | (596 | ) | (2,855 | ) | (2,067 | ) | (2,448 | ) | ||||||||||||||||||||||||
Total Class Y transactions | (28 | ) | 275 | 150 | 55 | 211 | (13 | ) | (1,882 | ) | (119 | ) | (631 | ) | ||||||||||||||||||||||||||||
Net increase (decrease) in capital shares | (38 | ) | 461 | 174 | 47 | 197 | 12 | (1,845 | ) | (34 | ) | (571 | ) | |||||||||||||||||||||||||||||
Short | |||||||||||||||||||||||||||||
Tax Free Fund | Tax Free Fund | ||||||||||||||||||||||||||||
Fiscal | Fiscal | ||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | ||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||
Shares issued | 121 | 213 | 330 | 383 | 382 | 791 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 7 | 11 | 16 | 96 | 150 | 166 | |||||||||||||||||||||||
Shares redeemed | (204 | ) | (440 | ) | (344 | ) | (559 | ) | (682 | ) | (1,170 | ) | |||||||||||||||||
Total Class A transactions | (76 | ) | (216 | ) | 2 | (80 | ) | (150 | ) | (213 | ) | ||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||
Shares issued | — | — | — | 3 | 25 | 42 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | 7 | 11 | 16 | |||||||||||||||||||||||
Shares redeemed | — | — | — | (51 | ) | (32 | ) | (251 | ) | ||||||||||||||||||||
Total Class C transactions | — | — | — | (41 | ) | 4 | (193 | ) | |||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||
Shares issued | 3,350 | 6,860 | 16,264 | 7,282 | 6,235 | 4,012 | |||||||||||||||||||||||
Shares issued in lieu of cash distributions | 45 | 69 | 347 | 82 | 97 | 106 | |||||||||||||||||||||||
Shares redeemed | (12,753 | ) | (15,310 | ) | (13,499 | ) | (4,706 | ) | (4,293 | ) | (7,665 | ) | |||||||||||||||||
Total Class Y transactions | (9,358 | ) | (8,381 | ) | 3,112 | 2,658 | 2,039 | (3,547 | ) | ||||||||||||||||||||
Net increase (decrease) in capital shares | (9,434 | ) | (8,597 | ) | 3,114 | 2,537 | 1,893 | (3,953 | ) | ||||||||||||||||||||
5 > | Investment Security Transactions |
During the fiscal period ended June 30, 2006, purchases of securities and proceeds from sales of securities, other than government securities and temporary investments in short-term securities, were as follows: |
Fund | Purchases | Sales | ||||||
Arizona Tax Free Fund | $ | 14,429 | $ | 11,884 | ||||
California Intermediate Tax Free Fund | 12,837 | 10,921 | ||||||
California Tax Free Fund | 10,585 | 8,049 | ||||||
Colorado Intermediate Tax Free Fund | 7,719 | 12,367 | ||||||
Colorado Tax Free Fund | 9,929 | 7,430 | ||||||
Intermediate Tax Free Fund | 100,217 | 132,593 | ||||||
Minnesota Intermediate Tax Free Fund | 23,303 | 46,387 | ||||||
Minnesota Tax Free Fund | 16,722 | 16,604 | ||||||
Missouri Tax Free Fund | 33,945 | 45,258 | ||||||
Nebraska Tax Free Fund | 14,591 | 13,943 | ||||||
Ohio Tax Free Fund | 4,540 | 4,712 | ||||||
Oregon Intermediate Tax Free Fund | 17,536 | 34,550 | ||||||
Short Tax Free Fund | 52,803 | 149,281 | ||||||
Tax Free Fund | 93,937 | 64,178 | ||||||
The aggregate gross unrealized appreciation and depreciation for securities held by the funds and the total cost of securities for federal income tax purposes at June 30, 2006, were as follows: |
Aggregate | Aggregate | Federal | ||||||||||||||||
Gross | Gross | Income | ||||||||||||||||
Fund | Appreciation | Depreciation | Net | Tax Cost | ||||||||||||||
Arizona Tax Free Fund | $ | 835 | $ | (211 | ) | $ | 624 | $ | 25,165 | |||||||||
California Intermediate Tax Free Fund | 1,195 | (285 | ) | 910 | 53,266 | |||||||||||||
California Tax Free Fund | 1,082 | (259 | ) | 823 | 35,030 | |||||||||||||
Colorado Intermediate Tax Free Fund | 1,465 | (186 | ) | 1,279 | 40,997 | |||||||||||||
Colorado Tax Free Fund | 986 | (126 | ) | 860 | 21,436 | |||||||||||||
Intermediate Tax Free Fund | 21,452 | (3,466 | ) | 17,986 | 604,774 | |||||||||||||
Minnesota Intermediate Tax Free Fund | 5,037 | (989 | ) | 4,048 | 195,816 | |||||||||||||
Minnesota Tax Free Fund | 6,657 | (842 | ) | 5,815 | 154,027 | |||||||||||||
Missouri Tax Free Fund | 3,827 | (917 | ) | 2,910 | 160,917 | |||||||||||||
Nebraska Tax Free Fund | 691 | (264 | ) | 427 | 40,367 | |||||||||||||
Ohio Tax Free Fund | 545 | (265 | ) | 280 | 41,498 | |||||||||||||
Oregon Intermediate Tax Free Fund | 2,410 | (826 | ) | 1,584 | 118,225 | |||||||||||||
Short Tax Free Fund | 321 | (3,151 | ) | (2,830 | ) | 244,253 | ||||||||||||
Tax Free Fund | 20,425 | (1,825 | ) | 18,600 | 474,558 | |||||||||||||
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6 > | Concentration of Credit Risk |
The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund invest in debt instruments of municipal issuers in specific states. Although these funds monitor investment concentration, the issuers’ ability to meet their obligations may be affected by economic developments in the specific state or region. Additionally, each state has various guidelines relating to the tax treatment of the income distributed from each fund. |
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 > | New Accounting Pronouncement |
In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FAS109, Accounting for Income Taxes (FIN 48), to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. At this time, FAF Advisors is evaluating the implications of FIN 48 and its impact in the funds’ financial statements which has not yet been determined. |
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NOTICE TO SHAREHOLDERS June 30, 2006 (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 2007 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information. | |
For the fiscal period ended June 30, 2006, 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 | Tax Exempt | Distributions | Distributions | |||||||||||||
Fund | (Tax Basis) | Interest | (Tax Basis) | (Tax Basis) (a) | ||||||||||||
Arizona Tax Free Fund | 21 | % | 79 | % | — | % | 100 | % | ||||||||
California Intermediate Tax Free Fund | 5 | 90 | 5 | 100 | ||||||||||||
California Tax Free Fund | 5 | 94 | 1 | 100 | ||||||||||||
Colorado Intermediate Tax Free Fund | 16 | 83 | 1 | 100 | ||||||||||||
Colorado Tax Free Fund | 43 | 53 | 4 | 100 | ||||||||||||
Intermediate Tax Free Fund | 8 | 91 | 1 | 100 | ||||||||||||
Minnesota Intermediate Tax Free Fund | 17 | 82 | 1 | 100 | ||||||||||||
Minnesota Tax Free Fund | 7 | 93 | — | 100 | ||||||||||||
Missouri Tax Free Fund | 20 | 80 | — | 100 | ||||||||||||
Nebraska Tax Free Fund | 5 | 95 | — | 100 | ||||||||||||
Ohio Tax Free Fund | 3 | 97 | — | 100 | ||||||||||||
Oregon Intermediate Tax Free Fund | 14 | 86 | — | 100 | ||||||||||||
Short Tax Free Fund | — | 100 | — | 100 | ||||||||||||
Tax Free Fund | 8 | 91 | 1 | 100 | ||||||||||||
(a) | None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Additional Information Applicable to Foreign Shareholders Only: | |
The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows: |
Fund | ||||
Arizona Tax Free Fund | 100.00 | % | ||
California Intermediate Tax Free Fund | 98.74 | % | ||
California Tax Free Fund | 99.64 | % | ||
Colorado Intermediate Tax Free Fund | 99.39 | % | ||
Colorado Tax Free Fund | 98.09 | % | ||
Intermediate Tax Free Fund | 99.96 | % | ||
Minnesota Intermediate Tax Free Fund | 99.51 | % | ||
Minnesota Tax Free Fund | 99.25 | % | ||
Missouri Tax Free Fund | 99.75 | % | ||
Nebraska Tax Free Fund | 99.81 | % | ||
Ohio Tax Free Fund | 99.71 | % | ||
Oregon Intermediate Tax Free Fund | 99.92 | % | ||
Short Tax Free Fund | 100.00 | % | ||
Tax Free Fund | 99.78 | % | ||
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 were as follows: |
Fund | ||||
Arizona Tax Free Fund | — | % | ||
California Intermediate Tax Free Fund | 98 | % | ||
California Tax Free Fund | 100 | % | ||
Colorado Intermediate Tax Free Fund | 77 | % | ||
Colorado Tax Free Fund | 84 | % | ||
Intermediate Tax Free Fund | 62 | % | ||
Minnesota Intermediate Tax Free Fund | 23 | % | ||
Minnesota Tax Free Fund | 61 | % | ||
Missouri Tax Free Fund | 73 | % | ||
Nebraska Tax Free Fund | — | % | ||
Ohio Tax Free Fund | — | % | ||
Oregon Intermediate Tax Free Fund | — | % | ||
Short Tax Free Fund | — | % | ||
Tax Free Fund | 87 | % | ||
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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 during the most recent 12 month period ended June 30 is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. |
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 (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at http://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 1-800-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 days of the quarter end. |
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
The Board of Directors of the funds (the “Board”), which is comprised entirely of independent directors, oversees the management of the funds 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 1-3, 2006, 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 their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement through June 30, 2007. | |
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 the fund, (2) the investment performance of the fund, (3) the profitability of FAF Advisors related to the fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the fund grows 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 fund. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement. | |
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 all material factors, the Board concluded that the Agreement is fair and in the 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 advisory services to each fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each fund within the framework of 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, and (iii) monitoring the performance of the various organizations providing services to the fund, including the fund’s 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. |
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NOTICE TO SHAREHOLDERS continued
The Board also considered compliance reports about FAF Advisors from the funds’ Chief Compliance Officer. | |
Based on the foregoing, the Board concluded that each fund is likely to benefit from the nature, 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, as summarized below, including how the fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the fund performed versus its benchmark index. The performance periods reviewed by the Board ended on January 31, 2006. In the case of each state-specific fund, the Board considered that the fund’s benchmark index is a national municipal index, rather than a state-specific index, and noted FAF Advisors’ assertion that the Board should, therefore, treat the fund’s performance universe as a more meaningful source of comparative performance data. The Board also considered that, in reviewing the comparative performance of income funds, the different expense levels of a fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest expense ratios, offered the most meaningful data on performance. | |
Arizona Tax Free Fund, California Tax Free Fund, California Intermediate Tax Free Fund, Colorado Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, and Oregon Intermediate Tax Free Fund. For each of these funds, the Board considered that the fund outperformed or performed competitively against its performance universe and benchmark for the one-, three-, and five-year periods. The Board concluded that, in light of each fund’s competitive performance, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Minnesota Tax Free Fund. The Board considered that the fund outperformed (in most instances, significantly) its performance universe and benchmark for the one-, three-, and five-year periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Missouri Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its performance universe for the one-, three-, and five-year periods. The Board also noted that the fund underperformed its benchmark for those periods. The Board considered FAF Advisors’ assertion that the fund’s performance has been affected by its limited ability to enter into transactions with Piper Jaffray, an active dealer in Missouri secondary market trading. This results from banking regulation related restrictions, which are expected to lapse, vis-à-vis the fund, before December 31, 2006. The Board concluded that, in light of the fund’s competitive performance compared to that of the performance universe and the anticipated positive impact of the increased access to Piper Jaffray’s offering and secondary market trading capabilities, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Nebraska Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its performance universe and benchmark for the one- and three-year periods. The Board concluded that, in light of the fund’s competitive performance, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Ohio Tax Free Fund. The Board considered that the fund outperformed its performance universe for the one- and three-year periods. The Board also noted that the fund performed competitively against its benchmark for the three-year period though it underperformed for the one-year period. The Board concluded that, in light of the fund’s competitive longer-term performance, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Short Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its benchmark for the one-and three-year periods. The Board also noted that the fund outperformed its performance universe for the three-year period, though it underperformed for the one-year period. The Board concluded that, in light of the fund’s competitive, longer-term performance, especially against its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement. | |
Tax Free Fund. The Board considered that the fund significantly outperformed its performance universe for the one-, three-, five-, and ten-year periods and also outperformed or performed competitively with its benchmark for all periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement. |
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Costs of Services and Profits Realized by FAF Advisors
The Board reviewed FAF Advisors’ estimated costs in serving as the funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each fund. For each fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the advisory fees for FAF Advisors’ institutional separate accounts are lower than the funds’ advisory fees, the funds receive additional services from FAF Advisors that separate accounts do not receive. | |
Using information provided by an independent data service, the Board also evaluated each fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each fund’s 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 asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each fund’s total operating expenses at a level that approximates its peer group median expense ratio. In addition, FAF Advisors 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. Consistent with this pricing philosophy, FAF Advisors agreed to maintain the funds’ expense caps at their current levels through June 30, 2007. | |
Further detail considered by the Board regarding the advisory fees and expense ratios of each fund is set forth below: | |
Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. For each of these funds, the advisory fee and expense ratio, after waivers, was less than or equal to the peer group median. The Board concluded that each fund’s advisory fee and expense ratio is reasonable in light of the services provided. | |
Minnesota Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was lower than the peer group median, though the fund’s expense ratio was slightly higher than the median. Given the competitiveness of the advisory fee and the fact that the expense ratio is within a range consistent with FAF Advisors’ pricing philosophy, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Missouri Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was slightly higher than the peer group median advisory fee. The Board also noted that the fund’s expense ratio, after waivers, was higher than that of the peer group median, though within a range consistent with FAF Advisors’ pricing philosophy. Given this and the fund’s competitive advisory fee, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was lower than the peer group median. The Board also noted that the fund’s expense ratio, after waivers, was higher than that of the peer group median, though within a range consistent with FAF Advisors’ pricing philosophy. Given this and the fund’s competitive advisory fee, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided. |
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each fund’s investment advisory fee reflects the potential for economies of scale for the benefit of fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a fund’s total expense ratio at a level close to the median, fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. 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. |
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NOTICE TO SHAREHOLDERS continued
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the funds, the Board noted that FAF Advisors and certain of its affiliates serve the funds in various capacities, including as advisor, administrator, transfer agent, distributor, custodian, and securities lending agent, and receive compensation from the funds in connection with providing services to the funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law. | |
After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best 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; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis, through April 2002. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997. | Retired; Vice President, Cargo – United Airlines from July 2001 through July 2004; Vice President, North America – Mountain Region, United Airlines, prior to July 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
Victoria J. Herget P.O. Box 1329 Minneapolis, MN 55440-1329 (1951) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003. | Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
Leonard W. Kedrowski P.O. Box 1329 Minneapolis, MN 55440-1329 (1941) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993. | Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001. | Retired; Director, President, and Chief Executive Officer, Weirton Steel through 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | Cleveland Cliffs Inc (a producer of iron ore pellets) | |||||||
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991. | Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; Owner, Chairman and Chief Executive Officer, Excensustm, LLC, a strategic demographic planning and application development firm, since 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
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NOTICE TO SHAREHOLDERS continued
Independent Directors — continued | ||||||||||||
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. | Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003. | First American Funds Complex: twelve registered investment companies, including fifty-eight 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, since 1999. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||
† | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
144 First American Funds Annual Report 2006
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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 of FAF Advisors, Inc. | |||||
Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)* | Vice President – Investments | Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001. | Chief Investment Officer of FAF Advisors, Inc., since September 2001. | |||||
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 of 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. | Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of investment accounting and Fund Treasurer for Thrivent Financial for Lutherans. | |||||
Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)* | Assistant Treasurer | Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005. | Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC. | |||||
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 February 2005. | Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since February 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to February 2005; prior to that, Vice President, Charles Schwab & Co., Inc. | |||||
Jevad (“Jay”) Aslani FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1961)* | Anti-Money Laundering Officer | Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since June 2006. | Director of Compliance of FAF Advisors, Inc., since September 2004; prior thereto, Independent Compliance Consultant from December 2002 to August 2004; prior to that, Assistant Vice President, Assistant Secretary, and Anti-Money Laundering Officer of Artisan Funds, Assistant Secretary and Compliance Officer of Artisan Distributors, and Compliance Officer of Artisan Partners Limited Partnership. | |||||
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)* | Secretary | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998. | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm. | |||||
James D. Alt 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. | |||||
Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004. | Attorney for FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans from May 2001 to August 2004; prior to that, Consultant, Principal Financial Group. | |||||
First American Funds Annual Report 2006 145
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NOTICE TO SHAREHOLDERS continued
Officers — continued | ||||||||
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 | |||||
James R. Arnold 615 E. Michigan Street Milwaukee, WI 53202 (1957)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003. | Vice President, U.S. Bancorp Fund Services, LLC, since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc. | |||||
Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004. | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company. | |||||
Douglas G. Hess 615 E. Michigan Street Milwaukee, WI 53202 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001. | Vice President, U.S. Bancorp Fund Services, LLC. | |||||
* | Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Aslani, Agnew and Ertel, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF. |
146 First American Funds Annual Report 2006
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Board of Directors First American Investment Funds, Inc.
Virginia Stringer | |
Chairperson of First American Investment Funds, Inc. | |
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. | |
Retired; former Vice President of Cargo-United Airlines | |
Victoria Herget | |
Director of First American Investment Funds, Inc. | |
Investment Consultant; former Managing Director of Zurich Scudder Investments | |
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. | |
Retired; former Director, President, and Chief Executive Officer of Weirton Steel | |
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. |
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Direct fund correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended June 30, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions. | |
This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing. | |
The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. |
INVESTMENT ADVISOR
FAF Advisors, Inc. | ||
800 Nicollet Mall | ||
Minneapolis, Minnesota 55402 |
ADMINISTRATOR
FAF Advisors, Inc. | ||
800 Nicollet Mall | ||
Minneapolis, Minnesota 55402 |
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC | ||
615 East Michigan Street | ||
Milwaukee, Wisconsin 53202 |
CUSTODIAN
U.S. Bank National Association | ||
60 Livingston Avenue | ||
St. Paul, Minnesota 55101 |
DISTRIBUTOR
Quasar Distributors, LLC | |
615 East Michigan Street | |
Milwaukee, Wisconsin 53202 |
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
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 |
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
0169-06 8/2006 AR-TAXFREEINCOME
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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 August 14, 2006
Dear Shareholders: | |
We invite you to take a few minutes to review the results of the funds’ most recent fiscal period. Because the funds have changed their fiscal year-end from September 30 to June 30, this report covers the nine-month time period from October 1, 2005, through June 30, 2006. |
This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.
Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.
Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.
We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.
Sincerely,
![]() | ![]() | |
Virginia L. Stringer | Thomas S. Schreier, Jr. | |
Chairperson of the Board First American Investment Funds, Inc. | President First American Investment Funds, Inc. |
First American Funds Annual Report 2006 1
Table of Contents
Core Bond fund
Investment Objective: high current income consistent with limited risk to capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Core Bond Fund (the “fund”), Class Y shares, returned -0.24% for the fiscal period ended June 30, 2006 (Class A shares returned -0.34% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned -0.13% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Sustained Fed tightening, driven by robust economic growth and increasing price pressures, caused market interest rates to rise significantly across all maturities last fiscal period. The yield curve continued its flattening trend, becoming inverted in early 2006. Two key drivers of performance for the period were the fund’s defensive (shorter than index) duration posture, adopted to reduce risk as interest rates rose, and its strategic positioning for a flattening yield curve. Issue selection, primarily within the mortgage and corporate sectors, also helped performance. In addition, sector selection added value, primarily because of the fund’s overweight to structured assets (mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities) and corresponding underweight to corporate bonds.
What strategic moves were made by the fund and why?
During the fiscal period, we moderated the fund’s yield-curve flattening bias, gradually increasing the fund’s weighting in intermediate-term bonds in anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle. We also brought the fund’s duration closer to neutral as the fiscal period ended, after having been defensive for most of the period. Reflecting our view that high-quality mortgage-backed securities offered superior risk-adjusted returns, the fund was underweighted in investment-grade corporate bonds for most of the fiscal period, particularly those of higher quality (A- and AA-rated). Corporate issue-selection changes were guided by bottom-up research opportunities and evolving themes related to the maturing of the economic cycle.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
U.S. Government Agency Mortgage-Backed Securities | 37.1 | % | ||
Asset-Backed Securities | 20.2 | |||
U.S. Government & Agency Securities | 17.1 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 12.3 | |||
Corporate Bonds | 11.2 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 3.6 | |||
Short-Term Investments | 3.0 | |||
Other Assets and Liabilities, Net | (4.5 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 85.5 | % | ||
AA | 3.7 | |||
A | 3.1 | |||
BBB | 7.7 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
2 First American Funds Annual Report 2006
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Core Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||||||
Month | ||||||||||||||||||||||||
Period* | 1 year | 5 years | 10 years | 2/01/1999 | 9/24/2001 | |||||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||||||
Class A | (4.54)% | (5.16)% | 3.20% | 4.86% | — | — | ||||||||||||||||||
Class B | (5.71)% | (6.46)% | 2.97% | 4.55% | — | — | ||||||||||||||||||
Class C | (1.97)% | (2.77)% | 3.31% | — | 3.49% | — | ||||||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||||||
Class A | (0.34)% | (0.98)% | 4.10% | 5.32% | — | — | ||||||||||||||||||
Class B | (0.91)% | (1.73)% | 3.31% | 4.55% | — | — | ||||||||||||||||||
Class C | (1.01)% | (1.83)% | 3.31% | — | 3.49% | — | ||||||||||||||||||
Class R | (0.51)% | (1.19)% | — | — | — | 3.38% | ||||||||||||||||||
Class Y | (0.24)% | (0.82)% | 4.34% | 5.58% | — | — | ||||||||||||||||||
Lehman Aggregate Bond Index2 | (0.13)% | (0.81)% | 4.97% | 6.22% | 5.21% | 4.37% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Core Bond Fund, Class A (NAV) | ![]() | $ | 16,527 | |||
Core Bond Fund, Class A (POP) | ![]() | $ | 15,822 | |||
Core Bond Fund, Class Y | ![]() | $ | 16,932 | |||
Lehman Aggregate Bond Index2 | ![]() | $ | 17,948 | |||
Class A |
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Class Y |
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The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman Aggregate Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, 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. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of the Lehman Government/ Credit Bond Index, the Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed Securities Index. The Lehman Government/ Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Lehman Asset Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans. |
3 | Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds Annual Report 2006 3
Table of Contents
Core Bond fund continued
Expense Example
As a shareholder of the Core Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 991.30 | $ | 4.69 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 987.50 | $ | 8.38 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.36 | $ | 8.50 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 986.60 | $ | 8.37 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.36 | $ | 8.50 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 990.20 | $ | 5.92 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.84 | $ | 6.01 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 991.70 | $ | 3.46 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.87%,-1.25%, -1.34%, -0.98%, and -0.83% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
4 First American Funds Annual Report 2006
Table of Contents
High Income Bond fund
Investment Objective: high current income
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American High Income Bond Fund (the “fund”), Class Y shares, returned 3.34% for the fiscal period ended June 30, 2006 (Class A shares returned 3.14% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman High Yield 2% Issuer Capped Index*, returned 3.36% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Throughout the fiscal period, high-yield bonds were fully valued, which limited potential performance. Spreads over Treasuries were relatively narrow at the beginning of the period, particularly for higher-quality high yield, and narrowed further throughout the period. Coupon income, combined with the spread-tightening, helped high yield to be one of the best fixed-income performers in a period of steadily rising interest rates, even though absolute returns were less than stellar.
Prior to the beginning of the fiscal period, we had improved the average quality of the portfolio and underweighted CCC-rated holdings in anticipation of a down phase in the credit cycle, which, however, never occurred. Instead, as CCCs outperformed higher-quality high yield by a fairly wide margin, the fund experienced weaker performance. On the other hand, emerging market exposure provided substantial diversification benefits to the portfolio, particularly in the first eight months of the fiscal period.
Individual security selection accounted for the lion’s share of performance. Timely overweights in bonds issued by General Motors, Lazard, Polyone, and American Airlines provided a lift. On the negative side, overweights to Inn of the Mountain Gods, Imax, Magnachip Semi, and Time Warner Telecom detracted from the fund’s performance.
What strategic moves were made by the fund and why?
We initiated several small positions in closed-end funds, primarily to gain access to leveraged loans. We augmented our portfolio of “busted” convertibles, which trade at fairly high yields but have some equity potential. (A “busted” convertible is a security for which the market price of the common stock is so low that the convertible feature is nearly worthless, and the security trades almost as if it were a fixed-income investment). We began investing in royalty trusts (securities that provide investors with income from royalties associated with the sale of oil and/or natural gas) for their large yields and possible upside in this environment of high energy prices. Together, these areas accounted for just a few percentage points of the overall portfolio, but they did provide alternative avenues for achieving high yields at a time when the high-yield market appeared to be richly valued.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
High Yield Corporate Bonds | 91.1 | % | ||
Closed-End Funds | 1.9 | |||
Asset-Backed Securities | 1.5 | |||
Preferred Stock | 1.0 | |||
High Grade Corporate Bonds | 0.7 | |||
Common Stocks | 0.5 | |||
Short-Term Investments | 0.6 | |||
Other Assets and Liabilities, Net | 2.7 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 2.1 | % | ||
BBB | 1.5 | |||
BB | 34.4 | |||
B | 45.8 | |||
CCC | 11.6 | |||
D | 0.1 | |||
Non-Rated | 4.5 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
First American Funds Annual Report 2006 5
Table of Contents
High Income Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 8/30/2001 | 9/24/2001 | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (1.26)% | (0.20)% | 5.27% | — | ||||||||||||
Class B | (2.33)% | (1.41)% | 5.18% | — | ||||||||||||
Class C | 1.58% | 2.47% | 5.44% | — | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 3.14% | 4.22% | 6.22% | — | ||||||||||||
Class B | 2.57% | 3.46% | 5.49% | — | ||||||||||||
Class C | 2.56% | 3.45% | 5.44% | — | ||||||||||||
Class R | 3.09% | 4.05% | — | 7.26% | ||||||||||||
Class Y | 3.34% | 4.49% | 6.51% | — | ||||||||||||
Lehman High Yield 2% Issuer Capped Index2 | 3.36% | 4.38% | 8.62% | 8.51% | ||||||||||||
Lehman High Yield Index3 | 5.17% | 4.80% | 8.42% | 9.74% |
Value of $10,000 Investment1, 4 as of June 30, 2006
High Income Bond Fund, Class A (NAV) | ![]() | $ | 13,383 | |||
High Income Bond Fund, Class A (POP) | ![]() | $ | 12,815 | |||
High Income Bond Fund, Class Y | ![]() | $ | 13,564 | |||
Lehman High Yield 2% Issuer Capped Index2 | ![]() | $ | 14,843 | |||
Lehman High Yield Index3 | ![]() | $ | 14,741 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704604.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704605.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 8/30/2001 to 6/30/2006) as compared to the Lehman High Yield 2% Issuer Capped Index2 and the Lehman High Yield Index3.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
The fund invests in lower-rated and non-rated securities which present a greater risk of loss to principal and interest than higher-rated securities. | |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, 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. |
2 | An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity with total index allocation to an individual issuer being limited to 2%. Previously, the fund used the Lehman Corporate High Yield Index as a benchmark. Currently the fund uses the Lehman High Yield 2% Issuer Capped index as a comparison, because its composition better matches the fund’s investment strategies. |
3 | An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity. Payment-in-kind bonds, Eurobonds, and emerging markets debt securities are excluded, but SEC-registered Canadian and global bonds of issuers in non-emerging countries are included. Original issue zero coupon bonds, step-up coupon structures, and Rule 144A securities are also included. |
4 | Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures. |
6 First American Funds Annual Report 2006
Table of Contents
High Income Bond fund continued
Expense Example
As a shareholder of the High Income Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,019.70 | $ | 5.51 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.34 | $ | 5.51 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 1,015.90 | $ | 9.25 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.62 | $ | 9.25 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 1,015.90 | $ | 9.25 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.62 | $ | 9.25 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 1,019.90 | $ | 6.76 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,022.10 | $ | 4.26 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.10%, 1.85%, 1.85%, 1.35%, and 0.85% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 1.97%, 1.59%, 1.59%, 1.99%, and 2.21% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds Annual Report 2006 7
Table of Contents
Inflation Protected Securities fund
Investment Objective: provide investors with total return while providing protection against inflation
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Inflation Protected Securities Fund (the “fund”) Class Y shares, returned -1.50% for the fiscal period ended June 30, 2006 (Class A shares returned -1.69% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Treasury Inflation Protected Securities Index*, returned -1.65% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Treasury Inflation-Protected Securities (TIPS) performed well during the fiscal period on a relative basis, outperforming comparable-duration regular treasuries by 144 basis points. Higher inflation levels resulted in upward adjustments to TIPS coupon income and higher inflation expectations. To reduce the risk in a rising rate environment, we kept the fund’s duration shorter than that of its benchmark, a strategy that contributed strongly to performance. We employed a barbell portfolio structure that emphasized shorter and longer term securities, while reducing the fund’s weighting in intermediate maturity securities. The fund’s bias toward bonds with longer maturities added value as yields on the longer end of the Treasury curve rose less than for intermediate maturities. The fund also benefited from its non dollar positions, most notably during the first half of 2006, when the dollar lost 6.5% of its value on a trade-weighted basis. The fund’s allocation to high-yield/emerging market bonds and mortgage-backed securities also proved beneficial, as these issues enjoyed strong performance during the fiscal period.
What strategic moves were made by the fund and why?
After a period of strong performance, we reduced our overweight to short-maturity TIPS in anticipation of the lower inflation adjustments that typically occur in the fourth quarter — a scenario that is less favorable for shorter-maturity TIPS. We added to our position in long-maturity TIPS with the expectation that, with the end of Fed tightening, inflation expectations will rise, increasing the value of these securities. The fund retained its shorter-duration strategy, given market-rate levels that appeared inconsistent with economic fundamentals. In anticipation of a weaker dollar, we maintained our non-dollar position in the portfolio.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
U.S. Government & Agency Securities | 91.2 | % | ||
Corporate Bonds | 3.1 | |||
Asset-Backed Securities | 2.9 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 0.3 | |||
Municipal Bond | 0.3 | |||
Short-Term Investments | 1.5 | |||
Other Assets and Liabilities, Net | 0.7 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 96.7 | % | ||
A | 1.2 | |||
BBB | 0.3 | |||
BB | 1.6 | |||
Non-Rated | 0.2 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
8 First American Funds Annual Report 2006
Table of Contents
Inflation Protected Securities fund continued
Annual Performance1 as of June 30, 2006
Since Inception | ||||||||||||
Nine- | ||||||||||||
Month | ||||||||||||
Period* | 1 year | 10/01/2004 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (5.87)% | (6.08)% | (0.68)% | |||||||||
Class C | (3.20)% | (3.46)% | 1.05% | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | (1.69)% | (1.88)% | 1.80% | |||||||||
Class C | (2.26)% | (2.53)% | 1.05% | |||||||||
Class R | (1.80)% | (1.94)% | 1.67% | |||||||||
Class Y | (1.50)% | (1.53)% | 2.09% | |||||||||
Lehman Treasury Inflation Protected Securities Index2 | (1.65)% | (1.64)% | 2.35% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Inflation Protected Securities Fund, Class A (NAV) | ![]() | $ | 10,316 | |||
Inflation Protected Securities Fund, Class A (POP) | ![]() | $ | 9,881 | |||
Inflation Protected Securities Fund, Class Y | ![]() | $ | 10,367 | |||
Lehman Treasury Inflation Protected Securities Index2 | ![]() | $ | 10,413 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704606.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704617.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/01/2004 to 6/30/2006) as compared to the Lehman Treasury Inflation Protected Securities Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A Shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of inflation-protected securities issued by the U.S. Treasury that have at least one year to final maturity, at least $250 million par amount outstanding, and are investment-grade rated (Baa or better). |
3 | Performance for Class C and Class R shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds Annual Report 2006 9
Table of Contents
Inflation Protected Securities fund continued
Expense Example
As a shareholder of the Inflation Protected Securities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 983.40 | $ | 4.18 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 979.60 | $ | 7.85 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.86 | $ | 8.00 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 982.70 | $ | 5.95 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.79 | $ | 6.06 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 984.80 | $ | 2.95 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.60%, 1.20%, and 0.60% for Class A, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -1.66%, -2.04%, -1.73%, and -1.52% for Class A, Class C, Class R, and Class Y, respectively. |
10 First American Funds Annual Report 2006
Table of Contents
Intermediate Government Bond fund
Investment Objective: provide investors with current income that is exempt from state income tax, to the extent consistent with the preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Intermediate Government Bond Fund (the “fund”), Class Y shares, returned 0.30% for the fiscal period ended June 30, 2006 (Class A shares returned 0.06% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Treasury Bond Index*, returned 0.58% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Positioning for yield-curve flattening through early 2006 contributed strongly to performance. Our tactical duration strategy, centered on being defensive – i.e., shorter than the benchmark – to reduce risk in a rising-rate environment, also helped as rates rose roughly 125 basis points across the yield curve. An overweight to agency bonds, which performed well this fiscal period, was another significant source of added value.
What strategic moves were made by the fund and why?
The fund increased its holdings in agency securities, given the view that agencies should perform well with the end of Fed tightening, constrained supply from Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, and continued strong investor appetite for non-Treasury products in general. In anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle, we have begun to increase the fund’s weighting in bonds with maturities ranging from two to five years. We continue to approach the fund’s duration tactically, remaining modestly short relative to the index.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
U.S. Government & Agency Securities | 99.5 | % | ||
Short-Term Investment | 0.5 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
First American Funds Annual Report 2006 11
Table of Contents
Intermediate Government Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||
Month | Since Inception | |||||||||||
Period* | 1 year | 10/25/2002 | ||||||||||
Average annual return with sales charge (POP) | ||||||||||||
Class A | (2.19)% | (2.64)% | 0.99% | |||||||||
Average annual return without sales charge (NAV) | ||||||||||||
Class A | 0.06% | (0.43)% | 1.61% | |||||||||
Class Y | 0.30% | (0.28)% | 1.76% | |||||||||
Lehman Intermediate Treasury Bond Index2 | 0.58% | (0.19)% | 1.98% |
Value of $10,000 Investment1 as of June 30, 2006
Intermediate Government Bond Fund, Class A (NAV) | ![]() | $ | 10,607 | |||
Intermediate Government Bond Fund, Class A (POP) | ![]() | $ | 10,369 | |||
Intermediate Government Bond Fund, Class Y | ![]() | $ | 10,664 | |||
Lehman Intermediate Treasury Bond Index2 | ![]() | $ | 10,747 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704607.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704608.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/25/2002 to 6/30/2006) as compared to the Lehman Intermediate Treasury Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A Shares. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of public obligations of the U.S. Treasury with a remaining maturity between one and 10 years. |
12 First American Funds Annual Report 2006
Table of Contents
Intermediate Government Bond fund continued
Expense Example
As a shareholder of the Intermediate Government Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 996.20 | $ | 3.71 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 996.90 | $ | 2.97 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.38% and -0.31% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 13
Table of Contents
Intermediate Term Bond fund
Investment Objective: current income to the extent consistent with preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Intermediate Term Bond Fund (the “fund”), Class Y shares, returned 0.34% for the fiscal period ended June 30, 2006 (Class A shares returned 0.23% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Government/ Credit Bond Index*, returned 0.34% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Our tactical duration strategy, centered on being defensive – i.e., shorter than the benchmark – to reduce risk in a rising-rate environment, contributed strongly to performance, as did the fund’s positioning to take advantage of the flattening yield curve. The fund’s significant allocation to high-quality structured products – like mortgage-backed, commercial mortgage-backed, and asset-backed securities – paid off, as these sectors performed well, offsetting the fund’s underweights in corporate and government bonds. Our overweight in BBB rated securities brought solid gains at the start of the fiscal period, when these issues enjoyed strong performance.
What strategic moves were made by the fund and why?
The fund maintained a sizeable underweight in corporate bonds because, while corporate earnings growth was strong, the reward for credit risk was not compelling, especially in an environment increasingly characterized by shareholder friendly activity on the part of issuers (leveraged buyouts, share buybacks, etc.). The fund also maintained an overweight in structured securities as a defensive way to maintain income in the portfolio (these securities are higher rated and do not present issuer-specific risks associated with corporate bonds). In anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle, we have begun to increase the fund’s weighting in bonds with maturities ranging from two to five years. We continued to approach the fund’s duration tactically, remaining modestly defensive relative to the index.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Asset-Backed Securities | 30.8 | % | ||
U.S. Government & Agency Securities | 27.4 | |||
Corporate Bonds | 17.4 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 12.8 | |||
U.S. Government Agency Mortgage-Backed Securities | 5.6 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 4.9 | |||
Municipal Bond | 0.2 | |||
Short-Term Investment | 0.1 | |||
Other Assets and Liabilities, Net | 0.8 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 78.9 | % | ||
AA | 4.5 | |||
A | 6.2 | |||
BBB | 10.2 | |||
Non-Rated | 0.2 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
14 First American Funds Annual Report 2006
Table of Contents
Intermediate Term Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 10 years | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (2.03)% | (2.57)% | 3.37% | 5.00% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 0.23% | (0.36)% | 3.84% | 5.23% | ||||||||||||
Class Y | 0.34% | (0.21)% | 4.01% | 5.44% | ||||||||||||
Lehman Intermediate Government/ Credit Bond Index2 | 0.34% | (0.18)% | 4.62% | 5.81% |
Value of $10,000 Investment1 as of June 30, 2006
Intermediate Term Bond Fund, Class A (NAV) | ![]() | $ | 16,105 | |||
Intermediate Term Bond Fund, Class A (POP) | ![]() | $ | 15,750 | |||
Intermediate Term Bond Fund, Class Y | ![]() | $ | 16,427 | |||
Lehman Intermediate Government/ Credit Bond Index2 | ![]() | $ | 16,979 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704609.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704610.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 6/30/2006) as compared to the Lehman Intermediate Government/Credit Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. | |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index of Treasury Securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. In each case with maturities of one to 10 years. |
First American Funds Annual Report 2006 15
Table of Contents
Intermediate Term Bond fund continued
Expense Example
As a shareholder of the Intermediate Term Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 997.70 | $ | 3.71 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 998.50 | $ | 2.97 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.23% and -0.15% for Class A and Class Y, respectively. |
16 First American Funds Annual Report 2006
Table of Contents
Short Term Bond fund
Investment Objective: current income while maintaining a high degree of principal stability
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Short Term Bond Fund (the “fund”) Class Y shares returned 1.87% for the fiscal period ended June 30, 2006 (Class A shares returned 1.75% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman 1-3 Year Government/ Credit Bond Index*, returned 1.79% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
With its emphasis on short-term securities, the fund’s strategy is defensive, seeking to minimize risk to income from rate changes over the long term. Unfortunately, the relentless tightening of monetary policy had a profoundly negative impact on the short end of the yield curve, and the overall returns for the fund were quite modest on an absolute basis. Fund performance benefited from a combination of sector weighting, duration strategy, and yield-curve positioning. The fund’s short duration, reducing risk as interest rates rose, helped performance as the portfolio was strategically defensive amidst the Fed tightening campaign. We generated income by overweighting sectors not included in the fund’s benchmark index; in this space, an overweight to asset-backed securities and commercial mortgage-backed securities proved beneficial, as they outpaced other market sectors during the fiscal period. An overweight to short-term mortgage products also added value.
What strategic moves were made by the fund and why?
The fund maintained a defensive duration – i.e., shorter than the fund’s benchmark – given market-rate levels that seemed inconsistent with both current and expected Fed fund rates. The fund had a significant underweight to Treasuries and agencies because valuations on most short-duration non-government sectors – i.e., mortgage- and asset-backed securities and corporate debt securities – offered more compelling risk/reward opportunities. Our substantial overweight to short asset-backed securities and commercial mortgage-backed securities served as a way to maintain income in the portfolio.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
Asset-Backed Securities | 34.8 | % | ||
U.S. Government Agency Mortgage-Backed Securities | 16.5 | |||
U.S. Government & Agency Securities | 14.5 | |||
Corporate Bonds | 13.8 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 11.7 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 6.8 | |||
Short-Term Investments | 1.6 | |||
Other Assets and Liabilities, Net | 0.3 | |||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 79.9 | % | ||
AA | 5.8 | |||
A | 5.0 | |||
BBB | 8.9 | |||
BB | 0.4 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
First American Funds Annual Report 2006 17
Table of Contents
Short Term Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | ||||||||||||||||
Month | ||||||||||||||||
Period* | 1 year | 5 years | 10 years | |||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||
Class A | (0.55)% | (0.28)% | 2.34% | 4.26% | ||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||
Class A | 1.75% | 2.02% | 2.80% | 4.50% | ||||||||||||
Class Y | 1.87% | 2.07% | 2.96% | 4.60% | ||||||||||||
Lehman 1-3 Year Government/ Credit Bond Index2 | 1.79% | 1.92% | 3.50% | 5.03% |
Value of a $10,000 Investment1 as of June 30, 2006
Short Term Bond Fund, Class A (NAV) | ![]() | $ | 15,284 | |||
Short Term Bond Fund, Class A (POP) | ![]() | $ | 14,937 | |||
Short Term Bond Fund, Class Y | ![]() | $ | 15,429 | |||
Lehman 1-3 Year Government/ Credit Bond Index2 | ![]() | $ | 16,062 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704611.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704612.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 1-3 Year Government/Credit Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* Total returns have not been annualized.
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index of one-to-three-year Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. |
18 First American Funds Annual Report 2006
Table of Contents
Short Term Bond fund continued
Expense Example
As a shareholder of the Short Term Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 1,011.80 | $ | 3.74 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 1,012.50 | $ | 2.99 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | $ | 3.01 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of 1.18% and 1.25% for Class A and Class Y, respectively. |
First American Funds Annual Report 2006 19
Table of Contents
Total Return Bond fund
Investment Objective: high current income consistent with prudent risk to capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American Total Return Bond Fund, Class Y shares, returned 0.02% for the fiscal period ended June 30, 2006 (Class A shares returned -0.17% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned -0.13% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Sustained Fed tightening, driven by robust economic growth and increasing price pressures, caused market interest rates to rise significantly across all maturities last fiscal period. The yield curve continued its flattening trend, becoming inverted in early 2006. Consequently, two key drivers of performance for the period were the fund’s defensive duration posture, adopted to reduce risk as interest rates rose, and its strategic positioning for a flattening yield curve. Emerging markets and high-yield corporate bonds performed well during the period. The fund’s holdings in emerging markets bonds, below investment-grade corporate bonds, and non-U.S. dollar exposure were all significant sources of relative return, with each contributing a similar amount to the fund’s return.
Issue selection, primarily within the mortgage and corporate sectors, also helped the fund’s relative performance. Sector selection within traditional bond market sectors also added value, primarily because of the fund’s overweight in mortgage-backed securities and corresponding underweight to investment-grade corporate bonds.
What strategic moves were made by the fund and why?
While we reduced our emerging-market and high-yield holdings in the middle of the fiscal period, mainly due to high valuations, we increased exposure in the non U.S. dollar sector. Fixed-income valuations are attractive overseas and the dollar is increasingly vulnerable to decline, in light of the peaking of the U.S. tightening cycle and strengthening foreign economies. Following declines in emerging-market equities and bonds late in the fiscal period, we took advantage of improved valuations to add selectively to the fund’s holdings in emerging-market bonds.
During the fiscal period, we moderated the fund’s yield-curve flattening bias, gradually increasing the fund’s weighting in intermediate-term bonds in anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle. We also brought the fund’s duration closer to neutral as the fiscal period ended, after having been defensive for most of the period. Corporate issue selection changes were guided by bottom-up research opportunities and evolving themes related to the maturing of the economic cycle.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
U.S. Government Agency Mortgage-Backed Securities | 30.8 | % | ||
Corporate Bonds | 19.6 | |||
Asset-Backed Securities | 19.3 | |||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 16.5 | |||
U.S. Government & Agency Securities | 7.1 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 6.6 | |||
Municipal Bonds | 0.5 | |||
Short-Term Investments | 3.0 | |||
Other Assets and Liabilities, Net | (3.4 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 77.3 | % | ||
AA | 4.2 | |||
A | 3.1 | |||
BBB | 7.8 | |||
BB | 5.2 | |||
B | 1.7 | |||
Not-Rated | 0.7 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
20 First American Funds Annual Report 2006
Table of Contents
Total Return Bond fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||
Month | ||||||||||||||||||||
Period* | 1 year | 5 years | 2/01/2000 | 9/24/2001 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | (4.40)% | (4.55)% | 4.00% | 5.22% | — | |||||||||||||||
Class B | (5.58)% | (5.92)% | 3.76% | 5.12% | — | |||||||||||||||
Class C | (1.70)% | (2.09)% | 4.09% | 5.10% | — | |||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | (0.17)% | (0.28)% | 4.91% | 5.93% | — | |||||||||||||||
Class B | (0.74)% | (1.13)% | 4.09% | 5.12% | — | |||||||||||||||
Class C | (0.74)% | (1.13)% | 4.09% | 5.10% | — | |||||||||||||||
Class R | (0.44)% | (0.72)% | — | — | 4.68% | |||||||||||||||
Class Y | 0.02% | (0.13)% | 5.15% | 6.17% | — | |||||||||||||||
Lehman Aggregate Bond Index2 | (0.13)% | (0.81)% | 4.97% | 6.26% | 4.37% |
Value of $10,000 Investment1, 3 as of June 30, 2006
Total Return Bond Fund, Class A (NAV) | ![]() | $ | 14,465 | |||
Total Return Bond Fund, Class A (POP) | ![]() | $ | 13,855 | |||
Total Return Bond Fund, Class Y | ![]() | $ | 14,677 | |||
Lehman Aggregate Bond Index2 | ![]() | $ | 14,758 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704613.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704614.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/01/2000 to 6/30/2006) as compared to the Lehman Aggregate Bond Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, 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. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. | |
A significant portion of the Fund’s portfolio may consist of lower-rated debt obligations, which are commonly called “high-yield” securities or “junk bonds.” High-yield securities generally have more volatile prices and carry more risk to principal than investment-grade securities. The Fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices. |
2 | An unmanaged index comprised of the Lehman Government/ Credit Bond Index, the Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed Securities Index. The Lehman Government/ Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Lehman Asset Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans. |
3 | Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures. |
First American Funds Annual Report 2006 21
Table of Contents
Total Return Bond fund continued
Expense Example
As a shareholder of the Total Return Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 992.10 | $ | 4.94 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 988.30 | $ | 8.63 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.12 | $ | 8.75 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 988.30 | $ | 8.63 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.12 | $ | 8.75 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 990.00 | $ | 6.22 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.55 | $ | 6.31 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 993.30 | $ | 3.71 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.00%, 1.75%, 1.75%, 1.25%, and 0.75% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.79%, -1.17%, -1.17%, -1.00%, and -0.67% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
22 First American Funds Annual Report 2006
Table of Contents
U.S. Government Mortgage fund
Investment Objective: high current income to the extent consistent with the preservation of capital
How did the fund perform for the nine-month fiscal period ended June 30, 2006?
The First American U.S. Government Mortgage Fund (the “fund”), Class Y shares returned 0.38% for the fiscal period ended June 30, 2006 (Class A shares returned 0.09% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Mortgage-Backed Securities Index*, returned 0.54% for the same period.
What were the general economic and market conditions during the fiscal period?
Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.
The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.
How did market conditions and investment strategies affect the fund’s performance?
Mortgage-backed security returns were fairly modest this fiscal period. Valuations were expensive at the beginning of the period and massive deleveraging by the government-sponsored enterprises that finance housing combined to drive spreads wider in the second half of 2005, causing mortgage-backed securities to underperform all other investment-grade sectors. The fund did benefit, however, from defensive positioning within the mortgage-backed securities sector as the portfolio was emphasizing seasoned mortgage pools, high-coupon securities, and 15-year mortgage paper. All of these mortgage types are defensive in nature, and they outperformed the overall mortgage-backed market during the period. The fund also carried a shorter-than benchmark duration and a bias toward a flattening Treasury yield curve, both of which helped performance as rates rose and the yield curve flattened. Overweights to non-agency mortgage securities and structured-mortgage securities also added value, as these securities outperformed agency issues.
What strategic moves were made by the fund and why?
The fund lengthened its duration to be more in line with the benchmark as it appears that the Fed is nearing the end of the tightening cycle. Our position within the mortgage-backed securities sector remains defensive, emphasizing seasoned loans, 15-year mortgage securities, and structured mortgage paper, all of which are relatively less susceptible to extension risk (i.e., lengthening in a security’s duration due to the deceleration of prepayments) in a higher rate and slower housing environment. As prepayments slowed due to the rise in rates, the portfolio also emphasized higher-coupon securities to maximize income. The fund had an overweight to non-agency mortgage securities, which trade at yield advantages to agency securities and often have favorable loan characteristics that can improve the return profile of the portfolio.
* | Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects. |
Portfolio Allocation as of June 30, 20061 (% of net assets)
U.S. Government Agency Mortgage-Backed Securities | 99.6 | % | ||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities | 19.4 | |||
Asset-Backed Securities | 4.6 | |||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | 2.0 | |||
Short-Term Investments | 2.6 | |||
Other Assets and Liabilities, Net | (28.2 | ) | ||
100.0 | % |
Credit Quality Distribution as of June 30, 20062 (% of market value)
AAA | 96.2 | % | ||
AA | 3.5 | |||
BBB | 0.3 | |||
100.0 | % |
1 | Portfolio allocations are subject to change and are not recommendations to buy or sell any security. |
2 | Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used. |
First American Funds Annual Report 2006 23
Table of Contents
U.S. Government Mortgage fund continued
Annual Performance1 as of June 30, 2006
Nine- | Since Inception | |||||||||||||||||||
Month | ||||||||||||||||||||
Period* | 1 year | 5 years | 10 years | 9/24/2001 | ||||||||||||||||
Average annual return with sales charge (POP) | ||||||||||||||||||||
Class A | (4.18)% | (4.48)% | 2.93% | 4.47% | — | |||||||||||||||
Class B | (5.21)% | (5.79)% | 2.54% | 4.15% | — | |||||||||||||||
Class C | (1.34)% | (1.88)% | — | — | 2.36% | |||||||||||||||
Average annual return without sales charge (NAV) | ||||||||||||||||||||
Class A | 0.09% | (0.27)% | 3.82% | 4.92% | — | |||||||||||||||
Class B | (0.38)% | (1.02)% | 3.05% | 4.15% | — | |||||||||||||||
Class C | (0.38)% | (0.93)% | — | — | 2.36% | |||||||||||||||
Class R | 0.04% | (0.48)% | 3.71% | 4.82% | — | |||||||||||||||
Class Y | 0.38% | 0.08% | 4.09% | 5.17% | — | |||||||||||||||
Lehman Mortgage-Backed Securities Index2 | 0.54% | 0.40% | 4.65% | 6.13% | 4.08% |
Value of $10,000 Investment 1, 3 as of June 30, 2006
U.S. Government Mortgage Fund, Class A (NAV) | ![]() | $ | 15,526 | |||
U.S. Government Mortgage Fund, Class A (POP) | ![]() | $ | 14,871 | |||
U.S. Government Mortgage Fund, Class Y | ![]() | $ | 15,871 | |||
Lehman Mortgage-Backed Securities Index2 | ![]() | $ | 17,180 | |||
Class A |
![(CLASS A LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704615.gif)
Class Y |
![(CLASS Y LINE GRAPH)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704616.gif)
The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Mortgage-Backed Securities Index2.
The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND. |
* | Total returns have not been annualized. |
1 | Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index 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. |
Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV. | |
Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, 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. | |
On September 24, 2001, the U.S. Government Mortgage Fund became the successor by merger to the Firstar U.S. Government Securities Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar U.S. Government Securities Fund. The Firstar U.S. Government Securities Fund was organized on November 27, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc. | |
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. |
2 | An unmanaged index comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. It is formed by grouping the universe of more than 600,000 individual fixed-rate MBS pools into approximately 3,500 generic aggregates. The aggregates included are priced daily using a matrix pricing routine based on trade price quotations by agency, program, coupon, and degree of seasoning. |
3 | Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures. |
24 First American Funds Annual Report 2006
Table of Contents
U.S. Government Mortgage fund continued
Expense Example
As a shareholder of the U.S. Government Mortgage Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.
Actual Expenses
For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class 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.
Expense Examples
Expenses Paid During | ||||||||||||
Beginning Account | Ending Account | Period1 (1/01/06 to | ||||||||||
Value (1/01/06) | Value (6/30/06) | 6/30/06) | ||||||||||
Class A Actual2 | $ | 1,000.00 | $ | 996.20 | $ | 4.70 | ||||||
Class A Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | ||||||
Class B Actual2 | $ | 1,000.00 | $ | 993.40 | $ | 8.40 | ||||||
Class B Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.36 | $ | 8.50 | ||||||
Class C Actual2 | $ | 1,000.00 | $ | 993.40 | $ | 8.40 | ||||||
Class C Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.36 | $ | 8.50 | ||||||
Class R Actual2 | $ | 1,000.00 | $ | 995.10 | $ | 5.99 | ||||||
Class R Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.79 | $ | 6.06 | ||||||
Class Y Actual2 | $ | 1,000.00 | $ | 998.40 | $ | 3.47 | ||||||
Class Y Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 |
1 | Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). |
2 | Based on the actual returns for the six-month period ended June 30, 2006 of -0.38%, -0.66%, -0.66%, -0.49%, and -0.16% for Class A, Class B, Class C, Class R, and Class Y, respectively. |
First American Funds Annual Report 2006 25
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, including the schedules of investments, of the Core Bond, High Income Bond, Inflation Protected Securities, Intermediate Government Bond, Intermediate Term Bond, Short Term Bond, Total Return Bond, and U.S. Government Mortgage Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2006, and the related statements of operations, changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and the 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 verification by examination of securities held by the custodian as of June 30, 2006 and confirmation of the securities held, 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 audited by us as referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at June 30, 2006, 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/0000950134-06-017502/c07044ernstyo.gif)
Minneapolis, Minnesota
August 11, 2006
26 First American Funds Annual Report 2006
Table of Contents
Schedule of Investments June 30, 2006, all dollars are rounded to thousands (000)
Core Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government Agency Mortgage-Backed Securities – 37.1% | ||||||||
Adjustable Rate (a) – 3.9% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.129%, 05/01/2025, #846757 | $ | 357 | $ | 363 | ||||
5.935%, 04/01/2029, #847190 (b) | 2,821 | 2,866 | ||||||
5.954%, 03/01/2030, #847180 (b) | 4,287 | 4,371 | ||||||
4.887%, 07/01/2030, #847240 (b) | 4,066 | 4,121 | ||||||
5.261%, 06/01/2031, #846984 (b) | 1,580 | 1,608 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.014%, 08/01/2030, #555843 (b) | 9,152 | 9,256 | ||||||
6.210%, 03/01/2031, #545359 | 1,197 | 1,222 | ||||||
5.934%, 09/01/2033, #725553 (b) | 3,316 | 3,324 | ||||||
5.286%, 11/01/2034, #735054 (b) | 12,925 | 12,594 | ||||||
5.000%, 05/01/2035, #357883 (b) | 19,203 | 18,037 | ||||||
4.871%, 09/01/2035, #745168 (b) | 13,417 | 12,976 | ||||||
70,738 | ||||||||
Fixed Rate – 33.2% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
4.000%, 10/01/2010, #M80855 (b) | 11,922 | 11,450 | ||||||
4.500%, 03/01/2018, #P10023 (b) | 3,009 | 2,886 | ||||||
4.500%, 05/01/2018, #P10032 (b) | 6,356 | 6,098 | ||||||
5.000%, 05/01/2018, #E96700 (b) | 11,452 | 11,048 | ||||||
6.500%, 01/01/2028, #G00876 | 1,451 | 1,466 | ||||||
6.500%, 11/01/2028, #C00676 | 2,775 | 2,805 | ||||||
6.500%, 12/01/2028, #C00689 | 1,953 | 1,974 | ||||||
6.500%, 04/01/2029, #C00742 | 1,174 | 1,187 | ||||||
6.500%, 07/01/2031, #A17212 (b) | 5,792 | 5,848 | ||||||
6.000%, 11/01/2033, #A15521 (b) | 4,448 | 4,393 | ||||||
Federal National Mortgage Association Pool | ||||||||
7.750%, 06/01/2008, #001464 | 5 | 5 | ||||||
3.790%, 07/01/2013, #386314 (b) | 25,263 | 22,826 | ||||||
5.500%, 02/01/2014, #440780 (b) | 2,820 | 2,772 | ||||||
7.000%, 02/01/2015, #535206 | 753 | 773 | ||||||
7.000%, 08/01/2016, #591038 (b) | 1,406 | 1,442 | ||||||
5.500%, 12/01/2017, #673010 (b) | 5,257 | 5,170 | ||||||
5.000%, 06/01/2018, #555545 (b) | 8,085 | 7,804 | ||||||
5.000%, 11/01/2018, #750989 (b) | 19,423 | 18,748 | ||||||
4.500%, 01/01/2019, #755666 (b) | 4,625 | 4,382 | ||||||
5.000%, 11/01/2019, #725934 | 3,844 | 3,708 | ||||||
5.500%, 01/01/2020, #735386 (b) | 9,342 | 9,183 | ||||||
5.500%, 06/01/2020, #735792 | 7,911 | 7,777 | ||||||
5.000%, 02/01/2021, #745279 | 25,376 | 24,447 | ||||||
5.000%, 03/01/2021, #845444 | 41,245 | 39,725 | ||||||
6.000%, 10/01/2022, #254513 (b) | 5,144 | 5,125 | ||||||
5.500%, 10/01/2024, #255456 (b) | 13,397 | 13,022 | ||||||
5.500%, 01/01/2025, #255575 (b) | 11,643 | 11,318 | ||||||
5.500%, 02/01/2025, #255628 (b) | 16,411 | 15,952 | ||||||
7.000%, 04/01/2026, #340798 | 552 | 566 | ||||||
7.000%, 05/01/2026, #250551 | 576 | 591 | ||||||
6.500%, 02/01/2029, #252255 | 2,343 | 2,367 | ||||||
6.500%, 12/01/2031, #254169 (b) | 7,214 | 7,254 | ||||||
6.000%, 04/01/2032, #745101 | 13,469 | 13,425 | ||||||
7.000%, 07/01/2032, #254379 | 3,503 | 3,589 | ||||||
7.000%, 07/01/2032, #545813 (b) | 1,534 | 1,572 | ||||||
7.000%, 07/01/2032, #545815 (b) | 956 | 979 | ||||||
6.000%, 09/01/2032, #254447 (b) | 5,794 | 5,724 | ||||||
6.000%, 03/01/2033, #688330 (b) | 9,028 | 8,919 | ||||||
5.500%, 04/01/2033, #694605 (b) | 10,872 | 10,489 | ||||||
6.500%, 05/01/2033, #555798 (b) | 7,569 | 7,638 | ||||||
5.500%, 06/01/2033, #843435 (b) | 7,524 | 7,260 | ||||||
5.500%, 07/01/2033, #709446 (b) | 12,928 | 12,472 | ||||||
5.500%, 07/01/2033, #728667 | 4,931 | 4,757 | ||||||
5.500%, 08/01/2033, #733380 (b) | 12,289 | 11,856 | ||||||
5.000%, 10/01/2033, #741897 (b) | 13,379 | 12,567 | ||||||
5.500%, 10/01/2033, #555800 | 18,589 | 17,933 | ||||||
6.000%, 11/01/2033, #772130 | 1,012 | 999 | ||||||
6.000%, 11/01/2033, #772256 | 1,199 | 1,184 | ||||||
5.500%, 12/01/2033, #756202 (b) | 9,142 | 8,819 | ||||||
6.000%, 12/01/2033, #756200 | 4,655 | 4,595 | ||||||
5.000%, 03/01/2034, #725205 (b) | 8,594 | 8,072 | ||||||
5.000%, 03/01/2034, #725248 (b) | 4,273 | 4,013 | ||||||
5.000%, 03/01/2034, #725250 (b) | 7,637 | 7,174 | ||||||
5.500%, 04/01/2034, #725424 (b) | 11,381 | 10,979 | ||||||
5.500%, 05/01/2034, #357571 (b) | 14,340 | 13,811 | ||||||
5.000%, 06/01/2034, #782909 (b) | 6,184 | 5,799 | ||||||
6.500%, 06/01/2034, #735273 (b) | 11,731 | 11,835 | ||||||
5.500%, 07/01/2034 (c) | 66,625 | 63,981 | ||||||
6.000%, 07/01/2034 (c) | 18,215 | 17,925 | ||||||
5.500%, 08/01/2034, #745563 (c) | 14,111 | 13,791 | ||||||
5.500%, 10/01/2034, #255411 (b) | 2,585 | 2,490 | ||||||
6.000%, 10/01/2034, #781776 | 2,326 | 2,294 | ||||||
6.000%, 09/01/2035, #832711 (b) | 9,255 | 9,116 | ||||||
6.000%, 09/01/2035, #832773 (b) | 6,984 | 6,879 | ||||||
5.500%, 03/01/2036, #870157 | 18,931 | 18,184 | ||||||
6.500%, 04/01/2036, #831377 | 7,116 | 7,154 | ||||||
6.500%, 04/01/2036, #852909 | 7,338 | 7,377 | ||||||
Government National Mortgage Association Pool | ||||||||
4.750%, 08/20/2023, #008259 (a) | 2 | 2 | ||||||
7.500%, 11/15/2030, #537699 (b) | 693 | 724 | ||||||
6.000%, 11/15/2033, #612374 (b) | 8,527 | 8,470 | ||||||
608,959 | ||||||||
Total U.S. Government Agency | ||||||||
Mortgage-Backed Securities | ||||||||
(Cost $700,105) | 679,697 | |||||||
Asset-Backed Securities – 20.2% | ||||||||
Automotive – 2.8% | ||||||||
Harley Davidson Motorcycle Trust Series 2005-4, Class A2 | ||||||||
4.850%, 06/15/2012 | 7,325 | 7,214 | ||||||
Hertz Vehicle Financing Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 (d) | 14,690 | 14,293 | ||||||
Triad Auto Receivables Owner Trust Series 2006-A, Class A3 | ||||||||
4.770%, 01/12/2011 | 11,140 | 10,984 | ||||||
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 18,400 | 18,090 | ||||||
50,581 | ||||||||
Commercial – 10.5% | ||||||||
Banc of America Commercial Mortgage Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 | 17,160 | 17,060 | ||||||
Bank of America Commercial Mortgage Series 2004-5, Class A3 | ||||||||
4.561%, 11/10/2041 | 14,830 | 14,022 | ||||||
Bear Stearns Commercial Mortgage Securities Series 2005-PW10, Class A4 | ||||||||
5.405%, 12/11/2040 | 10,185 | 9,840 | ||||||
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 (d) | 9,225 | 9,052 | ||||||
Series 2005-LP5, Class A2 | ||||||||
4.630%, 05/10/2043 | 14,180 | 13,679 | ||||||
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2 | ||||||||
6.538%, 06/15/2031 | 5,658 | 5,707 | ||||||
GE Capital Commercial Mortgage Corporation Series 2005-C3, Class A2 | ||||||||
4.853%, 07/10/2045 | 11,590 | 11,256 |
First American Funds Annual Report 2006 27
Table of Contents
Schedule of Investments continued
Core Bond Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
GMAC Commercial Mortgage Securities Series 2004-C2, Class A1 | |||||||||
3.896%, 08/10/2038 | $ | 8,735 | $ | 8,487 | |||||
Series 2005-C1, Class A2 | |||||||||
4.471%, 05/10/2043 | 19,200 | 18,418 | |||||||
Greenwich Capital Commercial Funding Series 2003-C1, Class A2 | |||||||||
3.285%, 07/05/2035 | 14,170 | 13,299 | |||||||
J.P. Morgan Chase Commercial Mortgage Securities Series 2005-LDP5, Class A4 | |||||||||
5.345%, 12/15/2044 (a) | 8,635 | 8,261 | |||||||
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2 | |||||||||
3.086%, 05/15/2027 | 19,520 | 18,657 | |||||||
Series 2005-C7, Class A2 | |||||||||
5.103%, 11/15/2030 | 12,790 | 12,486 | |||||||
Nomura Asset Securities Series 1998-D6, Class A1B | |||||||||
6.590%, 03/15/2030 | 12,465 | 12,636 | |||||||
Wachovia Bank Commercial Mortgage Trust Series 2005-C19, Class A5 | |||||||||
4.661%, 05/15/2044 | 21,390 | 20,081 | |||||||
192,941 | |||||||||
Credit Card – 4.1% | |||||||||
American Express Credit Account Series 2004-4, Class C | |||||||||
5.371%, 03/15/2012 (a) (d) | 4,500 | 4,520 | |||||||
Citibank Credit Card Issuance Trust Series 2006-B2, Class B2 | |||||||||
5.150%, 03/07/2011 | 7,775 | 7,664 | |||||||
Series 2006-A4, Class A4 | |||||||||
5.450%, 05/10/2013 | 29,430 | 29,182 | |||||||
MBNA Credit Card Master Note Trust Series 2005-A1, Class A1 | |||||||||
4.200%, 09/15/2010 | 14,285 | 13,968 | |||||||
Series 2003-C6, Class C6 | |||||||||
6.261%, 12/15/2010 (a) | 4,800 | 4,895 | |||||||
Providian Gateway Master Trust Series 2004-DA, Class A | |||||||||
3.350%, 09/15/2011 (d) | 15,310 | 14,917 | |||||||
75,146 | |||||||||
Home Equity – 0.2% | |||||||||
Amresco Residential Security Mortgage Series 1997-3, Class A9 | |||||||||
6.960%, 03/25/2027 | 311 | 311 | |||||||
Countrywide Asset-Backed Certificates Series 2003-SC1, Class M2 | |||||||||
6.581%, 09/25/2023 (a) | 1,443 | 1,455 | |||||||
Residential Asset Securities Series 2004-KS3, Class A2B2 | |||||||||
5.291%, 04/25/2034 (a) | 1,371 | 1,374 | |||||||
Saxon Asset Securities Trust Series 2004-1, Class A | |||||||||
5.351%, 03/25/2035 (a) | 1,338 | 1,338 | |||||||
4,478 | |||||||||
Other – 2.6% | |||||||||
Global Signal Trust Series 2004-2A, Class A | |||||||||
4.232%, 12/15/2014 (d) | 11,480 | 10,976 | |||||||
Series 2006-1, Class C | |||||||||
5.707%, 02/15/2036 (d) | 8,093 | 7,939 | |||||||
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A | |||||||||
4.207%, 07/25/2034 (d) | 514 | 504 | |||||||
Series 2005-1, Class A | |||||||||
4.850%, 01/25/2035 (d) | 1,922 | 1,897 | |||||||
Small Business Administration Series 2005-P10B, Class 1 | |||||||||
4.940%, 08/10/2015 | 10,838 | 10,456 | |||||||
Series 2006-P10A, Class 1 | |||||||||
5.408%, 02/10/2016 | 16,837 | 16,358 | |||||||
48,130 | |||||||||
Total Asset-Backed Securities | |||||||||
(Cost $382,307) | 371,276 | ||||||||
U.S. Government & Agency | |||||||||
Securities (b) – 17.1% | |||||||||
U.S. Agency Debentures – 3.9% | |||||||||
Federal National Mortgage Association | |||||||||
3.875%, 02/15/2010 | 19,000 | 18,021 | |||||||
5.125%, 04/15/2011 | 17,350 | 17,088 | |||||||
6.125%, 03/15/2012 | 9,200 | 9,479 | |||||||
5.250%, 08/01/2012 | 28,285 | 27,636 | |||||||
72,224 | |||||||||
U.S. Treasuries – 13.2% | |||||||||
U.S. Treasury Bonds | |||||||||
9.000%, 11/15/2018 | 25,280 | 33,784 | |||||||
8.750%, 08/15/2020 | 6,300 | 8,437 | |||||||
6.250%, 08/15/2023 | 33,500 | 36,947 | |||||||
7.625%, 02/15/2025 | 6,055 | 7,690 | |||||||
5.500%, 08/15/2028 | 11,850 | 12,175 | |||||||
5.375%, 02/15/2031 | 4,380 | 4,456 | |||||||
4.500%, 02/15/2036 | 13,110 | 11,755 | |||||||
U.S. Treasury Notes | |||||||||
4.000%, 09/30/2007 | 5,790 | 5,704 | |||||||
3.375%, 11/15/2008 | 22,565 | 21,678 | |||||||
4.375%, 11/15/2008 | 14,060 | 13,819 | |||||||
4.500%, 02/28/2011 | 3,460 | 3,374 | |||||||
2.375%, 04/15/2011 | 19,684 | 19,606 | |||||||
4.500%, 02/15/2016 | 45,545 | 43,332 | |||||||
5.125%, 05/15/2016 | 18,270 | 18,249 | |||||||
241,006 | |||||||||
Total U.S. Government & Agency Securities | |||||||||
(Cost $323,156) | 313,230 | ||||||||
Collateralized Mortgage Obligation – | |||||||||
Private Mortgage-Backed | |||||||||
Securities – 12.3% | |||||||||
Adjustable Rate (a) – 6.3% | |||||||||
Bank of America Mortgage Securities Series 2004-G, Class 2A3 | |||||||||
4.232%, 08/25/2034 | 5,739 | 5,701 | |||||||
Citigroup Mortgage Loan Trust Series 2005-7, Class 2A1A | |||||||||
4.862%, 09/25/2035 | 13,247 | 12,837 | |||||||
GMAC Mortgage Corporation Loan Trust Series 2003-AR2, Class 4A1 | |||||||||
4.725%, 12/19/2033 | 12,700 | 12,137 | |||||||
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1 | |||||||||
6.112%, 07/25/2036 | 14,017 | 14,057 | |||||||
Sequoia Mortgage Trust Series 2004-4, Class X1 | |||||||||
0.765%, 05/20/2034 (e) | 118,439 | 866 |
The accompanying notes are an integral part of the financial statements.
28 First American Funds Annual Report 2006
Table of Contents
Core Bond Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Structured Adjustable Rate Mortgage Loan Trust Series 2004-11, Class A | |||||||||
6.623%, 08/25/2034 | $ | 1,931 | $ | 1,936 | |||||
Wachovia Mortgage Loan Trust Series 2005-B, Class 1A1 | |||||||||
4.977%, 10/20/2035 | 10,442 | 10,270 | |||||||
Washington Mutual Series 2004-AR7, Class A6 | |||||||||
3.943%, 07/25/2034 | 12,035 | 11,546 | |||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-D, Class A1 | |||||||||
4.800%, 02/25/2033 | 5,306 | 5,226 | |||||||
Series 2003-O, Class 5A1 | |||||||||
4.812%, 01/25/2034 | 17,634 | 16,904 | |||||||
Series 2004-N, Class A3 | |||||||||
4.098%, 08/25/2034 | 16,045 | 15,832 | |||||||
Series 2004-EE, Class B1 | |||||||||
3.988%, 12/25/2034 | 8,544 | 8,153 | |||||||
115,468 | |||||||||
Fixed Rate – 6.0% | |||||||||
Bank of America Mortgage Securities Series 2003-6, Class 1A30 | |||||||||
4.750%, 08/25/2033 | 7,350 | 7,113 | |||||||
Countrywide Alternative Loan Trust Series 2004-12CB, Class 1A1 | |||||||||
5.000%, 07/25/2019 | 8,095 | 7,808 | |||||||
Series 2004-2CB, Class 1A1 | |||||||||
4.250%, 03/25/2034 | 5,910 | 5,747 | |||||||
Series 2004-24CB, Class 1A1 | |||||||||
6.000%, 11/25/2034 | 6,640 | 6,493 | |||||||
GMAC Mortgage Corporation Loan Trust Series 2004-J5, Class A7 | |||||||||
6.500%, 01/25/2035 | 9,193 | 9,175 | |||||||
GSR Mortgage Loan Trust Series 2004-10F, Class 3A1 | |||||||||
5.500%, 08/25/2019 | 7,774 | 7,627 | |||||||
Master Alternative Loans Trust Series 2005-2, Class 1A3 | |||||||||
6.500%, 03/25/2035 | 4,529 | 4,524 | |||||||
Master Asset Securitization Trust Series 2003-6, Class 3A1 | |||||||||
5.000%, 07/25/2018 | 9,697 | 9,348 | |||||||
Morgan Stanley Mortgage Loan Trust Series 2004-9, Class 1A | |||||||||
6.224%, 11/25/2034 | 8,011 | 7,956 | |||||||
Residential Asset Mortgage Products Series 2003-SL1, Class M1 | |||||||||
7.316%, 04/25/2031 | 8,519 | 8,670 | |||||||
Series 2004-SL4, Class A3 | |||||||||
6.500%, 07/25/2032 | 4,419 | 4,455 | |||||||
Residential Asset Securitization Trust Series 2002-A12, Class 1A1 | |||||||||
5.200%, 11/25/2032 | 95 | 94 | |||||||
Washington Mutual Series 2003-S10, Class A2 | |||||||||
5.000%, 10/25/2018 | 10,804 | 10,510 | |||||||
Series 2004-CB1, Class 1A | |||||||||
5.250%, 06/25/2019 | 11,703 | 11,421 | |||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-14, Class A1 | |||||||||
4.750%, 12/25/2018 | 9,668 | 9,112 | |||||||
Westam Mortgage Financial Series 11, Class A | |||||||||
6.360%, 08/26/2020 | 75 | 75 | |||||||
110,128 | |||||||||
Total Collateralized Mortgage Obligation – | |||||||||
Private Mortgage-Backed Securities | |||||||||
(Cost $231,435) | 227,994 | ||||||||
Corporate Bonds – 11.2% | |||||||||
Banking – 0.7% | |||||||||
First National Bank of Chicago | |||||||||
8.080%, 01/05/2018 | 1,388 | 1,535 | |||||||
J.P. Morgan Chase | |||||||||
5.150%, 10/01/2015 | 5,660 | 5,283 | |||||||
J.P. Morgan Chase XVII | |||||||||
5.850%, 08/01/2035 | 4,300 | 3,800 | |||||||
Shinsei Finance Cayman, | |||||||||
6.418% through 07/20/2016 thereafter variable, 07/20/2048 (b) (d) | 3,000 | 2,818 | |||||||
13,436 | |||||||||
Basic Industry – 1.0% | |||||||||
Celulosa Arauco y Constitucion | |||||||||
5.625%, 04/20/2015 | 3,000 | 2,794 | |||||||
Falconbridge | |||||||||
7.350%, 06/05/2012 | 5,135 | 5,349 | |||||||
Southern Copper | |||||||||
7.500%, 07/27/2035 | 5,655 | 5,399 | |||||||
Teck Cominco Limited | |||||||||
6.125%, 10/01/2035 | 2,975 | 2,663 | |||||||
Vale Overseas | |||||||||
6.250%, 01/11/2016 | 2,485 | 2,367 | |||||||
18,572 | |||||||||
Brokerage – 1.7% | |||||||||
Goldman Sachs Group | |||||||||
5.350%, 01/15/2016 (b) | 14,770 | 13,949 | |||||||
Merrill Lynch | |||||||||
6.050%, 05/16/2016 | 9,170 | 9,109 | |||||||
Morgan Stanley | |||||||||
5.375%, 10/15/2015 (b) | 8,270 | 7,829 | |||||||
30,887 | |||||||||
Capital Goods – 0.2% | |||||||||
Hutchison Whampoa International | |||||||||
7.450%, 11/24/2033 (d) | 3,900 | 4,122 | |||||||
Communications – 1.6% | |||||||||
Comcast | |||||||||
7.050%, 03/15/2033 | 6,900 | 7,000 | |||||||
News America Holdings | |||||||||
7.700%, 10/30/2025 | 4,015 | 4,286 | |||||||
Telecom Italia Capital | |||||||||
4.000%, 11/15/2008 (b) | 5,765 | 5,530 | |||||||
Time Warner Entertainment | |||||||||
8.375%, 07/15/2033 | 7,140 | 8,078 | |||||||
Verizon Global Funding | |||||||||
7.750%, 12/01/2030 | 4,275 | 4,611 | |||||||
29,505 | |||||||||
Consumer Cyclical – 0.4% | |||||||||
DaimlerChrysler | |||||||||
4.875%, 06/15/2010 | 3,735 | 3,571 | |||||||
Duty Free International | |||||||||
7.000%, 01/15/2004 (f) (g) | 2,191 | 438 |
First American Funds Annual Report 2006 29
Table of Contents
Schedule of Investments continued
Core Bond Fund (continued) | |||||||||
DESCRIPTION | PAR | VALUE | |||||||
Harrah’s | |||||||||
5.750%, 10/01/2017 | $ | 3,345 | $ | 3,047 | |||||
7,056 | |||||||||
Consumer Non Cyclical – 0.4% | |||||||||
Kroger | |||||||||
7.250%, 06/01/2009 | 7,000 | 7,246 | |||||||
Electric – 1.4% | |||||||||
Florida Power & Light | |||||||||
5.650%, 02/01/2037 | 4,160 | 3,822 | |||||||
MidAmerican Energy Holdings | |||||||||
5.875%, 10/01/2012 | 8,845 | 8,774 | |||||||
Ohio Power Series K | |||||||||
6.000%, 06/01/2016 | 4,100 | 4,043 | |||||||
Oncor Electric Delivery | |||||||||
7.000%, 05/01/2032 | 5,115 | 5,308 | |||||||
Pacific Gas & Electric | |||||||||
6.050%, 03/01/2034 (b) | 4,650 | 4,389 | |||||||
26,336 | |||||||||
Energy – 1.2% | |||||||||
Gazprom International | |||||||||
7.201%, 02/01/2020 (d) | 5,170 | 5,241 | |||||||
Nexen | |||||||||
5.875%, 03/10/2035 | 4,140 | 3,655 | |||||||
Petro-Canada | |||||||||
5.350%, 07/15/2033 | 3,310 | 2,792 | |||||||
Tengizcheveroil Finance | |||||||||
6.124%, 11/15/2014 (d) | 4,655 | 4,498 | |||||||
XTO Energy | |||||||||
6.100%, 04/01/2036 (b) | 5,430 | 4,915 | |||||||
21,101 | |||||||||
Finance – 0.7% | |||||||||
American General Finance | |||||||||
3.875%, 10/01/2009 | 7,545 | 7,136 | |||||||
ILFC E-Capital Trust II, Callable 12/21/2015 @ 100 | |||||||||
6.250%, 12/21/2065 (a) (d) | 6,885 | 6,505 | |||||||
13,641 | |||||||||
Insurance – 0.2% | |||||||||
Liberty Mutual Group | |||||||||
6.500%, 03/15/2035 (d) | 5,000 | 4,366 | |||||||
Natural Gas – 0.3% | |||||||||
Duke Energy Field Services | |||||||||
7.875%, 08/16/2010 | 4,200 | 4,489 | |||||||
Real Estate Investment Trust – 0.4% | |||||||||
Prologis 2006 | |||||||||
5.750%, 04/01/2016 | 6,835 | 6,589 | |||||||
Sovereign – 0.9% | |||||||||
United Mexican States | |||||||||
5.625%, 01/15/2017 (b) | 17,520 | 16,293 | |||||||
Technology – 0.1% | |||||||||
Chartered Semiconductor | |||||||||
6.375%, 08/03/2015 | 1,715 | 1,637 | |||||||
Total Corporate Bonds | |||||||||
(Cost $216,161) | 205,276 | ||||||||
Collateralized Mortgage Obligation – | |||||||||
U.S. Government Agency | |||||||||
Mortgage-Backed Securities – 3.6% | |||||||||
Fixed Rate – 3.5% | |||||||||
Federal Home Loan Mortgage Corporation Series 6, Class C | |||||||||
9.050%, 06/15/2019 | 35 | 35 | |||||||
Series 162, Class F | |||||||||
7.000%, 05/15/2021 | 142 | 141 | |||||||
Series 188, Class H | |||||||||
7.000%, 09/15/2021 | 333 | 331 | |||||||
Series 1022, Class J | |||||||||
6.000%, 12/15/2020 | 48 | 47 | |||||||
Series 1790, Class A | |||||||||
7.000%, 04/15/2022 | 127 | 129 | |||||||
Series 2763, Class TA | |||||||||
4.000%, 03/15/2011 | 10,402 | 10,049 | |||||||
Series 2901, Class UB | |||||||||
5.000%, 03/15/2033 (b) | 5,000 | 4,624 | |||||||
Series 2910, Class BE | |||||||||
4.500%, 12/15/2019 | 2,077 | 1,868 | |||||||
Series 2987, Class KE | |||||||||
5.000%, 12/15/2034 (b) | 12,850 | 12,227 | |||||||
Federal National Mortgage Association Series 1988-24, Class G | |||||||||
7.000%, 10/25/2018 | 70 | 72 | |||||||
Series 1989-24, Class H | |||||||||
9.000%, 07/25/2019 | 70 | 75 | |||||||
Series 1989-90, Class E | |||||||||
8.700%, 12/25/2019 | 11 | 12 | |||||||
Series 1990-30, Class E | |||||||||
6.500%, 03/25/2020 | 40 | 41 | |||||||
Series 1990-61, Class H | |||||||||
7.000%, 06/25/2020 | 48 | 49 | |||||||
Series 1990-72, Class B | |||||||||
9.000%, 07/25/2020 | 41 | 43 | |||||||
Series 1990-102, Class J | |||||||||
6.500%, 08/25/2020 | 50 | 51 | |||||||
Series 1990-105, Class J | |||||||||
6.500%, 09/25/2020 | 490 | 498 | |||||||
Series 1991-56, Class M | |||||||||
6.750%, 06/25/2021 | 192 | 194 | |||||||
Series 1992-120, Class C | |||||||||
6.500%, 07/25/2022 | 77 | 78 | |||||||
Series 1998-M1, Class A2 | |||||||||
6.250%, 01/25/2008 | 2,494 | 2,499 | |||||||
Series 2005-44, Class PC | |||||||||
5.000%, 11/25/2027 (b) | 18,520 | 17,957 | |||||||
Series 2005-62, Class JE | |||||||||
5.000%, 06/25/2035 (b) | 14,170 | 13,774 | |||||||
64,794 | |||||||||
Z-Bonds (h) – 0.1% | |||||||||
Federal Home Loan Mortgage Corporation Series 1118, Class Z | |||||||||
8.250%, 07/15/2021 | 74 | 74 | |||||||
Federal National Mortgage Association Series 1991-134, Class Z | |||||||||
7.000%, 10/25/2021 | 348 | 354 | |||||||
Series 1996-35, Class Z | |||||||||
7.000%, 07/25/2026 | 1,522 | 1,556 | |||||||
1,984 | |||||||||
Total Collateralized Mortgage Obligation – | |||||||||
U.S. Government Agency | |||||||||
Mortgage-Backed Securities | |||||||||
(Cost $68,937) | 66,778 | ||||||||
The accompanying notes are an integral part of the financial statements.
30 First American Funds Annual Report 2006
Table of Contents
Core Bond Fund (continued) | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
Short-Term Investments – 3.0% | |||||||||
Money Market Fund – 2.8% | |||||||||
First American Prime Obligations Fund, Class Z (i) | 52,047,169 | $ | 52,047 | ||||||
U.S. Treasury Obligations – 0.2% | |||||||||
U.S. Treasury Bills | |||||||||
4.629%, 09/07/2006 (j) | $ | 1,180 | 1,170 | ||||||
4.808%, 11/02/2006 | 1,500 | 1,475 | |||||||
2,645 | |||||||||
Total Short-Term Investments | |||||||||
(Cost $54,692) | 54,692 | ||||||||
Investments Purchased with Proceeds | |||||||||
from Securities Lending (k) – 44.6% | |||||||||
(Cost $817,952) | $ | 817,952 | |||||||
Total Investments – 149.1% | |||||||||
(Cost $2,794,745) | 2,734,494 | ||||||||
Other Assets and Liabilities, Net – (49.1)% | (900,508 | ) | |||||||
Total Net Assets – 100.0% | $ | 1,833,986 | |||||||
(a) | Variable Rate Security – The rate shown is the rate in effect at June 30, 2006. |
(b) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $804,157 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(c) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $95,795 or 5.2% of total net assets. See note 2 in Notes to Financial Statements. |
(d) | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $91,644 or 5.0% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate in effect as of June 30, 2006. |
(f) | Security is fair valued and illiquid. As of June 30, 2006, the value of this investment was $438 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(g) | Security in default at June 30, 2006. |
(h) | Z-Bonds – Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate shown represents current yield based upon the cost basis and estimated future cash flows. |
(i) | 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. |
(j) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(k) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | ||||||||||||||||
Contracts | Notional | |||||||||||||||
Purchased | Contract | Settlement | Unrealized | |||||||||||||
Description | (Sold) | Value | Month | Appreciation | ||||||||||||
U.S. Treasury 2 Year Note Futures | (413 | ) | $ | (83,749 | ) | September 2006 | $ | 295 | ||||||||
U.S. Treasury 5 Year Note Futures | (636 | ) | (65,766 | ) | September 2006 | 8 | ||||||||||
U.S. Treasury 10 Year Note Futures | (823 | ) | (86,299 | ) | September 2006 | 402 | ||||||||||
U.S. Treasury Long Bond Futures | 162 | 17,278 | September 2006 | 116 | ||||||||||||
$ | 821 | |||||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Unrealized | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | Appreciation | ||||||||||||||||
J.P. Morgan | Dow Jones CDX IG Hvol6 Index | Sell | 0.75% | 6/20/2011 | $ | 22,000 | $ | 159 | ||||||||||||||
UBS | Dow Jones CDX IG Hvol6 Index | Sell | 0.75% | 6/20/2011 | 50,500 | 215 | ||||||||||||||||
$ | 374 | |||||||||||||||||||||
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||
Floating | Receive | |||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Unrealized | |||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | Depreciation | ||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.427% | 11/10/2008 | $ | 158,000 | $ | (662 | ) | |||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.660% | 6/19/2016 | 36,000 | (193 | ) | |||||||||||||||
$ | (855 | ) | ||||||||||||||||||||
First American Funds Annual Report 2006 31
Table of Contents
Schedule of Investments continued
High Income Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
High Yield Corporate Bonds – 91.1% | ||||||||
Basic Industry – 11.6% | ||||||||
AK Steel, Callable 06/15/2007 @ 103.88 | ||||||||
7.750%, 06/15/2012 | $ | 1,000 | $ | 980 | ||||
Allegheny Technologies | ||||||||
8.375%, 12/15/2011 | 1,000 | 1,032 | ||||||
Basell AF SCAl, Callable 08/15/2010 @ 104.19 | ||||||||
8.375%, 08/15/2015 (a) (b) (c) | 1,250 | 1,202 | ||||||
Cosipa Commercial | ||||||||
8.250%, 06/14/2016 (a) (b) | 850 | 854 | ||||||
Crystal U.S. Holdings, | ||||||||
Series B, 0.000% through 10/01/2009 | ||||||||
thereafter 10.500%, 10/01/2014 | 2,000 | 1,565 | ||||||
Domtar | ||||||||
7.125%, 08/15/2015 (a) (c) | 1,500 | 1,305 | ||||||
Drummond, Callable 02/15/2011 @ 103.69 | ||||||||
7.375%, 02/15/2016 (b) | 1,000 | 927 | ||||||
Equistar Chemicals, Callable 05/01/2007 @ 105.31 | ||||||||
10.625%, 05/01/2011 (c) | 2,000 | 2,148 | ||||||
Geon | ||||||||
7.500%, 12/15/2015 | 1,000 | 906 | ||||||
Georgia-Pacific | ||||||||
8.125%, 05/15/2011 | 1,000 | 995 | ||||||
Hexion, Callable 07/15/2009 @ 104.50 | ||||||||
9.000%, 07/15/2014 | 1,000 | 1,013 | ||||||
IMC Global Series B | ||||||||
10.875%, 06/01/2008 | 1,000 | 1,065 | ||||||
Ineos Group Holdings, Callable 02/15/2011 @ 104.25 | ||||||||
8.500%, 02/15/2016 (a) (b) (c) | 1,000 | 936 | ||||||
International Wire Group, Callable 10/15/2007 @ 105.38 | ||||||||
10.000%, 10/15/2011 | 546 | 551 | ||||||
James River Coal, Callable 06/01/2009 @ 104.69 | ||||||||
9.375%, 06/01/2012 | 1,500 | 1,500 | ||||||
LPG International | ||||||||
7.250%, 12/20/2015 (a) | 1,000 | 920 | ||||||
Massey Energy, Callable 12/15/2009 @ 103.44 | ||||||||
6.875%, 12/15/2013 (b) | 1,000 | 930 | ||||||
Mercer International, Callable 02/15/2009 @ 104.63 | ||||||||
9.250%, 02/15/2013 (a) (c) | 1,500 | 1,335 | ||||||
Neenah Paper, Callable 11/15/2009 @ 103.69 | ||||||||
7.375%, 11/15/2014 | 1,500 | 1,380 | ||||||
Newark Group, Callable 03/15/2009 @ 104.88 | ||||||||
9.750%, 03/15/2014 | 1,300 | 1,203 | ||||||
Rhodia | ||||||||
10.250%, 06/01/2010 (a) | 1,000 | 1,068 | ||||||
Ryerson, Callable 12/15/2008 @ 104.13 | ||||||||
8.250%, 12/15/2011 | 1,000 | 988 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 (a) | 1,000 | 955 | ||||||
Stone Container, Callable 07/01/2007 @ 104.19 | ||||||||
8.375%, 07/01/2012 (c) | 1,000 | 945 | ||||||
Vedanta Resources | ||||||||
6.625%, 02/22/2010 (a) (b) | 1,000 | 955 | ||||||
Witco | ||||||||
6.875%, 02/01/2026 | 1,500 | 1,335 | ||||||
28,993 | ||||||||
Brokerage – 0.6% | ||||||||
E*Trade Financial, Callable 06/15/2008 @ 104 | ||||||||
8.000%, 06/15/2011 | 1,500 | 1,530 | ||||||
Building Materials – 0.2% | ||||||||
Ply Gem Industries, Callable 02/15/2008 @ 104.50 | ||||||||
9.000%, 02/15/2012 | 500 | 455 | ||||||
Capital Goods – 6.9% | ||||||||
Allied Waste North America, | ||||||||
Series B | ||||||||
5.750%, 02/15/2011 | 1,000 | 932 | ||||||
Allied Waste North America, Callable 02/15/2009 @ 103.06 | ||||||||
6.125%, 02/15/2014 (c) | 1,000 | 900 | ||||||
Callable 05/15/2011 @ 103.56 | ||||||||
7.125%, 05/15/2016 (b) (c) | 1,000 | 942 | ||||||
Bombardier | ||||||||
6.750%, 05/01/2012 (a) (b) | 1,000 | 920 | ||||||
Case New Holland | ||||||||
7.250%, 01/15/2016 | 1,000 | 945 | ||||||
Callable 08/01/2007 @ 104.62 | ||||||||
9.250%, 08/01/2011 | 1,000 | 1,052 | ||||||
Chart Industries, Callable 10/15/2010 @ 104.56 | ||||||||
9.125%, 10/15/2015 (b) | 1,850 | 1,887 | ||||||
Crown Cork & Seal | ||||||||
7.375%, 12/15/2026 | 1,000 | 877 | ||||||
DRS Technologies, Callable 02/01/2011 @ 103.81 | ||||||||
7.625%, 02/01/2018 (c) | 1,000 | 995 | ||||||
Greif Brothers, Callable 08/01/2007 @ 104.44 | ||||||||
8.875%, 08/01/2012 | 700 | 737 | ||||||
L-3 Communications, Callable 01/15/2010 @ 102.94 | ||||||||
5.875%, 01/15/2015 | 1,000 | 933 | ||||||
Mid America Waste Systems | ||||||||
12.250%, 02/15/2020 (d) (e) (f) (g) | 250 | — | ||||||
Millar Western Forest, Callable 11/15/2008 @ 103.88 | ||||||||
7.750%, 11/15/2013 (a) | 1,000 | 760 | ||||||
Nortek, Callable 09/01/2009 @ 104.25 | ||||||||
8.500%, 09/01/2014 | 500 | 484 | ||||||
Owens-Brockway Glass Container, Callable until 02/15/2007 @ 102.219 | ||||||||
8.875%, 02/15/2009 | 1,000 | 1,030 | ||||||
Owens-Illinois | ||||||||
8.100%, 05/15/2007 (c) | 1,000 | 1,005 | ||||||
Sequa | ||||||||
9.000%, 08/01/2009 | 1,000 | 1,055 | ||||||
Sino Forest | ||||||||
9.125%, 08/17/2011 (a) (b) (c) | 1,000 | 1,030 |
The accompanying notes are an integral part of the financial statements.
32 First American Funds Annual Report 2006
Table of Contents
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
United Rentals of North America, Callable 02/15/2009 @ 103.50 | ||||||||
7.000%, 02/15/2014 (c) | $ | 1,000 | $ | 914 | ||||
17,398 | ||||||||
Communications – 13.0% | ||||||||
Adelphia Communications | ||||||||
7.875%, 05/01/2009 (d) (g) | 2,000 | 1,070 | ||||||
Alamosa Delaware, Callable 07/31/2007 @ 105.50 | ||||||||
11.000%, 07/31/2010 | 650 | 712 | ||||||
C & M Finance, Callable 02/01/2011 @ 104.05 | ||||||||
8.100%, 02/01/2016 (a) (b) | 1,000 | 955 | ||||||
CCH, Callable 09/15/2008 @ 105.12 | ||||||||
10.250%, 09/15/2010 | 1,000 | 1,002 | ||||||
CCO Holdings, Callable 12/15/2006 @ 102 | ||||||||
9.454%, 12/15/2010 (h) | 1,000 | 1,020 | ||||||
Charter Communications Holdings | ||||||||
8.000%, 04/30/2012 (b) | 2,000 | 1,990 | ||||||
Citizens Communications | ||||||||
9.250%, 05/15/2011 | 1,000 | 1,075 | ||||||
9.000%, 08/15/2031 (c) | 500 | 506 | ||||||
CSC Holdings | ||||||||
7.875%, 02/15/2018 | 500 | 499 | ||||||
Series B | ||||||||
7.625%, 04/01/2011 | 1,000 | 1,000 | ||||||
Dex Media West, Callable 08/15/2008 @ 104.94 | ||||||||
9.875%, 08/15/2013 | 500 | 542 | ||||||
Echostar | ||||||||
6.625%, 10/01/2014 | 2,000 | 1,880 | ||||||
Excelcomindo Finance, Callable 01/18/2010 @ 103.56 | ||||||||
7.125%, 01/18/2013 (a) (b) | 1,000 | 951 | ||||||
Horizon PCS, Callable 07/15/2008 @ 105.69 | ||||||||
11.375%, 07/15/2012 | 900 | 1,011 | ||||||
Houghton Mifflin, Callable 10/15/2008 @ 105.75, | ||||||||
0.000% through 10/15/200 | ||||||||
thereafter 11.500%, 10/15/2013 | 1,000 | 825 | ||||||
Iesy Repository, Callable 02/15/2010 @ 105.19 | ||||||||
10.375%, 02/15/2015 (a) (b) | 500 | 477 | ||||||
Insight Midwest, Callable until 10/31/2006 @ 105.25 | ||||||||
10.500%, 11/01/2010 | 500 | 521 | ||||||
Intelsat Bermuda, Callable until 07/14/2006 @ 102 | ||||||||
9.614%, 01/15/2012 (a) (h) | 1,000 | 1,010 | ||||||
Interpublic Group | ||||||||
7.250%, 08/15/2011 | 1,000 | 908 | ||||||
Level 3 Financing, Callable 03/15/2010 @ 106.12 | ||||||||
12.250%, 03/15/2013 (b) | 500 | 531 | ||||||
Nextel Partners, Callable 07/01/2007 @ 104.06 | ||||||||
8.125%, 07/01/2011 | 1,000 | 1,046 | ||||||
Panamsat, Callable 08/15/2009 @ 104.50 | ||||||||
9.000%, 08/15/2014 | 649 | 659 | ||||||
Callable 06/15/2011 @ 104.50 | ||||||||
9.000%, 06/15/2016 (b) | 1,000 | 1,015 | ||||||
Quebecor Media, Callable 03/15/2011 @ 103.88 | ||||||||
7.750%, 03/15/2016 (a) (b) | 1,000 | 980 | ||||||
Qwest | ||||||||
8.875%, 03/15/2012 (h) | 2,000 | 2,110 | ||||||
Qwest Capital Funding | ||||||||
7.000%, 08/03/2009 | 2,000 | 1,965 | ||||||
Qwest, Callable 08/31/2006 @ 102.35 | ||||||||
7.500%, 06/15/2023 | 1,000 | 938 | ||||||
R.H. Donnelley Finance, Callable 01/15/2011 @ 104.44 | ||||||||
8.875%, 01/15/2016 (b) | 1,500 | 1,513 | ||||||
Rogers Wireless | ||||||||
6.375%, 03/01/2014 (a) | 1,000 | 953 | ||||||
Sirius Satellite Radio, Callable 09/01/2009 @ 104.81 | ||||||||
9.625%, 08/01/2013 (c) | 500 | 469 | ||||||
Time Warner Telecommunications Holdings, Callable 02/15/2009 @ 104.62 | ||||||||
9.250%, 02/15/2014 (c) | 1,000 | 1,025 | ||||||
Vimpelcom | ||||||||
8.250%, 05/23/2016 (a) (b) | 1,500 | 1,438 | ||||||
32,596 | ||||||||
Consumer Cyclical – 19.9% | ||||||||
Affiliated Computer Services | ||||||||
4.700%, 06/01/2010 | 1,500 | 1,380 | ||||||
AMC Entertainment, Callable 03/01/2009 @ 104 | ||||||||
8.000%, 03/01/2014 (c) | 1,000 | 916 | ||||||
Arvinmeritor | ||||||||
8.750%, 03/01/2012 (c) | 1,000 | 975 | ||||||
Autonation, Callable 04/15/2009 @ 105.25 | ||||||||
7.000%, 04/15/2014 (b) | 1,500 | 1,477 | ||||||
Avis Budget Car Rental, Callable 05/15/2010 @ 103.81 | ||||||||
7.625%, 05/15/2014 (b) | 500 | 485 | ||||||
Avis Budget Car Rental, Callable 05/15/2011 @ 103.88 | ||||||||
7.750%, 05/15/2016 (b) | 500 | 481 | ||||||
Beazer Homes USA, Callable 04/15/2007 @ 104.19 | ||||||||
8.375%, 04/15/2012 | 1,000 | 1,000 | ||||||
Blockbuster, Callable 09/01/2008 @ 104.50 | ||||||||
9.000%, 09/01/2012 (c) | 1,000 | 932 | ||||||
Bon-Ton Department Stores, Callable 03/15/2010 @ 105.13 | ||||||||
10.250%, 03/15/2014 (b) (c) | 1,000 | 927 | ||||||
Brookstone, Callable 10/15/2009 @ 106 | ||||||||
12.000%, 10/15/2012 (b) (c) | 500 | 440 | ||||||
Chaoda Modern Agriculture | ||||||||
7.750%, 02/08/2010 (a) (b) (c) | 1,200 | 1,182 | ||||||
Domino’s, Series B, Callable 07/01/2007 @ 104.13 | ||||||||
8.250%, 07/01/2011 | 547 | 568 |
First American Funds Annual Report 2006 33
Table of Contents
Schedule of Investments continued
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Ford Motor | ||||||||
7.450%, 07/16/2031 (c) | $ | 1,000 | $ | 722 | ||||
Ford Motor Credit | ||||||||
5.800%, 01/12/2009 | 3,000 | 2,741 | ||||||
7.000%, 10/01/2013 (c) | 1,000 | 861 | ||||||
French Lick Resorts & Casino, Callable 04/15/2010 @ 105.38 | ||||||||
10.750%, 04/15/2014 (b) | 1,250 | 1,197 | ||||||
Galaxy Entertainment, Callable 12/15/2009 @ 104.94 | ||||||||
9.875%, 12/15/2012 (a) (b) (c) | 500 | 520 | ||||||
General Motors | ||||||||
6.375%, 05/01/2008 (c) | 1,000 | 952 | ||||||
8.250%, 07/15/2023 | 1,000 | 788 | ||||||
General Motors Acceptance | ||||||||
5.625%, 05/15/2009 | 2,000 | 1,902 | ||||||
6.750%, 12/01/2014 (c) | 2,000 | 1,858 | ||||||
8.000%, 11/01/2031 (c) | 1,000 | 961 | ||||||
Glenoit, Callable until 04/14/2007 @ 100 | ||||||||
11.000%, 04/15/2007 (d) (e) (f) (g) | 100 | — | ||||||
Goodyear Tire & Rubber | ||||||||
7.857%, 08/15/2011 (c) | 500 | 464 | ||||||
GSC Holdings, Callable 10/01/2009 @ 104 | ||||||||
8.000%, 10/01/2012 (c) | 1,000 | 1,000 | ||||||
IMAX, Callable 12/01/2007 @ 104.81 | ||||||||
9.625%, 12/01/2010 (a) | 1,000 | 1,025 | ||||||
K Hovnanian Enterprises | ||||||||
6.250%, 01/15/2016 | 1,250 | 1,084 | ||||||
7.500%, 05/15/2016 | 500 | 464 | ||||||
Landrys Restaurants, Callable 12/15/2009 @ 103.75 | ||||||||
7.500%, 12/15/2014 | 1,000 | 917 | ||||||
Lear Series B | ||||||||
8.110%, 05/15/2009 (c) | 500 | 487 | ||||||
Levi Strauss & Co., Callable 01/15/2008 @ 104.88 | ||||||||
9.750%, 01/15/2015 | 1,000 | 1,000 | ||||||
Linens ’N Things, Callable 01/15/2008 @ 102 | ||||||||
10.345%, 01/15/2014 (b) (c) (h) | 1,000 | 947 | ||||||
Lippo Karwaci Finance, Callable 03/09/2009 @ 104.44 | ||||||||
8.875%, 03/09/2011 (a) | 1,000 | 968 | ||||||
M/ I Homes | ||||||||
6.875%, 04/01/2012 | 1,000 | 865 | ||||||
Majestic Star, Callable 10/15/2008 @ 104.88 | ||||||||
9.750%, 01/15/2011 (b) (c) | 1,000 | 1,003 | ||||||
MGM Mirage | ||||||||
8.375%, 02/01/2011 | 2,000 | 2,050 | ||||||
6.875%, 04/01/2016 (b) | 1,000 | 934 | ||||||
Mohegan Tribal Gaming, Callable 02/15/2010 @ 103.44 | ||||||||
6.875%, 02/15/2015 | 750 | 707 | ||||||
Neiman Marcus Group, Callable 10/15/2010 @ 105.19 | ||||||||
10.375%, 10/15/2015 (b) (c) | 1,000 | 1,063 | ||||||
NPC, Callable 05/01/2010 @ 104.75 | ||||||||
9.500%, 05/01/2014 (b) | 750 | 726 | ||||||
Oxford Industries, Callable 06/01/2007 @ 104.44 | ||||||||
8.875%, 06/01/2011 | 1,055 | 1,055 | ||||||
Rite Aid, Callable 02/15/2007 @ 104.75 | ||||||||
9.500%, 02/15/2011 | 1,500 | 1,556 | ||||||
Russell, Callable 08/31/2006 @ 104.62 | ||||||||
9.250%, 05/01/2010 | 500 | 523 | ||||||
Service Corporation International | ||||||||
7.700%, 04/15/2009 | 1,000 | 1,005 | ||||||
Six Flags, Callable 04/15/2008 @ 104.88 | ||||||||
9.750%, 04/15/2013 (c) | 1,000 | 919 | ||||||
Standard Pacific | ||||||||
7.000%, 08/15/2015 (c) | 1,000 | 888 | ||||||
Tenneco Automotive, Callable 11/15/2009 @ 104.31 | ||||||||
8.625%, 11/15/2014 (c) | 1,000 | 998 | ||||||
Trump Entertainment Resorts, Callable 06/01/2010 @ 104.25 | ||||||||
8.500%, 06/01/2015 (c) | 1,000 | 961 | ||||||
Visteon | ||||||||
7.000%, 03/10/2014 | 500 | 408 | ||||||
Warnaco, Callable 06/15/2008 @ 104.44 | ||||||||
8.875%, 06/15/2013 | 1,150 | 1,167 | ||||||
WCI Communities, Callable 05/01/2007 @ 104.56 | ||||||||
9.125%, 05/01/2012 | 500 | 469 | ||||||
Wynn Las Vegas, Callable 12/01/2009 @ 103.31 | ||||||||
6.625%, 12/01/2014 (c) | 1,000 | 943 | ||||||
49,861 | ||||||||
Consumer Non Cyclical – 6.6% | ||||||||
Delhaize America | ||||||||
9.000%, 04/15/2031 | 1,000 | 1,097 | ||||||
Dole Foods, | ||||||||
Callable 03/15/2007 @ 104.44 | ||||||||
8.875%, 03/15/2011 | 356 | 334 | ||||||
HCA | ||||||||
5.750%, 03/15/2014 | 1,000 | 894 | ||||||
6.500%, 02/15/2016 (c) | 850 | 786 | ||||||
HCA Columbia Healthcare | ||||||||
8.750%, 09/01/2010 | 2,000 | 2,109 | ||||||
Healthsouth, Callable 06/15/2011 @ 105.38 | ||||||||
10.750%, 06/15/2016 (b) | 1,750 | 1,715 | ||||||
Iasis Healthcare Capital, Callable 06/15/2009 @ 104.38 | ||||||||
8.750%, 06/15/2014 | 1,000 | 980 | ||||||
National Mentor Holdings, Callable 07/01/2010 @ 105.62 | ||||||||
11.250%, 07/01/2014 (b) | 500 | 509 | ||||||
Reynolds American | ||||||||
6.500%, 07/15/2010 (b) | 1,000 | 967 | ||||||
7.625%, 06/01/2016 (b) | 500 | 489 | ||||||
Stater Brothers Holdings, Callable 06/15/2008 @ 104.06 | ||||||||
8.125%, 06/15/2012 | 1,000 | 987 | ||||||
Swift & Co., Callable 10/01/2006 @ 106.25 | ||||||||
12.500%, 01/01/2010 | 750 | 746 | ||||||
Tenet Healthcare | ||||||||
9.500%, 02/01/2015 (b) | 2,000 | 1,965 |
The accompanying notes are an integral part of the financial statements.
34 First American Funds Annual Report 2006
Table of Contents
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Triad Hospitals, Callable 11/15/2008 @ 103.50 | ||||||||
7.000%, 11/15/2013 | $ | 1,000 | $ | 972 | ||||
U.S. Oncology, Callable 08/15/2008 @ 104.50 | ||||||||
9.000%, 08/15/2012 | 1,000 | 1,040 | ||||||
Vanguard Health Holdings II, Callable 10/01/2009 @ 104.50 | ||||||||
9.000%, 10/01/2014 | 1,000 | 998 | ||||||
16,588 | ||||||||
Electric – 7.9% | ||||||||
AES | ||||||||
9.500%, 06/01/2009 | 2,000 | 2,120 | ||||||
AES Red Oak Series B | ||||||||
9.200%, 11/30/2029 | 1,000 | 1,080 | ||||||
Aquila | ||||||||
14.875%, 07/01/2012 | 1,000 | 1,323 | ||||||
CMS Energy | ||||||||
8.500%, 04/15/2011 | 2,000 | 2,085 | ||||||
Dynegy-Roseton Danskamme Series B | ||||||||
7.670%, 11/08/2016 | 2,000 | 1,995 | ||||||
Edison Mission Energy | ||||||||
7.500%, 06/15/2013 (b) | 500 | 490 | ||||||
Mirant Americas Generation | ||||||||
9.125%, 05/01/2031 (c) | 1,500 | 1,455 | ||||||
Mission Energy Holdings | ||||||||
13.500%, 07/15/2008 | 2,750 | 3,066 | ||||||
NRG Energy, Callable 02/01/2011 @ 103.69 | ||||||||
7.375%, 02/01/2016 | 1,000 | 975 | ||||||
Reliant Energy, Callable 07/15/2008 @ 104.75 | ||||||||
9.500%, 07/15/2013 | 750 | 754 | ||||||
Sierra Pacific Resources, Callable 03/15/2009 @ 104.31 | ||||||||
8.625%, 03/15/2014 | 1,500 | 1,589 | ||||||
TXU | ||||||||
4.800%, 11/15/2009 | 1,000 | 951 | ||||||
5.550%, 11/15/2014 | 1,000 | 907 | ||||||
Utilicorp Canada Finance | ||||||||
7.750%, 06/15/2011 (a) | 1,000 | 1,035 | ||||||
19,825 | ||||||||
Energy – 6.9% | ||||||||
Allis-Chalmers Energy, Callable 01/15/2010 @ 104.50 | ||||||||
9.000%, 01/15/2014 (b) | 1,500 | 1,500 | ||||||
Aventine Renewable Energy, Callable 12/15/2006 @ 103 | ||||||||
10.910%, 12/15/2011 (b) | 1,000 | 1,054 | ||||||
Baytex Energy, Callable 07/15/2007 @ 104.81 | ||||||||
9.625%, 07/15/2010 (a) | 1,250 | 1,291 | ||||||
Bluewater Finance, Callable 02/15/2007 @ 105.13 | ||||||||
10.250%, 02/15/2012 (a) | 1,000 | 1,012 | ||||||
Chesapeake Energy, Callable 06/15/2009 @ 103.75 | ||||||||
7.500%, 06/15/2014 | 2,000 | 1,995 | ||||||
Callable 08/15/2009 @ 103.50 | ||||||||
7.000%, 08/15/2014 | 1,000 | 967 | ||||||
El Paso Production, Callable 06/01/2008 @ 103.88 | ||||||||
7.750%, 06/01/2013 | 1,000 | 1,007 | ||||||
Encore Acquisition, Callable 04/15/2009 @ 103.13 | ||||||||
6.250%, 04/15/2014 | 1,000 | 920 | ||||||
Harvest Operations, Callable 10/15/2008 @ 103.94 | ||||||||
7.875%, 10/15/2011 (a) | 1,250 | 1,188 | ||||||
Range Resources, Callable 07/15/2008 @ 103.69 | ||||||||
7.375%, 07/15/2013 | 1,000 | 993 | ||||||
Tesoro, Callable 11/01/2010 @ 103.31 | ||||||||
6.625%, 11/01/2015 (b) | 2,000 | 1,895 | ||||||
Verasun Energy, Callable 12/15/2009 @ 104.94 | ||||||||
9.875%, 12/15/2012 (b) | 1,500 | 1,583 | ||||||
Whiting Petroleum | ||||||||
7.000%, 02/01/2014 | 1,000 | 945 | ||||||
Callable 05/01/2009 @ 103.63 | ||||||||
7.250%, 05/01/2013 | 950 | 910 | ||||||
17,260 | ||||||||
Finance – 0.6% | ||||||||
Finova Group | ||||||||
7.500%, 11/15/2009 | 510 | 150 | ||||||
Gazprombank | ||||||||
6.500%, 09/23/2015 | 1,500 | 1,376 | ||||||
1,526 | ||||||||
Insurance – 1.3% | ||||||||
Fairfax Financial Holdings, Callable 07/15/2008 @ 100 | ||||||||
5.000%, 07/15/2023 (a) (c) | 1,000 | 879 | ||||||
Ohio Casualty | ||||||||
7.300%, 06/15/2014 | 1,000 | 1,011 | ||||||
Unumprovident Finance | ||||||||
6.850%, 11/15/2015 (a) (b) | 1,500 | 1,475 | ||||||
3,365 | ||||||||
Miscellaneous – 2.7% | ||||||||
Dow Jones Series 5-T2 | ||||||||
7.250%, 12/29/2010 (b) | 6,829 | 6,705 | ||||||
Natural Gas – 3.7% | ||||||||
El Paso | ||||||||
6.375%, 02/01/2009 (b) | 1,000 | 982 | ||||||
7.750%, 01/15/2032 (c) | 1,000 | 974 | ||||||
Semgroup, Callable 11/15/2010 @ 104.38 | ||||||||
8.750%, 11/15/2015 (b) | 1,000 | 995 | ||||||
Targa Resources, Callable 11/01/2009 @ 104.25 | ||||||||
8.500%, 11/01/2013 (b) | 1,000 | 965 | ||||||
Tennessee Gas Pipeline | ||||||||
7.500%, 04/01/2017 (c) | 1,500 | 1,501 | ||||||
Williams | ||||||||
6.375%, 10/01/2010 (b) | 1,000 | 975 | ||||||
7.750%, 06/15/2031 (c) | 1,000 | 985 | ||||||
Williams Partners | ||||||||
7.500%, 06/15/2011 (b) (c) | 2,000 | 2,005 | ||||||
9,382 | ||||||||
First American Funds Annual Report 2006 35
Table of Contents
Schedule of Investments continued
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Sovereigns (a)– 2.3% | ||||||||
Federal Republic of Brazil | ||||||||
10.250%, 06/17/2013 | $ | 350 | $ | 415 | ||||
Callable 08/17/2015 @ 100 | ||||||||
11.000%, 08/17/2040 | 650 | 806 | ||||||
Republic of Indonesia | ||||||||
6.875%, 03/09/2017 (b) | 1,000 | 974 | ||||||
Republic of Panama | ||||||||
7.125%, 01/29/2026 | 1,000 | 965 | ||||||
Republic of Turkey | ||||||||
11.875%, 01/15/2030 (c) | 500 | 683 | ||||||
Republic of Uruguay | ||||||||
8.000%, 11/18/2022 | 1,000 | 957 | ||||||
Republic of Venezuela | ||||||||
9.250%, 09/15/2027 (c) | 800 | 944 | ||||||
5,744 | ||||||||
Technology – 3.1% | ||||||||
Amkor Technologies, Callable 05/15/2008 @ 103.88 | ||||||||
7.750%, 05/15/2013 | 1,000 | 905 | ||||||
Avago Technologies, Callable 12/01/2009 @ 105.06 | ||||||||
10.125%, 12/01/2013 (a) (b) | 500 | 526 | ||||||
Avnet | ||||||||
9.750%, 02/15/2008 | 1,000 | 1,054 | ||||||
Celestica, Callable 07/01/2008 @ 103.94 | ||||||||
7.875%, 07/01/2011 (a) | 1,000 | 982 | ||||||
Freescale Semiconductor, Callable 07/15/2008 @ 103.44 | ||||||||
6.875%, 07/15/2011 (c) | 1,000 | 1,005 | ||||||
Hynix Semiconductor, Callable 07/01/2009 @ 105.25 | ||||||||
9.875%, 07/01/2012 (a) (b) (c) | 500 | 534 | ||||||
Magnachip Semiconductor, Callable 12/15/2009 @ 104 | ||||||||
8.000%, 12/15/2014 (a) (c) | 1,000 | 830 | ||||||
Sungard Data Systems, Callable 08/15/2009 @ 104.56 | ||||||||
9.125%, 08/15/2013 (b) | 1,000 | 1,038 | ||||||
Xerox | ||||||||
7.200%, 04/01/2016 | 1,000 | 1,003 | ||||||
7,877 | ||||||||
Transportation – 3.8% | ||||||||
American Airlines Series 2001-1 | ||||||||
7.379%, 11/23/2017 | 1,020 | 923 | ||||||
Continental Airlines Series 2001-1, Class B | ||||||||
7.033%, 12/15/2012 | 388 | 378 | ||||||
Series RJ03 | ||||||||
7.875%, 01/02/2020 | 852 | 830 | ||||||
Series 99-2 | ||||||||
7.566%, 09/15/2021 | 1,718 | 1,673 | ||||||
Delta Air Lines | ||||||||
7.900%, 12/15/2009 (d) | 1,000 | 282 | ||||||
Series 2000-1 | ||||||||
7.920%, 05/18/2012 (d) | 1,000 | 930 | ||||||
Hertz, Callable 01/01/2010 @ 104.44 | ||||||||
8.875%, 01/01/2014 (b) | 1,750 | 1,794 | ||||||
Progress Rail Services, Callable 04/01/2008 @ 107.75 | ||||||||
7.750%, 04/01/2012 (b) | 500 | 540 | ||||||
United Airlines Series 2000-2 | ||||||||
7.811%, 04/01/2011 (d) (g) | 1,964 | 2,047 | ||||||
9,397 | ||||||||
Total High Yield Corporate Bonds (Cost $233,627) | 228,502 | |||||||
Closed-End Funds – 1.9% | ||||||||
Aberdeen Asia-Pacific Income Fund (c) | 185,000 | 1,105 | ||||||
Eaton Vance Floating-Rate Income Trust | 90,000 | 1,631 | ||||||
Evergreen Managed Income Fund | 60,000 | 971 | ||||||
Pioneer Floating Rate Trust (c) | 60,000 | 1,126 | ||||||
Total Mutual Funds (Cost $4,810) | 4,833 | |||||||
Asset-Backed Securities – 1.5% | ||||||||
Commercial – 1.5% | ||||||||
GMAC Commercial Mortgage Securities Series 2003-C3, Class A2 | ||||||||
4.223%, 04/10/2040 | $ | 4,000 | 3,844 | |||||
Manufactured Housing – 0.0% | ||||||||
Green Tree Financial Series 1998-1, Class A4 | ||||||||
6.040%, 11/01/2029 (f) | 11 | 11 | ||||||
Total Asset-Backed Securities (Cost $4,032) | 3,855 | |||||||
Preferred Stocks – 1.0% | ||||||||
Pegasus Communications, Fractional Shares (f) (g) | 15,109 | — | ||||||
Freeport-McMoran Copper & Gold | ||||||||
5.500%, 12/31/2049 | 500 | 626 | ||||||
Homebanc Series A Callable 03/31/2011 @ 25 | 15,000 | 377 | ||||||
iStar Financial Series G Callable 12/19/2008 @ 25 | 20,000 | 492 | ||||||
NRG Energy, Convertible until 03/16/2009 | 2,000 | 494 | ||||||
Rural Cellular Series B Callable until 05/14/2007 @ 1,014.22 (PIK) | 500 | 605 | ||||||
Total Preferred Stocks (Cost $2,607) | 2,594 | |||||||
High Grade Corporate Bonds – 0.7% | ||||||||
Basic Industry – 0.7% | ||||||||
Glencore Funding | ||||||||
6.000%, 04/15/2014 (b) (c) | $ | 1,000 | 913 | |||||
Vale Overseas Limited | ||||||||
8.250%, 01/17/2034 (a) | 750 | 809 | ||||||
Total High Grade Corporate Bonds (Cost $1,774) | 1,722 | |||||||
Common Stocks – 0.5% | ||||||||
Communications – 0.0% | ||||||||
Sullivan Broadcast Holdings, Escrow Shares (e) (f) (g) | 400 | — | ||||||
Energy – 0.3% | ||||||||
Canetic Resources Trust (a) (c) | 35,000 | 728 | ||||||
Financials – 0.2% | ||||||||
iStar Financial | 10,000 | 378 | ||||||
Total Common Stocks (Cost $1,129) | 1,106 | |||||||
The accompanying notes are an integral part of the financial statements.
36 First American Funds Annual Report 2006
Table of Contents
High Income Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Short-Term Investments – 0.6% | ||||||||
Money Market Fund – 0.6% | ||||||||
First American Prime Obligations Fund, Class Z (i) | 1,250,858 | $ | 1,251 | |||||
U.S. Treasury Obligations – 0.0% | ||||||||
U.S. Treasury Bill (j) | ||||||||
4.629%, 09/07/2006 | $105 | 104 | ||||||
Total Short-Term Investments (Cost $1,355) | 1,355 | |||||||
Investments Purchased with Proceeds from Securities Lending (k) – 18.6% | ||||||||
(Cost $46,723) | 46,723 | |||||||
Total Investments – 115.9% (Cost $296,057) | 290,690 | |||||||
Other Assets and Liabilities, Net – (15.9)% | (39,801 | ) | ||||||
Total Net Assets – 100.0% | $ | 250,889 | ||||||
(a) | Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $39,732 which represents 15.8% of total net assets. |
(b) | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $66,435 or 26.5% of total net assets. See note 2 in Notes to Financial Statements. |
(c) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $45,881 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(d) | Security in default at June 30, 2006. |
(e) | Security is fair valued. As of June 30, 2006, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(f) | Security is illiquid. As of June 30, 2006, the fair value of these investments was $11 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(g) | Non-income producing security |
(h) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(i) | 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. |
(j) | Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(k) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements. |
PIK – | Payment-in-kind interest is generally paid by issuing additional shares or par of the security rather than paying cash. |
Schedule of Open Futures Contracts
Number of | ||||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||||
U.S. Treasury 2 Year Note Futures | 27 | $ | 5,475 | September 2006 | $ | (22 | ) | |||||||||
U.S. Treasury 5 Year Note Futures | 120 | 12,409 | September 2006 | (36 | ) | |||||||||||
U.S. Treasury 10 Year Note Futures | (191 | ) | (20,028 | ) | September 2006 | 84 | ||||||||||
U.S. Treasury Long Bond Futures | 33 | 3,520 | September 2006 | 12 | ||||||||||||
$ | 38 | |||||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Unrealized | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | Depreciation | ||||||||||||||||
Citigroup | Dow Jones CDX | |||||||||||||||||||||
EM5 Index | Sell | 1.350% | 6/20/2011 | $ | 4,000 | $ | (8 | ) | ||||||||||||||
First American Funds Annual Report 2006 37
Table of Contents
Schedule of Investments continued
Inflation Protected Securities Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government & Agency Securities – 91.2% | ||||||||
Inflation Protected U.S. Treasuries (a) – 91.2% | ||||||||
U.S. Treasury Bonds | ||||||||
2.375%, 01/15/2025 | $ | 26,717 | $ | 26,003 | ||||
2.000%, 01/15/2026 (b) | 9,870 | 9,037 | ||||||
3.625%, 04/15/2028 (b) | 20,115 | 23,868 | ||||||
3.875%, 04/15/2029 (b) | 15,470 | 19,142 | ||||||
U.S. Treasury Notes | ||||||||
3.375%, 01/15/2007 | 7,120 | 7,139 | ||||||
3.625%, 01/15/2008 (b) | 24,502 | 24,923 | ||||||
3.875%, 01/15/2009 (b) | 22,355 | 23,155 | ||||||
4.250%, 01/15/2010 (b) | 8,621 | 9,158 | ||||||
0.875%, 04/15/2010 | 26,052 | 24,575 | ||||||
3.500%, 01/15/2011 | 10,735 | 11,229 | ||||||
2.375%, 04/15/2011 | 16,492 | 16,427 | ||||||
3.000%, 07/15/2012 | 12,660 | 13,037 | ||||||
1.875%, 07/15/2013 | 11,900 | 11,432 | ||||||
2.000%, 01/15/2014 | 12,837 | 12,391 | ||||||
2.000%, 07/15/2014 (b) | 17,446 | 16,801 | ||||||
1.625%, 01/15/2015 (b) | 19,649 | 18,317 | ||||||
1.875%, 07/15/2015 | 12,531 | 11,890 | ||||||
2.000%, 01/15/2016 (b) | 17,457 | 16,671 | ||||||
Total U.S. Government & Agency Securities (Cost $309,056) | 295,195 | |||||||
Corporate Bonds – 3.1% | ||||||||
Banking – 0.7% | ||||||||
SLM Series MTN, Class A | ||||||||
4.643%, 02/01/2010 (c) | 2,400 | 2,296 | ||||||
Basic Industry – 0.3% | ||||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 950 | 907 | ||||||
Foreign Agencies – 0.6% | ||||||||
KFW Series MTN | ||||||||
5.213%, 03/03/2008 (c) | 1,900 | 1,879 | ||||||
Sovereigns (d) – 1.5% | ||||||||
Federal Republic of Brazil Callable 08/17/2015 @ 100 | ||||||||
11.000%, 08/17/2040 | 1,000 | 1,240 | ||||||
Republic of Philippines | ||||||||
9.500%, 02/02/2030 | 800 | 916 | ||||||
Republic of Turkey | ||||||||
11.875%, 01/15/2030 | 700 | 956 | ||||||
Republic of Venezuela | ||||||||
9.250%, 09/15/2027 (b) | 1,650 | 1,947 | ||||||
5,059 | ||||||||
Total Corporate Bonds (Cost $10,306) | 10,141 | |||||||
Asset-Backed Securities – 2.9% | ||||||||
Commercial – 2.4% | ||||||||
Banc of America Commercial Mortgage Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 | 4,590 | 4,563 | ||||||
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2 | ||||||||
6.538%, 06/15/2031 | 278 | 280 | ||||||
GMAC Commercial Mortgage Securities Series 2003-C3, Class A2 | ||||||||
4.223%, 04/10/2040 | 2,000 | 1,922 | ||||||
GS Mortgage Securities II Series 2003-C1, Class A2A | ||||||||
3.590%, 01/10/2040 | 500 | 486 | ||||||
Nomura Asset Securities Series 1998-D6, Class A1B | ||||||||
6.590%, 03/15/2030 | 500 | 507 | ||||||
7,758 | ||||||||
Other – 0.5% | ||||||||
Global Signal Trust Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 (e) | 1,330 | 1,305 | ||||||
GRP/ AG Real Estate Asset Trust Series 2005-1, Class A | ||||||||
4.850%, 01/25/2035 (e) | 238 | 235 | ||||||
1,540 | ||||||||
Total Asset-Backed Securities | ||||||||
(Cost $9,545) | 9,298 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 0.3% | ||||||||
Fixed Rate – 0.3% | ||||||||
Federal Home Loan Mortgage Corporation Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 363 | 350 | ||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
4.000%, 10/01/2010, #M80855 (b) | 765 | 735 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities | ||||||||
(Cost $1,141) | 1,085 | |||||||
Municipal Bond – 0.3% | ||||||||
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B, Callable 09/01/2010 @ 100 | ||||||||
6.950%, 09/01/2016 | ||||||||
(Cost $1,000) | 1,000 | 1,004 | ||||||
Short-Term Investments – 1.5% | ||||||||
Money Market Fund – 1.2% | ||||||||
First American Prime Obligations Fund, Class Z (f) | 3,949,236 | 3,949 | ||||||
U.S. Treasury Obligation – 0.3% | ||||||||
U.S. Treasury Bill | ||||||||
4.629%, 09/07/2006 (g) | $ | 780 | 773 | |||||
Total Short-Term Investments (Cost $4,722) | 4,722 | |||||||
Investments Purchased with Proceeds from Securities Lending (h) – 48.8% | ||||||||
(Cost $157,853) | 157,853 | |||||||
Total Investments – 148.1% (Cost $493,623) | 479,298 | |||||||
Other Assets and Liabilities, Net – (48.1)% | (155,726 | ) | ||||||
Total Net Assets – 100.0% | $ | 323,572 | ||||||
(a) | U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount. |
(b) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $155,556 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(c) | Variable rate security – The rate shown is the rate in effect as of June 30, 2006. |
The accompanying notes are an integral part of the financial statements.
38 First American Funds Annual Report 2006
Table of Contents
Inflation Protected Securities Fund (concluded)
(d) | Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $5,059 which represents 1.5% of total net assets. |
(e) | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $1,540 or 0.5% of total net assets. See note 2 in Notes to Financial Statements. |
(f) | 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. |
(g) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(h) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | ||||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||||
Australian Dollar Currency Futures | 38 | $ | 2,823 | September 2006 | $ | 26 | ||||||||||
Canadian Dollar Currency Futures | 104 | 9,330 | September 2006 | (43 | ) | |||||||||||
Euro-Bund Futures | 34 | 5,015 | September 2006 | (26 | ) | |||||||||||
Euro Currency Futures | 41 | 6,586 | September 2006 | 94 | ||||||||||||
Japan 10 Year Bond Futures | (8 | ) | (9,203 | ) | September 2006 | 21 | ||||||||||
Japanese Yen Currency Futures | 87 | 9,605 | September 2006 | 51 | ||||||||||||
Swiss Franc Currency Futures | 39 | 4,017 | September 2006 | 35 | ||||||||||||
U.S. Treasury 2 Year Note Futures | (357 | ) | (72,393 | ) | September 2006 | 257 | ||||||||||
U.S. Treasury 5 Year Note Futures | (103 | ) | (10,651 | ) | September 2006 | 59 | ||||||||||
U.S. Treasury 10 Year Note Futures | (2 | ) | (210 | ) | September 2006 | (2 | ) | |||||||||
U.S. Treasury Long Bond Futures | 124 | 13,225 | September 2006 | (36 | ) | |||||||||||
$ | 436 | |||||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Unrealized | |||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | Depreciation | ||||||||
UBS | Dow Jones CDX | |||||||||||||
NA HY6 Index | Sell | 3.450% | 6/20/2011 | $3,000 | $(33 | ) |
Interest Rate Swap Agreements
Pay/ | ||||||||||||||
Receive | ||||||||||||||
Floating | Floating | Fixed | Expiration | Notional | Unrealized | |||||||||
Counterparty | Rate Index | Rate | Rate | Date | Amount | Depreciation | ||||||||
Citigroup | 3-Month LIBOR | Pay | 5.427% | 11/10/2008 | $26,500 | $ | (111 | ) | ||||||
Citigroup | 3-Month LIBOR | Pay | 5.660% | 6/19/2016 | 6,000 | (29 | ) | |||||||
UBS | 3-Month LIBOR | Pay | 5.138% | 3/06/2008 | 45,000 | (346 | ) | |||||||
$ | (486 | ) | ||||||||||||
Intermediate Government Bond Fund | |||||||||
DESCRIPTION | PAR/SHARES | VALUE | |||||||
U.S. Government & Agency Securities – 99.5% | |||||||||
U.S. Agency Debentures – 58.8% | |||||||||
Federal Farm Credit Bank | |||||||||
3.250%, 06/15/2007 | $ | 1,490 | $ | 1,459 | |||||
2.625%, 09/17/2007 | 2,000 | 1,934 | |||||||
3.000%, 12/17/2007 | 1,805 | 1,746 | |||||||
4.125%, 07/17/2009 | 1,100 | 1,060 | |||||||
5.750%, 01/18/2011 | 1,800 | 1,821 | |||||||
4.875%, 02/18/2011 | 1,600 | 1,561 | |||||||
Federal Home Loan Bank | |||||||||
2.875%, 02/15/2007 | 1,350 | 1,328 | |||||||
4.430%, 04/07/2008 | 2,000 | 1,965 | |||||||
4.250%, 05/16/2008 | 1,600 | 1,566 | |||||||
4.100%, 06/13/2008 | 1,590 | 1,550 | |||||||
5.625%, 06/13/2016 | 900 | 889 | |||||||
Tennessee Valley Authority | |||||||||
5.375%, 11/13/2008 | 2,455 | 2,450 | |||||||
5.625%, 01/18/2011 | 3,450 | 3,459 | |||||||
6.790%, 05/23/2012 | 3,175 | 3,373 | |||||||
26,161 | |||||||||
U.S. Treasuries – 40.7% | |||||||||
U.S. Treasury Bond (STRIPS) | |||||||||
0.000%, 11/15/2011 (a) | 1,670 | 1,638 | |||||||
U.S. Treasury Bonds | |||||||||
11.750%, 11/15/2014 | 1,575 | 1,894 | |||||||
9.125%, 05/15/2018 | 805 | 1,078 | |||||||
9.000%, 11/15/2018 | 1,075 | 1,437 | |||||||
8.125%, 08/15/2019 | 600 | 760 | |||||||
U.S. Treasury Notes | |||||||||
3.375%, 11/15/2008 | 140 | 134 | |||||||
3.000%, 02/15/2009 | 2,345 | 2,223 | |||||||
3.625%, 07/15/2009 | 1,060 | 1,016 | |||||||
3.875%, 05/15/2010 | 1,305 | 1,249 | |||||||
3.625%, 06/15/2010 | 1,800 | 1,706 | |||||||
3.875%, 09/15/2010 | 270 | 258 | |||||||
4.375%, 12/15/2010 | 2,495 | 2,423 | |||||||
2.375%, 04/15/2011 | 736 | 733 | |||||||
4.500%, 11/15/2015 | 1,595 | 1,519 | |||||||
18,068 | |||||||||
Total U.S. Government & Agency Securities | |||||||||
(Cost $45,525) | 44,229 | ||||||||
Short-Term Investment – 0.5% | |||||||||
First American U.S. Treasury Money Market Fund, Class Z (b) | |||||||||
(Cost $235) | 234,785 | 235 | |||||||
Total Investments – 100.0% | |||||||||
(Cost $45,760) | 44,464 | ||||||||
Other Assets and Liabilities, Net – 0.0% | 6 | ||||||||
Total Net Assets – 100.0% | $ | 44,470 | |||||||
(a) | Principal Only – Represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The zero coupon rate represents the lack of interest as part of payments received. |
(b) | 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. |
STRIPS – Separate Trading of Registered Interest and Principal Securities.
First American Funds Annual Report 2006 39
Table of Contents
Schedule of Investments continued
Intermediate Term Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Asset-Backed Securities – 30.8% | ||||||||
Automotive – 5.4% | ||||||||
Harley Davidson Motorcycle Trust Series 2005-4, Class A2 | ||||||||
4.850%, 06/15/2012 | $ | 4,240 | $ | 4,176 | ||||
Hertz Vehicle Financing Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 (a) | 8,425 | 8,197 | ||||||
Honda Auto Receivables Owner Trust Series 2005-5, Class A4 | ||||||||
4.690%, 02/15/2011 | 9,895 | 9,697 | ||||||
Series 2005-6, Class A4 | ||||||||
4.930%, 03/18/2011 | 7,040 | 6,921 | ||||||
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 10,940 | 10,755 | ||||||
Wachovia Auto Owner Trust Series 2005-B, Class A4 | ||||||||
4.840%, 04/20/2011 | 10,960 | 10,774 | ||||||
50,520 | ||||||||
Commercial – 14.3% | ||||||||
Banc of America Commercial Mortgage Series 2004-4, Class A3 | ||||||||
4.128%, 07/10/2042 | 8,715 | 8,337 | ||||||
Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 | 8,710 | 8,659 | ||||||
Citigroup/ Deutsche Bank Commercial Mortgage Series 2006-CD2, Class A2 | ||||||||
5.408%, 01/15/2046 | 20,100 | 19,790 | ||||||
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 (a) | 5,040 | 4,944 | ||||||
Series 2005-LP5, Class A2 | ||||||||
4.630%, 05/10/2043 | 7,345 | 7,086 | ||||||
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2 | ||||||||
6.538%, 06/15/2031 | 3,923 | 3,957 | ||||||
GE Capital Commercial Mortgage Corporation Series 2004-C3, Class A2 | ||||||||
4.433%, 07/10/2039 | 11,305 | 10,939 | ||||||
GMAC Commercial Mortgage Securities Series 2004-C2, Class A1 | ||||||||
3.896%, 08/10/2038 | 6,039 | 5,868 | ||||||
Series 2005-C1, Class A2 | ||||||||
4.471%, 05/10/2043 | 10,475 | 10,048 | ||||||
Greenwich Capital Commercial Funding Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 5,000 | 4,693 | ||||||
GS Mortgage Securities II Series 2004-GG2, Class A1 | ||||||||
3.109%, 08/10/2038 | 2,096 | 2,086 | ||||||
Series 2003-C1, Class A2A | ||||||||
3.590%, 01/10/2040 | 13,840 | 13,445 | ||||||
JP Morgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class A3 | ||||||||
5.208%, 12/15/2044 (b) | 10,510 | 10,183 | ||||||
Nomura Asset Securities Series 1998-D6, Class A1B | ||||||||
6.590%, 03/15/2030 | 11,675 | 11,835 | ||||||
Wachovia Bank Commercial Mortgage Trust Series 2005-C19, Class A2 | ||||||||
4.516%, 05/15/2044 | 12,533 | 11,964 | ||||||
133,834 | ||||||||
Credit Card – 6.6% | ||||||||
Chase Issuance Trust Series 2005-A10, Class A10 | ||||||||
4.650%, 12/15/2012 | 18,300 | 17,682 | ||||||
Citibank Credit Card Issuance Trust Series 2004-A4, Class A4 | ||||||||
3.200%, 08/24/2009 | 3,000 | 2,919 | ||||||
Series 2006-B2, Class B2 | ||||||||
5.150%, 03/07/2011 | 4,495 | 4,431 | ||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 15,275 | 15,146 | ||||||
MBNA Credit Card Master Note Trust Series 2003-A1, Class A1 | ||||||||
3.300%, 07/15/2010 | 12,560 | 12,126 | ||||||
Providian Gateway Master Trust Series 2004-DA, Class A | ||||||||
3.350%, 09/15/2011 (a) | 10,355 | 10,089 | ||||||
62,393 | ||||||||
Home Equity – 0.4% | ||||||||
Amresco Residential Security Mortgage Series 1997-3, Class A9 | ||||||||
6.960%, 03/25/2027 | 213 | 212 | ||||||
Contimortgage Home Equity Loan Trust Series 1997-2, Class A9 | ||||||||
7.090%, 04/15/2028 | 260 | 258 | ||||||
Residential Funding Mortgage Securities Series 2004-HI2, Class A3 | ||||||||
4.270%, 11/25/2016 | 2,005 | 1,994 | ||||||
Saxon Asset Securities Trust Series 2004-1, Class A | ||||||||
5.351%, 03/25/2035 (b) | 1,064 | 1,064 | ||||||
3,528 | ||||||||
Manufactured Housing – 1.1% | ||||||||
Green Tree Financial Series 1996-9, Class A5 | ||||||||
7.200%, 01/15/2028 | 216 | 220 | ||||||
Origen Manufactured Housing Series 2005-A, Class A2 | ||||||||
4.490%, 05/15/2018 | 10,095 | 9,833 | ||||||
10,053 | ||||||||
Other – 3.0% | ||||||||
Global Signal Trust Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 (a) | 7,390 | 7,066 | ||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 (a) | 4,420 | 4,336 | ||||||
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A | ||||||||
4.207%, 07/25/2034 (a) | 257 | 252 | ||||||
Series 2005-1, Class A | ||||||||
4.850%, 01/25/2035 (a) | 1,198 | 1,182 |
The accompanying notes are an integral part of the financial statements.
40 First American Funds Annual Report 2006
Table of Contents
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Small Business Administration Series 2005-P10B, Class 1 | ||||||||
4.940%, 08/10/2015 | $ | 6,464 | $ | 6,236 | ||||
Series 2006-P10A, Class 1 | ||||||||
5.408%, 02/10/2016 | 9,442 | 9,174 | ||||||
28,246 | ||||||||
Total Asset-Backed Securities (Cost $296,551) | 288,574 | |||||||
U.S. Government & Agency Securities – 27.4% | ||||||||
U.S. Agency Debentures (c) – 16.4% | ||||||||
Federal Home Loan Bank | ||||||||
4.430%, 04/07/2008 | 24,000 | 23,579 | ||||||
Federal Home Loan Mortgage Corporation | ||||||||
4.250%, 06/23/2008 | 11,800 | 11,534 | ||||||
Callable 08/04/2006 @ 100 | ||||||||
4.500%, 08/04/2008 | 11,420 | 11,205 | ||||||
Federal National Mortgage Association Callable 08/25/2006 @ 100 | ||||||||
4.750%, 08/25/2008 | 11,345 | 11,182 | ||||||
Callable until 08/25/2008 @ 100 | ||||||||
3.875%, 11/17/2008 | 13,000 | 12,531 | ||||||
7.250%, 01/15/2010 | 11,170 | 11,804 | ||||||
3.875%, 02/15/2010 | 12,260 | 11,628 | ||||||
4.500%, 02/15/2011 | 18,385 | 17,678 | ||||||
5.125%, 04/15/2011 | 20,600 | 20,289 | ||||||
6.125%, 03/15/2012 | 7,020 | 7,233 | ||||||
5.250%, 08/01/2012 | 15,225 | 14,876 | ||||||
153,539 | ||||||||
U.S. Treasuries (c) – 11.0% | ||||||||
U.S. Treasury Bonds | ||||||||
9.125%, 05/15/2018 | 18,175 | 24,339 | ||||||
9.000%, 11/15/2018 | 25,860 | 34,560 | ||||||
8.750%, 05/15/2020 | 7,630 | 10,193 | ||||||
U.S. Treasury Notes | ||||||||
4.250%, 01/15/2011 | 4,900 | 4,731 | ||||||
4.500%, 02/28/2011 | 13,850 | 13,505 | ||||||
2.375%, 04/15/2011 | 15,208 | 15,148 | ||||||
4.500%, 02/15/2016 | 1,250 | 1,189 | ||||||
103,665 | ||||||||
Total U.S. Government & Agency Securities (Cost $264,204) | 257,204 | |||||||
Corporate Bonds – 17.4% | ||||||||
Banking – 1.0% | ||||||||
Credit Suisse First Boston | ||||||||
3.875%, 01/15/2009 | 6,270 | 6,014 | ||||||
J.P. Morgan Chase | ||||||||
5.150%, 10/01/2015 | 3,290 | 3,071 | ||||||
9,085 | ||||||||
Basic Industry – 1.0% | ||||||||
Celulosa Arauco Constitucion | ||||||||
5.625%, 04/20/2015 | 2,000 | 1,863 | ||||||
Falconbridge | ||||||||
7.350%, 06/05/2012 | 3,290 | 3,427 | ||||||
Teck Cominco | ||||||||
5.375%, 10/01/2015 | 2,810 | 2,617 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 1,525 | 1,452 | ||||||
9,359 | ||||||||
Brokerage – 2.1% | ||||||||
Goldman Sachs Group | ||||||||
5.350%, 01/15/2016 | 9,685 | 9,147 | ||||||
Merrill Lynch | ||||||||
6.050%, 05/16/2016 | 4,695 | 4,664 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 | 6,235 | 5,902 | ||||||
19,713 | ||||||||
Capital Goods – 0.3% | ||||||||
Hutchison Whampoa International | ||||||||
6.250%, 01/24/2014 (a) | 2,680 | 2,669 | ||||||
Communications – 1.6% | ||||||||
Deutsche Telecom | ||||||||
8.500%, 06/15/2010 | 3,690 | 3,962 | ||||||
Telecom Italia Capital | ||||||||
4.000%, 11/15/2008 (c) | 3,335 | 3,199 | ||||||
Verizon Global Funding | ||||||||
7.250%, 12/01/2010 (c) | 3,750 | 3,927 | ||||||
6.875%, 06/15/2012 (c) | 3,925 | 4,071 | ||||||
15,159 | ||||||||
Consumer Cyclicals – 1.7% | ||||||||
CBS | ||||||||
5.625%, 08/15/2012 (c) | 3,320 | 3,244 | ||||||
DaimlerChrysler | ||||||||
6.500%, 11/15/2013 | 2,230 | 2,229 | ||||||
Harrah’s | ||||||||
5.625%, 06/01/2015 (c) | 3,535 | 3,270 | ||||||
Mohawk Industries | ||||||||
5.750%, 01/15/2011 | 3,935 | 3,864 | ||||||
Sabre Holdings | ||||||||
6.350%, 03/15/2016 | 3,880 | 3,629 | ||||||
16,236 | ||||||||
Consumer Non Cyclical – 0.4% | ||||||||
Kroger | ||||||||
7.450%, 03/01/2008 | 4,000 | 4,098 | ||||||
Electric – 2.4% | ||||||||
DTE Energy | ||||||||
7.050%, 06/01/2011 | 4,600 | 4,779 | ||||||
MidAmerican Energy Holdings | ||||||||
3.500%, 05/15/2008 | 4,600 | 4,413 | ||||||
National Rural Utilities | ||||||||
5.750%, 08/28/2009 | 3,850 | 3,856 | ||||||
Ohio Power Series K | ||||||||
6.000%, 06/01/2016 | 2,100 | 2,071 | ||||||
Oncor Electric Delivery | ||||||||
6.375%, 01/15/2015 | 3,140 | 3,147 | ||||||
Pacific Gas & Electric | ||||||||
4.200%, 03/01/2011 | 2,065 | 1,931 | ||||||
Southern California Edison | ||||||||
5.000%, 01/15/2014 | 2,000 | 1,890 | ||||||
22,087 | ||||||||
Energy – 0.7% | ||||||||
Gazprom International | ||||||||
7.201%, 02/01/2020 (a) | 3,500 | 3,548 | ||||||
Tengizcheveroil Finance | ||||||||
6.124%, 11/15/2014 (a) | 3,095 | 2,991 | ||||||
6,539 | ||||||||
Finance – 0.4% | ||||||||
American General Finance | ||||||||
3.875%, 10/01/2009 | 4,345 | 4,109 | ||||||
First American Funds Annual Report 2006 41
Table of Contents
Schedule of Investments continued
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Industrial Other – 0.5% | ||||||||
Johnson Controls | ||||||||
5.250%, 01/15/2011 | $ | 4,720 | $ | 4,600 | ||||
Insurance – 0.4% | ||||||||
Liberty Mutual Group | ||||||||
5.750%, 03/15/2014 (a) | 4,340 | 4,077 | ||||||
Miscellaneous – 1.3% | ||||||||
Core Investment Grade Trust | ||||||||
4.659%, 11/30/2007 | 12,712 | 12,506 | ||||||
Natural Gas – 0.7% | ||||||||
Duke Energy Field Services | ||||||||
7.875%, 08/16/2010 | 6,005 | 6,418 | ||||||
Real Estate Investment Trusts – 1.8% | ||||||||
Colonial Realty | ||||||||
4.750%, 02/01/2010 | 4,915 | 4,706 | ||||||
Istar Financial | ||||||||
5.650%, 09/15/2011 | 4,225 | 4,131 | ||||||
Mack-Cali Realty | ||||||||
7.250%, 03/15/2009 | 4,500 | 4,623 | ||||||
Prologis 2006 | ||||||||
5.750%, 04/01/2016 | 3,525 | 3,398 | ||||||
16,858 | ||||||||
Sovereign – 0.9% | ||||||||
United Mexican States | ||||||||
5.625%, 01/15/2017 (c) | 8,680 | 8,072 | ||||||
Technology – 0.2% | ||||||||
Chartered Semiconductor | ||||||||
5.750%, 08/03/2010 (c) | 1,500 | 1,459 | ||||||
Total Corporate Bonds (Cost $168,361) | 163,044 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 12.8% | ||||||||
Adjustable Rate (b) – 9.8% | ||||||||
Adjustable Rate Mortgage Trust Series 2005-10, Class 1A21 | ||||||||
4.741%, 01/25/2036 | 6,662 | 6,568 | ||||||
CS First Boston Mortgage Securities Series 2003-AR24, Class 2A4 | ||||||||
4.029%, 10/25/2033 | 13,390 | 13,022 | ||||||
IMPAC CMB Trust Series 2003-12, Class A1 | ||||||||
5.461%, 12/25/2033 | 1,776 | 1,777 | ||||||
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1 | ||||||||
6.112%, 07/25/2036 | 7,192 | 7,212 | ||||||
Sequoia Mortgage Trust Series 2004-4, Class X1 | ||||||||
0.765%, 05/20/2034 (d) | 66,688 | 487 | ||||||
Structured Mortgage Loan Trust Series 2004-11, Class A | ||||||||
6.623%, 08/25/2034 | 1,334 | 1,338 | ||||||
Washington Mutual Series 2003-AR10, Class A6 | ||||||||
4.065%, 10/25/2033 | 16,305 | 15,761 | ||||||
Wells Fargo Mortgage Backed Securities Trust Series 2003-J, Class 2A5 | ||||||||
4.449%, 10/25/2033 | 11,500 | 10,762 | ||||||
Series 2003-O, Class 5A1 | ||||||||
4.812%, 01/25/2034 | 10,080 | 9,663 | ||||||
Series 2004-E, Class A5 | ||||||||
3.662%, 05/25/2034 | 9,010 | 8,754 | ||||||
Series 2004-N, Class A3 | ||||||||
4.098%, 08/25/2034 | 11,108 | 10,961 | ||||||
Wells Fargo Mortgage Backed Securities Trust Series 2004-EE, Class B1 | ||||||||
3.988%, 12/25/2034 | 5,686 | 5,426 | ||||||
91,731 | ||||||||
Fixed Rate – 3.0% | ||||||||
Banc of America Mortgage Securities Series 2005-5, Class 1A21 | ||||||||
5.000%, 06/25/2035 | 7,898 | 7,698 | ||||||
Bank of America Mortgage Securities Series 2003-6, Class 1A29 | ||||||||
4.250%, 08/25/2033 | 9,000 | 8,787 | ||||||
Countrywide Alternative Loan Trust Series 2004-2CB, Class 1A1 | ||||||||
4.250%, 03/25/2034 | 4,012 | 3,901 | ||||||
Salomon Brothers Mortgage Securities Series 1986-1, Class A | ||||||||
6.000%, 12/25/2011 | 109 | 109 | ||||||
Structured Asset Securities Corporation Series 2005-6, Class 5A6 | ||||||||
5.000%, 05/25/2035 | 8,241 | 7,963 | ||||||
Westam Mortgage Financial Series 11, Class A | ||||||||
6.360%, 08/26/2020 | 43 | 43 | ||||||
28,501 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities (Cost $123,267) | 120,232 | |||||||
U.S. Government Agency Mortgage-Backed Securities – 5.6% | ||||||||
Adjustable Rate (b) – 2.0% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.447%, 01/01/2028, #786281 | 1,945 | 1,970 | ||||||
5.935%, 04/01/2029, #847190 (c) | 2,640 | 2,682 | ||||||
5.676%, 10/01/2030, #847209 (c) | 4,817 | 4,897 | ||||||
5.768%, 05/01/2031, #847161 | 1,345 | 1,368 | ||||||
5.755%, 09/01/2033, #847210 (c) | 4,215 | 4,288 | ||||||
Federal National Mortgage Association Pool | ||||||||
6.133%, 09/01/2033, #725111 | 3,388 | 3,459 | ||||||
18,664 | ||||||||
Fixed Rate – 3.6% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.500%, 09/01/2006, #G40394 | 15 | 16 | ||||||
4.000%, 10/01/2010, #M80855 (c) | 6,513 | 6,255 |
The accompanying notes are an integral part of the financial statements.
42 First American Funds Annual Report 2006
Table of Contents
Intermediate Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Federal National Mortgage Association Pool | ||||||||
3.900%, 06/01/2010, #461013 | $ | 10,958 | $ | 10,280 | ||||
3.790%, 07/01/2013, #386314 (c) | 9,708 | 8,771 | ||||||
4.000%, 09/01/2013, #254909 | 8,931 | 8,467 | ||||||
33,789 | ||||||||
Total U.S. Government Agency Mortgage- Backed Securities (Cost $54,074) | 52,453 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 4.9% | ||||||||
Fixed Rate – 4.9% | ||||||||
Federal Home Loan Mortgage Corporation Series 2763, Class TA | ||||||||
4.000%, 03/15/2011 | 7,042 | 6,803 | ||||||
Series 1167, Class E | ||||||||
7.500%, 11/15/2021 | 30 | 30 | ||||||
Series 1286, Class A | ||||||||
6.000%, 05/15/2022 | 108 | 108 | ||||||
Series 2893, Class PB | ||||||||
5.000%, 12/15/2027 (c) | 11,590 | 11,280 | ||||||
Series 2991, Class QD | ||||||||
5.000%, 08/15/2034 (c) | 11,705 | 11,138 | ||||||
Series 2987, Class KE | ||||||||
5.000%, 12/15/2034 (c) | 7,785 | 7,408 | ||||||
Federal National Mortgage Association Series 1990-89, Class K | ||||||||
6.500%, 07/25/2020 | 23 | 24 | ||||||
Series 2004-76, Class CE | ||||||||
4.500%, 02/25/2021 (c) | 9,815 | 9,438 | ||||||
46,229 | ||||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (Cost $48,373) | 46,229 | |||||||
Municipal Bond – 0.2% | ||||||||
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B, Callable 09/01/2010 @ 100 6.950%, 09/01/2016 (Cost $2,130) | 2,130 | 2,139 | ||||||
Short-Term Investment – 0.1% | ||||||||
U.S. Treasury Obligation – 0.1% | ||||||||
U.S. Treasury Bill | ||||||||
4.629%, 09/07/2006 (e) (Cost $669) | 675 | 669 | ||||||
Investments Purchased with Proceeds from Securities Lending (f) – 36.4% (Cost $340,793) | ||||||||
Total Investments – 135.6% (Cost $1,298,422) | 1,271,337 | |||||||
Other Assets and Liabilities, Net – (35.6)% | (333,866 | ) | ||||||
Total Net Assets – 100.0% | $ | 937,471 | ||||||
(a) | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $49,351 or 5.3% of total net assets. See note 2 in Notes to Financial Statements. |
(b) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(c) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $334,380 at June 30, 2006. See Note 2 in Notes to Financial Statements. |
(d) | Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate in effect as of June 30, 2006. |
(e) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(f) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various short-term fixed income securities, such as repurchase agreements, commercial paper, money market funds and other corporate obligations. See note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | Notional | |||||||||||||||
Contracts | Contract | Settlement | Unrealized | |||||||||||||
Description | Sold | Value | Month | Appreciation | ||||||||||||
U.S. Treasury 2 Year Note Futures | (334 | ) | $ | (67,729 | ) | September 2006 | $ | 244 | ||||||||
U.S. Treasury 5 Year Note Futures | (167 | ) | (17,269 | ) | September 2006 | 49 | ||||||||||
U.S. Treasury 10 Year Note Futures | (34 | ) | (3,565 | ) | September 2006 | 7 | ||||||||||
U.S. Treasury Long Bond Futures | (179 | ) | (19,091 | ) | September 2006 | 34 | ||||||||||
$ | 334 | |||||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||
Reference | Buy/Sell | Receive | Expiration | Notional | Unrealized | |||||||||||||||||
Counterparty | Entity | Protection | Fixed Rate | Date | Amount | Appreciation | ||||||||||||||||
J.P. Morgan | Dow Jones CDX | |||||||||||||||||||||
IG Hvol 6 Index | Sell | 0.750% | 6/20/2011 | $ | 11,000 | $ | 80 | |||||||||||||||
UBS | Dow Jones CDX | |||||||||||||||||||||
IG Hvol 6 Index | Sell | 0.750% | 6/20/2011 | 25,000 | 106 | |||||||||||||||||
$ | 186 | |||||||||||||||||||||
Interest Rate Swap Agreements
Floating | Pay/ | |||||||||||||||||||||
Rate | Receive | Expiration | Notional | Unrealized | ||||||||||||||||||
Counterparty | Index | Floating Rate | Fixed Rate | Date | Amount | Depreciation | ||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.000% | 2/09/2009 | $ | 25,000 | $ | (373 | ) | |||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.427% | 11/10/2008 | 81,800 | (343 | ) | |||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.660% | 6/19/2006 | 19,000 | (102 | ) | |||||||||||||||
$ | (818 | ) | ||||||||||||||||||||
See notes to financial statements
First American Funds Annual Report 2006 43
Table of Contents
Schedule of Investments continued
Short Term Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Asset-Backed Securities – 34.8% | ||||||||
Automotive – 9.8% | ||||||||
Auto Bond Receivables Trust Series 1993-I, Class A | ||||||||
6.125%, 11/15/2021 (a) (b) | $ | 106 | $ | — | ||||
Capital One Auto Finance Trust Series 2003-A, Class A4A | ||||||||
2.470%, 01/15/2010 | 5,411 | 5,303 | ||||||
Ford Credit Auto Owner Trust Series 2005-B, Class A3 | ||||||||
4.170%, 01/15/2009 | 10,000 | 9,897 | ||||||
Harley-Davidson Motorcycle Trust Series 2003-2, Class A2 | ||||||||
2.070%, 02/15/2011 | 4,870 | 4,712 | ||||||
Hertz Vehicle Financing Series 2005-2A, Class A2 | ||||||||
4.930%, 02/25/2010 (c) | 5,460 | 5,364 | ||||||
M&I Auto Loan Trust Series 2005-1, Class A2 | ||||||||
4.750%, 06/20/2008 | 5,000 | 4,984 | ||||||
Nissan Auto Receivables Owner Trust Series 2005-A, Class A2 | ||||||||
3.220%, 07/16/2007 | 1,038 | 1,037 | ||||||
Series 2006-B, Class A3 | ||||||||
5.160%, 02/15/2010 | 6,000 | 5,960 | ||||||
Toyota Auto Receivables Owner Trust Series 2003-B, Class A4 | ||||||||
2.790%, 01/15/2010 | 2,000 | 1,981 | ||||||
Series 2003-A, Class A4 | ||||||||
2.200%, 03/15/2010 | 3,004 | 3,001 | ||||||
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 7,000 | 6,882 | ||||||
WFS Financial Owner Trust Series 2004-3, Class A3 | ||||||||
3.300%, 03/17/2009 | 3,039 | 3,014 | ||||||
52,135 | ||||||||
Commercial – 12.6% | ||||||||
Banc of America Commercial Mortgage Series 2004-2, Class A1 | ||||||||
2.764%, 11/10/2038 | 4,622 | 4,439 | ||||||
Series 2004-4, Class A2 | ||||||||
4.041%, 07/10/2042 | 7,475 | 7,179 | ||||||
Bear Stearns Commercial Mortgage Securities Series 2004-T14, Class A1 | ||||||||
3.570%, 01/12/2041 | 4,341 | 4,188 | ||||||
Commercial Mortgage Series 2004-LB3A, Class A1 | ||||||||
3.765%, 07/10/2037 | 5,084 | 4,983 | ||||||
GMAC Commercial Mortgage Securities Series 1999-C1, Class A2 | ||||||||
6.175%, 05/15/2033 | 5,825 | 5,876 | ||||||
Series 2004-C1, Class A2 | ||||||||
4.100%, 03/10/2038 | 4,000 | 3,826 | ||||||
Greenwich Capital Commercial Funding Series 2004-GG1, Class A2 | ||||||||
3.835%, 06/10/2036 | 5,250 | 5,122 | ||||||
Series 2005-GG5, Class A2 | ||||||||
5.117%, 04/10/2037 | 7,805 | 7,624 | ||||||
GS Mortgage Securities Series 2004-C1, Class A1 | ||||||||
3.659%, 10/10/2028 | 5,859 | 5,626 | ||||||
JP Morgan Chase Commercial Mortgage Securities Series 2001-CIB3, Class A2 | ||||||||
6.044%, 11/15/2035 | 6,235 | 6,274 | ||||||
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2 | ||||||||
3.086%, 05/15/2027 | 6,200 | 5,926 | ||||||
Series 2004-C2, Class A1 | ||||||||
2.946%, 03/15/2029 | 6,636 | 6,280 | ||||||
67,343 | ||||||||
Credit Card – 2.5% | ||||||||
Citibank Credit Card Issuance Trust Series 2004-A1, Class A1 | ||||||||
2.550%, 01/20/2009 | 800 | 787 | ||||||
MBNA Credit Card Master Note Trust Series 2005-A1, Class A1 | ||||||||
4.200%, 09/15/2010 | 10,000 | 9,778 | ||||||
Providian Gateway Master Trust Series 2004-DA, Class A | ||||||||
3.350%, 09/15/2011 (c) | 2,625 | 2,558 | ||||||
13,123 | ||||||||
Equipment Leases – 1.1% | ||||||||
CIT Equipment Collateral Series 2004-VT1, Class A3 | ||||||||
2.200%, 03/20/2008 | 2,256 | 2,227 | ||||||
CNH Equipment Trust Series 2004-A, Class A3B | ||||||||
2.940%, 10/15/2008 | 3,599 | 3,549 | ||||||
5,776 | ||||||||
Home Equity – 3.7% | ||||||||
Equivantage Home Equity Loan Trust Series 1996-1, Class A | ||||||||
6.550%, 10/25/2025 | 154 | 154 | ||||||
Series 1996-4, Class A | ||||||||
7.250%, 01/25/2028 | 553 | 551 | ||||||
GMAC Mortgage Corporation Loan Trust Series 2004-HE2, Class M1 | ||||||||
3.950%, 10/25/2033 | 4,850 | 4,682 | ||||||
Home Equity Mortgage Trust Series 2004-6, Class M2 | ||||||||
5.321%, 04/25/2035 | 1,500 | 1,430 | ||||||
IMC Home Equity Loan Trust Series 1998-3, Class A7 | ||||||||
6.720%, 08/20/2029 | 2,310 | 2,305 | ||||||
New Century Home Equity Loan Trust Series 1997-NC6, Class A7 | ||||||||
7.190%, 01/25/2029 | 813 | 810 | ||||||
Residential Funding Mortgage Securities Series 2004-HI2, Class A3 | ||||||||
4.270%, 11/25/2016 | 1,844 | 1,835 | ||||||
Saxon Asset Securities Trust Series 2004-1, Class M1 | ||||||||
5.853%, 03/25/2035 (d) | 8,000 | 8,015 | ||||||
19,782 | ||||||||
Manufactured Housing – 0.6% | ||||||||
Origen Manufactured Housing Series 2005-B, Class A2 | ||||||||
5.247%, 12/15/2018 | 3,230 | 3,176 | ||||||
Other – 1.8% | ||||||||
Global Signal Trust Series 2004-2A, Class A | ||||||||
4.232%, 12/15/2014 (c) | 6,380 | 6,100 | ||||||
Series 2006-1, Class C | ||||||||
5.707%, 02/15/2036 (c) | 2,750 | 2,697 |
The accompanying notes are an integral part of the financial statements.
44 First American Funds Annual Report 2006
Table of Contents
Short Term Bond Fund (continued) | ||||||||||
DESCRIPTION | PAR | VALUE | ||||||||
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A | ||||||||||
4.210%, 07/25/2034 (c) | $ | 257 | $ | 252 | ||||||
Series 2005-1, Class A | ||||||||||
4.850%, 01/25/2035 (c) | 860 | 849 | ||||||||
9,898 | ||||||||||
Utilities – 2.7% | ||||||||||
Detroit Edison Securitization Funding Series 2001-1, Class A3 | ||||||||||
5.875%, 03/01/2010 | 3,436 | 3,446 | ||||||||
Massachusetts RRB Special Purpose Trust Series 1999-1, Class A4 | ||||||||||
6.910%, 09/15/2009 | 3,115 | 3,141 | ||||||||
Peco Energy Transition Trust Series 1999-A, Class A6 | ||||||||||
6.050%, 03/01/2009 | 5,253 | 5,264 | ||||||||
Public Service New Hampshire Funding Series 2001-1, Class A2 | ||||||||||
5.730%, 11/01/2010 | 2,473 | 2,480 | ||||||||
14,331 | ||||||||||
Total Asset-Backed Securities (Cost $175,045) | 185,564 | |||||||||
U.S. Government Agency Mortgage-Backed Securities – 16.5% | ||||||||||
Adjustable Rate (d) – 7.4% | ||||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||||
5.973%, 12/01/2026, #756591 | 1,315 | 1,338 | ||||||||
6.072%, 01/01/2029, #846946 (e) | 910 | 924 | ||||||||
5.437%, 10/01/2029, #786853 | 619 | 637 | ||||||||
6.476%, 04/01/2030, #972055 (e) | 651 | 664 | ||||||||
5.860%, 05/01/2030, #847014 (e) | 784 | 792 | ||||||||
5.600%, 06/01/2031, #847367 | 414 | 421 | ||||||||
5.591%, 08/01/2032, #847331 (e) | 6,473 | 6,594 | ||||||||
6.001%, 10/01/2032, #847063 (e) | 685 | 703 | ||||||||
4.236%, 05/01/2033, #780456 | 2,213 | 2,162 | ||||||||
Federal National Mortgage Association Pool | ||||||||||
6.092%, 11/01/2025, #433988 (e) | 1,039 | 1,048 | ||||||||
6.250%, 02/01/2028, #415285 | 238 | 242 | ||||||||
5.723%, 10/01/2030, #847241 (e) | 3,619 | 3,678 | ||||||||
5.613%, 06/01/2031, #625338 (e) | 695 | 702 | ||||||||
6.443%, 12/01/2031, #535363 | 2,175 | 2,217 | ||||||||
6.314%, 03/01/2032, #545791 | 296 | 302 | ||||||||
6.710%, 05/01/2032, #545717 | 1,809 | 1,826 | ||||||||
7.002%, 05/01/2032, #634948 (e) | 382 | 390 | ||||||||
4.494%, 10/01/2032, #661645 (e) | 1,314 | 1,302 | ||||||||
4.699%, 12/01/2032, #671884 | 2,467 | 2,456 | ||||||||
6.701%, 04/01/2034, #775389 | 859 | 869 | ||||||||
4.251%, 07/01/2034, #795242 (e) | 4,086 | 3,969 | ||||||||
5.768%, 08/01/2036, #555369 (e) | 1,326 | 1,352 | ||||||||
Government National Mortgage Association Pool | ||||||||||
4.750%, 08/20/2021, #8824 | 286 | 287 | ||||||||
4.750%, 07/20/2022, #8006 (e) | 336 | 336 | ||||||||
4.750%, 09/20/2025, #8699 | 185 | 185 | ||||||||
4.375%, 04/20/2026, #8847 | 182 | 182 | ||||||||
4.750%, 08/20/2027, #80106 | 58 | 59 | ||||||||
5.375%, 01/20/2028, #80154 | 97 | 97 | ||||||||
4.375%, 05/20/2029, #80283 (e) | 475 | 476 | ||||||||
4.375%, 06/20/2029, #80291 (e) | 842 | 844 | ||||||||
4.875%, 11/20/2030, #80469 (e) | 487 | 486 | ||||||||
4.375%, 04/20/2031, #80507 (e) | 260 | 261 | ||||||||
4.500%, 08/20/2031, #80535 (e) | 989 | 990 | ||||||||
5.500%, 02/20/2032, #80580 (e) | 261 | 261 | ||||||||
39,052 | ||||||||||
Fixed Rate – 9.1% | ||||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||||
5.500%, 10/01/2006, #M90680 | 62 | 62 | ||||||||
7.750%, 07/01/2009, #184513 | 7 | 7 | ||||||||
Federal National Mortgage Association Pool | ||||||||||
6.195%, 06/01/2007, #410601 (e) | 4,857 | 4,847 | ||||||||
4.250%, 09/15/2007 (e) | 15,000 | 14,781 | ||||||||
6.625%, 09/15/2009 (e) | 12,355 | 12,773 | ||||||||
3.900%, 06/01/2010, #461013 | 6,710 | 6,295 | ||||||||
5.500%, 05/01/2012, #254340 (e) | 1,383 | 1,372 | ||||||||
4.000%, 12/01/2013, #255039 (e) | 5,330 | 5,048 | ||||||||
4.000%, 07/01/2014, #255322 (e) | 3,650 | 3,444 | ||||||||
48,629 | ||||||||||
Total U.S. Government Agency Mortgage- Backed Securities (Cost $88,011) | 87,861 | |||||||||
U.S. Government & Agency Securities – 14.5% | ||||||||||
U.S. Agency Debentures – 7.0% | ||||||||||
Federal Home Loan Mortgage Corporation | ||||||||||
3.875%, 06/15/2008 (e) | 15,000 | 14,562 | ||||||||
Callable 10/17/2006 @ 100 | ||||||||||
4.750%, 10/17/2008 (e) | 6,000 | 5,889 | ||||||||
Federal National Mortgage Association | ||||||||||
4.000%, 09/02/2008 (e) | 10,000 | 9,683 | ||||||||
4.250%, 05/15/2009 (e) | 7,500 | 7,267 | ||||||||
37,401 | ||||||||||
U.S. Treasuries – 7.5% | ||||||||||
U.S. Treasury Bond (STRIPS) | ||||||||||
0.000%, 11/15/2011 (e) (f) | 11,200 | 10,988 | ||||||||
U.S. Treasury Notes | ||||||||||
2.500%, 09/30/2006 (e) | 9,000 | 8,942 | ||||||||
4.000%, 09/30/2007 (e) | 5,030 | 4,955 | ||||||||
4.375%, 12/31/2007 (e) | 15,320 | 15,138 | ||||||||
40,023 | ||||||||||
Total U.S. Government & Agency Securities | ||||||||||
(Cost $78,076) | 77,424 | |||||||||
Corporate Bonds – 13.8% | ||||||||||
Banking – 0.9% | ||||||||||
Popular North America | ||||||||||
3.875%, 10/01/2008 | 4,925 | 4,712 | ||||||||
Basic Industry – 0.4% | ||||||||||
Potash | ||||||||||
7.125%, 06/15/2007 | 2,075 | 2,098 | ||||||||
Brokerage – 1.2% | ||||||||||
Goldman Sachs Group | ||||||||||
7.350%, 10/01/2009 | 2,500 | 2,620 | ||||||||
Morgan Stanley | ||||||||||
4.000%, 01/15/2010 | 4,000 | 3,781 | ||||||||
6,401 | ||||||||||
Consumer Cyclical – 1.4% | ||||||||||
Federated Department Stores | ||||||||||
6.300%, 04/01/2009 | 3,000 | 3,034 | ||||||||
Ford Motor Credit | ||||||||||
6.625%, 06/16/2008 | 2,500 | 2,379 | ||||||||
Harrah’s Operating Company | ||||||||||
5.500%, 07/01/2010 | 2,000 | 1,951 | ||||||||
7,364 | ||||||||||
First American Funds Annual Report 2006 45
Table of Contents
Schedule of Investments continued
Short Term Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Consumer Non Cyclical – 1.5% | ||||||||
Baxter International | ||||||||
5.196%, 02/16/2008 | $ | 2,500 | $ | 2,478 | ||||
Kroger | ||||||||
6.375%, 03/01/2008 | 2,480 | 2,498 | ||||||
Wellpoint | ||||||||
3.750%, 12/14/2007 | 3,000 | 2,915 | ||||||
7,891 | ||||||||
Electric – 2.6% | ||||||||
CalEnergy | ||||||||
7.630%, 10/15/2007 | 6,255 | 6,389 | ||||||
Constellation Energy Group | ||||||||
6.350%, 04/01/2007 | 4,275 | 4,292 | ||||||
Oncor Electric Delivery | ||||||||
5.000%, 09/01/2007 | 3,000 | 2,967 | ||||||
13,648 | ||||||||
Energy – 1.3% | ||||||||
Louis Dreyfus Natural Gas | ||||||||
6.875%, 12/01/2007 | 3,000 | 3,040 | ||||||
PEMEX Project Funding Master Trust | ||||||||
6.125%, 08/15/2008 | 4,000 | 3,992 | ||||||
7,032 | ||||||||
Finance – 0.9% | ||||||||
Ameriprise Financial | ||||||||
5.350%, 11/15/2010 | 1,000 | 981 | ||||||
International Lease Finance | ||||||||
3.125%, 05/03/2007 | 4,000 | 3,913 | ||||||
4,894 | ||||||||
Miscellaneous – 0.9% | ||||||||
Core Investment Grade Trust | ||||||||
4.659%, 11/30/2007 | 5,000 | 4,919 | ||||||
Natural Gas – 1.5% | ||||||||
Duke Energy Field Services | ||||||||
5.750%, 11/15/2006 | 4,915 | 4,913 | ||||||
Oneok | ||||||||
5.510%, 02/16/2008 (e) | 2,500 | 2,484 | ||||||
Ras Laffan Liquid Natural Gas | ||||||||
7.628%, 09/15/2006 (c) | 831 | 832 | ||||||
8,229 | ||||||||
Real Estate Investment Trusts – 0.9% | ||||||||
Istar Financial | ||||||||
6.000%, 12/15/2010 | 2,500 | 2,491 | ||||||
Simon Property Group | ||||||||
6.375%, 11/15/2007 | 2,500 | 2,510 | ||||||
5,001 | ||||||||
Technology – 0.3% | ||||||||
Chartered Semiconductor | ||||||||
5.750%, 08/03/2010 (e) | 1,500 | 1,459 | ||||||
Total Corporate Bonds (Cost $75,040) | 73,648 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 11.7% | ||||||||
Adjustable Rate (d) – 9.7% | ||||||||
Adjustable Rate Mortgage Trust Series 2005-10, Class 1A21 | ||||||||
4.741%, 01/25/2036 | 4,320 | 4,259 | ||||||
Citigroup Mortgage Loan Trust Series 2005-7, Class 2A1A | ||||||||
4.862%, 11/25/2035 | 4,469 | 4,331 | ||||||
GSR Mortgage Loan Trust Series 2005-AR1, Class B1 | ||||||||
4.858%, 01/25/2035 | 2,189 | 2,119 | ||||||
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1 | ||||||||
6.112%, 07/25/2036 | 4,286 | 4,297 | ||||||
Sequoia Mortgage Trust Series 2004-4, Class B2 | ||||||||
5.981%, 05/20/2034 | 3,581 | 3,587 | ||||||
Structured Mortgage Loan Trust Series 2004-11, Class A | ||||||||
6.623%, 08/25/2034 | 1,052 | 1,055 | ||||||
Washington Mutual Series 2003-AR3, Class A5 | ||||||||
3.927%, 04/25/2033 | 6,461 | 6,214 | ||||||
Series 2003-AR10, Class A6 | ||||||||
4.065%, 10/25/2033 | 5,000 | 4,833 | ||||||
Series 2004-AR7, Class A6 | ||||||||
3.943%, 07/25/2034 | 5,000 | 4,797 | ||||||
Wells Fargo Mortgage Backed Securities Trust Series 2004-E, Class A5 | ||||||||
3.662%, 05/25/2034 | 5,868 | 5,701 | ||||||
Series 2004-N, Class A3 | ||||||||
4.098%, 08/25/2034 | 7,000 | 6,907 | ||||||
Series 2005-AR10, Class 2A5 | ||||||||
4.110%, 06/25/2035 | 3,921 | 3,824 | ||||||
51,924 | ||||||||
Fixed Rate – 2.0% | ||||||||
Bank of America Mortgage Securities Series 2004-F, Class 2A2 | ||||||||
4.021%, 07/25/2034 | 2,722 | 2,717 | ||||||
Citigroup Mortgage Loan Trust Series 2005-WF1, Class A2 | ||||||||
4.490%, 02/25/2035 | 6,650 | 6,522 | ||||||
Mortgage Capital Funding Series 1997-MC1, Class A3 | ||||||||
7.288%, 07/20/2027 | 109 | 109 | ||||||
Residential Accredited Loans Series 2003-QS17, Class CB7 | ||||||||
5.500%, 09/25/2033 | 1,149 | 1,145 | ||||||
Residential Asset Securitization Trust Series 2002-A12, Class 1A1 | ||||||||
5.200%, 11/25/2032 | 85 | 85 | ||||||
10,578 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities (Cost $63,663) | 62,502 | |||||||
The accompanying notes are an integral part of the financial statements.
46 First American Funds Annual Report 2006
Table of Contents
Short Term Bond Fund (continued) | |||||||||
DESCRIPTION | PAR /SHARES | VALUE | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 6.8% | |||||||||
Fixed Rate – 6.8% | |||||||||
Federal Home Loan Mortgage Corporation | |||||||||
Series 2822, Class VM | |||||||||
5.000%, 04/15/2010 | $ | 3,477 | $ | 3,422 | |||||
Series 2763, Class TA | |||||||||
4.000%, 03/15/2011 | 5,064 | 4,892 | |||||||
Series 1022, Class J | |||||||||
6.000%, 12/15/2020 | 47 | 47 | |||||||
Series 2738, Class UA | |||||||||
3.570%, 12/15/2023 (e) | 4,201 | 4,072 | |||||||
Series 2589, Class GK | |||||||||
4.000%, 03/15/2026 (e) | 2,811 | 2,749 | |||||||
Series 2731, Class PV | |||||||||
4.500%, 05/15/2026 (e) | 5,000 | 4,812 | |||||||
Series 2893, Class PB | |||||||||
5.000%, 12/15/2027 (e) | 6,367 | 6,196 | |||||||
Federal National Mortgage Association | |||||||||
Series 2004-76, Class CE | |||||||||
4.500%, 02/25/2021 (e) | 6,000 | 5,770 | |||||||
Series 1992-150, Class MA | |||||||||
5.500%, 09/25/2022 | 134 | 133 | |||||||
Series 2004-90, Class GA | |||||||||
4.350%, 03/25/2034 (e) | 4,577 | 4,345 | |||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (Cost $37,824) | 36,438 | ||||||||
Short-Term Investments – 1.6% | |||||||||
Money Market Fund – 1.5% | |||||||||
First American Prime Obligations Fund, Class Z (g) | 8,057,539 | 8,058 | |||||||
U.S. Treasury Obligation – 0.1% | |||||||||
U.S. Treasury Bill | |||||||||
4.629%, 09/07/2006 (h) | $ | 340 | 337 | ||||||
Total Short-Term Investments (Cost $8,395) | 8,395 | ||||||||
Investments Purchased with Proceeds | |||||||||
from Securities Lending (i) – 33.7% | |||||||||
(Cost $180,013) | 180,013 | ||||||||
Total Investments – 133.4% (Cost $722,038) | 711,665 | ||||||||
Other Assets and Liabilities, Net – (33.4)% | (178,229 | ) | |||||||
Total Net Assets – 100.0% | $ | 533,436 | |||||||
(a) | Security is fair valued and illiquid. As of June 30, 2006, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements. |
(b) | Security in default at June 30, 2006. |
(c) | Security purchased within terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $18,652 or 3.5% of total net assets. See note 2 in Notes to Financial Statements. |
(d) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(e) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $175,789 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(f) | Principal only – Represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The zero coupon rate represents the lack of interest as part of payments received. |
(g) | 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. |
(h) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(i) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements. |
STRIPS – Separate Trading of Registered Interest and Principal of Securities.
Schedule of Open Futures Contracts
Number of | |||||||||||||||||
Contracts | Notional | Unrealized | |||||||||||||||
Purchased | Contract | Settlement | Appreciation | ||||||||||||||
Description | (Sold) | Value | Month | (Depreciation) | |||||||||||||
U.S. Treasury | |||||||||||||||||
2 Year Note Futures | 512 | $ | 103,824 | September 2006 | $ | (154 | ) | ||||||||||
U.S. Treasury | |||||||||||||||||
5 Year Note Futures | (639 | ) | (66,077 | ) | September 2006 | 421 | |||||||||||
$ | 267 | ||||||||||||||||
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||||
Floating | Receive | Unrealized | ||||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | (Depreciation) | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 3.568% | 1/11/2007 | $ | 142,000 | $ | (1,543 | ) | |||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.520% | 8/10/2007 | 37,000 | (444 | ) | |||||||||||||||||
UBS | 3-Month LIBOR | Pay | 4.616% | 10/06/2007 | 57,000 | (724 | ) | |||||||||||||||||
UBS | 3-Month LIBOR | Receive | 4.773% | 1/17/2011 | 12,000 | 414 | ||||||||||||||||||
$ | (2,297 | ) | ||||||||||||||||||||||
First American Funds Annual Report 2006 47
Table of Contents
Schedule of Investments continued
Total Return Bond Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government Agency Mortgage-Backed Securities – 30.8% | ||||||||
Adjustable Rate (a) – 4.6% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
6.180%, 10/01/2029, #1L0117 | $ | 1,492 | $ | 1,510 | ||||
4.887%, 07/01/2030, #847240 | 1,724 | 1,747 | ||||||
5.682%, 05/01/2033, #847411 | 1,090 | 1,099 | ||||||
Federal National Mortgage Association Pool | ||||||||
5.934%, 09/01/2033, #725553 (b) | 693 | 695 | ||||||
5.286%, 11/01/2034, #735054 (b) | 1,924 | 1,875 | ||||||
5.963%, 01/01/2035, #745548 | 2,189 | 2,229 | ||||||
4.871%, 09/01/2035, #745168 (b) | 2,645 | 2,558 | ||||||
5.310%, 12/01/2035, #850865 (b) | 6,941 | 6,784 | ||||||
18,497 | ||||||||
Fixed Rate – 26.2% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
5.000%, 09/01/2018, #E99575 | 1,249 | 1,205 | ||||||
5.500%, 12/01/2020, #G11810 (b) | 3,634 | 3,565 | ||||||
6.500%, 07/01/2031, #A17212 (b) | 3,919 | 3,957 | ||||||
Federal National Mortgage Association Pool | ||||||||
3.900%, 06/01/2010, #461013 | 5,000 | 4,691 | ||||||
5.500%, 12/01/2018, #735575 (b) | 2,082 | 2,047 | ||||||
5.500%, 01/01/2020, #735386 (b) | 1,581 | 1,554 | ||||||
5.500%, 06/01/2020, #735792 | 1,339 | 1,316 | ||||||
5.000%, 02/01/2021, #745279 | 5,120 | 4,933 | ||||||
5.000%, 03/01/2021, #845444 | 3,815 | 3,674 | ||||||
5.500%, 02/01/2025, #255628 (b) | 3,300 | 3,207 | ||||||
6.000%, 04/01/2032, #745101 | 1,280 | 1,276 | ||||||
5.500%, 06/01/2033, #843435 (b) | 1,273 | 1,228 | ||||||
5.000%, 10/01/2033, #741897 (b) | 1,495 | 1,404 | ||||||
5.500%, 10/01/2033, #555800 | 3,981 | 3,840 | ||||||
5.500%, 11/01/2033, #555967 (b) | 7,418 | 7,157 | ||||||
5.000%, 03/01/2034, #725205 (b) | 1,390 | 1,305 | ||||||
5.000%, 03/01/2034, #725250 (b) | 1,235 | 1,160 | ||||||
5.500%, 04/01/2034, #725424 (b) | 3,499 | 3,375 | ||||||
5.000%, 05/01/2034, #725456 (b) | 1,233 | 1,156 | ||||||
5.000%, 06/01/2034, #782909 (b) | 946 | 888 | ||||||
5.500%, 07/01/2034 (c) | 10,370 | 9,958 | ||||||
6.000%, 07/01/2034 (c) | 3,860 | 3,799 | ||||||
5.500%, 08/01/2034, #745563 (c) | 2,367 | 2,284 | ||||||
5.500%, 09/01/2034, #725773 (b) | 2,271 | 2,187 | ||||||
6.000%, 04/01/2035, #735503 | 4,042 | 3,991 | ||||||
5.000%, 05/01/2035, #357883 | 2,770 | 2,602 | ||||||
5.500%, 08/01/2035, #829679 (b) | 5,108 | 4,910 | ||||||
5.500%, 09/01/2035, #842230 | 2,836 | 2,726 | ||||||
5.000%, 10/01/2035, #846196 | 3,032 | 2,836 | ||||||
5.500%, 10/01/2035, #735899 (b) | 3,329 | 3,206 | ||||||
6.000%, 01/01/2036, #831215 (b) | 3,429 | 3,378 | ||||||
6.000%, 01/01/2036, #852347 | 3,456 | 3,403 | ||||||
5.500%, 03/01/2036, #870157 | 3,822 | 3,671 | ||||||
6.500%, 04/01/2036, #831377 | 1,615 | 1,623 | ||||||
6.500%, 04/01/2036, #852909 | 1,107 | 1,113 | ||||||
104,625 | ||||||||
Total U.S. Government Agency Mortgage- Backed Securities (Cost $126,139) | 123,122 | |||||||
Corporate Bonds – 19.6% | ||||||||
Banking – 1.3% | ||||||||
J.P. Morgan Chase | ||||||||
5.150%, 10/01/2015 | 1,250 | 1,167 | ||||||
J.P. Morgan Chase XVII | ||||||||
5.850%, 08/01/2035 | 650 | 574 | ||||||
SOC General Real Estate, Callable 09/30/2007 @ 100 | ||||||||
7.640%, 12/29/2049 (a) (d) | 1,465 | 1,496 | ||||||
Wells Fargo Callable 12/15/2006 @ 103.98 | ||||||||
7.960%, 12/15/2026 | 2,000 | 2,092 | ||||||
5,329 | ||||||||
Basic Industry – 1.8% | ||||||||
Celulosa Arauco Y Constitucion | ||||||||
8.625%, 08/15/2010 | 1,500 | 1,633 | ||||||
Cosipa Commercial | ||||||||
8.250%, 06/14/2016 (d) (e) | 285 | 286 | ||||||
Falconbridge | ||||||||
7.350%, 06/05/2012 | 1,255 | 1,307 | ||||||
Ineos Group Holdings, Callable 02/15/2011 @ 104.25 | ||||||||
8.500%, 02/15/2016 (b) (d) (e) | 405 | 379 | ||||||
LPG International | ||||||||
7.250%, 12/20/2015 (e) | 805 | 741 | ||||||
Southern Copper | ||||||||
7.500%, 07/27/2035 | 1,550 | 1,480 | ||||||
Teck Cominco Limited | ||||||||
6.125%, 10/01/2035 | 485 | 434 | ||||||
Vale Overseas | ||||||||
6.250%, 01/11/2016 | 535 | 510 | ||||||
Vedanta Resources | ||||||||
6.625%, 02/22/2010 (d) (e) | 575 | 549 | ||||||
7,319 | ||||||||
Brokerage – 1.6% | ||||||||
Goldman Sachs Group | ||||||||
5.350%, 01/15/2016 | 2,920 | 2,758 | ||||||
Merrill Lynch | ||||||||
6.050%, 05/16/2016 | 1,980 | 1,967 | ||||||
Morgan Stanley | ||||||||
5.375%, 10/15/2015 | 1,630 | 1,543 | ||||||
6,268 | ||||||||
Capital Goods – 0.8% | ||||||||
Case New Holland, Callable 03/01/2010 @ 103.56 | ||||||||
7.125%, 03/01/2014 (d) | 520 | 497 | ||||||
Chart Industries, Callable 10/15/2010 @ 104.56 | ||||||||
9.125%, 10/15/2015 (d) | 585 | 597 | ||||||
Hutchison Whampoa International | ||||||||
7.450%, 11/24/2033 (d) | 750 | 793 | ||||||
Owens-Illinois | ||||||||
8.100%, 05/15/2007 (b) | 500 | 503 | ||||||
Sino Forest | ||||||||
9.125%, 08/17/2011 (b) (d) (e) | 670 | 690 | ||||||
3,080 | ||||||||
Communications – 2.3% | ||||||||
AT&T | ||||||||
7.300%, 11/15/2011 | 953 | 1,012 | ||||||
C & M Finance, Callable 02/01/2011 @ 104.05 | ||||||||
8.100%, 02/01/2016 (d) (e) | 565 | 540 | ||||||
Comcast | ||||||||
7.050%, 03/15/2033 | 1,455 | 1,476 | ||||||
Dex Media West, Callable 08/15/2008 @ 104.94 | ||||||||
9.875%, 08/15/2013 | 500 | 542 | ||||||
News America Holdings | ||||||||
7.750%, 01/20/2024 | 680 | 729 |
The accompanying notes are an integral part of the financial statements.
48 First American Funds Annual Report 2006
Table of Contents
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Telecom Italia Capital | ||||||||
4.000%, 11/15/2008 | $ | 980 | $ | 940 | ||||
Telefonos De Mexico SA de CV (Telemex) Series L | ||||||||
4.750%, 01/27/2010 | 1,000 | 952 | ||||||
Time Warner Entertainment | ||||||||
8.375%, 07/15/2033 | 1,405 | 1,589 | ||||||
Verizon Communications | ||||||||
7.750%, 12/01/2030 | 820 | 884 | ||||||
Vimpelcom | ||||||||
8.250%, 05/23/2016 (d) (e) | 700 | 671 | ||||||
9,335 | ||||||||
Consumer Cyclical – 1.1% | ||||||||
Autonation, Callable 04/15/2009 @ 105.25 | ||||||||
7.000%, 04/15/2014 (d) | 935 | 921 | ||||||
Chaoda Modern Agriculture | ||||||||
7.750%, 02/08/2010 (b) (d) (e) | 750 | 739 | ||||||
DaimlerChrysler | ||||||||
4.875%, 06/15/2010 | 550 | 526 | ||||||
Galaxy Entertainment, Callable 12/15/2009 @ 104.94 | ||||||||
9.875%, 12/15/2012 (b) (d) (e) | 575 | 598 | ||||||
Harrah’s | ||||||||
5.750%, 10/01/2017 | 520 | 473 | ||||||
Lippo Karwaci Finance, Callable 03/09/2009 @ 104.44 | ||||||||
8.875%, 03/09/2011 (e) | 575 | 556 | ||||||
MGM Mirage | ||||||||
6.625%, 07/15/2015 | 725 | 676 | ||||||
4,489 | ||||||||
Consumer Non Cyclical – 0.9% | ||||||||
HCA | ||||||||
6.500%, 02/15/2016 (b) | 850 | 786 | ||||||
Kroger | ||||||||
7.250%, 06/01/2009 | 1,400 | 1,449 | ||||||
Reynolds American | ||||||||
6.500%, 07/15/2010 (d) | 1,250 | 1,210 | ||||||
3,445 | ||||||||
Electric – 1.4% | ||||||||
Edison Mission Energy | ||||||||
7.500%, 06/15/2013 (d) | 530 | 519 | ||||||
Florida Power & Light | ||||||||
5.650%, 02/01/2037 | 825 | 758 | ||||||
MidAmerican Energy Holdings | ||||||||
�� 5.875%, 10/01/2012 | 990 | 982 | ||||||
NRG Energy, Callable 02/01/2009 @ 107.25 | ||||||||
7.250%, 02/01/2014 | 935 | 912 | ||||||
Ohio Power Series K | ||||||||
6.000%, 06/01/2016 | 875 | 863 | ||||||
Oncor Electric Delivery | ||||||||
7.000%, 05/01/2032 | 820 | 851 | ||||||
Pacific Gas & Electric | ||||||||
6.050%, 03/01/2034 | 930 | 878 | ||||||
5,763 | ||||||||
Energy – 1.5% | ||||||||
Gazprom International | ||||||||
7.201%, 02/01/2020 (d) | 705 | 715 | ||||||
Gazprombank | ||||||||
6.500%, 09/23/2015 | 720 | 660 | ||||||
Nexen | ||||||||
5.875%, 03/10/2035 | 1,000 | 883 | ||||||
Petro-Canada | ||||||||
5.350%, 07/15/2033 | 500 | 422 | ||||||
Tengizcheveroil Finance | ||||||||
6.124%, 11/15/2014 (d) | 1,250 | 1,208 | ||||||
Tesoro, Callable 11/01/2010 @ 103.31 | ||||||||
6.625%, 11/01/2015 (d) | 965 | 914 | ||||||
XTO Energy | ||||||||
6.100%, 04/01/2036 (b) | 1,095 | 991 | ||||||
5,793 | ||||||||
Finance – 0.7% | ||||||||
American General Finance | ||||||||
3.875%, 10/01/2009 | 1,285 | 1,215 | ||||||
ILFC E-Capital Trust II, Callable 12/21/2015 @ 100 | ||||||||
6.250%, 12/21/2065 (a) (d) | 1,440 | 1,361 | ||||||
2,576 | ||||||||
Insurance – 0.5% | ||||||||
Liberty Mutual Group | ||||||||
6.500%, 03/15/2035 (b) (d) | 1,000 | 873 | ||||||
Unumprovident | ||||||||
5.997%, 05/15/2008 | 1,040 | 1,039 | ||||||
1,912 | ||||||||
Natural Gas – 0.3% | ||||||||
Duke Energy Field Services | ||||||||
7.875%, 08/16/2010 | 980 | 1,047 | ||||||
Real Estate Investment Trust – 0.3% | ||||||||
Prologis 2006 | ||||||||
5.750%, 04/01/2016 | 1,405 | 1,354 | ||||||
Sovereigns – 4.7% | ||||||||
Federal Republic of Brazil | ||||||||
7.125%, 01/20/2037 (b) (e) | 1,310 | 1,241 | ||||||
Callable 08/17/2015 @ 100 | ||||||||
11.000%, 08/17/2040 (e) | 2,525 | 3,131 | ||||||
Republic of Indonesia | ||||||||
6.875%, 03/09/2017 (d) (e) | 1,110 | 1,081 | ||||||
Republic of Philippines | ||||||||
9.500%, 02/02/2030 (e) | 1,490 | 1,706 | ||||||
Republic of Turkey | ||||||||
7.375%, 02/05/2025 (b) (e) | 1,405 | 1,265 | ||||||
11.875%, 01/15/2030 (b) (e) | 995 | 1,360 | ||||||
Republic of Uruguay | ||||||||
8.000%, 11/18/2022 (e) | 1,315 | 1,259 | ||||||
Republic of Venezuela | ||||||||
9.250%, 09/15/2027 (b) (e) | 2,090 | 2,466 | ||||||
Russian Federation, | ||||||||
5.000% through 03/31/2007 thereafter | ||||||||
7.500%, 03/31/2030 (d) | 1,070 | 1,138 | ||||||
United Mexican States | ||||||||
5.625%, 01/15/2017 (b) | 3,480 | 3,236 | ||||||
6.750%, 09/27/2034 (b) | 895 | 870 | ||||||
18,753 | ||||||||
Technology – 0.3% | ||||||||
Chartered Semiconductor | ||||||||
6.375%, 08/03/2015 | 590 | 563 | ||||||
LG Electronics | ||||||||
5.000%, 06/17/2010 (d) | 785 | 745 | ||||||
1,308 | ||||||||
First American Funds Annual Report 2006 49
Table of Contents
Schedule of Investments continued
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Transportation – 0.1% | ||||||||
Hertz, Callable 01/01/2010 @ 104.44 | ||||||||
8.875%, 01/01/2014 (d) | $ | 500 | $ | 513 | ||||
Total Corporate Bonds (Cost $81,056) | 78,284 | |||||||
Asset-Backed Securities – 19.3% | ||||||||
Automotive – 2.4% | ||||||||
Harley Davidson Motorcycle Trust Series 2005-4, Class A2 | ||||||||
4.850%, 06/15/2012 | 1,190 | 1,172 | ||||||
Hertz Vehicle Financing Series 2005-2A, Class A6 | ||||||||
5.080%, 11/25/2011 (d) | 2,525 | 2,457 | ||||||
Triad Auto Receivables Owner Trust Series 2006-A, Class A3 | ||||||||
4.770%, 01/12/2011 | 2,195 | 2,164 | ||||||
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4 | ||||||||
4.860%, 04/20/2012 | 4,025 | 3,957 | ||||||
9,750 | ||||||||
Commercial – 11.6% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 | 3,650 | 3,629 | ||||||
Bear Stearns Commercial Mortgage Securities | ||||||||
Series 2005-PW10, Class A4 | ||||||||
5.405%, 12/11/2040 (b) | 1,750 | 1,691 | ||||||
Commercial Mortgage Pass-Through Certificates | ||||||||
Series 2006-CN2A, Class A2FX | ||||||||
5.449%, 02/05/2019 (d) | 1,805 | 1,771 | ||||||
Series 2005-LP5, Class A2 | ||||||||
4.630%, 05/10/2043 | 5,750 | 5,547 | ||||||
Deutsche Mortgage and Asset Receiving | ||||||||
Series 1998-C1, Class A2 | ||||||||
6.538%, 06/15/2031 | 2,377 | 2,398 | ||||||
GE Capital Commercial Mortgage Corporation | ||||||||
Series 2004-C1, Class A2 | ||||||||
3.915%, 11/10/2038 | 3,000 | 2,837 | ||||||
Series 2005-C3, Class A2 | ||||||||
4.853%, 07/10/2045 | 2,265 | 2,199 | ||||||
GMAC Commercial Mortgage Securities | ||||||||
Series 1999-C1, Class A2 | ||||||||
6.175%, 05/15/2033 | 3,860 | 3,895 | ||||||
Series 2003-C3, Class A2 | ||||||||
4.223%, 04/10/2040 | 3,000 | 2,883 | ||||||
Series 2005-C1, Class A2 | ||||||||
4.471%, 05/10/2043 | 3,750 | 3,597 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2003-C1, Class A2 | ||||||||
3.285%, 07/05/2035 | 1,500 | 1,408 | ||||||
Series 2005-GG5, Class A2 | ||||||||
5.117%, 04/10/2037 | 4,625 | 4,518 | ||||||
Series 2005-GG5, Class A5 | ||||||||
5.224%, 04/10/2037 | 2,535 | 2,418 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2004-10F, Class 3A1 | ||||||||
5.500%, 08/25/2019 | 1,165 | 1,143 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities | ||||||||
Series 2005-LDP5, Class A4 | ||||||||
5.345%, 12/15/2044 | 1,510 | 1,445 | ||||||
LB-UBS Commercial Mortgage Trust | ||||||||
Series 2005-C7, Class A2 | ||||||||
5.103%, 11/15/2030 | 2,500 | 2,440 | ||||||
Nomura Asset Securities | ||||||||
Series 1998-D6, Class A1B | ||||||||
6.590%, 03/15/2030 | 2,325 | 2,357 | ||||||
46,176 | ||||||||
Credit Card – 2.4% | ||||||||
Citibank Credit Card Issuance Trust | ||||||||
Series 2006-B2, Class B2 | ||||||||
5.150%, 03/07/2011 | 1,690 | 1,666 | ||||||
Series 2006-A4, Class A4 | ||||||||
5.450%, 05/10/2013 | 6,210 | 6,158 | ||||||
MBNA Credit Card Master Note Trust | ||||||||
Series 2003-A1, Class A1 | ||||||||
3.300%, 07/15/2010 | 405 | 391 | ||||||
Series 2005-A1, Class A1 | ||||||||
4.200%, 09/15/2010 | 825 | 806 | ||||||
Providian Gateway Master Trust | ||||||||
Series 2004-DA, Class A | ||||||||
3.350%, 09/15/2011 (d) | 620 | 604 | ||||||
9,625 | ||||||||
Equipment Leases – 0.2% | ||||||||
Caterpillar Financial Asset Trust | ||||||||
Series 2004-A, Class A3 | ||||||||
3.130%, 01/26/2009 | 1,075 | 1,059 | ||||||
Home Equity – 0.3% | ||||||||
GRMT Mortgage Loan Trust | ||||||||
Series 2001-1A, Class M1 | ||||||||
7.772%, 07/20/2031 (d) | 218 | 219 | ||||||
Residential Asset Securities | ||||||||
Series 2004-KS3, Class A2B2 | ||||||||
5.291%, 04/25/2034 (a) | 959 | 962 | ||||||
1,181 | ||||||||
Manufactured Housing – 0.7% | ||||||||
Green Tree Financial | ||||||||
Series 1996-8, Class A7 | ||||||||
8.050%, 10/15/2027 | 458 | 476 | ||||||
Origen Manufactured Housing | ||||||||
Series 2005-A, Class A2 | ||||||||
4.490%, 05/15/2018 | 2,355 | 2,294 | ||||||
2,770 | ||||||||
Other – 1.2% | ||||||||
Global Signal Trust | ||||||||
Series 2006-1, Class E | ||||||||
6.495%, 02/15/2036 (d) | 1,255 | 1,243 | ||||||
GRP/ AG Real Estate Asset Trust | ||||||||
Series 2005-1, Class A | ||||||||
4.850%, 01/25/2035 (d) | 281 | 277 | ||||||
Small Business Administration | ||||||||
Series 2006-P10A, Class 1 | ||||||||
5.408%, 02/10/2016 | 3,397 | 3,301 | ||||||
4,821 | ||||||||
Recreational Vehicles – 0.5% | ||||||||
J.P. Morgan RV Marine Trust | ||||||||
Series 2004-1A, Class A1 | ||||||||
3.120%, 04/15/2011 (d) | 2,023 | 1,991 | ||||||
Total Asset-Backed Securities (Cost $79,022) | 77,373 | |||||||
The accompanying notes are an integral part of the financial statements.
50 First American Funds Annual Report 2006
Table of Contents
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 16.5% | ||||||||
Adjustable Rate (a) – 7.9% | ||||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-7, Class 2A1A | ||||||||
4.862%, 09/25/2035 | $ | 2,293 | $ | 2,222 | ||||
GMAC Mortgage Corporation Loan Trust | ||||||||
Series 2003-AR2, Class 4A1 | ||||||||
4.725%, 12/19/2033 | 2,699 | 2,580 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-AR1, Class B1 | ||||||||
4.858%, 01/25/2035 | 2,239 | 2,167 | ||||||
Indymac Index Mortgage Loan Trust | ||||||||
Series 2006-AR13, Class A1 | ||||||||
6.112%, 07/25/2036 | 2,961 | 2,970 | ||||||
Wachovia Mortgage Loan Trust | ||||||||
Series 2005-B, Class 1A1 | ||||||||
4.977%, 10/20/2035 | 1,700 | 1,672 | ||||||
Washington Mutual | ||||||||
Series 2003-AR1, Class A5 | ||||||||
3.970%, 03/25/2033 | 1,458 | 1,411 | ||||||
Series 2003-AR10, Class A6 | ||||||||
4.065%, 10/25/2033 | 3,765 | 3,639 | ||||||
Series 2004-AR7, Class A6 | ||||||||
3.943%, 07/25/2034 | 2,630 | 2,523 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-O, Class 5A1 | ||||||||
4.812%, 01/25/2034 | 3,414 | 3,273 | ||||||
Series 2005-AR10, Class 2A5 | ||||||||
4.110%, 06/25/2035 | 4,773 | 4,655 | ||||||
Series 2006-AR1, Class 2A2 | ||||||||
5.570%, 03/25/2036 | 4,827 | 4,677 | ||||||
31,789 | ||||||||
Fixed Rate – 8.6% | ||||||||
Bank of America Mortgage Securities | ||||||||
Series 2004-11, Class 1A8 | ||||||||
5.500%, 01/25/2035 | 4,250 | 3,963 | ||||||
Chase Mortgage Finance | ||||||||
Series 2003-S12, Class 1A1 | ||||||||
4.750%, 12/25/2018 | 3,025 | 2,892 | ||||||
Chaseflex Trust | ||||||||
Series 2005-2, Class 4A1 | ||||||||
5.000%, 05/25/2020 | 3,460 | 3,293 | ||||||
Citigroup Mortgage Loan Trust | ||||||||
Series 2005-WF1, Class A2 | ||||||||
4.490%, 02/25/2035 | 2,000 | 1,962 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-12CB, Class 1A1 | ||||||||
5.000%, 07/25/2019 | 1,696 | 1,636 | ||||||
Series 2004-24CB, Class 2A1 | ||||||||
5.000%, 11/25/2019 | 2,283 | 2,183 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-4F, Class B1 | ||||||||
5.727%, 05/25/2035 | 2,433 | 2,318 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities | ||||||||
Series 2001-CIB3, Class A2 | ||||||||
6.044%, 11/15/2035 | 4,085 | 4,111 | ||||||
Residential Funding Mortgage Securities I | ||||||||
Series 2004-S9, Class 2A1 | ||||||||
4.750%, 12/25/2019 | 1,575 | 1,496 | ||||||
Washington Mutual | ||||||||
Series 2004-CB1, Class 1A | ||||||||
5.250%, 06/25/2019 | 2,324 | 2,268 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2004-7, Class 2A2 | ||||||||
5.000%, 07/25/2019 | 5,014 | 4,787 | ||||||
Series 2004-8, Class A1 | ||||||||
5.000%, 08/25/2019 | 3,508 | 3,355 | ||||||
34,264 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities (Cost $67,388) | 66,053 | |||||||
U.S. Government & Agency Securities (b) – 7.1% U.S. Agency Debentures – 1.3% | ||||||||
Federal National Mortgage Association | ||||||||
5.250%, 08/01/2012 | 5,590 | 5,461 | ||||||
U.S. Treasuries – 5.8% | ||||||||
U.S. Treasury Bonds | ||||||||
9.000%, 11/15/2018 | 3,370 | 4,504 | ||||||
6.250%, 08/15/2023 | 1,920 | 2,118 | ||||||
6.875%, 08/15/2025 | 740 | 877 | ||||||
5.500%, 08/15/2028 | 650 | 668 | ||||||
5.375%, 02/15/2031 | 735 | 748 | ||||||
4.500%, 02/15/2036 | 2,260 | 2,026 | ||||||
U.S. Treasury Notes | ||||||||
4.500%, 02/28/2011 | 5,140 | 5,012 | ||||||
2.375%, 04/15/2011 | 4,212 | 4,195 | ||||||
4.500%, 02/15/2016 | 3,125 | 2,973 | ||||||
23,121 | ||||||||
Total U.S. Government & Agency Securities (Cost $29,618) | 28,582 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (b) – 6.6% | ||||||||
Fixed Rate – 6.6% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2893, Class PB | ||||||||
5.000%, 12/15/2027 | 3,440 | 3,348 | ||||||
Series 2937, Class JD | ||||||||
5.000%, 03/15/2028 | 4,000 | 3,887 | ||||||
Series 2690, Class OE | ||||||||
5.000%, 11/15/2028 | 4,000 | 3,867 | ||||||
Series 2901, Class UB | ||||||||
5.000%, 03/15/2033 | 5,000 | 4,624 | ||||||
Series 2987, Class KE | ||||||||
5.000%, 12/15/2034 | 1,920 | 1,827 | ||||||
Federal National Mortgage Association | ||||||||
Series 2005-44, Class PC | ||||||||
5.000%, 11/25/2027 | 2,750 | 2,666 | ||||||
Series 2003-81, Class MB | ||||||||
5.000%, 05/25/2029 | 3,375 | 3,274 | ||||||
Series 2005-62, Class JE | ||||||||
5.000%, 06/25/2035 | 2,990 | 2,906 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (Cost $27,034) | 26,399 | |||||||
First American Funds Annual Report 2006 51
Table of Contents
Schedule of Investments continued
Total Return Bond Fund (continued) | ||||||||
DESCRIPTION | PAR/SHARES | VALUE | ||||||
Municipal Bonds – 0.5% | ||||||||
Sullivan County Health, Education & Housing | ||||||||
Facilities, Hospital Revenue, Wellmont Health, | ||||||||
Class B, Callable 09/01/2010 @ 100 | ||||||||
6.950%, 09/01/2016 | ||||||||
Total Municipal Bonds (Cost $2,000) | $ | 2,000 | $ | 2,009 | ||||
Short-Term Investments – 3.0% | ||||||||
Money Market Fund – 2.5% | ||||||||
First American Prime Obligations Fund, Class Z (f) | 9,934,587 | 9,935 | ||||||
U.S. Treasury Obligations – 0.5% | ||||||||
U.S. Treasury Bills | ||||||||
4.629%, 09/07/2006 (g) | $ | 1,275 | 1,264 | |||||
4.780%, 11/02/2006 | 700 | 688 | ||||||
1,952 | ||||||||
Total Short Term Investments (Cost $11,887) | 11,887 | |||||||
Investments Purchased with Proceeds from Securities Lending (h) – 32.1% | ||||||||
(Cost $128,422) | 128,422 | |||||||
Total Investments – 135.5% (Cost $552,566) | 542,131 | |||||||
Other Assets and Liabilities, Net – (35.5)% | (142,099 | ) | ||||||
Total Net Assets – 100.0% | $ | 400,032 | ||||||
(a) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(b) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a market value of $126,069 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(c) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $16,064 or 4.0% of total net assets. See note 2 in Notes to Financial Statements. |
(d) | Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $27,595 or 6.9% of total net assets. See note 2 in Notes to Financial Statements. |
(e) | Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $19,258, which represents 4.8% of total net assets. |
(f) | Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements. |
(g) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(h) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various short-term fixed income securities, such as repurchase agreements, commercial paper, money market funds and other corporate obligations. See note 2 in Notes to Financial Statements. |
Schedule of Open Futures Contracts
Number of | ||||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||||
Australian Dollar Currency Futures | 48 | $ | 3,565 | September 2006 | $ | 32 | ||||||||||
Canadian Dollar Currency Futures | 133 | 11,931 | September 2006 | (75 | ) | |||||||||||
EuroBund Futures | 113 | 16,668 | September 2006 | (78 | ) | |||||||||||
Euro Currency Futures | 53 | 8,513 | September 2006 | 122 | ||||||||||||
Japan 10 Year Bond Futures | (10 | ) | (11,504 | ) | September 2006 | 28 | ||||||||||
Japanese Yen Currency Futures | 104 | 11,482 | September 2006 | 55 | ||||||||||||
Swiss Franc Currency Futures | 93 | 9,580 | September 2006 | 76 | ||||||||||||
U.S. Treasury 2 Year Note Futures | (79 | ) | (16,020 | ) | September 2006 | 57 | ||||||||||
U.S. Treasury 5 Year Note Futures | (329 | ) | (34,021 | ) | September 2006 | 116 | ||||||||||
U.S. Treasury 10 Year Note Futures | (274 | ) | (28,731 | ) | September 2006 | 101 | ||||||||||
U.S. Treasury Long Bond Futures | 82 | 8,746 | September 2006 | 56 | ||||||||||||
$ | 490 | |||||||||||||||
Credit Default Swap Agreements
Pay/ | ||||||||||||||||||||||||
Receive | Unrealized | |||||||||||||||||||||||
Reference | Buy/Sell | Fixed | Expiration | Notional | Appreciation | |||||||||||||||||||
Counterparty | Entity | Protection | Rate | Date | Amount | (Depreciation) | ||||||||||||||||||
Citigroup | Dow Jones CDX | |||||||||||||||||||||||
EM5 Index | Sell | 1.350% | 6/20/2011 | $ | 3,000 | $ | (6 | ) | ||||||||||||||||
J.P. Morgan | Dow Jones CDX | |||||||||||||||||||||||
IG Hvol6 Index | Sell | 0.750% | 6/20/2011 | 6,000 | 43 | |||||||||||||||||||
UBS | Dow Jones CDX | |||||||||||||||||||||||
IG Hvol6 Index | Sell | 0.750% | 6/20/2011 | 11,000 | 47 | |||||||||||||||||||
UBS | Dow Jones CDX | |||||||||||||||||||||||
HY6 Index | Sell | 3.450% | 6/20/2011 | 4,000 | (43 | ) | ||||||||||||||||||
$ | 41 | |||||||||||||||||||||||
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||||
Floating | Receive | |||||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Unrealized | |||||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | Depreciation | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.427% | 11/10/2008 | $ | 33,600 | $ | (141 | ) | |||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 4.818% | 1/17/2009 | 10,000 | (189 | ) | |||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 4.908% | 11/10/2008 | 15,000 | (233 | ) | |||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.660% | 6/19/2016 | 8,200 | (44 | ) | |||||||||||||||||
$ | (607 | ) | ||||||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
52 First American Funds Annual Report 2006
Table of Contents
U.S. Government Mortgage Fund | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
U.S. Government Agency Mortgage-Backed Securities – 99.6% | ||||||||
Adjustable Rate (a) – 3.0% | ||||||||
Federal National Mortgage Association Pool | ||||||||
4.871%, 09/01/2035, #745168 (b) | $ | 5,234 | $ | 5,061 | ||||
Fixed Rate – 96.6% | ||||||||
Federal Home Loan Mortgage Corporation Pool | ||||||||
7.500%, 04/01/2008, #E45929 | 11 | 11 | ||||||
7.000%, 07/01/2011, #E20252 | 34 | 34 | ||||||
7.000%, 11/01/2011, #E65619 | 3 | 3 | ||||||
7.500%, 09/01/2012, #G10735 | 162 | 168 | ||||||
6.000%, 10/01/2013, #E72802 | 283 | 283 | ||||||
5.500%, 01/01/2014, #E00617 | 1,029 | 1,011 | ||||||
7.000%, 09/01/2014, #E00746 | 178 | 182 | ||||||
5.000%, 04/01/2020, #B18125 | 3,469 | 3,340 | ||||||
6.000%, 09/01/2022, #C90580 | 728 | 726 | ||||||
6.500%, 01/01/2028, #G00876 | 462 | 466 | ||||||
6.500%, 11/01/2028, #C00676 | 982 | 992 | ||||||
7.500%, 01/01/2030, #C35768 | 65 | 68 | ||||||
6.500%, 03/01/2031, #G01244 | 753 | 762 | ||||||
5.000%, 09/01/2033, #C01622 | 2,223 | 2,086 | ||||||
Federal National Mortgage Association Pool | ||||||||
7.000%, 11/01/2011, #250738 | 16 | 16 | ||||||
7.000%, 11/01/2011, #349630 | 14 | 15 | ||||||
7.000%, 11/01/2011, #351122 | 21 | 21 | ||||||
6.000%, 04/01/2013, #425550 | 188 | 189 | ||||||
6.500%, 08/01/2013, #251901 | 156 | 158 | ||||||
6.000%, 11/01/2013, #556195 | 251 | 251 | ||||||
7.000%, 10/01/2014, #252799 | 120 | 123 | ||||||
5.500%, 07/01/2015 (c) | 4,000 | 3,925 | ||||||
5.500%, 04/01/2016, #580516 | 884 | 870 | ||||||
6.500%, 07/01/2017, #254373 | 1,050 | 1,065 | ||||||
7.000%, 07/01/2017, #254414 | 975 | 1,000 | ||||||
5.500%, 12/01/2017, #673010 (b) | 736 | 724 | ||||||
5.500%, 04/01/2018, #695765 | 915 | 900 | ||||||
4.500%, 05/01/2018, #254720 (b) | 4,411 | 4,179 | ||||||
5.000%, 07/01/2018, #555621 (b) | 1,507 | 1,455 | ||||||
5.000%, 11/01/2018, #750989 | 3,217 | 3,105 | ||||||
5.500%, 09/01/2019, #725793 | 4,073 | 4,004 | ||||||
6.000%, 12/01/2021, #254138 | 674 | 672 | ||||||
6.000%, 01/01/2022, #254179 | 798 | 795 | ||||||
6.500%, 06/01/2022, #254344 | 771 | 780 | ||||||
6.000%, 10/01/2022, #254513 (b) | 890 | 887 | ||||||
5.500%, 10/01/2024, #255456 (b) | 2,280 | 2,216 | ||||||
5.500%, 02/01/2025, #255628 (b) | 1,650 | 1,604 | ||||||
7.000%, 12/01/2027, #313941 | 548 | 562 | ||||||
7.000%, 09/01/2031, #596680 | 1,347 | 1,378 | ||||||
6.500%, 12/01/2031, #254169 (b) | 1,443 | 1,451 | ||||||
6.000%, 04/01/2032, #745101 | 4,204 | 4,191 | ||||||
6.500%, 06/01/2032, #596712 | 3,386 | 3,405 | ||||||
6.500%, 07/01/2032, #545759 | 1,579 | 1,593 | ||||||
7.000%, 07/01/2032, #545815 (b) | 334 | 343 | ||||||
6.000%, 08/01/2032, #656269 (b) | 1,094 | 1,090 | ||||||
5.500%, 03/01/2033, #689109 | 2,834 | 2,734 | ||||||
5.500%, 04/01/2033, #703392 (b) | 3,251 | 3,136 | ||||||
5.500%, 05/01/2033, #704523 | 2,397 | 2,312 | ||||||
5.500%, 06/01/2033, #843435 (b) | 3,800 | 3,666 | ||||||
5.500%, 07/01/2033, #726520 (b) | 3,200 | 3,087 | ||||||
5.500%, 07/01/2033, #728667 | 1,885 | 1,819 | ||||||
4.500%, 08/01/2033, #555680 (b) | 2,236 | 2,037 | ||||||
5.000%, 08/01/2033, #736158 (b) | 2,923 | 2,746 | ||||||
5.500%, 08/01/2033, #728855 | 1,849 | 1,784 | ||||||
5.500%, 08/01/2033, #733380 (b) | 2,458 | 2,371 | ||||||
5.000%, 09/01/2033, #734566 | 3,259 | 3,061 | ||||||
5.000%, 10/01/2033, #747533 (b) | 3,139 | 2,949 | ||||||
5.500%, 11/01/2033, #555967 (b) | 3,560 | 3,435 | ||||||
5.500%, 12/01/2033, #756202 (b) | 2,061 | 1,989 | ||||||
6.000%, 01/01/2034, #763687 | 2,977 | 2,936 | ||||||
5.500%, 04/01/2034, #774999 | 1,191 | 1,147 | ||||||
5.000%, 05/01/2034, #780889 (b) | 5,585 | 5,237 | ||||||
6.500%, 06/01/2034, #735273 (b) | 2,223 | 2,243 | ||||||
5.000%, 07/01/2034 (c) | 10,000 | 9,347 | ||||||
5.500%, 07/01/2034 (c) | 10,000 | 9,603 | ||||||
6.000%, 07/01/2034 (c) | 15,000 | 14,761 | ||||||
4.500%, 09/01/2034, #725866 | 1,326 | 1,205 | ||||||
5.000%, 09/01/2034, #725772 (b) | 5,177 | 4,855 | ||||||
5.500%, 03/01/2035, #815979 | 1,521 | 1,462 | ||||||
5.000%, 05/01/2035, #357883 (b) | 5,567 | 5,229 | ||||||
6.500%, 07/01/2035 (c) | 5,000 | 5,025 | ||||||
5.500%, 08/01/2035, #830953 | 492 | 472 | ||||||
5.500%, 01/01/2036, #850568 (c) | 4,867 | 4,678 | ||||||
Government National Mortgage Association Pool | ||||||||
8.000%, 01/15/2007, #315126 | 2 | 2 | ||||||
9.000%, 11/15/2009, #359559 | 21 | 21 | ||||||
8.000%, 10/15/2010, #414750 | 72 | 74 | ||||||
7.500%, 12/15/2022, #347332 | 107 | 112 | ||||||
7.000%, 09/15/2027, #455304 | 23 | 24 | ||||||
6.500%, 07/15/2028, #780825 | 801 | 813 | ||||||
6.500%, 08/20/2031, #003120 | 342 | 345 | ||||||
7.500%, 12/15/2031, #570134 | 312 | 326 | ||||||
6.000%, 09/15/2034, #633605 (b) | 2,360 | 2,344 | ||||||
162,486 | ||||||||
Total U.S. Government Agency Mortgage- Backed Securities (Cost $172,334) | 167,547 | |||||||
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities – 19.4% | ||||||||
Adjustable Rate (a) – 0.7% | ||||||||
Sequoia Mortgage Trust | ||||||||
Series 2004-5, Class X1 | ||||||||
0.800%, 06/20/2034 (d) | 47,845 | 364 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-D, Class A1 | ||||||||
4.800%, 03/25/2033 | 829 | 817 | ||||||
1,181 | ||||||||
Fixed Rate – 18.7% | ||||||||
Bank of America Mortgage Securities | ||||||||
Series 2004-11, Class 1A8 | ||||||||
5.500%, 01/25/2035 | 980 | 914 | ||||||
Chase Mortgage Finance Corporation | ||||||||
Series 2003-S10, Class A1 | ||||||||
4.750%, 11/25/2018 | 3,065 | 2,892 | ||||||
Countrywide Alternative Loan Trust | ||||||||
Series 2004-24CB, Class 1A1 | ||||||||
6.000%, 11/25/2034 | 1,784 | 1,745 | ||||||
GMAC Mortgage Corporation Loan Trust | ||||||||
Series 2004-J5, Class A7 | ||||||||
6.500%, 01/25/2035 | 1,976 | 1,972 | ||||||
GSR Mortgage Loan Trust | ||||||||
Series 2005-4F, Class B1 | ||||||||
5.727%, 05/25/2035 | 1,460 | 1,391 | ||||||
Master Alternative Loans Trust | ||||||||
Series 2005-2, Class 1A3 | ||||||||
6.500%, 03/25/2035 | 1,084 | 1,083 | ||||||
Master Asset Securitization Trust | ||||||||
Series 2003-6, Class 3A1 | ||||||||
5.000%, 07/25/2018 | 1,072 | 1,034 |
First American Funds Annual Report 2006 53
Table of Contents
Schedule of Investments continued
U.S. Government Mortgage Fund (continued) | ||||||||
DESCRIPTION | PAR | VALUE | ||||||
Morgan Stanley Mortgage Loan Trust | ||||||||
Series 2004-9, Class 1A | ||||||||
6.224%, 11/25/2034 | $ | 1,723 | $ | 1,711 | ||||
Residential Accredit Loans | ||||||||
Series 2003-QS12, Class M1 | ||||||||
5.000%, 06/25/2018 | 981 | 935 | ||||||
Residential Asset Mortgage Products | ||||||||
Series 2003-SL1, Class M1 | ||||||||
7.316%, 04/25/2031 | 2,786 | 2,835 | ||||||
Series 2004-SL4, Class A3 | ||||||||
6.500%, 07/25/2032 | 2,306 | 2,325 | ||||||
Residential Funding Mortgage Securitization Trust | ||||||||
Series 2003-S8, Class A1 | ||||||||
5.000%, 05/25/2018 | 2,794 | 2,716 | ||||||
Washington Mutual | ||||||||
Series 2003-S10, Class A2 | ||||||||
5.000%, 10/25/2018 | 2,597 | 2,526 | ||||||
Series 2003-S13, Class 21A1 | ||||||||
4.500%, 12/25/2018 | 2,214 | 2,085 | ||||||
Washington Mutual MSC Mortgage | ||||||||
Series 2003-MS9, Class CB1 | ||||||||
7.449%, 04/25/2033 | 1,629 | 1,660 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series 2003-14, Class A1 | ||||||||
4.750%, 12/25/2018 | 3,836 | 3,616 | ||||||
31,440 | ||||||||
Total Collateralized Mortgage Obligation – Private Mortgage-Backed Securities (Cost $33,966) | 32,621 | |||||||
Asset-Backed Securities – 4.6% | ||||||||
Commercial – 3.8% | ||||||||
Banc of America Commercial Mortgage | ||||||||
Series 2006-2, Class A4 | ||||||||
5.741%, 05/10/2045 | 2,545 | 2,530 | ||||||
Greenwich Capital Commercial Funding | ||||||||
Series 2005-GG5, Class A5 | ||||||||
5.224%, 04/10/2037 | 4,000 | 3,815 | ||||||
6,345 | ||||||||
Home Equity – 0.0% | ||||||||
GRMT Mortgage Loan Trust | ||||||||
Series 2001-1A, Class M1 | ||||||||
7.772%, 07/20/2031 (e) | 73 | 73 | ||||||
Manufactured Housing – 0.4% | ||||||||
Origen Manufactured Housing | ||||||||
Series 2005-B, Class M1 | ||||||||
5.990%, 01/15/2037 | 750 | 719 | ||||||
Other – 0.4% | ||||||||
Global Signal Trust | ||||||||
Series 2006-1, Class E | ||||||||
6.495%, 02/15/2036 (e) | 625 | 619 | ||||||
Total Asset-Backed Securities (Cost $7,842) | 7,756 | |||||||
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities – 2.0% | ||||||||
Fixed Rate – 2.0% | ||||||||
Federal Home Loan Mortgage Corporation | ||||||||
Series 2382, Class DA | ||||||||
5.500%, 10/15/2030 | 371 | 369 | ||||||
Federal National Mortgage Association | ||||||||
Series 2004-29, Class WG | ||||||||
4.500%, 05/25/2019 | 2,000 | 1,803 | ||||||
Series 2002-W1, Class 2A | ||||||||
7.500%, 02/25/2042 | 1,179 | 1,209 | ||||||
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities (Cost $3,492) | 3,381 | |||||||
Short-Term Investments – 2.6% | ||||||||
Money Market Fund – 2.5% | ||||||||
First American Government Obligations Fund, Class Z (f) | 4,102,426 | 4,102 | ||||||
U.S. Treasury Obligation – 0.1% | ||||||||
U.S. Treasury Bill | ||||||||
4.629%, 09/07/2006 (g) | $ | 195 | 194 | |||||
Total Short-Term Investments (Cost $4,296) | 4,296 | |||||||
Investments Purchased with Proceeds from Securities Lending (h) – 38.9% | ||||||||
(Cost $65,521) | 65,521 | |||||||
Total Investments – 167.1% (Cost $287,451) | 281,122 | |||||||
Other Assets and Liabilities, Net – (67.1)% | (112,927 | ) | ||||||
Total Net Assets – 100.0% | $ | 168,195 | ||||||
(a) | Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006. |
(b) | This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $64,334 at June 30, 2006. See note 2 in Notes to Financial Statements. |
(c) | Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $47,445 or 28.2% of total net assets. See note 2 in Notes to Financial Statements. |
(d) | Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. |
(e) | Interest rate disclosed represents the coupon rate in effect as of June 30, 2006. Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $692 or 0.4% of total net assets. See note 2 in Notes to Financial Statements. |
(f) | 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. |
(g) | Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements. |
(h) | The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
54 First American Funds Annual Report 2006
Table of Contents
U.S. Government Mortgage Fund (concluded)
Schedule of Open Futures Contracts
Number of | ||||||||||||||||
Contracts | Notional | Unrealized | ||||||||||||||
Purchased | Contract | Settlement | Appreciation | |||||||||||||
Description | (Sold) | Value | Month | (Depreciation) | ||||||||||||
U.S. Treasury 2 Year Note Futures | 59 | $ | 11,964 | September 2006 | $ | (47 | ) | |||||||||
U.S. Treasury 5 Year Note Futures | (233 | ) | (24,094 | ) | September 2006 | 34 | ||||||||||
U.S. Treasury 10 Year Note Futures | (185 | ) | (19,399 | ) | September 2006 | 83 | ||||||||||
$ | 70 | |||||||||||||||
Interest Rate Swap Agreements
Pay/ | ||||||||||||||||||||||||
Floating | Receive | |||||||||||||||||||||||
Rate | Floating | Fixed | Expiration | Notional | Unrealized | |||||||||||||||||||
Counterparty | Index | Rate | Rate | Date | Amount | Depreciation | ||||||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.427% | 11/10/2008 | $ | 15,000 | $ | (63 | ) | |||||||||||||||
Citigroup | 3-Month LIBOR | Pay | 5.660% | 6/19/2016 | 3,400 | (18 | ) | |||||||||||||||||
$ | (81 | ) | ||||||||||||||||||||||
First American Funds Annual Report 2006 55
Table of Contents
Statements of Assets and Liabilities June 30, 2006, all dollars are rounded to thousands (000), except for per share data
Inflation | Intermediate | |||||||||||||||||||||
Core Bond | High Income | Protected | Government | |||||||||||||||||||
Fund | Bond Fund | Securities Fund | Bond Fund | |||||||||||||||||||
Investments in unaffiliated securities, at cost | $ | 1,924,746 | $ | 248,083 | $ | 331,821 | $ | 45,525 | ||||||||||||||
Investments in affiliated money market fund, at cost | 52,047 | 1,251 | 3,949 | 235 | ||||||||||||||||||
Investments purchased with proceeds from securities lending, at cost (note 2) | 817,952 | 46,723 | 157,853 | — | ||||||||||||||||||
Cash denominated in foreign currencies, at cost | — | — | 127 | — | ||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Investments in unaffiliated securities, at value* (note 2) | $ | 1,864,495 | $ | 242,716 | $ | 317,496 | $ | 44,229 | ||||||||||||||
Investments in affiliated money market fund, at value (note 2) | 52,047 | 1,251 | 3,949 | 235 | ||||||||||||||||||
Investments purchased with proceeds from securities lending, at value (note 2) | 817,952 | 46,723 | 157,853 | — | ||||||||||||||||||
Cash | 4 | — | 134 | — | ||||||||||||||||||
Receivable for dividends and interest | 14,322 | 4,826 | 3,895 | 429 | ||||||||||||||||||
Receivable for investment securities sold | 2,317 | 3,630 | 4,838 | 318 | ||||||||||||||||||
Receivable for capital shares sold | 1,641 | 78 | 851 | — | ||||||||||||||||||
Receivable for variation margin | — | 1 | 151 | — | ||||||||||||||||||
Prepaid expenses and other assets | 14 | 16 | 7 | 6 | ||||||||||||||||||
Total assets | 2,752,792 | 299,241 | 489,174 | 45,217 | ||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Cash denominated in foreign currencies, at value | — | — | 134 | — | ||||||||||||||||||
Bank overdraft | — | 18 | — | — | ||||||||||||||||||
Payable upon return of securities loaned (note 2) | 817,952 | 46,723 | 157,853 | — | ||||||||||||||||||
Payable for investment securities purchased | — | 1,017 | 6,585 | 502 | ||||||||||||||||||
Payable for investment securities purchased on a when-issued basis | 95,795 | — | — | — | ||||||||||||||||||
Payable for capital shares redeemed | 2,633 | 253 | 255 | 191 | ||||||||||||||||||
Payable for variation margin | 330 | — | — | — | ||||||||||||||||||
Payable for swap contracts | 875 | 111 | 577 | — | ||||||||||||||||||
Payable to affiliates (note 3) | 1,137 | 178 | 164 | 24 | ||||||||||||||||||
Payable for distribution and shareholder servicing fees | 37 | 20 | 2 | — | ||||||||||||||||||
Accrued expenses and other liabilities | 47 | 32 | 32 | 30 | ||||||||||||||||||
Total liabilities | 918,806 | 48,352 | 165,602 | 747 | ||||||||||||||||||
Net assets | $ | 1,833,986 | $ | 250,889 | $ | 323,572 | $ | 44,470 | ||||||||||||||
COMPOSITION OF NET ASSETS: | ||||||||||||||||||||||
Portfolio capital | $ | 1,918,272 | $ | 262,778 | $ | 341,090 | $ | 47,337 | ||||||||||||||
Undistributed net investment income | 1,523 | 180 | 1,400 | 34 | ||||||||||||||||||
Accumulated net realized loss on investments (note 2) | (25,898 | ) | (6,732 | ) | (4,503 | ) | (1,605 | ) | ||||||||||||||
Net unrealized depreciation of investments | (60,251 | ) | (5,367 | ) | (14,325 | ) | (1,296 | ) | ||||||||||||||
Net unrealized appreciation on futures contracts | 821 | 38 | 436 | — | ||||||||||||||||||
Net unrealized depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | (7 | ) | — | |||||||||||||||||
Net unrealized depreciation on swap agreements | (481 | ) | (8 | ) | (519 | ) | — | |||||||||||||||
Net assets | $ | 1,833,986 | $ | 250,889 | $ | 323,572 | $ | 44,470 | ||||||||||||||
*Including securities loaned, at value | $ | 804,157 | $ | 45,881 | $ | 155,556 | — | |||||||||||||||
The accompanying notes are an integral part of the financial statements.
56 First American Funds Annual Report 2006
Table of Contents
Intermediate Term | Short Term | Total Return | U.S. Government | |||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | |||||||||||||||||||
$ | 957,629 | $ | 533,967 | $ | 414,209 | $ | 217,828 | |||||||||||||||
— | 8,058 | 9,935 | 4,102 | |||||||||||||||||||
340,793 | 180,013 | 128,422 | 65,521 | |||||||||||||||||||
— | — | 314 | — | |||||||||||||||||||
$ | 930,544 | $ | 523,594 | $ | 403,774 | $ | 211,499 | |||||||||||||||
— | 8,058 | 9,935 | 4,102 | |||||||||||||||||||
340,793 | 180,013 | 128,422 | 65,521 | |||||||||||||||||||
424 | 7 | 554 | — | |||||||||||||||||||
8,325 | 4,118 | 3,462 | 830 | |||||||||||||||||||
114 | 286 | 1,575 | 15,972 | |||||||||||||||||||
748 | 901 | 846 | 132 | |||||||||||||||||||
— | — | 19 | — | |||||||||||||||||||
7 | 8 | 13 | 10 | |||||||||||||||||||
1,280,955 | 716,985 | 548,600 | 298,066 | |||||||||||||||||||
— | — | 319 | — | |||||||||||||||||||
— | — | — | 99 | |||||||||||||||||||
340,793 | 180,013 | 128,422 | 65,521 | |||||||||||||||||||
— | — | 2,010 | 16,004 | |||||||||||||||||||
— | — | 16,064 | 47,445 | |||||||||||||||||||
1,124 | 831 | 759 | 447 | |||||||||||||||||||
146 | 32 | — | 98 | |||||||||||||||||||
867 | 2,335 | 698 | 113 | |||||||||||||||||||
509 | 292 | 255 | 100 | |||||||||||||||||||
5 | 10 | 8 | 13 | |||||||||||||||||||
40 | 36 | 33 | 31 | |||||||||||||||||||
343,484 | 183,549 | 148,568 | 129,871 | |||||||||||||||||||
$ | 937,471 | $ | 533,436 | $ | 400,032 | $ | 168,195 | |||||||||||||||
$ | 980,665 | $ | 561,354 | $ | 425,121 | $ | 180,975 | |||||||||||||||
787 | 256 | 546 | 22 | |||||||||||||||||||
(16,598 | ) | (15,771 | ) | (15,119 | ) | (6,462 | ) | |||||||||||||||
(27,085 | ) | (10,373 | ) | (10,435 | ) | (6,329 | ) | |||||||||||||||
334 | 267 | 490 | 70 | |||||||||||||||||||
— | — | (5 | ) | — | ||||||||||||||||||
(632 | ) | (2,297 | ) | (566 | ) | (81 | ) | |||||||||||||||
$ | 937,471 | $ | 533,436 | $ | 400,032 | $ | 168,195 | |||||||||||||||
$ | 334,380 | $ | 175,789 | $ | 126,069 | $ | 64,333 | |||||||||||||||
First American Funds Annual Report 2006 57
Table of Contents
Statements of Assets and Liabilities continued
Inflation | Intermediate | ||||||||||||||||||||||
Core Bond | High Income | Protected | Government | ||||||||||||||||||||
Fund | Bond Fund | Securities Fund | Bond Fund | ||||||||||||||||||||
Class A: | |||||||||||||||||||||||
Net assets | $ | 134,845 | $ | 29,573 | $ | 5,042 | $ | 1,689 | |||||||||||||||
Shares issued and outstanding ($0.0001 par value — 2 billion authorized) | 12,596 | 3,207 | 528 | 211 | |||||||||||||||||||
Net asset value and redemption price per share | $ | 10.71 | $ | 9.22 | $ | 9.54 | $ | 7.99 | |||||||||||||||
Maximum offering price per share (1) | $ | 11.19 | $ | 9.63 | $ | 9.96 | $ | 8.17 | |||||||||||||||
Class B: | |||||||||||||||||||||||
Net assets | $ | 13,819 | $ | 5,988 | — | — | |||||||||||||||||
Shares issued and outstanding ($0.0001 par value — 2 billion authorized) | 1,300 | 652 | — | — | |||||||||||||||||||
Net asset value, offering price, and redemption price per share (2) | $ | 10.63 | $ | 9.18 | — | — | |||||||||||||||||
Class C: | |||||||||||||||||||||||
Net assets | $ | 5,183 | $ | 9,873 | $ | 552 | — | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value — 2 billion authorized) | 486 | 1,075 | 58 | — | |||||||||||||||||||
Net asset value per share (2) | $ | 10.67 | $ | 9.19 | $ | 9.53 | — | ||||||||||||||||
Class R: | |||||||||||||||||||||||
Net assets | $ | 34 | $ | 73 | $ | 1 | — | ||||||||||||||||
Shares issued and outstanding ($0.0001 par value — 2 billion authorized) | 3 | 8 | — | — | |||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.73 | $ | 9.35 | $ | 9.55 | — | ||||||||||||||||
Class Y: | |||||||||||||||||||||||
Net assets | $ | 1,680,105 | $ | 205,382 | $ | 317,977 | $ | 42,781 | |||||||||||||||
Shares issued and outstanding ($0.0001 par value — 2 billion authorized) | 156,977 | 22,260 | 33,301 | 5,352 | |||||||||||||||||||
Net asset value, offering price, and redemption price per share | $ | 10.70 | $ | 9.23 | $ | 9.55 | $ | 7.99 | |||||||||||||||
(1) | The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements. | |
(2) | Class B and C have a contingent deferred sales charge. For a description of this sales charges, see notes 1 and 3 in Notes to Financial Statements. |
The accompanying notes are an integral part of the financial statements.
58 First American Funds Annual Report 2006
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Intermediate Term | Short Term | Total Return | U.S. Government | |||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | |||||||||||||||||||
$ | 38,296 | $ | 78,771 | $ | 15,522 | $ | 16,059 | |||||||||||||||
3,956 | 8,014 | 1,575 | 1,577 | |||||||||||||||||||
$ | 9.68 | $ | 9.83 | $ | 9.86 | $ | 10.18 | |||||||||||||||
$ | 9.90 | $ | 10.06 | $ | 10.30 | $ | 10.63 | |||||||||||||||
— | — | $ | 3,657 | $ | 6,595 | |||||||||||||||||
— | — | 373 | 646 | |||||||||||||||||||
— | — | $ | 9.82 | $ | 10.20 | |||||||||||||||||
— | — | $ | 2,501 | $ | 5,127 | |||||||||||||||||
— | — | 255 | 505 | |||||||||||||||||||
— | — | $ | 9.80 | $ | 10.15 | |||||||||||||||||
— | — | $ | 14 | $ | 7 | |||||||||||||||||
— | — | 1 | 1 | |||||||||||||||||||
— | — | $ | 9.90 | $ | 10.17 | |||||||||||||||||
$ | 899,175 | �� | $ | 454,665 | $ | 378,338 | $ | 140,407 | ||||||||||||||
93,202 | 46,240 | 38,406 | 13,783 | |||||||||||||||||||
$ | 9.65 | $ | 9.83 | $ | 9.85 | $ | 10.19 | |||||||||||||||
First American Funds Annual Report 2006 59
Table of Contents
Statements of Operations all dollars are rounded to thousands (000)
Inflation | ||||||||||||||||||||||||||||
Core | High Income | Protected | ||||||||||||||||||||||||||
Bond Fund | Bond Fund | Securities Fund | ||||||||||||||||||||||||||
Nine-Month | Year | Nine-Month | Year | Nine-Month | Year | |||||||||||||||||||||||
Period Ended | Ended | Period Ended | Ended | Period Ended | Ended | |||||||||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | |||||||||||||||||||||||
INVESTMENT INCOME: | ||||||||||||||||||||||||||||
Interest income from unaffiliated securities | $ | 66,042 | $ | 83,761 | $ | 15,087 | $ | 21,756 | $ | 14,040 | $ | 9,511 | ||||||||||||||||
Dividends from affiliated money market fund | 2,242 | 1,058 | 159 | 77 | 132 | 88 | ||||||||||||||||||||||
Dividends from unaffiliated securities | — | — | 271 | 64 | — | — | ||||||||||||||||||||||
Securities lending income | 1,027 | 871 | 77 | 165 | 129 | 40 | ||||||||||||||||||||||
Total investment income | 69,311 | 85,690 | 15,594 | 22,062 | 14,301 | 9,639 | ||||||||||||||||||||||
EXPENSES (note 3): | ||||||||||||||||||||||||||||
Investment advisory fees | 7,018 | 9,590 | 1,357 | 1,955 | 1,131 | 851 | ||||||||||||||||||||||
Administration fees | 1,777 | 3,962 | 258 | 598 | 289 | 335 | ||||||||||||||||||||||
Transfer agent fees | 1,903 | 1,223 | 268 | 173 | 312 | 131 | ||||||||||||||||||||||
Custodian fees | 70 | 168 | 12 | 25 | 13 | 14 | ||||||||||||||||||||||
Registration fees | 43 | 41 | 41 | 41 | 40 | 30 | ||||||||||||||||||||||
Professional fees | 44 | 119 | 43 | 27 | 46 | 63 | ||||||||||||||||||||||
Postage and printing fees | 54 | 65 | 10 | 14 | 8 | 6 | ||||||||||||||||||||||
Directors’ fees | 21 | 44 | 11 | 6 | 12 | 4 | ||||||||||||||||||||||
Other expenses | 25 | 41 | 17 | 10 | 16 | 6 | ||||||||||||||||||||||
Distribution and shareholder servicing fees – Class A | 280 | 431 | 65 | 100 | 12 | 8 | ||||||||||||||||||||||
Distribution and shareholder servicing fees – Class B | 116 | 192 | 50 | 80 | — | — | ||||||||||||||||||||||
Distribution and shareholder servicing fees – Class C | 46 | 81 | 86 | 151 | 6 | 5 | ||||||||||||||||||||||
Distribution and shareholder servicing fees – Class R | — | (1) | — | (1) | — | (1) | — | (1) | — | (1) | — | (1) | ||||||||||||||||
Total expenses | 11,397 | 15,957 | 2,218 | 3,180 | 1,885 | 1,453 | ||||||||||||||||||||||
Less: Fee waivers (note 3) | (1,039 | ) | (1,827 | ) | (365 | ) | (690 | ) | (507 | ) | (419 | ) | ||||||||||||||||
Less: Indirect payments from custodian (note 3) | (55 | ) | — | (2 | ) | — | (1 | ) | — | |||||||||||||||||||
Total net expenses | 10,303 | 14,130 | 1,851 | 2,490 | 1,377 | 1,034 | ||||||||||||||||||||||
Investment income – net | 59,008 | 71,560 | 13,743 | 19,572 | 12,924 | 8,605 | ||||||||||||||||||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FUTURES CONTRACTS, WRITTEN OPTIONS, FOREIGN CURRENCY TRANSACTIONS AND SWAP AGREEMENTS – NET (note 5): | ||||||||||||||||||||||||||||
Net realized gain (loss) on investments | (20,529 | ) | 13,556 | 2,412 | 7,856 | (4,813 | ) | (139 | ) | |||||||||||||||||||
Net realized gain (loss) on futures contracts | 1,242 | (4,532 | ) | 382 | 573 | 427 | 11 | |||||||||||||||||||||
Net realized gain (loss) on written options | — | 1,881 | — | — | — | 94 | ||||||||||||||||||||||
Net realized gain (loss) on swap agreements | (564 | ) | 727 | 257 | 272 | 7 | 133 | |||||||||||||||||||||
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | — | 3 | — | ||||||||||||||||||||||
Net change in unrealized appreciation or depreciation of investments | (43,955 | ) | (28,161 | ) | (8,241 | ) | (9,575 | ) | (12,920 | ) | (1,405 | ) | ||||||||||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 719 | 1,442 | (34 | ) | 27 | 500 | (64 | ) | ||||||||||||||||||||
Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | — | (7 | ) | — | |||||||||||||||||||||
Net change in unrealized appreciation or depreciation of swap agreements | (432 | ) | (49 | ) | (98 | ) | 90 | (609 | ) | 90 | ||||||||||||||||||
Net loss on investments, futures contracts, written options, foreign currency transactions and swap agreements | (63,519 | ) | (15,136 | ) | (5,322 | ) | (757 | ) | (17,412 | ) | (1,280 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (4,511 | ) | $ | 56,424 | $ | 8,421 | $ | 18,815 | $ | (4,488 | ) | $ | 7,325 | ||||||||||||||
(1) | Due to the presentation of the financial statements in thousands, the numbers round to zero. |
The accompanying notes are an integral part of the financial statements.
60 First American Funds Annual Report 2006
Table of Contents
Intermediate | ||||||||||||||||||||||||||||||||||||||||||||||
Government | Intermediate Term | Short Term | Total Return | U.S. Government | ||||||||||||||||||||||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||||||||||
Nine-Month | Year | Nine-Month | Year | Nine-Month | Year | Nine-Month | Year | Nine-Month | Year | |||||||||||||||||||||||||||||||||||||
Period Ended | Ended | Period Ended | Ended | Period Ended | Ended | Period Ended | Ended | Period Ended | Ended | |||||||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | |||||||||||||||||||||||||||||||||||||
$ | 1,820 | $ | 3,623 | $ | 34,429 | $ | 48,761 | $ | 17,683 | $ | 31,398 | $ | 13,182 | $ | 14,221 | $ | 7,042 | $ | 9,743 | |||||||||||||||||||||||||||
11 | 15 | 311 | 222 | 396 | 169 | 628 | 365 | 70 | 151 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | 24 | — | — | |||||||||||||||||||||||||||||||||||||
— | — | 672 | 553 | 132 | 146 | 142 | 67 | 30 | 34 | |||||||||||||||||||||||||||||||||||||
1,831 | 3,638 | 35,412 | 49,536 | 18,211 | 31,713 | 13,952 | 14,677 | 7,142 | 9,928 | |||||||||||||||||||||||||||||||||||||
213 | 463 | 3,821 | 6,091 | 2,361 | 4,630 | 1,615 | 1,906 | 684 | 1,045 | |||||||||||||||||||||||||||||||||||||
58 | 199 | 974 | 2,541 | 604 | 1,960 | 346 | 594 | 183 | 445 | |||||||||||||||||||||||||||||||||||||
61 | 54 | 1,033 | 760 | 640 | 555 | 368 | 183 | 189 | 132 | |||||||||||||||||||||||||||||||||||||
2 | 8 | 38 | 107 | 24 | 83 | 21 | 25 | 8 | 18 | |||||||||||||||||||||||||||||||||||||
27 | 24 | 30 | 21 | 29 | 22 | 49 | 41 | 41 | 43 | |||||||||||||||||||||||||||||||||||||
43 | 17 | 39 | 74 | 37 | 59 | 51 | 27 | 43 | 23 | |||||||||||||||||||||||||||||||||||||
2 | 3 | 23 | 43 | 16 | 33 | 9 | 21 | 6 | 7 | |||||||||||||||||||||||||||||||||||||
10 | 2 | 16 | 28 | 13 | 22 | 12 | 7 | 11 | 5 | |||||||||||||||||||||||||||||||||||||
15 | 6 | 20 | 28 | 18 | 23 | 17 | 10 | 16 | 9 | |||||||||||||||||||||||||||||||||||||
3 | 5 | 81 | 138 | 164 | 282 | 33 | 50 | 38 | 71 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 30 | 48 | 55 | 87 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | 20 | 34 | 43 | 84 | |||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | (1) | — | (1) | — | (1) | — | (1) | |||||||||||||||||||||||||||||||||
434 | 781 | 6,075 | 9,831 | 3,906 | 7,669 | 2,571 | 2,946 | 1,317 | 1,969 | |||||||||||||||||||||||||||||||||||||
(174 | ) | (223 | ) | (1,388 | ) | (2,439 | ) | (953 | ) | (1,945 | ) | (451 | ) | (691 | ) | (222 | ) | (264 | ) | |||||||||||||||||||||||||||
(2 | ) | — | (47 | ) | — | (14 | ) | — | (7 | ) | — | (1 | ) | — | ||||||||||||||||||||||||||||||||
258 | 558 | 4,640 | 7,392 | 2,939 | 5,724 | 2,113 | 2,255 | 1,094 | 1,705 | |||||||||||||||||||||||||||||||||||||
1,573 | 3,080 | 30,772 | 42,144 | 15,272 | 25,989 | 11,839 | 12,422 | 6,048 | 8,223 | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||
(1,404 | ) | 54 | (12,420 | ) | (2,596 | ) | (4,403 | ) | (6,244 | ) | (4,994 | ) | 5,824 | (1,518 | ) | 696 | ||||||||||||||||||||||||||||||
— | 64 | 1,169 | (730 | ) | 2,746 | (2,529 | ) | 1,189 | (465 | ) | 502 | 43 | ||||||||||||||||||||||||||||||||||
— | 63 | — | 1,217 | — | 142 | 8 | 157 | — | (102 | ) | ||||||||||||||||||||||||||||||||||||
— | — | (320 | ) | 639 | (825 | ) | 783 | (51 | ) | 857 | (24 | ) | — | |||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (12 | ) | (6 | ) | — | — | |||||||||||||||||||||||||||||||||||
(4 | ) | (2,006 | ) | (15,431 | ) | (18,673 | ) | (445 | ) | (7,121 | ) | (8,227 | ) | (8,750 | ) | (4,359 | ) | (3,451 | ) | |||||||||||||||||||||||||||
— | 53 | 227 | 624 | (703 | ) | 1,494 | 588 | 165 | (36 | ) | 112 | |||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | (3 | ) | (2 | ) | — | — | |||||||||||||||||||||||||||||||||||
— | — | (605 | ) | (27 | ) | (148 | ) | (2,149 | ) | (559 | ) | (7 | ) | (81 | ) | — | ||||||||||||||||||||||||||||||
(1,408 | ) | (1,772 | ) | (27,380 | ) | (19,546 | ) | (3,778 | ) | (15,624 | ) | (12,061 | ) | (2,227 | ) | (5,516 | ) | (2,702 | ) | |||||||||||||||||||||||||||
$ | 165 | $ | 1,308 | $ | 3,392 | $ | 22,598 | $ | 11,494 | $ | 10,365 | $ | (222 | ) | $ | 10,195 | $ | 532 | $ | 5,521 | ||||||||||||||||||||||||||
First American Funds Annual Report 2006 61
Table of Contents
Statements of Changes in Net Assets all dollars are rounded to thousands (000)
Core Bond | |||||||||||||||
Fund | |||||||||||||||
Nine-Month | |||||||||||||||
Period Ended | Year Ended | Year Ended | |||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||
OPERATIONS: | |||||||||||||||
Investment income – net | $ | 59,008 | $ | 71,560 | $ | 73,461 | |||||||||
Net realized gain (loss) on investments | (20,529 | ) | 13,556 | 18,668 | |||||||||||
Net realized gain (loss) on futures contracts | 1,242 | (4,532 | ) | (4,060 | ) | ||||||||||
Net realized gain (loss) on written options | — | 1,881 | 2,256 | ||||||||||||
Net realized gain (loss) on swap agreements | (564 | ) | 727 | — | |||||||||||
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | ||||||||||||
Net change in unrealized appreciation or depreciation of investments | (43,955 | ) | (28,161 | ) | (35,329 | ) | |||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 719 | 1,442 | (1,340 | ) | |||||||||||
Net change in unrealized appreciation or depreciation of written options | — | — | 343 | ||||||||||||
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | ||||||||||||
Net change in unrealized appreciation or depreciation of swap agreements | (432 | ) | (49 | ) | — | ||||||||||
Net increase (decrease) in net assets resulting from operations | (4,511 | ) | 56,424 | 53,999 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||
Investment income – net: | |||||||||||||||
Class A | (4,573 | ) | (6,383 | ) | (6,707 | ) | |||||||||
Class B | (390 | ) | (572 | ) | (691 | ) | |||||||||
Class C | (154 | ) | (240 | ) | (311 | ) | |||||||||
Class R | (1 | ) | — | (773 | ) | ||||||||||
Class Y | (55,592 | ) | (68,228 | ) | (70,747 | ) | |||||||||
Net realized gain on investments: | |||||||||||||||
Class A | (961 | ) | (120 | ) | (2,811 | ) | |||||||||
Class B | (99 | ) | (14 | ) | (404 | ) | |||||||||
Class C | (39 | ) | (6 | ) | (191 | ) | |||||||||
Class R | — | — | (591 | ) | |||||||||||
Class Y | (10,418 | ) | (1,148 | ) | (28,710 | ) | |||||||||
Return of capital: | |||||||||||||||
Class A | — | — | — | ||||||||||||
Class B | — | — | — | ||||||||||||
Class C | — | — | — | ||||||||||||
Class R | — | — | — | ||||||||||||
Class Y | — | — | — | ||||||||||||
Total distributions | (72,227 | ) | (76,711 | ) | (111,936 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from sales | 13,680 | 23,283 | 64,537 | ||||||||||||
Reinvestment of distributions | 4,002 | 5,127 | 7,247 | ||||||||||||
Payments for redemptions | (38,200 | ) | (50,134 | ) | (73,658 | ) | |||||||||
Increase (decrease) in net assets from Class A transactions | (20,518 | ) | (21,724 | ) | (1,874 | ) | |||||||||
Class B: | |||||||||||||||
Proceeds from sales | 392 | 1,003 | 1,965 | ||||||||||||
Reinvestment of distributions | 443 | 514 | 948 | ||||||||||||
Payments for redemptions | (3,458 | ) | (5,294 | ) | (9,240 | ) | |||||||||
Decrease in net assets from Class B transactions | (2,623 | ) | (3,777 | ) | (6,327 | ) | |||||||||
Class C: | |||||||||||||||
Proceeds from sales | 499 | 884 | 1,348 | ||||||||||||
Reinvestment of distributions | 187 | 239 | 491 | ||||||||||||
Payments for redemptions | (2,513 | ) | (2,913 | ) | (5,799 | ) | |||||||||
Increase (decrease) in net assets from Class C transactions | (1,827 | ) | (1,790 | ) | (3,960 | ) | |||||||||
Class R: | |||||||||||||||
Proceeds from sales | 21 | 15 | 6,356 | ||||||||||||
Reinvestment of distributions | 1 | — | 1,329 | ||||||||||||
Payments for redemptions | (2 | ) | — | (46,072 | ) | ||||||||||
Increase (decrease) in net assets from Class R transactions | 20 | 15 | (38,387 | ) | |||||||||||
Class Y: | |||||||||||||||
Proceeds from sales | 371,109 | 403,595 | 394,559 | ||||||||||||
Reinvestment of distributions | 21,911 | 22,339 | 40,091 | ||||||||||||
Payments for redemptions | (368,968 | ) | (422,205 | ) | (599,130 | ) | |||||||||
Increase (decrease) in net assets from Class Y transactions | 24,052 | 3,729 | (164,480 | ) | |||||||||||
Increase (decrease) in net assets from capital share transactions | (896 | ) | (23,547 | ) | (215,028 | ) | |||||||||
Total increase (decrease) in net assets | (77,634 | ) | (43,834 | ) | (272,965 | ) | |||||||||
Net assets at beginning of period | 1,911,620 | 1,955,454 | 2,228,419 | ||||||||||||
Net assets at end of period | $ | 1,833,986 | $ | 1,911,620 | $ | 1,955,454 | |||||||||
Undistributed net investment income | $ | 1,523 | $ | 868 | $ | 380 | |||||||||
(1) | No prior period presentation as fund commenced operations on October 1, 2004. | |
(2) | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
The accompanying notes are an integral part of the financial statements.
62 First American Funds Annual Report 2006
Table of Contents
Inflation | Intermediate | |||||||||||||||||||||||||||||||||||
High Income | Protected | Government | ||||||||||||||||||||||||||||||||||
Bond Fund | Securities Fund | Bond Fund | ||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended (1) | Period Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||||||||
$ | 13,743 | $ | 19,572 | $ | 20,792 | $ | 12,924 | $ | 8,605 | $ | 1,573 | $ | 3,080 | $ | 5,648 | |||||||||||||||||||||
2,412 | 7,856 | 12,424 | (4,813 | ) | (139 | ) | (1,404 | ) | 54 | 5,815 | ||||||||||||||||||||||||||
382 | 573 | (261 | ) | 427 | 11 | — | 64 | (293 | ) | |||||||||||||||||||||||||||
— | — | 75 | — | 94 | — | 63 | 279 | |||||||||||||||||||||||||||||
257 | 272 | — | 7 | 133 | — | — | — | |||||||||||||||||||||||||||||
— | — | 62 | 3 | — | — | — | — | |||||||||||||||||||||||||||||
(8,241 | ) | (9,575 | ) | (2,836 | ) | (12,920 | ) | (1,405 | ) | (4 | ) | (2,006 | ) | (10,413 | ) | |||||||||||||||||||||
(34 | ) | 27 | 45 | 500 | (64 | ) | — | 53 | (53 | ) | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | 51 | |||||||||||||||||||||||||||||
— | — | (4 | ) | (7 | ) | — | — | — | — | |||||||||||||||||||||||||||
(98 | ) | 90 | — | (609 | ) | 90 | — | — | — | |||||||||||||||||||||||||||
8,421 | 18,815 | 30,297 | (4,488 | ) | 7,325 | 165 | 1,308 | 1,034 | ||||||||||||||||||||||||||||
(1,758 | ) | (2,729 | ) | (3,109 | ) | (272 | ) | (138 | ) | (46 | ) | (64 | ) | (55 | ) | |||||||||||||||||||||
(306 | ) | (494 | ) | (601 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
(515 | ) | (929 | ) | (1,260 | ) | (29 | ) | (17 | ) | — | — | — | ||||||||||||||||||||||||
(2 | ) | (1 | ) | (30 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
(10,947 | ) | (15,519 | ) | (15,894 | ) | (12,527 | ) | (7,166 | ) | (1,570 | ) | (3,114 | ) | (5,443 | ) | |||||||||||||||||||||
— | — | — | (5 | ) | — | (11 | ) | (84 | ) | (258 | ) | |||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
— | — | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
— | — | — | (194 | ) | (6 | ) | (393 | ) | (4,844 | ) | (29,444 | ) | ||||||||||||||||||||||||
— | (3 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
— | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
— | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
— | — | (2) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
— | (15 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||
(13,528 | ) | (19,692 | ) | (20,894 | ) | (13,028 | ) | (7,327 | ) | (2,020 | ) | (8,106 | ) | (35,200 | ) | |||||||||||||||||||||
7,253 | 6,693 | 10,439 | 869 | 7,676 | 305 | 1,284 | 799 | |||||||||||||||||||||||||||||
1,219 | 2,001 | 2,352 | 202 | 100 | 45 | 134 | 221 | |||||||||||||||||||||||||||||
(12,438 | ) | (18,399 | ) | (12,507 | ) | (2,558 | ) | (869 | ) | (576 | ) | (1,194 | ) | (1,360 | ) | |||||||||||||||||||||
(3,966 | ) | (9,705 | ) | 284 | (1,487 | ) | 6,907 | (226 | ) | 224 | (340 | ) | ||||||||||||||||||||||||
481 | 760 | 2,346 | — | — | — | — | — | |||||||||||||||||||||||||||||
182 | 310 | 365 | — | — | — | — | — | |||||||||||||||||||||||||||||
(1,738 | ) | (2,383 | ) | (3,441 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
(1,075 | ) | (1,313 | ) | (730 | ) | — | — | — | — | — | ||||||||||||||||||||||||||
623 | 521 | 2,087 | 159 | 886 | — | — | — | |||||||||||||||||||||||||||||
451 | 828 | 1,109 | 29 | 17 | — | — | — | |||||||||||||||||||||||||||||
(4,393 | ) | (5,303 | ) | (6,143 | ) | (440 | ) | (44 | ) | — | — | — | ||||||||||||||||||||||||
(3,319 | ) | (3,954 | ) | (2,947 | ) | (252 | ) | 859 | — | — | — | |||||||||||||||||||||||||
74 | 45 | 308 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||||
1 | 1 | 20 | — | — | — | — | — | |||||||||||||||||||||||||||||
(4 | ) | (43 | ) | (1,112 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||||||
71 | 3 | (784 | ) | — | 1 | — | — | — | ||||||||||||||||||||||||||||
47,522 | 75,166 | 94,505 | 103,440 | 294,003 | 7,101 | 14,803 | 21,991 | |||||||||||||||||||||||||||||
1,446 | 1,986 | 2,351 | 3,541 | 2,104 | 664 | 4,328 | 26,896 | |||||||||||||||||||||||||||||
(47,035 | ) | (103,437 | ) | (48,429 | ) | (41,339 | ) | (26,687 | ) | (32,533 | ) | (72,879 | ) | (220,111 | ) | |||||||||||||||||||||
1,933 | (26,285 | ) | 48,427 | 65,642 | 269,420 | (24,768 | ) | (53,748 | ) | (171,224 | ) | |||||||||||||||||||||||||
(6,356 | ) | (41,254 | ) | 44,250 | 63,903 | 277,187 | (24,994 | ) | (53,524 | ) | (171,564 | ) | ||||||||||||||||||||||||
(11,463 | ) | (42,131 | ) | 53,653 | 46,387 | 277,185 | (26,849 | ) | (60,322 | ) | (205,730 | ) | ||||||||||||||||||||||||
262,352 | 304,483 | 250,830 | 277,185 | — | 71,319 | 131,641 | 337,371 | |||||||||||||||||||||||||||||
$ | 250,889 | $ | 262,352 | $ | 304,483 | $ | 323,572 | $ | 277,185 | $ | 44,470 | $ | 71,319 | $ | 131,641 | |||||||||||||||||||||
$ | 181 | $ | 19 | $ | 148 | $ | 1,401 | $ | 1,292 | $ | 34 | $ | 77 | $ | 165 | |||||||||||||||||||||
First American Funds Annual Report 2006 63
Table of Contents
Statements of Changes in Net Assets continued
Intermediate Term | |||||||||||||||
Bond Fund | |||||||||||||||
Nine-Month | |||||||||||||||
Period Ended | Year Ended | Year Ended | |||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||
OPERATIONS: | |||||||||||||||
Investment income – net | $ | 30,772 | $ | 42,144 | $ | 42,757 | |||||||||
Net realized gain (loss) on investments | (12,420 | ) | (2,596 | ) | 18,776 | ||||||||||
Net realized gain (loss) on futures contracts | 1,169 | (730 | ) | (1,075 | ) | ||||||||||
Net realized gain (loss) on written options | — | 1,217 | 1,321 | ||||||||||||
Net realized gain (loss) on swap agreements | (320 | ) | 639 | — | |||||||||||
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | ||||||||||||
Net change in unrealized appreciation or depreciation of investments | (15,431 | ) | (18,673 | ) | (32,178 | ) | |||||||||
Net change in unrealized appreciation or depreciation of futures contracts | 227 | 624 | (517 | ) | |||||||||||
Net change in unrealized appreciation or depreciation of written options | — | — | 206 | ||||||||||||
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency | — | — | — | ||||||||||||
Net change in unrealized appreciation or depreciation of swap agreements | (605 | ) | (27 | ) | — | ||||||||||
Net increase (decrease) in net assets resulting from operations | 3,392 | 22,598 | 29,290 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||
Investment income – net: | |||||||||||||||
Class A | (1,298 | ) | (1,797 | ) | (2,199 | ) | |||||||||
Class B | — | — | — | ||||||||||||
Class C | — | — | — | ||||||||||||
Class R | — | — | (220 | ) | |||||||||||
Class Y | (30,598 | ) | (40,236 | ) | (40,500 | ) | |||||||||
Net realized gain on investments: | |||||||||||||||
Class A | (166 | ) | (561 | ) | (840 | ) | |||||||||
Class B | — | — | — | ||||||||||||
Class C | — | — | — | ||||||||||||
Class R | — | — | (131 | ) | |||||||||||
Class Y | (3,712 | ) | (11,243 | ) | (13,807 | ) | |||||||||
Return of capital: | |||||||||||||||
Class A | — | — | — | ||||||||||||
Class B | — | — | — | ||||||||||||
Class C | — | — | — | ||||||||||||
Class R | — | — | — | ||||||||||||
Class Y | — | — | — | ||||||||||||
Total distributions | (35,774 | ) | (53,837 | ) | (57,697 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS (note 4): | |||||||||||||||
Class A: | |||||||||||||||
Proceeds from sales | 5,185 | 8,671 | 26,236 | ||||||||||||
Reinvestment of distributions | 1,300 | 2,041 | 1,995 | ||||||||||||
Payments for redemptions | (15,250 | ) | (24,078 | ) | (42,101 | ) | |||||||||
Increase (decrease) in net assets from Class A transactions | (8,765 | ) | (13,366 | ) | (13,870 | ) | |||||||||
Class B: | |||||||||||||||
Proceeds from sales | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | ||||||||||||
Payments for redemptions | — | — | — | ||||||||||||
Decrease in net assets from Class B transactions | — | — | — | ||||||||||||
Class C: | |||||||||||||||
Proceeds from sales | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | ||||||||||||
Payments for redemptions | — | — | — | ||||||||||||
Increase (decrease) in net assets from Class C transactions | — | — | — | ||||||||||||
Class R: | |||||||||||||||
Proceeds from sales | — | — | 4,442 | ||||||||||||
Reinvestment of distributions | — | — | 323 | ||||||||||||
Payments for redemptions | — | — | (16,683 | ) | |||||||||||
Increase (decrease) in net assets from Class R transactions | — | — | (11,918 | ) | |||||||||||
Class Y: | |||||||||||||||
Proceeds from sales | 143,333 | 245,371 | 386,218 | ||||||||||||
Reinvestment of distributions | 13,089 | 20,576 | 23,314 | ||||||||||||
Payments for redemptions | (300,854 | ) | (381,218 | ) | (459,895 | ) | |||||||||
Increase (decrease) in net assets from Class Y transactions | (144,432 | ) | (115,271 | ) | (50,363 | ) | |||||||||
Increase (decrease) in net assets from capital share transactions | (153,197 | ) | (128,637 | ) | (76,151 | ) | |||||||||
Total increase (decrease) in net assets | (185,579 | ) | (159,876 | ) | (104,558 | ) | |||||||||
Net assets at beginning of period | 1,123,050 | 1,282,926 | 1,387,484 | ||||||||||||
Net assets at end of period | $ | 937,471 | $ | 1,123,050 | $ | 1,282,926 | |||||||||
Undistributed net investment income | $ | 787 | $ | 1,447 | $ | 380 | |||||||||
(1) | Due to the presentation of the financial statements in thousands, the number rounds to zero. |
The accompanying notes are an integral part of the financial statements.
64 First American Funds Annual Report 2006
Table of Contents
Short Term | Total Return | U.S. Government | ||||||||||||||||||||||||||||||||||||||
Bond Fund | Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||||||
Nine-Month | Nine-Month | Nine-Month | ||||||||||||||||||||||||||||||||||||||
Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | ||||||||||||||||||||||||||||||||
$ | 15,272 | $ | 25,989 | $ | 23,756 | $ | 11,839 | $ | 12,422 | $ | 13,096 | $ | 6,048 | $ | 8,223 | $ | 9,612 | |||||||||||||||||||||||
(4,403 | ) | (6,244 | ) | 3,167 | (4,994 | ) | 5,824 | 6,006 | (1,518 | ) | 696 | 616 | ||||||||||||||||||||||||||||
2,746 | (2,529 | ) | (1,911 | ) | 1,189 | (465 | ) | (735 | ) | 502 | 43 | (630 | ) | |||||||||||||||||||||||||||
— | 142 | — | 8 | 157 | 104 | — | (102 | ) | 269 | |||||||||||||||||||||||||||||||
(825 | ) | 783 | — | (51 | ) | 857 | — | (24 | ) | — | — | |||||||||||||||||||||||||||||
— | — | — | (12 | ) | (6 | ) | — | — | — | — | ||||||||||||||||||||||||||||||
(445 | ) | (7,121 | ) | (14,832 | ) | (8,227 | ) | (8,750 | ) | (5,034 | ) | (4,359 | ) | (3,451 | ) | (3,225 | ) | |||||||||||||||||||||||
(703 | ) | 1,494 | (524 | ) | 588 | 165 | (263 | ) | (36 | ) | 112 | (6 | ) | |||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | 40 | ||||||||||||||||||||||||||||||||
— | — | — | (3 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||||||||||||
(148 | ) | (2,149 | ) | — | (559 | ) | (7 | ) | — | (81 | ) | — | — | |||||||||||||||||||||||||||
11,494 | 10,365 | 9,656 | (222 | ) | 10,195 | 13,174 | 532 | 5,521 | 6,676 | |||||||||||||||||||||||||||||||
(2,415 | ) | (3,144 | ) | (3,287 | ) | (520 | ) | (841 | ) | (787 | ) | (702 | ) | (1,230 | ) | (1,210 | ) | |||||||||||||||||||||||
— | — | — | (98 | ) | (167 | ) | (390 | ) | (211 | ) | (312 | ) | (354 | ) | ||||||||||||||||||||||||||
— | — | — | (67 | ) | (118 | ) | (186 | ) | (168 | ) | (300 | ) | (525 | ) | ||||||||||||||||||||||||||
— | — | (108 | ) | — | — | (59 | ) | — | — | (385 | ) | |||||||||||||||||||||||||||||
(15,530 | ) | (23,671 | ) | (21,857 | ) | (10,831 | ) | (11,336 | ) | (11,683 | ) | (5,464 | ) | (7,495 | ) | (9,087 | ) | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | (43 | ) | — | — | — | (1 | ) | — | — | — | ||||||||||||||||||||||||||||||
— | — | (1) | — | — | — | (1 | ) | — | — | — | ||||||||||||||||||||||||||||||
— | — | (1) | — | — | — | — | (1) | — | — | — | ||||||||||||||||||||||||||||||
— | — | (1) | — | — | — | — | (1) | — | — | — | ||||||||||||||||||||||||||||||
— | (328 | ) | — | — | — | (17 | ) | — | — | — | ||||||||||||||||||||||||||||||
(17,945 | ) | (27,186 | ) | (25,252 | ) | (11,516 | ) | (12,462 | ) | (13,124 | ) | (6,545 | ) | (9,337 | ) | (11,561 | ) | |||||||||||||||||||||||
2,067 | 6,342 | 29,602 | 2,182 | 2,495 | 12,203 | 1,271 | 5,292 | 18,795 | ||||||||||||||||||||||||||||||||
1,915 | 2,512 | 2,563 | 429 | 686 | 624 | 599 | 1,097 | 1,048 | ||||||||||||||||||||||||||||||||
(22,185 | ) | (39,475 | ) | (58,743 | ) | (5,664 | ) | (4,969 | ) | (5,431 | ) | (9,687 | ) | (14,192 | ) | (11,208 | ) | |||||||||||||||||||||||
(18,203 | ) | (30,621 | ) | (26,578 | ) | (3,053 | ) | (1,788 | ) | 7,396 | (7,817 | ) | (7,803 | ) | 8,635 | |||||||||||||||||||||||||
— | — | — | 106 | 240 | 687 | 326 | 742 | 1,290 | ||||||||||||||||||||||||||||||||
— | — | — | 76 | 125 | 278 | 186 | 275 | 313 | ||||||||||||||||||||||||||||||||
— | — | — | (792 | ) | (1,417 | ) | (8,920 | ) | (1,607 | ) | (2,090 | ) | (3,679 | ) | ||||||||||||||||||||||||||
— | — | — | (610 | ) | (1,052 | ) | (7,955 | ) | (1,095 | ) | (1,073 | ) | (2,076 | ) | ||||||||||||||||||||||||||
— | — | — | 127 | 90 | 323 | 65 | 309 | 1,119 | ||||||||||||||||||||||||||||||||
— | — | — | 58 | 105 | 172 | 157 | 284 | 508 | ||||||||||||||||||||||||||||||||
— | — | — | (456 | ) | (1,107 | ) | (2,434 | ) | (1,491 | ) | (4,390 | ) | (9,603 | ) | ||||||||||||||||||||||||||
— | — | — | (271 | ) | (912 | ) | (1,939 | ) | (1,269 | ) | (3,797 | ) | (7,976 | ) | ||||||||||||||||||||||||||
— | — | 1,901 | 13 | 2 | 90 | 6 | 1 | 1,517 | ||||||||||||||||||||||||||||||||
— | — | 92 | — | — | 59 | — | — | 359 | ||||||||||||||||||||||||||||||||
— | — | (10,658 | ) | (1 | ) | — | (2,840 | ) | (2 | ) | — | (19,037 | ) | |||||||||||||||||||||||||||
— | — | (8,665 | ) | 12 | 2 | (2,691 | ) | 4 | 1 | (17,161 | ) | |||||||||||||||||||||||||||||
72,120 | 149,034 | 462,268 | 214,597 | 94,268 | 55,561 | 19,923 | 35,129 | 43,758 | ||||||||||||||||||||||||||||||||
5,642 | 7,911 | 7,197 | 1,706 | 1,633 | 1,623 | 876 | 960 | 1,090 | ||||||||||||||||||||||||||||||||
(242,927 | ) | (459,960 | ) | (345,341 | ) | (105,757 | ) | (58,054 | ) | (60,124 | ) | (33,662 | ) | (45,987 | ) | (84,443 | ) | |||||||||||||||||||||||
(165,165 | ) | (303,015 | ) | 124,124 | 110,546 | 37,847 | (2,940 | ) | (12,863 | ) | (9,898 | ) | (39,595 | ) | ||||||||||||||||||||||||||
(183,368 | ) | (333,636 | ) | 88,881 | 106,624 | 34,097 | (8,129 | ) | (23,040 | ) | (22,570 | ) | (58,173 | ) | ||||||||||||||||||||||||||
(189,819 | ) | (350,457 | ) | 73,285 | 94,886 | 31,830 | (8,079 | ) | (29,053 | ) | (26,386 | ) | (63,058 | ) | ||||||||||||||||||||||||||
723,255 | 1,073,712 | 1,000,427 | 305,146 | 273,316 | 281,395 | 197,248 | 223,634 | 286,692 | ||||||||||||||||||||||||||||||||
$ | 533,436 | $ | 723,255 | $ | 1,073,712 | $ | 400,032 | $ | 305,146 | $ | 273,316 | $ | 168,195 | $ | 197,248 | $ | 223,634 | |||||||||||||||||||||||
$ | 256 | $ | 2,148 | $ | 548 | $ | 546 | $ | 117 | $ | — | $ | 22 | $ | 132 | $ | 242 | |||||||||||||||||||||||
First American Funds Annual Report 2006 65
Table of Contents
Financial Highlights For a share outstanding throughout the indicated periods.
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Net Asset | ||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | Distributions | Value | ||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Realized Gains | Period | ||||||||||||||||||||||||||||
Core Bond Fund | |||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 11.15 | $ | 0.33 | $ | (0.37 | ) | $ | (0.33 | ) | $ | (0.07 | ) | $ | 10.71 | ||||||||||||||||||
2005 (2)(3) | 11.27 | 0.40 | (0.09 | ) | (0.42 | ) | (0.01 | ) | 11.15 | ||||||||||||||||||||||||
2004 (2)(3) | 11.56 | 0.38 | (0.09 | ) | (0.41 | ) | (0.17 | ) | 11.27 | ||||||||||||||||||||||||
2003 (3) | 11.45 | 0.42 | 0.15 | (0.46 | ) | — | 11.56 | ||||||||||||||||||||||||||
2002 (3) | 11.37 | 0.55 | 0.08 | (0.55 | ) | — | 11.45 | ||||||||||||||||||||||||||
2001 (2)(3) | 10.69 | 0.61 | 0.69 | (0.62 | ) | — | 11.37 | ||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 11.07 | $ | 0.26 | $ | (0.36 | ) | $ | (0.27 | ) | $ | (0.07 | ) | $ | 10.63 | ||||||||||||||||||
2005 (2)(3) | 11.19 | 0.31 | (0.09 | ) | (0.33 | ) | (0.01 | ) | 11.07 | ||||||||||||||||||||||||
2004 (2)(3) | 11.48 | 0.29 | (0.09 | ) | (0.32 | ) | (0.17 | ) | 11.19 | ||||||||||||||||||||||||
2003 (3) | 11.38 | 0.35 | 0.12 | (0.37 | ) | — | 11.48 | ||||||||||||||||||||||||||
2002 (3) | 11.29 | 0.47 | 0.09 | (0.47 | ) | — | 11.38 | ||||||||||||||||||||||||||
2001 (2)(3) | 10.63 | 0.52 | 0.68 | (0.54 | ) | — | 11.29 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 11.12 | $ | 0.26 | $ | (0.37 | ) | $ | (0.27 | ) | $ | (0.07 | ) | $ | 10.67 | ||||||||||||||||||
2005 (2)(3) | 11.24 | 0.31 | (0.09 | ) | (0.33 | ) | (0.01 | ) | 11.12 | ||||||||||||||||||||||||
2004 (2)(3) | 11.53 | 0.29 | (0.09 | ) | (0.32 | ) | (0.17 | ) | 11.24 | ||||||||||||||||||||||||
2003 (3) | 11.42 | 0.34 | 0.14 | (0.37 | ) | — | 11.53 | ||||||||||||||||||||||||||
2002 (3) | 11.34 | 0.47 | 0.08 | (0.47 | ) | — | 11.42 | ||||||||||||||||||||||||||
2001 (2)(3) | 10.66 | 0.52 | 0.70 | (0.54 | ) | — | 11.34 | ||||||||||||||||||||||||||
Class R (4) | |||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 11.17 | $ | 0.31 | $ | (0.36 | ) | $ | (0.32 | ) | $ | (0.07 | ) | $ | 10.73 | ||||||||||||||||||
2005 (2)(3) | 11.30 | 0.38 | (0.10 | ) | (0.40 | ) | (0.01 | ) | 11.17 | ||||||||||||||||||||||||
2004 (2)(3) | 11.56 | 0.38 | (0.10 | ) | (0.37 | ) | (0.17 | ) | 11.30 | ||||||||||||||||||||||||
2003 (3) | 11.45 | 0.42 | 0.15 | (0.46 | ) | — | 11.56 | ||||||||||||||||||||||||||
2002 (3) | 11.37 | 0.55 | 0.08 | (0.55 | ) | — | 11.45 | ||||||||||||||||||||||||||
2001 (2)(5) | 11.28 | 0.01 | 0.08 | — | — | 11.37 | |||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 11.15 | $ | 0.35 | $ | (0.38 | ) | $ | (0.35 | ) | $ | (0.07 | ) | $ | 10.70 | ||||||||||||||||||
2005 (2)(3) | 11.27 | 0.42 | (0.08 | ) | (0.45 | ) | (0.01 | ) | 11.15 | ||||||||||||||||||||||||
2004 (2)(3) | 11.56 | 0.40 | (0.08 | ) | (0.44 | ) | (0.17 | ) | 11.27 | ||||||||||||||||||||||||
2003 (3) | 11.45 | 0.45 | 0.15 | (0.49 | ) | — | 11.56 | ||||||||||||||||||||||||||
2002 (3) | 11.37 | 0.58 | 0.08 | (0.58 | ) | — | 11.45 | ||||||||||||||||||||||||||
2001 (2)(3) | 10.69 | 0.63 | 0.70 | (0.65 | ) | — | 11.37 | ||||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | Per share data calculated using average shares outstanding method. | |
(3) | For the period October 1 to September 30 in the year indicated. | |
(4) | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
(5) | Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover. | |
(6) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
66 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (6) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
(0.34 | )% | $ | 134,845 | 0.95 | % | 3.98 | % | 1.03 | % | 3.90 | % | 139 | % | |||||||||||||||||||||||
2.75 | 161,410 | 0.95 | 3.51 | 1.05 | 3.41 | 208 | ||||||||||||||||||||||||||||||
2.60 | 184,805 | 0.95 | 3.30 | 1.05 | 3.20 | 182 | ||||||||||||||||||||||||||||||
5.08 | 191,754 | 0.95 | 3.58 | 1.05 | 3.48 | 196 | ||||||||||||||||||||||||||||||
5.77 | 122,354 | 0.95 | 4.93 | 1.03 | 4.85 | 115 | ||||||||||||||||||||||||||||||
12.50 | 119,067 | 0.95 | 5.50 | 1.13 | 5.32 | 81 | ||||||||||||||||||||||||||||||
(0.91 | )% | $ | 13,819 | 1.70 | % | 3.23 | % | 1.78 | % | 3.15 | % | 139 | % | |||||||||||||||||||||||
2.00 | 17,078 | 1.70 | 2.76 | 1.80 | 2.66 | 208 | ||||||||||||||||||||||||||||||
1.83 | 21,046 | 1.70 | 2.58 | 1.80 | 2.48 | 182 | ||||||||||||||||||||||||||||||
4.23 | 28,096 | 1.70 | 2.83 | 1.80 | 2.73 | 196 | ||||||||||||||||||||||||||||||
5.12 | 16,741 | 1.70 | 4.17 | 1.78 | 4.09 | 115 | ||||||||||||||||||||||||||||||
11.59 | 15,071 | 1.70 | 4.75 | 1.88 | 4.57 | 81 | ||||||||||||||||||||||||||||||
(1.01 | )% | $ | 5,183 | 1.70 | % | 3.22 | % | 1.78 | % | 3.14 | % | 139 | % | |||||||||||||||||||||||
1.99 | 7,266 | 1.70 | 2.76 | 1.80 | 2.66 | 208 | ||||||||||||||||||||||||||||||
1.81 | 9,132 | 1.70 | 2.58 | 1.80 | 2.48 | 182 | ||||||||||||||||||||||||||||||
4.30 | 13,424 | 1.70 | 2.85 | 1.80 | 2.75 | 196 | ||||||||||||||||||||||||||||||
5.02 | 9,672 | 1.70 | 4.18 | 1.78 | 4.10 | 115 | ||||||||||||||||||||||||||||||
11.68 | 7,148 | 1.70 | 4.65 | 1.88 | 4.47 | 81 | ||||||||||||||||||||||||||||||
(0.51 | )% | $ | 34 | 1.20 | % | 3.77 | % | 1.43 | % | 3.54 | % | 139 | % | |||||||||||||||||||||||
2.51 | 16 | 1.20 | 3.37 | 1.45 | 3.12 | 208 | ||||||||||||||||||||||||||||||
2.53 | 1 | 0.95 | 3.37 | 1.05 | 3.27 | 182 | ||||||||||||||||||||||||||||||
5.08 | 39,236 | 0.95 | 3.58 | 1.05 | 3.48 | 196 | ||||||||||||||||||||||||||||||
5.77 | 33,270 | 0.95 | 4.93 | 1.03 | 4.85 | 115 | ||||||||||||||||||||||||||||||
0.80 | 35,062 | 1.58 | 6.36 | 1.76 | 6.18 | 81 | ||||||||||||||||||||||||||||||
(0.24 | )% | $ | 1,680,105 | 0.70 | % | 4.24 | % | 0.78 | % | 4.16 | % | 139 | % | |||||||||||||||||||||||
3.01 | 1,725,850 | 0.70 | 3.77 | 0.80 | 3.67 | 208 | ||||||||||||||||||||||||||||||
2.87 | 1,740,470 | 0.70 | 3.58 | 0.80 | 3.48 | 182 | ||||||||||||||||||||||||||||||
5.34 | 1,955,909 | 0.70 | 3.83 | 0.80 | 3.73 | 196 | ||||||||||||||||||||||||||||||
6.04 | 1,204,555 | 0.70 | 5.18 | 0.78 | 5.10 | 115 | ||||||||||||||||||||||||||||||
12.76 | 1,368,812 | 0.70 | 5.76 | 0.88 | 5.58 | 81 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 67
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Distributions | Distributions | Net Asset | |||||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | Distributions | from | Value | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | Return of | End of | |||||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Realized Gains | Capital | Period | |||||||||||||||||||||||||||||||
High Income Bond Fund (1) | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 9.41 | $ | 0.49 | $ | (0.20 | ) | $ | (0.48 | ) | $ | — | $ | — | $ | 9.22 | |||||||||||||||||||||
2005 (3)(4) | 9.45 | 0.66 | (0.04 | ) | (0.66 | ) | — | — | (9) | 9.41 | |||||||||||||||||||||||||||
2004 (3)(4) | 9.13 | 0.68 | 0.32 | (0.68 | ) | — | — | 9.45 | |||||||||||||||||||||||||||||
2003 (3)(4) | 7.90 | 0.68 | 1.24 | (0.69 | ) | — | — | 9.13 | |||||||||||||||||||||||||||||
2002 (4) | 9.23 | 0.65 | (1.21 | ) | (0.70 | ) | — | (0.07 | ) | 7.90 | |||||||||||||||||||||||||||
2001 (3)(5) | 9.93 | 0.02 | (0.68 | ) | (0.04 | ) | — | — | 9.23 | ||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 9.37 | $ | 0.43 | $ | (0.19 | ) | $ | (0.43 | ) | $ | — | $ | — | $ | 9.18 | |||||||||||||||||||||
2005 (3)(4) | 9.41 | 0.58 | (0.03 | ) | (0.59 | ) | — | — | (9) | 9.37 | |||||||||||||||||||||||||||
2004 (3)(4) | 9.09 | 0.61 | 0.32 | (0.61 | ) | — | — | 9.41 | |||||||||||||||||||||||||||||
2003 (3)(4) | 7.87 | 0.61 | 1.24 | (0.63 | ) | — | — | 9.09 | |||||||||||||||||||||||||||||
2002 (4) | 9.19 | 0.69 | (1.31 | ) | (0.63 | ) | — | (0.07 | ) | 7.87 | |||||||||||||||||||||||||||
2001 (3)(5) | 9.88 | 0.02 | (0.67 | ) | (0.04 | ) | — | — | 9.19 | ||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 9.38 | $ | 0.43 | $ | (0.19 | ) | $ | (0.43 | ) | $ | — | $ | — | $ | 9.19 | |||||||||||||||||||||
2005 (3)(4) | 9.42 | 0.58 | (0.03 | ) | (0.59 | ) | — | — | (9) | 9.38 | |||||||||||||||||||||||||||
2004 (3)(4) | 9.10 | 0.61 | 0.32 | (0.61 | ) | — | — | 9.42 | |||||||||||||||||||||||||||||
2003 (3)(4) | 7.89 | 0.61 | 1.23 | (0.63 | ) | — | — | 9.10 | |||||||||||||||||||||||||||||
2002 (4) | 9.21 | 0.64 | (1.27 | ) | (0.62 | ) | — | (0.07 | ) | 7.89 | |||||||||||||||||||||||||||
2001 (3)(5) | 9.90 | 0.05 | (0.70 | ) | (0.04 | ) | — | — | 9.21 | ||||||||||||||||||||||||||||
Class R (6) | |||||||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 9.53 | $ | 0.49 | $ | (0.20 | ) | $ | (0.47 | ) | $ | — | $ | — | $ | 9.35 | |||||||||||||||||||||
2005 (3)(4) | 9.60 | 0.62 | (0.04 | ) | (0.65 | ) | — | — | (9) | 9.53 | |||||||||||||||||||||||||||
2004 (3)(4) | 9.21 | 0.69 | 0.32 | (0.62 | ) | — | — | 9.60 | |||||||||||||||||||||||||||||
2003 (3)(4) | 7.98 | 0.71 | 1.22 | (0.70 | ) | — | — | 9.21 | |||||||||||||||||||||||||||||
2002 (4) | 9.32 | 0.73 | (1.30 | ) | (0.70 | ) | — | (0.07 | ) | 7.98 | |||||||||||||||||||||||||||
2001 (3)(7) | 9.50 | 0.01 | (0.19 | ) | — | — | — | 9.32 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 9.42 | $ | 0.51 | $ | (0.20 | ) | $ | (0.50 | ) | $ | — | $ | — | $ | 9.23 | |||||||||||||||||||||
2005 (3)(4) | 9.46 | 0.68 | (0.03 | ) | (0.69 | ) | — | — | (9) | 9.42 | |||||||||||||||||||||||||||
2004 (3)(4) | 9.13 | 0.70 | 0.34 | (0.71 | ) | — | — | 9.46 | |||||||||||||||||||||||||||||
2003 (3)(4) | 7.92 | 0.69 | 1.24 | (0.72 | ) | — | — | 9.13 | |||||||||||||||||||||||||||||
2002 (4) | 9.24 | 0.74 | (1.28 | ) | (0.71 | ) | — | (0.07 | ) | 7.92 | |||||||||||||||||||||||||||
2001 (3)(5) | 9.92 | 0.05 | (0.69 | ) | (0.04 | ) | — | — | 9.24 | ||||||||||||||||||||||||||||
Inflation Protected Securities Fund (3) | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (2) | $ | 10.12 | $ | 0.38 | $ | (0.55 | ) | $ | (0.40 | ) | $ | (0.01 | ) | $ | — | $ | 9.54 | ||||||||||||||||||||
2005 (8) | 10.00 | 0.51 | (0.02 | ) | (0.37 | ) | — | — | 10.12 | ||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
2006 (2) | $ | 10.11 | $ | 0.31 | $ | (0.53 | ) | $ | (0.35 | ) | $ | (0.01 | ) | $ | — | $ | 9.53 | ||||||||||||||||||||
2005 (8) | 10.00 | 0.40 | 0.02 | (0.31 | ) | — | — | 10.11 | |||||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||||
2006 (2) | $ | 10.13 | $ | 0.38 | $ | (0.56 | ) | $ | (0.39 | ) | $ | (0.01 | ) | $ | — | $ | 9.55 | ||||||||||||||||||||
2005 (8) | 10.00 | 0.43 | 0.05 | (0.35 | ) | — | — | 10.13 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (2) | $ | 10.13 | $ | 0.42 | $ | (0.57 | ) | $ | (0.42 | ) | $ | (0.01 | ) | $ | — | $ | 9.55 | ||||||||||||||||||||
2005 (8) | 10.00 | 0.51 | 0.01 | (0.39 | ) | — | — | 10.13 | |||||||||||||||||||||||||||||
(1) | The financial highlights for the High Income Bond Fund as set forth herein include the historical financial highlights of the First American High Yield Bond Fund Class A shares, Class B shares Class C shares, Class S shares, and Class Y shares. The assets of the First American High Yield Bond Fund were acquired by High Income Bond Fund on March 14, 2003. In connection with such acquisition, Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of the First American High Yield Bond Fund were exchanged for Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of High Income Bond Fund respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the High Income Bond Fund and the First American High Yield Bond Fund. | |
(2) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(3) | Per share data calculated using average shares outstanding method. | |
(4) | For the period October 1 through September 30 in the year indicated. | |
(5) | Commenced operations on August 30, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover. | |
(6) | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
(7) | Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover. | |
(8) | Commenced operations on October 1, 2004. All ratios for the period ended September 30, 2005, have been annualized, except total return and portfolio turnover. | |
(9) | Includes a tax return of capital of less than $0.01. |
(10) | 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.
68 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (10) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
3.14 | % | $ | 29,573 | 1.10 | % | 6.94 | % | 1.29 | % | 6.75 | % | 68 | % | |||||||||||||||||||||||
6.74 | 34,144 | 1.02 | 6.88 | 1.27 | 6.63 | 77 | ||||||||||||||||||||||||||||||
11.30 | 43,842 | 1.00 | 7.25 | 1.26 | 6.99 | 80 | ||||||||||||||||||||||||||||||
25.30 | 42,013 | 1.06 | 7.72 | 1.24 | 7.54 | 122 | ||||||||||||||||||||||||||||||
(6.66 | ) | 23,900 | 1.10 | 7.64 | 1.47 | 7.27 | 86 | |||||||||||||||||||||||||||||
(6.55 | ) | 161 | 1.10 | 6.53 | 1.33 | 6.30 | 53 | |||||||||||||||||||||||||||||
2.57 | % | $ | 5,988 | 1.85 | % | 6.19 | % | 2.04 | % | 6.00 | % | 68 | % | |||||||||||||||||||||||
5.97 | 7,191 | 1.77 | 6.13 | 2.02 | 5.88 | 77 | ||||||||||||||||||||||||||||||
10.52 | 8,521 | 1.75 | 6.50 | 2.01 | 6.24 | 80 | ||||||||||||||||||||||||||||||
24.33 | 8,939 | 1.81 | 7.00 | 1.99 | 6.82 | 122 | ||||||||||||||||||||||||||||||
(7.26 | ) | 774 | 1.80 | 7.49 | 2.28 | 7.01 | 86 | |||||||||||||||||||||||||||||
(6.47 | ) | 40 | 1.77 | 6.02 | 2.02 | 5.77 | 53 | |||||||||||||||||||||||||||||
2.56 | % | $ | 9,873 | 1.85 | % | 6.19 | % | 2.04 | % | 6.00 | % | 68 | % | |||||||||||||||||||||||
5.96 | 13,403 | 1.77 | 6.13 | 2.02 | 5.88 | 77 | ||||||||||||||||||||||||||||||
10.51 | 17,349 | 1.75 | 6.50 | 2.01 | 6.24 | 80 | ||||||||||||||||||||||||||||||
24.14 | 19,685 | 1.80 | 7.01 | 1.98 | 6.83 | 122 | ||||||||||||||||||||||||||||||
(7.34 | ) | 7,213 | 1.83 | 7.08 | 2.26 | 6.65 | 86 | |||||||||||||||||||||||||||||
(6.50 | ) | 3,749 | 1.94 | 5.53 | 2.21 | 5.26 | 53 | |||||||||||||||||||||||||||||
3.09 | % | $ | 73 | 1.35 | % | 6.82 | % | 1.69 | % | 6.48 | % | 68 | % | |||||||||||||||||||||||
6.23 | 4 | 1.33 | 6.31 | 1.73 | 5.91 | 77 | ||||||||||||||||||||||||||||||
11.29 | 1 | 1.00 | 7.33 | 1.26 | 7.07 | 80 | ||||||||||||||||||||||||||||||
25.11 | 777 | 1.00 | 7.86 | 1.18 | 7.68 | 122 | ||||||||||||||||||||||||||||||
(6.66 | ) | 87 | 1.01 | 8.46 | 1.57 | 7.90 | 86 | |||||||||||||||||||||||||||||
(1.90 | ) | — | — | 1.23 | — | 1.23 | 53 | |||||||||||||||||||||||||||||
3.34 | % | $ | 205,382 | 0.85 | % | 7.19 | % | 1.04 | % | 7.00 | % | 68 | % | |||||||||||||||||||||||
7.01 | 207,610 | 0.77 | 7.13 | 1.02 | 6.88 | 77 | ||||||||||||||||||||||||||||||
11.69 | 234,770 | 0.75 | 7.49 | 1.01 | 7.23 | 80 | ||||||||||||||||||||||||||||||
25.29 | 179,416 | 0.83 | 7.97 | 1.01 | 7.79 | 122 | ||||||||||||||||||||||||||||||
(6.33 | ) | 21,157 | 0.82 | 8.19 | 1.27 | 7.74 | 86 | |||||||||||||||||||||||||||||
(6.47 | ) | 8,308 | 0.96 | 6.06 | 1.23 | 5.79 | 53 | |||||||||||||||||||||||||||||
(1.69 | )% | $ | 5,042 | 0.85 | % | 5.20 | % | 1.08 | % | 4.97 | % | 85 | % | |||||||||||||||||||||||
4.93 | 6,917 | 0.85 | 5.04 | 1.09 | 4.80 | 23 | ||||||||||||||||||||||||||||||
(2.26 | )% | $ | 552 | 1.60 | % | 4.29 | % | 1.83 | % | 4.06 | % | 85 | % | |||||||||||||||||||||||
4.18 | 855 | 1.60 | 3.98 | 1.84 | 3.74 | 23 | ||||||||||||||||||||||||||||||
(1.80 | )% | $ | 1 | 1.10 | % | 5.17 | % | 1.48 | % | 4.79 | % | 85 | % | |||||||||||||||||||||||
4.81 | 1 | 1.10 | 4.22 | 1.49 | 3.83 | 23 | ||||||||||||||||||||||||||||||
(1.50 | )% | $ | 317,977 | 0.60 | % | 5.73 | % | 0.83 | % | 5.50 | % | 85 | % | |||||||||||||||||||||||
5.24 | 269,412 | 0.60 | 5.05 | 0.84 | 4.81 | 23 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 69
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Dividends | Distributions | ||||||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | Distributions | from | Net Asset | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | Return of | Value End | |||||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Realized Gains | Capital | of Period | |||||||||||||||||||||||||||||||
Intermediate Government Bond Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 8.26 | $ | 0.22 | $ | (0.22 | ) | $ | (0.22 | ) | $ | (0.05 | ) | $ | — | $ | 7.99 | ||||||||||||||||||||
2005 (2)(3) | 8.82 | 0.27 | (0.15 | ) | (0.28 | ) | (0.40 | ) | — | 8.26 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.01 | 0.24 | (0.16 | ) | (0.24 | ) | (1.03 | ) | — | 8.82 | |||||||||||||||||||||||||||
2003 (4) | 10.00 | 0.32 | 0.02 | (0.33 | ) | — | — | 10.01 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 8.25 | $ | 0.22 | $ | (0.20 | ) | $ | (0.23 | ) | $ | (0.05 | ) | $ | — | $ | 7.99 | ||||||||||||||||||||
2005 (2)(3) | 8.82 | 0.28 | (0.16 | ) | (0.29 | ) | (0.40 | ) | — | 8.25 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.01 | 0.26 | (0.17 | ) | (0.25 | ) | (1.03 | ) | — | 8.82 | |||||||||||||||||||||||||||
2003 (4) | 10.00 | 0.34 | 0.01 | (0.34 | ) | — | — | 10.01 | |||||||||||||||||||||||||||||
Intermediate Term Bond Fund (5) | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 9.99 | $ | 0.29 | $ | (0.27 | ) | $ | (0.30 | ) | $ | (0.03 | ) | $ | — | $ | 9.68 | ||||||||||||||||||||
2005 (2)(3) | 10.25 | 0.34 | (0.17 | ) | (0.33 | ) | (0.10 | ) | — | 9.99 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.46 | 0.31 | (0.10 | ) | (0.31 | ) | (0.11 | ) | — | 10.25 | |||||||||||||||||||||||||||
2003 (3) | 10.35 | 0.39 | 0.12 | (0.40 | ) | — | — | 10.46 | |||||||||||||||||||||||||||||
2002 (3) | 10.26 | 0.50 | 0.10 | (0.50 | ) | — | (0.01 | ) | 10.35 | ||||||||||||||||||||||||||||
2001 (2)(6) | 9.70 | 0.54 | 0.55 | (0.51 | ) | (0.02 | ) | — | 10.26 | ||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 9.96 | $ | 0.30 | $ | (0.27 | ) | $ | (0.31 | ) | $ | (0.03 | ) | $ | — | $ | 9.65 | ||||||||||||||||||||
2005 (2)(3) | 10.22 | 0.36 | (0.17 | ) | (0.35 | ) | (0.10 | ) | — | 9.96 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.43 | 0.33 | (0.11 | ) | (0.32 | ) | (0.11 | ) | — | 10.22 | |||||||||||||||||||||||||||
2003 (3) | 10.32 | 0.41 | 0.12 | (0.42 | ) | — | — | 10.43 | |||||||||||||||||||||||||||||
2002 (3) | 10.23 | 0.52 | 0.10 | (0.52 | ) | — | (0.01 | ) | 10.32 | ||||||||||||||||||||||||||||
2001 (2)(6) | 9.68 | 0.56 | 0.54 | (0.53 | ) | (0.02 | ) | — | 10.23 | ||||||||||||||||||||||||||||
(1) | For the nine-month period ended June 30, 2006. Effective in 2006, the fund’s fiscal year end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | Per share data calculated using average shares outstanding method. | |
(3) | For the period October 1 to September 30 in the year indicated. | |
(4) | Commenced operations on October 25, 2002. All ratios for the period ended September 30, 2003, have been annualized, except total return and portfolio turnover. | |
(5) | The financial highlights for the Intermediate Term Bond Fund prior to September 24, 2001, are those of the Firstar Intermediate Bond Fund Class A shares, Class Y shares, and Class I shares. The assets of the Firstar Intermediate Bond Fund were acquired by Intermediate Term Bond Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class Y shares, and Class I shares of the Firstar Intermediate Bond Fund were exchanged for Class A shares, Class S shares (subsequently merged into Class A), and Class Y shares of Intermediate Term Bond Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Intermediate Term Bond Fund and the Firstar Intermediate Bond Fund. | |
(6) | For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(7) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements. |
The accompanying notes are an integral part of the financial statements.
70 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | |||||||||||||||||||||||||||||||||||||
Ratio of | Investment | ||||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses | Income | |||||||||||||||||||||||||||||||||||
Ratio of | Investment | to Average | to Average | ||||||||||||||||||||||||||||||||||
Net Assets | Expenses | Income | Net Assets | Net Assets | Portfolio | ||||||||||||||||||||||||||||||||
Total | End of | to Average | to Average | (Excluding | (Excluding | Turnover | |||||||||||||||||||||||||||||||
Return (7) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | |||||||||||||||||||||||||||||||
0.06 | % | $ | 1,689 | 0.75 | % | 3.56 | % | 1.26 | % | 3.05 | % | 70 | % | ||||||||||||||||||||||||
1.40 | 1,970 | 0.75 | 3.21 | 1.09 | 2.87 | 161 | |||||||||||||||||||||||||||||||
0.98 | 1,872 | 0.75 | 2.69 | 1.03 | 2.41 | 53 | |||||||||||||||||||||||||||||||
3.53 | 2,502 | 0.75 | 3.22 | 1.05 | 2.92 | 74 | |||||||||||||||||||||||||||||||
0.30 | % | $ | 42,781 | 0.60 | % | 3.70 | % | 1.01 | % | 3.29 | % | 70 | % | ||||||||||||||||||||||||
1.43 | 69,349 | 0.60 | 3.34 | 0.84 | 3.10 | 161 | |||||||||||||||||||||||||||||||
1.14 | 129,769 | 0.60 | 2.84 | 0.78 | 2.66 | 53 | |||||||||||||||||||||||||||||||
3.64 | 334,869 | 0.60 | 3.68 | 0.80 | 3.48 | 74 | |||||||||||||||||||||||||||||||
0.23 | % | $ | 38,296 | 0.75 | % | 3.88 | % | 1.03 | % | 3.60 | % | 113 | % | ||||||||||||||||||||||||
1.69 | 48,426 | 0.75 | 3.39 | 1.05 | 3.09 | 118 | |||||||||||||||||||||||||||||||
2.06 | 63,219 | 0.75 | 2.97 | 1.04 | 2.68 | 169 | |||||||||||||||||||||||||||||||
5.09 | 78,682 | 0.75 | 3.89 | 1.05 | 3.59 | 133 | |||||||||||||||||||||||||||||||
6.11 | 65,291 | 0.75 | 4.96 | 1.02 | 4.69 | 40 | |||||||||||||||||||||||||||||||
11.46 | 61,225 | 0.85 | 5.62 | 0.96 | 5.51 | 30 | |||||||||||||||||||||||||||||||
0.34 | % | $ | 899,175 | 0.60 | % | 4.03 | % | 0.78 | % | 3.85 | % | 113 | % | ||||||||||||||||||||||||
1.85 | 1,074,624 | 0.60 | 3.55 | 0.80 | 3.35 | 118 | |||||||||||||||||||||||||||||||
2.22 | 1,219,707 | 0.60 | 3.12 | 0.79 | 2.93 | 169 | |||||||||||||||||||||||||||||||
5.25 | 1,296,529 | 0.60 | 4.05 | 0.80 | 3.85 | 133 | |||||||||||||||||||||||||||||||
6.29 | 978,406 | 0.60 | 5.11 | 0.77 | 4.94 | 40 | |||||||||||||||||||||||||||||||
11.61 | 878,695 | 0.60 | 5.83 | 0.70 | 5.73 | 30 | |||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 71
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Dividends | Distributions | Net Asset | |||||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | Distributions | from | Value | |||||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | Return of | End of | |||||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Realized Gains | Capital | Period | |||||||||||||||||||||||||||||||
Short Term Bond Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 9.93 | $ | 0.23 | $ | (0.06 | ) | $ | (0.27 | ) | $ | — | $ | — | $ | 9.83 | |||||||||||||||||||||
2005 (2)(3) | 10.11 | 0.27 | (0.16 | ) | (0.29 | ) | — | — | (6) | 9.93 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.26 | 0.23 | (0.15 | ) | (0.23 | ) | — | — | 10.11 | ||||||||||||||||||||||||||||
2003 (3) | 10.29 | 0.28 | (0.01 | ) | (0.30 | ) | — | — | 10.26 | ||||||||||||||||||||||||||||
2002 (3) | 10.27 | 0.42 | 0.04 | (0.43 | ) | — | (0.01 | ) | 10.29 | ||||||||||||||||||||||||||||
2001 (2)(3) | 9.91 | 0.61 | 0.40 | (0.65 | ) | — | — | 10.27 | |||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 9.93 | $ | 0.24 | $ | (0.06 | ) | $ | (0.28 | ) | $ | — | $ | — | $ | 9.83 | |||||||||||||||||||||
2005 (2)(3) | 10.11 | 0.28 | (0.16 | ) | (0.29 | ) | — | (0.01 | ) | 9.93 | |||||||||||||||||||||||||||
2004 (2)(3) | 10.26 | 0.25 | (0.16 | ) | (0.24 | ) | — | — | 10.11 | ||||||||||||||||||||||||||||
2003 (3) | 10.30 | 0.30 | (0.02 | ) | (0.32 | ) | — | — | 10.26 | ||||||||||||||||||||||||||||
2002 (3) | 10.27 | 0.43 | 0.05 | (0.44 | ) | — | (0.01 | ) | 10.30 | ||||||||||||||||||||||||||||
2001 (2)(3) | 9.91 | 0.63 | 0.39 | (0.66 | ) | — | — | 10.27 | |||||||||||||||||||||||||||||
Total Return Bond Fund | |||||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 10.18 | $ | 0.31 | $ | (0.33 | ) | $ | (0.30 | ) | $ | — | $ | — | $ | 9.86 | |||||||||||||||||||||
2005 (2)(3) | 10.25 | 0.43 | (0.07 | ) | (0.43 | ) | — | — | 10.18 | ||||||||||||||||||||||||||||
2004 (2)(3) | 10.23 | 0.46 | 0.03 | (0.47 | ) | — | — | (6) | 10.25 | ||||||||||||||||||||||||||||
2003 (3) | 9.60 | 0.51 | 0.63 | (0.51 | ) | — | — | 10.23 | |||||||||||||||||||||||||||||
2002 (3) | 10.01 | 0.57 | (0.39 | ) | (0.58 | ) | (0.01 | ) | — | 9.60 | |||||||||||||||||||||||||||
2001 (2)(3) | 10.03 | 0.72 | 0.35 | (0.73 | ) | (0.36 | ) | — | 10.01 | ||||||||||||||||||||||||||||
Class B | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 10.14 | $ | 0.25 | $ | (0.32 | ) | $ | (0.25 | ) | $ | — | $ | — | $ | 9.82 | |||||||||||||||||||||
2005 (2)(3) | 10.21 | 0.35 | (0.07 | ) | (0.35 | ) | — | — | 10.14 | ||||||||||||||||||||||||||||
2004 (2)(3) | 10.20 | 0.39 | 0.01 | (0.39 | ) | — | — | (6) | 10.21 | ||||||||||||||||||||||||||||
2003 (3) | 9.57 | 0.44 | 0.63 | (0.44 | ) | — | — | 10.20 | |||||||||||||||||||||||||||||
2002 (3) | 9.98 | 0.49 | (0.38 | ) | (0.51 | ) | (0.01 | ) | — | 9.57 | |||||||||||||||||||||||||||
2001 (2)(3) | 10.02 | 0.66 | 0.32 | (0.66 | ) | (0.36 | ) | — | 9.98 | ||||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 10.12 | $ | 0.25 | $ | (0.32 | ) | $ | (0.25 | ) | $ | — | $ | — | $ | 9.80 | |||||||||||||||||||||
2005 (2)(3) | 10.20 | 0.35 | (0.07 | ) | (0.36 | ) | — | — | 10.12 | ||||||||||||||||||||||||||||
2004 (2)(3) | 10.18 | 0.39 | 0.02 | (0.39 | ) | — | — | (6) | 10.20 | ||||||||||||||||||||||||||||
2003 (3) | 9.55 | 0.44 | 0.63 | (0.44 | ) | — | — | 10.18 | |||||||||||||||||||||||||||||
2002 (3) | 9.97 | 0.49 | (0.40 | ) | (0.50 | ) | (0.01 | ) | — | 9.55 | |||||||||||||||||||||||||||
2001 (2)(3) | 10.01 | 0.63 | 0.35 | (0.66 | ) | (0.36 | ) | — | 9.97 | ||||||||||||||||||||||||||||
Class R (4) | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 10.23 | $ | 0.30 | $ | (0.34 | ) | $ | (0.29 | ) | $ | — | $ | — | $ | 9.90 | |||||||||||||||||||||
2005 (2)(3) | 10.29 | 0.41 | (0.07 | ) | (0.40 | ) | — | — | 10.23 | ||||||||||||||||||||||||||||
2004 (2)(3) | 10.23 | 0.48 | — | (0.42 | ) | — | — | (6) | 10.29 | ||||||||||||||||||||||||||||
2003 (3) | 9.60 | 0.51 | 0.63 | (0.51 | ) | — | — | 10.23 | |||||||||||||||||||||||||||||
2002 (3) | 10.01 | 0.56 | (0.38 | ) | (0.58 | ) | (0.01 | ) | — | 9.60 | |||||||||||||||||||||||||||
2001 (2)(5) | 9.93 | 0.01 | 0.07 | — | — | — | 10.01 | ||||||||||||||||||||||||||||||
Class Y | |||||||||||||||||||||||||||||||||||||
2006 (1)(2) | $ | 10.17 | $ | 0.33 | $ | (0.33 | ) | $ | (0.32 | ) | $ | — | $ | — | $ | 9.85 | |||||||||||||||||||||
2005 (2)(3) | 10.24 | 0.46 | (0.07 | ) | (0.46 | ) | — | — | 10.17 | ||||||||||||||||||||||||||||
2004 (2)(3) | 10.23 | 0.49 | 0.01 | (0.49 | ) | — | — | (6) | 10.24 | ||||||||||||||||||||||||||||
2003 (3) | 9.59 | 0.54 | 0.64 | (0.54 | ) | — | — | 10.23 | |||||||||||||||||||||||||||||
2002 (3) | 10.00 | 0.59 | (0.39 | ) | (0.60 | ) | (0.01 | ) | — | 9.59 | |||||||||||||||||||||||||||
2001 (2)(3) | 10.03 | 0.75 | 0.33 | (0.75 | ) | (0.36 | ) | — | 10.00 | ||||||||||||||||||||||||||||
(1) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(2) | Per share data calculated using average shares outstanding method. | |
(3) | For the period October 1 to September 30 in the year indicated. | |
(4) | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
(5) | Class of shares have been offered since September, 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover. | |
(6) | Includes a tax return of capital of less than $0.01. | |
(7) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
72 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (7) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
1.75 | % | $ | 78,771 | 0.75 | % | 3.11 | % | 1.04 | % | 2.82 | % | 60 | % | |||||||||||||||||||||||
1.08 | 97,863 | 0.75 | 2.68 | 1.05 | 2.38 | 64 | ||||||||||||||||||||||||||||||
0.76 | 130,531 | 0.75 | 2.28 | 1.05 | 1.98 | 89 | ||||||||||||||||||||||||||||||
2.71 | 159,451 | 0.75 | 2.75 | 1.05 | 2.45 | 60 | ||||||||||||||||||||||||||||||
4.59 | 163,358 | 0.75 | 4.06 | 1.04 | 3.77 | 59 | ||||||||||||||||||||||||||||||
10.48 | 133,177 | 0.60 | 6.04 | 1.15 | 5.49 | 69 | ||||||||||||||||||||||||||||||
1.87 | % | $ | 454,665 | 0.60 | % | 3.26 | % | 0.79 | % | 3.07 | % | 60 | % | |||||||||||||||||||||||
1.23 | 625,392 | 0.60 | 2.83 | 0.80 | 2.63 | 64 | ||||||||||||||||||||||||||||||
0.91 | 943,181 | 0.60 | 2.43 | 0.80 | 2.23 | 89 | ||||||||||||||||||||||||||||||
2.76 | 832,266 | 0.60 | 2.84 | 0.80 | 2.64 | 60 | ||||||||||||||||||||||||||||||
4.85 | 484,583 | 0.60 | 4.18 | 0.79 | 3.99 | 59 | ||||||||||||||||||||||||||||||
10.64 | 277,244 | 0.46 | 6.24 | 1.02 | 5.68 | 69 | ||||||||||||||||||||||||||||||
(0.17 | )% | $ | 15,522 | 1.00 | % | 4.14 | % | 1.17 | % | 3.97 | % | 166 | % | |||||||||||||||||||||||
3.57 | 19,113 | 1.00 | 4.20 | 1.25 | 3.95 | 285 | ||||||||||||||||||||||||||||||
4.89 | 21,034 | 1.00 | 4.54 | 1.25 | 4.29 | 132 | ||||||||||||||||||||||||||||||
12.26 | 13,522 | 1.00 | 5.15 | 1.26 | 4.89 | 91 | ||||||||||||||||||||||||||||||
1.83 | 8,663 | 1.00 | 5.77 | 1.27 | 5.50 | 117 | ||||||||||||||||||||||||||||||
10.94 | 9,820 | �� | 0.75 | 6.95 | 1.20 | 6.50 | 187 | |||||||||||||||||||||||||||||
(0.74 | )% | $ | 3,657 | 1.75 | % | 3.40 | % | 1.92 | % | 3.23 | % | 166 | % | |||||||||||||||||||||||
2.81 | 4,395 | 1.75 | 3.45 | 2.00 | 3.20 | 285 | ||||||||||||||||||||||||||||||
3.97 | 5,474 | 1.75 | 3.83 | 2.00 | 3.58 | 132 | ||||||||||||||||||||||||||||||
11.46 | 13,576 | 1.75 | 4.46 | 2.01 | 4.20 | 91 | ||||||||||||||||||||||||||||||
1.07 | 18,728 | 1.75 | 5.02 | 2.02 | 4.75 | 117 | ||||||||||||||||||||||||||||||
10.06 | 22,608 | 1.65 | 6.45 | 2.11 | 5.99 | 187 | ||||||||||||||||||||||||||||||
(0.74 | )% | $ | 2,501 | 1.75 | % | 3.40 | % | 1.92 | % | 3.23 | % | 166 | % | |||||||||||||||||||||||
2.71 | 2,858 | 1.75 | 3.46 | 2.00 | 3.21 | 285 | ||||||||||||||||||||||||||||||
4.11 | 3,789 | 1.75 | 3.81 | 2.00 | 3.56 | 132 | ||||||||||||||||||||||||||||||
11.50 | 5,752 | 1.75 | 4.43 | 2.01 | 4.17 | 91 | ||||||||||||||||||||||||||||||
0.98 | 5,283 | 1.75 | 5.02 | 2.02 | 4.75 | 117 | ||||||||||||||||||||||||||||||
10.10 | 5,209 | 1.50 | 6.07 | 1.94 | 5.63 | 187 | ||||||||||||||||||||||||||||||
(0.44 | )% | $ | 14 | 1.25 | % | 4.05 | % | 1.57 | % | 3.73 | % | 166 | % | |||||||||||||||||||||||
3.40 | 3 | 1.25 | 3.98 | 1.65 | 3.58 | 285 | ||||||||||||||||||||||||||||||
4.83 | 1 | 1.00 | 4.64 | 1.25 | 4.39 | 132 | ||||||||||||||||||||||||||||||
12.25 | 2,668 | 1.00 | 5.21 | 1.26 | 4.95 | 91 | ||||||||||||||||||||||||||||||
1.84 | 3,557 | 1.00 | 5.77 | 1.27 | 5.50 | 117 | ||||||||||||||||||||||||||||||
0.81 | 3,237 | 0.89 | 7.60 | 1.36 | 7.13 | 187 | ||||||||||||||||||||||||||||||
0.02 | % | $ | 378,338 | 0.75 | % | 4.43 | % | 0.92 | % | 4.26 | % | 166 | % | |||||||||||||||||||||||
3.83 | 278,777 | 0.75 | 4.43 | 1.00 | 4.18 | 285 | ||||||||||||||||||||||||||||||
5.05 | 243,018 | 0.75 | 4.80 | 1.00 | 4.55 | 132 | ||||||||||||||||||||||||||||||
12.65 | 245,877 | 0.75 | 5.42 | 1.01 | 5.16 | 91 | ||||||||||||||||||||||||||||||
2.08 | 204,801 | 0.75 | 6.03 | 1.02 | 5.76 | 117 | ||||||||||||||||||||||||||||||
11.09 | 185,392 | 0.51 | 7.26 | 0.95 | 6.82 | 187 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 73
Table of Contents
Financial Highlights continued
Realized and | |||||||||||||||||||||||||||||||||
Net Asset | Unrealized | Dividends | Net Asset | ||||||||||||||||||||||||||||||
Value | Net | Gains | from Net | Distributions | Value | ||||||||||||||||||||||||||||
Beginning | Investment | (Losses) on | Investment | from Net | End of | ||||||||||||||||||||||||||||
of Period | Income | Investments | Income | Realized Gains | Period | ||||||||||||||||||||||||||||
U.S. Government Mortgage Fund | |||||||||||||||||||||||||||||||||
Class A (1) | |||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 10.53 | $ | 0.33 | $ | (0.32 | ) | $ | (0.36 | ) | $ | — | $ | 10.18 | |||||||||||||||||||
2005 (3)(4) | 10.72 | 0.41 | (0.14 | ) | (0.46 | ) | — | 10.53 | |||||||||||||||||||||||||
2004 (3)(4) | 10.89 | 0.38 | (0.09 | ) | (0.46 | ) | — | 10.72 | |||||||||||||||||||||||||
2003 (4) | 11.16 | 0.35 | (0.05 | ) | (0.45 | ) | (0.12 | ) | 10.89 | ||||||||||||||||||||||||
2002 (4) | 11.01 | 0.50 | 0.20 | (0.55 | ) | — | 11.16 | ||||||||||||||||||||||||||
2001 (3)(5) | 10.44 | 0.51 | 0.60 | (0.54 | ) | — | 11.01 | ||||||||||||||||||||||||||
Class B (1) | |||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 10.54 | $ | 0.27 | $ | (0.31 | ) | $ | (0.30 | ) | $ | — | $ | 10.20 | |||||||||||||||||||
2005 (3)(4) | 10.74 | 0.33 | (0.15 | ) | (0.38 | ) | — | 10.54 | |||||||||||||||||||||||||
2004 (3)(4) | 10.90 | 0.30 | (0.08 | ) | (0.38 | ) | — | 10.74 | |||||||||||||||||||||||||
2003 (4) | 11.18 | 0.28 | (0.06 | ) | (0.38 | ) | (0.12 | ) | 10.90 | ||||||||||||||||||||||||
2002 (4) | 11.03 | 0.42 | 0.20 | (0.47 | ) | — | 11.18 | ||||||||||||||||||||||||||
2001 (3)(5) | 10.45 | 0.43 | 0.62 | (0.47 | ) | — | 11.03 | ||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 10.49 | $ | 0.27 | $ | (0.31 | ) | $ | (0.30 | ) | $ | — | $ | 10.15 | |||||||||||||||||||
2005 (3)(4) | 10.68 | 0.33 | (0.14 | ) | (0.38 | ) | — | 10.49 | |||||||||||||||||||||||||
2004 (3)(4) | 10.84 | 0.30 | (0.09 | ) | (0.37 | ) | — | 10.68 | |||||||||||||||||||||||||
2003 (4) | 11.13 | 0.29 | (0.08 | ) | (0.38 | ) | (0.12 | ) | 10.84 | ||||||||||||||||||||||||
2002 (4) | 11.00 | 0.46 | 0.15 | (0.48 | ) | — | 11.13 | ||||||||||||||||||||||||||
2001 (3)(6) | 10.98 | 0.05 | (0.03 | ) | — | — | 11.00 | ||||||||||||||||||||||||||
Class R (1)(7) | |||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 10.51 | $ | 0.31 | $ | (0.31 | ) | $ | (0.34 | ) | $ | — | $ | 10.17 | |||||||||||||||||||
2005 (3)(4) | 10.72 | 0.37 | (0.14 | ) | (0.44 | ) | — | 10.51 | |||||||||||||||||||||||||
2004 (3)(4) | 10.85 | 0.39 | (0.10 | ) | (0.42 | ) | — | 10.72 | |||||||||||||||||||||||||
2003 (4) | 11.12 | 0.30 | — | (0.45 | ) | (0.12 | ) | 10.85 | |||||||||||||||||||||||||
2002 (4) | 10.97 | 0.49 | 0.20 | (0.54 | ) | — | 11.12 | ||||||||||||||||||||||||||
2001 (3)(5) | 10.40 | 0.62 | 0.49 | (0.54 | ) | — | 10.97 | ||||||||||||||||||||||||||
Class Y (1) | |||||||||||||||||||||||||||||||||
2006 (2)(3) | $ | 10.53 | $ | 0.35 | $ | (0.31 | ) | $ | (0.38 | ) | $ | — | $ | 10.19 | |||||||||||||||||||
2005 (3)(4) | 10.73 | 0.43 | (0.14 | ) | (0.49 | ) | — | 10.53 | |||||||||||||||||||||||||
2004 (3)(4) | 10.89 | 0.41 | (0.08 | ) | (0.49 | ) | — | 10.73 | |||||||||||||||||||||||||
2003 (4) | 11.16 | 0.37 | (0.04 | ) | (0.48 | ) | (0.12 | ) | 10.89 | ||||||||||||||||||||||||
2002 (4) | 11.01 | 0.53 | 0.19 | (0.57 | ) | — | 11.16 | ||||||||||||||||||||||||||
2001 (3)(5) | 10.44 | 0.53 | 0.60 | (0.56 | ) | — | 11.01 | ||||||||||||||||||||||||||
(1) | The financial highlights for the U.S. Government Mortgage Fund prior to September 24, 2001, are those of the Firstar U. S. Government Securities Fund Class A shares, Class B shares, Class Y shares, and Class I shares. The assets of the Firstar U.S. Government Securities Fund were acquired by the U. S. Government Mortgage Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class B shares, Class Y shares, and Class I shares of the Firstar U.S. Government Securities Fund were exchanged for Class A shares, Class B shares, Class S shares (now designated Class R shares), and Class Y shares of U.S. Government Mortgage Fund, respectively. | |
(2) | For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(3) | Per share data calculated using average shares outstanding method. | |
(4) | For the period October 1 to September 30 in the year indicated. | |
(5) | For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover. | |
(6) | Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover. | |
(7) | Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses. | |
(8) | Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. |
The accompanying notes are an integral part of the financial statements.
74 First American Funds Annual Report 2006
Table of Contents
Ratio of Net | ||||||||||||||||||||||||||||||||||||
Ratio of | Investment | |||||||||||||||||||||||||||||||||||
Ratio of Net | Expenses to | Income to | ||||||||||||||||||||||||||||||||||
Ratio of | Investment | Average | Average Net | |||||||||||||||||||||||||||||||||
Net Assets | Expenses to | Income | Net Assets | Assets | Portfolio | |||||||||||||||||||||||||||||||
Total | End of | Average | to Average | (Excluding | (Excluding | Turnover | ||||||||||||||||||||||||||||||
Return (8) | Period (000) | Net Assets | Net Assets | Waivers) | Waivers) | Rate | ||||||||||||||||||||||||||||||
0.09 | % | $ | 16,059 | 0.95 | % | 4.27 | % | 1.11 | % | 4.11 | % | 220 | % | |||||||||||||||||||||||
2.59 | 24,504 | 0.95 | 3.80 | 1.08 | 3.67 | 251 | ||||||||||||||||||||||||||||||
2.74 | 32,815 | 0.95 | 3.53 | 1.05 | 3.43 | 127 | ||||||||||||||||||||||||||||||
2.79 | 24,667 | 0.95 | 2.98 | 1.06 | 2.87 | 175 | ||||||||||||||||||||||||||||||
6.53 | 16,985 | 0.95 | 4.61 | 1.08 | 4.48 | 197 | ||||||||||||||||||||||||||||||
10.88 | 7,751 | 1.04 | 5.15 | 1.19 | 5.00 | 22 | ||||||||||||||||||||||||||||||
(0.38 | )% | $ | 6,595 | 1.70 | % | 3.52 | % | 1.86 | % | 3.36 | % | 220 | % | |||||||||||||||||||||||
1.72 | 7,926 | 1.70 | 3.05 | 1.83 | 2.92 | 251 | ||||||||||||||||||||||||||||||
2.02 | 9,155 | 1.70 | 2.79 | 1.80 | 2.69 | 127 | ||||||||||||||||||||||||||||||
1.96 | 11,397 | 1.70 | 2.22 | 1.81 | 2.11 | 175 | ||||||||||||||||||||||||||||||
5.79 | 6,235 | 1.70 | 3.85 | 1.83 | 3.72 | 197 | ||||||||||||||||||||||||||||||
10.25 | 2,039 | 1.71 | 4.37 | 1.86 | 4.22 | 22 | ||||||||||||||||||||||||||||||
(0.38 | )% | $ | 5,127 | 1.70 | % | 3.52 | % | 1.86 | % | 3.36 | % | 220 | % | |||||||||||||||||||||||
1.82 | 6,585 | 1.70 | 3.05 | 1.83 | 2.92 | 251 | ||||||||||||||||||||||||||||||
2.02 | 10,520 | 1.70 | 2.79 | 1.80 | 2.69 | 127 | ||||||||||||||||||||||||||||||
1.91 | 18,801 | 1.70 | 2.19 | 1.81 | 2.08 | 175 | ||||||||||||||||||||||||||||||
5.78 | 5,834 | 1.70 | 3.92 | 1.83 | 3.79 | 197 | ||||||||||||||||||||||||||||||
0.18 | 105 | 0.82 | 5.26 | 1.12 | 4.96 | 22 | ||||||||||||||||||||||||||||||
0.04 | % | $ | 7 | 1.20 | % | 4.04 | % | 1.51 | % | 3.73 | % | 220 | % | |||||||||||||||||||||||
2.18 | 3 | 1.20 | 3.42 | 1.48 | 3.14 | 251 | ||||||||||||||||||||||||||||||
2.74 | 1 | 0.95 | 3.58 | 1.05 | 3.48 | 127 | ||||||||||||||||||||||||||||||
2.79 | 17,296 | 0.95 | 3.04 | 1.06 | 2.93 | 175 | ||||||||||||||||||||||||||||||
6.55 | 21,355 | 0.95 | 4.59 | 1.08 | 4.46 | 197 | ||||||||||||||||||||||||||||||
10.94 | 19,092 | 0.97 | 6.52 | 1.15 | 6.34 | 22 | ||||||||||||||||||||||||||||||
0.38 | % | $ | 140,407 | 0.70 | % | 4.52 | % | 0.86 | % | 4.36 | % | 220 | % | |||||||||||||||||||||||
2.75 | 158,230 | 0.70 | 4.05 | 0.83 | 3.92 | 251 | ||||||||||||||||||||||||||||||
3.09 | 171,143 | 0.70 | 3.79 | 0.80 | 3.69 | 127 | ||||||||||||||||||||||||||||||
3.03 | 214,531 | 0.70 | 3.27 | 0.81 | 3.16 | 175 | ||||||||||||||||||||||||||||||
6.79 | 181,046 | 0.70 | 4.84 | 0.83 | 4.71 | 197 | ||||||||||||||||||||||||||||||
11.14 | 183,883 | 0.71 | 5.37 | 0.85 | 5.23 | 22 | ||||||||||||||||||||||||||||||
First American Funds Annual Report 2006 75
Table of Contents
Notes to Financial Statements June 30, 2006, all dollars are rounded to thousands (000)
1 > | Organization |
The Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund is a diversified open-end management investment company. | |
FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares of Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund are sold with a front-end sales charge of 2.25%. Class A shares of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund are sold with a front-end sales charge of 4.25%. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class B, Class C, and Class R shares are not offered by Intermediate Government Bond Fund, Intermediate Term Bond Fund, or Short Term Bond Fund. Class B shares are not offered by Inflation Protected Securities Fund. | |
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, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements. | |
On February 23, 2006, the funds’ board of directors approved a change in the funds’ fiscal year-end from September 30 to June 30, effective with the nine-month period ending June 30, 2006 (the “fiscal period”). |
2 > | Summary of Significant Accounting Policies |
The significant accounting policies followed by the funds are as follows: | |
SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask price will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. 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. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. Price movements in futures contracts and ADRs (American Depositary Receipts), and various other indices, may be reviewed in the course of making a good faith determination of a security’s fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2006, Core Bond |
76 First American Funds Annual Report 2006
Table of Contents
Fund, High Income Bond Fund, and Short Term Bond Fund held fair value securities with a value of $438, $0, and $0, respectively, or 0.0%, 0.0% and 0.0% of total net assets, respectively. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Foreign securities are valued at the closing prices on the principal exchanges on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund on the valuation date. | |
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 fair value and the underlying cost of the security on the transaction date. Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash. | |
DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid monthly and 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. | |
Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred wash sale and straddle losses, paydowns on pass through obligations, expiration of capital loss carryforwards and tax mark to market adjustments under Section 311(e) of the Taxpayer Relief Act of 1997. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise. | |
On the Statement of Assets and Liabilities, the following reclassifications were made: |
Accumulated | Undistributed | |||||
Net Realized | Net Investment | Portfolio | ||||
Fund | Gain (Loss) | Income | Capital | |||
Core Bond Fund | $(2,373) | $2,357 | $16 | |||
High Income Bond Fund | 54 | (54) | — | |||
Inflation Protected Securities Fund | (12) | 12 | — | |||
Intermediate Government Bond Fund | — | — | — | |||
Intermediate Term Bond Fund | (464) | 464 | — | |||
Short Term Bond Fund | (176) | 781 | (605) | |||
Total Return Bond Fund | 8,693 | 106 | (8,799) | |||
U.S. Government Mortgage Fund | (387) | 387 | — | |||
The tax character of distributions made during the period from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal period ended June 30, 2006 and the fiscal years ended September 30, 2005 and 2004, were as follows: |
2006 | ||||||||
Ordinary | Long Term | Return of | ||||||
Fund | Income | Gain | Capital | Total | ||||
Core Bond Fund | $72,227 | $— | $— | $72,227 | ||||
High Income Bond Fund | 13,528 | — | — | 13,528 | ||||
Inflation Protected Securities Fund | 13,028 | — | — | 13,028 | ||||
Intermediate Government Bond Fund | 1,834 | 186 | — | 2,020 | ||||
Intermediate Term Bond Fund | 35,774 | — | — | 35,774 | ||||
Short Term Bond Fund | 17,945 | — | — | 17,945 | ||||
Total Return Bond Fund | 11,516 | — | — | 11,516 | ||||
U.S. Government Mortgage Fund | 6,545 | — | — | 6,545 | ||||
2005 | ||||||||
Ordinary | Long Term | Return of | ||||||
Fund | Income | Gain | Capital | Total | ||||
Core Bond Fund | $75,437 | $1,274 | $— | $76,711 | ||||
High Income Bond Fund | 19,672 | — | 20 | 19,692 | ||||
Inflation Protected Securities Fund | 7,327 | — | — | 7,327 | ||||
Intermediate Government Bond Fund | 3,179 | 4,927 | — | 8,106 | ||||
Intermediate Term Bond Fund | 42,052 | 11,785 | — | 53,837 | ||||
Short Term Bond Fund | 26,815 | — | 371 | 27,186 | ||||
Total Return Bond Fund | 12,462 | — | — | 12,462 | ||||
U.S. Government Mortgage Fund | 9,337 | — | — | 9,337 | ||||
2004 | ||||||||
Ordinary | Long Term | Return of | ||||||
Fund | Income | Gain | Capital | Total | ||||
Core Bond Fund | $79,871 | $32,065 | $— | $111,936 | ||||
High Income Bond Fund | 20,894 | — | — | 20,894 | ||||
Intermediate Government Bond Fund | 7,590 | 27,610 | — | 35,200 | ||||
Intermediate Term Bond Fund | 43,278 | 14,419 | — | 57,697 | ||||
Short Term Bond Fund | 25,252 | — | — | 25,252 | ||||
Total Return Bond Fund | 13,105 | — | 19 | 13,124 | ||||
U.S. Government Mortgage Fund | 11,561 | — | — | 11,561 | ||||
First American Funds Annual Report 2006 77
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Notes to Financial Statements continued
As of June 30, 2006, the components of accumulated earnings (deficit) on a tax basis were: |
Accumulated | ||||||||||||
Undistributed | Capital and | Other | Total | |||||||||
Ordinary | Post-October | Unrealized | Accumulated | Accumulated | ||||||||
Fund | Income | Losses | Depreciation | Gains (Losses) | Deficit | |||||||
Core Bond Fund | $1,898 | $(24,544) | $(61,629) | $(11) | $(84,286) | |||||||
High Income Bond Fund | 172 | (6,600) | (5,460) | (1) | (11,889) | |||||||
Inflation Protected Securities Fund | 1,368 | (2,416) | (16,404) | (66) | (17,518) | |||||||
Intermediate Government Bond Fund | 34 | (1,541) | (1,360) | — | (2,867) | |||||||
Intermediate Term Bond Fund | 973 | (16,237) | (27,915) | (15) | (43,194) | |||||||
Short Term Bond Fund | 256 | (15,295) | (12,685) | (194) | (27,918) | |||||||
Total Return Bond Fund | 597 | (14,563) | (11,117) | (6) | (25,089) | |||||||
U.S. Government Mortgage Fund | 22 | (6,367) | (6,435) | — | (12,780) | |||||||
The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and straddles, tax mark to market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark to market adjustments made under Section 311(e) of the Taxpayer Relief Act of 1997. | |
As of June 30, 2006, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows: |
Expiration Year | ||||||||||||||||||
Fund | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total | |||||||||
Core Bond Fund | $— | $— | $— | $— | $— | $— | $— | $3,584 | $3,584 | |||||||||
High Income Bond Fund | — | — | — | — | 6,600 | — | — | — | 6,600 | |||||||||
Inflation Protected Securities Fund | — | — | — | — | — | — | — | 256 | 256 | |||||||||
Intermediate Government Bond Fund | — | — | — | — | — | — | — | 134 | 134 | |||||||||
Intermediate Term Bond Fund | — | — | — | — | — | — | — | 6,285 | 6,285 | |||||||||
Short Term Bond Fund | 135 | 642 | — | — | 4 | — | 2,223 | 8,101 | 11,105 | |||||||||
Total Return Bond Fund | 7,439 | — | — | — | 3,708 | — | — | 472 | 11,619 | |||||||||
U.S. Government Mortgage Fund | — | — | — | — | — | 3,145 | 1,293 | 555 | 4,993 | |||||||||
In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryforwards is limited on an annual basis for Total Return Bond Fund to $7,439 for the current tax year. For the year ended June 30, 2006, Short-Term Bond Fund and Total Return Bond Fund, had capital loss carryforwards of $604 and $8,799, respectively, that expired unused. | |
Certain funds incurred a loss for tax purposes for the period from November 1, 2005 to June 30, 2006. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2007. The following funds had deferred losses: |
Fund | Amount | |
Core Bond Fund | $20,960 | |
Inflation Protected Securities Fund | 2,160 | |
Intermediate Government Bond Fund | 1,407 | |
Intermediate Term Bond Fund | 9,952 | |
Short Term Bond Fund | 4,190 | |
Total Return Bond Fund | 2,944 | |
U.S. Government Mortgage Fund | 1,373 | |
FUTURES TRANSACTIONS – In order to 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. | |
As of June 30, 2006 the following funds had outstanding futures contracts: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund and U.S. Government Mortgage Fund. |
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OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance their yield. 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 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 that is purchased upon exercise of the option. As of June 30, 2006, the funds did not hold any written options. | |
Purchased options are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If a purchased option expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized, to the extent that the proceeds from the sale are greater or less than the cost of the option. If a 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 call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid. | |
INFLATION-INDEXED BONDS – The funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. | |
FOREIGN CURRENCY TRANSLATION – The books and records of the Inflation Protected Securities Fund and the Total Return Bond Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following basis: |
• | market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and | |
• | purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The funds do not isolate the portion of gains and losses on investments in debt securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of debt securities. The funds do isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations pursuant to the federal income tax regulations. Such amounts are categorized as foreign currency gain(loss) for both financial reporting and income tax reporting purposes. | |
The funds report certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. | |
For the fiscal period ended June 30, 2006, the Inflation Protected Securities Fund and Total Return Bond Fund did not have any non-U.S. dollar denominated investments. | |
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 date. Such securities do not earn interest, are subject to market fluctuation, 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 each fund’s purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2006, the following funds had outstanding when-issued commitments: |
Segregated | ||||||||
Fund | Cost | Assets | ||||||
Core Bond Fund | $ | 95,795 | $ | 610,605 | ||||
Total Return Bond Fund | 16,064 | 190,562 | ||||||
U.S. Government Mortgage Fund | 47,445 | 124,695 | ||||||
In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to “rollover” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of June 30, 2006, the funds had no outstanding dollar roll transactions. | |
ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business |
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Notes to Financial Statements continued
within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a funds’ investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At June 30, 2006, Core Bond Fund, High Income Bond Fund, and Short Term Bond Fund had investments in illiquid securities with a total value of $438, $11, and $0, respectively, or 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: |
Core Bond Fund | ||||||
Security | Par | Dates Acquired | Cost Basis | |||
Duty Free International | $2,191 | 1/99-7/99 | $2,187 | |||
Shares/ | ||||||
High Income Bond Fund Security | Par (000) | Dates Acquired | Cost Basis | |||
Glenoit | $100 | 3/97-8/97 | $100 | |||
Green Tree Financial | 11 | 5/99 | 11 | |||
Mid America Waste Systems | 250 | 3/03 | — | |||
Pegasus Communications, Fractional Shares | 15,109 | 10/97 | — | |||
Sullivan Broadcast Holdings, Escrow Shares | 400 | 3/03 | — | |||
Short Term Bond Fund Security | Par | Dates Acquired | Cost Basis | |||
Auto Bond Receivables Trust | $106 | 11/98-11/00 | $106 | |||
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 maintain collateral 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. The collateral is then marked-to- market daily until the securities are returned. 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. Cash collateral is invested in short-term, high quality U.S. dollar-denominated securities that would be eligible for investment by a money market fund under Investment Company Act Rule 2a-7. As of June 30, 2006, cash collateral was invested as follows: |
Other | ||||||||||||||||||||
Commercial | Corporate | Repurchase | Short-Term | |||||||||||||||||
Fund | Paper | Obligations | Agreements | Securities | Total | |||||||||||||||
Core Bond Fund | $ | 272,275 | $ | 252,208 | $ | 278,376 | $ | 15,093 | $ | 817,952 | ||||||||||
High Income Bond Fund | 15,553 | 14,407 | 15,901 | 862 | 46,723 | |||||||||||||||
Inflation Protected Securities Fund | 52,545 | 48,673 | 53,723 | 2,912 | 157,853 | |||||||||||||||
Intermediate Term Bond Fund | 113,441 | 105,080 | 115,983 | 6,289 | 340,793 | |||||||||||||||
Short Term Bond Fund | 59,922 | 55,505 | 61,264 | 3,322 | 180,013 | |||||||||||||||
Total Return Bond Fund | 42,748 | 39,598 | 43,706 | 2,370 | 128,422 | |||||||||||||||
U.S. Government Mortgage Fund | 21,810 | 20,203 | 22,299 | 1,209 | 65,521 | |||||||||||||||
FAF Advisors, Inc. (“FAF Advisors”), formerly known as U.S. Bancorp Asset Management, Inc., serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. FAF Advisors 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”). Effective January 1, 2006, FAF Advisors receives fees equal to 32% of each fund’s income from securities lending transactions. Prior to January 1, 2006, such fees were 35% of each fund’s income from security lending transactions. Fees paid to FAF Advisors by the funds for the fiscal period ended June 30, 2006 were as follows: |
Fund | Amount | |||
Core Bond Fund | $460 | |||
High Income Bond Fund | 33 | |||
Inflation Protected Securities Fund | 60 | |||
Intermediate Term Bond Fund | 293 | |||
Short Term Bond Fund | 59 | |||
Total Return Bond Fund | 64 | |||
U.S. Government Mortgage Fund | 13 | |||
Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to FAF Advisors. |
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SWAP AGREEMENTS – The funds may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The funds may enter into interest rate and credit default swap agreements to manage exposure to interest rates and credit risk. | |
Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (i.e., an exchange of floating rate payments for fixed rate payments), with respect to the notional amount of principal. As of June 30, 2006, the following funds had outstanding interest rate swap agreements: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Bond Fund. | |
In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a specified issuer on its obligation (typically corporate issues or sovereign issues of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the fund owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As of June 30, 2006, the following funds had outstanding credit default swap agreements: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Bond Fund, Intermediate Term Bond Fund, and Total Return Bond Fund. | |
Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statement of Operations. Net periodic payments received by the fund are included as part of miscellaneous income on the Statement of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates. | |
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 relative net assets of all funds within the First American Family of Funds. 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 June 30, 2006. | |
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 the Directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan. | |
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported 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: |
Fund | ||||
Core Bond Fund | 0.50 | % | ||
High Income Bond Fund | 0.70 | |||
Inflation Protected Securities Fund | 0.50 | |||
Intermediate Government Bond Fund | 0.50 | |||
Intermediate Term Bond Fund | 0.50 | |||
Short Term Bond Fund | 0.50 | |||
Total Return Bond Fund | 0.60 | |||
U.S. Government Mortgage Fund | 0.50 | |||
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Notes to Financial Statements continued
FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts: |
Share Class | ||||||||||||||||||||||
Fund | A | B | C | R | Y | |||||||||||||||||
Core Bond Fund | 0.95 | % | 1.70 | % | 1.70 | % | 1.20 | % | 0.70 | % | ||||||||||||
High Income Bond Fund | 1.10 | 1.85 | 1.85 | 1.35 | 0.85 | |||||||||||||||||
Inflation Protected Securities Fund | 0.85 | NA | 1.60 | 1.10 | 0.60 | |||||||||||||||||
Intermediate Government Bond Fund | 0.75 | NA | NA | NA | 0.60 | |||||||||||||||||
Intermediate Term Bond Fund* | 0.85 | NA | NA | NA | 0.70 | |||||||||||||||||
Short Term Bond Fund | 0.75 | NA | NA | NA | 0.60 | |||||||||||||||||
Total Return Bond Fund | 1.00 | 1.75 | 1.75 | 1.25 | 0.75 | |||||||||||||||||
U.S. Government Mortgage Fund | 0.95 | 1.70 | 1.70 | 1.20 | 0.70 | |||||||||||||||||
NA = Not Applicable |
* | Effective July 1, 2006. Prior to July 1, 2006, total operating expenses for Intermediate Term Bond Fund were capped at 0.75% and 0.60% for Class A and Y, respectively. |
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. For financial statement purposes, these reimbursements are recorded as investment income. | |
ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight and administrative services and accounting services. The funds pay FAF Advisors administration fees which are calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% 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. | |
Prior to July 1, 2006, as part of the transfer agent fee, FAIF paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets, to compensate USBFS for providing certain shareholder services and reimbursed USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. Effective July 1, 2006, this fee was incorporated into the administration fee which, as a result, on an annual basis, is 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion. | |
For the fiscal period ended June 30, 2006, administration fees paid to FAF Advisors by the funds included in this annual report were as follows: |
Fund | Amount | |||
Core Bond Fund | $ | 1,773 | ||
High Income Bond Fund | 245 | |||
Inflation Protected Securities Fund | 286 | |||
Intermediate Government Bond Fund | 54 | |||
Intermediate Term Bond Fund | 966 | |||
Short Term Bond Fund | 597 | |||
Total Return Bond Fund | 340 | |||
U.S. Government Mortgage Fund | 173 | |||
TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. For the period from July 1, 2005 to July 1, 2006, FAIF paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees were allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, FAIF also paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services. Prior to July 1, 2005, this 0.10% fee was included in the administration fee. | |
Effective July 1, 2006, FAIF will be charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees will be charged to each fund based on the number of accounts within that |
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fund. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial institutions was incorporated into the administration fee. The $18,500 per share class fee that was charged in addition to per account fees has been eliminated. Funds will continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services. | |
For the fiscal period ended June 30, 2006, transfer agent fees paid to USBFS by the funds included in this annual report were as follows: |
Fund | Amount | |||
Core Bond Fund | $ | 1,905 | ||
High Income Bond Fund | 263 | |||
Inflation Protected Securities Fund | 307 | |||
Intermediate Government Bond Fund | 58 | |||
Intermediate Term Bond Fund | 1,038 | |||
Short Term Bond Fund | 641 | |||
Total Return Bond Fund | 365 | |||
U.S. Government Mortgage Fund | 186 | |||
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. Prior to July 1, 2005, the fee for each fund was annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly. | |
Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred which will increase the fund’s custodian expenses. | |
For the fiscal period ended June 30, 2006, custodian fees were increased as a result of overdrafts, and decreased as a result of interest earned as follows: |
Fund | Increased | Decreased | ||||||
Core Bond Fund | $ | — | $ | 55 | ||||
High Income Bond Fund | 2 | 2 | ||||||
Inflation Protected Securities Fund | 2 | 1 | ||||||
Intermediate Government Bond Fund | — | * | 2 | |||||
Intermediate Term Bond Fund | — | 47 | ||||||
Short Term Bond Fund | — | * | 14 | |||||
Total Return Bond Fund | 7 | 7 | ||||||
U.S. Government Mortgage Fund | 1 | 1 | ||||||
* | Rounds to zero. |
DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each fund’s average daily net assets of the Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, or shareholder servicing activities. | |
Quasar is currently waiving fees equal to an annual rate of 0.10% of average daily net assets for Class A shares of the Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund. | |
For the fiscal period ended June 30, 2006, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows: |
Fund | Amount | |||
Intermediate Government Bond Fund | $ | 1 | ||
Intermediate Term Bond Fund | 32 | |||
Short Term Bond Fund | 66 | |||
FAIF has also adopted and entered into a shareholder servicing plan and agreement with FAF Advisors with respect to the Class R shares. Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund pay FAF Advisors a monthly shareholder servicing fee equal to an annual rate of 0.15% of each fund’s average daily net assets of the Class R shares. FAF Advisors is currently waiving all fees under this plan and agreement. This waiver may be discontinued at any time. | |
Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended June 30, 2006: |
Fund | Amount | |||
Core Bond Fund | $ | 240 | ||
High Income Bond Fund | 45 | |||
Inflation Protected Securities Fund | 16 | |||
Intermediate Government Bond Fund | 2 | |||
Intermediate Term Bond Fund | 34 | |||
Short Term Bond Fund | 60 | |||
Total Return Bond Fund | 39 | |||
U.S. Government Mortgage Fund | 57 | |||
OTHER EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended June 30, 2006, legal fees and expenses of $35 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 |
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Notes to Financial Statements continued
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. |
Contingent Deferred Sales Charge | ||||||
as a Percentage of Dollar | ||||||
Year Since Purchase | Amount Subject to Charge | |||||
First | 5.00% | |||||
Second | 5.00 | |||||
Third | 4.00 | |||||
Fourth | 3.00 | |||||
Fifth | 2.00 | |||||
Sixth | 1.00 | |||||
Seventh | 0.00 | |||||
Eighth | 0.00 | |||||
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 period ended June 30, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows: |
Fund | Amount | |||
Core Bond Fund | $ | 78 | ||
High Income Bond Fund | 60 | |||
Inflation Protected Securities Fund | 9 | |||
Intermediate Government Bond Fund | — | |||
Intermediate Term Bond Fund | 7 | |||
Short Term Bond Fund | 10 | |||
Total Return Bond Fund | 25 | |||
U.S. Government Mortgage Fund | 53 | |||
4 > | Capital Share Transactions |
FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows: |
Core | High Income | Inflation Protected | |||||||||||||||||||||||||||||||||||
Bond Fund | Bond Fund | Securities Fund | |||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | |||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | ||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | ||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||||||||
Shares issued | 1,251 | 2,069 | 5,711 | 777 | 702 | 1,128 | 89 | 759 | |||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 366 | 456 | 642 | 131 | 210 | 252 | 21 | 10 | |||||||||||||||||||||||||||||
Shares redeemed | (3,497 | ) | (4,450 | ) | (6,534 | ) | (1,329 | ) | (1,924 | ) | (1,343 | ) | (265 | ) | (86 | ) | |||||||||||||||||||||
Total Class A transactions | (1,880 | ) | (1,925 | ) | (181 | ) | (421 | ) | (1,012 | ) | 37 | (155 | ) | 683 | |||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||||||||
Shares issued | 36 | 90 | 175 | 52 | 80 | 251 | — | — | |||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 41 | 46 | 85 | 19 | 32 | 39 | — | — | |||||||||||||||||||||||||||||
Shares redeemed | (320 | ) | (474 | ) | (825 | ) | (186 | ) | (250 | ) | (368 | ) | — | — | |||||||||||||||||||||||
Total Class B transactions | (243 | ) | (338 | ) | (565 | ) | (115 | ) | (138 | ) | (78 | ) | — | — | |||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||||||||
Shares issued | 46 | 79 | 119 | 67 | 55 | 222 | 16 | 87 | |||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 17 | 21 | 43 | 49 | 87 | 119 | 3 | 2 | |||||||||||||||||||||||||||||
Shares redeemed | (231 | ) | (259 | ) | (514 | ) | (470 | ) | (555 | ) | (662 | ) | (46 | ) | (4 | ) | |||||||||||||||||||||
Total Class C transactions | (168 | ) | (159 | ) | (352 | ) | (354 | ) | (413 | ) | (321 | ) | (27 | ) | 85 | ||||||||||||||||||||||
Class R: | |||||||||||||||||||||||||||||||||||||
Shares issued | 2 | 1 | 559 | 8 | 4 | 33 | — | — | |||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 117 | — | — | 2 | — | — | |||||||||||||||||||||||||||||
Shares redeemed | — | — | (4,070 | ) | — | (5 | ) | (119 | ) | — | — | ||||||||||||||||||||||||||
Total Class R transactions | 2 | 1 | (3,394 | ) | 8 | (1 | ) | (84 | ) | — | — | ||||||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||||||||
Shares issued | 33,967 | 35,837 | 34,846 | 5,066 | 7,861 | 10,084 | 10,606 | 29,019 | |||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 2,008 | 1,987 | 3,549 | 155 | 209 | 251 | 362 | 207 | |||||||||||||||||||||||||||||
Shares redeemed | (33,812 | ) | (37,508 | ) | (53,065 | ) | (5,008 | ) | (10,853 | ) | (5,149 | ) | (4,262 | ) | (2,631 | ) | |||||||||||||||||||||
Total Class Y transactions | 2,163 | 316 | (14,670 | ) | 213 | (2,783 | ) | 5,186 | 6,706 | 26,595 | |||||||||||||||||||||||||||
Net increase (decrease) in capital shares | (126 | ) | (2,105 | ) | (19,162 | ) | (669 | ) | (4,347 | ) | 4,740 | 6,524 | 27,363 | ||||||||||||||||||||||||
84 First American Funds Annual Report 2006
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Intermediate Government | Intermediate Term | Short Term | |||||||||||||||||||||||||||||||||||||||
Bond Fund | Bond Fund | Bond Fund | |||||||||||||||||||||||||||||||||||||||
Fiscal | Fiscal | Fiscal | |||||||||||||||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | Period | Year | Year | |||||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||||||||||||
Shares issued | 38 | 154 | 88 | 526 | 856 | 2,566 | 209 | 632 | 2,907 | ||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 5 | 16 | 25 | 132 | 202 | 195 | 194 | 251 | 252 | ||||||||||||||||||||||||||||||||
Shares redeemed | (71 | ) | (143 | ) | (151 | ) | (1,549 | ) | (2,379 | ) | (4,118 | ) | (2,246 | ) | (3,940 | ) | (5,787 | ) | |||||||||||||||||||||||
Total Class A transactions | (28 | ) | 27 | (38 | ) | (891 | ) | (1,321 | ) | (1,357 | ) | (1,843 | ) | (3,057 | ) | (2,628 | ) | ||||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Shares redeemed | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total Class B transactions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Shares redeemed | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total Class C transactions | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Class R: | |||||||||||||||||||||||||||||||||||||||||
Shares issued | — | — | — | — | — | 430 | — | — | 186 | ||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | — | — | — | 31 | — | — | 9 | ||||||||||||||||||||||||||||||||
Shares redeemed | — | — | — | — | — | (1,635 | ) | — | — | (1,045 | ) | ||||||||||||||||||||||||||||||
Total Class R transactions | — | — | — | — | — | (1,174 | ) | — | — | (850 | ) | ||||||||||||||||||||||||||||||
Class Y: | |||||||||||||||||||||||||||||||||||||||||
Shares issued | 873 | 1,733 | 2,458 | 14,632 | 24,296 | 37,708 | 7,298 | 14,851 | 45,435 | ||||||||||||||||||||||||||||||||
Shares issued in lieu of cash distributions | 82 | 514 | 3,028 | 1,336 | 2,038 | 2,280 | 572 | 791 | 709 | ||||||||||||||||||||||||||||||||
Shares redeemed | (4,004 | ) | (8,559 | ) | (24,241 | ) | (30,661 | ) | (37,799 | ) | (44,985 | ) | (24,595 | ) | (45,948 | ) | (33,963 | ) | |||||||||||||||||||||||
Total Class Y transactions | (3,049 | ) | (6,312 | ) | (18,755 | ) | (14,693 | ) | (11,465 | ) | (4,997 | ) | (16,725 | ) | (30,306 | ) | 12,181 | ||||||||||||||||||||||||
Net increase (decrease) in capital shares | (3,077 | ) | (6,285 | ) | (18,793 | ) | (15,584 | ) | (12,786 | ) | (7,528 | ) | (18,568 | ) | (33,363 | ) | 8,703 | ||||||||||||||||||||||||
Total Return | U.S. Government | |||||||||||||||||||||||||||
Bond Fund | Mortgage Fund | |||||||||||||||||||||||||||
Fiscal | Fiscal | |||||||||||||||||||||||||||
Period | Year | Year | Period | Year | Year | |||||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||||
6/30/06 | 9/30/05 | 9/30/04 | 6/30/06 | 9/30/05 | 9/30/04 | |||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||
Shares issued | 217 | 243 | 1,206 | 123 | 496 | 1,742 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 43 | 67 | 61 | 58 | 103 | 97 | ||||||||||||||||||||||
Shares redeemed | (563 | ) | (484 | ) | (536 | ) | (932 | ) | (1,331 | ) | (1,045 | ) | ||||||||||||||||
Total Class A transactions | (303 | ) | (174 | ) | 731 | (751 | ) | (732 | ) | 794 | ||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||
Shares issued | 10 | 24 | 68 | 31 | 69 | 119 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 8 | 12 | 27 | 18 | 26 | 29 | ||||||||||||||||||||||
Shares redeemed | (79 | ) | (138 | ) | (890 | ) | (155 | ) | (196 | ) | (341 | ) | ||||||||||||||||
Total Class B transactions | (61 | ) | (102 | ) | (795 | ) | (106 | ) | (101 | ) | (193 | ) | ||||||||||||||||
Class C: | ||||||||||||||||||||||||||||
Shares issued | 12 | 9 | 32 | 6 | 29 | 104 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 6 | 10 | 17 | 15 | 27 | 47 | ||||||||||||||||||||||
Shares redeemed | (46 | ) | (108 | ) | (242 | ) | (144 | ) | (413 | ) | (900 | ) | ||||||||||||||||
Total Class C transactions | (28 | ) | (89 | ) | (193 | ) | (123 | ) | (357 | ) | (749 | ) | ||||||||||||||||
Class R: | ||||||||||||||||||||||||||||
Shares issued | 1 | — | 9 | 1 | — | 140 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | — | — | 5 | — | — | 33 | ||||||||||||||||||||||
Shares redeemed | — | — | (275 | ) | — | — | (1,768 | ) | ||||||||||||||||||||
Total Class R transactions | 1 | — | (261 | ) | 1 | — | (1,595 | ) | ||||||||||||||||||||
Class Y: | ||||||||||||||||||||||||||||
Shares issued | 21,351 | 9,193 | 5,441 | 1,917 | 3,291 | 4,048 | ||||||||||||||||||||||
Shares issued in lieu of cash distributions | 171 | 159 | 160 | 85 | 91 | 101 | ||||||||||||||||||||||
Shares redeemed | (10,524 | ) | (5,666 | ) | (5,916 | ) | (3,248 | ) | (4,309 | ) | (7,894 | ) | ||||||||||||||||
Total Class Y transactions | 10,998 | 3,686 | (315 | ) | (1,246 | ) | (927 | ) | (3,745 | ) | ||||||||||||||||||
Net increase (decrease) in capital shares | 10,607 | 3,321 | (833 | ) | (2,225 | ) | (2,117 | ) | (5,488 | ) | ||||||||||||||||||
First American Funds Annual Report 2006 85
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Notes to Financial Statements continued
Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal period ended June 30, 2006, the fiscal years ended September 30, 2005 and September 30, 2004, were as follows: |
Fiscal Period | Year Ended | Year Ended | ||||||||||
Fund | Ended 6/30/06 | 9/30/05 | 9/30/04 | |||||||||
Core Bond Fund | 88 | 134 | 120 | |||||||||
High Income Bond Fund | 14 | 16 | 24 | |||||||||
Total Return Bond Fund | 35 | 52 | 579 | |||||||||
U.S. Government Mortgage Fund | 23 | 42 | 52 | |||||||||
5 > | Investment Security Transactions |
During the fiscal period ended June 30, 2006, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows: |
U.S. Government Securities | Other Investment Securities | |||||||||||||||
Fund | Purchases | Sales | Purchases | Sales | ||||||||||||
Core Bond Fund | $ | 2,136,257 | $ | 2,179,223 | $ | 656,851 | $ | 386,522 | ||||||||
High Income Bond Fund | 376 | 315 | 170,812 | 177,500 | ||||||||||||
Inflation Protected Securities Fund | 281,130 | 231,399 | 33,724 | 22,031 | ||||||||||||
Intermediate Government Bond Fund | 39,170 | 63,155 | — | — | ||||||||||||
Intermediate Term Bond Fund | 733,930 | 928,664 | 403,813 | 288,932 | ||||||||||||
Short Term Bond Fund | 239,263 | 231,619 | 130,899 | 219,289 | ||||||||||||
Total Return Bond Fund | 497,726 | 467,570 | 233,330 | 115,976 | ||||||||||||
U.S. Government Mortgage Fund | 458,796 | 436,118 | 22,767 | 20,711 | ||||||||||||
The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at June 30, 2006, were as follows: |
Federal | ||||||||||||||||
Aggregate | Aggregate | Income | ||||||||||||||
Gross | Gross | Tax | ||||||||||||||
Fund | Appreciation | Depreciation | Net | Cost | ||||||||||||
Core Bond Fund | $ | 818 | $ | (61,592 | ) | $ | (60,774 | ) | $ | 2,795,268 | ||||||
High Income Bond Fund | 2,482 | (7,942 | ) | (5,460 | ) | 296,150 | ||||||||||
Inflation Protected Securities Fund | 600 | (16,553 | ) | (15,953 | ) | 495,251 | ||||||||||
Intermediate Government Bond Fund | 67 | (1,427 | ) | (1,360 | ) | 45,824 | ||||||||||
Intermediate Term Bond Fund | 1,760 | (28,858 | ) | (27,098 | ) | 1,298,435 | ||||||||||
Short Term Bond Fund | 436 | (10,824 | ) | (10,388 | ) | 722,053 | ||||||||||
Total Return Bond Fund | 1,167 | (11,679 | ) | (10,512 | ) | 552,643 | ||||||||||
U.S. Government Mortgage Fund | 174 | (6,529 | ) | (6,355 | ) | 287,477 | ||||||||||
6 > | Options Written |
Transactions in written options for the fiscal period ended June 30, 2006 were as follows: |
Put Options Written | Call Options Written | |||||||||||||||
Number of | Premium | Number of | Premium | |||||||||||||
Total Return Bond Fund | Contracts | Amount | Contracts | Amount | ||||||||||||
Balance at September 30, 2005 | — | $ | — | — | $ | — | ||||||||||
Opened | 300 | 8 | — | — | ||||||||||||
Expired | (300 | ) | (8 | ) | — | — | ||||||||||
Closed | — | — | — | — | ||||||||||||
Balance at June 30, 2006 | — | — | — | — | ||||||||||||
7 > | Concentration of Risks |
High Income Bond Fund, Inflation Protected Securities Fund, and Total Return Bond Fund invest in lower-rated (i.e., rated Ba or lower by Moody’s or BB or lower by Standard & Poor’s or Fitch) corporate and foreign debt obligations, which are commonly referred to as “junk bonds.” Lower-rated securities will usually offer higher yields than higher-rated securities. However, there is more risk associated with these investments. These lower-rated bonds may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. Lower-rated securities tend to have more price volatility and carry more risk to principal than higher-rated securities. |
8 > | 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. |
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9 > | New Accounting Pronouncement |
In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FAS109, Accounting for Income Taxes (FIN 48), to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. At this time, FAF Advisors is evaluating the implications of FIN 48, and its impact in the funds’ financial statements which has not yet been determined. |
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NOTICE TO SHAREHOLDERS June 30, 2006 (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 2007 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information. | |
For the fiscal period ended June 30, 2006, 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) (a) | (Tax Basis) (a) | (Tax Basis) (b) | |||||||||
Core Bond Fund | — | % | 100.0 | % | 100.0 | % | ||||||
High Income Bond Fund | — | 100.0 | 100.0 | |||||||||
Inflation Protected Securities Fund | — | 100.0 | 100.0 | |||||||||
Intermediate Government Bond Fund | 9.2 | 90.8 | 100.0 | |||||||||
Intermediate Term Bond Fund | — | 100.0 | 100.0 | |||||||||
Short Term Bond Fund | — | 100.0 | 100.0 | |||||||||
Total Return Bond Fund | — | 100.0 | 100.0 | |||||||||
U.S. Government Mortgage Fund | — | 100.0 | 100.0 | |||||||||
(a) | Based on a percentage of the fund’s total distributions. |
(b) | None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income. |
Shareholder Notification of Federal Tax Status:
The First American High Income Bond Fund designates 1.70% of the dividends declared during the fiscal period ended June 30, 2006 as dividends qualifying for the dividends received deduction available to corporate shareholders. | |
In addition the First American High Income Bond Fund designates 1.79% of the dividends declared from net investment income during the fiscal period ended June 30, 2006, as qualified income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003. |
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 | ||||
Core Bond Fund | 94.5 | % | ||
High Income Bond Fund | 88.4 | |||
Inflation Protected Securities Fund | 100.0 | |||
Intermediate Government Bond Fund | 100.0 | |||
Intermediate Term Bond Fund | 98.9 | |||
Short Term Bond Fund | 100.0 | |||
Total Return Bond Fund | 93.7 | |||
U.S. Government Mortgage Fund | 100.0 | |||
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 were as follows: |
Fund | ||||
Core Bond Fund | — | % | ||
High Income Bond Fund | — | |||
Inflation Protected Securities Fund | — | |||
Intermediate Government Bond Fund | 11.0 | |||
Intermediate Term Bond Fund | — | |||
Short Term Bond Fund | — | |||
Total Return Bond Fund | — | |||
U.S. Government Mortgage Fund | — | |||
88 First American Funds Annual Report 2006
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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 during the most recent 12 month period ended June 30 is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. |
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 (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at http://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 1-800-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 days of the quarter end. |
APPROVAL OF 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 1-3, 2006, 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 their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement through June 30, 2007. | |
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 the Fund, (2) the investment performance of the Fund, (3) the profitability of FAF Advisors related to the Fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Fund grows 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. | |
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 each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the 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. |
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NOTICE TO SHAREHOLDERS continued
The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer. | |
Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, 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, including how the Fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the Fund performed versus its benchmark index. The Board also considered that, in reviewing the comparative performance of income funds, the different expense levels of a Fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest expense ratios, offered the most meaningful data on performance. For this reason, the discussion below relates to the performance of Class Y shares. The performance periods considered by the Board ended on January 31, 2006. | |
Core Bond Fund. The Board considered that the Fund outperformed or performed competitively versus its performance universe for the one-, three-, five- and ten-year periods. Though the Fund underperformed its benchmark for those periods, the Board noted that the Fund’s performance had improved since a new, team-based sector specialist management model was implemented by FAF Advisors in early 2003. The Board concluded that, in light of the change to the fixed-income model implemented in 2003 and the Fund’s competitive performance versus its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
High Income Bond Fund. The Board considered that the Fund outperformed its performance universe for the one- and three-year periods. In addition, for the one-year period, the Fund outperformed its benchmark index, though the Fund underperformed the benchmark for the three-year period. The Board concluded that, in light of the Fund’s strong performance compared to that of its performance universe and the recent strong performance vis-à-vis its benchmark index, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Inflation Protected Securities Fund. The Board considered that the Fund outperformed its performance universe for the one-year period (the Fund’s only full year of operation), though it underperformed its benchmark for that period. The Board concluded that, in light of the Fund’s outperformance of the performance universe and its short operating history, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Intermediate Government Bond Fund. The Board considered that the Fund outperformed its benchmark index and performance universe for the one-year period. The Fund underperformed its benchmark index and performance universe for the three-year period. With respect to this, however, the Board noted FAF Advisors’ assertion that the Fund has a stricter investment policy than that of its peers. As a result, the Fund can invest only in U.S. Treasury securities and certain state tax-exempt agency securities, whereas most of the Fund’s peers also can invest in mortgage-backed securities. The Board concluded that, in light of the Fund’s strong recent performance, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Intermediate Term Bond Fund. The Board considered that the Fund outperformed its performance universe for the one-, three-, five- and ten-year periods and performed competitively against the benchmark for each of those periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Short Term Bond Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe for the one-, three-, five- and ten-year periods. The Fund outperformed its benchmark index for the one-year period, although it underperformed the benchmark for the other periods. The Board concluded that, in light of long-term performance of the Fund compared to that of its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement. | |
Total Return Bond Fund. The Board considered that the Fund outperformed its performance universe for the one-, three-, and five-year periods. In addition, the Fund outperformed its benchmark index for the one- and three-year periods, though it underperformed the index for the five-year period. The Board noted that, effective May 13, 2005, the Fund changed its name from Corporate Bond Fund to Total Return Bond Fund, and changed its investment strategies and benchmark. The Board considered FAF Advisors’ assertion that, in light of that change, the one-year performance numbers are the most meaningful. The Board concluded that, in light of the Fund’s strong one-year performance, it would be in the interest of the Fund and its shareholders to renew the Agreement. |
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U.S. Government Mortgage Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe for the one-, three-, five- and ten-year periods. The Fund underperformed its benchmark for each of those periods. The Board considered FAF Advisors’ assertion that, given the risk-reward profile of the types of assets in which the Fund invests, the Fund is not likely to outperform the benchmark on a net-of-expenses basis. In light of this and of the Fund’s competitive 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. |
Costs of Services and Profits Realized by FAF Advisors
The Board reviewed FAF Advisors’ estimated costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive. | |
Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s 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 asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each Fund’s total operating expenses at a level that approximates its peer group median expense ratio. FAF Advisors noted that, in keeping with this pricing philosophy, it intended 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. Consistent with this pricing philosophy, and after discussions with the Board, FAF Advisors proposed certain changes to the expense cap of the Intermediate Term Bond Fund, as discussed in more detail below, and agreed to maintain the expenses caps of the other Funds at their current levels through at least June 30, 2007. | |
Further detail considered by the Board regarding the advisory fees and expense ratios of each Fund is set forth below: | |
Core Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
High Income Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Inflation Protected Securities Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than that of the peer group median and that the expense ratio, after waivers, was only slightly higher. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Intermediate Government Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Intermediate Term Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board also considered and approved FAF Advisors’ request to raise the level at which Fund expenses would be capped by 10 basis points. The Board noted that even with the higher expense cap, the Fund’s expense ratio would still be lower than the peer group median by approximately 5 basis points. The Board concluded that the Fund’s advisory fee and expense ratio, after taking into account the increased expense cap, are reasonable in light of the services provided. | |
Short Term Bond Fund. The Board considered that, although the Fund’s advisory fee after waivers was slightly higher than the peer group median, the Fund’s expense ratio after waivers was lower than the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. | |
Total Return Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were slightly higher than, though competitive with, those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of their competitiveness and the services provided. |
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NOTICE TO SHAREHOLDERS continued
U.S. Government Mortgage Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided. |
Economies of Scale in Providing Investment Advisory Services
The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a Fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement. |
Other Benefits to FAF Advisors
In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, sub-administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law. | |
After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best 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; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis, through April 2002. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997. | Retired; Vice President, Cargo – United Airlines from July 2001 through July 2004; Vice President, North America – Mountain Region, United Airlines, prior to July 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
Victoria J. Herget P.O. Box 1329 Minneapolis, MN 55440-1329 (1951) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003. | Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
Leonard W. Kedrowski P.O. Box 1329 Minneapolis, MN 55440-1329 (1941) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993. | Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001. | Retired; Director, President, and Chief Executive Officer, Weirton Steel through 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | Cleveland Cliffs Inc (a producer of iron ore pellets) | |||||||||
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940) | Director | Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991. | Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; Owner, Chairman and Chief Executive Officer, Excensustm, LLC, a strategic demographic planning and application development firm, since 2001. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
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NOTICE TO SHAREHOLDERS continued
Independent Directors — continued | ||||||||||||||
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. | Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003. | First American Funds Complex: twelve registered investment companies, including fifty-eight 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, since 1999. | First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios | None | |||||||||
† | Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act. |
The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.
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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 of FAF Advisors, Inc. | |||
Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)* | Vice President – Investments | Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001. | Chief Investment Officer of FAF Advisors, Inc., since September 2001. | |||
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 of 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. | Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of investment accounting and Fund Treasurer for Thrivent Financial for Lutherans. | |||
Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)* | Assistant Treasurer | Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005. | Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC. | |||
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 February 2005. | Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since February 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to February 2005; prior to that, Vice President Charles Schwab & Co., Inc. | |||
Jevad (“Jay”) Aslani FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1961)* | Anti-Money Laundering Officer | Re-elected by the Board annually: Anti-Money Laundering Officer of FAIF since June 2006. | Director of Compliance of FAF Advisors, Inc., since September 2004; prior thereto, Independent Compliance Consultant from December 2002 to August 2004; prior to that, Assistant Vice President, Assistant Secretary, and Anti-Money Laundering Officer of Artisan Funds, Assistant Secretary and Compliance Officer of Artisan Distributors, and Compliance Officer of Artisan Partners Limited Partnership. | |||
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)* | Secretary | Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998. | Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm. | |||
James D. Alt 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. | |||
Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004. | Attorney for FAF Advisors, Inc. since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans from May 2001 to August 2004; prior to that, Consultant, Principal Financial Group. | |||
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NOTICE TO SHAREHOLDERS continued
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 | |||
James R. Arnold 615 E. Michigan Street Milwaukee, WI 53202 (1957)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003. | Vice President, U.S. Bancorp Fund Services, LLC since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc. | |||
Richard J. Ertel, FAF Advisors, Inc. 800 Nicollet Mall, Minneapolis, MN 55042 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004. | Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company. | |||
Douglas G. Hess 615 E. Michigan Street Milwaukee, WI 53202 (1967)* | Assistant Secretary | Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001. | Vice President, U.S. Bancorp Fund Services, LLC. | |||
* | Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Aslani, Agnew and Ertel, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Messrs. Hess and Arnold are officers 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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Board of Directors First American Investment Funds, Inc.
Virginia Stringer | |
Chairperson of First American Investment Funds, Inc. | |
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. | |
Retired; former Vice President of Cargo-United Airlines | |
Victoria Herget | |
Director of First American Investment Funds, Inc. | |
Investment Consultant; former Managing Director of Zurich Scudder Investments | |
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. | |
Retired; former Director, President, and Chief Executive Officer of Weirton Steel | |
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. |
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![(FIRST AMERICAN FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950134-06-017502/c07044c0704600.gif)
Direct fund correspondence to:
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended June 30, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions. | |
This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing. | |
The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. |
INVESTMENT ADVISOR
FAF Advisors, Inc. | ||
800 Nicollet Mall | ||
Minneapolis, Minnesota 55402 |
ADMINISTRATOR
FAF Advisors, Inc. | ||
800 Nicollet Mall | ||
Minneapolis, Minnesota 55402 |
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC | ||
615 East Michigan Street | ||
Milwaukee, Wisconsin 53202 |
CUSTODIAN
U.S. Bank National Association | ||
60 Livingston Avenue | ||
St. Paul, Minnesota 55101 |
DISTRIBUTOR
Quasar Distributors, LLC | ||
615 East Michigan Street | ||
Milwaukee, Wisconsin 53202 |
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP | ||
220 South Sixth Street | ||
Suite 1400 | ||
Minneapolis, Minnesota 55402 |
COUNSEL
Dorsey & Whitney LLP | ||
50 South Sixth Street | ||
Suite 1500 | ||
Minneapolis, Minnesota 55402 |
First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330
P.O. Box 1330
Minneapolis, MN 55440-1330
In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.
0170-06 8/2006 AR-INCOME
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Item 2—Code of Ethics
(a) The registrant has adopted a code of ethics that applies to its Principal Executive Officer and Principal Financial Officer.
(b) 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.
(c) During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provisions of its code of ethics.
(d) 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, 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 $785,786 in the fiscal period ended June 30, 2006, $608,819 in the fiscal year ended September 30, 2005, and $391,795 in the fiscal year ended September 30, 2004, 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 $2,150 in the fiscal period ended June 30, 2006, $13,759 in the fiscal year ended September 30, 2005, and $36,134 in the fiscal year ended September 30, 2004, including fees associated with the semi-annual review of fund disclosures.
(c) Tax Fees — E&Y billed the registrant fees of $114,015 in the fiscal period ended June 30, 2006, $105,382 in the fiscal year ended September 30, 2005, and $115,034 in the fiscal year ended September 30, 2004 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 period ended June 30, 2006, the fiscal year ended September 30, 2005, and the fiscal year ended September 30, 2004.
(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 |
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• | Consider approving categories of service that are not deemed to impair independence for a one-year period |
It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the period.
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 |
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• | Sales and use tax compliance |
• | Timely RIC qualification reviews | |
• | Tax distribution analysis and planning | |
• | Tax authority examination services | |
• | Tax appeals support services | |
• | Accounting methods studies | |
• | Fund merger support services | |
• | Tax consulting services and related projects |
Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.
Other Non-audit Services
The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.
Proscribed Services
In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:
• | Management functions | |
• | Accounting and bookkeeping services | |
• | Internal audit services | |
• | Financial information systems design and implementation | |
• | Valuation services supporting the financial statements | |
• | Actuarial services supporting the financial statements | |
• | Executive recruitment | |
• | Expert services (e.g., litigation support) | |
• | Investment banking |
Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex
The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, 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.
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(e)(2) All of the services described in paragraphs (b) through (d) of this Item 4 that were provided to the registrant on or after May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services, were pre-approved by the audit committee.
(f) All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period-end were performed by the principal accountant’s full-time, permanent employees.
(g) The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $116,165 in the fiscal period ended June 30, 2006, $144,841 in the fiscal year ended September 30, 2005, and $181,918 in the fiscal year ended September 30, 2004, including services provided prior to May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services.
(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 and that were rendered on or after May 6, 2003 (the effective date of SEC rules relating to the pre-approval of non-audit services), is compatible with maintaining E&Y’s independence.
Item 5—Audit Committee of Listed Registrants
Not applicable.
Item 6—Schedule of Investments
The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8—Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10—Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this item.
Item 11—Controls and Procedures
(a) | The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s |
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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 period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting . |
Item 12—Exhibits
(a)(1) Not applicable. Registrant’s code of ethics is provided to any person upon request without charge.
(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act 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 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: September 8, 2006
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: September 8, 2006
By: | /s/ Charles D. Gariboldi, Jr. | |||
Charles D. Gariboldi, Jr. | ||||
Treasurer | ||||
Date: September 8, 2006